# EDGAR Filing Document

**Accession Number:** 0001853868
**File Stem:** 0001628280-26-025821
**Filing Date:** 2026-4
**Character Count:** 3848334
**Document Hash:** af403f909b63f266ee0c6995ac547975
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-025821.hdr.sgml**: 20260417

**ACCESSION NUMBER**: 0001628280-26-025821

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 92

**FILED AS OF DATE**: 20260417

**DATE AS OF CHANGE**: 20260417

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Fervo Energy Co
- **CENTRAL INDEX KEY:** 0001853868
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 823168838
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-295165
- **FILM NUMBER:** 26872437

**BUSINESS ADDRESS:**
- **STREET 1:** 910 LOUISIANA STREET
- **STREET 2:** SUITE 4440
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002
- **BUSINESS PHONE:** 713-965-4291

**MAIL ADDRESS:**
- **STREET 1:** 910 LOUISIANA STREET
- **STREET 2:** SUITE 4440
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002

**As filed with the U.S. Securities and Exchange Commission on April 17, 2026.** 

**Registration No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-1**

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

***Fervo Energy Company***

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **4911** | **823168838** |
| (State or other jurisdiction of incorporation or <br>organization)<br>| (Primary Standard Industrial Classification <br>Code Number)<br>| (I.R.S. Employer Identification No.) |

---

**811 Main Street, Suite 1700**

**Houston, TX 77002** 

**(832) 554-3253**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Gustavo Torres** 

**811 Main Street, Suite 1700**

**Houston, TX 77002** 

**(832) 554-3253**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

**Copies to:**

---

| | |
|:---|:---|
| **Ryan J. Maierson**<br>**Nick S. Dhesi**<br>**John J. Slater**<br>**Latham & Watkins LLP**<br>**811 Main Street, Suite 3700**<br>**Houston, Texas 77002**<br>**(713) 546-5400**<br>| **Sarah K. Morgan**<br>**Jackson A. O'Maley**<br>**Alexandra M. Lewis**<br>**Vinson & Elkins L.L.P.**<br>**845 Texas Avenue, Suite 4700**<br>**Houston, Texas 77002**<br>**(713) 758-2222**<br>|

---

**APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: AS SOON AS PRACTICABLE AFTER THIS** 

**REGISTRATION STATEMENT IS DECLARED EFFECTIVE.**

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, 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, a 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.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☒ |

---

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 of 1933 or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant** 

**to said Section 8(a), may determine.**

![picture1a.jpg](picture1a.jpg)

**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed** 

**with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities, and it is not soliciting an offer** 

**to buy these securities in any jurisdiction where the offer or sale is not permitted.**

**Subject to Completion. Dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026.**

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Shares**

![fervo-logoxprimaryxwhite002a.jpg](fervo-logoxprimaryxwhite002a.jpg)

**Fervo Energy Company**

**Class A Common Stock**

This is the initial public offering of shares of Class A common stock of Fervo Energy Company. We are offering&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock.

Prior to this offering, there has been no public market for our Class A common stock. We expect that the initial public offering price per share of our Class A

common stock will be between $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. We intend to apply to list our Class A common stock on the NASDAQ under the symbol "FRVO."

Following this offering, we will have two series of authorized common stock, Class A common stock and Class B common stock. The rights of the holders of

our Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. Each share of our Class A

common stock is entitled to one vote per share. Each share of our Class B common stock is entitled to 40 votes per share and is convertible at any time, subject to

the satisfaction of certain conditions as described herein, into one share of Class A common stock. Immediately following the completion of this offering, all

outstanding shares of Class B common stock will be beneficially owned by Tim Latimer, our Chief Executive Officer and Chair of our board of directors, and Jack

Norbeck, PhD., our Chief Technical Officer. Assuming no exercise of the underwriters' option to purchase additional shares to cover over-allotments, if any, and

assuming Mr. Latimer and Dr. Norbeck do not purchase any shares of Class A common stock pursuant to the reserved share program, Mr. Latimer and Dr. Norbeck

will beneficially own, in the aggregate, approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our outstanding capital stock and control approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the voting power of our

outstanding capital stock. As a result, Mr. Latimer and Dr. Norbeck may have significant influence over the outcome of matters submitted to our stockholders for

approval, including the election of our directors and the approval of any change of control transaction. We will be a "controlled company" within the meaning of the

corporate governance standards of the NASDAQ. Although we do not intend to utilize any exemptions from corporate governance standards upon completion of

this offering, we may utilize any or all of these exemptions at any time at our discretion until we cease to be a "controlled company." See "Management —

Controlled Company Exception" and "Principal Stockholders."

We are an "emerging growth company" and a smaller reporting company as defined under the federal securities laws, and, as such, may elect to comply with

certain reduced public company reporting requirements. See "Prospectus Summary — Implications of Being an Emerging Growth Company and Smaller Reporting

Company."

**Investing in our Class A common stock involves risks. See "<u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>" beginning on page <u>[38](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u> to read about factors you should consider before** 

**buying shares of our Class A common stock.**

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Initial public offering price .............................................................................................................................................................. | $| $|
| Underwriting discounts and commissions<sup>(1)</sup> ..................................................................................................................................... | $| $|
| Proceeds, before expenses, to us ...................................................................................................................................................... | $| $|

---

__________________

(1)See the section titled "Underwriting" for a description of the compensation payable to the underwriters.

At our request, an affiliate of BofA Securities, Inc., a participating underwriter has reserved for sale, at the initial public offering price, up to 5% of the shares

of Class A common stock to be issued by us and offered by this prospectus for sale, to some of our directors, officers and employees and related persons. If these

persons purchase reserved shares it will reduce the number of shares available for sale to the general public. Any reserved shares that are not so purchased will be

offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. See "Underwriting--Reserved Shared Program."

We have granted the underwriters an option for a period of 30 days from the date of this prospectus to purchase up to an additional &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class

A common stock from us at the initial public offering price, less the underwriting discounts and commissions.

Neither the Securities and Exchange Commission nor any state securities commission or any other regulatory body 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.

The underwriters expect to deliver the shares to purchasers on or about&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026.

*Joint Lead Bookrunning Managers*

---

| | | | |
|:---|:---|:---|:---|
| **J.P. Morgan**  | **BofA Securities** | **RBC Capital Markets** | **Barclays** |

---

*Bookrunning Managers*

---

| | | | |
|:---|:---|:---|:---|
| **Baird** | **BBVA** | **Guggenheim Securities** | **MUFG** |
| **Societe Generale** | **William Blair** | **Piper Sandler** | **Wolfe \| Nomura Alliance** |

---

Prospectus dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026.

![fervoa.jpg](fervoa.jpg)

![coverart2aa.jpg](coverart2aa.jpg)

![coverart3c.jpg](coverart3c.jpg)

i

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| <u>[Letter from Tim Latimer, Chief Executive Officer](#i024b9246cdc64bff8f3f6e527abc6720_2401)</u> ........................................................................................... | <u>[4](#i024b9246cdc64bff8f3f6e527abc6720_2401)</u> |
| <u>[Prospectus Summary](#i024b9246cdc64bff8f3f6e527abc6720_2431)</u> ......................................................................................................................................... | <u>[6](#i024b9246cdc64bff8f3f6e527abc6720_2431)</u> |
| <u>[The Offering](#i024b9246cdc64bff8f3f6e527abc6720_2460)</u> ...................................................................................................................................................... | <u>[25](#i024b9246cdc64bff8f3f6e527abc6720_2460)</u> |
| <u>[Market and Industry Data](#i024b9246cdc64bff8f3f6e527abc6720_3437)</u> ................................................................................................................................. | <u>[34](#i024b9246cdc64bff8f3f6e527abc6720_3437)</u> |
| <u>[Estimates of Capacity Potential](#i024b9246cdc64bff8f3f6e527abc6720_3468)</u> ........................................................................................................................ | <u>[35](#i024b9246cdc64bff8f3f6e527abc6720_3468)</u> |
| <u>[Cautionary Note Regarding Forward-Looking Statements](#i024b9246cdc64bff8f3f6e527abc6720_2539)</u> .............................................................................. | <u>[36](#i024b9246cdc64bff8f3f6e527abc6720_2539)</u> |
| <u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u> ...................................................................................................................................................... | <u>[38](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u> |
| <u>[Use of Proceeds](#i024b9246cdc64bff8f3f6e527abc6720_2519)</u> ................................................................................................................................................. | <u>[91](#i024b9246cdc64bff8f3f6e527abc6720_2519)</u> |
| <u>[Dividend Policy](#i024b9246cdc64bff8f3f6e527abc6720_2561)</u> ................................................................................................................................................ | <u>[92](#i024b9246cdc64bff8f3f6e527abc6720_2561)</u> |
| <u>[Capitalization](#i024b9246cdc64bff8f3f6e527abc6720_2582)</u> .................................................................................................................................................... | <u>[93](#i024b9246cdc64bff8f3f6e527abc6720_2582)</u> |
| <u>[Dilution](#i024b9246cdc64bff8f3f6e527abc6720_2623)</u> ............................................................................................................................................................. | <u>[95](#i024b9246cdc64bff8f3f6e527abc6720_2623)</u> |
| <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u> ........................... | <u>[97](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u> |
| <u>[Business](#i024b9246cdc64bff8f3f6e527abc6720_2665)</u> ............................................................................................................................................................ | <u>[116](#i024b9246cdc64bff8f3f6e527abc6720_2665)</u> |
| <u>[Management](#i024b9246cdc64bff8f3f6e527abc6720_2686)</u> ...................................................................................................................................................... | <u>[141](#i024b9246cdc64bff8f3f6e527abc6720_2686)</u> |
| <u>[Executive and Director Compensation](#i024b9246cdc64bff8f3f6e527abc6720_2708)</u> ............................................................................................................. | <u>[149](#i024b9246cdc64bff8f3f6e527abc6720_2708)</u> |
| <u>[Principal Stockholders](#i024b9246cdc64bff8f3f6e527abc6720_2729)</u> ...................................................................................................................................... | <u>[165](#i024b9246cdc64bff8f3f6e527abc6720_2729)</u> |
| <u>[Certain Relationships and Related Party Transactions](#i024b9246cdc64bff8f3f6e527abc6720_2750)</u> ..................................................................................... | <u>[168](#i024b9246cdc64bff8f3f6e527abc6720_2750)</u> |
| <u>[Description of Capital Stock](#i024b9246cdc64bff8f3f6e527abc6720_2771)</u> ............................................................................................................................. | <u>[172](#i024b9246cdc64bff8f3f6e527abc6720_2771)</u> |
| <u>[Shares Eligible for Future Sale](#i024b9246cdc64bff8f3f6e527abc6720_2792)</u> ......................................................................................................................... | <u>[179](#i024b9246cdc64bff8f3f6e527abc6720_2792)</u> |
| <u>[Material U.S. Federal Income Tax Considerations for Non-U.S. Holders of Common Stock](#i024b9246cdc64bff8f3f6e527abc6720_2813)</u> ........................ | <u>[183](#i024b9246cdc64bff8f3f6e527abc6720_2813)</u> |
| <u>[Underwriting](#i024b9246cdc64bff8f3f6e527abc6720_2834)</u> ..................................................................................................................................................... | <u>[187](#i024b9246cdc64bff8f3f6e527abc6720_2834)</u> |
| <u>[Legal Matters](#i024b9246cdc64bff8f3f6e527abc6720_2602)</u> .................................................................................................................................................... | <u>[197](#i024b9246cdc64bff8f3f6e527abc6720_2602)</u> |
| <u>[Experts](#i024b9246cdc64bff8f3f6e527abc6720_2855)</u> .............................................................................................................................................................. | <u>[197](#i024b9246cdc64bff8f3f6e527abc6720_2855)</u> |
| <u>[Where You Can Find More Information](#i024b9246cdc64bff8f3f6e527abc6720_2876)</u> .......................................................................................................... | <u>[197](#i024b9246cdc64bff8f3f6e527abc6720_2876)</u> |
| <u>[Index to Consolidated Financial Statements](#ied697e0ac5ae4548a069401c3c517573_32)</u>  | <u>[F-1](#i024b9246cdc64bff8f3f6e527abc6720_3298534884027)</u> |

---

**Through and including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 (the 25th day after the date of this prospectus), all dealers effecting** 

**transactions in these securities, whether or not participating in this offering, may be required to deliver a** 

**prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter** 

**and with respect to an unsold allotment or subscription.**

You should rely only on the information contained in this prospectus, any amendment or supplement to this

prospectus or any free writing prospectus we may authorize to be delivered or made available to you. Neither we nor

the underwriters have authorized anyone to provide you with additional or different information. If anyone provides

you with additional, different or inconsistent information, you should not rely on it. Offers to sell, and solicitations

of offers to buy, shares of our Class A common stock are being made only in jurisdictions where offers and sales are

permitted. The information contained in this prospectus, any amendment or supplement to this prospectus or any

applicable free writing prospectus is accurate only as of its date, regardless of the time of delivery of this prospectus,

any amendment or supplement to this prospectus, any applicable free writing prospectus or of any sale of our Class

A common stock. Our business, financial condition, operating results and prospects may have changed since such

date.

ii

You should not consider any information in this prospectus, any amendment or supplement to this prospectus or

any applicable free writing prospectus to be investment, legal or tax advice. You should consult your own counsel,

accountant and other advisors for legal, tax, business, financial and related advice regarding the purchase of our

Class A common stock. Neither we nor any underwriter (nor any of our or their affiliates) are making any

representation to you regarding the legality of an investment in our Class A common stock by you under applicable

investment or similar laws.

*For investors outside the United States*: Neither we nor any of the underwriters have done anything that would

permit this offering or possession or distribution of this prospectus, any amendment or supplement to this prospectus

or any applicable free writing prospectus in any jurisdiction where action for that purpose is required, other than in

the United States. Persons outside of the United States who come into possession of this prospectus, any amendment

or supplement to this prospectus or any applicable free writing prospectus must inform themselves about, and

observe any restrictions relating to, this offering of our Class A common stock and the distribution of this

prospectus, any amendment or supplement to this prospectus or any applicable free writing prospectus outside of the

United States.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**DEFINED TERMS AND PRESENTATION**

As used in this prospectus, unless the context otherwise requires, references to "*we*," "*us*," "*our*," the

"*Company*," "*Fervo Energy*," and similar references refer to Fervo Energy Company and its subsidiaries. In

addition, the terms below that are used frequently in this prospectus have the following meanings:

• "2019 Plan" means the Fervo Energy Company 2019 Stock Incentive Plan.

• "2026 Plan" means the Fervo Energy Company 2026 Incentive Award Plan.

• "Amended Bylaws" means our amended and restated bylaws.

• "Amended Charter" means our amended and restated certificate of incorporation.

• "BLM" means the Bureau of Land Management.

• "Cape Station" means our GeoCluster located in Milford, Utah, the first approximately 100 megawatts of

which we expect will be delivered to the grid by early 2027.

• "Carbon-free" (or similar constructs) means carbon-free solely with respect to electricity generation from

our EGS processes once our facilities are producing. The term is not intended to capture nor represent any

other GHG emissions in our value chain, including other Scope 1 emissions (directly arising from

operations), Scope 2 (indirect emissions from purchased electricity), or Scope 3 (upstream and downstream,

including transportation and distribution). We do not make any claims regarding lifecycle greenhouse gas

accounting.

• "Class A common stock" means Class A common stock, par value $0.0001 per share, of Fervo Energy

Company.

• "Class B common stock" means Class B common stock, par value $0.0001 per share, of Fervo Energy

Company.

• "COD" means commercial operation date.

• "Code" means the U.S. Internal Revenue Code of 1986, as amended.

• "Co-Founders" means, together, Tim Latimer and Jack Norbeck, PhD.

• "Credit Agreement" means that certain Credit Agreement, dated November 20, 2024, as amended on May

21, 2025, July 23, 2025 and March 6, 2026 with Mercuria Energy Trading SA.

• "Credit Facility" means the $100.0 million term loan facility governed by the Credit Agreement and $80.0

million letter of credit facility governed by the Letter of Credit Facility Agreement.

• "D&M" means DeGolyer and MacNaughton, an independent engineering consulting firm.

• "EGS" means enhanced geothermal systems.

• "ESPP" means the Fervo Energy Company 2026 Employee Stock Purchase Plan.

• "Exchange Act" means the U.S. Securities and Exchange Act of 1934, as amended.

• "FERC" means the Federal Energy Regulatory Commission.

• "FervoFlex" means our approach to delivering flexible, dispatchable geothermal power by using our EGS

systems to provide long-duration, in-reservoir energy storage and rapid load following capability. During

periods of low electricity demand or high renewable generation, production wells are choked back,

allowing for pressure buildup within the reservoir. When grid demand rises, production wells are opened,

releasing stored thermal energy and rapidly ramping power output. This operational flexibility enables

geothermal to complement variable renewables and support a stable, decarbonized grid.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

• "GAAP" means accounting principles generally accepted in the United States.

• "GeoBlock" means our standardized, 50-megawatt Organic Rankine Cycle power plants.

• "GeoClusters" means our leased acreage positions that we expect to support multi-gigawatt power

developments.

• "Geothermal resources" means thermal energy derived from the Earth's natural heat and stored in a

reservoir.

• "GFA" means the Geothermal Framework Agreement, dated March 19, 2026, with Google Energy LLC.

• "GWh" means gigawatt-hours.

• "HIIP" or "heat initially in place" means those estimates of quantities of thermal energy generated from

geothermal resources.

• "LCOE" means levelized cost of energy.

• "Letter of Credit Facility Agreement" means that certain Letter of Credit Facility Agreement, dated

November 20, 2024, with Mercuria Energy Trading SA.

• "NEPA" means the National Environmental Policy Act.

• "NERC" means the North American Electric Reliability Corporation.

• "ORC" means Organic Rankine Cycle.

• "PPAs" means power purchase agreements or any other agreements pursuant to which we sell power or

related attributes to our customers.

• "Project Red" means our commercial pilot use of horizontal wells in an EGS system in northern Nevada,

which was a limited-scope, proof-of-concept initiative designed to demonstrate certain technical

capabilities.

• "Project Granite Facility" means the construction loan facility, ITC Transfer bridge loan facility, letter of

credit facilities, and a term loan facility, dated March 6, 2026 in the aggregate amount of approximately

$421.4 million.

• "R&D" means research and development.

• "SEC" means Securities and Exchange Commission.

• "Securities Act" means the U.S. Securities Act of 1933, as amended.

• "TWh" means terawatt-hours.

• "VRE" means variable renewable energy.

• "XRC Facility" means three promissory notes in the aggregate amount of $145.6 million under a loan

agreement with XRL ALC, LLC. This facility was terminated on April 14, 2026.

Certain monetary amounts, percentages, and other figures included in this prospectus have been subject to

rounding adjustments. Percentage amounts included in this prospectus have not in all cases been calculated on the

basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage

amounts in this prospectus may vary from those obtained by performing the same calculations using the figures in

our consolidated financial statements included elsewhere in this prospectus. Certain other amounts that appear in this

prospectus may not sum due to rounding.

This prospectus includes our registered or common law trademarks, service marks and trade names, including

but not limited to our design logo, Fervo Energy™, FervoFlex™, FERVO50 GEOBLOCK™, GEOCLUSTER™,

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

GEOBLOCK™, GEOCLUSTERS™ and GEOBLOCKS™, which are protected under applicable intellectual

property laws. This prospectus also contains trademarks, trade names, and service marks of other companies, which

are the property of their respective owners. We do not intend our use or display of other parties' trademarks, service

marks or trade names to imply, and such use or display should not be construed to imply, a relationship with, or

endorsement or sponsorship of us by, these other parties. Solely for convenience, trademarks, service marks and

trade names referred to in this prospectus may appear without the <sup>®</sup>,™, or <sup>SM</sup> symbols, but such references are not

intended to indicate, in any way, that we will not assert, to the fullest extent permitted under applicable law, our

rights or the right of the applicable licensor to these trademarks, service marks and trade names.

Our audited consolidated financial statements as of and for the years ended December 31, 2025 and 2024

included in this prospectus have been prepared in accordance with GAAP.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**LETTER FROM TIM LATIMER, CHIEF EXECUTIVE OFFICER**

American economic prosperity has always depended on affordable, reliable energy. And as the U.S. confronts a

global AI race, and increasing geopolitical and environmental uncertainty, this fundamental truth will only deepen.

There is no AI revolution without power for data centers. There is no industrial renaissance without power for

manufacturing facilities and military bases. There is no future where we address the emissions causing climate

change without power for mass electrification.

But energy abundance is not guaranteed. In the 1970s, a prolonged energy crisis stifled American growth. Fuel

rations became commonplace, and across U.S. cities, lines at gas stations stretched for miles as drivers clamored for

fuel.

This crisis eventually gave rise to the Shale Revolution. Unwilling to accept stagnant domestic oil production,

policymakers, companies, and investors pushed for unconventional fossil fuel extraction. Horizontal drilling and

hydraulic fracturing offered an answer. And with continuous engineering improvements enabled by learning curves

and economies of scale, developers unlocked oil and gas in previously inaccessible locations. By the early-2010s,

horizontal drilling and hydraulic fracturing had transformed the global energy landscape by providing a new way to

access affordable energy.

The U.S. now faces a new energy crisis, a crisis driven by breakneck AI advancements, competition with China,

and climate instability. And though this crisis is novel, the technology needed to solve it is not.

The EGS approach we have pioneered on the back of over a decade of learnings from the Shale Revolution is

now sparking a revolution in clean, around-the-clock geothermal power. Fervo launched in 2017 with a simple

thesis: the same tools and engineering undergirding shale can make geothermal a scalable, cost-competitive clean

energy solution capable of addressing dramatic load growth. Unlike shale, which depletes hydrocarbons, EGS

leverages a heat reservoir for steady, renewable output. And while shale playbooks front-load production with

depletion and declines thereafter, EGS enables long-term, steady electricity generation.

To date, this thesis has proven correct. Horizontal drilling and hydraulic fracturing remove geographic

constraints on geothermal production, increasing capacity potential by orders of magnitude. According to Rystad,

conventional geothermal currently supplies the U.S. with roughly 3.8 gigawatts of energy. By contrast, Fervo's Cape

Station site alone offers approximately 4.3 gigawatts of capacity potential, while a broader subset of our reviewed

leases represents over 40 gigawatts. EGS has the potential to make geothermal generation as ubiquitous as solar

generation is in the U.S. today.

Rapid buildout is already underway. Fervo has 500 megawatts currently under construction and 658 megawatts

of contracted offtake with tier-one partners like Southern California Edison, Google / NV Energy, and Shell,

providing a clear roadmap for potential near-term growth. We have entered a new era of geothermal development.

Relying on proven oil and gas technology allows for this scale. We do not need to build domestic supply chains

from scratch; we can leverage existing oilfield services providers. We do not need to retrain or reskill hundreds of

workers to drill our wells; we can leverage the U.S.'s robust oil and gas labor force. Our ability to provide reliable,

carbon-free electricity and also tap the traditional oil and gas industry workforce has made geothermal a bipartisan

solution, even as other resources become politically polarized.

Ultimately, though, the engineering mentality behind the Shale Revolution is just as important to our success as

the underlying technology. Shale transformed American energy thanks to learning curves—meaningful cost

reduction over repeated operations. In conventional oil and gas, producers targeted unique and complex systems

hoping for outsized returns. Shale, however, prioritized highly predictable basins spanning hundreds of square miles.

Repetitive basin-wide drilling allowed for standardization and simplification, increasing per-well productivity while

lowering costs.

This powerful combination—standardization and simplification—is critical to technology revolutions. It helped

Toyota become a global automotive juggernaut, leveraging "lean manufacturing" to popularize Japanese cars. It

helped SpaceX reinvigorate space travel, reducing rocket system complexity from the Raptor 1 to the Raptor 2 to the

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Raptor 3. It will now help Fervo provide 24/7 clean energy at the speed, scale, and cost needed to achieve an

American-led AI future.

Fervo is working to build a different type of energy company—one that treats each geothermal power facility as

a repeatable product, not a one-off, complicated project. We intend to deliver power in standardized, 50-megawatt

ORC units, relentlessly reducing complexity with every well drilled and every turbine installed. With few locational

constraints on our subsurface operations, we can develop sites to multi-gigawatt sites, harnessing learning curves to

drive continuous improvement and make geothermal cheaper than it has ever been.

Our first utility-scale deployment in the Cape Station site will provide a baseline for our core product. We

expect that each power unit built thereafter will improve on this baseline by using learnings to streamline

engineering design.

Our commitment to continuous improvement rests on four core corporate values that have guided Fervo since

our inception. First, we Build Things That Last, prioritizing health, safety, and the environment above all else. No

matter how quickly we grow, we will not compromise the safety of our workers or the communities in which we

operate.

Second, we Do What We Say We Are Going To Do, assessing each task honestly and holding employees, and

the company, accountable to transparent, quantifiable performance targets.

Third, we Innovate Through Collaboration, seeking ideas from all sources and forging relationships with best-

in-class partners.

Finally, we Stop And Smell The Roses, because a company that celebrates its wins and genuinely values the

wellbeing of its people is a company positioned for lasting, sustainable growth. By keeping employees for the long

term, we can realize the engineering and commercial learning curves so central to our business.

Together, these four values define Fervo's culture.

Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for

megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities

demand clean, firm electricity to stabilize the grid. Fervo is prepared to serve all of these customers. Not with

complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock,

carbon-free power using proven oil and gas technology.

American economic dynamism has long depended on reliable energy. The reliable energy of our time is next-

generation geothermal.

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**PROSPECTUS SUMMARY**

*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus.* 

*This summary does not contain all of the information you should consider before investing in our Class A common* 

*stock. You should read this entire prospectus carefully, including the sections titled "Risk Factors," "Special Note* 

*Regarding Forward-Looking Statements," and "Management's Discussion and Analysis of Financial Condition and* 

*Results of Operations," and our consolidated financial statements and related notes included elsewhere in this* 

*prospectus, before making an investment decision. Unless the context otherwise requires, the terms "Fervo," the* 

*"Company," "we," "us," and "our" in this prospectus refer to Fervo Energy Company and its consolidated* 

*subsidiaries.*

**Our Mission**

To transform geothermal energy into America's most dependable and affordable source of clean, 24/7 power.

**Fervo Energy** 

The U.S. is in critical need of firm, reliable power. Rapid growth in data centers, the resurgence of domestic

manufacturing, and accelerating electrification are driving electricity demand that outpaces new planned generation.

Rystad reports that by 2035, the country is expected to face a 98-gigawatt accredited capacity shortfall, highlighting

an urgent need for new, scalable sources of 24/7 power.

As the pioneer of enhanced geothermal systems ("EGS"), we are commercializing a new category of firm power

that is scalable, rapidly deployable, readily available, and geographically flexible. By applying proven technologies

like horizontal drilling and multi-stage hydraulic fracturing, we are transforming geothermal energy from a niche

resource into a utility-scale power solution that is clean, reliable, cost-competitive, and suited to the needs of

hyperscalers and utilities alike.

Geothermal is a highly attractive energy resource – it is clean, firm, and reliable. But traditional geothermal

projects depend on rare geologic conditions like volcanic systems with highly conductive natural fracture networks,

which has constrained development to places like Iceland, Kenya, California, and Hawaii. Additionally, traditional

geothermal projects have carried significant development risk because wells either succeed or fail entirely with

natural fracture networks. This uncertainty has made these projects unpredictable, expensive, and hard to scale.

Our EGS technology addresses the scalability limitations and key development risks of traditional geothermal

energy. By designing and controlling subsurface flow pathways, we can predictably recover heat without relying on

naturally occurring permeability. Additionally, we deploy innovative subsurface monitoring technologies such as

AI-enhanced fiber optic sensing that enable us to monitor and predict geothermal heat transfer at high spatial and

temporal resolution. We believe these capabilities will enable us to standardize project development, optimize power

facility placement and design, and capture economies of scale previously unavailable to the geothermal industry. We

expect this innovative approach to position us to deliver predictable, cost-effective, and scalable geothermal power

that follows learning curve cost declines, thereby providing the dependable energy needed to help close the nation's

capacity shortfall.

Our EGS technology has been delivering clean electrons to the grid and generating revenue since 2023 at our

commercial pilot called Project Red, differentiating us from certain other energy alternatives still grappling with

technology risk, long development timelines, permitting uncertainty and supply chain constraints. Expanding upon

this success, we are now building Cape Station, a 500-megawatt greenfield project, where we expect to deliver first

power by late 2026. Our proven technical approach and track record of execution has generated meaningful

commercial traction. Across our full portfolio, we have signed 658 megawatts of binding power purchase

agreements ("PPAs") with investment-grade utility and corporate energy buyers including Southern California

Edison and Shell. Beyond our current contracted backlog, we have also entered into a 3-gigawatt framework

agreement with Google (the "Geothermal Framework Agreement" or "GFA") to advance and structure potential

power offtake opportunities for current and planned data centers in both grid-connected and alternative energy

solutions.

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**Our Project Pipeline** 

We are a geothermal energy developer that builds, owns, and operates geothermal power facilities. We construct

projects in phases across leased acreage positions that can support multi-gigawatt power developments

("GeoClusters"). Our leasing strategy is focused on securing high-quality, geothermal resources in prime locations,

the vast majority of which have existing deep wells that confirm significantly elevated temperatures at shallow

depths and near-term commercial viability. We pair detailed geologic analysis with commercial assessments, such as

transmission access, market conditions, and permitting, so that each opportunity meets our development standards.

In June 2023, we broke ground on our first GeoCluster – Cape Station – located in Milford, Utah, which we

expect will become the world's largest EGS project in terms of total installed capacity. At Cape Station, we have

500 megawatts under construction and expect to deliver first power in late 2026, reaching approximately 100

megawatts of operating capacity by early 2027. These 500 megawatts represent only the first two phases of the Cape

Station GeoCluster. We also have a permit in place to develop an incremental 1.5 gigawatts at the site, and based

upon a combination of internal estimates and findings from an independent engineer assessment, estimate that we

have a total of approximately 4.3 gigawatts of capacity potential at Cape Station.

Cape Station is expected to be the first in a large portfolio of high-capacity factor, carbon-free, baseload power

GeoClusters, supporting the company's runway for significant, near-term organic growth across our 595,900 acre

land position as of December 31, 2025.

We classify our portfolio into three distinct categories: Mature, Pipeline, and Prospects.

![business1aa.jpg](business1aa.jpg)

As of December 31, 2025, our Mature, Pipeline, and Prospects portfolio consisted of the following:

***Mature***

• Operating: 3 megawatts are currently online and generating power from our pilot project, Project Red.

• Under Construction: 500 megawatts are currently in construction at Cape Station, with commercial

contracts in place and physical work underway.

• Ready to Build: 550 megawatts across two different GeoClusters were shovel-ready with initial permits

secured to begin construction. These megawatts are backed by calibrated subsurface models, validated

against well data and geophysical surveys, and have a clear wellfield development strategy in place.

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Commercially, we have secured or are in advanced negotiation for offtake and have either obtained

interconnection or established a clear, achievable path.

***Pipeline***

• Advanced Development: 2.6 gigawatts were in advanced development. These projects have a go-to-market

strategy established, with key development milestones progressing and active origination efforts underway.

Typical activities include preliminary permit filings, on-site geological studies work, and submission of

interconnection applications.

• Early Development: Over 38 gigawatts were in early-stage development across ten GeoClusters where we

have commissioned and received independent HIIP studies and are conducting feasibility activities to

validate and confirm the path toward commercial development.

***Prospects***

• Land Holdings: Our remaining portfolio consists of approximately 256,000 acres of leased acreage as of

December 31, 2025, with differentiated geothermal resource quality currently maintained in our portfolio.

For this category, we have secured leases and identified project areas, but have not commenced initial

development work.

These three categories (Mature, Pipeline and Prospects) represent the expected progression of our megawatts

from those in early development stages to revenue-generating operations.

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As of December 31, 2025, our generation portfolio was comprised of the following:

![business2aa.jpg](business2aa.jpg)

__________________

Note: Capacity Potential estimates are based on "Best Estimate" HIIP estimates presented in reports prepared by D&M using assumptions

regarding notional EGS development plans, ORC turbine efficiency, parasitic loads, and other assumed recovery factors, and are subject to

change with additional data.

**Our Project Economics** 

Our business model combines technological innovation with disciplined project development and seeks to

deliver predictable returns and strong cash generation. In addition to advancing the technical boundaries of

geothermal energy, we are implementing a development approach that leverages repeatability, enhanced production

performance, and economies of scale. We believe relentless focus on these three areas will enable us to

systematically improve the economics of geothermal power generation and increase the value of each megawatt

produced across our portfolio.

• ***Repeatability –*** Freed from the constraints of conventional geothermal systems, our approach emphasizes

standardization and repetition in order to capture and integrate geological, technical, and experiential

learnings to meaningfully reduce costs. Since 2022, the company has demonstrated a steep drilling learning

curve, reducing drilling times by approximately 75% from 2022 to 2025 and lowering per-foot drilling

costs by approximately 70% over the same period. We employ advanced data analytics and proprietary AI-

based modeling to better predict operational conditions and accelerate design optimization, drawing on

more than 500 terabytes of high-fidelity operational data collected to date. To extend these efficiencies

from the wellfield to the surface facilities, we plan to deploy standardized 50-megawatt ORC power plants

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that we call GeoBlocks—which aggregated together form GeoClusters— that we expect will yield power

projects that are modular and reliable. By modularizing capacity into standardized 50-megawatt GeoBlocks

and scaling them in GeoClusters, we believe we can create a repeatable, bolt-on development model that

compounds learning across projects, shortens delivery timelines, and enables predictable, utility-scale

expansion. The chart below illustrates the impact of learning curves on our business over time,

demonstrating the decrease in cost per foot and days spent drilling to total depth per well across our Project

Red and initial Cape Station subsurface construction.

![fe1020_drillingratexv3a.jpg](fe1020_drillingratexv3a.jpg)

Source: Fervo Data

For our two Project Red wells, total vertical depths were approximately 7,500 feet and total measured depths

were approximately 11,000 feet, with a horizontal section of approximately 3,000 feet. For our Cape Station Phase I

subsurface construction, we increased the total vertical depths to approximately 9,000 feet and total measured depths

to approximately 14,000 feet, with a horizontal section of approximately 5,000 feet. We plan to drill approximately

8–10 wells per standardized GeoBlock. Planned well depths will vary and will be refined based on site-specific

geology and geography, including subsurface thermal gradient, stress conditions, and structural or tectonic setting

pertinent to EGS, to intersect target heat-bearing formations at the depths required for effective reservoir creation.

• ***Enhanced Production Performance*** – We seek to continue to increase output and efficiency through

improvements in well design, reservoir engineering, and surface facility optimization. We have already

deployed progressively longer lateral wells and have targeted progressively higher temperature formations

to enhance heat recovery from each well and improve power conversion efficiency. For example, our

Project Red wells have maximum lateral lengths of approximately 3,000 feet and target formation

temperatures of approximately 350°F, whereas the Cape Station Phase I wells have maximum lateral

lengths of approximately 5,000 feet and target higher formation temperatures of approximately 400°F.

These design choices reflect our progression toward longer laterals and hotter reservoirs in successive

phases, with Cape Station Phase I representing a step-change relative to Project Red. Proprietary

stimulation techniques and real-time monitoring allow us to optimize flow distribution and thermal

recovery. We continuously refine our approaches to drilling, completions, and facility configuration to

deliver incremental performance gains with each successive phase of each project.

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• ***Economies of Scale*** – Our GeoCluster-focused approach supports the development of shared infrastructure

and streamlined supply chains. By replicating uniform GeoBlocks across multiple sites, the company

achieves procurement leverage, lowering capital intensity and increasing the predictability of long-lead

time equipment supply. We expect multi-gigawatt GeoClusters will allow us to capture scale efficiencies

across engineering, construction, manufacturing, workforce, and operations, further enhancing project

returns and improving overall company economics.

Together, we believe these capabilities create a compounding advantage across our portfolio. We expect that

repeatability, enhanced production performance, and economies of scale will contribute to lower capital intensity

and higher margins on a per-megawatt basis and enhance project-level cash generation. As additional GeoBlocks are

deployed across GeoClusters, we expect continued reductions in cost per megawatt and improvements in return on

invested capital, reinforcing the company's ability to deliver sustained value.

![fe1025_fervoxgeoclusterxv2a.jpg](fe1025_fervoxgeoclusterxv2a.jpg)

Source: Midpoint for geothermal capacity factor, Rystad Energy.

**Our Opportunity**

Driven by surging load from AI and data centers and accelerating electrification across transportation,

buildings, and industry, the U.S. power market is approaching a decisive inflection point as electricity demand

outpaces new planned generation. At the same time, Rystad notes that roughly 66 gigawatts of aging accredited

capacity are expected to retire by 2035, which is projected to lead to a nationwide accredited capacity shortfall of

approximately 98 gigawatts by 2035. Underlying this accredited capacity shortfall is the disproportionate retirement

of baseload power sources, namely coal, which comprises 80% of net power retirement through 2035. To close the

projected capacity shortfall, the market will require substantial incremental firm generation.

A firm energy resource, like geothermal, natural gas, nuclear or coal, can reliably deliver electricity at consistent

levels for long durations and typically has a capacity factor above 75%. Because of its reliable nature, firm power is

critical for the inflexible demand profiles of data centers, as well as industrial and commercial consumers. However,

market participants expect the projected shortfall in firm power generation to be increasingly plugged by intermittent

renewables (wind, solar, often paired with batteries to extend availability); Rystad predicts that renewables could

comprise 32% of all U.S. power generation by 2035. Meanwhile, rising peak demand, in conjunction with planned

firm power retirements, is driving down reserve margins across the U.S., making additional firm capacity critical.

This mismatch in supply and demand has manifested itself in progressively higher PPA prices for firm energy

resources. Rystad reports that clean, firm energy sources, like EGS, can command pricing in the range of $100-130

per megawatt-hour.

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According to Rystad, if EGS were to meet the emerging accredited capacity gap in the U.S. alone, the annual

addressable market would be approximately $70.0 billion by 2035. Assuming a 30-year asset life, this represents a

$2.1 trillion revenue potential opportunity.

We believe we are well positioned to meet this moment. Our EGS technology is proven and scalable. Our

modular engineering approach supports rapid deployment. Our commercial pipeline is advanced, our wellfield

supply chain and labor force are mature, and our intellectual property is broad, while our acreage holdings contain

approximately 595,900 acres of geothermal leases that provide significant room for expansion. These advantages

position us to become one of the largest providers of scalable, carbon-free baseload power over the next decade.

The following factors highlight the structural demand-supply imbalance in U.S. power markets and underscore

why we believe that scalable, firm, carbon-free solutions like EGS are positioned to capture outsized value in the

decade ahead.

• ***All-Time High Power Demand*** – After two decades of relatively stable load growth between 2000 and

2020, energy demand is rising steeply and rapidly driven by the artificial intelligence ("AI") boom,

renewed onshoring of manufacturing and economy-wide electrification. The chart below demonstrates the

accelerating pace of load growth in the United States.

![fe1021_unprecendentedloadga.jpg](fe1021_unprecendentedloadga.jpg)

Source: Rystad Energy.

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• ***Deficient Supply Alternatives****.* – The U.S. energy system is facing a severe supply constraint caused by

insufficient new capacity additions and aging infrastructure. Existing power supply alternatives face various

limitations in this time of great need. Variable renewable energy resources ("VREs") like solar and wind

have expanded rapidly but can only meet certain hours of demand, even when coupled with battery storage.

Firm energy resources like natural gas face supply chain bottlenecks and volatile fuel pricing. Nuclear

power remains a critical firm energy resource, but new large-scale projects are battling high costs and long

development timelines. The charts below demonstrate the lack of baseload power expected to be added to

the U.S. energy system, and the particular impact on the Western U.S., our current area of operations.

![fe1022_limitedbaseloadxlara.jpg](fe1022_limitedbaseloadxlara.jpg)

Source: Rystad Energy.

**Our Innovative Solution** 

We have successfully applied proven technological innovations from the American oil and gas industry to

kickstart what we expect to be another great American industry: next-generation geothermal. Across every layer of

our technology stack, we endeavor to target and systematically eliminate key constraints to traditional geothermal

development to make geothermal energy the most dependable and affordable source of power in America.

Conventional geothermal developers cede control of their projects to the whims of subsurface geology, relying

on natural fracture networks in hot rock to access heat for power generation. This approach restricts development to

a select few locations with adequate subsurface conditions, introduces binary dry hole risk given the unpredictability

of natural fractures, and imposes a fixed upper bound on reservoir-wide power output. Constrained by the resource

size available in natural fractures, conventional geothermal developers have historically been unable to drill new

wells to make up additional capacity if projects underperform, adding additional tail risk after the project is built.

Rather than accept the variability of drilling vertical wells into a natural fracture network, we use proven

technology from the oil and gas industry to build a tightly controlled system for heat extraction in low-permeability

geothermal formations. We engineer these reservoirs by drilling sets of parallel horizontal injection and production

wells through hot rock, accessing a zone of the geothermal reservoir with a highly predictable volume of heat in

place. We then use multistage hydraulic fracturing to connect the wells, establishing pathways and sufficient surface

area in the rock through which water can flow, heat up, and return to the surface for power generation. We also

install AI-enhanced fiber optic sensing cables to measure reservoir conditions in real-time. This data is then used to

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continuously monitor flow rates, pressures, and temperatures across the wellfield, allowing us to predict and

optimize future well output. Our proprietary, data-assimilative models integrate continuous temperature and pressure

profiles to update reservoir state in real time, enabling more accurate production forecasts and proactive decisions to

sustain deliverability and recoverable heat. Our approach allows us to actively manage long-term reservoir

performance; if production falls off in any part of the field, we are able to drill infill wells or simply drill new wells

to mine additional heat and extend overall reservoir lifetime.

![fe1005_fervoxegstecha.jpg](fe1005_fervoxegstecha.jpg)

Instead of creating separate one-off vertical wells (each with a separate well pad) across a field, we can access

vast quantities of subsurface heat by drilling many horizontal wells from a single pad with a compact footprint,

dramatically reducing land disturbance. This approach replicates the successful wellfield design used in the shale oil

and gas revolution. However, unlike in shale, where operators typically target specific and sometimes narrow

payzones, we can access progressively hotter rock the deeper we drill. Our reservoir is only bounded by temperature,

with the minimum temperature established by power plant efficiency and the maximum temperature established by

the temperature limits of subsurface equipment. At present, we apply a minimum reservoir temperature of

approximately 300°F and a maximum reservoir temperature of approximately 625°F, and we utilize a cutoff vertical

depth of about 13,000 feet to define resources we consider technically and commercially viable. These parameters

may evolve over time with improvements in drilling and subsurface technology or changes in market conditions (for

example, higher PPA pricing can support lower temperatures or deeper drilling). As a result, our payzones already

extend thousands of feet in thickness, and we expect these will continue to grow over time as better drilling

technology is developed.

**Our Wellfield Production** 

Data observed from our projects to date has validated our approach. In 2023, we brought our pilot, Project Red,

online. The project quickly demonstrated record 24/7 carbon-free power production, generating three megawatts of

gross power production to the Nevada grid and proving the commercial viability of our innovative drilling

technology. Additionally, at our Project Red commercial pilot, we have observed consistent, stable temperature

output in line with our modeling and expectations. To date, Project Red has not experienced the kind of premature

thermal decline that has long plagued traditional geothermal projects.

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We apply advanced data analytics, computational modeling, and data-driven empirical modeling to generate

high-fidelity production forecasts to optimize the economics of our projects. After pioneering the installation of

permanent AI-enhanced fiber optics in geothermal wells, we have collected over 500 terabytes of downhole data that

have been analyzed and used to improve well spacing, completion design, and wellfield optimization. With every

well drilled, casing string installed, and flow test completed, we deepen our knowledge of EGS reservoirs and

extend our first-mover advantage.

**Our Scalable Deployment** 

Our approach is designed specifically with scale in mind. With geothermal heat recovery substantially de-

risked, we can leverage a modular, standardized approach to on-surface power generation to drive cost reductions,

increase deployment speed, and leverage economies of scale and flexibility in our supply chain. We plan to deploy

standardized, 50-megawatt ORC power facilities that we call GeoBlocks. Production wells send hot geothermal

brine to a heat exchanger, where it transfers heat to a working fluid. After transferring heat, the cooled geothermal

brine is reinjected underground to cycle through the geothermal reservoir again. In the heat exchanger, the working

fluid is vaporized, ultimately spinning a turbine to create electricity. The vapor is then cooled back into a liquid

using air-cooled condensers to minimize water usage.

We have already secured binding contracts for 500 megawatts of ORC turbine capacity through partnerships

with Baker Hughes and Turboden (a wholly-owned subsidiary of Mitsubishi) for our projects under construction,

and have further expanded this supply through a 1.7 gigawatt ORC turbine framework agreement with Turboden.

These manufacturers have longstanding ORC business units that stand apart from natural gas turbines, helping

support near-term ORC supply even as gas turbines remain backlogged.

GeoBlocks are engineered for rapid scalability. When aggregated, multiple GeoBlocks make up a GeoCluster,

which we define as a multi-gigawatt geothermal power hub designed to provide substantial generation while

streamlining construction and operations. With approximately 595,900 acres of geothermal leases across the United

States as of December 31, 2025, we are primed to implement several GeoCluster power hubs in the next decade with

the potential to support more than one power market. A majority of our leases have a 10-year initial term, and in

most cases, extension options.

To date, all of our commercial contracts feed electrons to the power grid. But by deploying multi-gigawatt

GeoClusters, we can mitigate transmission risk associated with our projects. First, the size and capacity factor of our

projects are catalyzing partnerships with transmission developers who seek project certainty and high line

utilization. We are also pursuing behind-the-meter partnerships with hyperscalers who seek large generation and

high uptime. We believe that our GeoCluster approach for AI data center development pairs a repeatable, flexible

commercial framework with a modular, scalable power solution aligned with hyperscale customer demand and

supports definitive offtake agreements over time. Ultimately, we can blend behind-the-meter and transmission

solutions, maximizing resilience and redundancy at a single site.

**Our Customers**

Our customers have the following profile:

• ***Customers who want reliability.*** Utilities cannot replace baseload coal and nuclear plants with solely

intermittent resources such as wind and solar power. To ensure a safe, functional and reliable grid capable

of addressing demand peaks, utilities must procure a new generation of baseload options. Likewise,

hyperscalers demand reliability to maximize uptime for their AI models.

• ***Customers who seek a near-term solution.*** Power buyers place a premium on near-term deliverability. In

the race for AI dominance, hyperscalers continue to construct additional data center capacity to avoid

falling behind their foreign and domestic competitors. This arms race mentality has pushed leading AI

companies to go to extreme lengths to obtain more power. For example, xAI has taken the extraordinary

step of purchasing a natural gas power plant overseas and shipping it to the U.S. to power a 2-gigawatt data

center. Utilities, too, recognize the time-sensitivity of bringing new supply online. According to Rystad,

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many states across the western United States could face capacity shortfalls by 2031. To address this risk,

utility commissions are increasingly pushing load-serving entities to procure additional reliable power.

• ***Customers who demand cost-competitiveness.*** Even as PPA prices continue to rise, buyers maintain price

ceilings above which baseload power procurement remains unattractive. Especially as popular attention on

electricity prices increases, utilities will have to guard against serious cost inflation to remain viable.

• ***Customers who seek carbon-free solutions***. Whether because of state-level renewable energy mandates or

voluntary emissions reduction commitments, a wide variety of buyers continue to prioritize carbon-free,

clean energy sources. For utilities in certain jurisdictions, political pressure has increased the urgency of

clean power procurement.

The EGS technology we pioneered is very well suited to meet our customers' power procurement needs:

• ***We offer reliability.*** EGS projects provide high-capacity-factor baseload power, with no fuel price

exposure.

• ***We deliver power now.*** Our EGS technology is one of the few 24/7 power solutions capable of bringing

incremental generation online before 2030. We expect to begin delivering first power from our 500-

megawatt Cape Station project by late 2026, and to reach approximately 100 megawatts of operating

capacity by early 2027.

• ***We offer an economic, non-volatile alternative.*** At approximately $7,000/kW, our first Cape Station

project already outcompetes both traditional and small modular nuclear power in overnight capital costs.

Over time, our goal is to achieve scale and drive down prices such that we're able to outcompete gas by

achieving an Nth-of-a-kind project cost of $3,000/kW without fuel price exposure. Unlike conventional

power producers, our "fuel" is geothermal heat. The cost of accessing it is embedded upfront in our

subsurface capital expenditures and water systems, not in an ongoing commodity expense. By eliminating

exposure to commodity price swings, we intend to deliver predictable, contractable pricing that reduces

hedging costs and risk premiums, which we believe provides economic value that our customers will

recognize and be willing to pay to secure. Beyond delivering power, we also sell multiple products,

including energy, capacity, and environmental attributes. This mix supports premium pricing and stronger

margins as markets increasingly value clean, 24/7 capacity and verified environmental attributes. This

fundamental advantage distinguishes us from traditional power companies and underpins the long-term

stability of our cost structure.

• ***We offer carbon-free, renewable power.*** According to the Department of Energy, EGS projects using

binary-cycle ORC power plants have a fraction of the emissions footprint as natural gas plants. The carbon-

free nature of our product makes EGS especially attractive in states with time-sensitive, ambitious

renewable portfolio standards and for corporate buyers who seek to maintain their climate goals.

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These core attributes (reliability, deliverability, cost-competitiveness, and carbon-free) position our EGS

technology ahead of other power options, allowing us to capitalize on high, inelastic power demand.

![fe1023_installedcapexxv3a.jpg](fe1023_installedcapexxv3a.jpg)

Sources: Rystad Energy and management estimates.

**Our Competitive Strengths**

• ***First-Mover Advantage with Highly Advanced Development Portfolio:*** We are the global pioneer of EGS

technology. We successfully drilled and stimulated the country's first commercial EGS wells at our pilot,

Project Red. With an operating pilot and two and a half years of 500 megawatts of greenfield construction

underway, including over 25 wells drilled, we maintain a significant first-mover lead in the EGS space.

These wells were drilled at our Cape Station project in Beaver County near Milford, Utah, and at Project

Red adjacent to the Blue Mountain geothermal field near Winnemucca in Humboldt County, Nevada. As of

December 31, 2025, our projects under construction accounted for approximately 13% of all geothermal

capacity under construction in the United States. By reducing subsurface risk in geothermal heat recovery,

we have increased the velocity with which megawatts can move through our development pipeline.

Additionally, with 595,900 leased acres as of December 31, 2025, we hold what we believe to be one of the

U.S.'s largest portfolios of high-quality geothermal leases. We assembled this position at a weighted

average of approximately $4 per acre during a period of minimal competition between 2019 and 2021, in

sharp contrast to current U.S. Bureau of Land Management lease sales in Utah and Nevada, where

maximum bids reached $344 and $410 per acre, respectively, in 2025. Many of those newly auctioned

parcels did not meet our standards for high-priority development and thus were outside our initial focus

areas, reflecting the quality of our acreage. According to Bloomberg, certain geothermal developers in Utah

and Nevada have paid hundreds of dollars per acre in 2025 for geothermal positions that failed to meet our

development standards. We are thus uniquely positioned as a first mover to capitalize on surging demand

for clean, firm, reliable power.

• ***Proven Ability to Secure Binding, Long-Term Offtake:*** We have executed 658 megawatts of binding

PPAs across each of our target customer verticals, including hyperscalers, major utilities (Southern

California Edison), community choice aggregators (Clean Power Alliance and Desert Community Energy)

and supermajor energy companies (Shell). These contracts were executed at attractive prices, representing

approximately $7.2 billion in potential revenue backlog. This commercial momentum is further bolstered

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by a 3-gigawatt framework agreement with Google. Though not a binding, project-specific PPA, the

agreement provides a structured roadmap for future capacity expansion and establishes a repeatable model

for large-scale corporate offtake.

• ***Modular Design Enabling Speed to Power and Economies of Scale:*** We intend to deploy our technology

in 50-megawatt GeoBlocks, standardized ORC power units that we anticipate will extend our learning

curves from wellfield development to geothermal power plant construction. We expect to further support

these learning curves by concentrating our operations in multi-gigawatt GeoClusters. Each cluster can

support hundreds of EGS wells and dozens of adjacent GeoBlocks, creating unprecedented economies of

scale in the geothermal industry. We believe that this approach will make our cost-competitive EGS

solution increasingly attractive to high credit-quality offtakers and will assist us in catering to AI

hyperscalers that require speed-to-power, gigawatt-scale energy access, and 24/7 availability.

• ***Demonstrated Access to Asset-Level Capital Enables Financial Flexibility:*** As of December 31, 2025, we

had raised $320.6 million of project level capital, comprised of $175.0 million of project-level equity and

$145.6 million of project-level debt. Subsequently, on March 6, 2026, we closed an approximately $421.4

million project finance credit facility with a syndicate of nine lenders (the "Project Granite Facility") for the

first phase of our Cape Station development. Our relationships with leading capital providers give us the

flexibility to secure lower-cost, non-dilutive project-level financing, extending the runway of our corporate

funds while accelerating deployment and substantially de-risking our funding strategy through diversified

sources of capital.

• ***Robust Intellectual Property Portfolio:*** We have a comprehensive intellectual property portfolio which

includes patents and trade secrets covering many material proprietary aspects of our EGS technology. Our

key patents and trade secrets deter competitors from employing critical but protected processes required to

create and manage the subsurface flow of geothermal brine.

• ***Resilient Development Approach Leveraging Secure Supply Chain:*** We have proven capable of

seamlessly scaling our operations through partnerships with well-established oilfield services providers

such as Liberty Energy, Helmerich & Payne and Vallourec. We have also developed durable partnerships

with ORC turbine manufacturers from key U.S. partner nations, such as Turboden (a wholly-owned

subsidiary of Mitsubishi) and Baker Hughes, which remain relatively insulated from tariffs and

procurement backlogs that are currently impacting natural gas turbines, along with primarily U.S.

headquartered balance of plant equipment providers.

• ***Founder-Led Management Team:*** Co-founders Tim Latimer and Dr. Jack Norbeck, along with our

executive leadership team, have over 125 years of energy experience across companies in upstream oil and

gas, oilfield services, and power and renewables, including Shell, BP, Chevron, BHP Billiton, NRG, Hess,

SLB, and NOV.

**Our Growth Opportunities**

Our principal growth strategies include:

• ***Progress GeoCluster Development:*** We have one gigawatt included in our Mature projects portfolio, with

500 megawatts categorized as Under Construction at our flagship GeoCluster Cape Station, with

commercial contracts in place and physical work underway. Additionally, we have 550 megawatts that we

categorize as Ready to Build across two different GeoClusters. These projects have already achieved key

development milestones, which have substantially derisked commercialization. We also have over 40

gigawatts in our Pipeline project portfolio, with 2.6 gigawatts categorized as under Advanced Development

and over 38 gigawatts under Early Development across ten GeoClusters. There are significant remaining

opportunities for development in our Prospects portfolio that spans the 595,900 acres of leased acreage

currently maintained in our portfolio. We aim to pursue development on our robust pipeline at a more

accelerated pace beyond 2030. See "Prospectus Summary—Our Project Pipeline" for more information

related to our projects.

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• ***Execute Technology Roadmap and Achieve Nth-of-a-Kind Cost Structure:*** We believe our attractive

asset-level returns will continue to improve, following well-established learning curves observed across the

energy industry. By drilling deeper wells to access higher-temperature reservoirs, extending lateral lengths,

and widening wellbore diameters, we expect to achieve progressively higher power output per well.

Additional cost efficiencies will come from standardizing power generation equipment, securing multi-year

supply agreements, and capturing economies of scale across construction scopes. We believe these efforts

will reduce our costs from the current approximately $7,000/kW, already among the lowest-cost sources of

baseload power, toward our long-term target of $3,000/kW.

• ***Establish Programmatic Offtake Partnerships:*** We are pursuing multi-year, multi-gigawatt offtake

partnerships with both utilities and hyperscalers to substantially de-risk commercial development across

multiple GeoClusters. We believe that these offtake partnerships with hyperscalers – such as the 3-gigawatt

GFA – will provide us with a path to potentially capitalize on predictable, long-term demand, pricing

visibility, and opportunities for co-located, behind-the-meter development that will boost our positioning

among AI data centers.

• ***Expand Geographic Scope of Development:*** Building on our learning curves and demonstrated progress at

Project Red and Cape Station, we are codifying a repeatable playbook to expand commercial geothermal

development beyond beachhead locations in the western United States and into other power markets where

high wholesale power prices, particularly for baseload generation, present attractive growth opportunities.

Over time, we intend to deploy our EGS technology outside of the United States, prioritizing jurisdictions

with clear decarbonization mandates, supportive regulatory frameworks, and subsurface conditions

favorable to EGS development. We intend to advance this expansion through strategic partnerships and

targeted pilot projects to validate performance, adapt to local market requirements, and establish a

repeatable model for international scaling.

• ***Pursue Complementary Verticals:*** We believe we are well positioned to leverage our proven approach to

enter adjacent markets, including energy storage, industrial process heat, and district heating. We are one of

the leaders in innovation for subsurface energy storage through our tested and patented approach,

FervoFlex. Our ability to monetize both power and heat, moreover, distinguishes us from other power

providers. By unlocking new customer segments, we believe we will be able to meet the evolving needs of

industrial, commercial, municipal, and operating company energy buyers.

**Recent Developments**

***Preliminary Financial and Operating Results for the Three Months Ended March 31, 2026 (Unaudited)***

Set forth below are selected preliminary consolidated unaudited financial and operating results for the three

months ended March 31, 2026. Our consolidated financial results for the three months ended March 31, 2026 are not

yet available. The following information reflects our preliminary estimates with respect to the results for the three

months ended March 31, 2026, which are based on currently available information and are subject to change. We

have provided ranges, rather than specific amounts, for the preliminary results described below primarily because

our financial closing procedures for the three months ended March 31, 2026 are not yet complete and, as a result,

our final results upon completion of our closing procedures may vary from the preliminary estimates. These

estimates should not be viewed as a substitute for interim financial statements prepared in accordance with GAAP.

This selected preliminary consolidated financial data has been prepared by, and is the responsibility of, our

management. Deloitte & Touche LLP has not audited, reviewed, compiled or performed any procedures with respect

to this preliminary consolidated financial data. Accordingly, Deloitte & Touche LLP does not express an opinion or

any other form of assurance with respect thereto.

For the three months ended March 31, 2026, we estimate revenues to be between $ and $, as

compared to revenues of $ for the three months ended March 31, 2025. Revenue in both periods relates

primarily to ancillary fees associated with rights to geothermal production at Project Red. This type of revenue is not

expected to be significant to our long-term revenue generation, as we have not yet commenced large-scale

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commercial operations. Additionally, for the three months ended March 31, 2026, we estimate net loss to be

between $ and $, as compared to net loss of $ for the three months ended March 31, 2025.

As of March 31, 2026, we estimate cash and cash equivalents to be between $ and $,as compared to

cash and cash equivalents of $461.8 million as of December 31, 2025. As of March 31, 2026, we estimate long-term

debt to be between $ and $ as compared to total principal due for long-term debt of $175.6 million as of

December 31, 2025.

***Preliminary Capital Expenditure and Construction Update***

For the three months ended March 31, 2026, we estimate capital expenditures to be between $ and

$, as compared to capital expenditures of $ for the three months ended March 31, 2025. Capital

expenditures during the period were primarily directed toward continued construction of our Cape Station project in

Utah, where we have approximately 500 megawatts of capacity under construction.

***Preliminary Contractual and Commercial Update***

As of March 31, 2026, we had 658 megawatts of binding power purchase agreements with remaining terms of

approximately 15 years, unchanged from December 31, 2025. In addition, during the three months ended March 31,

2026, we entered into a 3-gigawatt binding framework agreement with Google to advance and structure potential

power offtake opportunities for current and planned data centers in both grid-connected and alternative energy

solutions. For more information, please read "Business—Google Geothermal Framework Agreement" and "Risk

Factors—The GFA is a non-binding agreement, and does not obligate to purchase power from us."

***Cautionary Note Relating to Our Preliminary Financial and Operating Results***

The selected preliminary consolidated financial data presented above for the three months ended March 31,

2026 is preliminary, not a comprehensive statement of our financial results and is subject to completion of our

financial closing procedures. There are material limitations with making preliminary estimates of our financial and

operating results prior to the completion of our financial closing procedures and our auditors' review procedures for

such period. It is possible that we, or our independent registered public accounting firm, may identify items that

require us to make adjustments to the preliminary estimates of financial and operating results contained herein.

Our financial statements for the period ended March 31, 2026, will not be available until after this offering is

completed and, consequently, will not be available to you prior to investing in this offering. Our actual results for the

period ended March 31, 2026, may differ materially from the preliminary estimates we have provided as a result of

the completion of our financial closing procedures, final adjustments, and other developments arising between now

and the time that our financial results for such periods are finalized. Accordingly, you should not place undue

reliance upon these preliminary estimates.

***Summary Risk Factors***

There are a number of risks that you should understand before making an investment decision regarding this

offering. These risks are discussed more fully in the section titled "<u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>" following this prospectus

summary. If any of these risks actually occur, our business, financial condition, or results of operations could be

materially and adversely affected. In such case, the trading price of our Class A common stock would likely decline,

and you may lose all or part of your investment. These risks include, but are not limited to:

*Risks Related to Our Business*

• The nascent nature of our technology and the uncertainties related to its commercial viability and our

limited operating history;

• Challenges and risks associated with nearshoring supply chain operations;

• Supply chain constraints affecting project completion, costs, and timelines;

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• Operational risks disrupting energy production, increasing costs, and affecting reputation;

• Limited availability of transformers and grid infrastructure, impeding project connectivity and revenue

generation;

• Dependence on third-party transmission systems, including potential curtailments or recalls that could

prevent delivery under our PPAs;

• Risks related to securing adequate interconnection and transmission capacity to support our project pipeline

and PPA delivery obligations;

• The need to obtain site-specific well permits and state and local authorizations (beyond federal approvals

and associated NEPA reviews);

• Risks related to our contractual obligations under our PPAs;

*Risks Related to Our Industry*

• Anticipated load growth may not materialize as expected, or at all;

• The potential for geothermal well underperformance or power plant underperformance, impacting energy

output and financial performance;

• Fluctuations in market demand for geothermal energy affecting growth and financial performance;

• Intense competition from other renewable energy sources impacting growth and profitability;

• Rapid technological change in the energy sector reducing geothermal competitiveness;

• Geological uncertainties affecting project feasibility, efficiency, and success;

• Environmental concerns and opposition leading to increased costs, delays, and reputational damage;

• Volatility in energy prices impacting revenues, profitability, and market competitiveness;

*Risks Related to Our Financing* 

• The critical need to secure financing to support growth and project development;

• Potential effects of debt obligations on raising capital and cash reserves;

• Uncertainty regarding the availability and cost of non-recourse project finance, higher interest rates and

dependence on federal and state incentives;

*Risks Related to Our Legal and Regulatory Concerns*

• Our reliance on U.S. government land leases and the associated regulatory and operational risks;

• Tariffs and trade restrictions on steel and other materials, increasing costs and delaying projects;

• Lengthy and uncertain permitting processes delaying or preventing project development;

• Changes in laws, regulations or policies affecting operations, cost structure, and market opportunities;

• Legal challenges and other opposition to our projects;

• Compliance with FERC and NERC regimes, where non-compliance could result in penalties, operational

restrictions, or increased costs;

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*Risks Related to Information Technology, Cybersecurity, Data Privacy and Intellectual Property*

• Intellectual property risks impacting our competitive position, innovation, and legal costs;

• Cybersecurity and operational technology risks, including cyber-attacks or other disruptions;

*Risks Related to Financial and Accounting Matters*

• Weaknesses in internal controls over financial reporting impacting our business and the value of our

common stock;

• Material limitations with making preliminary estimates of our financial and operating results for the period

ended March 31, 2026, prior to the completion of our and our auditors' financial review procedures for

such period;

*Risks Related to Our Employees and Workforce*

• Our dependence on our senior management team and other highly technically skilled personnel and risks

related to their departure;

*Risks Related to Owning Our Common Stock*

• Concentrated control of the company by Co-Founders in a multi-class structure having an adverse impact

on the price of our common stock;

• The lack of an active, liquid, public market for our common stock and the risks inherent with a new and

uncertain offering of common stock.

Before you invest in our Class A common stock, you should carefully consider all of the information in this

prospectus, including matters set forth under the heading "<u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>."

***Implications of Being an Emerging Growth Company and Smaller Reporting Company***

We qualify as an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as

amended (the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act").

As an emerging growth company, we may take advantage of specified reduced disclosure and other requirements

that are otherwise applicable, in general, to public companies that are not emerging growth companies. These

provisions include:

• the presentation of 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 in this

prospectus;

• reduced disclosure about our executive compensation arrangement;

• no requirement to conduct non-binding stockholder advisory votes on executive compensation or golden

parachute arrangements;

• exemption from compliance with the requirement of the Public Company Accounting Oversight Board

regarding communication of critical audit matters in the auditor's report in the financial statements; and

• exemption from the auditor attestation requirement in the auditing assessment over internal control over

financial reporting.

We may take advantage of these provisions until the last day of our fiscal year following the fifth anniversary of

the date of the first sale of our common stock in this offering or such earlier time that we are no longer an emerging

growth company. We would cease to be an emerging growth company upon the earliest of: (i) the last day of the

first fiscal year in which our annual gross revenues are $1.235 billion or more; (ii) the date on which we have,

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during the previous three-year period, issued more than $1.0 billion in non-convertible debt securities; or (iii) the

date on which we are deemed to be a "large accelerated filer," which will occur as of the end of any fiscal year in

which we (x) have an aggregate market value of our common stock held by non-affiliates of $700 million or more as

of the last business day of our most recently completed second fiscal quarter, (y) have been required to file annual

and quarterly reports under the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), for a period

of at least 12 months and (z) have filed at least one annual report pursuant to the Exchange Act.

We are also a "smaller reporting company," meaning that the market value of our shares held by non-affiliates

plus the proposed aggregate amount of gross proceeds to us as a result of this offering is less than $700 million and

our annual revenue was less than $100 million during the most recently completed fiscal year. We may continue to

be a smaller reporting company after this offering if either (i) the market value of our shares held by non-affiliates is

less than $250 million or (ii) our annual revenue was less than $100 million during the most recently completed

fiscal year and the market value of our shares held by non-affiliates is less than $700 million. If we are a smaller

reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions

from certain disclosure requirements that are available to smaller reporting companies. Specifically, 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 on Form 10-K and, similar to emerging growth companies, smaller reporting companies have

reduced disclosure obligations regarding executive compensation.

We may choose to take advantage of some or all of these reduced burdens. We have elected to adopt the

reduced requirements with respect to the presentation of our financial statements and "Management's Discussion

and Analysis of Financial Condition and Results of Operations" disclosure. Further, pursuant to Section 107 of the

JOBS Act, as an emerging growth company, we have elected to take advantage of the extended transition period for

complying with new or revised accounting standards until those standards would otherwise apply to private

companies. It is possible that some investors will find our common stock less attractive as a result of these elections,

which may result in a less active trading market for our common stock and higher volatility in our stock price.

For additional information, see the section titled "Risk Factors—Risks Related to this Offering and Ownership

of Our Class A common stock—We are an "emerging growth company" and we cannot be certain if the reduced

disclosure requirements applicable to "emerging growth companies" will make our Class A common stock less

attractive to investors."

***Our Corporate Information***

Fervo Energy Company, the registrant and the issuer of the Class A common stock in this offering, was

incorporated as a Delaware corporation on May 26, 2017. Our corporate headquarters are located at 811 Main Street,

Suite 1700, Houston, TX 77002. Our telephone number is (832) 554-3253. Our principal website address is

www.fervoenergy.com. The information on, or that can be accessed through, our website is deemed not to be

incorporated in this prospectus or to be part of this prospectus. You should not consider information contained on

our website to be part of this prospectus in deciding whether to purchase shares of our Class A common stock.

We are a holding company and have no direct operations. All of our business operations are conducted through

our subsidiaries, including Fervo HoldCo LLC. Our principal asset is the equity interest in Fervo HoldCo LLC,

which, together with its subsidiaries, owns substantially all of our operating assets. As a result, we are dependent on

the ability of our subsidiaries to generate revenue and to make loans, pay dividends and make other payments to

generate the funds necessary to meet our financial obligations and to pay dividends to stockholders, if any. The

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below chart illustrates our current corporate organizational structure immediately after consummation of this

offering.

![imagea.jpg](imagea.jpg)

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**THE OFFERING**

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| Class A common stock offered by us ................ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares if the underwriters exercise their <br>option to purchase additional shares of Class A common stock <br>from us in full).<br>|
| Underwriters' option to purchase additional <br>shares of Class A common stock ...................<br>| The underwriters have an option to purchase up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>additional shares of Class A common stock from us at the initial <br>public offering price, less the underwriting discounts and <br>commissions. The underwriters can exercise this option at any <br>time within 30 days from the date of this prospectus.<br>|
| Class A common stock to be outstanding after <br>this offering ....................................................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares if the underwriters exercise their <br>option to purchase additional shares of Class A common stock in <br>full).<br>|
| Class B common stock to be outstanding after <br>this offering ....................................................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares. |
| Total Class A and Class B common stock to <br>be outstanding immediately after this <br>offering ..........................................................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares if the underwriters exercise their <br>option to purchase additional shares of Class A common stock in <br>full).<br>|
| Voting power of Class A common stock after <br>giving effect to this offering ..........................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % (or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % if the underwriters exercise their option <br>to purchase additional shares of Class A common stock in full).<br>|
| Voting power of Class B common stock after <br>giving effect to this offering ..........................<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % (or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % if the underwriters exercise their option <br>to purchase additional shares of Class A common stock in full).<br>|

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| Use of proceeds ................................................. | We estimate that we will receive net proceeds from this offering <br>of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million (or approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>million if the underwriters exercise in full their option to purchase <br>additional shares of Class A common stock), based upon an <br>assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share (which <br>is the midpoint of the price range set forth on the cover page of <br>this prospectus) and after deducting estimated underwriting <br>discounts and commissions and estimated offering expenses <br>payable by us.<br>The principal purposes of this offering are to increase our <br>capitalization and financial flexibility, create a public market for <br>our Class A common stock, and enable access to the public equity <br>markets for us and our Class A common stockholders. We intend <br>to use the net proceeds from this offering for general corporate <br>purposes, including project-level capital expenditures, continued <br>development of our GeoClusters and portfolio of land holdings, <br>working capital and operating expenses. Pending identification of <br>specific uses, our priority is capital expenditures, continued <br>development of our GeoClusters and portfolio of land holdings, <br>then working capital and operating expenses, and a significant <br>portion is not currently allocated; accordingly we cannot estimate <br>amounts for each use. We will have broad discretion in the way <br>that we use the net proceeds of this offering. If proceeds are less <br>than expected, we will prioritize working capital and operating <br>expenses. See "Use of Proceeds."<br>|

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| Voting rights ...................................................... | Upon completion of this offering, we will have two classes of <br>common stock outstanding: Class A common stock and Class B <br>common stock. The rights of the holders of our Class A common <br>stock and Class B common stock are identical, except with respect <br>to voting, conversion and transfer rights. Each share of our Class <br>A common stock is entitled to one vote per share. Each share of <br>our Class B common stock is entitled to 40 votes per share. <br>Holders of shares of our Class A common stock and Class B <br>common stock will generally vote together as a single class, <br>unless otherwise required by law or our Amended Charter that <br>becomes effective immediately prior to the completion of this <br>offering. <br>Each share of our Class B common stock is convertible into one <br>share of our Class A common stock at any time at the election of <br>the holder and will convert automatically upon any transfer, <br>except for permitted transfers, described in our Amended Charter, <br>including transfers to immediate family members (including upon <br>Mr. Latimer's or Dr. Norbeck's death), trusts (including grantor <br>retained annuity trusts) for which the stockholder or their <br>immediate family member serves as trustee, and partnerships, <br>corporations, and other entities exclusively owned by Mr. Latimer <br>or Dr. Norbeck or either of their immediate families, and upon the <br>earliest to occur of (i) the first trading day following the seventh <br>anniversary of this offering, (ii) the date on which the number of <br>shares of Class A and Class B common stock beneficially owned <br>by Mr. Latimer's and Dr. Norbeck's permitted transferees <br>(including shares underlying outstanding options) represents less <br>than 25% of the shares of Class A and Class B common stock <br>beneficially owned by Mr. Latimer and Dr. Norbeck, in the <br>aggregate, on the closing date of this offering, (iii) the death or <br>disability of a Co-Founder, and (iv) the termination of a Co-<br>Founder for cause.<br>|

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| | |
|:---|:---|
|  | Immediately following the completion of this offering, and <br>assuming no exercise of the underwriters' option to purchase <br>additional shares to cover over-allotments, if any, and assuming <br>Mr. Latimer and Dr. Norbeck do not purchase any shares of Class <br>A common stock pursuant to the reserved share program, Mr. <br>Latimer and Dr. Norbeck will beneficially own, in the aggregate, <br>approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the voting power of our outstanding <br>capital stock. As a result, we will be a "controlled company" <br>within the meaning of the corporate governance standards of the <br>NASDAQ, and although we do not intend to utilize any <br>exemptions from corporate governance standards upon <br>completion of this offering, we may utilize any or all of these <br>exemptions at our discretion until we cease to be a "controlled <br>company," and Mr. Latimer and Dr. Norbeck will have significant <br>influence over the outcome of matters submitted to our <br>stockholders for approval, including the election of our directors <br>and the approval of any change of control transaction. These risks <br>are more fully described in the section titled "Risk Factors." <br>Additional information can be found in the sections titled <br>"Management—Controlled Company Exception," "Principal <br>Stockholders" and "Description of Capital Stock.<br>|
| Dividend policy ................................................. | We have no current plans to pay dividends on our common stock <br>following this offering. Any decision to declare and pay dividends <br>in the future will be made at the sole discretion of our board of <br>directors and will depend on, among other things, our results of <br>operations, cash requirements, financial condition, contractual <br>restrictions and other factors that our board of directors may deem <br>relevant. Because we are a holding company and have no direct <br>operations, we will only be able to pay dividends from funds we <br>receive from our subsidiaries. Certain of our subsidiaries are party <br>to project-level financing arrangements that contractually restrict <br>or prioritize cash distributions before any amounts can be <br>upstreamed to us. In addition, our ability to pay dividends is <br>limited by the Credit Agreement, which contains negative <br>covenants that generally prohibit us and our subsidiaries from <br>making "Restricted Payments," including dividends and other <br>distributions, subject to only limited exceptions for certain <br>subsidiary distributions that meet specified conditions, and may <br>be limited by the agreements governing any indebtedness we or <br>our subsidiaries may incur in the future. See "<u>[Dividend Policy](#i024b9246cdc64bff8f3f6e527abc6720_2561)</u>."<br>|
| Reserved share program .................................... | At our request, an affiliate of BofA Securities, Inc., a participating <br>underwriter, has reserved for sale, at the initial public offering <br>price, up to 5% of the shares of Class A common stock to be <br>issued by us and offered by the prospectus for sale to some of our <br>directors, officers and employees and related persons. If these <br>persons purchase reserved shares it will reduce the number of <br>shares available for sale to the general public. Any reserved shares <br>that are not so purchased will be offered by the underwriters to the <br>general public on the same basis as the other shares offered by <br>this prospectus. See "Underwriting--Reserved Share Program."<br>|

---

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

---

| | |
|:---|:---|
| Risk factors ........................................................ | Investing in our Class A common stock involves risks. See "<u>[Risk](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u> <br><u>[Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>" beginning on page <u>[38](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u> and other information included in <br>this prospectus for a discussion of factors you should carefully <br>consider before deciding to invest in shares of our Class A <br>common stock.<br>|
| Proposed trading symbol ................................... | We intend to apply to list our Class A common stock on the <br>NASDAQ under the symbol "FRVO."<br>|

---

Unless otherwise stated, the total number of shares of Class A common stock and Class B common stock that

will be outstanding immediately after this offering is based on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our Class A common stock

and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class B common stock outstanding as of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, and reflects:

• the reclassification of all outstanding shares of our common stock into an equal number of shares of our

Class A common stock, which will be effected upon the filing and effectiveness of our Amended Charter,

which will occur immediately prior to the completion of this offering (the "Reclassification");

• the automatic conversion of all outstanding shares of our Series A Preferred Stock, Series B Preferred

Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock into an aggregate

of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock, which will be immediately prior to the completion of this

offering (the "Preferred Stock Conversion");

• the exchange by our Co-Founders, Tim Latimer and Jack Norbeck, PhD, of an aggregate of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of

Class A common stock for an equivalent number of shares of our Class B common stock (the "Founder

Share Exchange"), which will take place immediately prior to the completion of this offering pursuant to

the terms of an exchange agreement between us and each of Mr. Latimer and Dr. Norbeck (the "Founder

Share Exchange Agreement");

• the exercise in full of the warrants held by Centaurus Capital LP to purchase up to 3,550,329 shares

immediately prior to the completion of this offering, with the resulting preferred shares converting into

shares of Class A common stock in connection with the Preferred Stock Conversion;

• no exercise of the outstanding stock options or warrants subsequent 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; , 2026;

• no exercise by the underwriters of their option to purchase up to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares of Class A

common stock from us; and

• an initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of Class A common stock, which is the midpoint of the

price range set forth on the cover page of this prospectus.

Following the completion of this offering, and pursuant to an equity award exchange right agreement (the

"Equity Award Exchange Agreement") to be entered into between us, Mr. Latimer and Dr. Norbeck, each of our Co-

Founders will have a right to require us to exchange any shares of Class A common stock received upon the exercise

of stock options granted under our 2019 Plan and outstanding prior to the date of effectiveness of the registration

statement of which this prospectus forms a part, for an equivalent number of shares of Class B common stock. This

includes an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares underlying outstanding options held by Mr. Latimer and Dr. Norbeck. The

Equity Award Exchange Agreement does not cover any equity awards granted to Mr. Latimer and Dr. Norbeck in

connection with or following the completion of this offering.

In connection with the completion of this offering, we will cease granting awards under the 2019 Plan. Our

2026 Plan and ESPP also provide for automatic annual increases in the number of shares reserved thereunder, which

are not reflected in the numbers above. See the section titled "Executive and Director Compensation—Equity

Incentive Award Plans" for additional information.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

Unless otherwise stated, the total number of shares of Class A common stock and Class B common stock that

will be outstanding immediately after this offering, and after giving effect to the Preferred Stock Conversion, the

Founder Share Exchange and the Reclassification, excludes:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock issuable upon exercise of stock options outstanding as 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; , 2026 under our 2019 Plan, with a weighted average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock and Class B common stock reserved for future issuance under our

equity compensation plans, consisting of:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Class A common stock and Class B common stock reserved for future issuance under

the 2026 Plan, which will become effective in connection with this offering, as well as any automatic

increases in the number of shares of Class A common stock and Class B common stock reserved for

future issuance under the 2026 Plan; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Class A common stock reserved for future issuance under the ESPP, which will

become effective in connection with this offering, as well as any automatic increases in the number of

shares of Class A common stock reserved for future issuance under the ESPP.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA**

The following tables present the summary consolidated financial and other data for Fervo Energy and its

subsidiaries. We have derived the summary Consolidated Statements of Operations data for the years ended

December 31, 2025 and 2024 and the summary Consolidated Balance Sheet data as of December 31, 2025 from our

audited consolidated financial statements and the related notes thereto included elsewhere in this prospectus. You

should read this data together with our consolidated financial statements and related notes thereto included

elsewhere in this prospectus and the section titled "<u>[Management's Discussion and Analysis of Financial Condition](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u> 

<u>[and Results of Operations](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u>." Our historical results for any prior period are not necessarily indicative of the results

that may be expected in the future.

---

| | | |
|:---|:---|:---|
| (Dollars and shares in thousands except per share amounts) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Dollars and shares in thousands except per share amounts) | **2025** | **2024** |
| **Consolidated Statements of Operations** |  |  |
| Revenues ................................................................................................................... | $138 | $199 |
| Costs and expenses: |  |  |
| Operation and maintenance ................................................................................. | 388 | 380 |
| Research and development income, net ................................................................ | (133) | (97) |
| General and administrative expenses ................................................................... | 38718 | 34735 |
| Operating lease expenses ..................................................................................... | 9681 | 6895 |
| Depreciation and amortization .............................................................................. | 290 | 124 |
| Operating loss ................................................................................................. | (48806) | (41838) |
| Other income (expense): |  |  |
| Interest income ..................................................................................................... | 4192 | 1787 |
| Interest expense .................................................................................................... | (8406) | (766) |
| Other non-operating expense ................................................................................ | (4767) | (237) |
| Loss before income taxes ........................................................................................ | (57787) | (41054) |
| Income tax expense ............................................................................................... | (1) | (56) |
| Net loss ..................................................................................................................... | $(57788) | $(41110) |
| Net loss .................................................................................................................... | $(57788) | $(41110) |
| Less: Remeasurement of redeemable noncontrolling interest ............................... | (12727) |  |
| Net loss attributable to common shares, basic and diluted ................................... | (70515) | (41110) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares, basic and diluted ............................................................ | 12462 | 12438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss per share attributable to common stockholders, basic and diluted ........ | (5.66) | (3.31) |
| Weighted-average shares used in computing adjusted net income per share, basic <br>and diluted ..............................................................................................................<br>|  |  |
| Adjusted net loss per share, basic and diluted<sup>(1)</sup> ................................................... |  |  |
| **Consolidated Statements of Cash Flows** |  |  |
| Net cash used in operating activities ........................................................................ | $(31757) | $(54748) |
| Net cash used in investing activities ......................................................................... | (465659) | (178693) |
| Net cash provided by financing activities ................................................................. | $765824 | $403754 |

---

_______________

(1)The adjusted net income (loss) per share, basic and diluted, gives effect to the Preferred Stock Conversion, as if the Preferred Stock

Conversion had occurred on January 1, 2024 resulting in 279,995,218 additional shares of Class A common stock.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| (Dollars in thousands) | **Actual** | **As Adjusted** <sup>(1)</sup> | **As Further** <br>**Adjusted** <sup>(2)(3)</sup><br>|
| **Consolidated Balance Sheets** |  |  |  |
| **ASSETS** |  |  |  |
| Current assets: |  |  |  |
| Cash and cash equivalents ........................................................ | $461836 | $— | $— |
| Grant receivables ...................................................................... | 10580 |  |  |
| Prepaid expenses and other ...................................................... | 9714 |  |  |
| Total current assets .............................................................. | 482130 |  |  |
| Deposits .................................................................................... | 15234 |  |  |
| Construction-in-process ............................................................ | 789571 |  |  |
| Operating leases right of use assets .......................................... | 58713 |  |  |
| Restricted cash .......................................................................... | 6000 |  |  |
| Other long-term assets ............................................................... | 13520 |  |  |
| Total assets ........................................................................... | $1365168 | $— | $— |
| **LIABILITIES AND EQUITY** |  |  |  |
| Current liabilities: |  |  |  |
| Accounts payable ......................................................................... | $10789 | $— | $— |
| Accrued capital expenditures ........................................................ | 119303 |  |  |
| Operating lease liabilities ............................................................ | 4822 |  |  |
| Other current liabilities ............................................................... | 16997 |  |  |
| Total current liabilities ........................................................... | 151911 |  |  |
| Long-term debt, net of issuance costs ....................................... | 172837 |  |  |
| Operating lease liabilities ......................................................... | 72639 |  |  |
| Other long-term liabilities ........................................................ | 11407 |  |  |
| Total liabilities ..................................................................... | 408794 |  |  |
| Commitments and Contingencies (Note 21) ............................. |  |  |  |
| Redeemable convertible preferred stock |  |  |  |
| Redeemable convertible preferred stock, par value $0.0001 <br>per share; 283,546 and 223,458 authorized; 279,995 and <br>223,458 issued and outstanding as of December 31, 2025 <br>and 2024, respectively ..........................................................<br>| 1022942 |  |  |
| Redeemable noncontrolling interest |  |  |  |
| Cape Phase I HoldCo - Redeemable noncontrolling interest | 102586 |  |  |
| Cape Phase I Intermediate HoldCo - Redeemable <br>noncontrolling interest ...........................................................<br>| 77344 |  |  |
| Stockholders' deficit: |  |  |  |
| Common stock, par value $0.0001 per share; 358,279 and <br>280,000 authorized; 13,146 and 12,470 issued and <br>outstanding as of December 31, 2025 and 2024, <br>respectively ...........................................................................<br>| 1 |  |  |
| Additional paid-in capital ......................................................... |  |  |  |
| Treasury stock, at cost; 375 and 0 shares as of December 31, <br>2025 and 2024, respectively .................................................<br>| (1960) |  |  |
| Accumulated deficit .................................................................. | (244539) |  |  |
| Total stockholders' deficit ...................................................... | (246498) |  |  |

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<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| (Dollars in thousands) | **Actual** | **As Adjusted** <sup>(1)</sup> | **As Further** <br>**Adjusted** <sup>(2)(3)</sup><br>|
| Total liabilities, redeemable convertible preferred stock, <br>redeemable noncontrolling interests and stockholders' <br>deficit ....................................................................................<br>| $1365168 | $— | $— |

---

______________

(1)The as adjusted consolidated balance sheet data as of December 31, 2025 presents our consolidated balance sheet data to give effect to

(i) the Preferred Stock Conversion, as if the Preferred Stock Conversion had occurred on December 31, 2025, (ii) the Reclassification,

(iii) the Founder Share Exchange and (iv) the filing and effectiveness of our Amended Charter.

(2)The as further adjusted consolidated balance sheet data reflects the items described in footnote (1) above and gives effect to our receipt

of estimated net proceeds from the sale of shares of Class A common stock that we are offering by this prospectus at an assumed

initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the price range on the cover page of this prospectus, after

deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. A $1.00 increase

(decrease) in the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share would increase (decrease) each of current assets, total assets

and total stockholders' equity by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, assuming that the number of shares offered by us, as set forth on the cover page of

this prospectus, remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering

expenses payable by us.

(3)The as further adjusted data discussed above is illustrative only and will be adjusted based on the actual initial public offering price

and other terms of our initial public offering determined at pricing.

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**MARKET AND INDUSTRY DATA**

This prospectus contains estimates, projections and information concerning our industry, our business and the

market size and growth rates of the markets in which we participate. Some data and statistical and other information

are based on independent reports from third parties, as well as industry and general publications and research,

surveys and studies conducted by third parties which we have not independently verified. Some data and statistical

and other information are based on internal estimates and calculations that are derived from publicly available

information, research we conducted, internal surveys, our management's knowledge of our industry and their

assumptions based on such information and knowledge, which we believe to be reasonable.

In each case, this information and data involves a number of assumptions and limitations, and you are cautioned

not to give undue weight to such information, estimates or projections. Industry publications and other reports we

have obtained from independent parties may state that the data contained in these publications or other reports have

been obtained in good faith or from sources considered to be reliable, but they do not guarantee the accuracy or

completeness of such data. In addition, projections, assumptions and estimates of the future performance of the

industry in which we operate and our future performance are necessarily subject to a high degree of uncertainty and

risk due to a variety of factors, including those described in "<u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>" and "<u>[Cautionary Note Regarding](#i024b9246cdc64bff8f3f6e527abc6720_2539)</u> 

<u>[Forward-Looking Statements](#i024b9246cdc64bff8f3f6e527abc6720_2539)</u>." These and other factors could cause our future performance to differ materially from

the assumptions and estimates made by third parties and us.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**ESTIMATES OF CAPACITY POTENTIAL**

We present in this prospectus certain estimates of capacity potential (represented as megawatts or gigawatts).

These estimates are based on the underlying geothermal resource potential of our sites, as represented by a measure

of thermal energy we refer to as heat initially in place ("HIIP"), the estimated electrical power capacity into which

such HIIP may be converted, and the thermal recovery factor of this thermal energy. HIIP is the total thermal energy

estimated to be contained in place within the rock and pore fluid in a defined subsurface volume as of a given date,

before accounting for any recovery of heat to the wellhead or conversion to electricity. To produce estimates of

capacity potential, a thermal recovery factor is applied to the HIIP estimates.

For Cape Station, an independent engineering consulting firm, DeGolyer and MacNaughton ("D&M"), prepared

HIIP estimates using geologic, thermal, and geomechanical models and probabilistic methods, as described further

in its report dated June 30, 2024 thereon included as an exhibit to the registration statement of which this prospectus

forms a part. To produce our estimate of capacity potential, we further adjust the HIIP estimates by applying a

thermal recovery factor. We assume a thermal recovery factor of 30.5%, which is estimated using a variety of

methods, including computational reservoir simulation, decline curve analysis, case studies from reservoir analogs,

and literature review. The applied thermal recovery factor reflects the portion of HIIP we believe can be practically

extracted to the wellhead and converted to electricity over the assumed project life. In determining this factor, we

consider reservoir temperature and thickness, fracture surface area and connectivity achieved through stimulation,

expected sustainable flow rates and pressure management, thermal drawdown over time, operating constraints

(including induced seismicity, water balance, and reinjection), and surface conversion efficiency (including ORC

performance and parasitic loads). We believe the resulting recovery factor is reasonable because it is grounded in

engineering judgment informed by our empirical data (including results from Project Red), field-calibrated geologic,

thermal, and geomechanical models at Cape Station, and sensitivity analyses across well spacing, flow, and

temperature assumptions. This approach is consistent with practices used in analogous resource assessments in other

industries and incorporates conservative assumptions intended to reflect long-term sustainable operations rather than

peak or short-duration output.

For the nine GeoClusters reviewed subsequent to Cape Station, which include Corsac, Blanford, Marble, Kit,

Star, Fennec, Cross, Swift and Aspen, D&M has utilized their own thermal recovery factors which are factored into

their estimates of capacity potential.

The estimates referred to above are subject to important limitations and uncertainties. All or any part of such

estimates may change as further heat production history and additional information become available. Application of

any risk factor or discount rate to HIIP should not be considered as a means of comparing such estimates to

measures of proved reserves, and you should not assume that all or any portion of the HIIP estimates will be

recovered or converted to electricity on an economic basis or at all. The quantities of heat that might actually be

recovered, and the quantities of associated produced electricity should such geothermal resources be developed, may

differ significantly from the HIIP estimates produced by D&M. For additional information regarding risks inherent

in our estimates of our geothermal resource, see "Risk Factors—Risks Related to Our Business—Our estimates of

geothermal resources and associated power capacity potential are inherently uncertain, do not consider

technological, commercial or economic viability, and should not be viewed as a measure of reserves prepared under

SEC guidelines or as a measure of estimated future production or generation capacity."

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements about us and our industry that involve substantial risks and

uncertainties. All statements other than statements of historical facts contained in this prospectus, including

statements regarding our future results of operations or financial condition, business strategy, and plans and

objectives of management for future operations may be forward-looking statements. In some cases, you can identify

forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could,"

"intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the

negative of these terms or other similar expressions. Forward-looking statements contained in this prospectus

include, but are not limited to statements about:

• risks related to expanding our geothermal operations and accessing new markets;

• challenges in maintaining compliance with extensive environmental regulations and permitting

requirements;

• uncertainties in forecasting future operational results and growth due to economic conditions and market

demand;

• compliance with environmental regulations and climate change initiatives impacting operational costs;

• inherent risks in the geothermal industry, including potential operational disruptions and associated

liabilities;

• the influence of consumer preferences, government policies, and competition on the demand for geothermal

energy;

• risks associated with fluctuations in energy prices and material costs;

• dependence on a complex supply chain and successful maintenance of our geothermal infrastructure;

• financial performance influenced by fluctuations in interest rates, capital availability, and other market

conditions;

• capacity actually constructed or for which we enter PPAs under non-binding agreements, like the GFA;

• exposure to legal proceedings and claims arising from our business operations;

• protecting our brand reputation and facing potential negative public perception;

• negative public perception and political opposition impacting our ability to secure regulatory approvals and

market acceptance;

• the successful and timely execution of our growth strategy, with risks of delays or failures;

• reliance on key personnel and the potential impact of labor costs and workforce challenges;

• heavy reliance on technology systems and potential cybersecurity threats;

• global economic and political conditions affecting our operations, supply chain, and customer demand;

• the risk that our estimates of capacity potential and HIIP are inaccurate or that we are unable to produce

quantities of electrical energy commensurate with such estimates; and

• other risks and uncertainties described in this prospectus, including those set forth under "Risk Factors."

We caution you that the foregoing list may not contain all of the forward-looking statements made in this

prospectus. The forward-looking statements in this prospectus are only predictions. We have based these forward-

looking statements largely on our current expectations and projections about future events and financial trends that

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

we believe may affect our business, financial condition and results of operations. Forward-looking statements

involve known and unknown risks, uncertainties and other important factors that may cause our actual results,

performance or achievements to be materially different from any future results, performance or achievements

expressed or implied by the forward-looking statements. We believe that these factors include, but are not limited to

the factors set forth under "<u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>." Because forward-looking statements are inherently subject to risks and

uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking

statements as predictions of future events. Moreover, we operate in a very competitive and rapidly changing

environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks

and uncertainties that could have an impact on the forward-looking statements contained in this prospectus. The

events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual

results could differ materially from those projected in the forward-looking statements.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant

subject. These statements are based upon information available to us as of the date of this prospectus, and while we

believe such information forms a reasonable basis for such statements, such information may be limited or

incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or

review of, all potentially available relevant information. These statements are inherently uncertain and investors are

cautioned not to unduly rely upon these statements.

The forward-looking statements made in this prospectus relate only to events as of the date on which the

statements are made. We undertake no obligation to update any forward-looking statements made in this prospectus

to reflect events or circumstances after the date of this prospectus or to reflect new information or the occurrence of

unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations

disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking

statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers,

dispositions, joint ventures or investments we may make.

You should read this prospectus and the documents that we reference in this prospectus and have filed as

exhibits to the registration statement of which this prospectus forms a part with the understanding that our actual

future results, levels of activity, performance and achievements may be materially different from what we expect.

We qualify all of our forward-looking statements by these cautionary statements.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**RISK FACTORS**

*Investing in our Class A common stock involves a high degree of risk. You should carefully consider and read* 

*the following risk factors, together with all of the other information contained in this prospectus, including the* 

*section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our* 

*consolidated financial statements and related notes thereto, before deciding to invest in our Class A common stock.* 

*The risks described below are not the only ones we face. Our business, financial condition, and/or results of* 

*operations could be materially and adversely affected by any of these risks or uncertainties, as well as by risks or* 

*uncertainties not currently known to us, or that we do not currently believe are material. In such case, the trading* 

*price of our Class A common stock could decline, and you may lose some or all of your investment.*

**Risks Related to Our Business** 

***We will require significant additional capital to construct and complete our projects, and we may not be able to*** 

***secure such financing on time with acceptable terms, or at all, which could cause delays in our construction, lead*** 

***to inadequate liquidity and increase overall costs.*** 

The capital expenditures we expect to incur as we complete the development of our future projects will be

significant, including wellfield drilling and completions for EGS reservoirs and procurement of binary, air-cooled

ORC power plants. Our standardized modular approach contemplates deployment across GeoClusters via 50-

megawatt GeoBlocks, and our estimate of capital expenditures to construct a single GeoBlock was approximately

$7,000/kW as of December 31, 2025, inclusive of wellfield, surface facilities and plant equipment. We currently

estimate capital expenditures of approximately $1.2 billion in 2026, of which approximately $125 million relates to

our Cape Station Phase I. In addition, we estimate capital expenditures of $940 million related to our Cape Station

Phase II, a majority of which remains unfunded. Although we currently hold certain federal approvals that have

already undergone National Environmental Policy Act (NEPA) review covering approximately 2 gigawatts of

capacity potential, a portion of these capital expenditures (including exploration, geophysical surveys, test and

delineation wells, stimulation, and other reservoir development activities) must be incurred before we obtain, or can

finalize, certain material permits, land use authorizations, and approvals that are outside the scope of NEPA review,

including site-specific well permits (e.g., drilling, injection and production well permits), water rights and related

authorizations, and state and local permits and approvals (such as land use, building, grading, cultural and

environmental, and air and noise permits). As of April 17, 2026, 78 out of 80 permits of the governmental permits

and approvals necessary to commence commercial operations at Cape Station Phase I have been received, and the

remaining three necessary permits are in process. Moreover, 81 out of 179 permits of the governmental permits and

approvals necessary to commence commercial operations at Cape Station Phase II have been received, and the

remaining 98 are in process. Of those in-process approvals and permits, all are individual, administrative geothermal

well permits or administrative county permits, and we do not currently expect any material delays, conditions or

denials with respect to any of these pending permits. If any such permits or approvals are delayed, impose

burdensome conditions, or are not granted, the investments we make ahead of permitting may be stranded, impaired,

or require redesign, leading to write-offs, additional costs, and schedule slippage.

We expect to fund these capital needs through a combination of sources, including, but not limited to, project-

level non-recourse debt, equity capital at the corporate or project level, government grants and incentives, customer

prepayments or prebuys under offtake arrangements, and capital markets transactions, including corporate debt and

equity-linked securities, as well as potential tax equity, tax credit sales or similar monetization of available tax

attributes. The availability, timing and terms of any such financing are uncertain and may be affected by market

conditions, regulatory developments, performance under existing offtake contracts, and the perceived bankability of

our EGS technology and project structures. Additional capital may not be available in the amounts required, or on

favorable terms. In addition, if any adverse findings are discovered at any stage during the course of our

development of our projects that would render part of, or all of, them to be unsuitable or we discover flaws that may

decrease the value of our project sites as collateral for purposes of any financing, then we may not be able to obtain

the financing necessary to construct our projects on favorable terms, or at all. Moreover, because certain debt and

tax equity providers condition funding on receipt of key permits and approvals, including federal permits and

approvals and applicable state and local permits and approvals, we may be required to finance pre-permit subsurface

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work with corporate equity or other more expensive capital, increasing our liquidity risk and overall cost of capital

even where federal approvals that underwent NEPA review are in place.

Furthermore, any adverse changes in power demand that affect the competitiveness of our projects or any

failure on our part to obtain or comply with necessary permits or approvals may also hinder our ability to obtain

necessary additional capital or financing. Although we believe current market dynamics—such as rising grid

demand from data centers and utilities, capacity shortfalls, and procurement preferences for clean, firm power—

support our EGS strategy, such dynamics could change. Delays in the construction of our projects beyond their

estimated development periods could increase the cost of completion beyond the amounts that we estimate, which

could require us to obtain additional sources of financing to fund our operations until our projects are fully

completed (which could cause further delays). Moreover, many factors (including factors beyond our control) could

result in a disparity between liquidity sources and cash needs, including factors such as construction delays, cost

overruns, underperformance of drilling, completions or ORC turbines, supply chain disruptions or breaches of

agreements. If, after incurring substantial expenditures, we are unable to obtain required permits or must materially

redesign projects to satisfy permitting conditions, we could face further delays, cost overruns, impairments of

capitalized costs, and the need to raise additional funds on unfavorable terms. This risk persists notwithstanding our

federal approvals that underwent NEPA review for approximately 2 gigawatts of capacity potential, because those

approvals do not replace or guarantee issuance of required well permits or state and local authorizations.

Our ability to obtain financing that may be needed to provide additional funding will depend, in part, on factors

beyond our control and there can be no assurances that funding will be available to us on commercial terms or at all.

For example, capital providers or their applicable regulators may elect to cease funding geothermal projects or

certain related businesses. Accordingly, we may not be able to obtain financing on terms that are acceptable to us, or

at all. Even if we are able to obtain financing, we may have to accept terms that are disadvantageous to us or that

may have an adverse impact on our business plan and the viability of the relevant project. The failure to obtain any

necessary additional funding could cause any or all of our projects to be delayed or not be completed, including our

modular deployments within GeoClusters such as Cape Station. Any delays in construction could prevent us from

commencing operations when we anticipate and could prevent us from realizing anticipated cash flows, all of which

could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow,

financing requirements, liquidity, prospects and the price of our Class A common stock. The need to deploy material

capital before securing key permits or approvals exacerbates these risks and could magnify adverse effects on our

liquidity and project timelines if permitting outcomes are unfavorable. In particular, if we are delayed in obtaining

federal permits and approvals or state and local approvals necessary for drilling, completions, surface facilities and

plant construction, we may be unable to commence or continue planned work even where federal NEPA reviews

have been completed, which could materially increase costs and delay schedules.

***Our EGS technology is still in early stages of deployment and operations, and we may be unable to improve upon*** 

***such EGS technology to meet our business goals.***

There is limited commercial operating experience for EGS of the type, configuration, and scale we have

pioneered, particularly compared to that of the existing traditional geothermal industry. To date, we have completed

Project Red and have 500 megawatts at Cape Station under construction. Project Red was a limited-scope, proof-of-

concept initiative designed to demonstrate certain technical capabilities rather than a commercial-scale development.

By contrast, Cape Station represents our first meaningful attempt to deploy our modules at commercial scale. Cape

Station is not yet complete and, based on our current schedule, is not expected to have the first approximately 100

megawatts fully constructed, commissioned, and operational until early 2027. As a result, we have not yet

demonstrated an ability to deliver consistent, reliable, and economic performance at scale, and our business,

financial condition, and results of operations could be adversely affected if we experience delays, cost overruns,

resource underperformance, operational failures, or other challenges in constructing, commissioning, and operating

Cape Station Phase I or any subsequent commercial-scale project.

While our wellfields, drilling operations, and power plants have been and will be actively managed through

design reviews, prototyping, testing, involvement of external partners with subject matter expertise, and application

of approaches utilized in the operation of Project Red and in the construction of Cape Station, we could still fail to

identify latent design, manufacturing, construction, and operations issues early enough to avoid negative effects on

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production, fabrication, construction, or ultimate performance of power plant and related technologies. In addition,

our wellfields, drilling operations, and power plants in their early stages may underperform due to operational

uncertainties as well as engineering or operational limitations beyond our control, any of which could materially and

adversely affect our business.

Moreover, the cost and time associated with the construction and maintenance of our wellfields, drilling

operations, and power plants may be greater than we expect because of a lack of a labor force with relevant

commercial experience and a shallow and otherwise immature supply chain for these types of geothermal systems.

Where these issues may arise at later stages of deployment, deployment could be subject to greater costs or be

significantly delayed, which could permit our counterparties to terminate their PPAs and otherwise materially and

adversely affect our business.

Prospective offtakers, including utilities and commercial and industrial customers, may also find it more

difficult, costly, and time-consuming to evaluate EGS projects and to make contracting decisions given the limited

commercial operating history of our systems. This could lead to longer sales cycles and additional requirements such

as extended diligence, demonstration periods, more stringent performance guarantees, higher collateral or credit

support, and tighter allocation of resource and availability risk. These factors could increase bid and contracting

costs, constrain pricing or other commercial terms relative to incumbent technologies, and delay revenue recognition

or milestones under PPAs and related electricity sales arrangements.

Similarly, the availability, timing, and terms of project and corporate financing may be adversely affected until

we establish a longer operating track record and material cash flows from commercial-scale plants. Lenders, tax

equity investors, and other financing sources may require higher return thresholds, lower advance rates, additional

reserves, and more comprehensive completion support or guarantees. We may therefore face a higher cost of capital

and more limited access to non-recourse financing for initial projects, which could necessitate greater reliance on

corporate capital, equity financing, or government-supported programs. Any inability to obtain financing on

acceptable terms, or delays in securing such financing, could postpone project starts or completions and negatively

impact our business, financial condition, and results of operations.

In addition, our business plan anticipates that our drilling operations will drill to greater depth and temperatures,

and makes assumptions with respect to learnings, efficiencies and regulatory approvals as a result of this concurrent

development approach. If such assumptions regarding concurrent development at greater depths and temperatures

are not accurate, we may be unable to successfully introduce, market, and sell these configurations of our power

plants in a timely and cost-effective manner, and properly position and/or price our products, our business, results of

operations, or financial position could be materially impacted.

The lack of experience for the EGS systems we employ creates risks that cost and timeline estimates may be

inaccurate and the lack of domestic commercial experience in terms of labor and supply chain and other factors may

result in greater than expected construction cost, deployment timelines, maintenance requirements, differing power

output and greater operating expense. Even as we standardize GeoBlock designs and capture learning curves,

subsurface geology and engineered reservoir performance can vary, and early-stage EGS operational data, while

growing, remains limited relative to historically available geothermal operating data.

***We rely on power transmission facilities that we do not own or control.*** 

We depend on transmission facilities owned and operated by others to deliver the power we sell from our power

plants to our customers. If transmission is disrupted, or if the transmission capacity infrastructure is inadequate, or if

there is a failure that requires long shutdown for repair, or if curtailment is required due to load system inefficiency,

our ability to sell and deliver power to our customers may be adversely impacted and we may either incur additional

costs or forego revenues. For example, if a transmission provider curtails our facility or recalls our transmission

rights, we could experience prolonged or repeated outages, face liquidated damages or termination under our PPAs,

face damages under tax credit sales agreements, and face potential defaults under financing arrangements. In

addition, lack of access to new transmission capacity may affect our ability to develop new projects. Existing

congestion of transmission capacity, as well as expansion of transmission systems and competition from other

developers seeking access to expanded systems, could also affect our performance. Although our modular

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GeoCluster approach may offer interconnection optionality at multi-gigawatt sites, new transmission remains

uncertain, and behind-the-meter opportunities with data centers may not be available or sufficient to offset

transmission constraints.

The successful development of our project pipeline depends on our ability to obtain sufficient interconnection

and transmission capacity to support delivery obligations under our PPAs. For example, for Cape Station Phase II,

we currently have approximately 290 megawatts of interconnection and transmission rights. This capacity is

sufficient to meet the obligations under our original PPAs with Southern California Edison (SCE) and Clean Power

Alliance (CPA), but is insufficient to support the full 384 megawatts of combined contracted capacity with the

subsequent expansions of the SCE and CPA PPAs. If we are unable to secure additional interconnection and

transmission capacity or alternative delivery arrangements on a timely basis or at all, our original PPAs would

remain in effect; however, we may be unable to deliver the additional megawatts of contracted capacity, which could

result in reduced revenues, payment of liquidated damages, contract modifications or terminations, or other adverse

effects on our business and financial condition.

***We have only a limited track record and historical financial information, and there is no assurance that our*** 

***business will be successful over the long term.*** 

Prior to February 2017, we conducted no business operations and we recorded no revenue or expenses. During

the years ended December 31, 2025 and 2024, we reported net losses of $54.6 million and $41.1 million,

respectively.

Our activities to date have included organizational efforts related to the development and construction of our

projects and related assets, including but not limited to:

• Raising capital;

• Securing options to lease and leasing our project sites within large, contiguous EGS development hubs that

we refer to as GeoClusters;

• Negotiating and planning with various contractors for the development and production of such sites;

• Negotiating PPAs with offtakers, including investment-grade utilities and hyperscalers seeking clean, firm

24/7 power;

• Negotiating and entering into construction contracts with construction contractors;

• Negotiating and entering into procurement contracts with equipment suppliers for standardized, modular

ORC units and drilling services;

• Procuring transmission and interconnection rights; and

• Engaging in development and construction activities at Project Red and Cape Station, and retaining

contractors for such work, including geotechnical, drilling, completions and surface, power plant and

electrical equipment construction.

We have plans for rapid continued growth, with 500 megawatts under construction and a significant number of

additional megawatts in the pipeline for planned construction. Our future growth will be impacted by, among other

things: adverse macroeconomic conditions, including the rate of growth of U.S. electricity demand; changing

interest rates; our ability to develop our wellfields and power plants, market acceptance of our technology, including

our EGS systems, our ability to meet demand for funding; sales of power pursuant to our PPAs; increasing

competition; credit market volatility; increasing regulatory costs and challenges; prices of construction of projects;

and our failure to capitalize on growth opportunities.

Further, as we execute these growth plans, we expect our operating expenses to significantly increase as we

make significant investments, expand our operations and infrastructure, develop and introduce new technologies and

hire additional personnel. These efforts may be more costly than we expect and may not result in revenue growth or

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increased efficiency. When we become a public company, we will incur additional significant legal, accounting, and

other expenses that we did not incur as a private company. We believe that we will continue to incur net losses for

the next several years and we may not achieve or maintain profitability in the future, either on the timetable we

expect or at all. Because the markets in which we operate are evolving, it is difficult for us to predict our future

results of operations or the limits of our market opportunity.

Our limited operating history may limit your ability and the ability of counterparties and potential financing

sources, among others, to evaluate our prospects because our limited financial data, our unproven ability to maintain

or increase our profitability and our limited experience in addressing issues that may affect our ability to manage the

construction, operation or maintenance of enhanced geothermal facilities and related assets. We face all of the risks

commonly encountered by other growing businesses, including competition and the need for additional capital and

personnel. As a result, any assessment you, our counterparties or potential financing sources make about our current

business and any predictions you, our counterparties or potential financing sources make about our future success or

viability may not be accurate. There is no assurance that our business will be successful over the long term.

***Our financial performance depends on the successful operation of our geothermal power plants, which is subject*** 

***to various operational risks.*** 

Our financial performance depends on the successful operation of our geothermal power plants. In connection

with such operations, we anticipate we will derive substantially all of our total revenues for the year ended

December 31, 2026 from the sale of electricity. Following commissioning of our power plants, we plan to manage,

operate, and maintain such power plants in-house through our subsidiaries. We are in the process of building out our

team to manage and operate the power plants, and as a result we will be exposed to various operational risks as we

expand that team and bring power plants online. The cost of operation and maintenance and the operating

performance of our geothermal power plants may be adversely affected by a variety of factors, including:

• our limited track record with managing and operating our own power plants;

• our power plants performing below expected levels of efficiency or capacity or required changes to

specifications for continued operations;

• regular and unexpected maintenance and replacement expenditures;

• breakdowns or failures of equipment or shortages or delays in the delivery of power;

• risks related to operational errors or failures of operators and service providers used in our operations;

• our potential inability to recruit and retain key personnel to successfully manage and operate the power

plants;

• a lack of adequate and qualified personnel to crew and operate the power plants;

• potential labor shortages, work stoppages, or labor disputes;

• the presence of hazardous substances on our geothermal power plant sites and releases of hazardous

substances into the environment;

• transmission expenses and complications;

• continued availability of water supply or costs associated with procurement;

• catastrophic events such as fires, explosions, earthquakes, volcanic activity, landslides, floods, severe

weather storms, or other weather events (including weather conditions associated with climate change) or

similar occurrences affecting our power plants or any of the power purchases or other third parties

providing services to our power plants;

• availability of supporting infrastructure, such as roads and other civil infrastructure;

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• the aging of power plants and ORC turbines (which may reduce their availability and increase the cost of

their maintenance);

• the inability to secure or sustain sufficient geothermal heat flow from production wells due to engineered

reservoir underperformance, thermal drawdown, scaling or injection/production imbalances;

• decreases in heat-in-place, reservoir temperature, or sustainable flow rates over time, including as a result

of thermal drawdown, changes in fracture conductivity or short-circuiting, permeability loss, scaling, or

lower-than-expected recovery factors;

• the inability to augment, remediate, or replace existing wells to maintain production, whether due to

prohibitive costs or otherwise (including limits on refracturing, sidetracking, installing liners or artificial

lift, increasing injection pressures, drilling make-up wells, supply chain availability, regulatory or

permitting constraints, or water constraints);

• cyber-attacks that may interrupt the operation of our power plants; and

• potential changes to laws or rules which may affect our ability to meet existing contract energy delivery

requirements.

Any of these events could significantly increase the expense of operating our power plants or could reduce the

overall effectiveness of the generating capacity of our power plants, which in turn would reduce our net income and

could materially and adversely affect our business, financial condition, future results and cash flows.

***We have a history of losses, we anticipate increasing operating expenses in the future, and we may not be able to*** 

***achieve and, if achieved, maintain profitability.***

We have experienced losses in each year since our founding. During the years ended December 31, 2025 and

2024, we reported net losses of $54.6 million and $41.1 million, respectively. We believe that we will continue to

incur net losses for the next several years and we may not achieve or maintain profitability in the future, either on

the timetable we expect or at all. Because the markets in which we operate are evolving, it is difficult for us to

predict our future results of operations or the limits of our market opportunity.

We expect our capital and operating expenditures to significantly increase as we make significant investments,

expand our operations and infrastructure, develop and introduce new technologies and hire additional personnel.

These efforts may be more costly than we expect and may not result in revenue growth or increased efficiency.

When we become a public company, we will incur additional significant legal, accounting, and other expenses that

we did not incur as a private company.

Our ability to be profitable and generate positive operating cash flows is primarily dependent on our ability to

generate revenues, and in turn net profits and operating cash flows, after COD occurs for a given project, through the

sale of electricity pursuant to our PPAs that are effective after their respective COD, as well as our ability to

monetize our tax credits and our other assets, including any intellectual property, data, or advisory arrangements that

may be pursued in the ordinary course.

Our ability to generate sales of electricity following COD at each of our projects depends on our ability to

successfully commence and maintain production under our PPAs. We expect to begin delivering first power from

our 500-megawatt Cape Station project by late 2026, and to reach approximately 100 megawatts of operating

capacity by early 2027. However, there is no guarantee that we will achieve such CODs within those timeframes or

at all. We may fail to receive the required approvals and permits from governmental and regulatory agencies for our

projects. As a result, there can be no assurance as to when we will commence deliveries under our PPAs, and

therefore when, if at all, we will commence generating revenues and operating cash flows from our PPAs. If we do

not commence operations under our PPA on Cape Station Phase I (Unit 1) by October 1, 2026, Cape Station Phase I

(Units 2-3) by January 1, 2027, and Cape Station Phase II by June 1, 2028, we will incur liquidated damages under

the provisions of the applicable PPA. If we do not commence operations within six months of the applicable PPA

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COD deadline, our counterparty has the right to terminate the contract. Accordingly, there is significant uncertainty

about our ability to maintain profitability and operating cash flows.

Further, if our wells are not as productive as expected, we may have to drill additional wells, driving up capital

expenditures and potentially making our projects unprofitable. Because our EGS deployment relies on horizontal

drilling and multistage stimulation to create engineered reservoirs, deviations from expected reservoir performance

could also impact production profiles and power output from otherwise standardized GeoBlocks.

If our revenue does not increase sufficient to offset the expected increases in our operating expenses, we will

not be profitable in future periods. Any of the foregoing could have a material adverse effect on us. We cannot

assure you that we will ever achieve or sustain profitability and may continue to incur significant losses going

forward, which could cause the value of our Class A common stock to decline. Moreover, even if we achieve

targeted cost reductions over time through EGS learning curves and standardized ORC deployments, we may not be

able to outcompete other suppliers of electricity.

***Our business relies on projects with extended timelines and failure to realize these projects may adversely impact*** 

***our business.*** 

Our business and revenues rely on projects with extended and estimated timelines. However, our reliance on

events in the distant future subjects us to significant risk of changes in the economic environment, regulatory

environment, competitive landscape and technological advances. In particular, we may encounter unanticipated

delays in the scheduled commencement date or completion of Cape Station or other projects, including due to our

inability to secure funding, inability to obtain or delays in obtaining permits, licenses and other regulatory approvals

(including due to legal challenges or other opposition relating to environmental permits), manufacturing delays and

launch delays, as well as delays due to weather and supply chain disruptions.

If the development and launch of Cape Station (or its components) is not as successful as anticipated or if we

fail to realize all or some of the benefits within the anticipated timeframe, including phased GeoBlock deployment,

we may accrue additional costs, fail to gain expected cost savings, fail to recognize additional revenue, become

unable to meet our financial objectives, provide a basis for contract termination or renegotiation or otherwise

negatively impact customer and employee experience and fail to grow or grow as quickly or compete as effectively

as we currently anticipate. In addition, given the large amount of time, we may be unable to adequately prepare for

additional risks of which we may not currently be aware and the risks of which we are aware may be heightened.

Failure to meet these timelines or delays in operation of Cape Station and other projects may adversely affect us.

***We rely on a limited number of suppliers for certain materials and supplied components, some of which are*** 

***highly specialized. We and our third-party vendors may not be able to obtain sufficient materials or supplied*** 

***components to meet our manufacturing and operating needs or obtain such materials on favorable terms*** 

***including price. Additionally, certain components may only be available from international suppliers.*** 

Our operations depend on a reliable supply chain for critical components, such as geothermal turbines, heat

exchangers, and control systems, which are primarily sourced from third-party suppliers like Turboden, Baker

Hughes and other specialized manufacturers. Although we have placed orders for critical components of Phase II of

Cape Station, there is no guarantee that such components will arrive in the timeline expected or at all. If we are

unable to secure replacements for such critical components, or if the timing of Phase II of Cape Station is impacted

by the delay of such critical components such that we are unable to deliver power within the timeframe

contemplated by the applicable PPA, our business may be materially and adversely impacted. For more information,

please read "Risk Factors—Our customers or we may terminate our PPAs if certain conditions are not met or for

other reasons." Disruptions in manufacturing, transportation, or global trade—whether due to natural disasters,

geopolitical tensions, global trade wars, tariffs, labor strikes, or pandemics—could delay the delivery of these

components, impacting our ability to complete projects, including Phase II of Cape Station, as planned and meet

contractual obligations.

Transformers and related grid equipment are critical for interconnecting our GeoBlocks. Persistent supply chain

constraints, extended lead times, or increased demand from other sectors could delay our ability to bring new

GeoBlocks online, increasing costs and reducing revenue. The procurement process for grid infrastructure also

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involves utility coordination and multi-party approvals, adding complexity and potential bottlenecks. Although our

GeoCluster model can enable interconnection optionality, including phased interconnections or behind-the-meter

options, such options may not be available or sufficient to offset broader grid equipment shortages.

Prolonged supply chain issues could lead to increased costs, missed deadlines, and loss of revenue, as well as

damage to our reputation with customers, partners, and regulators. In addition, supply chain disruptions may force us

to seek alternative suppliers or redesign project specifications, potentially incurring additional expenses and

technical risks. Having to switch suppliers could also cause material delays in construction and operations, for

example, regarding wellhead supply. Moreover, we are dependent on future supplier capability to meet production

demands attendant to our forecasts. While we maintain strong relationships with suppliers and seek to diversify our

sourcing strategies, the complexity and global nature of our supply chain present ongoing risks that could adversely

affect our business operations and financial performance. Even where we secure multi-year ORC procurement

arrangements or drilling services, broader market constraints could limit near-term deliverability.

Additionally, the imposition of sanctions, tariffs, or material changes in import and export requirements on a

nation-by-nation basis, on materials or supplied components for our power plants could have a material adverse

effect on our operations. Prolonged disruptions in the supply of any of our key materials or components, difficulty

qualifying new sources of supply, implementing use of replacement materials or new sources of supply or any

volatility in prices could have a material adverse effect on our ability to operate in a cost-efficient, timely manner.

Such prolonged disruptions could also cause us to experience cancellations or delays of scheduled launches,

customer cancellations or reductions in our prices and margins, any of which could harm our business, financial

condition, results of operations and cash flows. Our reliance on a domestic supply chain for drilling services and

ORC equipment remains subject to capacity, even as we seek to partner with established service providers and

turbine manufacturers.

***Concentration of customers, specific projects and regions may expose us to heightened financial exposure.*** 

Our business model currently relies on customers purchasing all or a significant portion of a facility's output

under long-term PPAs. The financial performance of these facilities depends on the ability of each customer to

perform its obligations under those PPAs. A facility's financial results could be materially and adversely affected if

any of our customers fail to fulfill their contractual obligations and we are unable to obtain the same prices or terms

we currently receive with new customers. We cannot assure that such performance failures by our customers will not

occur, or that if they do occur, such failures will not adversely affect the cash flows or profitability of our business.

Moreover, there can be no assurance that we will be able to enter into replacement agreements on favorable terms or

at all.

As of December 31, 2025, substantially all of our GeoBlocks under construction were located in Utah. We also

intend to expand our operations into Nevada in the long-term. In addition, we expect much of our near-term future

growth to occur in these same markets and throughout the western United States, further concentrating our

operational infrastructure. Accordingly, our business and results of operations are particularly susceptible to adverse

economic, regulatory, permitting, political, weather and other conditions in such markets and in other markets that

may become similarly concentrated. Any of these conditions, even if only in one such market, could have a material

adverse effect on our business, financial condition and results of operations.

We are exposed to the credit and financial condition of our offtakers. We have two long-term PPAs relating to

Cape Station Phase I, and two long-term PPAs relating to Cape Station Phase II. Because our contracts are long-

term, we may be adversely affected if the credit quality of any of these customers were to decline or if their

respective financial conditions were to deteriorate or if they are otherwise unable to perform their obligations under

our long-term contracts. While we have executed binding offtake agreements with credit-worthy counterparties in

certain cases, long-term exposure to a concentrated offtaker base remains a risk.

***We are a holding company and our cash depends substantially on the performance of our subsidiaries and the*** 

***power plants they operate, most of which are subject to restrictions and taxation on dividends and distributions.*** 

As a holding company, our financial health and liquidity are closely tied to the performance of our subsidiaries

and the geothermal power plants they operate. These subsidiaries are the primary source of our cash flow, and any

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adverse developments in their operations can directly impact our ability to generate revenue and maintain financial

stability. The geothermal power plants are subject to various operational risks, including resource variability,

technological challenges, and maintenance requirements, which can affect their efficiency and output. Additionally,

fluctuations in energy prices and demand can influence the profitability of these plants, further impacting the cash

flow available to the holding company.

Moreover, our subsidiaries operate in diverse regulatory environments, each with its own set of restrictions and

taxation policies on dividends and distributions. These regulations can limit the amount of cash that can be

transferred to the holding company, affecting our ability to meet financial obligations and invest in growth

opportunities. Changes in tax laws or regulatory frameworks could increase the tax burden on our subsidiaries,

reducing the funds available for distribution. As a result, our financial results and ability to execute strategic

initiatives are inherently linked to the operational success and regulatory compliance of our subsidiaries and the

geothermal power plants they manage.

In addition, certain of our subsidiaries are party to project-level financing arrangements that contractually

restrict or prioritize cash distributions before any amounts can be upstreamed to us. For example, the Cape Station

Phase I project equity financings with Catalyst and Centaurus contain required payout provisions that must be

satisfied prior to any distributions to our parent company. The Catalyst financing is structured as project-level

preferred equity with a priority dividend and return-of-capital profile, with cash applied first to preferred

distributions before amounts are available to common equity. The Centaurus financing, which we have negotiated

for Cape Station Phase I as junior project preferred equity, includes a distribution waterfall that prioritizes cash to

Centaurus until agreed return hurdles are achieved, after which distributions step down; certain terms could further

reduce cash available to common equity. The Project Granite Facility also includes a cash management structure

pursuant to which project revenues from Cape Station Phase I are applied in a specified priority of payments, and

distributions are subject to the satisfaction of specified conditions. These and similar project-level distribution

waterfalls, reserve requirements, and covenant-based limitations may delay, reduce, or entirely preclude cash

distributions to us for extended periods, even when the underlying project is operating as expected. Any such

restrictions could materially limit our liquidity at the holding company level and our ability to meet corporate

obligations, fund corporate overhead, or pursue strategic initiatives.

***Management and operation of our wellfield and power plants will involve significant risks.*** 

Following commissioning of our power plants, we plan to manage, operate, and maintain such power plants

through our subsidiaries. We are in the process of building out our team to manage and operate the power plants, and

as a result we will be exposed to various new operational risks as we expand that team and bring power plants

online. For example, we will be exposed to the following risks with respect to the operation of power plants:

• our limited track record with managing and operating our own power plants;

• our power plants performing below expected levels of efficiency or capacity or required changes to

specifications for continued operations;

• breakdowns or failures of equipment or shortages or delays in the delivery of power;

• releases of hazardous substances into the environment;

• risks related to operators and service providers used in our operations;

• operational errors by us or any contracted provider;

• continued availability of water supply or costs associated with procurement;

• catastrophic events or accidents such as fires, explosions, earthquakes, volcanic activity, landslides, floods,

severe weather storms, or other weather events (including weather conditions associated with climate

change) or other similar events or catastrophes;

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• aging of power plants and ORC turbines (which may reduce their availability and increase the cost of their

maintenance);

• a lack of adequate and qualified personnel to crew and operate the power plants;

• potential labor shortages, work stoppages, or labor disputes;

• our potential inability to recruit and retain key personnel to successfully manage and operate the power

plants;

• weather-related or natural disaster interruptions of operations;

• failure to supply due to scheduled or unscheduled maintenance; or

• potential changes to laws or rules which may affect our ability to meet existing contract energy delivery

requirements.

***The GFA is a non-binding agreement, and does not obligate Google to purchase power from us.***

We recently entered into the GFA, a framework agreement with Google Energy LLC under which we have

committed to propose geothermal development projects representing at least one gigawatt of geothermal capacity to

Google within two years and up to three gigawatts over the term of the agreement. The GFA establishes a binding

framework under which we may propose geothermal development projects to Google, but it does not obligate

Google to accept any project, execute any power purchase agreement or provide us with any project financing.

Google has the sole and unilateral right to accept or reject any proposed project for any reason or no reason, and may

terminate the GFA in accordance with its terms. While the GFA provides for termination fees payable by Google if

it withdraws from a project at certain development stages, these fees may not fully compensate us for the

development costs we have incurred, and investors should not assume they reflect the full economic value of the

projects to which they relate. In addition, either party may terminate the GFA entirely if no definitive offtake

agreement has been executed by March 19, 2028, approximately two years from its effective date, which means the

GFA could lapse in its entirety without resulting in any binding commitment from Google to purchase power from

us. There can be no assurance that any project proposed under the GFA will progress to a binding offtake agreement

or that the GFA will result in any contracted capacity or revenue.

Even in the event that projects do proceed under the GFA, the pricing and other terms of the GFA may limit our

ability to fully recover costs or achieve our targeted returns. The GFA establishes pricing on a cost-plus targeted

return basis, subject to caps, floors, and escalating discounts on expansion projects, any of which could compress

our margins or require us to absorb cost overruns on affected projects. The GFA also grants Google audit rights over

our project costs and pricing methodology, which could give rise to disputes that delay or disrupt the execution of

definitive agreements. These pricing constraints could have a material adverse effect on our business, financial

condition, and results of operations.

The GFA also imposes exclusivity obligations and restrictions on both parties during the project development

process and grants Google certain rights of first refusal over portions of our project pipeline, including over

expansion capacity within contracted areas and certain near- and medium-term uncontracted capacity. The GFA

further restricts our ability to accept investment from, or enter into financing arrangements with, a broad category of

entities defined as competitors under the GFA. Together, these provisions give Google significant priority over our

near-term development pipeline and may limit our flexibility to pursue alternative commercial, strategic, or

financing arrangements that would otherwise be available to us.

***Possible fluctuations in the cost of construction, raw materials, commodities and drilling may materially and*** 

***adversely affect our business, financial condition, future results, and cash flow.***

Our operations are dependent on the supply of various raw materials, including primarily steel and aluminum

and industrial equipment components that we use. We generally obtain these materials and equipment at

market-based prices through a mix of competitive bids and fixed-price contracts, and certain purchases are impacted

by tariffs and logistics costs. We maintain multiple qualified suppliers across critical categories and are not broadly

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dependent on any single supplier; however, certain specialized scopes such as the ORC turbines and associated

equipment for specific projects are currently sourced primarily from Turboden and Baker Hughes. We do not

maintain broad, ongoing framework supply agreements, but we do enter into project-specific equipment and services

contracts with multi-year delivery schedules. Global events such as geopolitical conflicts (including conventional

wars, trade wars and embargoes) have resulted in the extended shutdown of businesses in certain regions, causing

delays in supply and increases in the cost of raw materials and components and higher transportation expenses. Our

development activity is also impacted by supply delays and cost increases for raw materials and equipment, as well

as by tariffs and taxes. Further cost increases of such raw materials, commodities and equipment, logistics, or

increases in tariffs and taxes could adversely affect our profit margins and project schedules.

***Our mix of turnkey and cost plus construction contracts may increase our exposure to cost overruns, delays, and*** 

***misalignment with our PPAs and financing.***

We have engaged multiple engineering, procurement and construction ("EPC") counterparties for Cape Station

Phase I under different commercial structures. Our EPC contracts include those for balance of plant (meaning the

on-site civil, mechanical, electrical, controls, and other systems that support and integrate the facility other than the

core process equipment and wells), transmission and distribution (meaning the interconnection and related electrical

facilities outside the plant), and wellpad facilities (meaning the surface facilities that support the wells). We utilize a

combination of (i) turnkey, fixed prices contracts under which the contractors are obligated to deliver defined scopes

for a set price, subject to change orders and customary exclusion and (ii) cost plus contracts, which are inherently

exposed to greater price variability.

Even for the turnkey scopes, prices can change through approved change orders, allowances, and exclusions,

and schedule risk remains if contractors underperform or if there are interface issues among EPCs. For the cost plus

contracts, our exposure to actual costs may increase if estimates prove low or if scope, productivity, or market

conditions change, even where budgets or targets are established. In each case, our contractual remedies may be

limited by liability caps, exclusions of consequential damages, and other limitations, and may not align with our

obligations under our PPAs, including COD requirements and availability or performance standards, or with

covenants and milestones under our project financing. If EPC delays or underperformance occur, we could incur

higher construction costs, miss COD or other contractual milestones in our PPAs, owe liquidated damages,

experience reduced pricing or capacity, or face termination rights that could adversely affect our revenues, liquidity,

and results of operations.

***Our supply base may not be able to scale to the production levels necessary to meet sales projections.*** 

We do not have manufacturing assets and will rely on third party manufacturers and construction firms to build

power plants, wellfields and associated equipment. Our growth strategy assumes that manufacturers of geothermal

turbines, drilling equipment, and other critical components will expand capacity in line with our development

pipeline. The existing supplier base for these highly specialized products is limited, and there is no assurance that it

can scale production, workforce, or logistics to match sector-wide demand. If suppliers are unable or unwilling to

increase output on the timelines and terms we require, we could face extended lead times, higher equipment and

construction costs, and delays in reaching commercial operation, which could adversely affect our revenues, project

returns, and ability to meet contractual milestones. Moreover, we are dependent on future supplier capability to meet

production demands attendant to our forecasts. If our supply chain cannot meet the schedule demands of the market,

our projected sales revenues could be materially impacted.

***Our business development activities may not be successful and our projects under construction or facilities may*** 

***encounter delays, which may impact our future growth.*** 

We are in the process of developing and constructing a number of new power plants. Our success in developing

a project is contingent upon, among other things, negotiation of satisfactory engineering, construction, and

procurement agreements and obtaining PPAs and transmission services agreements, receipt of required

governmental permits (including environmental permits), obtaining adequate financing, and the timely

implementation and satisfactory completion of field development, testing and power plant construction and

commissioning. We may be unsuccessful in accomplishing any of these matters or doing so on a timely basis such in

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cases where we have to handle legal proceedings with respect to environmental permits. Although we may attempt

to minimize the financial risks attributable to the development of a project by securing a favorable PPA and

applicable transmission services agreements, obtaining all required governmental permits and approvals and

arranging, in certain cases, adequate financing prior to the commencement of construction, the development of a

power project may require us to incur significant expenses for preliminary engineering, permitting and legal and

other expenses before we can determine whether a project is feasible, economically attractive or capable of being

financed.

Currently, we have EGS projects and prospects under exploration, development or construction in the United

States, and we intend to pursue the development of other new plants. Our completion of these facilities'

development and/or enhancement is subject to substantial risks, including:

• Inability to secure a PPA;

• Inability to secure or delays in securing transmission and/or interconnection services agreements and

related equipment and/or capacity;

• Inability to secure the required financing;

• Cost increases and delays due to unanticipated shortages of adequate resources to execute the project, such

as equipment, material, and labor;

• Work stoppages resulting from force majeure events, including riots, strikes, or weather conditions;

• Inability to obtain permits, licenses, and other regulatory approvals;

• Inability to satisfactorily complete field development and testing;

• Failure to secure sufficient land positions for the wellfield, power plant, and rights of way;

• Failure by key contractors and vendors to timely and properly perform, including where we use equipment

manufactured by others;

• Substantial delays associated with switching to different suppliers or technologies and related integration

risks;

• Adverse environmental and geological conditions, including discoveries of contamination, protected plant

or animal species or habitat, archaeological or cultural resources, or inclement weather conditions;

• Adverse local business law;

• Legal challenges and other opposition to our projects;

• Limited access to a stable and secure water supply;

• Our attention to other projects and activities, including those in the energy storage sectors; and

• Changes in laws, regulations or policies that mandate, incentivize, or otherwise favor renewable energy

sources.

***If we fail to effectively manage our growth, our business, financial condition, and results of operations could be*** 

***adversely affected.*** 

We have grown rapidly since our inception and expect to continue to experience rapid growth in the future. This

growth has placed, and may continue to place, significant demands on our management and our operational and

financial infrastructure. We have made, and intend to continue to make, substantial investments in our technology,

operations, engineering, customer service, risk, sales, and marketing infrastructure. Our ability to manage our

growth effectively and to integrate new technologies, personnel, and strategic acquisitions and priorities into our

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existing business will require us to continue to expand our operational and financial infrastructure and retain, attract,

train, motivate, and manage key employees. Continued growth could strain our ability to develop and improve our

operational, financial, and management controls, enhance our reporting systems and procedures, recruit, train, and

retain highly skilled and other necessary personnel, and maintain customer and brand satisfaction.

Additionally, if we do not effectively manage the growth of our business and operations, the quality of our

platform and the efficiency of our operations could suffer, which could adversely affect our growth, business,

financial condition, and results of operations. As we scale GeoClusters and add multiple GeoBlocks over time, the

complexity of simultaneous, repeatable deployments may exacerbate these risks.

***Changes in governmental agency budgets, policies and priorities, as well as staffing shortages at national*** 

***laboratories and other governmental agencies, may lengthen our estimated timelines for regulatory approval and*** 

***construction.***

Certain of our wellfields and power plants are dependent upon collaborations with national laboratories and/or

various regulatory approvals. In particular, many of our projects are located on, cross, or otherwise rely on access to

lands administered by the BLM, and our development and operations depend on obtaining and maintaining BLM

rights-of-way, leases, drilling and construction permits, and related approvals. Government agency budgets and

staffing are driven by the priorities of leadership at federal agencies as well as policymakers. Changes in

governmental agency budgets, personnel, and any resulting staffing shortages may delay our geothermal power

plants and resource management facilities and delay or prevent the issuance of required regulatory approvals (e.g.,

permits or licenses) for our geothermal operations. Additionally, lapses in federal appropriations and related

government shutdowns can suspend or significantly slow agency activities, including BLM processing of

applications, consultations, and environmental reviews, which can halt field work, delay access to federal lands, and

extend project schedules. These delays can impact our ability to commence or expand operations, affecting our

revenue generation and growth prospects.

The reliance on government collaboration and regulatory approval introduces a layer of uncertainty, as shifts in

political priorities or budget allocations can alter the focus and efficiency of relevant agencies. If funding for

environmental assessments or energy-related research is reduced, it may slow the progress of our projects and hinder

technological advancements. Additionally, staffing shortages within regulatory bodies can lead to longer processing

times for permits and licenses, creating bottlenecks that affect project timelines and operational planning. Our

dependence on BLM-administered lands and approvals amplifies these risks because delays or disruptions at BLM

—whether due to budget constraints, staffing shortages, or shutdowns can directly impede site access, surveying,

drilling, construction and tie-in activities.

Moreover, changes in government leadership or policy direction can result in new regulations or modifications

to existing ones, requiring us to adapt our operations to remain compliant. This can involve additional costs and

resources, further impacting our financial performance. Periods of continuing resolutions and government

shutdowns may also defer rulemaking, pause interagency consultations (including those required under NEPA and

related federal statutes), and postpone issuance of records of decision or permits needed for project advancement. As

a result, maintaining strong relationships with government entities and staying informed about policy developments

is crucial for navigating these challenges and ensuring the successful execution of our geothermal projects. Although

certain federal and state policy developments may support geothermal development, such support may not be

available or sufficient.

In addition, the recent change in the U.S. presidential administration increases regulatory ambiguity and the rate

of change. In January 2025, President Donald Trump signed several Executive Orders specific to the energy industry

which may signal a shift in the federal government's approach to energy-related initiatives, policies, and regulations,

and contain directives that, among other things, (i) encourage further domestic energy exploration and production,

including on federal lands and waters, (ii) instruct federal agency and department officials to expedite the

completion and authorization of various energy-related projects, (iii) promote the streamlining of various permitting

processes at the federal level, and (iv) rescind and revise regulations that burden future energy development,

identification, and production. Notably, the Trump administration specifically highlighted "geothermal heat" as one

source of energy for increased domestic attention and production. However, we cannot currently make any

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assurance regarding the influence of the policies or political stances of the Trump administration or current U.S.

Congress on our business. Relatedly, in recent years, specifically in the U.S., "anti-ESG" sentiment has gained

momentum, with several states and Congress having proposed or enacted "anti-ESG" policies, legislation, or

initiatives or issued related legal opinions. We cannot predict what, if any, impact such "anti-ESG" policies will

have on our industry or our business specifically.

We could also face an increase in competition as a result of the energy transition, as new entrants of disruptive

technologies and/or competitors, including in the solar, wind, nuclear and storage sectors, could adversely impact

our ability to renew existing PPAs or sign new contracts. On the other hand, anti-ESG related policies, legislation,

initiatives, litigation, legal opinions, and scrutiny could result in additional compliance obligations, us becoming the

subject of investigations and enforcement actions, or sustaining reputational harm.

***If the energy production by or availability of our power plants is less than expected, they may not be able to*** 

***satisfy minimum production or availability requirement obligations under our PPAs.*** 

Energy production or a power plant's availability could be less than expected due to various factors, including,

but not limited to, resource degradation and/or our inability to artificially stimulate thermal reservoirs to offset any

such degradation, natural disasters, equipment underperformance, operational issues, changes in law or regulations

or actions taken by third parties. Our PPAs contain provisions that require us to produce a minimum amount of

energy or be available to generate electricity at a given minimum percentage of time over periods specified in the

PPAs. A failure to produce sufficient energy or to be sufficiently available for generation to meet our commitments

under the PPAs could result in the payment of damages or the termination of PPAs and could have a material

adverse effect on our business, financial condition, results of operations and ability to grow its business and make

cash distributions to its shareholders. Our EGS approach is designed to provide baseload power independent of

weather; however, engineered reservoir performance variability or extended outages of standardized ORC units

could reduce output or availability.

These contracts were executed at attractive prices, representing approximately $7.2 billion in potential revenue

backlog. Backlog is calculated using expected energy output, as defined in each PPA, over the entire term of each

PPA and reflects contracted pricing (including any escalators or indexation) and full counterparty performance,

taking credit for all 658 megawatts of executed PPAs as of December 31, 2025. We are actively engaging energy

buyers for additional capacity, which is not included in backlog. Backlog is an operating metric and may change

based on project timing, production variability or curtailment, and potential contract amendments or termination.

***Our customers or we may terminate our PPAs if certain conditions are not met or for other reasons.*** 

Each of our PPAs contains or will contain various termination rights allowing our current and future offtakers to

terminate, or be relieved from their contractual obligations under, their PPAs under certain circumstances, including,

without limitation:

• with respect to certain PPAs, the failure of conditions precedent to be satisfied or waived by a specified

date, or delays in the beginning of construction of the applicable project or occurrence of COD beyond a

specified time period;

• if we fail to deliver certain megawatts at certain reliability levels;

• upon the occurrence of certain extended events of force majeure;

• if we have been held liable in excess of certain liability caps and we did not agree to increase such liability

caps as specified under the relevant PPA;

• if we fail to satisfy our contractual obligations under the applicable PPA;

• if we fail to maintain adequate interconnection or transmission rights required to meet delivery

requirements under the relevant PPA;

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• if we fail to satisfy our contractual obligations after an event of default and after any applicable cure

periods; and

• the occurrence of certain change of control events.

Our failure to meet these milestones and other criteria, including minimum quantities, may result in price

concessions and may result in the termination of our PPAs, in which case we would lose any future cash flow from

the relevant project and may be required to pay fees and penalties to our counterparty. Specifically, with respect to

project completion risk, if we do not commence operations under our PPA on Cape Station Phase I (Unit 1) by

October 1, 2026, Cape Station Phase I (Units 2-3) by January 1, 2027, and Cape Station Phase II by June 1, 2028,

we will incur liquidated damages under the provisions of the applicable PPA. If we do not commence operations

within six months of the applicable PPA COD deadline, our counterparty has the right to terminate the contract. If

our PPAs are terminated, it could materially and adversely affect the development of our geothermal power plants,

our results of operations, and cash flow unless we are able to replace the PPA on similar terms. Additionally, we

cannot assure you that we will be able to perform our obligations under such agreements or that we will have

sufficient funds to pay any fees or penalties thereunder.

***Our PPAs contain terms that could limit revenues and expose us to transmission, pricing, and regulatory*** 

***approval risks. If these risks materialize, our ability to meet projections and service project-level debt could be*** 

***materially and adversely affected.***

Under our PPAs, including those with Southern California Edison, we are required to deliver product from our

interconnection point to designated delivery points on the applicable transmission system and to secure firm,

end-to-end transmission along that path. We bear the risk that third-party interconnection or transmission

arrangements are curtailed, modified, not renewed, or terminated, that network upgrades, import capability, or

market design changes impair deliverability, or that congestion curtailments occur, which may not qualify as Force

Majeure under our contracts. If deliverability is impaired or lost, we could incur default exposure, liquidated

damages, or replacement costs, be required to secure alternative transmission at our expense, or face termination

rights by our offtakers. Because certain of our PPAs are large, long-term offtake commitments that are central to our

projected cash flows and project-level financing covenants, any impairment to end-to-end deliverability,

interconnection capacity, or transmission rights could materially and adversely affect our business and financing.

Our exposure under these PPAs also relates to development milestones, initial delivery requirements, and

performance testing. Many PPAs require adherence to critical path milestones, allow only limited extensions of

expected initial delivery dates (often with daily delay liquidated damages), and impose deadlines by which

commercial operation must be achieved. As conditions to initial delivery, we typically must demonstrate a minimum

percentage of expected contract capacity and satisfy certifications, interconnection, and market participation criteria

established by the applicable market operator and regulatory authorities. Failure to timely achieve commercial

operation or to demonstrate the required capacity can trigger delay liquidated damages, capacity adjustments, events

of default, or termination rights. Additionally, if capacity factors or availability fall below specified thresholds, or if

we are unable to schedule to the delivery point for extended periods, we may face default exposure or be required to

implement recovery plans on compressed timelines at our expense.

Many of our PPAs employ a fixed product price construct and contain asymmetric production and pricing

mechanics. Deliveries above expected annual net energy production may be subject to caps and pricing adjustments,

with positive market revenues for over-production sometimes retained by the offtaker. Conversely, if we deliver less

than a specified percentage of expected annual net energy production (net of qualifying lost output), we owe

liquidated damages based on contractual formulas. Together, these terms limit upside in strong-production periods

while preserving exposure to adverse pricing, congestion, and basis movements between our scheduling points and

delivery points, and they may require us to absorb performance shortfalls through market purchases or liquidated

damages.

Many of our PPAs require external approvals and extensive ongoing compliance. Certain agreements are

subject to regulatory approvals as conditions precedent, with either party sometimes entitled to terminate if approval

is not timely obtained on acceptable terms. We must maintain required certifications, participate in the applicable

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market, comply with reliability standards, post and maintain development and performance security, and comply

with capacity accreditation or resource adequacy-type obligations, including must-offer or supply plan submissions.

The agreements contemplate potential changes to accreditation methodologies and broader market design changes.

While the contracts may provide for amendments or limited cost caps in certain change-in-law scenarios, we bear

the risk that compliance actions, reduced capacity accreditation, or market design adjustments diminish revenues or

increase costs. Some PPAs also restrict our ability to remarket output following certain terminations for a defined

period and may grant an offtaker a right of first offer on replacement transactions, which could constrain mitigation

strategies and cash flows after termination. Finally, fixed product prices in certain PPAs reflect assumed federal,

state, or local tax incentives; prices may not adjust for our eligibility or ineligibility for such incentives, which could

limit our ability to offset cost or rule changes through contract pricing. If termination or default rights are exercised,

if curtailment is sustained, if we fail to obtain or maintain firm end-to-end transmission, interconnection capacity,

and required approvals, or if we miss development or performance thresholds, our revenues could be materially

reduced, our costs could increase, and we could fail to satisfy project-level financing covenants.

***As our contracts expire, we may not be able to renew them or replace them with agreements on similar terms.*** 

Certain contracts in our portfolio will be subject to re-contracting in the future. For example, the average

remaining term of our existing PPAs was approximately 15 years as of December 31, 2025. If prices in our market

change at the time of such re-contracting, it may impact our ability to re-negotiate or replace these contracts on

terms that are acceptable to us, or at all. In addition, a concentrated pool of potential buyers for our products and

services may restrict our ability to negotiate favorable terms under new contracts or existing contracts that are

subject to re-contracting.

We cannot provide any assurance that we will be able to re-negotiate or replace these contracts once they

expire, and even if we are able to do so, we cannot provide any assurance that we will be able to obtain the same

prices or terms we currently receive. Our inability to re-negotiate or replace these contracts, or to secure prices at

least equal to the current prices we receive, could have a material adverse effect on us.

***Certain of our PPAs require us to satisfy fixed minimum performance and availability standards tied to*** 

***renewable portfolio standard compliance, and failure to meet those fixed requirements may result in liquidated*** 

***damages, loss of REC value, capacity de-rates or termination.***

Under certain of our PPAs with investor-owned and publicly-owned utilities in RPS states, we are obligated to

meet defined minimum performance and availability thresholds over specified measurement periods for the

associated energy and renewable energy credits. These contractual thresholds are fixed requirements that do not

automatically adjust for subsequent changes in broader RPS programs and are separate from any evolving market

rules. If our plants underperform relative to those fixed minimums, whether due to outages, resource variability,

curtailments, or other factors, we may be required to make payments or credits for shortfalls, we could experience

permanent reductions to contracted capacity, and counterparties could in certain cases exercise termination rights. In

addition, if REC delivery falls below contracted amounts, we may be exposed to liquidated damages or replacement

obligations. Any such outcomes could materially and adversely affect our revenues, margins and cash flows.

***We do not own the land on which the projects are located, and our use and enjoyment of the property may be*** 

***adversely affected to the extent that there are any lienholders or land rights holders that have rights that are*** 

***superior to our rights or the Bureau of Land Management suspends its federal right-of-way grants.*** 

We do not own the land on which the projects in our portfolio are located and they generally are, and its future

projects may be, located on land occupied under long-term easements, leases and rights-of-way. As of December 31,

2025, approximately 66% of our acreage was located on land owned by the United States federal government, 6%

was located on state lands, and 28% was located on privately-owned land. As of December 31, 2025, our easements,

leases and rights-of-way had a weighted average remaining term of approximately 7 years with scheduled

expirations of approximately 6% in years 2026 to 2028, 55% in years 2029 to 2031, and 39% thereafter, in each case

excluding any unexercised renewal options. A majority of our leases are issued by the BLM and include renewal

options exercisable at our discretion. The standard BLM lease provides an initial ten-year term followed by two five-

year renewal options. We currently anticipate exercising renewal options for our leases, including those with near-

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term scheduled expirations in 2026 to 2028, and we do not expect any material lease expirations in the near term.

Additionally, these BLM leases contain acreage that is subject to extension provided certain conditions are met,

including a minimum amount of expenditures per acre and the provision of certain geologic information to the BLM,

which enables us to extend the lease term for as long as we continue to meet such conditions.

The ownership interests in the land subject to these easements, leases and rights-of-way may be subject to

mortgages securing loans or other liens and other easements, lease rights and rights-of-way of third parties that were

created prior to our projects' easements, leases and rights-of-way. As a result, some of our projects' rights under

such easements, leases or rights-of-way may be subject to the rights of these third parties. While the Company

performs title searches, records its interests in the real property records of the projects' localities and enters into non-

disturbance agreements to protect itself against these risks, such measures may be inadequate to protect against all

risk that our rights to use the land on which its projects are or will be located and its projects' rights to such

easements, leases and rights-of-way could be lost or curtailed. Additionally, our operations located on properties

owned by others are subject to termination for violation of the terms and conditions of the various easements, leases

or rights-of-way under which such operations are conducted.

Further, our activities conducted under federal rights-of-way grants are subject to "immediate temporary

suspension" of unspecified duration, at any time, at the discretion of the Bureau of Land Management ("BLM"). A

suspension of activities within a federal right-of-way may be issued by the BLM to protect public health or safety or

the environment. An order to suspend activities may be issued by the BLM prior to an administrative proceeding.

Such an order may be issued verbally or in writing and may require immediate compliance. Any violation of such an

order could result in the loss or curtailment of our rights to use any federal land on which its projects are or will be

located.

Our exposure to these risks is heightened because a portion of our contracted revenue backlog is tied to utility

counterparties whose PPAs depend on the continued operation of projects located on such lands. As of December

31, 2025, we had PPAs with several utilities, representing approximately $5.7 billion of our approximately $7.2

billion contracted backlog revenue. Any loss or curtailment of our rights to use project lands as a result of any

lienholders or land rights holders with superior rights, or any BLM suspension of federal rights-of-way grants, could

therefore result in delays, penalties, or defaults under such PPAs and materially reduce our expected backlog

realization.

Any such loss or curtailment of our rights to use the land on which its projects are or will be located as a result

of any lienholders or leaseholders that have rights that are superior to our rights or the BLM's suspension of its

federal rights-of-way grants could have a material adverse effect on our business, financial condition, results of

operations and ability to grow its business and make cash distributions to its unitholders. In certain instances, rights-

of-way may be subordinate to the rights of government agencies, which could result in costs or interruptions to our

service. Restrictions on our ability to use rights-of-way could have a material adverse effect on our business,

financial condition, results of operations and ability to grow our business and make cash distributions to unitholders.

***Our ability to secure additional geothermal lease rights at reasonable cost is uncertain and could constrain our*** 

***growth and increase our development costs.***

As of December 31, 2025, we held approximately 595,900 acres of geothermal leasehold interests across seven

jurisdictions, including California, Colorado, Idaho, Nevada, New Mexico, Utah and Washington, consisting of

approximately 65.6% federal leases and approximately 34.4% state or private leases, and a majority of our leases

have a 10-year initial term, and in most cases, extension options. Our growth strategy depends on our ability to add

to this lease position on acceptable terms. Geothermal lease auctions and negotiated lease processes are becoming

more competitive as interest in geothermal development increases among incumbent energy companies, independent

developers, and financial investors. We may be out-competed by better-capitalized counterparties—including large

integrated energy companies and "super majors" that can bid more aggressively, accept more burdensome terms, or

move more quickly in lease processes. Greater competition for attractive acreage could result in higher bonus bids,

rentals, royalties, work commitments, or other burdensome lease terms, as well as longer lead times to secure rights.

As a result, we may be unable to secure prospective acreage in our target areas, or may be forced to accept higher-

cost or less favorable terms than those assumed in our business plan. Moreover, we assembled our current position at

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a weighted average of approximately $4 per acre during a period of minimal competition between 2019 and 2021, in

sharp contrast to current U.S. Bureau of Land Management lease sales in Utah and Nevada, where maximum bids

reached $344 and $410 per acre, respectively, in 2025. There is no assurance that we will be able to obtain

additional lease rights in the locations, quantities, timing, or at the cost we anticipate, or at all. If we are unable to

expand or maintain our lease position at competitive prices, our project pipeline, drilling schedule, and long-term

growth plans could be delayed, downsized, or otherwise adversely affected, and our capital intensity and unit costs

could increase materially.

Access to geothermal lease opportunities also varies by jurisdiction. Federal, state, and local frameworks for

geothermal leasing are not uniform, and not all U.S. states actively administer geothermal lease programs or conduct

regular lease sales. In some jurisdictions, enabling statutes, implementing regulations, environmental review

timelines, or administrative capacity remain nascent or subject to change, and the timing, frequency, and terms of

lease offerings are uncertain. In addition, evolving policy priorities, land-use constraints, and competing resource

uses can limit the availability of prospective acreage or impose restrictions that diminish the value of leaseholds.

Any reduction in the availability of lease opportunities, or any tightening of lease terms or approval requirements,

could reduce our ability to assemble contiguous positions, increase our costs and timelines, and impair our ability to

develop projects at the scale and pace contemplated by our business plan.

***Our exploration, development, and operation of geothermal energy resources are subject to geological risks and*** 

***uncertainties, which may result in decreased performance or increased costs for our power plants.***

Our primary business involves the exploration, development, and operation of geothermal energy resources

within large, contiguous hubs we refer to as GeoClusters, where we deploy modular 50-megawatt GeoBlocks using

binary, air-cooled ORC technology. These activities are subject to uncertainties that, in certain respects, are similar

to those typically associated with oil and gas exploration, development, and exploitation, including uncertainty and

heterogeneity in reservoir properties such as pressure, temperature, permeability, porosity, lithology, stress, fluid

saturation, fluid chemistry, and reservoir quality in general. Any of these uncertainties may increase our capital

expenditures and our operating costs or reduce the efficiency of our power plants over time. We may not find

resources capable of supporting a commercially viable power plant at exploration sites where we have conducted

tests, acquired land rights, and drilled test wells, which would adversely affect our development of geothermal

power plants.

Further, while Project Red has produced consistent, stable temperature output and has not exhibited the type of

thermal decline observed at many conventional geothermal projects, geothermal resources are complex geological

structures and their geographic extent and sustainable output can only be estimated. Our geothermal energy power

plants may suffer an unexpected decline in the capacity of their respective geothermal wells and are exposed to a

risk of geothermal resources not being sufficient for sustained generation of the electrical power capacity desired

over time. If well performance degradation occurs due to any of (or a combination of) premature thermal decline,

production rate decline, changes in injectivity or variations in productivity, and we are unable to efficiently stimulate

the thermal resource to offset such declines, we may be forced to write down the value of affected assets, incur

impairment charges, or invest significant additional capital to restore or maintain output, including redesigning

engineered reservoirs or drilling additional laterals to meet standardized GeoBlock requirements. This could lead to

reduced revenues, increased operating costs, and diminished returns on investment, adversely affecting our business,

financial condition, and results of operations. Furthermore, the perception of geothermal resource instability could

impact our ability to secure project finance and binding offtake with investment-grade counterparties, as

stakeholders may view our projects as riskier than those of competitors with more stable resources.

Another aspect of geothermal operations is the management and stabilization of subsurface impacts, including

ground subsidence or inflation, related to reservoir creation and injection. Inflation and subsidence, if not controlled,

can adversely affect agricultural operations and infrastructure at or near the land surface, prompt new permit

conditions or setback requirements, result in curtailments that impair our ability to perform under affected PPAs, and

increase potential exposure to third-party claims. We employ high-fidelity monitoring—including permanent fiber

optics and advanced computational modeling to optimize well placement, stimulation programs, and thermal

drawdown management across standardized GeoBlocks. Despite these measures, the inherent uncertainty of

engineered reservoir performance remains a material risk to sustained output at targeted nameplate capacities.

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***Our estimates of capacity potential and underlying estimates of HIIP are inherently uncertain, do not consider*** 

***technological, commercial or economic viability, and should not be viewed as a measure of estimated future*** 

***production or generation capacity.***

We present in this prospectus certain estimates of the capacity potential (represented as megawatts or gigawatts)

of our GeoClusters. These estimates are based on the underlying geothermal resource potential at our GeoClusters,

as represented by a measure of thermal energy we refer to as HIIP, the estimated electrical power capacity into

which such HIIP may be converted, and the thermal recovery factor of this thermal energy. HIIP is the total thermal

energy estimated to be contained in place within the rock and pore fluid in a defined subsurface volume as of a given

date, before accounting for any recovery of heat to the wellhead or conversion to electricity. To produce our

estimates of capacity potential, a thermal recovery factor is applied to the HIIP estimates.

For Cape Station, D&M, an independent engineering consulting firm, independently prepared HIIP estimates

using geologic, thermal, and geomechanical models and probabilistic methods, as described further in its report

dated June 30, 2024 thereon included as an exhibit to the registration statement of which this prospectus forms a

part. To produce our estimate of capacity potential, we further adjust the HIIP estimates by applying a thermal

recovery factor. For the nine GeoClusters reviewed by D&M subsequent to Cape Station, which includes: Blanford,

Corsac, Marble, Kit, Star, Fennec, Cross, Swift and Aspen, D&M utilizes their own thermal recovery factors, which

are factored into their estimates of capacity potential.

However, these estimates are inherently uncertain and subject to significant limitations, including the following:

• The HIIP estimates produced by D&M for Cape Station does not incorporate recovery factors. Thermal

energy in place does not indicate how much heat can be transferred to fluid through heat exchange or

produced at the wellhead, and therefore does not indicate how much of such heat at the wellhead can

ultimately be converted into electricity. Recovery depends on reservoir connectivity, stimulation

effectiveness, pressure and temperature drawdown, flow performance, induced seismicity constraints, and

well and surface facility design, among other factors, each of which is subject to risks. To produce our

estimates for capacity potential at Cape Station, we rely on our own estimates for thermal recovery factors

in order to further adjust D&M's HIIP and Electric Power Capacity estimates. While D&M has

incorporated their own estimates of thermal recovery factor for other GeoClusters reviewed, given the

limited deployment to date, thermal recovery factors for EGS are inherently uncertain and can range

substantially.

• The HIIP estimates produced by D&M does not reflect economic feasibility. These estimates measure

thermal energy contained within a rock, rather than thermal energy that can be economically produced

therefrom, and accordingly do not include drilling and completion costs, electricity prices, parasitic loads,

transmission losses, offtake terms and demand, permitting timelines, interconnection constraints, supply

chain availability, or financing requirements. Quantities that are technically recoverable absent such

limitations, and therefore are included in our resource estimates, may not in practice be economic to

develop.

• The HIIP estimates produced by D&M should not be treated as equivalent or analogous to those quantities

that are associated with "Reserves" (as defined pursuant to the rules and regulations of the SEC) due to the

additional risks involved. The quantities of heat that might actually be recovered, and the quantities of

associated produced electricity should such geothermal resources be developed, may differ significantly

from the HIIP estimates produced by D&M.

• D&M's illustrative conversions to potential electric power capacity associated with HIIP are not forecasts.

The illustrative estimates of potential electric power capacity into which our HIIP can be converted rely on

assumptions regarding Organic Rankine Cycle turbine efficiency, parasitic loads, and a peak output

correction factor derived from guaranteed manufacturer specifications, an assumed 30-year project life, and

an assumed capacity factor. These illustrative conversions are not forecasts of future production and do not

incorporate estimates of project economics.

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• Model assumptions and data limitations may prove inaccurate. The models underlying our resource

estimates depend on temperature profiles, geological data, and geomechanical interpretations, and were

prepared using data provided by us that were not independently verified by D&M. At increased depths, the

uncertainty in such models continues to increase, and future drilling, testing, or monitoring could reveal

materially different subsurface conditions than those included in our models.

Accordingly, investors should not place undue reliance on any estimates of our geothermal resource or assume

that any portion of HIIP will be produced or converted to electricity on an economic basis or within any particular

timeframe. If the quantities or economics ultimately differ from those implied by our resource estimates, our

business, financial condition, results of operations, and prospects could be materially and adversely affected.

***Illustrative estimates of earnings before interest, taxes, depreciation and amortization and illustrative estimates of*** 

***capital required per megawatt for EGS projects included herein are not forecasts, targets or guidance, and actual*** 

***results could vary materially.*** 

The illustrative industry level estimates of earnings before interest, taxes, depreciation and amortization and

illustrative capital required per megawatt for EGS projects included herein are not forecasts, targets or guidance.

These estimates are based on internal estimates, and are simplified, scenario-based outputs based on data available

as of December 31, 2025. For example, of a given PPA, operations and maintenance costs may not be reflective of

our operations or the operations of other comparable operators of geothermal projects, and the ability to monetize

geothermal tax credits assumes the continued existence of such tax credits and an efficient market for such sales.

Further, actual earnings before interest, taxes, depreciation and amortization per megawatt for EGS projects will

differ depending on project and market specific factors, such as resource quality, development and operating costs,

actual capacity factor, power prices and offtake terms, and may cause results to vary materially from such estimates.

Actual capital expenditures per megawatt for EGS projects will differ depending on project- and market-specific

factors, such as subsurface conditions and resource quality including target depth and temperature, drilling and

completion requirements, reservoir stimulation scope, well count, surface plant design and equipment costs,

interconnection and transmission upgrades, supply chain and labor pricing, permitting and site infrastructure needs,

and contingency and owner's costs, and may cause results to vary materially from such estimates.

Additionally, the illustrative estimates presented herein are not specific to us or our technology but are general,

industry level estimates of EGS project economics. While we believe such estimates of EGS project economics to be

reasonable and are generally consistent with our understanding of EGS technology, there can be no assurance that

the performance or economics of our EGS projects will meet such estimates, and our actual results could differ

materially. Therefore, you are encouraged not to place undue weight on such illustrative estimates, and the inclusion

of such information should not be regarded as a forecast, target, guidance or a representation by us that the results

reflected in such estimates will be achieved.

***Our strategy involves drilling using existing oil and gas technologies, such as multistage hydraulic stimulation*** 

***and horizontal drilling techniques, in new geothermal applications aided by fiber optic data acquisition, which*** 

***involve risks and uncertainties in their deployment.***

Our operations involve utilizing established oil and gas technologies in novel geothermal applications as well as

new technologies developed by us. While we have achieved commercial pilot milestones, we are still in the

construction phase for additional projects and therefore are subject to risks associated with using multistage

hydraulic stimulation and horizontal drilling techniques in new applications. The success of these techniques can

only be evaluated over time and at scale as more wells are drilled and production profiles are established over a

sufficiently long time period. If our production results are less than anticipated or we are unable to execute our well

projects because of capital constraints, regulatory limitations and/or declines in electricity prices or demand, the

return on our investment in these areas may not be as attractive as we anticipate.

***Inflation and rising costs could adversely affect our business and may impact us differently than other clean-***

***energy providers.***

Inflation has recently reached its highest levels in decades and has contributed to higher interest rates and

capital costs, increased shipping and logistics expenses, elevated costs for raw materials, supply shortages, and

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rising labor costs. These conditions have affected, and may continue to affect, the broader technology and energy

transition industry, including other renewable power sources such as solar and wind. However, the relative impact of

inflation is not uniform across the industry. For EGS, the magnitude and timing of inflationary effects can depend on

factors such as material intensity and technology design, the structure and terms of supply and services agreements,

project management and execution, and the availability of specialized vendors and equipment.

Our development and operations require specialized drilling services, well construction materials, and ORC

equipment. Availability and pricing for these inputs may be constrained by broader power sector demand and

capacity limits in oilfield and industrial supply chains, which can exacerbate price volatility and delivery schedules

for rigs, tubulars, cement, drilling fluids, heat-exchange equipment, and related components. These dynamics could

reduce the competitiveness of our EGS technology and impair our ability to construct and operate wellfields, power

plants, and other facilities on anticipated timelines and budgets. In addition, higher interest rates and capital costs

associated with inflation could increase our financing expenses on current and future projects. Any of these factors,

individually or in combination, could have a material adverse effect on our business, financial condition, and results

of operations.

***Our business involves significant risks and uncertainties that may not be covered by insurance.*** 

A significant portion of our business relates to designing, developing and manufacturing advanced geothermal

technology products and services. New technologies may be untested or unproven and the failure of our products

and services could result in extensive damage. Accordingly, we may incur liabilities that are unique to our products

and services.

The amount of insurance coverage that we maintain may not be adequate to cover all claims or liabilities.

Existing coverage may be canceled while we remain exposed to the risk and it is not possible to obtain insurance to

protect against all operational risks, natural hazards and liabilities. If a significant accident or event occurs that is not

fully insured, if we fail to recover all anticipated insurance proceeds for significant accidents or events for which we

are insured, or if we fail to replace or repair products or services damaged by such accidents or events, our

operations and financial condition could be harmed.

We have historically insured against liability to third parties from EGS activities as required by law to the extent

that insurance was available on acceptable premiums and terms. However, the insurance coverage for third-party

damages may not be sufficient to cover the liability. Moreover, we do not purchase control-of-well insurance and

our insurance program does not cover many subsurface risks inherent in our operations. As a result, first-party losses

arising from subsurface events, such as loss of well, blowouts, uncontrolled flows, kicks, formation or reservoir

damage, subsurface property damage, and related well control and remediation costs may be uninsured or

underinsured. Any such uninsured or underinsured losses could require us to fund significant costs directly, which

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

The price and availability of insurance fluctuate significantly. Insurance market conditions or factors outside our

control, such as failure of our infrastructure technology, could cause premiums to be significantly higher than

current estimates and could reduce amounts of available coverage. The cost of our insurance has been increasing and

may continue to increase. Higher premiums on insurance policies will reduce our operating income by the amount of

such increased premiums. If the terms of insurance policies become less favorable than those currently available,

there may be limits on the amount of coverage that we can obtain, or we may not be able to obtain insurance at all.

Moreover, even where coverage is available, exclusions and sublimits (particularly with respect to subsurface risks)

may materially limit recoveries.

In addition, although we carry business interruption insurance policies, any business interruption losses could

exceed the coverage available or be excluded from our insurance policies. For example, interruptions caused by

subsurface incidents and well control events may not be covered. Any disruption of our ability to operate our

business could result in a material decrease in our revenues or significant additional costs to replace, repair, control

or insure our assets, which could have a material adverse impact on our financial condition and results of operations.

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***Our operations could be adversely impacted by climate change and severe weather.*** 

We are susceptible to losses and interruptions caused by extreme weather conditions such as droughts,

earthquakes, hurricanes, tsunamis, floods, blizzards, wildfires, and water or other natural resource shortages,

occurrences of which may increase in frequency and severity as a result of climate change. Given our geographic

concentration, an extreme weather event in the region in which we operate could cause significant disruptions to our

operations. Climate change may also produce general changes in weather or other environmental conditions,

including temperature or precipitation levels, and thus may impact consumer demand for electricity. Daily and

seasonal fluctuations in temperature generally have a more significant impact on the generating capacity of EGS

power plants than conventional power plants. Power plants may experience reduced generation in warm periods due

to the lower heat differential between geothermal fluid and the ambient surroundings. While we generally account

for the projected impact seasonal fluctuations in temperature may have based on historic experience, the impact of

climate change on traditional weather patterns has become more pronounced. This has reduced the certainty of our

modelling efforts. To the extent weather conditions continue to be impacted by climate change, the generation

capacity of certain facilities may be adversely impacted in a manner that we could not predict which may in turn

adversely impact our results of operations. In addition, the potential physical effects of climate change, such as

increased frequency and severity of storms, floods, and other climatic events, could disrupt our operations and cause

us to incur significant costs to prepare for or respond to these effects. If we experience physical damage to our

equipment and infrastructure due to climate-related natural disasters, it could lead to the suspension of our

operations, additional costs to restore service and repair facilities, and delays in power generation resulting in lost

revenue and potential exposure to legal claims. Such events could also impact our ability to obtain insurance

coverage and we may experience rising costs of insurance coverage resulting from any damages to our assets, which

could have an impact on our profitability.

Climate change could also affect the availability of secure and economical supply of water, which is essential

for our ability to secure new water well permits and continue drilling, especially in western states where we have

seen severe drought and increased prices for industrial water.

***Threats of terrorism, including cyberterrorism, or military campaigns may adversely impact our business.*** 

Our operations and facilities, in particular, our generation facilities, information technology systems and other

infrastructure facilities, systems and physical assets that we acquire, construct or develop, as well as those of third

parties on which we rely, may be targets of terrorist acts and threats, as well as events occurring in response to or in

connection with them, that could cause environmental repercussions, result in full or partial disruption of our

operations. A terrorism incident, including cyberterrorism, may also result in temporary or permanent closure of any

of our projects, which could increase our costs and decrease our cash flows. These operations and facilities are also

subject to natural disasters, public health crises, fire, power loss and telecommunication failures.

Any of our assets or those of third-party vendors could be directly or indirectly affected by such events or

activities. Any such terrorist acts, environmental repercussions or disruptions or natural disasters could result in a

significant decrease in revenues or significant reconstruction or remediation costs, which could have a material

adverse effect on the business, financial condition, results of operations and cash flows.

***The existence of a prolonged force majeure event or a forced outage affecting the wellfield, a power plant, or the*** 

***transmission systems could reduce our net income and materially and adversely affect our business, financial*** 

***condition, future results, and cash flow.*** 

The operation of our geothermal power plants is subject to a variety of risks, including events such as fires,

explosions, earthquakes, floods, severe storms, or other similar events. If a power plant experiences an occurrence

resulting in a force majeure event, although our subsidiary that owns that power plant would be excused from its

obligations under the relevant PPA, the relevant power purchaser may not be required to make any capacity and/or

energy payments with respect to the affected power plant for as long as the force majeure event continues and,

pursuant to certain of our PPAs, will have the right to prematurely terminate the PPA assuming the relevant force

majeure event continues for an extended period of time.

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Additionally, to the extent that a forced outage has occurred, and if as a result the power plant fails to attain

certain performance requirements under certain of our PPAs, the power purchaser may have the right to permanently

reduce the contract capacity (and correspondingly, the amount of capacity payments due pursuant to such

agreements in the future), seek refunds of certain past capacity payments, and/or prematurely terminate the PPA. As

a consequence, we may not receive the full value of anticipated net revenues from the affected power plant other

than, in the case of a PPA that has been prematurely terminated, the proceeds from any business interruption

insurance that applies to the force majeure event or forced outage after the relevant waiting period and may incur

significant liabilities in respect of past amounts required to be refunded.

Any future widespread public health crises, similar to COVID-19, could negatively affect various aspects of our

business, make it more difficult for us to meet our obligations to our customers, and result in reduced demand for

our products and services.

In an effort to halt the outbreak of COVID-19, a number of countries, including the United States, previously

placed significant restrictions on travel, many businesses announced extended closures, and many businesses and

governmental agencies allowed employees to work remotely, which in some cases may reduce the effectiveness of

those employees. If there is a resurgence in COVID-19 cases or a similar health crisis, travel restrictions and

business closures may, in the future, adversely affect our operations locally and worldwide, including our ability to

obtain regulatory approvals and to manufacture, market, sell or distribute our products, which could materially and

adversely affect our business.

***Nearshoring supply chain operations may not yield anticipated benefits and could introduce new risks.*** 

To enhance supply chain resilience and reduce exposure to global disruptions, we are exploring nearshoring

options to bring certain operations and suppliers closer to the U.S. While nearshoring has the potential to improve

logistics, reduce lead times, and increase supply chain transparency, it also involves significant investment,

operational complexity, and potential increases in labor and regulatory costs. Establishing new supply chain

networks and facilities requires careful planning, coordination with local authorities, and adaptation to regional

market conditions, all of which can introduce unforeseen challenges and expenses.

There is no assurance that nearshoring will result in the efficiencies or cost savings we anticipate, and the

transition process itself may disrupt existing operations or delay project timelines. Additionally, regional economic

conditions, labor market dynamics, and regulatory environments could impact the feasibility and success of these

initiatives, potentially leading to higher costs or reduced flexibility. If our nearshoring efforts fail to deliver the

expected benefits, we may face increased operational risks, diminished competitiveness, and challenges in meeting

customer and stakeholder expectations.

***Operational risks could disrupt our energy production and increase costs.*** 

Operating geothermal plants involves various risks, including equipment failures, unexpected downtime, and

safety incidents. Disruptions in plant operations can lead to reduced energy output, increased maintenance costs, and

reputational damage. Equipment failures may result from wear and tear, manufacturing defects, or inadequate

maintenance, while safety incidents could arise from human error, natural disasters, or unforeseen technical issues.

We have never operated a power plant, including a geothermal facility, which heightens these risks by increasing the

potential for operational missteps, extended ramp-up periods, and a greater reliance on third-party expertise or newly

developed internal capabilities.

We implement rigorous maintenance programs, safety protocols, and risk management strategies to minimize

operational risks and ensure the reliability of our energy production. However, unforeseen issues can still arise,

impacting our operational efficiency and financial results. Our lack of prior operating experience may also limit the

effectiveness of these programs during initial operations and could delay our ability to identify and remediate issues.

Effective contingency planning and rapid response capabilities are essential to mitigating the impact of operational

disruptions and maintaining stakeholder confidence in our ability to deliver reliable energy solutions.

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 ***Sustainability concerns, community expectations, and opposition could result in increased costs, risks and*** 

***project delays.*** 

Geothermal projects can have adverse environmental impacts, including land use changes, impacts to surface

water or groundwater resources, temporary emissions of greenhouse gases ("GHG") or other air pollutants from

diesel generators, among others. These impacts may attract public opposition, regulatory scrutiny, or legal

challenges, potentially delaying or preventing project development. Environmental advocacy groups, local

communities, and other stakeholders may raise concerns about the potential effects of our operations on natural

resources or other environmental receptors, which could lead to increased compliance costs and project

modifications.

Failure to adequately address environmental concerns could result in reputational damage, legal liabilities, or

the imposition of additional regulatory requirements. While we seek to minimize the potential adverse

environmental impacts of our operations, the potential for environmental challenges remains a material risk to our

business, as negative publicity or regulatory actions could impact our ability to secure permits, attract investment,

and maintain positive relationships with stakeholders. Even with practices such as reinjection of geothermal brine

and use of air-cooled ORC systems to reduce water usage, our projects remain subject to evolving environmental

standards and community expectations.

In recent years, attention has been given to corporate activities related to sustainability matters. In particular,

members of the investment community have begun to screen companies for sustainability performance, including

practices related to GHG emissions and climate change, and through the use of "ESG ratings" (referring to

environmental, social, and governance matters), before investing in certain companies. In addition, members of the

investment community and other parties have initiated "greenwashing" litigation alleging certain companies' claims

about the environmental benefits of their operations, products or practices are false or misleading. As a result, we

could experience additional costs or financial penalties, litigation risks, delayed projects, and/or reduced demand for

our products and services, which could have a material adverse effect on our earnings, cash flows, and financial

condition. If we do not adapt to or comply with expectations and standards on sustainability matters, or if we are

perceived to have not responded appropriately to the growing concern for sustainability issues (especially from our

stakeholders), regardless of whether there is a legal requirement to do so, we may suffer from reputational damage,

and our business and financial condition could be materially and adversely affected.

**Risks Related to Our Industry**

***Expectations regarding load growth may not materialize, and our business prospects could be harmed if*** 

***geothermal energy is not widely adopted or sufficient demand for geothermal systems does not develop or takes*** 

***longer to develop than we anticipate.***

Our growth and success are dependent on continued expansion of electricity demand driven by the rapid

increase in artificial intelligence data center development, which has contributed to record increases in electrification

and power consumption and substantial new market opportunities for energy suppliers. As hyperscale data centers

seek gigawatt-level connections to power their AI workloads, utilities and generators have seen unprecedented

requests for electricity supply, sometimes equating to the needs of entire cities. The Pew Research Center reports

U.S. data centers accounted for over 4% of national electricity use in 2024, with forecasts projecting demand

doubling or tripling by the end of the decade as AI models grow in size and complexity. The heightened demand for

reliable, large-scale generation has allowed us to pursue long-term contracts and investments in generation and

transmission infrastructure to support the evolving needs of technology customers.

However, there is no assurance that these forecasts of load growth will be accurate or that the anticipated load

growth will occur as projected. Factors such as evolving technology, improvements in energy efficiency, changes in

economic conditions, shifts in government policy or regulation, and project delays or cancellations by significant

expected offtakers (including data center facilities) could reduce or slow demand for electricity relative to current

expectations. If the anticipated load growth fails to materialize, it could have a material adverse effect on our

business, financial condition, and results of operations. Reduced need for behind-the-meter power, delayed or

cancelled data center builds or increased baseload power on the grid could lead to fewer PPAs with creditworthy

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offtakers, lower revenue and diminished growth prospects, materially harming our financial condition and operating

results.

Further, the geothermal energy market in the United States is at a relatively early stage, and the EGS market is

nascent. Although we believe our EGS approach—organized into multi-gigawatt GeoClusters and standardized 50-

megawatt GeoBlocks—meets buyer priorities of reliability, near-term deliverability, and cost-competitiveness,

demand may not develop as anticipated.

Many factors may affect demand for geothermal energy systems, including the availability of federal incentives

and state policies (such as the NEPA) categorical exclusions for certain geothermal confirmations and renewable

portfolio standard procurement, interconnection and transmission access, natural gas and other commodity prices,

relative project costs (including high-spec drilling services and ORC equipment), the success of other renewable

technologies, and the availability of customer financing.

***Our ability to maintain contracted output depends on sustaining adequate geothermal heat supply from our wells;*** 

***if we cannot, our plants may underperform and our contractual obligations may be at risk.***

Unlike conventional generators that procure external fuel, our "fuel" is the heat extracted from reservoirs where

permeability has been enhanced through stimulation. If reservoir performance does not meet expectations or

declines faster than anticipated, whether due to subsurface heterogeneity, thermal drawdown, hydraulic connectivity,

mineral scaling, or operational imbalances; available heat may be insufficient to support targeted output or

availability. In such cases, we may be required to incur additional capital to drill new wells or laterals, remediate

wells, or modify plant operations, and we could be unable to meet fixed minimum performance or availability

standards under certain PPAs. Any resulting shortfalls, damages, capacity de-rates, or termination rights could

materially and adversely affect our business, financial condition, results of operations and cash flows. As of

December 31, 2025, we had contractual commitments of $528.8 million, all of which relate to our Cape Station

Phase I and Cape Station Phase II facilities.

***Successful commercialization of new, or further enhancements to existing, alternative carbon-free energy*** 

***generation technologies may prove to be more cost-effective or appealing to the global energy markets and*** 

***therefore may adversely affect the market demand for our energy.*** 

The expected market for our power plants may be superseded or rendered obsolete by new technology or the

novel application of existing technology, including expanded nuclear (both conventional and small modular reactors

"SMRs"), increasingly paired solar/wind plus long-duration storage, hydroelectric generation or gas generation with

carbon capture. Our estimates for total addressable market and unit economics reflect current market conditions

characterized by rising grid demand from hyperscale data centers and utilities, capacity shortfalls, and procurement

preferences for clean, firm power.

However, our assumptions and the data underlying our estimates may not be correct and the conditions

supporting our assumptions or estimates may change at any time, reducing the predictive accuracy of these

underlying factors. As a result, our performance as indicated by the illustrative unit economics provided in this

prospectus, our estimates of the addressable market for our product and services, as well as the expected growth rate

for such market, may prove to be incorrect. Any material change to our assumptions or expectations with respect to

the foregoing may have a material adverse effect on our business prospects, financial condition, results of operations

and cash flows and could harm our reputation.

In addition, changes in macroeconomic conditions, rising interest rates, or shifts in buyer preferences (including

hyperscalers' evolving siting and energy strategies, or preference for behind-the-meter solutions) could delay offtake

decisions and reduce demand for our power.

***Energy prices are inherently volatile, and fluctuations can significantly impact the electricity prices we are able to*** 

***secure in future PPAs.*** 

Energy prices are subject to a multitude of factors that contribute to their inherent volatility. Geopolitical events,

supply-demand imbalances, policy shifts, and technology cost curves can influence energy markets. During periods

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of elevated wholesale prices, we may secure attractive PPA pricing and terms; however, when prices decline or

competition intensifies, negotiating advantageous PPAs can become more challenging. This volatility complicates

financial forecasting and capital planning for standardized GeoBlocks across our GeoClusters and could reduce

revenue visibility. In addition, if energy buyers prioritize lowest-cost intermittent options or defer procurement due

to market uncertainty, our ability to execute programmatic offtake could be impacted.

During periods of high energy prices, we may benefit from favorable PPA terms, allowing us to secure higher

electricity prices and enhance profitability. However, when energy prices decline, negotiating advantageous PPAs

becomes challenging, potentially leading to reduced revenue and financial strain. The unpredictability of energy

prices complicates financial forecasting and strategic planning, as companies must account for potential price

fluctuations in our projections. Additionally, the competitive landscape for PPAs may intensify during periods of

price volatility, as energy buyers seek to lock in favorable terms amidst uncertain market conditions.

The impact of energy price volatility extends beyond immediate financial considerations and can influence

investment decisions. This uncertainty can hinder growth and innovation within our business, affecting our ability to

compete with other renewable energy sources. Furthermore, fluctuating energy prices can affect stakeholder

confidence, including investors, lenders, and partners, who may perceive increased risk in the company's operations

and financial outlook. As a result, effectively managing energy price volatility and its implications for PPAs is

crucial for maintaining financial health and achieving long-term strategic objectives.

***Claims that some geothermal power plants cause increased risk of induced seismicity could impact our operating*** 

***procedures and increase our operating costs, or delay or increase the cost of further development.***

Our wellfields and operations may be subject to frequent low-level seismic disturbances, natural or induced.

Serious seismic disturbances are possible, including earthquakes, volcanic eruptions and lava flows, and could result

in damage to equipment or degraded subsurface resources to such an extent that we could not perform under the

PPA for the affected power plant, which in turn could reduce our net income and adversely affect our financial

condition and cash flow. Researchers and regulators have identified a potential link between hydraulic-stimulation

activities and seismic events, which may lead to heightened scrutiny and potential litigation in certain jurisdictions.

Another aspect of geothermal operations is the management and stabilization of subsurface impacts, including

ground subsidence or inflation, related to reservoir creation and injection. Inflation and subsidence, if not controlled,

can adversely affect agricultural operations and infrastructure at or near the land surface, prompt new permit

conditions or setbacks, result in curtailments that impair our ability to perform under affected PPAs, and increase

potential exposure to third-party claims.

If regulators impose additional restrictions, monitoring, or permitting conditions specific to EGS stimulation

and injection as part of our reservoir creation process, our ability to develop or operate projects could be delayed,

constrained, or made more costly. Public opposition to perceived or real seismic risks could also raise permitting

hurdles and community engagement costs. If we suffer a serious seismic disturbance, our insurance may be

inadequate to cover all losses, and future coverage may be more expensive or unavailable. Further, the potential for

seismic events and subsurface impacts, such as ground subsidence or inflation, associated with our operations may

expose us to litigation, including claims for property damage, personal injury, or nuisance. Even if such claims lack

merit, defending them could be costly and time-consuming. Heightened scrutiny, regulatory changes, or litigation

arising from seismic concerns could materially and adversely affect our operations, reputation, and financial

performance.

If we suffer a serious seismic disturbance due to induced seismicity, our business interruption and property

damage insurance may not be adequate to cover all losses sustained as a result thereof and insurance coverage may

not continue to be available in the future in amounts adequate to insure against such seismic disturbances.

Additionally, any such event could have a material impact on EGS's reputation and pose a risk to future

developments.

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***Changes in the availability and cost of oil, natural gas, and other forms of energy are subject to volatile market*** 

***conditions that could adversely affect our business prospects, financial condition, results of operations, and cash*** 

***flows.*** 

Decreases in energy prices or increases in the cost of geothermal energy relative to alternative generation

resources may reduce the attractiveness of our offering. We believe some purchasers currently view our product as

comparatively attractive to new natural gas generation in part due to extended delivery times and other constraints

affecting the manufacture and installation of gas-fired turbines and balance-of-plant equipment. If those

manufacturing constraints ease sooner than anticipated, or if natural gas fuel prices decline or remain depressed,

utilities and data center customers may elect to procure natural gas resources instead of geothermal in the near term.

To the extent such uncertainties cause customers to become more cost-sensitive or adjust procurement plans away

from geothermal, our business prospects and financial results could be adversely affected.

Recent industry analyses indicate that average lead times for new-build combined-cycle gas turbines have

extended to approximately five years or longer. Should these lead times contract toward historical norms, our

relative near-term competitiveness could be negatively impacted.

More broadly, the market for firm generation is evolving rapidly. If (i) natural gas generator manufacturing

transmission and interconnection bottlenecks ease for competing resources; (iv) costs for solar, storage, or other

alternatives decline; (v) technological advances, including improvements to batteries, render other energy sources

like solar, nuclear, wind or other alternative energy sources more attractive; or (vi) state or corporate

decarbonization targets are reduced or delayed due to affordability concerns, our customers may favor other

generation sources over geothermal. Any of these developments could reduce demand for our projects, impair our

ability to secure or maintain PPAs on acceptable terms, or otherwise adversely affect our business, financial

condition, and results of operations.

***Intense competition from other renewable energy sources could limit our growth and profitability.*** 

The renewable market remains highly competitive, with solar, wind, hydro, and nuclear (including SMRs) in

particular, given its capacity for baseload generation, competing for utility and hyperscaler procurement. Advances

in these technologies, declining costs, or superior access to capital and supply chain could reduce demand for EGS.

To remain competitive, we must continue to improve unit economics through EGS learning curves, deeper and

longer laterals that access higher-temperature rock, and standardized 50-megawatt ORC deployments with reliable

turbine suppliers. Failure to demonstrate a compelling cost and deliverability profile relative to competing baseload

or hybrid solutions could erode our market position and margins.

***Rapid technological change in the energy sector could reduce the competitiveness of geothermal energy.*** 

The sector is characterized by continual innovation in generation, storage, and load management. Advances in

solar, wind, nuclear and long-duration storage—combined with evolving grid planning paradigms—could reduce the

relative attractiveness of baseload resources. While our design anchors around modular GeoBlocks and standardized

ORC equipment from established manufacturers, we may not be able to maintain a cost or deliverability advantage if

other technologies achieve faster-than-expected cost declines, novel financing constructs, or improved grid

integration pathways.

To maintain our competitive edge, we must invest in research and development, adapt to changing market

conditions, and demonstrate the unique value proposition of geothermal energy, such as baseload reliability and low

carbon emissions. However, there is no guarantee that we will be able to keep pace with technological advancements

or differentiate our products and services. Failure to do so could erode our market position, reduce profitability, and

hinder our ability to achieve sustainable growth in an increasingly competitive landscape.

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***Governmental policy shifts favoring alternative baseload technologies or changing procurement mandates could*** 

***alter our competitive position.*** 

Policy developments that accelerate nuclear (including SMRs), backstop gas with carbon capture, or otherwise

prioritize non-geothermal baseload power might reduce the relative attractiveness of EGS to utilities and

hyperscalers, or redirect incentive regimes. Such shifts could impede our ability to scale programmatic offtake for

our operations, adversely impacting our development timelines and long-term growth trajectory. For example,

changes to procurement mandates, interconnection prioritization, or credit allocation could channel transmission

capacity and public support toward alternative resources. Resulting policy signals may raise our cost of capital,

require re-pricing or restructuring of pending offtake, and delay sequencing of key operations.

***Climate change could impact geothermal resources and our operations.*** 

Changes in climate patterns could affect groundwater levels, temperature, precipitation, permitting related to

water sourcing, and the efficiency of ORC systems due to ambient temperature impacts. Extreme weather events,

which are becoming more frequent and severe as a result of climate change, could damage infrastructure, interrupt

operations, or increase maintenance costs. Climate policies may introduce additional regulatory requirements or

operational constraints. While our air-cooled ORC design and brine reinjection minimize water usage relative to

water-cooled systems, climate variability and regulatory changes may still increase compliance and operational

costs, and affect development timelines within our GeoClusters.

**Risks Related to Our Financing**

***We may be unable to obtain the financing we need to pursue our growth strategy and any future financing we*** 

***receive may be less favorable to us than our current financing arrangements, either of which may adversely*** 

***affect our ability to expand our operations.*** 

Some of our geothermal power plants have been financed using leveraged financing structures, consisting of

non-recourse or limited recourse debt obligations. Each of our projects under development or construction and those

projects and businesses we may seek to acquire or construct will require substantial capital investment, including to

construct and place in service our standardized 50-megawatt ORC GeoBlocks within large GeoClusters such as

Cape Station. Our continued access to capital on acceptable or favorable terms to us is necessary for the success of

our growth strategy, particularly in enhancing our portfolio through M&A activities and executing binding PPAs

with investment-grade utilities and hyperscalers. Our attempts to obtain future financings may not be successful or

on favorable terms.

In recent years, we have also increased our corporate recourse debt at the holding company level due to our

ability to obtain improved economic terms. This additional indebtedness may make it more difficult for us to

refinance or borrow additional funds in the future, limiting our ability to pursue our growth strategy.

Market conditions and other factors may not permit future project and acquisition financings on terms similar to

those we have previously received. Our ability to arrange for financing on a substantially non-recourse or limited

recourse basis, and the costs of such financing, are dependent on numerous factors, including general economic

conditions, conditions in the global capital and credit markets, investor confidence, the continued success of current

power plants, the credit quality of the power plants being financed, the political situation in the country where the

power plant is located, and the continued existence of tax and securities laws which are conducive to raising capital;

while certain federal and state policy tailwinds may support geothermal (e.g., tax credits and streamlined

permitting), such support may not be available or sufficient. Additionally, a high-interest-rate environment can make

borrowing more expensive or limit the availability of financing options, including asset-level capital that we

otherwise expect to access. If we are not able to obtain financing for our power plants on a substantially non-

recourse or limited recourse basis, we may have to finance them using recourse capital such as direct equity

investments or the incurrence of additional debt by us.

Also, in the absence of favorable financing options, we may decide not to build new plants or acquire facilities

from third parties. Any of these alternatives could have a material adverse effect on our growth prospects.

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We may also need additional financing to implement our strategic plan. For example, our cash flow from

operations and existing liquidity facilities may not be adequate to finance any acquisitions we may want to pursue or

new technologies we may want to develop or acquire. Financing for acquisitions or technology development

activities may not be available on the non-recourse or limited recourse basis we have historically used for our

business, or on other terms we find acceptable. Even where we secure programmatic offtake or multi-year

procurement for ORC equipment and drilling services, we may still be required to provide more corporate support

than anticipated or accept restrictive covenants and security packages.

***Our debt obligations may adversely affect our ability to raise additional capital and will be a burden on our future*** 

***cash resources, particularly if we elect to settle these obligations in cash upon conversion or upon maturity or*** 

***required repurchase.***

As of December 31, 2025, we had $145.6 million in aggregate principal amount outstanding under our XRC

Facility and Credit Facility. Subsequently, on March 6, 2026, we closed the approximately $421.4 million Project

Granite Facility, further increasing our debt obligations, and on April 14, 2026, we used the proceeds from the new

Project Granite Facility to repay the XRC Facility. The Project Granite Facility is secured by the project-level assets

and equity interests of the borrower subsidiaries, contains customary covenants and includes customary events of

default, the occurrence of which could result in acceleration of the obligations thereunder or foreclosure on the

pledged collateral. Our ability to meet our payment obligations under our existing financing arrangements depends

on our future cash flow performance. This is subject to general economic, financial, competitive, legislative and

regulatory factors, as well as other factors that may be beyond our control. There can be no assurance that our

business will generate positive cash flow from operations, or that additional capital will be available to us, in an

amount sufficient to enable us to meet our debt payment obligations and to fund other liquidity needs. If we are

unable to generate sufficient cash flow to service our debt obligations, we may need to refinance or restructure our

debt, sell assets, reduce or delay capital investments, or seek to raise additional capital. Our ability to refinance our

indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to

engage in any of these activities or engage in these activities on desirable terms, which could result in a default on

our debt obligations. As a result, we may be more vulnerable to economic downturns, less able to withstand

competitive pressures and less flexible in responding to changing business and economic conditions. In addition,

delays in GeoBlock deployment, interconnection, or permitting within a GeoCluster could affect project-level cash

flows and covenant compliance.

***Our power plants have generally been financed through a combination of our corporate funds and limited or*** 

***non-recourse project finance debt and lease financing. If our project subsidiaries default on their obligations*** 

***under such limited or non-recourse debt or lease financing, we may be required to make certain payments to the*** 

***relevant debt holders, and if the collateral supporting such leveraged financing structures is foreclosed upon, we*** 

***may lose certain of our power plants.*** 

Our power plants have generally been financed using a combination of our corporate funds and limited or non-

recourse project finance debt or lease financing. Limited recourse project finance debt refers to our additional

agreement, as part of the financing of a power plant, to provide limited financial support for the power plant

subsidiary in the form of limited guarantees, indemnities, capital contributions and agreements to pay certain debt

service deficiencies. Non-recourse project finance debt or lease financing refers to financing arrangements that are

repaid solely from the power plant's revenues and are secured by the power plant's physical assets, major contracts,

cash accounts and, in many cases, our ownership interest in the project subsidiary. If our project subsidiaries default

on their obligations under the relevant debt documents, creditors of a limited recourse project financing will have

direct recourse to us, to the extent of our limited recourse obligations, which may require us to use distributions

received by us from other power plants, as well as other sources of cash available to us, in order to satisfy such

obligations. In addition, if our project subsidiaries default on their obligations under the relevant debt documents (or

a default under such debt documents arises as a result of a cross-default to the debt documents of some of our other

power plants) and the creditors foreclose on the relevant collateral, we may lose our ownership interest in the

relevant project subsidiary or our project subsidiary owning the power plant would only retain an interest in the

physical assets, if any, remaining after all debts and obligations were paid in full. While our standardized, modular

GeoBlock approach is intended to support replicable diligence and financing, there is no assurance that lenders will

ascribe the same value to such standardization across projects or through market cycles.

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In addition to the foregoing, we currently have outstanding indebtedness, and our ability to comply with the

terms of such indebtedness, refinance or repay it at maturity, and raise additional capital when needed depends on a

variety of factors, many of which are outside our control. We are party to both the Project Granite Facility and the

Credit Facility, which include a term loan and a letter of credit facility used to support development and PPA-related

security. The Credit Facility is secured by substantially all assets of our wholly owned subsidiary Fervo HoldCo

LLC, the borrower, and equity interests in certain subsidiaries and contains customary covenants and events of

default that, among other things, restrict additional indebtedness and liens, asset sales, investments, and

distributions. A breach of these covenants or other defaults could result in acceleration and foreclosure on the

pledged collateral, and may also constrain our ability to deploy cash to projects or to fund corporate operations. The

Project Granite Facility also includes customary affirmative and negative covenants, including payment and

covenant events of default. These covenants restrict additional indebtedness and liens, asset sales, investments, and

distributions. Separately, if an event of default occurs, the lender may cease making any further loan advances and/

or declare all outstanding obligations immediately due and payable. We also maintain letters of credit and surety

bonds to support our project obligations; if drawn or called, we are obligated to reimburse the issuing bank or surety

promptly, which could adversely affect our liquidity.

At the project level, we have entered into the Project Granite Facility, a construction to term financing

arrangement for our Cape Station Phase I project that is secured by first-priority liens on project assets and equity

and benefits from a limited parent guaranty for certain tax matters. This facility bears a floating interest rate and is

intended to convert into a term loan upon completion of the project. While the Project Granite Facility is generally

non-recourse to the Company, its successful repayment or refinancing is dependent on project performance, and our

successful execution of the project. If we are unable to satisfy conditions to draw remaining availability or to

refinance at acceptable terms or at all or repay this facility when due, we could be required to contribute additional

equity, limit distributions from the project, or agree to more restrictive terms in a refinancing. Defaults under our

project-level facilities could permit lenders to foreclose on project collateral and/or trigger cross-defaults under other

agreements.

We have entered into agreements related to preferred and junior preferred equity investments by Catalyst and

Centaurus in Cape Station Phase I and are also pursuing further preferred equity and related financing arrangements

at the project level for other future projects, including Cape Station Phase II. We expect Cape Station Phase II to

require approximately $2.2 billion in capital expenditures through 2028, and that we will seek to raise a significant

portion of that amount in the form of project-level debt financing. The availability of project-level financing for

certain of our projects, including Cape Station Phase II, is dependent on our ability to demonstrate firm

deliverability under existing offtake arrangements. To the extent that we are unable to secure sufficient

interconnection capacity, transmission service, or alternative delivery structures (including behind-the-meter

arrangements), lenders and other capital providers may determine that such projects are not financeable on a non-

recourse or limited recourse basis. In particular, if transmission constraints are not resolved or circumvented and we

are unable to demonstrate full deliverability under our PPAs, we may be unable to obtain project finance debt for

such projects In such circumstances, we will be required to delay, downsize or restructure such projects, or to fund a

greater portion of capital expenditures with corporate equity or other higher-cost capital, which will materially

increase our cost of capital and reduce returns. Furthermore, the timing of any alternative delivery or offtake

arrangements, including behind-the-meter structures, may not align with financing or development milestones,

which could delay or impair our ability to obtain project financing. Collectively, our existing corporate and project-

level indebtedness, letters of credit and surety arrangements, and any preferred or junior preferred project financing,

increase our fixed obligations and limit our financial and operational flexibility.

**Risks Related to Our Legal and Regulatory Concerns**

***Our business currently gains advantages from the availability of tax credits and other benefits, tax exemptions*** 

***and exclusions, and other financial incentives on the federal, state, and/or local levels. We may be adversely*** 

***affected by changes in, and application of these laws or other incentives to us, and the expiration, elimination or*** 

***reduction of these benefits could adversely impact our business.***

Our business benefits from government policies that promote and support clean energy and enhance the

economic viability of development of clean energy power generation equipment, wellfield assets, and certain other

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aspects of clean energy production and development. In the United States, various legislation and regulations

designed to support the growth of clean energy have been implemented or proposed, such as tax incentives,

renewable portfolio standards or feed-in-tariffs that support or are designed to support the sale of energy from utility

scale clean energy facilities, including geothermal energy. We rely on these incentives to lower our cost of capital

and to attract investors, all of which enable us to lower the price we charge customers for our EGS service offerings.

As a result of budgetary constraints, political factors or otherwise, governments from time to time may review such

laws and policies and take actions that may not be conducive to clean energy production and development. These

incentives could change at any time, may also expire on a particular date, in some cases end when the allocated

funding is exhausted, or may be reduced, terminated or repealed without notice. The financial value of certain

incentives may also decrease over time. Any reductions or the elimination of governmental incentives or policies

that support clean energy, such as the imposition of additional taxes or other assessments on particular sources of

clean energy, could result in the lack of a satisfactory market for the development and/or financing of our projects,

the need to abandon the development of such projects, a loss of our investments in such projects or reduced project

returns from such projects.

On July 4, 2025, the "One Big Beautiful Bill Act" ("OBBB") was signed into law. The OBBB substantially

modified the clean-energy credit regime established under the Inflation Reduction Act of 2022 (the "IRA") by

accelerating the phase-out—or, in some cases, terminating altogether—the investment tax credits ("ITCs") and

production tax credits ("PTCs") available to certain renewable energy projects that begin construction after July 4,

2026 or are not placed in service by December 31, 2027. The OBBB also restricts credits for entities linked to

countries deemed adverse to U.S. national security, complicating foreign participation and supply-chain strategies,

heightening uncertainty over eligibility and compliance.

In the United States, the IRA implemented new and enhanced many existing incentives for the development and

production of renewable energy. In particular, the IRA extended the availability of ITCs and PTCs to certain

renewable energy projects. We believe that we may benefit from ITCs and PTCs (including the energy community

and domestic content bonuses available under the ITC and PTC, in certain circumstances) with respect to qualifying

renewable energy projects.

The application of law and guidance regarding ITC and PTC eligibility to the facts of particular renewable

energy projects is subject to a number of uncertainties. The U.S. Internal Revenue Service ("IRS"), Department of

Treasury and Congress may modify existing guidance, regulations or laws with respect to the application of the IRA,

specifically to address amendments made to the ITCs and PTCs under the OBBB. It is possible that future changes

may have a retroactive effect. We may face uncertainties as a result of efforts to pass legislation to repeal,

substantially modify or invalidate some or all of the provisions of the IRA. Additionally, our operations and strategic

plans may have to change if certain provisions of the IRA were to be repealed, modified or invalidated. Furthermore,

there can be no assurance that the IRS will agree with our approach to determining eligibility for ITCs and PTCs in

the event of an audit. Any of the foregoing items could reduce the amount of ITCs or PTCs available to us.

Our business model also benefits from tax exemptions offered at the state and local levels. For example, Utah

has sales and use tax abatements for renewable projects. State and local tax exemptions can have sunset dates,

triggers for loss of the exemption, and can be changed by state legislatures and other regulators, and if clean energy

systems were not exempt from such taxes, the property taxes payable by customers would be higher, which could

offset any potential savings our EGS service offerings could offer.

In general, we benefit from certain state and local tax exemptions that apply in some jurisdictions to the sale and

purchase of equipment, sale of power, or both. These state and local tax exemptions can expire, can be changed by

state legislatures, or their application to us can be challenged by regulators, tax administrators, or court rulings. Any

changes to, or efforts to overturn, federal and state laws, regulations or policies that are supportive of clean energy

generation or that remove costs or other limitations on other types of energy generation that compete with EGS

energy production could materially and adversely affect our business.

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***We rely on government contracts and grants for a portion of our revenue and to partially fund our research and*** 

***development activities, and such contracts and grants are subject to a number of uncertainties, challenges, and*** 

***risks.***

We currently rely on government grants for a portion of our revenue and to partially fund our research and

development activities. For example, we have received a grant from U.S. Department of Energy Geothermal

Technologies Office (the "EGS Demos Grant"), which co-funds commercial-scale EGS field demonstrations to

validate the technology and derisk deployment toward grid-scale geothermal power. Changes in government

priorities or government funding reductions or delays could result in discontinuation of funding under, or

termination of, our government grants. Further, the change in U.S. presidential administration could increase this

risk. There can be no assurance that we will continue to receive funding under our government grants in the amounts

that we expect or at all.

In addition to government grants, we benefit from certain government subsidies and economic incentives,

including tax credits, rebates, and other incentives, that support the development and adoption of clean energy

technology. We cannot guarantee that government grants, subsidies, and incentives will be available to us at the

same or comparable levels in the future. Any reduction, elimination, or discriminatory application of these grants,

subsidies, or incentives in the future may require us to seek additional financing, which may not be obtainable on

commercially attractive terms or at all; adversely impact public sector demand for clean energy; and diminish the

competitiveness of the clean energy industry generally or EGS in particular. Any change in our ability to secure

these grants, subsidies, and incentives could have a material adverse effect on our business, prospects, results of

operations, and financial condition.

***Reliance on government funding may add uncertainty to our research, development and commercialization*** 

***efforts with respect to those projects that are tied to such funding and may impose requirements that limit our*** 

***ability to take specified actions, increase the costs of commercialization and production of projects developed*** 

***under those programs and subject us to potential financial penalties, which could materially and adversely affect*** 

***our business, financial condition, and results of operations.***

Certain of our development projects have been funded in part through federal and state grants like the EGS

Demos Grant. In addition to the funding we have received to date, we have applied and intend to continue to apply

for federal and state grants to receive additional funding in the future.

Contracts and grants funded by the U.S. government, state governments and their related agencies include

provisions that reflect the government's substantial rights and remedies, many of which are not typically found in

commercial contracts, including powers of the government to:

• require repayment of all or a portion of the grant proceeds, in specified cases with interest, in the event we

violate specified covenants pertaining to various matters that include a failure to achieve;

• specify milestones or terms relating to use of grant proceeds, or to comply with specified laws;

• terminate agreements, in whole or in part, for any reason or no reason;

• reduce or modify the government's obligations under such agreements without the consent of the other

party;

• claim rights, including intellectual property rights, in products and data developed under such agreements;

• audit contract related costs and fees, including allocated indirect costs;

• impose qualifications for the engagement of manufacturers, suppliers, and other contractors as well as other

criteria for reimbursements;

• suspend or debar the grantee from doing future business with the government;

• control and potentially prohibit the export of products;

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• pursue criminal or civil remedies under the federal False Claims Act, False Statements Act, and similar

remedy provisions specific to government agreements; and

• limit the government's financial liability to amounts appropriated by the U.S. Congress on a fiscal year

basis, thereby leaving some uncertainty about the future availability of funding for a program even after we

have been funded for an initial period.

In addition to those powers set forth above, the government funding we may receive could also impose

requirements to make payments based upon sales of our products, if any, in the future.

In addition, government grants normally contain additional requirements that may increase our costs of doing

business, reduce our profits, and expose us to liability for failure to comply with these terms and conditions. These

requirements include, for example:

• specialized accounting systems unique to government grants;

• mandatory financial audits and potential liability for price adjustments or recoupment of government funds

after such funds have been spent;

• public disclosures of some contract and grant information, which may enable competitors to gain insights

into our research program; and

• mandatory socioeconomic compliance requirements, including labor standards, nondiscrimination

programs, and environmental compliance requirements.

We have previously been audited in connection with federal grants received and we have been found to have

material weaknesses. If we fail in the future to maintain compliance with any such requirements that may apply to

us, we may be subject to potential liability and to termination of our contracts.

***Litigation, legal proceedings, regulatory investigations or other administrative proceedings could expose us to*** 

***significant liabilities and reputational damage that could have a material adverse effect on us.*** 

We are involved, in the ordinary course of business, in lawsuits and administrative matters spanning

employment, commercial, and environmental issues, and we may face additional regulatory inquiries as we scale

GeoClusters and deploy modular 50-megawatt GeoBlocks. We are also involved, in the ordinary course of business,

in regulatory investigations and other administrative proceedings, and we are exposed to the risk that we become the

subject of additional regulatory investigations or administrative proceedings. Evaluations of these matters require

judgment and may prove inaccurate; adverse outcomes or settlements could be material. As we expand our EGS

footprint, including at Cape Station, any litigation or investigation could delay development timelines, complicate

permitting, constrain programmatic offtake with investment-grade buyers, or increase costs, adversely affecting our

business, results of operations, and cash flows.

We evaluate litigation claims and legal proceedings to assess the likelihood of unfavorable outcomes and to

estimate, if possible, the amount of potential losses. Based on these evaluations and estimates, when required by

applicable accounting rules, we establish reserves and disclose the relevant litigation claims or legal proceedings, as

appropriate. These evaluations and estimates are based on the information available to management at the time and

involve a significant amount of judgment. Actual outcomes or losses may differ materially from current evaluations

and estimates. The settlement or resolution of such claims or proceedings may have a material adverse effect on us.

We use appropriate means to contest litigation threatened or filed against us, but the litigation environment poses a

significant business risk.

***Tariffs on key equipment or materials used in geothermal development could increase project costs, delay*** 

***timelines, and impact our financial performance.*** 

While our current supplier mix and procurement strategy are intended to limit direct exposure to tariffs, we

remain subject to tariff-related cost and schedule impacts, and changes in trade policy could, in certain scenarios,

materially affect our results. Our projects depend on timely, cost-effective procurement of specialized inputs,

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including drilling equipment and tubulars, heat exchangers, transformers, and binary, air-cooled ORC components.

While our supply chain is intentionally concentrated in U.S.-based providers and manufacturers in key U.S. partner

nations, and our drilling services and rigs are sourced predominantly from established domestic oilfield services

providers, changes in trade policy, including the imposition of new tariffs, modification of existing tariffs, retaliatory

measures, or import restrictions could raise costs, reduce supplier availability, or elongate lead times. Even where

domestic alternatives exist, technical specifications, quality requirements, or long manufacturing cycles may limit

substitution for standardized GeoBlocks.

Residual tariff exposure exists for select long-lead components and subcomponents, including certain ORC

modules and auxiliaries, air-cooled condensers, transformers and other grid-related electrical equipment, specialty

alloys, heat exchangers, and electrical gear that may include imported content. If tariffs or similar trade barriers

materially increase the cost or reduce the availability of these inputs, we could face budget overruns, re-sequencing

of GeoBlock deliveries within a GeoCluster, renegotiation of supply contracts, and schedule delays that impair

deliverability under PPAs and reduce revenue visibility. Broader or higher tariffs affecting allied-country suppliers

or critical subcomponents, or the removal of exemptions, could elevate our exposure above current levels.

We mitigate tariff risk through diversified sourcing from allied jurisdictions, multi-year procurement

frameworks for ORC and balance-of-plant equipment, and a modular development approach that provides

scheduling flexibility. Notwithstanding these measures, adverse changes in trade policy or market conditions could

still negatively affect our operating results, cash flows, and overall financial performance.

***Our financial performance could be adversely affected by changes in the legal and regulatory environment*** 

***affecting our operations.*** 

Our wellfields and power plants are subject to extensive federal, state, and local regulation. Changes in

applicable laws, regulations, or their interpretation—covering areas such as interconnection, environmental

compliance, or tax—could increase compliance costs, require additional capital expenditures, or curtail benefits on

which our standardized deployments rely. We or our power purchasers may be unable to obtain required approvals,

amendments, or renewals on a timely basis. Adverse legal or regulatory changes could reduce revenues at one or

more facilities and negatively affect our business, financial condition, results of operations, and cash flows.

***Lengthy and uncertain permitting processes could delay or prevent project development.***

Developing geothermal projects requires approvals from federal, state, and local authorities, often with

extensive environmental review and public consultation. Even with recent policy tailwinds—such as continued

federal tax credits for geothermal and certain streamlining measures—permitting timelines remain uncertain and

subject to change. For instance, in Nevada, there is no streamlined permitting regime for obtaining a single

Underground Injection Control ("UIC") permit for an entire geothermal project. Currently, we require UIC permits

from the Nevada Division of Environmental Protection ("NDEP") for each well used for underground injection,

which has created an administrative burden. We have submitted applications for, but have not yet been able to

obtain, a UIC permit in Nevada; however, NDEP has granted us a series of temporary 30-day permits for each well

to allow underground injection and re-issued such temporary permits every 30 days. The inability to obtain UIC

permits or temporary 30-day permits to allow for underground injection, and other delays and administrative

burdens could increase costs, affect scheduling for GeoBlock delivery, and disrupt standardized deployment plans at

GeoClusters.

Regulatory changes, heightened environmental scrutiny, or local opposition could further complicate

permitting, potentially resulting in costly modifications or litigation and, in some cases, project cancellations. In

some cases, permitting delays may force us to abandon projects altogether, resulting in sunk costs and lost

opportunities. Our ability to execute our business strategy and achieve our growth objectives depends on our

capacity to navigate these complex regulatory environments and secure timely approvals for our projects.

***We could be negatively impacted by uncertain potential regulatory and other responses to climate change.*** 

While our EGS technology provides firm power within a reinjected, closed-loop brine system and uses

air-cooled ORC to minimize water use, evolving GHG and climate policies may impose new monitoring, reporting,

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or operational requirements. Federal and state regimes continue to change, and uncertainty regarding scope, timing,

or implementation could complicate development timelines, increase costs, or shift competitive dynamics with

alternative clean, firm resources such as nuclear (including SMRs) or gas with carbon capture. Such changes could

affect our ability to renew existing PPAs, secure offtake for future GeoBlocks, or maintain margins across

GeoClusters.

The U.S. Environmental Protection Agency (the "EPA") has adopted rules that, among other things, establish

construction and operating permit reviews for GHG emissions from certain large stationary sources, require the

monitoring and reporting of GHG emissions from certain sources, and implement standards directing the reduction

of methane from certain facilities in the oil and gas sector. Additionally, various states have adopted or are

considering adopting legislation and regulation focused on GHG cap-and-trade programs, carbon taxes, reporting

and tracking programs and emissions limits. Uncertainty associated with these regulations, our inability to meet the

demands of these regulations or our failure to predict accurately the impact of our response to these regulations

could adversely affect our business and prospects.

***The reduction, elimination or inability to monetize government incentives could adversely affect our business,*** 

***financial condition, future results, and cash flows.*** 

Our development program contemplates the availability of federal and state incentives, including tax credits

applicable to geothermal and supportive policies such as NEPA categorical exclusions for certain geothermal

confirmation activities. If existing incentives are reduced, phased out, or made more restrictive—including through

legislative changes like OBBB accelerating phase-outs or imposing nationality-linked eligibility constraints—project

economics for current and future GeoBlocks could deteriorate. Constraints on transferability or pricing of ITCs/

PTCs, changes to renewable portfolio standards, or shifts in treatment of domestic content and energy community

adders could reduce returns, delay construction schedules, or limit access to project-level capital.

Similarly, any such changes that affect the geothermal energy industry in a manner that is different from other

sources of renewable energy, such as wind or solar, may put us at a competitive disadvantage compared to

businesses engaged in the development, construction and operation of renewable power projects using such other

resources. In addition, although we may have the legal ability to monetize ITCs and PTCs, our ability to do so is

subject to market prices and demand, which may be lower than we anticipate. Any of the foregoing outcomes could

have a material adverse effect on our business, financial condition, future results, and cash flows.

***California energy import rule changes could compromise our ability to meet existing contract energy delivery.*** 

A significant majority of our expected revenues are derived from deliveries to California counterparties under

long-term, binding PPAs, including with an investor-owned utility and multiple community choice aggregators.

While these agreements generally contemplate compliance with California RPS requirements and CAISO market

protocols, modifications to California import rules (such as changes to transmission scheduling and Available

Import Capability), market participation and tagging requirements, greenhouse-gas accounting for imports, or RPS/

Portfolio Content Category 1 eligibility could restrict deliverable volumes, increase compliance costs, or impair the

marketability of associated RECs. Certain agreements include change-in-law and import-capacity provisions that

allocate some risks (for example, where a buyer's failure to secure import capability does not constitute a seller

default), but such provisions may not fully offset the commercial impacts of adverse rule changes. If we are unable

to deliver contracted energy due to such regulatory developments, we could incur contractual penalties, experience

curtailments or forced rescheduling, need to renegotiate terms, face strained counterparty relationships, or encounter

challenges securing future offtake, each of which could adversely affect our revenues and growth plans.

***We are subject to extensive regulation by FERC and state utility regulators, and changes in those regimes—or*** 

***our failure to comply—could adversely affect our operations, offtake arrangements and revenues.***

Our power marketing and transmission-related activities are, or will be, subject to the jurisdiction of the Federal

Energy Regulatory Commission ("FERC"), including with respect to market-based rate authority, affiliate

restrictions, reporting, and compliance obligations. We also may be subject to state utility commission oversight in

connection with interconnection, retail/wholesale market participation, certificate or licensing requirements, and

other state-level rules that affect scheduling, deliverability and cost recovery. These federal and state regulatory

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frameworks are complex and evolve over time. Any revocation, limitation or delay in obtaining or maintaining

applicable authorities or approvals, or any non-compliance—whether by us or relevant counterparties—could

restrict our ability to sell energy or capacity, affect the terms on which we transact, require changes to our

contractual arrangements, or result in penalties and increased compliance costs. In addition, changes to FERC rules,

regional market designs, transmission tariffs, or state commission policies could affect the value, deliverability, or

scheduling of our projects, the marketability of RECs associated with our output, or our ability to meet obligations

under our PPAs. Any of the foregoing could have a material adverse effect on our business, financial condition,

results of operations and cash flows.

***We are subject to extensive regulation by NERC standards, and non-compliance or changes in these standards*** 

***could materially and adversely affect our business and operations.*** 

The North American Electric Reliability Corporation ("NERC"), under the direction of the FERC, has

implemented mandatory NERC Operations and Planning and Critical Infrastructure Protection standards to ensure

the reliability of the North American Bulk Electric System, which encompasses electric transmission and generation

systems to prevent major system blackouts. NERC Critical Infrastructure Protection standards establish

cybersecurity and physical security protections for critical systems and facilities. We have been, and will continue to

be, periodically audited by NERC for compliance with both Operations and Planning and Critical Infrastructure

Protection standards and are subject to penalties for non-compliance with applicable NERC standards. Failure to

comply with these standards could result in penalties or increased costs to bring such facilities into compliance,

which could materially adversely impact our business, results of operations, and cash flows. Additionally, adverse

audit findings and/or penalties for non-compliance could pose reputational risks to us that could adversely affect our

business.

***U.S. federal and state income tax law changes could adversely affect us.*** 

Our financial performance may be affected by tax law changes that alter credit monetization, depreciation

regimes, loss utilization, or cross-border tax rules that intersect with our supply chain. Uncertainty around future

statutory changes or guidance can complicate capital formation for standardized GeoBlocks, reduce after-tax returns,

and affect the timing and structure of our project financings.

***The cost of compliance with environmental laws and our ability to obtain and maintain environmental permits*** 

***and governmental approvals required for operations may result in liabilities, costs, and delays that could*** 

***materially and adversely affect our business.*** 

Our operations are subject to extensive environmental laws, ordinances and regulations, which may cause us to

incur significant costs and liabilities. These laws, ordinances and regulations are subject to change and such change

could result in increased compliance costs, the need for additional capital expenditures, or otherwise adversely affect

us. Our power plants are required to comply with numerous federal, state, and local laws and regulatory

environmental standards and must obtain, maintain, and periodically renew numerous permits and approvals, some

with conditions tied to emissions, discharges, or operational restrictions. Heightened scrutiny, third-party challenges,

or evolving standards could necessitate costly modifications or cause delays that disrupt GeoBlock sequencing

within a GeoCluster. We may not be able to maintain, obtain or renew all environmental permits and governmental

approvals required for the continued operation or further development and construction of the power plants,

including rights-of-way and other federal approvals for our projects on federal lands. We have not yet obtained

certain permits and government approvals required for the completion and successful operation of power plants

under development, construction or enhancement. Our failure to maintain, obtain or renew required permits or

governmental approvals, including the permits and approvals necessary for operating power plants under

development, construction or enhancement, could cause our operations to be limited or suspended resulting in fines

under the PPA. We may also be subject to litigation seeking to rescind or delay our receipt of environmental permits

and governmental approvals.

Failure to secure or maintain permits—or to comply with permit conditions—could prevent or delay project

development, or trigger enforcement, fines, or orders limiting operations, any of which could impact PPA

performance and cash flows. In addition, some of the environmental permits and governmental approvals that have

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been issued to the power plants are granted for limited periods and contain certain conditions and restrictions,

including restrictions or limits on emissions and discharges of pollutants and contaminants. If we fail to obtain

necessary permit renewals, or satisfy permit conditions, comply with permit restrictions, or comply with any

statutory or regulatory environmental standards, we could become subject to regulatory enforcement action, our

permits could be revoked and the operation of the power plants could be adversely affected. We could also be

subject to fines, penalties or additional costs or other sanctions, including the imposition of investigatory or remedial

obligations or the issuance of orders limiting or prohibiting our operations.

Our operations are also subject to numerous federal and state regulatory standards related to the generation,

handling, transportation, use, storage, treatment and disposal of hazardous substances. Our operations involve the

storage and use of hazardous substances, including but not limited to, drilling fluid additives, fuels, lubricants, and

chemicals used in well construction, reservoir management, and plant operations. If any of the hazardous substances

we use in the course of operations are found to have been released into the environment in violation of, or

noncompliance with, applicable environmental laws, we could become liable for the investigation and remediation

of those hazardous substances, regardless of their source and time of release. For example, equipment failure or

extreme weather could result in spills or unauthorized discharges of hazardous substances to soil, surface water, or

groundwater. Failure to comply with environmental laws, including those governing hazardous substances, could

subject us to civil or criminal liability, the imposition of liens or fines, interruption of drilling or power production,

delay in project schedules, costly design or operational modifications, or cessation of operations. Furthermore, under

certain applicable environmental laws, we could be held liable for the cleanup of releases of hazardous substances at

any other locations where we have arranged for the disposal of those substances, even if we did not cause the release

at that location or if the release complied with applicable laws at the time it occurred. Liability pursuant to these

laws is often strict, joint and several. The cost of remedial action in connection with any spills or releases of

hazardous substances could be significant and may expose us to material liability.

***Environmental or archeological issues (such as endangered species) may be discovered or identified in the*** 

***construction our projects, which result in delays or inability to proceed.*** 

The Endangered Species Act ("ESA") and Migratory Bird Treaty Act ("MBTA") govern the land on our leases.

In addition, further restrictions may be imposed in the future, which could have an adverse impact on our ability to

expand some of our existing operations or limit our ability to develop new infrastructure on our leased land. The

ESA and comparable state laws restrict activities that may result in negative impacts to endangered or threatened

species or their habitats. Similar protections are offered to migratory birds under the MBTA and comparable state

laws. To the degree that species listed or protected under the ESA, MBTA or similar state laws are identified in the

areas where we operate, our ability to conduct or expand operations and construct facilities could be limited, and we

and could be forced to incur additional material costs that may have a material effect on our business. Additionally,

discovered cultural resources, particularly tribal cultural resources, could have an impact on our ability to develop on

our leased land.

***Site decommissioning, well plugging, and financial assurance obligations could increase costs, constrain*** 

***liquidity, and expose us to liability***

Our operations, including our operations on federal lands and on private lands that we do not own, may be

subject to end-of-life obligations to plug and decommission wells, dismantle facilities, and/or restore sites, and while

we accrue asset retirement obligations, actual costs may materially exceed estimates due to inflation, scope changes,

site conditions, or evolving technical and regulatory standards. In addition, government agencies and other lessors

may tighten restriction criteria or increase bonding requirements associated with decommissioning activities.

***Our reliance on U.S. government land leases exposes us to regulatory and operational risks.*** 

A substantial portion of our geothermal projects are located on land leased from the U.S. government,

particularly in Utah and Nevada. These leases are subject to federal regulations, administrative changes, and

evolving political priorities, which may impact our ability to maintain, renew, or expand our leasehold interests. The

terms and conditions of government leases can be modified at any time, and there is a risk that future lease renewals

may be subject to more stringent requirements, higher costs, or even denial. Additionally, the government may

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impose new environmental, safety, or land use restrictions that could limit our operational flexibility or require

costly compliance measures.

Any adverse changes in lease terms, delays in renewals, or increased regulatory scrutiny could disrupt our

operations, require us to relocate projects, or result in the loss of valuable assets. The process of securing and

maintaining government leases is complex and time-consuming, often involving multiple agencies and extensive

public consultation. Heightened environmental scrutiny or shifts in land use policy could further complicate this

process, potentially leading to project delays, increased costs, or the need to abandon certain sites altogether. Our

growth prospects and financial performance are closely tied to our ability to navigate these regulatory challenges and

maintain favorable lease arrangements.

***Changes to environmental regulations governing well drilling, hydraulic fracturing, water sourcing and disposal,*** 

***and subsurface injection could restrict operations or increase costs.***

Federal and state agencies could revise permitting standards (including under NEPA/CEQA, the Clean Water

Act, and Safe Drinking Water Act underground injection control programs), impose additional baseline or ongoing

monitoring, limit produced-water reinjection volumes or chemistry, tighten water-rights or groundwater allocations,

or require alternative disposal pathways. Such changes could delay or prevent drilling, require redesign of

engineered reservoirs or operations, increase operating and compliance costs, or constrain output. Although our

design reinjects geothermal brine and uses air-cooled ORC to minimize water use, evolving standards for well

construction and integrity, stimulation fluids, surface discharges, and waste handling could materially affect

schedules, capital needs, and PPA performance. For example, our inability to obtain a UIC in Nevada for reinjection

wells could delay or prevent operations, force costlier disposal options, or require material project redesign.

In particular, reservoir stimulation techniques, including certain hydraulic fracturing practices, are used in parts

of the geothermal industry to enhance permeability and improve the productivity of geothermal reservoirs. These

activities can involve the injection of water and other additives under pressure into targeted subsurface formations to

increase fracture connectivity and facilitate heat extraction. We may use such stimulation techniques in connection

with our EGS operations. Regulation of geothermal well construction, reservoir stimulation, and related activities

typically occurs at the state level. However, federal agencies, including the EPA, have asserted or may assert

authority under federal environmental laws, including the Safe Drinking Water Act, over certain underground

injection activities. For example, the EPA has issued guidance and regulations governing underground injection

control programs and has promulgated rules that restrict or prohibit the discharge of certain wastewaters to publicly

owned treatment works, which can affect how fluids associated with drilling and stimulation are managed and

disposed.

Congress has, from time to time, considered and may in the future consider, legislation that would expand

federal oversight of underground injection and stimulation practices, including requirements for permitting and

disclosure of chemicals used in stimulation fluids. We cannot predict the timing, scope or outcome of any such

legislative efforts. At the state level, several jurisdictions have adopted or are considering more stringent permitting,

disclosure, induced-seismicity monitoring, and well construction requirements, applicable to reservoir stimulation

activities. Local governments may also seek to regulate the time, place, and manner of drilling and related field

activities within their jurisdictions, and some jurisdictions have pursued or may pursue restrictions or bans on certain

stimulation practices. If new or more stringent federal, state, or local requirements relating to geothermal

stimulation, underground injection, water management, seismic monitoring, or well construction are adopted in

areas where we operate, we could incur significant additional costs to achieve compliance, experience delays or

curtailment in EGS, development and production activities, or face constraints on wastewater handling and disposal

options.

**Risks Related to Information Technology, Cybersecurity, Data Privacy and Intellectual Property** 

***Our intellectual property rights may not be adequate to protect our business.***

Our existing intellectual property rights may not be adequate to protect our business. We occasionally file patent

applications which cover our systems (mainly geothermal wells and power plants for electricity production).

However, the patent application process is expensive, time-consuming, uncertain and complex and we may not be

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able to prepare, file, prosecute, maintain and enforce all necessary or desirable patents or patent applications at a

reasonable cost or in a timely manner. Patents may not be issued on the basis of our patent applications, and issued

patents may be invalidated. Additionally, the scope of patent protection can be reinterpreted after issuance. Even if

our patent applications do issue as patents, they may not issue in a form that is sufficiently broad to protect our

technology, prevent competitors or other third parties from competing with us or otherwise provide us with a

competitive advantage. In addition, any patents issued to us or for which we have license rights may be challenged,

narrowed, invalidated or circumvented. Third parties may initiate opposition, interference, re-examination, post-

grant review, inter partes review, nullification or derivation actions, or similar proceedings challenging the

inventorship, validity, enforceability or the scope of our patents. An adverse determination in any such proceeding

or litigation could reduce the scope of, or invalidate our patent rights, allow third parties to commercialize our

technology and compete directly with us, without payment to us, or result in our inability to commercialize our

technology without infringing third-party patent rights. Such proceedings also may result in substantial cost and

require significant time from our management, even if the eventual outcome is favorable to us. Our competitors or

other third parties may also be able to circumvent our patents by developing similar or alternative technologies in a

non-infringing manner. Consequently, we cannot guarantee that our technology will be protectable or remain

protected by valid and enforceable patents.

In order to safeguard our unpatented proprietary know-how, trade secrets and technology, we rely on a

combination of trade secret protection and non-disclosure provisions in agreements with employees and third parties

having access to confidential or proprietary information. These measures may not adequately protect us from

disclosure, use, reverse engineering, infringement, misappropriation or other violation of our proprietary information

and other intellectual property rights by third parties. Furthermore, non-disclosure provisions can be difficult to

enforce and, even if successfully enforced, may not be entirely effective.

Even if we adequately protect our intellectual property rights, litigation may be necessary to enforce these

rights, which could result in substantial costs to us and a substantial diversion of management attention.

Furthermore, attempts to enforce our intellectual property rights against third parties could also provoke these third

parties to assert their own intellectual property or other rights against us, or result in a holding that invalidates or

narrows the scope of our rights, in whole or in part.

Our success and ability to compete also depends in part on our ability to operate without infringing,

misappropriating or otherwise violating the intellectual or proprietary rights of third parties. While we have

attempted to ensure that our technology and the operation of our business does not infringe other parties' patents and

other intellectual property or proprietary rights, our competitors or other third parties may assert that certain aspects

of our business or technology infringe upon, misappropriate or otherwise violate their intellectual property or

proprietary rights. In addition, former employers of our current, former or future employees may assert claims that

such employees have improperly disclosed to us the confidential or proprietary information of these former

employers. Infringement, misappropriation or other intellectual property violation claims, regardless of merit or

ultimate outcome, can be expensive, hard to predict and time-consuming and can divert management's attention

from our core business. An assertion of an intellectual property infringement, misappropriation or other violation

claim against us may result in adverse judgments, settlements on unfavorable terms or cause us to pay significant

money damages, lose significant revenues, be prohibited from using the relevant technology or other intellectual

property, or incur significant license, royalty or technology development expenses. Future litigation may also

involve non-practicing entities or other intellectual property owners who have no relevant product offerings or

revenue and against whom our own intellectual property may therefore provide little or no deterrence or protection.

***Third parties may allege that we are infringing, misappropriating, or otherwise violating their intellectual*** 

***property rights, which could involve substantial costs and adversely impact our business.***

Our success in part depends on our ability to develop, manufacture, market and sell our technologies without

infringing, misappropriating or otherwise violating the intellectual property rights of third parties. Furthermore, we

cannot guarantee that the operation of our business does not and will not infringe or violate the rights of third

parties. For example, because some patent applications are maintained in secrecy for a period of time, there is a risk

that we could develop a product or technology without knowledge of a pending patent application, which product or

technology would infringe a third-party patent once that patent is issued.

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We have in the past, and may in the future, be subject to claims by third parties alleging that we have infringed,

misappropriated or otherwise violated their intellectual property rights. Any such claims, even those without merit,

can be expensive and time-consuming to defend and may divert management's attention and resources, and an

adverse result in any proceeding could put our ability to produce, market and sell our technologies in jeopardy. The

outcome of any litigation is inherently uncertain, and there can be no assurances that favorable final outcomes will

be obtained in all cases. We may be required to spend significant resources to defend against such claims, pay

significant money damages, cease using certain processes, technologies, trademarks or other intellectual property,

cease making, offering and selling certain technologies, obtain a license (which may not be available on

commercially reasonable terms or at all) or redesign all or a portion of our technologies or change our branding

(which could be costly, time-consuming, or impossible). While no such claims have been material to date, there is

no guarantee that future claims would not have a material effect on our business.

The defense costs and settlements for intellectual property infringement lawsuits may not be covered by

insurance. Intellectual property infringement lawsuits can take years to resolve. If we are not successful in our

defenses or are not successful in obtaining dismissals of any such lawsuit, legal fees or settlement costs could have

an adverse effect on our operations and financial position. Even if resolved in our favor, the volume of intellectual-

property-related claims and the mere specter of threatened litigation or other legal proceedings may cause us to incur

significant expenses and could distract our personnel from day-to-day responsibilities. The direct and indirect costs

of addressing these actual and threatened disputes may have an adverse effect on our operations, reputation, and

financial performance.

In addition, some of our agreements with third parties require us to indemnify them for certain intellectual

property claims against them, which could require us to incur considerable costs in defending such claims, and may

require us to pay significant damages in the event of an adverse ruling. Such third-party partners may also

discontinue their relationships with us as a result of injunctions or otherwise, which could result in loss of revenue

and adversely impact our business operations.

***A cyber-incident, cyber security breach, severe natural event or physical attack on our operational networks and*** 

***information technology systems could have a material adverse effect on our financial condition, results of*** 

***operations, liquidity and cash flows.*** 

We rely on information technology systems that allow us to create, store, retain, transmit and otherwise process

proprietary and sensitive or confidential information, including our business and financial information, and personal

information regarding our employees and third parties. We also rely on our operational technology systems to

operate our power plants and provide our services. In addition, we often rely on third-party vendors to host,

maintain, modify and update our systems.

Our and our third-party vendors' technology systems can be damaged by malicious events such as cyber and

physical attacks, computer viruses, ransomware, malicious and destructive code, phishing attacks, denial of service

or information, as well as security breaches, natural disasters, fire, power loss, telecommunications failures,

employee misconduct, human error, and third parties such as traditional computer hackers, persons involved with

organized crime or foreign state or foreign state-supported actors. Furthermore, our disaster recovery planning may

not be sufficient for all situations. Any failure, disruptions to or decrease in the functionality of our or our third-party

vendors' operational and information technology networks could impact our ability to maintain effective internal

controls over financial reporting, cause harm to the environment, the public or our employees, and significantly

disrupt and damage our assets, reputation and operations or those of third parties.

We and our third-party vendors may in the future be subject to breaches and attempts to gain unauthorized

access to our information technology systems or sensitive or confidential data, or to disrupt our operations. To date,

none of these breaches or attempts has, individually or in the aggregate, resulted in a security incident with a

material effect on our operations or our financial condition, results of operations, liquidity, or cash flows. Despite

implementation of security and control measures, we and our third-party vendors have not always been able to, and

there can be no assurance that we or our third-party vendors will be able to in the future, anticipate or prevent

unauthorized access to our or our third-party vendors' operational technology networks, information technology

systems or data, or the disruption of our or our third-party vendors' operations. The techniques used to obtain

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unauthorized access to our and our third-party vendors' operational technology networks, information technology

systems or data are constantly evolving and have become increasingly complex and sophisticated. Furthermore, such

techniques change frequently and are often not detected until after they have been launched against a target.

Therefore, we may be unable to anticipate these techniques and may not become aware in a timely manner of such a

security breach, which could exacerbate any damage we experience. Such events could cause interruptions in the

operation of our business, damage our operational technology networks and information technology systems, subject

us to significant expenses, remediation costs, litigation, disputes, claims by third parties and regulatory actions or

investigations that could result in damages, material fines and penalties, and harm to our reputation, any of which

could have a material adverse effect on our financial condition, results of operations, liquidity, and cash flows. We

may maintain cyber liability insurance that covers certain damages caused by cyber incidents. However, there is no

guarantee that adequate insurance will continue to be available at rates that we believe are reasonable or that the

costs of responding to and recovering from a cyber incident will be covered by insurance or recoverable in rates.

In addition, we are subject to various legislation, regulations, directives and guidelines from federal, state, local

and foreign agencies, such as FERC, that are intended to strengthen cybersecurity measures required for information

and operational technology and critical energy infrastructure and that apply to the collection, use, retention,

protection, disclosure, transfer and other processing of personal information. In California, for example, the

California Consumer Privacy Act (the "CCPA") imposes obligations on businesses to be transparent with their data

privacy practices and vests consumers with rights to access and delete the personal information held by businesses.

These requirements are even more robust under the California Privacy Rights Act (the "CPRA") which amends the

CCPA to, among other things, extend consumer rights and business obligations to employees. These cybersecurity,

data protection and privacy law regimes continue to evolve and may result in ever-increasing public scrutiny and

escalating levels of capital expenditures, regulatory enforcement, sanctions and fines and increased costs for

compliance. We have instituted security measures and safeguards to protect our operational systems and information

technology assets, including certain safeguards required by FERC. Despite our implementation of security measures

and safeguards, any failure to comply with FERC or any of these legal requirements could result in enforcement

action against us, including fines, imprisonment of company officials and public censure, any of which could harm

our reputation and have a material adverse effect on our financial condition, results of operations, liquidity, and cash

flows.

***Our use of artificial intelligence and machine learning technologies could adversely affect our products and*** 

***services, harm our reputation, or cause us to incur liability resulting from harm to individuals or violation of*** 

***laws and regulations or contracts to which we are a party.***

We use artificial intelligence, machine learning and automated decision-making technologies in several core

parts of our business, including for subsurface sensing and monitoring, production forecasting, and wellfield design

and optimization. For example, we deploy AI-enhanced fiber optic sensing in our wells to measure reservoir

conditions in real time and to monitor flow rates, pressures and temperatures; we apply proprietary AI-based

modeling, including errors in data underlying such AI models, advanced data analytics and computational science to

analyze more than 500 terabytes of downhole and operational data collected to date; and we use these tools to

predict future well output, inform well spacing and completion design, and optimize wellfield configuration and

reservoir management over time. We are dedicating resources and efforts to continuously improve our use of such

technologies. As with many technological innovations, there are significant risks and challenges involved in

developing, maintaining and deploying these technologies and there can be no assurance that the usage of such

technologies will always enhance our solutions or be beneficial to our business, including our efficiency or

profitability.

In particular, if the models underlying the artificial intelligence, machine learning and automated decision-

making technologies that we develop or use are: (i) incorrectly designed or implemented; (ii) trained or reliant on

incomplete, inadequate, inaccurate, biased or otherwise poor quality data, or on data to which we do not have

sufficient rights or in relation to which we and/or the providers of such data have not implemented sufficient legal

compliance measures (including with respect to the processing and protection of such data); (iii) used without

sufficient oversight or governance to ensure their responsible and ethical use; and/or (iv) adversely impacted by

unforeseen defects, technical challenges, cybersecurity threats or material performance issues, the performance of

our products, services and business, as well as our reputation and the reputations of our customers and business

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partners, could suffer or we could incur liability resulting from harm to individuals, civil claims or the violation of

laws or contracts to which we are a party. For example, errors in our AI-enhanced fiber optic sensing, our

proprietary AI-based modeling, including errors in data underlying such AI models, or our production forecasting

could lead to inaccurate predictions of well output, suboptimal well spacing or completion designs, or misinformed

reservoir management decisions, which could in turn reduce generation, increase costs, delay projects, or cause

safety, environmental or contractual compliance issues.

**Risks Related to Our Employees and Workforce**

***We are highly dependent on our senior management team and other highly skilled personnel, and if we are not*** 

***successful in attracting or retaining highly qualified personnel, we may not be able to successfully implement our*** 

***business strategy.*** 

Our success depends, in significant part, on the continued services of our senior management team and on our

ability to attract, motivate, develop, and retain a sufficient number of other highly skilled personnel, including

engineering, science, manufacturing and quality assurance, regulatory affairs, finance, marketing and sales

personnel.

Our senior management team has extensive experience in the energy and manufacturing industries, and we

believe that their depth of experience is instrumental to our continued success. The loss of any one or more members

of our senior management team or other highly skilled personnel, for any reason, including resignation or retirement,

could impair our ability to execute our business strategy and have a material adverse effect on our business and

financial condition if we are unable to successfully attract and retain qualified and highly skilled replacement

personnel.

***Our business plan requires us to attract and retain qualified personnel including personnel with highly technical*** 

***expertise. Our failure to successfully recruit and retain experienced and qualified personnel could have a*** 

***material adverse effect on our business.*** 

Our future success depends in part on our ability to contract with, hire, integrate, and retain highly competent

geothermal and drilling focused engineers and scientists, and other qualified personnel.

Competition for the limited number of these skilled professionals is intense. If we are unable to adequately

anticipate our needs for certain key competencies and implement human resource solutions to recruit or improve

these competencies, our business, results of operations and financial condition could suffer. If we are unable to

recruit and retain highly skilled personnel, especially personnel with sufficient technical expertise to develop our

wellfields, horizontal drilling operations and power plants, we may experience delays, increased costs, and

reputational harm. A shortage in the labor pool of skilled workers in the U.S., or other general inflationary pressures

or changes in applicable laws and regulations, could make it more difficult for us to attract and retain qualified

personnel and could require an increase in the wage and benefits packages that we offer, thereby increasing our

operating costs. For example, the IRA imposed certain prevailing wage and apprenticeship requirements, and the

OBBB retained such requirements, related to tax credit availability which may impact our labor costs going forward.

Any increase in our operating costs could materially and adversely affect our business, financial condition, operating

results, liquidity and prospects.

Some of the work performed by our employees may be subject to the IRA's prevailing wage and apprenticeship

requirements. Internalizing our workforce may result in increased costs due to increases in prevailing wages or

hiring additional workers as apprentices. We may also face increased recordkeeping and administrative costs

associated with demonstrating compliance with prevailing wage and apprenticeship requirements. The U.S. Treasury

has issued only limited guidance on the interpretation and implementation of the IRA and OBBB and additional

guidance may be forthcoming. If and when such guidance is issued, it may impose additional requirements and/or

limitations. The impact of these requirements, the availability or nature of any future guidance, and the potential for

any other legislation changes, is not fully known and the tax law is subject to change and to regulatory guidance

which may increase the cost of compliance. There is also a risk of non-compliance with the prevailing wage and

apprenticeship requirements which would result in us having to make cure payments in the form of penalties and

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interest in order to maintain our tax credits under the IRA and OBBB or the loss of the tax credit if making cure

payments is not possible.

***Labor-related matters, including labor disputes, may adversely affect our operations.*** 

None of our employees are currently represented by a union. If our employees decide to form or affiliate with a

union, we cannot predict the effects such future organizational activities would have on our business and operations.

If we were to become subject to work stoppages or other labor disputes, we could experience disruption in our

operations, including delays in manufacturing and operations, and increases in our labor costs could harm our

business, results of operations, and financial condition.

In addition, we could face a variety of employee or employee-related claims against us, including but not

limited to discrimination, privacy, wage and hour, labor and employment, Employee Retirement Income Security

Act, occupational safety and health, and disability claims. Any claims could also result in litigation or regulatory

proceedings being brought against us by various government agencies that regulate our business, including but not

limited to the U.S. Equal Employment Opportunity Commission and U.S. Department of Labor (including the

Occupational Safety and Health Administration). Often these cases raise complex factual and legal issues and create

risks and uncertainties. If we were to become subject to such labor disputes or other employee-related disputes, it

could have a negative effect on our business, financial condition and results of operations.

**Risks Related to Financial and Accounting Matters** 

***We have identified material weaknesses in our internal controls over financial reporting, and the failure to*** 

***achieve and maintain effective internal controls over financial reporting could harm our business and negatively*** 

***impact the value of our common stock.*** 

In connection with the audit of our consolidated financial statements as of and for the year ended December 31,

2025, we identified material weaknesses in our internal control over financial reporting that we are currently

working to remediate, which relate to: (a) insufficient segregation of duties in the financial statement reporting and

general information technology processes; (b) a lack of sufficient levels of staff with public company and technical

accounting experience to maintain proper control activities and perform risk assessment and monitoring activities;

and (c) insufficient general information technology controls, including access security and change management

controls. A "material weakness" is a deficiency, or a combination of deficiencies, in internal control over financial

reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim

financial statements will not be prevented or detected on a timely basis. We have concluded that these material

weaknesses in our internal control over financial reporting occurred because we do not have the necessary business

processes, personnel and related internal controls to operate in a manner to satisfy the accounting and financial

reporting timeline requirements of a public company.

We are focused on designing and implementing effective internal controls measures to improve our evaluation

of disclosure controls and procedures, including internal control over financial reporting, and remediating the

material weaknesses. We also plan to recruit additional qualified financial reporting and accounting personnel

following the completion of this offering to enhance our financial reporting capabilities.

However, we cannot assure you that the measures we are taking to remediate the material weaknesses will

prevent or avoid potential future material weaknesses. Further, additional weaknesses in our disclosure controls and

internal controls over financial reporting may be discovered in the future. Any failure to develop or maintain

effective controls or any difficulties encountered in their implementation or improvement could limit our ability to

prevent or detect a misstatement of our accounts or disclosures that could result in a material misstatement of our

annual or interim financial statements. In such a case, we may be unable to maintain compliance with securities law

requirements regarding timely filing of periodic reports in addition to the listing requirements of the NASDAQ,

investors may lose confidence in our financial reporting and our stock price may decline as a result.

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***There are material limitations with making preliminary estimates of our financial and operating results for the*** 

***period ended March 31, 2026, prior to the completion of our and our auditors' financial review procedures for*** 

***such period.*** 

Our independent registered public accounting firm has not conducted an audit or review of, and does not

express an opinion or any other form of assurance with respect to, the preliminary unaudited results. It is possible

that we, or our independent registered public accounting firm, may identify items that require us to make

adjustments to the preliminary estimates of financial and operating results contained herein.

The preliminary estimates of revenues, net loss, capital expenditures, cash and cash equivalents and long-term

debt contained in "Prospectus Summary—Recent Developments —Preliminary Financial and Operating Results for

the Three Months Ended March 31, 2026 (Unaudited)" are not a comprehensive statement of our financial results for

the period ended March 31, 2026. Our financial statements for the period ended March 31, 2026, will not be

available until after this offering is completed and, consequently, will not be available to you prior to investing in

this offering. Our actual results for the period ended March 31, 2026, may differ materially from the preliminary

estimates we have provided as a result of the completion of our financial closing procedures, final adjustments, and

other developments arising between now and the time that our financial results for such periods are finalized.

The selected preliminary consolidated financial data contained herein has been prepared by, and is the

responsibility of, our management. Deloitte & Touche LLP has not audited, reviewed, compiled or performed any

procedures with respect to this preliminary consolidated financial data. Accordingly, Deloitte & Touche LLP does

not express an opinion or any other form of assurance with respect thereto.

Further, our preliminary estimated results are not necessarily indicative of the results to be expected for the

remainder of the fiscal year ending December 31, 2026 or any future period as a result of various factors, including,

but not limited to, those discussed in the sections titled "Risk Factors," "Management's Discussion and Analysis of

Financial Condition and Results of Operations" and "Cautionary Note Regarding Forward-Looking Statements."

Accordingly, you should not place undue reliance upon these preliminary estimates.

**Risks Related to Owning Our Common Stock** 

***We are controlled by our Co-Founders, whose interests in our business may conflict with ours or yours.***

Our Class B common stock is beneficially owned by our Co-Founders, Tim Latimer and Jack Norbeck, PhD.,

who also serve as our Chief Executive Officer and Chief Technical Officer, respectively, whose interests may differ

from or conflict with the interests of our other stockholders. Each share of our Class A common stock is entitled to

one vote per share. Each share of our Class B common stock is entitled to 40 votes per share. Because of the forty-

to-one voting ratio between our Class B and Class A common stock, the holders of our Class B common stock

collectively continue to control a significant percentage of the combined voting power of our common stock and

therefore are able to control all matters submitted to our stockholders for approval. Following this offering, our Co-

Founders will hold all of the issued and outstanding shares of our Class B common stock and, accordingly, will

beneficially own approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our outstanding capital stock and control approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of

the voting power of our outstanding capital stock (assuming no exercise of the underwriters' option to purchase

additional shares to cover over-allotments, if any, and assuming Mr. Latimer and Dr. Norbeck do not purchase any

shares of Class A common stock pursuant to the reserved share program). As a result, our Co-Founders will have the

ability to exercise control over our affairs, including control over the outcome of all matters submitted to our

stockholders for approval, including the election of directors and significant corporate transactions. The directors so

elected will have the authority, subject to the terms of our indebtedness and applicable rules and regulations, to issue

additional stock, implement stock repurchase programs, declare dividends and make other decisions. Our Co-

Founders may have interests that differ from yours and may vote in a way with which you disagree and which may

be adverse to your interests. For example, our Co-Founders may have a different tax position or other differing

incentives from other stockholders that could influence their decisions regarding whether and when to cause us to

dispose of assets, incur new or refinance existing indebtedness or take other actions. Additionally, our Co-Founders

may cause us to make strategic decisions or pursue acquisitions that could involve risks to you or may not be aligned

with your interests.

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This concentrated control will limit or preclude your ability to influence corporate matters for the foreseeable

future, including the election of directors, amendments of our organizational documents, and any merger,

consolidation, sale of all or substantially all of our assets, or other major corporate transaction requiring stockholder

approval. Further, this concentrated control may have the effect of delaying, preventing, or deterring a change in

control of our Company, could deprive our stockholders of an opportunity to receive a premium for their capital

stock as part of a sale of our Company and might ultimately affect the market price of our Class A common stock.

Moreover, while stockholders would generally be entitled to dissenters' rights of appraisal under applicable

Delaware law, there are certain exceptions. As a result, our Co-Founders will be able to effectively control us.

Future transfers of Class B common stock will generally result in those shares converting into shares of Class A

common stock, subject to limited exceptions set forth in our Amended Charter, including transfers to immediate

family members (including upon the death of one of our Co-Founders), trusts (including grantor retained annuity

trusts) for which the stockholder or their immediate family member serves as trustee, and partnerships, corporations,

and other entities exclusively owned by one of our Co-Founders or their immediate families. In addition, each share

of Class B common stock will convert automatically into one share of Class A common stock upon the earliest to

occur of (i) the first trading day following the seventh anniversary of this offering, (ii) the date on which the number

of shares of Class A and Class B common stock beneficially owned by Mr. Latimer's and Dr. Norbeck's permitted

transferees (including shares underlying outstanding options) represents less than 25% of the shares of Class A and

Class B common stock beneficially owned by Mr. Latimer and Dr. Norbeck, in the aggregate, on the closing date of

this offering, (iii) the death or disability of a Co-Founder, and (iv) the termination of a Co-Founder for cause.

***We cannot predict the effect our multi-class structure may have on the market price of our Class A common*** 

***stock.***

We cannot predict whether our multi-class structure will result in a lower or more volatile market price of our

Class A common stock, adverse publicity or other adverse consequences. For example, certain stock index providers

have excluded or limited the eligibility of public companies with multiple classes of shares of common stock from

being added to certain stock indices. The multi-class structure of our common stock would therefore make us

ineligible for inclusion in indices with such restrictions and, as a result, mutual funds, exchange-traded funds, and

other investment vehicles that attempt to passively track these indices may not invest in our Class A common stock.

In addition, several stockholder advisory firms and large institutional investors have been critical of the use of

multi-class structures. Such stockholder advisory firms may publish negative commentary about our corporate

governance practices or capital structure, which may dissuade large institutional investors from purchasing shares of

our Class A common stock. These actions could make our Class A common stock less attractive to other investors.

As a result, the market price of our Class A common stock could be adversely affected.

***Prior to this offering, there has been no established public market for our Class A common stock, and we cannot*** 

***guarantee that an active and liquid trading market will develop or be maintained post-offering.***

There has been no public market for our Class A common stock prior to this offering. The initial public offering

price for our Class A common stock was determined through negotiations between us and the underwriters and may

vary from the market price of our Class A common stock following the completion of this offering. An active or

liquid market in our Class A common stock may not develop upon completion of this offering or, if it does develop,

it may not be sustainable. In the absence of an active trading market for our Class A common stock, you may not be

able to resell any shares you hold at or above the initial public offering price or at all.

An inactive market may also impair our ability to raise capital to continue to fund operations by selling shares

and may impair our ability to acquire other companies or technologies by using our shares as consideration. We

cannot predict the prices at which our Class A common stock will trade.

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***There may not be an active, liquid trading market for shares of our Class A common stock, which may cause*** 

***shares of our Class A common stock to trade at a discount from the initial offering price and make it difficult to*** 

***sell the shares of Class A common stock you purchase.***

Prior to this offering, there has not been a public trading market for shares of our Class A common stock. We

cannot predict the extent to which investor interest in us will lead to the development of a trading market or how

active and liquid that market may become. If an active and liquid trading market does not develop or continue, you

may have difficulty selling your shares of our Class A common stock at an attractive price or at all. The initial public

offering price per share of Class A common stock will be determined by agreement between us and the

representatives of the underwriters, and may not be indicative of the price at which shares of our Class A common

stock will trade in the public market after this offering. The market price of our Class A common stock may decline

below the initial offering price and you may not be able to sell your shares of our Class A common stock at or above

the price you paid in this offering, or at all. An inactive trading market may also impair our ability to raise capital to

continue to fund operations by selling shares and may impair our ability to acquire other companies or assets by

using our shares as consideration.

***The grant of registration rights to certain of our shareholders, and the future exercise of such rights may*** 

***adversely affect the market price of our Class A common stock.***

Pursuant to the Registration Rights Agreement entered into in connection with this offering, certain of our

stockholders and their permitted transferees can demand that we register the resale of their registrable shares of

Class A common stock. We will bear the cost of registering these securities. The registration and availability of such

a significant number of securities for trading in the public market may have an adverse effect on the market price of

our Class A common stock.

If and when one or more registration statements covering these resales become effective, a substantial number

of additional shares of our Class A common stock could become freely tradable in the public market. The perception

that such sales may occur, the actual occurrence of such sales (including pursuant to any lock-up releases, permitted

transfers or resales by affiliates), or the availability of these securities for sale could materially and adversely affect

the market price and trading volume of our Class A common stock. These effects could be exacerbated if significant

holders elect to promptly sell their shares following the effectiveness of a registration statement, upon expiration of

any contractual restrictions, or upon the occurrence of other liquidity events.

In addition, sales of a substantial number of shares of our Class A common stock in the public market, or the

perception that these sales could occur, may make it more difficult for us to raise additional capital through future

equity offerings at prices we consider attractive, dilute the ownership interests of our existing stockholders, and

increase the volatility of our stock price. We cannot predict the timing, amount, or effect of any sales of our

securities that may be made by the selling securityholders, and there can be no assurance that a trading market that

supports prevailing or higher prices will be sustained.

Moreover, if we issue additional shares of Class A common stock or other equity-linked securities in the future,

whether in connection with acquisitions, strategic transactions, employee compensation, or otherwise, our existing

stockholders will experience additional dilution, and any such issuances could further increase the number of shares

available for resale. Short sales or hedging transactions by investors that receive shares in such transactions, or by

the selling securityholders following the effectiveness of a registration statement, could also depress the market price

of our Class A common stock. Because the market price of our Class A common stock may be volatile, stockholders

who purchase shares could lose a significant portion of their investments if our stock price declines, and we cannot

predict or estimate the effect that future sales or availability for sale of our securities will have on the market price of

our Class A common stock.

***Our stock price may fluctuate significantly following this offering, and you may not be able to resell shares of our*** 

***Class A common stock at or above the price you paid or at all, and you could lose all or part of your investment as*** 

***a result.***

Even if a trading market develops, the market price of our Class A common stock may be highly volatile and

could be subject to wide fluctuations. You may not be able to resell your shares at or above the initial public offering

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price due to a number of factors such as those listed in "—Risks related to Our Business and Industry" and the

following:

• results of operations that vary from the expectations of securities analysts and investors;

• results of operations that vary from those of our competitors;

• changes in expectations as to our future financial performance, including financial estimates and investment

recommendations by securities analysts and investors;

• changes in economic conditions for companies in our industry;

• changes in market valuations of, or earnings and other announcements by, companies in our industry;

• declines in the market prices of stocks generally, particularly those of companies in our industry;

• additions or departures of key management personnel;

• strategic actions by us or our competitors;

• announcements by us, our competitors, our suppliers or our distributors of significant contracts, price

reductions, new products or technologies, acquisitions, dispositions, joint marketing relationships, joint

ventures, other strategic relationships or capital commitments or announcements relating to government

awards, or changes in government spending or policy;

• changes in preferences of our customers and our market share;

• changes in general economic or market conditions or trends in our industry or the economy as a whole;

• changes in business or regulatory conditions;

• future sales of our Class A common stock or other securities;

• investor perceptions of or the investment opportunity associated with our Class A common stock relative to

other investment alternatives;

• the public's response to press releases or other public announcements by us or third parties, including our

filings with the SEC;

• changes or proposed changes in laws or regulations or differing interpretations or enforcement thereof

affecting our business;

• announcements relating to litigation or governmental investigations;

• guidance, if any, that we provide to the public, any changes in this guidance or our failure to meet this

guidance;

• the development and sustainability of an active trading market for our stock;

• changes in accounting principles; and

• other events or factors, including those resulting from informational technology system failures and

disruptions, natural disasters, pandemics, war, acts of terrorism or responses to these events.

Furthermore, the stock market in general, and companies in our industry in particular, have experienced extreme

volatility that, in some cases, were unrelated or disproportionate to the operating performance of these companies.

These broad market and industry fluctuations may adversely affect the market price of our Class A common stock,

regardless of our actual operating performance. In addition, price volatility may be greater if the public float and

trading volume of our Class A common stock is low.

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In the past, following periods of market volatility or the reporting of unfavorable news, stockholders have

instituted securities class action litigation. If we were to become involved in securities litigation, it could have a

substantial cost and divert resources and the attention of management from our business regardless of the outcome

of such litigation.

***Our quarterly operating results may fluctuate in the future and be less than prior periods, and our projections or*** 

***the expectations of securities analysts or investors may worsen, which could materially adversely affect our stock*** 

***price.***

Our operating results may fluctuate from quarter to quarter in the future. Therefore, results of any one fiscal

quarter are not a reliable indication of results to be expected for any other fiscal quarter or for any year. If we fail to

increase our results over prior periods, to achieve our projected results or to meet the expectations of securities

analysts or investors, our stock price may decline, and the decrease in the stock price may be disproportionate to the

shortfall in our financial performance. Results may be affected by various factors, including those described in these

risk factors.

***We do not expect to pay cash dividends in the foreseeable future. Any return on your investment may be limited to*** 

***increases in the market price of our Class A common stock.*** 

We do not anticipate paying any regular cash dividends on our Class A common stock following this offering.

Any decision to declare and pay dividends in the future will be made at the discretion of our board of directors and

will depend on, among other things, general and economic conditions, our results of operations and financial

condition, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and

regulatory restrictions, and such other factors that our board of directors may deem relevant.

In addition, our ability to pay dividends is, and may be, limited by covenants of our current and any future

outstanding indebtedness we or our subsidiaries incur. In particular, existing and anticipated project-level financing

arrangements generally restrict the ability of our project subsidiaries to make distributions upstream, including by

prohibiting or conditioning distributions until project completion is achieved, required reserves are funded, no

default exists and specified financial tests are met, and our holding company credit arrangements further condition

the receipt of distributions from project subsidiaries. Our joint venture and subsidiary governing documents may

also restrict the amount and timing of cash available for upstream distribution. Therefore, any return on investment

in our Class A common stock is substantially dependent upon the appreciation of the price of our Class A common

stock on the open market, which may not occur.

***We are an emerging growth company within the meaning of the Securities Act and a smaller reporting company*** 

***within the meaning of the Exchange Act, and if we take advantage of certain exemptions from disclosure*** 

***requirements available to "emerging growth companies" or "smaller reporting companies," this could make our*** 

***securities less attractive to investors and may make it more difficult to compare our performance with other*** 

***public companies.***

We are an emerging growth company within the meaning of the Securities Act, as modified by the JOBS Act,

and we may 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, not being required to

comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure

obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from

say-on-pay, say-on-frequency and say-on-golden parachute voting requirements. As a result, our stockholders may

not have access to certain information they may deem important. We will remain an emerging growth company until

the earliest of (i) the last day of the fiscal year: (a) following&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2031, the fifth anniversary of the Company

IPO; (b) in which we have total annual gross revenue of at least $1,235,000,000; or (c) in which we are deemed to

be a large accelerated filer, which means the market value of the shares of our Common Stock that are held by non-

affiliates exceeds $700,000,000 as of the last business day of our prior second fiscal quarter, and (ii) the date on

which we have issued more than $1,000,000,000 in non-convertible debt securities during the prior three-year

period.

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Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to

comply with new or revised financial accounting standards until private companies (that is, those that have not had a

Securities Act registration statement declared effective or do not have a class of securities registered under the

Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act

provides that a company can elect to opt out of the extended transition period and comply with the requirements that

apply to non- emerging growth companies but any such election to opt out is irrevocable. We intend to take

advantage of the benefits of this extended transition period.

Even after we no longer qualify as an emerging growth company, we may still qualify as a "smaller reporting

company," which would allow us to continue to take advantage of many of the same exemptions from disclosure

requirements, including reduced disclosure obligations regarding executive compensation in our periodic reports and

proxy statements. Moreover, smaller reporting companies may choose to present only the two most recent fiscal

years of audited financial statements in their Annual Reports on Form 10-K. For so long as we are a smaller

reporting company and not classified as an "accelerated filer" or "large accelerated filer" pursuant to SEC rules, we

will be exempt from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act.

We cannot predict whether investors will find our securities less attractive because we rely on these exemptions.

If some investors find our securities less attractive as a result of our reliance on these exemptions, the trading prices

of our securities may be lower than they otherwise would be, there may be a less active trading market for our

securities and the trading prices of our securities may be more volatile.

***Investors in this offering will suffer immediate and substantial dilution.***

The initial public offering price per share of Class A common stock will be substantially higher than our

adjusted net tangible book value (deficit) per share immediately after this offering. As a result, you will pay a price

per share of Class A common stock that substantially exceeds the per share book value of our tangible assets after

subtracting our liabilities. In addition, you will pay more for your shares of Class A common stock than the amounts

paid by our existing stockholders. Assuming an initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of Class A

common stock, which is the mid-point of the estimated price range set forth on the cover page of this prospectus,

you will incur immediate and substantial dilution in an amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of Class A common stock. If

the underwriters exercise their option to purchase additional shares, you will experience additional dilution. See

"Dilution."

***You may be diluted by the future issuance of additional Class A common stock and Class B common stock in*** 

***connection with our incentive plans, acquisitions or otherwise.***

After this offering we will have approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares (or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares if the underwriters exercise in

full their option to purchase additional shares) of common stock authorized but unissued. Our Amended Charter,

which is expected to become effective immediately prior to the consummation of this offering, will authorize us to

issue these shares of Class A common stock and options relating to Class A common stock for the consideration and

on the terms and conditions established by our board of directors in its sole discretion, whether in connection with

acquisitions or otherwise. We have reserved shares for issuance under the 2026 Plan. See "Executive and Director

Compensation—Equity Compensation Plans." Any Class A common stock and Class B common stock that we

issue, including under the 2026 Plan or other incentive plans that we have adopted or we may adopt in the future,

would dilute the percentage ownership held by the investors who purchase Class A common stock in this offering.

In the future, we may also issue our securities in connection with investments or acquisitions. The number of shares

of our Class A common stock issued in connection with an investment or acquisition could constitute a material

portion of our then-outstanding common stock. Any issuance of additional securities in connection with investments

or acquisitions may result in additional dilution to you.

***Future sales, or the perception of future sales, by us or our existing stockholders in the public market following*** 

***this offering could cause the market price for our Class A common stock to decline.***

After this offering, the sale of shares of our Class A common stock in the public market, or the perception that

such sales could occur, could harm the prevailing market price of shares of our Class A common stock. These sales,

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or the possibility that these sales may occur, also might make it more difficult for us to sell equity securities in the

future at a time and at a price that we deem appropriate.

Upon consummation of this offering and after giving effect to the Reclassification, the Founder Share Exchange

and the Preferred Stock Conversion, we will have a total of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock outstanding. All

shares of our Class A common stock sold in this offering will be freely tradable without restriction or further

registration under the Securities Act, except for any shares of Class A common stock held by our affiliates, as that

term is defined under Rule 144 of the Securities Act ("Rule 144"), including our directors, executive officers and

other affiliates, which may be sold only in compliance with the limitations described in "Shares Eligible for Future

Sale."

The&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock held by our directors, executive officers, certain affiliates and

employees immediately following the consummation of this offering will represent approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our

total outstanding shares of Class A common stock following this offering, based on the number of shares

outstanding as of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . Such shares will be "restricted securities" within the meaning of Rule 144 and subject to

certain restrictions on resale following the consummation of this offering. Restricted securities may be sold in the

public market only if they are registered under the Securities Act or are sold pursuant to an exemption from

registration such as Rule 144, as described in "Shares Eligible for Future Sale."

In connection with this offering, we and all directors and executive officers and the holders of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our

outstanding stock and stock options have agreed that, without the prior written consent of J.P. Morgan Securities

LLC and BofA Securities, Inc. on behalf of the underwriters, we and they will not, and will not publicly disclose an

intention to, dispose of or hedge any shares of our Class A common stock or securities convertible into or

exchangeable for shares of our Class A common stock during the period ending&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; days after the date of this

prospectus, subject to certain exceptions. See "Underwriting" for a description of these lock-up agreements.

Upon the expiration of the contractual lock-up agreements pertaining to this offering, up to an

additional&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock will be eligible for sale in the public market, of

which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are held by directors, executive officers and other affiliates and will be subject to volume, manner of

sale and other limitations under Rule 144. Following completion of this offering, shares covered by registration

rights would represent approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of our outstanding Class A common stock (or&nbsp;&nbsp;&nbsp;&nbsp; %, if the

underwriters exercise in full their option to purchase additional shares). Registration of any of these outstanding

shares of Class A common stock would result in such shares becoming freely tradable without compliance with Rule

144 upon effectiveness of the registration statement. See "Shares Eligible for Future Sale."

As restrictions on resale end or if these stockholders exercise their registration rights, the market price of our

shares of Class A common stock could drop significantly if the holders of these shares sell them or are perceived by

the market as intending to sell them. These factors could also make it more difficult for us to raise additional funds

through future offerings of our shares of Class A common stock or other securities.

In addition, the shares of our Class A common stock and Class B common stock reserved for future issuance

under the 2026 Plan will become eligible for sale in the public market once those shares are issued, subject to

provisions relating to various vesting agreements, lock-up agreements and Rule 144, as applicable. A total

of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock and Class B common stock have been reserved for future issuance under

the 2026 Plan.

In the future, we may also issue our securities in connection with investments or acquisitions. The number of

shares of our Class A common stock issued in connection with an investment or acquisition could constitute a

material portion of our then-outstanding shares of Class A common stock. Any issuance of additional securities in

connection with investments or acquisitions may result in additional dilution to you.

***We have broad discretion to determine how to use the funds we receive from this offering and may use them in*** 

***ways that may not enhance our results of operations or the price of our Class A common stock.***

We have broad discretion over the use of proceeds we receive from this offering, and we could spend the

proceeds we receive from this offering in ways our stockholders may not agree with or that do not yield a favorable

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return, or no return at all. We currently expect to use the net proceeds from this offering to for general corporate

purposes, including capital expenditures, continued development of our GeoClusters, expansion of our land holdings

portfolio, working capital, and operating expenses. We currently have no specific plan for the proceeds, or for any

significant portion thereof, and accordingly are not able at this time to allocate or quantify the approximate amounts

we expect to use for any particular purpose identified above. Additionally, we may use a portion of the net proceeds

to acquire or invest in products, services or technologies. The identity of any potential targets is not known at this

time and any such transactions, if pursued, would depend on the availability of suitable opportunities and market

conditions. We do not have binding agreements or commitments for any material investments outside the ordinary

course of our business at this time. The timing and amount of our actual expenditures will depend on numerous

factors, including the progress of our project development activities, the growth of our operations and overall market

conditions. If we do not invest or apply the proceeds we receive from this offering in ways that improve our results

of operations, we may fail to achieve expected financial results or be required to raise additional capital, which could

cause our stock price to decline. In addition, pending their use, the proceeds of this offering may be placed in

investments that do not produce income or that may lose value.

***The price of our common stock could decline if securities analysts cease to publish research or if securities*** 

***analysts or other third parties publish inaccurate or unfavorable research about us.*** 

The trading market for our Class A common stock will depend in part on the research and reports that securities

or industry analysts publish about us or our business, our market, and our competitors. We do not currently have and

may never obtain research coverage by securities and industry analysts. We do not have any control over these

analysts. If we fail to meet the expectations of these analysts, our stock price could be adversely affected.

If no or few securities analysts commence coverage of us, the trading price for our Class A common stock

would be negatively affected. In the event we obtain securities or industry analyst coverage, if one or more of the

analysts who cover us downgrade our Class A common stock or publish inaccurate or unfavorable research about

our business, our Class A common stock price would likely decline.

If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, demand for our

Class A common stock could decrease, which may cause our Class A common stock price and trading volume to

decline. lose visibility in the market, which in turn could cause our stock price or trading volume to decline.

***Provisions in our organizational documents could delay or prevent a change of control.***

Certain provisions of our Amended Charter or Amended Bylaws may have the effect of delaying or preventing

a merger, acquisition, tender offer, takeover attempt or other change of control transaction that a stockholder might

consider to be in its best interest, including attempts that might result in a premium over the market price of our

Class A common stock.

These provisions will provide for, among other things:

• the division of our board of directors into three classes, as nearly equal in size as possible, with directors in

each class serving three-year terms and with terms of the directors of only one class expiring in any given

year;

• the ability of our board of directors to issue one or more series of preferred stock with voting or other rights

or preferences that could have the effect of impeding the success of an attempt to acquire us or otherwise

effect a change of control;

• the requirement that, following the date that no shares of Class B common stock are outstanding, any action

to be taken by our stockholders be effected at a duly called annual or special meeting and not by written

consent;

• the ability of our board of directors to establish the number of directors and fill any vacancies and newly

created directorships;

• no cumulative voting;

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• that directors may only be removed "for cause" and only with the approval of two-thirds of our

stockholders;

• a multi-class common stock structure in which holders of our Class B common stock may have the ability

to control the outcome of matters requiring stockholder approval, even if they own significantly less than a

majority of the outstanding shares of our common stock, including the election of directors and other

significant corporate transactions, such as a merger or other sale of our company or its assets;

• advance notice requirements for nominations of directors by stockholders and for stockholders to include

matters to be considered at stockholder meetings; and

• certain limitations on convening special stockholder meetings.

These provisions could make it more difficult for a third-party to acquire us, even if the third-party's offer may

be considered beneficial by many of our stockholders. As a result, our stockholders may be limited in their ability to

obtain a premium for their shares. See "Description of Capital Stock."

***Our board has broad discretion to issue additional securities, including common stock. Future issuances of*** 

***Common Stock could result in significant dilution to our existing stockholders, affecting the value of their*** 

***investment and their voting power.***

Sales of a substantial number of shares of the Class A common stock by our existing stockholders in the public

market, or the perception that these sales might occur, could depress the market price of the Class A common stock

and could impair our ability to raise additional capital through the issuance of additional equity securities. We are

unable to predict the effect that such sales may have on the prevailing market price of the Common Stock.

Any issuance of equity we may undertake in the future to raise additional capital could cause the price of the

Class A common stock to decline, or require us to issue shares at a price that is lower than that paid by holders of the

Class A common stock in the past, which would result in those newly issued shares being dilutive. In addition,

future investors could gain rights superior to existing stockholders, such as liquidation and other preferences. If we

obtain funds through a credit facility or through the issuance of debt or preferred securities, these securities will

likely have rights senior to the rights of a common stockholder, which could impair the value of the Class A

Common Stock.

***Our Amended Charter will provide that the Court of Chancery of the State of Delaware will be the sole and*** 

***exclusive forum for certain stockholder litigation matters and the federal district courts of the United States shall*** 

***be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities*** 

***Act, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our*** 

***directors, officers, employees or stockholders.***

Our Amended Charter will provide (A) (i) any derivative action or proceeding brought on behalf of the

Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any current or former director,

officer, other employee or stockholder of the Company to the Company or the Company's stockholders, (iii) any

action asserting a claim arising pursuant to any provision of the Delaware's General Corporation Law (the

"DGCL"), Amended Charter or our Amended Bylaws (as either may be amended or restated) or as to which the

DGCL confers jurisdiction on the Court of Chancery of the State of Delaware or (iv) any action asserting a claim

governed by the internal affairs doctrine of the law of the State of Delaware shall, to the fullest extent permitted by

law, be exclusively brought in the Court of Chancery of the State of Delaware or, if such court does not have subject

matter jurisdiction thereof, the federal district court of the State of Delaware; and (B) the federal district courts of the

United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising

under the Securities Act. Notwithstanding the foregoing, the exclusive forum provision shall not apply to claims

Bylaws precludes stockholders that assert claims under the Exchange Act from bringing such claims in federal court

to the extent that the Exchange Act confers exclusive federal jurisdiction over such claims, subject to applicable

laws.

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The choice of forum provision may limit a stockholder's ability to bring a claim in a judicial forum that it finds

favorable for disputes with us or our directors, officers or other employees, which may discourage such lawsuits

against us and our directors, officers and other employees and result in increased costs for investors to bring a claim.

Alternatively, if a court were to find the choice of forum provision contained in our Amended Charter to be

inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in

other jurisdictions, which could harm our business, results of operations and financial condition. For example,

Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to

is uncertainty as to whether a court would enforce such a forum selection provision as written in connection with

claims arising under the Securities Act. Any person or entity purchasing or otherwise acquiring or holding any

interest in shares of our capital stock shall be deemed to have notice of and consented to the forum provisions in our

Amended Charter. See "Description of Capital Stock—Exclusive Forum."

***The requirements of being a public company may strain our resources, divert management's attention, and affect*** 

***our ability to attract and retain qualified board members and executive officers.***

As a public company, we are subject to extensive regulatory and compliance obligations, including those

imposed by the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the

rules and regulations of the SEC and the stock exchange on which our shares are listed.

Compliance with these requirements involves significant legal, accounting, and administrative expenses, as well

as the need to implement and maintain effective internal controls over financial reporting. The process of

establishing and monitoring these controls can be complex and time-consuming, requiring substantial management

attention and resources. Any failure to maintain effective internal controls could result in material misstatements in

our financial statements, leading to regulatory scrutiny, potential penalties, and a loss of investor confidence.

Additionally, the increased public scrutiny and reporting obligations associated with being a public company

may make it more challenging to attract and retain qualified individuals to serve on our board of directors or as

executive officers. The demands of public company governance, coupled with the potential for personal liability,

may deter potential candidates from joining our leadership team. Furthermore, the costs associated with directors'

and officers' insurance have risen significantly, adding to our financial burden.

While we are committed to meeting our public company obligations and maintaining transparency with our

stakeholders, the ongoing requirements and associated costs may impact our operational efficiency and strategic

focus. Any inability to effectively manage these challenges could have a material adverse effect on our business,

results of operations, and financial condition.

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**USE OF PROCEEDS**

We estimate that we will receive net proceeds from this offering of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million (or

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million if the underwriters exercise in full their option to purchase additional shares of Class A common

stock), based upon an assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share (which is the midpoint of the price

range set forth on the cover page of this prospectus) and after deducting estimated underwriting discounts and

commissions and estimated offering expenses payable by us.

The principal purposes of this offering are to create a public market for our Class A common stock, and enable

access to the public equity markets for us and our Class A common stockholders. We intend to use the net proceeds

from this offering for general corporate purposes, including capital expenditures, continued development of our

GeoClusters, expansion of our land holdings portfolio, working capital, and operating expenses. We have not

established specific allocations for the net proceeds among the uses described above, and intend to allocate them in a

manner that best supports our business objectives and strategic priorities. The actual amounts and timing of

expenditures will depend on a number of factors, including the level of proceeds received, business conditions, and

evolving operational needs. If we receive less than the maximum anticipated proceeds, we currently expect to

prioritize working capital and operating expenses, and may defer or reduce other expenditures accordingly. We do

not currently intend to use a material amount of the proceeds of this offering to discharge specific indebtedness or

acquire assets other than in the ordinary course of business. Additionally, we may use a portion of the net proceeds

to acquire or invest in products, services or technologies; the identity of any potential targets is not known at this

time and any such transactions, if pursued, would depend on the availability of suitable opportunities and market

conditions. To the extent disclosure of possible terms or counterparties would jeopardize a potential transaction, we

may limit such disclosure consistent with applicable requirements. However, we do not have binding agreements or

commitments for any material investments outside the ordinary course of our business at this time. We reserve the

right to change the use of proceeds if certain contingencies arise, including shifts in market conditions, strategic

opportunities, or changes in our operating plans, and in such event we may increase or decrease spending among the

potential uses identified above. The timing and amount of our actual expenditures will depend on numerous factors,

including the progress of our research and development activities, the growth of our operations and overall market

conditions. We will have broad discretion in the way that we use the net proceeds of this offering. For additional

information regarding our liquidity, capital resources and anticipated capital expenditures, see "Management's

Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources." See

also "Risk Factors — Risks Relating to Owning Our Common Stock — We have broad discretion to determine how

to use the funds we receive from this offering and may use them in ways that may not enhance our results of

operations or the price of our Class A common stock." for additional information.

Assuming no exercise of the underwriters' option to purchase additional shares of Class A common stock, each

$1.00 increase (decrease) in the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share (which is the midpoint of

the price range set forth on the cover page of this prospectus) would increase (decrease) the net proceeds to us from

this offering by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, assuming the number of shares offered, as set forth on the cover

page of this prospectus, remains the same, and after deducting estimated underwriting discounts and commissions

and estimated offering expenses payable by us.

Each 1.0 million share increase (decrease) in the number of shares offered in this offering would increase

(decrease) the net proceeds to us from this offering by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, assuming that the price per

share for the offering remains at $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (which is the midpoint of the price range set forth on the cover page of this

prospectus), and after deducting the estimated underwriting discounts and commissions and estimated offering

expenses payable by us.

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**DIVIDEND POLICY**

We have never declared or paid any cash dividends on our capital stock. We currently intend to retain all

available funds and any future earnings, if any, for the operation and expansion of our business. Accordingly,

following this offering, we do not expect to declare or pay any cash dividends in the foreseeable future. Any future

determination to declare cash dividends will be made at the discretion of our board of directors, subject to applicable

laws, and will depend on a number of factors, including our financial condition, results of operations, capital

requirements, contractual restrictions, general business conditions, and other factors that our board of directors may

deem relevant.

Additionally, we are a holding company that transacts a majority of our business through operating subsidiaries.

Consequently, our ability to pay dividends to stockholders is largely dependent on receipt of dividends and other

distributions from our subsidiaries. Certain of our subsidiaries are party to project-level financing arrangements that

contractually restrict or prioritize cash distributions before any amounts can be upstreamed to us.

In addition, our ability to pay dividends is limited by the Credit Agreement, which contains negative covenants

that generally prohibit us and our subsidiaries from making "Restricted Payments," including dividends and other

distributions, subject to only limited exceptions for certain subsidiary distributions that meet specified conditions,

and may be limited by the agreements governing any indebtedness we or our subsidiaries may incur in the future.

See "Risk Factors — Risks Relating to Owning Our Common Stock — We do not intend to pay dividends on our

common stock for the foreseeable future." and "<u>[Management's Discussion and Analysis of Financial Condition and](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u> 

<u>[Results of Operations](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u>—Liquidity and Capital Resources" for additional information.

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**CAPITALIZATION**

The following table sets forth the cash and cash equivalents and our capitalization as of December 31, 2025 on:

• an actual basis;

• as adjusted to give effect to (i) the filing and effectiveness of our Amended Charter, (ii) the Preferred Stock

Conversion, (iii) the Founder Share Exchange and (iv) the Reclassification, in each case as if such event

had occurred on December 31, 2025; and

• as further adjusted to give effect to the adjustments described in the preceding clause and to reflect the

issuance and sale by us of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock in this offering at an assumed

initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share (which is the midpoint of the price range set forth on the

cover page of this prospectus), after deducting the estimated underwriting discounts and commissions and

estimated offering expenses payable by us, and the application of the net proceeds therefrom as described

under "Use of Proceeds."

Our capitalization following the closing of this offering will be adjusted based on the actual initial public

offering price and other terms of this offering determined at pricing. You should read this information in

conjunction with our consolidated financial statements and the related notes included elsewhere in this prospectus

and the "<u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u>" section and

other financial information contained in this prospectus.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| (in thousands, except share and per share data) | **Actual** | **As Adjusted** <sup>(1)</sup> | **As Further** <br>**Adjusted** <sup>(2)(3)</sup><br>|
| Cash and cash equivalents ............................................................. | $461836 | $— | $— |
| **Indebtedness:** |  |  |  |
| XRC Facility and Credit Facility<sup>(4)</sup> .............................................. | 175600 |  |  |
| Redeemable convertible preferred stock, par value $0.0001 per <br>share; 283,546 and 223,458 authorized; 279,995 and 223,458 <br>issued and outstanding as of December 31, 2025 and 2024, <br>respectively ................................................................................<br>| 1022942 |  |  |
| Cape Phase I HoldCo - Redeemable noncontrolling interest ......... | 102586 |  |  |
| Cape Phase I Intermediate HoldCo - Redeemable noncontrolling <br>interest .........................................................................................<br>| 77344 |  |  |
| **Stockholders' deficit:**  |  |  |  |
| Common stock, par value $0.0001 per share; 358,279 and <br>280,000 authorized; 13,146 and 12,470 issued and <br>outstanding as of December 31, 2025 and 2024, respectively <br>| 1 |  |  |
| Additional paid-in capital ............................................................ |  |  |  |
| Treasury stock .............................................................................. | (1960) |  |  |
| Accumulated deficit ..................................................................... | (244539) |  |  |
| Total stockholders' deficit ....................................................... | (246498) |  |  |
| Total capitalization ........................................................................ | $1131974 |  |  |

---

_________________

(1)The as adjusted consolidated balance sheet data as of December 31, 2025 presents our consolidated balance sheet data to give effect to

(i) the Preferred Stock Conversion, as if the Preferred Stock Conversion had occurred on December 31, 2025, (ii) the Reclassification,

(iii) the Founder Share Exchange and (iv) the filing and effectiveness of our Amended Charter.

(2)The as further adjusted consolidated balance sheet data reflects the items described in footnote (1) above and gives effect to our receipt of

estimated net proceeds from the sale of shares of Class A common stock that we are offering by this prospectus at an assumed initial public

offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the price range on the cover page of this prospectus, after deducting the

estimated underwriting discounts and commissions and estimated offering expenses payable by us. A $1.00 increase (decrease) in the

assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share would increase (decrease) each of current assets, total assets and total

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stockholders' equity by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus,

remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by

us.

(3)The as further adjusted data discussed above is illustrative only and will be adjusted based on the actual initial public offering price and

other terms of our initial public offering determined at pricing.

(4)As of April 14, 2026, the XRC Facility was paid off with the proceeds from the Project Granite Facility. As of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, we had an

aggregate of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million of borrowings outstanding under the Credit Facility. Our Credit Facility has a total capacity of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million

which consists of . See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital

Resources—Mercuria Credit Agreement and Letter of Credit Agreement" for a further description of our Credit Facility.

Each $1.00 increase (decrease) in the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of our Class A

common stock (which is the midpoint of the price range set forth on the cover page of this prospectus) would

increase (decrease) each of cash and cash equivalents, additional paid-in capital, total stockholders' equity and total

capitalization on an as further adjusted basis by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, assuming the number of shares

offered, as set forth on the cover page of this prospectus, remains the same, and after deducting the estimated

underwriting discounts and commissions and estimated offering expenses payable by us.

Each 1.0 million share increase (decrease) in the number of shares of Class A common stock offered in this

offering would increase (decrease) each of cash and cash equivalents, additional paid-in capital, total stockholders'

equity and total capitalization on an as further adjusted basis by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, assuming that the

price per share for the offering remains at $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (which is the midpoint of the price range set forth on the cover

page of this prospectus), and after deducting the estimated underwriting discounts and commissions and estimated

offering expenses payable by us.

The number of shares of Class A and Class B common stock to be issued and outstanding after this offering is

based on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock and no shares of Class B common stock outstanding as

of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026, after giving effect to the Reclassification, the Founder Share Exchange and the Preferred Stock

Conversion. The number of shares of our Class A common stock to be outstanding after this offering does not

include:

• shares of Class A common stock issuable upon exercise of stock options outstanding as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ,

2026 under our 2019 Plan, with a weighted average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock and Class B common stock reserved for future issuance under our

equity compensation plans, consisting of:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock and Class B common stock reserved for future issuance under

the 2026 Plan, which will become effective in connection with this offering, as well as any automatic

increases in the number of shares of Class A common stock and Class B common stock reserved for

future issuance under the 2026 Plan; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock reserved for future issuance under the ESPP, which will

become effective in connection with this offering, as well as any automatic increases in the number of

shares of Class A common stock reserved for future issuance under the ESPP.

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**DILUTION**

If you invest in our Class A common stock in this offering, your ownership interest will be diluted to the extent

of the difference between the initial public offering price per share of our Class A common stock and the as further

adjusted net tangible book value per share of our common stock immediately after this offering. Net tangible book

value dilution per share to new investors represents the difference between the amount per share paid by purchasers

of shares of our Class A common stock in this offering and the as further adjusted net tangible book value per share

of our common stock immediately after this offering.

Net tangible book value (deficit) per share is determined by dividing our total tangible assets less our total

liabilities by the number of shares of our common stock outstanding. Our historical net tangible book value (deficit)

as of December 31, 2025 was $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share. Our adjusted net tangible book value as

of December 31, 2025 was $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, based on the total number of shares of our

common stock outstanding as of December 31, 2025 after giving effect to Preferred Stock Conversion, the Founder

Share Exchange and the Reclassification.

After giving effect to the sale by us of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock in this offering at the

assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated offering price

range set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions

and estimated offering expenses payable by us, our as further adjusted net tangible book value to give effect to this

offering as of December 31, 2025 would have been $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share. This represents an

immediate increase in adjusted net tangible book value of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share to our existing stockholders and an

immediate dilution in as further adjusted net tangible book value of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share to investors purchasing

shares of our Class A common stock in this offering at the assumed initial public offering price. The following table

illustrates this dilution:

---

| | |
|:---|:---|
| Assumed initial public offering price per share of Class A common stock .............. | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Historical net tangible book value (deficit) per share as of December 31, 2025 ....... | $— |
| Increase per share attributable to the adjustments described above .......................... |  |
| As adjusted net tangible book value per share as of December 31, 2025 ................. |  |
| Increase in adjusted net tangible book value per share attributable to investors <br>purchasing shares of Class A common stock in this offering ................................<br>|  |
| As further adjusted net tangible book value per share immediately after this <br>offering ...................................................................................................................<br>| $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Dilution in adjusted net tangible book value per share to investors in this offering . | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

Each $1.00 increase (decrease) in the assumed initial offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the

midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease) the total

consideration paid by new investors, total consideration paid by all stockholders and average price per share paid by

all stockholders 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; and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, respectively, assuming that the number of shares of

Class A common stock offered by us, as set forth on the cover page of this prospectus, remains the same, and after

deducting underwriting discounts and commissions, and estimate offering expenses payable by us. Each increase

(decrease) of 1.0 million shares in the number of shares of Class A common stock sold in this offering, as set forth

on the cover page of this prospectus, would increase (decrease) the total consideration paid by new investors, total

consideration paid by all stockholders and average price per share paid by all stockholders 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; and $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, respectively, assuming that the assumed initial public offering price of

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the price range set forth on the cover page of this prospectus, remains

the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by

us.

The following table presents, on an as adjusted basis as of December 31, 2025, after giving effect to (i) the

Preferred Stock Conversion, (ii) the Reclassification, (iii) the Founder Share Exchange and (iv) the sale by us of

shares of our Class A common stock in this offering at the assumed initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per

share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, the

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difference between the existing stockholders and the investors purchasing shares of our Class A common stock in

this offering with respect to the number of shares of our Class A common stock purchased from us, the total

consideration paid or to be paid to us, and the average price per share paid or to be paid to us, before deducting

estimated underwriting discounts and commissions and estimated offering expenses payable by us:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Average price** <br>**per Share** |
| | **Number** | **Percent** | **Percent** | **Average price** <br>**per Share** |
| Existing stockholders before this <br>offering ...........................................<br>|  | % | $% | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
| Investors participating in this <br>offering ...........................................<br>|  |  |  |  |
| **Total** .................................................. |  | 100% | $100% | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

If the underwriters exercise in full their option to purchase&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares of our Class A common

stock in this offering, the as further adjusted net tangible book value (deficit) per share after this offering would be

$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share and the dilution to new investors in this offering would be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share. If the

underwriters exercise such option in full, the number of shares held by new investors will increase to approximately

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock, or approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the total number of shares of our

common stock outstanding after this offering.

The total number of shares of Class A common stock and Class B common stock that will be outstanding

immediately after this offering is based on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our

Class B common stock outstanding as of December 31, 2025, and after giving effect to the Preferred Stock

Conversion, the Founder Share Exchange and the Reclassification, and excludes:

• shares of Class A common stock issuable upon exercise of stock options outstanding as of December 31,

2025 under our 2019 Plan, with a weighted average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock and Class B common stock reserved for future issuance under our

equity compensation plans, consisting of:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock and Class B common stock reserved for future issuance

under the 2026 Plan, which will become effective in connection with this offering, as well as any

automatic increases in the number of shares of Class A common stock and Class B common stock

reserved for future issuance under the 2026 Plan; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock reserved for future issuance under the ESPP, which will

become effective in connection with this offering, as well as any automatic increases in the number of

shares of Class A common stock reserved for future issuance under the ESPP.

The dilution information discussed above is illustrative only and may change based on the actual initial public

offering price and other terms of this offering. To the extent any options are granted and exercised in the future,

there may be additional economic dilution to new investors.

In addition, we may choose to raise additional capital due to market conditions or strategic considerations, even

if we believe we have sufficient funds for our current or future operating plans. To the extent that we raise additional

capital through the sale of equity, as Class A common stock, or other securities that are convertible into our Class A

common stock, such as convertible debt securities, the issuance of these securities could result in further dilution to

our stockholders.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF** 

**OPERATIONS**

*The following discussion and analysis of Fervo's financial condition and results of operations should be read* 

*with our audited consolidated financial statements and notes thereto included elsewhere in this prospectus. Certain* 

*of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including* 

*information with respect to plans and strategy for our business, includes forward-looking statements that involve* 

*risks and uncertainties. As a result of many factors, including those factors set forth in the section "Risk Factors,"* 

*our actual results could differ materially from the results described in or implied by the forward- looking statements* 

*contained in the following discussion and analysis. Refer to the section entitled "Risk Factors" to gain an* 

*understanding of the important factors that could cause actual results to differ materially from our forward-looking* 

*statements. For more information, see the section entitled "Cautionary Note Regarding Forward-Looking* 

*Statements."* 

*Unless otherwise indicated or the context otherwise requires, references in this section to the "Company,"* 

*"we," "us," "Fervo," or "our" refer to the business of Fervo Energy Company.*

**Overview**

We are a geothermal energy developer that builds, owns, and operates geothermal power facilities. As the

pioneer of EGS, we are commercializing a new category of firm, 24/7 power that is scalable, rapidly deployable, and

geographically flexible. We apply proven technologies, such as horizontal drilling, multistage hydraulic fracturing,

and enhanced subsurface monitoring, to design and control subsurface flow pathways, enabling predictable heat

recovery without reliance on rare natural fracture networks. This standardized, repeatable approach addresses the

scalability and development risks that have historically constrained traditional geothermal and positions EGS to

deliver reliable, cost-competitive power with a clear path to learning curve-driven cost declines.

We are advancing from demonstration to utility-scale commercialization; we expect to begin delivering first

power from our 500-megawatt Cape Station project by late 2026, and to reach approximately 100 megawatts of

operating capacity by early 2027. Our execution track record and standardized development model, combined with

meaningful commercial traction, differentiate us from alternatives still facing technology risk, prolonged timelines,

permitting uncertainty, and supply chain constraints. Across our full portfolio, we have signed 658 megawatts of

binding PPAs with credit-worthy utility and corporate buyers, including Southern California Edison, Google / NV

Energy and Shell. These PPAs represent approximately $7.2 billion in potential revenue backlog, and we are

actively engaging energy buyers for additional capacity. Building on this traction, we have entered into a 3-gigawatt

GFA, creating a repeatable commercial model that we believe can accelerate deployment and position Fervo to meet

growing demand from hyperscale customers. We believe this momentum, combined with our scalable technology

and development playbook, positions us to help close the nation's capacity gap with dependable, around-the-clock

clean power.

**Our Business Model**

We generate revenue through the provision of reliable and cost-competitive firm power to our customers. By

leveraging proven oil and gas technology deployed for successful wellfield development in the shale industry, we

are transforming geothermal energy into a scalable, reliable, and cost-competitive power solution to meet the U.S.'s

growing electricity demand.

We intend to generate most of our revenue by entering into PPAs with utilities, hyperscalers and other market

participants, which allow us to sell electricity under long-term contracts at agreed-upon prices, thereby creating a

stable and predictable income stream for our business. Our PPAs customarily have initial contract terms that average

15 years, providing us with significant cash flow visibility over an extended period. Additionally, our PPAs are

generally structured with fixed or indexed pricing, substantially reducing exposure to fluctuations in electricity

market prices over the contract term. We believe the long-term nature of our PPA portfolio enhances the resilience

of our business model and provides significant cash flow visibility for investors and stakeholders.

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Additionally, we believe we qualify for federal tax credits, including certain investment and production tax

credits available under the Internal Revenue Code, which provide incremental value uplift to our project economics

and financing strategy. We intend to monetize tax credits primarily through partnerships with investors and through

the sale and transfer of tax credits to buyers, which we believe will provide an efficient source of liquidity to fund

our development and construction activities. For example, on April 10, 2026, we entered into an agreement with

monetization supports capital deployment for our utility-scale geothermal projects such as Cape Station, where tax

credits enhance project economics and investor confidence.

As of December 31, 2025, we have entered into 658 megawatts of PPAs with utilities, hyperscalers, and

community choice aggregators. As we scale our EGS operations, we intend to continue entering into new PPAs to

underpin future growth and reinforce our leadership in sustainable baseload power generation. Beyond our current

contracted backlog, we have also entered into a 3-gigawatt framework agreement with Google to advance and

structure potential power offtake opportunities for current and planned data centers in both grid-connected and

alternative energy solutions. The GFA establishes a framework under which we are required to propose projects

totaling at least one gigawatt of capacity within two years, with Google retaining discretion to accept or decline each

proposal. While the GFA does not constitute contracted offtake, we believe the agreed-upon pricing parameters and

priority geographies position us to potentially accelerate the development of up to one gigawatt of geothermal power

capacity. For more information, see "Business — Google Geothermal Framework Agreement," and "Risk Factors

—The GFA is a non-binding agreement, and does not obligate Google to purchase power from us."

**Key Factors Affecting Our Business and Results of Operations**

The growth and future success of our business depends on many factors. While each of these factors presents

significant opportunities for our business, they also pose important challenges that we must successfully address in

order to sustain our growth, improve our results of operations and achieve and maintain our long-term profitability.

***Our ability to commence and expand commercial operations***

The success of our business model is highly dependent on our ability to commence and scale commercial

operations at our Cape Station site and future locations in a capital-efficient and timely manner. Our ability to be

profitable and generate positive operating cash flows is primarily dependent on our ability to generate revenues

through the sale of electricity pursuant to our PPAs. Through monetization of our tax credits and our other assets,

including any intellectual property, data, or advisory arrangements that may be pursued in the ordinary course, we

expect to further improve profitability.

Our ability to sell electricity depends on our ability to successfully commence and maintain production under

our PPAs. We are currently targeting a COD of approximately 100 megawatts at our Cape Station GeoCluster by

early 2027. However, there is no guarantee that we will achieve such CODs within those timeframes or at all.

Failure to drill and complete wells to target length and temperature, commission balance-of-plant systems, and

interconnect to the grid, among other things, could result in delays in commencing production or expanding

capacity. For more information, see "<u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>—Risks Related to Our Business — If the energy production by or

availability of our power plants is less than expected, they may not be able to satisfy minimum production or

availability requirement obligations under our PPAs."

Commencement and expansion of our commercial operations are further dependent on securing and maintaining

permits, rights-of-way, land access, water rights, transmission interconnection, and approvals from federal, state, and

local authorities, and on our ability to satisfy ongoing operational compliance obligations. Any delay in obtaining or

maintaining such permits or approvals, or the imposition of additional requirements or legal challenges, could

postpone commissioning timelines, reduce capacity factors, or increase costs.

The successful development of our project pipeline depends on our ability to obtain sufficient interconnection

and transmission capacity to support delivery obligations under our PPAs. For example, for Cape Station Phase II,

we currently have approximately 290 megawatts of interconnection and transmission rights. This capacity is

sufficient to meet the obligations under our original PPAs with Southern California Edison (SCE) and Clean Power

Alliance (CPA), but is insufficient to support the full 384 megawatts of combined contracted capacity with the

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subsequent expansions of the SCE and CPA PPAs. If we are unable to secure additional interconnection and

transmission capacity or alternative delivery arrangements on a timely basis or at all, our original PPAs would

remain in effect; however, we may be unable to deliver the additional megawatts of contracted capacity, which could

result in reduced revenues, payment of liquidated damages, contract modifications or terminations, or other adverse

effects on our business and financial condition.

We expect that, as we achieve COD at Cape Station and progressively ramp up production, our revenue

contribution from our PPAs will increase, and our cost structure will benefit from wellfield optimization,

learning-curve efficiencies, and disciplined project execution. We also expect to benefit from the operational

resiliency afforded by utilizing multiple ORC turbine units capable of operating independently, enabling scheduled

maintenance or unplanned outages on a single unit to be isolated without requiring a full plant shutdown and

supporting higher availability over time. We further expect that expanding our installed capacity in a staged and

capital-efficient manner, aligned with contracted offtake and available interconnection or co-location opportunities,

will enhance cash generation through a combination of electricity sales, tax credit monetization, and select

commercialization of our intellectual property and data.

***Our ability to capitalize on the increased surge in national power demand***

Our revenues depend in large part upon our PPAs with third-party off-takers. We have executed 658 megawatts

of binding PPAs with credit-worthy utility and corporate energy buyers, including Southern California Edison,

Google / NV Energy, and Shell. These contracts collectively represent over $7.2 billion in potential revenue

backlog. We are also in active discussion with offtakers for additional capacity. In addition to those contracts, we

have entered into a 3-gigawatt GFA with Google that we believe establishes a repeatable commercial model to

accelerate deployment and capitalize on rapidly expanding demand from hyperscale customers.

Our growth and ability to renew and enter into additional long-term PPAs is dependent on continued power

demand from utilities, corporate energy buyers and hyperscalers. Recently, demand has been driven by the rapid

increase in AI data center development and accelerating electrification across transportation, buildings, and industry,

which has contributed to record power consumption and substantial new market opportunities for energy suppliers.

At the same time as hyperscale data centers seek gigawatt-level connections to power their AI workloads, utilities

and generators have seen unprecedented requests for electricity supply. The Pew Research Center reports U.S. data

centers accounted for over 4.0% of national electricity use in 2024, with forecasts projecting demand to double or

triple by the end of the decade as AI models grow in size and complexity. In the short-term, we expect that the

heightened demand for reliable, large-scale generation will continue to support our engagement of long-term

contracts to supply power.

However, actual demand is subject to material uncertainty due to factors outside of our control, such as

technology advances, energy efficiency gains, and cyclical changes in potential customer investment patterns.

During periods of elevated wholesale prices, we may secure attractive PPA pricing and terms; however, when prices

decline or competition intensifies, negotiating advantageous PPAs can become more challenging. For projects where

prices are already locked in under long-term PPAs, typically for 15 years, we are more insulated from these changes.

This volatility complicates financial forecasting and capital planning for standardized GeoBlocks across our

GeoClusters and could reduce revenue visibility. In addition, if energy buyers prioritize lowest cost intermittent

options or defer procurement due to market uncertainty, our ability to execute programmatic offtake could be

impacted. In response, our strategy emphasizes flexibility, resilience, and ongoing assessment of portfolio alignment

with anticipated customer needs. Sustained growth will depend on our ability to adapt to evolving electricity usage

patterns and maintain disciplined capital allocation in the face of both opportunity and risk. Additionally, over time,

we expect the cost of our GeoBlocks to decrease as we accelerate our learning and scale our business, which we

believe will make us an attractive source of energy even during periods of decreased demand or heightened

competition. For more information, see "<u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>—Risks Related to Our Business— Expectations regarding

load growth may not materialize, and our business prospects could be harmed if geothermal energy is not widely

adopted or sufficient demand for geothermal systems does not develop or takes longer to develop than we

anticipate."

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In the short term, we expect that the current surge in electricity demand, particularly from AI-related data center

development, will continue. Assuming timely execution of our development plans, we anticipate our revenue will

increase on an absolute basis in response to such demand growth. Over the long term, we expect aggregate

electricity demand to moderate and ultimately level off from recent growth rates while remaining significantly

higher-than-expected current levels, and we anticipate our revenue will continue to expand as we are able to bring

additional power supply to market.

***Our ability to manage our supply chain and operating expenses as a result of inflation and high development***

***costs***

As a capital-intensive business that is commercializing enhanced geothermal systems to deliver clean, firm

power, our success is highly dependent on our ability to manage inflationary pressures and development and

operating costs. As we scale our standardized GeoBlock power plants and associated wellfield development within

our GeoClusters, we have been, and expect to continue to be, exposed to inflationary pressures and cost escalation

across our supply chain, including drilling and completions services, steel casing and wellheads, stimulation

consumables, turbines and heat exchangers for our ORC units, power electronics, construction labor, logistics, and

interconnection-related equipment and services. These factors, alongside higher development, labor, and overhead

costs, can increase operating expenses and extend development timelines.

Our success also depends on timely access to critical equipment and services, including turbines, generators,

heat exchangers, drilling rigs, tubulars, completion equipment, and power electronics. While the procurement of

eight 50-megawatt ORC turbines for Cape Station Phase II locks in a significant portion of our near-term surface

facilities scope, delays or cost escalations in other long lead items or drilling services could impact our schedule and

capital budget. In addition, the imposition of tariffs, trade restrictions, or inflationary pressures on steel, specialty

alloys, power equipment, or other supplied components could have a material adverse effect on our operations and

unit economics.

We continue to work with our commercial and supply chain partners to mitigate inflation and cost escalation

through multiyear procurement, standardized equipment specifications, and sustained operations within multi-

gigawatt GeoClusters to capture economies of scale. Management has evaluated the potential impact of supply chain

and raw materials factors on our business and believes that our modular, standardized plant design and a phased

wellfield development approach can mitigate schedule risk and soften cost impacts over time; however, there can be

no assurance that such measures will fully offset macroeconomic or supply chain pressures.

If the costs of power-generation equipment, drilling and completion services, steel and other raw materials, or

balance-of-plant equipment increase, we may be unable to fully recover those increases from customers under our

existing contracts. Where our commercial arrangements include pricing mechanisms or escalators, higher input costs

may be reflected in delivered power prices, but there is no assurance these provisions will fully offset inflationary or

development cost pressures, which could negatively affect our margins and results of operations.

We expect that as we scale our GeoBlocks and GeoClusters and realize learning curve efficiencies and

economies of scale, we will improve our ability to manage operating expenses. Over the long term, we believe these

efficiencies will support improved profitability and margin expansion of our business.

***Our ability to enhance our productivity and improve our cost structure through technological innovation***

Our operating performance and cost competitiveness will depend on our ability to increase productivity and

lower costs over time. Achieving these outcomes will require continued technology development, standardization,

and integration for which magnitude and timing of any benefits are uncertain.

We expect that the continued development of additional wells at Cape Station and other sites will yield further

operational learnings and technology enhancements which, over time, will support higher net generation per well

and higher project returns. With our procurement of eight 50-megawatt ORC turbines for a 400-megawatt Cape

Phase II deployment at Cape Station, we have established a standardized power plant design that we expect to use

for years to come. We believe that this standardization will allow us to achieve economies of scale in our power

generation supply chain by fixing the nameplate generating capacity of our surface facilities and sizing our wellfield

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accordingly, rather than designing bespoke power generation systems sized to fit the initial subsurface productivity

at any single site. By decoupling surface plant design from subsurface variability and executing repeated well

designs, we expect to benefit from parallel-tracked iterative improvement that incrementally improves well

performance while reducing facilities cost and schedule.

Our ability to increase energy output and reduce cost per megawatt-hour depends on consistently advancing and

integrating our technology stack across subsurface, surface, and digital operations. We apply horizontal drilling,

multistage stimulation, and engineered reservoir design to expand heat transfer surface area and drive higher gross

power per well, while standardizing power conversion in 50-megawatt, air-cooled ORC GeoBlocks to compress

cycle times and accelerate learning curves. As we scale, we leverage high-fidelity downhole fiber-optic data,

proprietary computational models, and AI-enabled analytics to optimize well placement, drilling and completions

design and execution, and plant operations to increase capacity factor, reduce downtime, and improve thermal sweep

over the life of each reservoir. Realizing these efficiency gains requires continued progress along drilling and

completions learning curves, reliable access to specialized equipment and services, and effective integration of

digital tools with field execution.

Our recent development progression illustrates these learning effects. From Project Red to Cape Station, we

advanced from approximately 3,000-foot lateral length wells targeting 365°F rock to approximately 5,000-foot

lateral length wells targeting 400°F rock. In June 2025, we drilled our deepest well to date, a vertical observation

well that has a total depth of 15,774 feet that is projected to reach a bottomhole temperature of 550 °F after full

thermal equilibration. In March 2026, we also finished drilling the first well of our next major well design,

consisting of a well drilled with an approximately 7,500 foot lateral length targeting 425°F rock. We believe these

subsurface improvements, paired with a standardized power plant design, will support higher individual well output,

improved field productivity, and more predictable cost and schedule execution across modules. We ultimately aim to

increase production per well by accessing higher-temperature resources and extending lateral lengths, but there is no

certainty that this can be achieved. These expectations are subject to the risks inherent in subsurface development,

including geologic heterogeneity, drilling and completion performance, reservoir thermal drawdown, induced

seismicity management, and water sourcing and disposal constraints.

Underperformance in reservoir productivity, delays in wellfield construction, insufficient data quality, or

inaccuracies in our models could lead to higher than expected capital intensity, lower realized output per well, or

elevated operating costs. Moreover, failure to standardize and replicate our GeoBlock design, or to integrate turbine,

balance-of-plant, and control systems as planned, may limit our ability to translate improvements from one

deployment to the next. If we do not achieve anticipated technology-driven gains in drilling speed, lateral length,

temperature targeting, thermal energy recovery and ORC performance, we may be unable to deliver expected per-

kilowatt cost reductions or step-ups in gross megawatt productivity per well.

***Our ability to obtain additional capital to fund more GeoCluster and GeoBlock deployments***

We operate in a capital-intensive industry and our strategy depends on sustained access to both project and

corporate-level capital to finance drilling, completions, and standardized 50-megawatt ORC power units within our

multi-gigawatt GeoClusters. As we scale construction and development of our projects, we expect periods of

negative operating cash flow, particularly at our Cape Station GeoCluster, where 500 megawatts is under

construction with staged energization. Although we have executed binding PPAs which provide a substantial

contracted revenue backlog, our ability to convert these commercial arrangements into operating projects relies on

timely and cost-effective access to external financing.

Sources of funding for our development include project and corporate-level equity, term debt, construction

financing and bridge loans, tax equity, as well as contracted revenue under long-term PPAs and forward sales of tax

credits. Since our inception, we have successfully accessed multiple sources of capital and have built a robust

financing function capable of securing funding across our capital stack. As of December 31, 2025, we have raised

approximately $1.2 billion in corporate-level capital, while also raising $320.0 million in connection with project-

level debt and equity. Subsequently, on March 6, 2026 we closed an approximately $421.4 million project finance

credit facility with a syndicate of nine lenders for Cape Phase I.

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If capital is unavailable on acceptable terms or within required timeframes, we may be forced to delay, scale

back, or reprioritize GeoBlocks, defer interconnections, or restructure project scopes. Financing availability and cost

are influenced by conditions in capital markets, interest rate environments, lender appetite, and our operating

performance, including the pace at which we realize drilling and subsurface learning curves, achieve expected power

outputs, and maintain construction schedules and budgets. Even with our standardized design, secured geothermal

mineral rights, and maturing supply chain relationships with blue-chip service providers and equipment

manufacturers, we face risks of cost inflation, schedule slippage, and equipment delivery delays that can increase

required funding or compress returns, which in turn may limit financing availability. While project-level, non-

dilutive capital can delay our need to raise funds at the corporate level, there can be no assurance that such financing

will be available at scale or that it will fully fund our development plans. In addition, certain funding sources are

milestone-based or conditioned on project progress, and cost overruns or schedule delays could affect the

availability and timing of such funding.

As we continue to finance additional projects, we are identifying and executing on the optimal cost of capital,

reducing financing costs and increasing local project profitability. We expect our disciplined financing model to

continue to position us to fund GeoCluster and GeoBlock buildout efficiently across market cycles. However, there

is no assurance we will continue to have access to such lower-cost sources of capital. Any shortfall could require us

to raise additional dilutive equity, incur higher-cost debt, monetize contracted offtake or other assets on unfavorable

terms, or slow execution of our GeoCluster buildout. If we cannot obtain adequate capital when needed, we may be

unable to meet contractual obligations under PPAs, achieve planned cost reductions from modular replication, or

deliver capacity on the timelines our customers expect, which could materially and adversely affect our business,

liquidity, financial condition and operations.

***Our ability to secure and monetize government incentives and tax credits***

A portion of our project economics and capital deployment strategy relies on the availability and monetization

of federal tax credits, including investment and production tax credits established under current energy legislation.

We intend to monetize these tax credits primarily through tax equity partnerships and through the sale and transfer

of tax credits to buyers, which support reductions in upfront development costs and provide additional liquidity for

our EGS projects. Any changes to tax credit policies, qualification criteria, or legislative sunsets represent a risk to

our business model and financial performance. Additionally, growing regulatory complexity, including enhanced

compliance requirements, could hinder our ability to claim or transfer tax credits effectively. The potential early

expiration or curtailment of tax incentives could delay project timelines and reduce returns, adversely impacting our

growth prospects.

We expect that continued access to investment and production tax credits will enhance our project economics

and accelerate our commercialization timetable, enabling a more rapid scale-up of our geothermal portfolio.

**Non-GAAP Financial Measures**

We do not currently present Adjusted EBITDA or other non-GAAP financial measures in this prospectus, as our

operations to date have been primarily pre-commercial development activities. However, we intend to begin

presenting Adjusted EBITDA in the future once we commence commercial operations at Cape Station, to provide

investors with additional insights into our operating performance and cash flow generation from power sales.

Adjusted EBITDA will be defined as net income (loss) adjusted to exclude interest expense, income taxes,

depreciation and amortization, share-based compensation, and other non-recurring or non-cash items that

management believes do not reflect the underlying performance of our geothermal projects and our business. We

believe that presenting Adjusted EBITDA will complement the most directly comparable GAAP financial measures

and assist investors in evaluating our financial condition, operational trends, and progress toward scalability post-

commercialization. This disclosure is made in anticipation of our transition to revenue-generating operations

following the closing of this offering.

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**Components of Results of Operations**

***Revenues***

*Sources of Revenue*

Our revenue generation is primarily driven by the sale of electricity from geothermal resources, facilitated

through long-term PPAs with utilities and other entities. In 2025 and 2024, we successfully secured multiple long-

term PPAs, laying the groundwork for substantial operational activities which we expect to commence beginning in

late 2026. Pricing under these PPAs is generally fixed for the duration of the contract, although some of the

Company's PPAs may have price escalators based on an index or other rates specified in the applicable PPA. Our

most near-term PPA is an arrangement with Shell for a guaranteed capacity of 31 megawatts, with a delivery term of

15 contract years and a scheduled commercial operation date in late 2026. We also have PPAs with Southern

California Edison, Google / NV Energy, Clean Power Alliance, Desert Community Energy, and Calchoice for a total

of 658 megawatts with similar 15 year contracted terms. As our development projects achieve commercial operation

beginning in late 2026, we expect revenues to increase significantly from the current early-stage levels, providing

stable, long-term cash flows from contracted electricity sales.

Revenue from our geothermal power sales under existing PPAs does not include a transfer of tax attributes

(including tax credits), which we plan to separately monetize through tax equity arrangements or through the sale

and transfer of tax credits to buyers.

Revenue generated during the years ended December 31, 2025 and 2024 includes ancillary fees associated with

rights to geothermal production, which are not expected to be significant to our revenue generation activities in the

future.

***Costs and Expenses***

*Operation and Maintenance*

Operation and maintenance expenses consist of site-based costs incurred to operate, service, and maintain our

installed geothermal test wells, related field infrastructure, and reservoir evaluation activities. These costs include

contracted field labor, geological and geophysical services, reservoir and engineering support, seismic surveys,

equipment rentals, materials and supplies, routine inspections, and repair and maintenance activities, as well as

ongoing technical support necessary to sustain field operations.

Operation and maintenance expenses are incurred on an ongoing basis to support geothermal site evaluation and

development activities and to maintain the performance of our test systems. These costs exclude corporate overhead

and administrative functions, which are recorded in general and administrative expenses. Operation and maintenance

expenses are expensed as incurred in accordance with GAAP. We expect operation and maintenance expenses to

increase significantly as Cape Station reaches COD and field activities transition from testing and evaluation to

sustained operations.

*Research and Development Expenses (Income), Net*

R&D expenses (income), net consist primarily of costs associated with the development of our proprietary

enhanced geothermal systems technology, including advanced computational models, horizontal drilling techniques,

and distributed fiber optic sensing systems. These expenses encompass engineering design, technical personnel

costs, field testing, data analysis, and the development of our proprietary geothermal well and reservoir engineering

solutions.

R&D expenses (income), net are expensed as incurred in accordance with GAAP and are presented net of grant

proceeds received from the U.S. Department of Energy and other government agencies that support our technology

development initiatives. In certain periods, grant proceeds may exceed gross R&D expenditures, resulting in the

presentation of net R&D income. Our R&D investments are critical to maintaining our technological leadership in

EGS and achieving the cost reductions and performance improvements necessary to scale our operations and deliver

competitive baseload renewable power.

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Because R&D activities are central to our business model and long-term technology roadmap, we expect R&D

spending to continue as we advance new initiatives, although the level of expense may fluctuate depending on the

stage and scale of specific development programs.

*General and Administrative Expenses*

General and administrative expenses include costs related to corporate management and support functions, such

as general management, legal, accounting, finance, human resources, sales, marketing, and other functions not

directly associated with revenue generating activities. These expenses are expensed as incurred.

We expect our general and administrative expenses to increase as we continue to grow our personnel headcount

to support our R&D activities, construction activities and expansion of our operations as we progress toward

commercial operations. We also anticipate increased expenses associated with operating as a public company,

including costs for audit, legal, regulatory and tax compliance with the rules and regulations of the SEC and

NASDAQ listing standards, as well as increased director and officer insurance premiums and investor relations

costs.

*Operating Lease Expenses*

Operating lease expenses, prior to us generating power, consist of annual lease payments for geothermal

resource rights across our 595,900 acre portfolio in California, Colorado, Idaho, Nevada, New Mexico, Utah and

Washington as of December 31, 2025. These payments, made to the Bureau of Land Management, state agencies,

and private landowners, maintain our exclusive access to subsurface geothermal resources during the exploration,

development, and construction phases of our projects. Operating lease expenses also include costs for office

facilities and equipment rentals necessary to support our operations. We recognize operating lease expenses on a

straight-line basis over the lease term in accordance with Accounting Standards Codification ("ASC") 842. These

lease payments are critical to securing our extensive land position and development pipeline while we advance

projects toward commercial operation. Once we start to generate power, our lease agreements are structured such

that we will pay a royalty that is a percentage of revenue received from the sale of power and other attributes over

the leased land.

*Depreciation and Amortization*

Depreciation and amortization primarily reflects the depreciation of property, plant and equipment placed in

service, including leasehold improvements and equipment.

***Other Income (Expense)***

*Interest Income and Expense*

Interest income consists of interest earned on our cash and cash equivalents, while interest expense consists of

interest incurred on our Mercuria Credit Agreement and Credit Facility.

*Other Non-Operating Expense*

Other non-operating expense consists primarily of non-cash fair value remeasurement gains or losses on warrant

and derivative liabilities, as well as state franchise tax expense.

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**Results of Operations** 

The following table sets forth our results of operations for the years indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Change** |
| (Dollars in thousands, except percentages) | **2025** | **2024** | $**%** |
| Revenues  | $138 | $199 | (31)% |
| Costs and expenses: |  |  |  |
| Operation and maintenance ............................. | 388 | 380 | 2% |
| Research and development income, net ............ | (133) | (97) | 37% |
| General and administrative expenses ............... | 38718 | 34735 | 11% |
| Operating lease expenses ................................. | 9681 | 6895 | 40% |
| Depreciation and amortization .......................... | 290 | 124 | 135% |
| Operating loss ................................................ | (48806) | (41838) | 17% |
| Other income (expense): |  |  |  |
| Interest income ................................................ | 4192 | 1787 | 135% |
| Interest expense ............................................... | (8406) | (766) | 997% |
| Other non-operating expense ............................ | (4767) | (237) | 1909% |
| Loss before income taxes ............................... | (57787) | (41054) | 41% |
| Income tax expense .......................................... | (1) | (56) | (99)% |
| Net loss ............................................................... | $(57788) | $(41110) | 41% |

---

*Revenues*

Revenues decreased by less than $0.1 million in 2025 compared to 2024. Revenues in 2025 and 2024 relate to

ancillary fees associated with rights to geothermal production at Project Red. This type of revenue is not expected to

be significant to our long-term revenue generation, as we have not yet commenced large-scale commercial

operations. The change was not material to overall results.

*Operation and Maintenance*

Operation and maintenance expenses increased by less than by $0.1 million in 2025 compared to 2024. The

increase was primarily attributable to modest increases in contracted labor, engineering support and site evaluation

activities. The change was not material to overall results.

*Research and Development Expense (Income), Net*

R&D expenses (income), net were relatively consistent between 2025 and 2024. Gross R&D expenses

decreased by $2.7 million, primarily due to the completion of development activities related to Project Red

following its achievement of commercial operations in 2024. This decrease was largely offset by a $2.6 million

reduction in grant proceeds due to lower qualifying expenditures under U.S. Department of Energy programs.

*General and Administrative Expenses*

General and administrative expenses increased by $4.0 million in 2025 compared to 2024. During the year, we

experienced an increase in general and administrative cost activities, driven by employee-related costs and additional

administrative and operational support functions required to support our growth and advance our

public-company-readiness initiatives.

Employee-related expenses increased by $3.8 million in 2025 compared to 2024, primarily due to an increase in

headcount of 89 employees to expand our technical, operational, and administrative functions to support project

development, execution, and corporate operations. This headcount growth resulted in an increase in

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compensation-related costs, including salaries, payroll taxes, health and welfare benefits, performance-based

bonuses, stock-based compensation, and retirement plan contributions.

Additional increases in general and administrative expense of $1.8 million were attributable to higher software,

information technology, and data-related costs, including licensing fees and cloud-based services, as well as an

increase of $1.3 million for insurance and surety bond expenses associated with our expanding asset base and

operational footprint. These increases were partially offset by a $3.4 million decrease in legal and professional

services expense, primarily due to reduced reliance on external legal advisors following the expansion of our

in-house legal function. In addition, legal costs were elevated in 2024 due to increased transactional activity,

including a higher volume of commercial agreements and other corporate matters that did not require external legal

services at similar levels in 2025. The remaining movement in general and administrative expenses related to a

variety of individually insignificant movements year-over-year.

Certain general and administrative expense categories experienced variability year-over-year due to the timing

of specific initiatives, professional engagements, and one-time or non-recurring costs. While we expect these

expenses to remain elevated as we continue to scale our operations and infrastructure, the rate of growth in general

and administrative expenses is expected to moderate over time as we complete key build-out initiatives and achieve

greater operating leverage.

*Operating Lease Expenses*

Operating lease expenses increased by $2.8 million in 2025 compared to 2024. The increase was primarily

attributable to 69 new lease commitments entered into during 2025 to support our continued growth and expanded

operational requirements.

Operating lease expenses consist primarily of geothermal lease payments, office facilities, operational sites, and

equipment rentals. The increase reflects additional leased acreage and infrastructure required to support project

development and operational expansion.

*Depreciation and amortization*

Depreciation and amortization increased by $0.2 million in 2025 compared to 2024, primarily due to additional

assets placed in service. The change was not material to overall results.

*Interest Income and Expense*

Interest income increased by $2.4 million in 2025 compared to 2024. The increase was due to higher average

cash balances at the beginning of 2025 following our successful Series D preferred stock financing completed in

2024. Interest expense increased by $7.6 million in 2025 compared to 2024. The increase was due to an increase in

outstanding debt to fund our growth and operations, including draws of $30.0 million against our Credit Agreement

and $35.5 million against the Credit Facility with Mercuria Energy Trading SA ("Mercuria").

*Other Non-Operating Expense*

Other non-operating expense increased by $4.5 million in 2025 compared to 2024. This increase was primarily

driven by non-cash valuation remeasurement losses of $5.1 million recognized during 2025, including an increase in

the warrant liability fair value of $3.4 million at December 31, 2025 compared to its initial measurement at October

6, 2025, as well as recognition of a bifurcated embedded derivative of $1.7 million recorded at fair value for our

project-level subsidiary Cape Phase 1 Intermediate HoldCo, LLC ("Cape P1 Intermediate HoldCo") with Centaurus

Capital LP ("Centaurus").

The remaining change in other non-operating expense, totaling approximately $0.6 million decrease, was

attributable to the release of a previously recorded sales tax accrual upon expiration of the applicable statute of

limitations during 2025.

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**Liquidity and Capital Resources**

***Sources and Uses of Liquidity***

*Sources of Liquidity*

We maintain a strong focus on liquidity to support our ongoing geothermal development and operations. As a

development-stage company, our principal sources of liquidity have been derived from equity financing, including

proceeds from redeemable convertible preferred stock issuances, project and corporate-level debt financing

arrangements, project-level equity financings, and grant funding from government agencies. We consider our level

of cash on hand, borrowing capacity, current ratio, and working capital levels to be our most important measures of

short-term liquidity. For long-term liquidity indicators, we believe our ratio of long-term debt to equity and our

historical levels of net cash flows from investing activities to be the most important measures.

As of December 31, 2025, our liquidity position consisted of $461.8 million in unrestricted cash and cash

equivalents (including $442.0 million held in money market funds) and $6.0 million in restricted cash, and in

addition to our cash position, we had access to the following undrawn amounts under our agreements with Mercuria:

$70.0 million under our Credit Agreement, and $44.5 million under our Letter of Credit Facility. As of December

31, 2025, we had fully drawn against our XRC Facility.

Our liquidity position was strengthened through recent equity financings, including $462.0 million in gross

proceeds from our Series E equity raise in 2025 and $368.3 million in gross proceeds from our Series D preferred

stock financing in 2024. We have deployed this capital to fund the exploration and development of our geothermal

projects, construct power generation facilities, support R&D activities and meet working capital requirements.

We regularly evaluate our liquidity position and capital structure in the context of our strategic development

plan. Our ability to access additional capital through equity offerings, debt financings, or strategic partnerships will

be critical to executing our business plan and achieving our goal of becoming a leading developer and operator of

next-generation geothermal energy projects. Our cash flows from operations, borrowing availability, and overall

liquidity are subject to various risks and uncertainties, including those described in the section titled "<u>[Risk Factors](#i024b9246cdc64bff8f3f6e527abc6720_2095)</u>"

elsewhere in this prospectus.

See further discussion of our available liquidity as described in "<u>[Management Discussion and Analysis of](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u> 

<u>[Financial Condition and Results of Operations](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u> — Indebtedness" section below, along with Note 3 – Debt and Off-

Balance Sheet Arrangements, Note 8 – Common Stock, and Note 9 – Redeemable Convertible Preferred Stock in

the notes to consolidated financial statements.

*Catalyst and Centaurus Financing Agreements* 

During the year ended December 31, 2025, we executed Amended and Restated Limited Liability Company

Agreements for our project-level subsidiary Cape Phase I HoldCo, LLC ("Cape P1 HoldCo") with Granite Energy

InvestCo, LLC ("Catalyst") and Cape P1 Intermediate HoldCo with Centaurus. Catalyst subscribed to 4,635 Class A

Units in Cape Phase I HoldCo, LLC for a total capital contribution of $100.0 million. Centaurus subscribed to 7,500

Class A Units in Cape P1 Intermediate HoldCo for an initial contribution of $75.0 million. In connection with this

agreement, Centaurus was issued warrants to purchase up to 3,550,329 shares of Series D-3 convertible preferred

stock in our company or the Company's most senior class of equity securities at the time of exercise, at an exercise

price of $5.28 per warrant or on a cashless basis (the "Centaurus Warrants"). The Centaurus Warrants will expire

immediately prior to the closing of a firm commitment underwritten initial public offering of our Class A common

stock. The Centaurus Warrants have a four-year term measured from October 6, 2025. The Cape Station Phase I

project equity financings with Catalyst and Centaurus contain required payout provisions that must be satisfied prior

to any distributions to our parent company. The Catalyst financing is structured as project-level preferred equity

with a priority dividend and return-of-capital profile, with cash applied first to preferred distributions before

amounts are available to common equity. The Centaurus financing, which we have negotiated for Cape Station

Phase I as junior project preferred equity, includes a distribution waterfall that prioritizes cash to Centaurus until

agreed return hurdles are achieved, after which distributions step down; certain terms could further reduce cash

available to common equity. Preferred distributions under both the Catalyst and Centaurus financings commence

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only after Cape Station Phase I has achieved COD under the applicable PPAs and is generating distributable cash

flow. As a result, we do not expect any preferred distributions to be required during the twelve-month period

following December 31, 2025.

Over the longer term, beyond the twelve-month period following December 31, 2025, the Catalyst financing

requires cumulative preferred distributions to Catalyst totaling approximately $139.0 million. These distributions are

based on an amortizing repayment profile and are expected to be paid on a quarterly basis through the end of the

repayment period, December 31, 2041. Over the same longer-term period, the Centaurus financing requires

cumulative distributions of approximately $75.0 million before the applicable priority distribution percentage steps

down, followed by a second priority distribution period requiring Centaurus to receive additional cumulative

distributions of approximately $47.0 million. Following completion of this second priority distribution period,

Centaurus will retain a royalty interest in the project equal to $5.0 per MWh. As preferred distributions under the

Centaurus financing are tied to achievement of return hurdles, the required amounts herein are subject to change.

Certain provisions in the Catalyst and Centaurus financing agreements – including, but not limited to, change of

control provisions, refinancing or asset sale provisions, and the exercise of put or call rights – could accelerate,

modify, or otherwise affect these distribution requirements. In addition, these and any future project-level

distribution waterfalls, reserve requirements, and covenant-based limitations associated with current and future

financings may delay, reduce, or entirely preclude cash distributions to us for extended periods, even when the

underlying project is operating as expected. Any such restrictions could reduce cash distributions from Cape Station

Phase I to the holding company level.

See Note 13 – Variable Interest Entity of the notes to the consolidated financial statements for further

discussion.

*Capital Requirements*

Our capital requirements for 2026 and beyond are expected to remain substantial as we advance multiple

geothermal projects toward commercial operation, including Cape Station. While we have not yet achieved

significant revenue generation, we anticipate our funding needs will include continued capital expenditures for

projects under construction, such as Cape Station, exploration and development costs for new geothermal sites

across our 595,900 acre portfolio, operating expenses as we scale our organization and technical capabilities and

working capital to support expanded operations.

Capital expenditures over the next 12 months are projected to total approximately $1.2 billion, driven by

drilling, well completion, and continued construction activities at Cape Station as well as early development of other

GeoClusters. Of this amount, approximately $125.0 million relates to our Cape Station Phase I facility and $940.0

million relates to our Cape Station Phase II facility.

Based on current conditions, we believe that our capital resources are sufficient to meet our financial obligations

and fund our planned development activities for at least the next 12 months. As a company with significant

developmental activities transitioning toward commercial operations, we continue to rely on external financing to

fund our operations and growth initiatives.

***Indebtedness***

*XRC Facility*

During the year ended December 31, 2024, Cape Generating Station 3 LLC and Cape Generating

Station 5 LLC, two of our wholly owned subsidiaries, issued two promissory notes under the XRC Facility, and

during the year ended December 31, 2025, we issued an additional promissory note. As of December 31, 2025, the

XRC Facility consisted of three tranches totaling $145.6 million in commitments. Each tranche was set to mature in

2027, with an option for two additional one-year extensions upon lender approval. As of December 31, 2025 $145.6

million was drawn under the XRC Facility.

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The XRC Facility contained certain restrictive covenants, including covenants restricting our ability to incur or

assume additional indebtedness, grant or assume liens, engage in fundamental changes such as mergers,

consolidations, liquidations, or the sale of substantially all assets, make restricted payments, modify project

documents in ways materially adverse to the lender, engage in transactions with affiliates, or enter into restrictive

agreements.

The XRC Facility contained customary events of default. If an event of default occurred, the lender was

permitted to cease making any further loan advances and/or declare all outstanding obligations immediately due and

payable.

On April 14, 2026, we repaid all outstanding balances under the XRC Facility, and the XRC Facility was

terminated.

*Mercuria Credit Agreement and Credit Facility*

During the year ended December 31, 2024, Fervo HoldCo LLC, one of our wholly owned subsidiaries, entered

into a $40.0 million Credit Agreement and $80.0 million Credit Facility with Mercuria. In May 2025, the Credit

Agreement was amended to increase the term loan from $40.0 million to $100.0 million. As of December 31, 2025,

we had drawn $30.0 million against the Credit Agreement and utilized $35.5 million against the Credit Facility. The

Credit Agreement matures in 2027, while the Credit Facility matures on the earlier of November 20, 2027 or upon

acceleration of its obligations due to an event of default.

The Credit Agreement requires compliance with financial covenants including maintaining a net asset value to

total exposure amount ratio of at least 2.5 to 1.0, a total debt to equity capital contributions plus total debt ratio not

exceeding 0.6 to 1.0, and a total exposure amount to total consolidated capital ratio not exceeding 0.4 to 1.0.

Both agreements contain covenants that restrict our ability to incur additional indebtedness on pledged entities,

grant liens, make restricted payments or investments beyond those existing at the effective date, engage in

fundamental changes such as mergers or asset sales, conduct affiliate transactions, enter swap agreements outside the

ordinary course of business, modify organizational documents adversely to lenders, or change our business

nature. Furthermore, under the terms of the Credit Agreement, our wholly owned subsidiary Fervo HoldCo LLC, the

borrower, is restricted from making cash distributions to Fervo Energy Company, our parent company. See Note 8 –

Common Stock of the notes to consolidated financial statements, for further discussion of our restricted net assets.

The Credit Agreement and Credit Facility contain customary events of default. If an event of default occurs, the

lender may declare the commitments to be zero and/or declare all outstanding obligations immediately due and

payable.

As of December 31, 2025, we were in compliance with all restrictive and financial covenants. For further

discussion of our indebtedness, see Note 3 – Debt and Off-Balance Sheet Arrangements of the notes to consolidated

financial statements.

*Project Granite Facility* 

In March 2026, our subsidiaries entered into a senior secured credit agreement to finance the development of

our Cape Station Phase I project. The facility provides for aggregate commitments of approximately $421.4 million,

consisting of (i) a construction loan facility, (ii) a tax credit transfer bridge loan facility, (iii) multiple letter of credit

facilities, and (iv) a term loan facility that will refinance the construction loans upon satisfaction of specified

conversion conditions.

Borrowings under the Project Granite Facility will be available during the construction period, subject to certain

conditions precedent. Following completion of the project and achievement of specified operational and

performance criteria, the construction loans are expected to convert into term loans with an amortization profile

sized to projected cash flows from the project. We used a portion of the proceeds of the Project Granite Facility to

repay all amounts outstanding under the XRC Facility, and the remaining proceeds of the Project Granite Facility

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will, among other things, fund remaining Cape Station Phase I construction costs and potentially provide for an

equity recapitalization.

The Project Granite Facility contains customary affirmative and negative covenants for a project financing of

this type. These covenants, among other things, require the project entities to comply with construction budget and

schedule requirements, satisfy testing and conversion conditions prior to transitioning to term debt, maintain

required reserves (including debt service and major maintenance reserves), and operate the project in accordance

with the applicable material project documents. The facility also includes a cash management structure pursuant to

which project revenues are applied in a specified priority of payments, and distributions are subject to the

satisfaction of specified conditions.

Additionally certain covenants restrict the ability of project entities to incur indebtedness, create liens, make

investments, enter into mergers or other fundamental changes, dispose of assets outside of permitted dispositions,

enter into non-arm's-length affiliate transactions, and engage in business activities other than those related to the

development and operation of the project.

The facility includes customary events of default, including payment defaults, covenant breaches, insolvency

events, and failure to meet construction or operational milestones. Upon an event of default, the lenders may

accelerate the obligations and exercise remedies against the collateral.

***Net Operating Losses ("NOL") and Valuation Allowance***

We have significant NOLs that may provide future offset to taxable income during the applicable carryover

periods. As of December 31, 2025, we had approximately $85.7 million of net operating loss carryforward for

Federal tax purposes, all of which are indefinitely lived. See Note 18 – Income Taxes of the notes to consolidated

financial statements for further discussion of our NOLs and valuation allowance.

***Cash Flow Activities***

The following table summarizes our cash flow activities:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
| (Dollars in thousands) | **2025** | **2024** |
| Beginning cash, cash equivalents and restricted cash ............................................... | $199428 | $29115 |
| Net cash (used in) provided by: |  |  |
| Operating activities ................................................................................................. | (31757) | (54748) |
| Investing activities ................................................................................................... | (465659) | (178693) |
| Financing activities ................................................................................................. | 765824 | 403754 |
| Net increase in cash, cash equivalents and restricted cash ........................................ | 268408 | $170313 |
| Ending cash, cash equivalents and restricted cash ..................................................... | $467836 | $199428 |

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*Net Cash Used in Operating Activities* 

Net cash used in operating activities decreased by $23.0 million in 2025 compared to 2024, primarily driven by

our operating losses and timing of payments and receipts related to our operating assets and liabilities. Net loss,

excluding non-cash activities, was $43.8 million in 2025 compared to $34.8 million in 2024, which contributed to a

$9.0 million increase in cash used in operating activities. Such increase was primarily associated with the elevated

general and administrative expenses, interest expense, and other non-operating expense as described in the

"<u>[Management Discussion and Analysis of Financial Condition and Results of Operations](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u> — Results of Operations"

section above.

Changes in operating assets and liabilities resulted in a $12.1 million source of cash in 2025 compared to a

$19.9 million use of cash in 2024, representing a $32.0 million year-over-year improvement. Cash from deposits

improved by $16.9 million, largely reflecting higher releases and refunds of performance bond deposits in 2025.

Cash from other operating assets improved by $7.4 million as such cash outflows recorded in 2024 did not recur in

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2025. Cash from prepaid expenses and other improved by $5.2 million, reflecting lower up-front vendor payments in

2025, and cash from other current liabilities improved by $7.0 million due to an increase in accrued expenses

resulting from the timing of cash payments for operating costs incurred during the year. Cash from grant receivables

improved by $1.8 million as grant receivables outstanding at December 31, 2024 were collected. These

improvements were partially offset by an unfavorable $6.4 million cash movement related to accounts payable due

to higher cash settlements of previously accrued obligations associated with elevated spend on general and

administrative expenses in 2025.

Overall, the year-over-year change in operating cash flows reflects higher cash operating losses from scaling the

business combined with working capital timing effects, consistent with our transition from development to

construction ahead of initial commercial operations.

*Net Cash Used in Investing Activities* 

Cash used in investing activities in 2025 and 2024 related entirely to capital expenditures, which increased by

$287.0 million in 2025 compared to 2024.

This increase reflects accelerated project development activities as we advanced multiple geothermal projects

toward construction and operation. Capital expenditures during 2025 were driven primarily by construction activities

at Cape Station, including the drilling and completion of production and injection wells, development of surface

facilities, and construction of related infrastructure necessary to support future commercial power generation.

Of our total capital expenditures in 2025, the majority of spending was non-discretionary, necessary to advance

projects already under development rather than discretionary or maintenance-level spending. They consisted of costs

required to complete in-process projects, satisfy regulatory and safety requirements, and meet contractual

milestones.

*Net Cash Provided by Financing Activities*

Net cash provided by financing activities increased by $362.1 million in 2025 compared to 2024.

Net cash provided by financing activities during 2025 was attributable to significant equity and debt financing

transactions completed during the year. Cash inflows included $461.4 million of net proceeds from our Series E

preferred stock financing, $99.5 million of net proceeds from a preferred stock issuance with Catalyst, $74.5 million

of net proceeds from a preferred stock and warrants issuance with Centaurus and $0.5 million of proceeds from the

issuance of common stock. In addition, we received $103.1 million of net proceeds from our XRC Facility and $28.8

million of net proceeds under our Credit Agreement and Credit Facility. These financing inflows were partially

offset $1.9 million of cash used for the repurchase of treasury stock during the year.

Net cash provided by financing activities during 2024 primarily reflected proceeds from equity and debt

financings completed during the year, including $366.6 million of net proceeds from the Series D preferred stock

financing and $36.6 million of net proceeds from the establishment of XRC Facility. In addition, we received $0.5

million of proceeds from the issuance of Simple Agreement for Future Equity ("SAFE") and $0.1 million of

proceeds from the issuance of common stock.

***Contractual Obligations and Commitments***

Our cash requirements under contractual commitments include purchase commitments, repayments of long-

term debt and related interest, and payments relating to our operating leases. We have several outstanding

contractual commitments with suppliers to obtain materials and services to support our operations. As of December

31, 2025, we had contractual commitments of $528.8 million, a majority of which relates to our Cape Station Phase

I and Cape Station Phase II facilities. Of this amount, $346.5 million is due in 2026 and $182.3 million is due

thereafter. Such obligations represent the minimum amounts contractually required under the applicable agreements

as of December 31, 2025. See Note 3 – Debt and Off-Balance Sheet Arrangements, Note 6 – Leases and Note 21 –

Commitments and Contingencies of the notes to consolidated financial statements, for further information on our

commitments.

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We also have distribution requirements under the Catalyst and Centaurus Financing Agreements. See

"<u>[Management Discussion and Analysis of Financial Condition and Results of Operations](#i024b9246cdc64bff8f3f6e527abc6720_2644)</u> — Sources and Uses of

Liquidity — Catalyst and Centaurus Financing Agreements" for further information.

***Off-Balance Sheet Arrangements***

In addition to the Credit Facility described above, we maintain surety bond arrangements to support our

contractual obligations under PPAs, land development agreements, and construction contracts. As of December 31,

2025, we had $57.5 million in outstanding surety bonds. We expect our requirements for the Credit Facility and

surety bonds to increase as we continue to develop our geothermal projects and enter into additional commercial

agreements.

**Qualitative and Quantitative Disclosures about Market Risk**

Market risk represents the risk of loss that may impact our financial position because of adverse changes in

financial market prices and rates. We manage and monitor these exposures to ensure appropriate measures are

implemented in a timely and effective manner.

***Interest rate risk***

Our exposure to interest rate risk relates to our cash investments and variable rate debt obligations, including the

Credit Agreement, Credit Facility and Project Granite Facility. The Credit Agreement, if drawn, is subject to SOFR

rate fluctuations. Assuming the outstanding balance of our variable-rate debt remained constant, a hypothetical 1.0%

change in interest rates would have resulted in a $1.8 million change in interest expense for the year ended

December 31, 2025.

As of December 31, 2025, approximately $442.0 million of our cash and cash equivalents were held in money

market funds. While these investments are subject to interest rate fluctuations that may impact our interest income,

we believe the short-term nature of these instruments and their high credit quality minimize our exposure to

significant principal risk.

***Inflation risk***

We are exposed to inflation risk across our capital-intensive geothermal development activities, particularly in

drilling services, specialized equipment, construction materials, and skilled labor costs. Our operating expenses,

including professional services and personnel costs, are also subject to inflationary pressures. While our costs may

increase with inflation, our long-term PPAs may provide limited inflation adjustments, potentially impacting our

margins over time. We seek to mitigate these risks through fixed-price contracts where feasible and by incorporating

inflation assumptions into our project planning, though the specialized nature of geothermal development limits our

ability to fully hedge against inflation.

***Credit risk***

Credit risk represents the loss that we would incur if a counterparty fails to perform under its contractual

obligations. To reduce this exposure, we maintain credit policies that include evaluating and monitoring

counterparties' financial condition (including credit ratings) and entering into agreements that govern credit

guidelines. Our deposits largely consist of performance bonds held as security for project completion. The credit risk

related to these deposits is concentrated in the financial strength of the surety companies issuing the bonds and the

contractors' ability to fulfill their contractual obligations. While we have not experienced any credit losses to date

and believe our counterparties are creditworthy, we cannot guarantee that we will not experience losses in the future,

particularly if financial market conditions deteriorate or if government funding priorities change. As we transition to

commercial operations, our credit risk profile will evolve to include exposure to utility customers under our PPAs.

***Supply chain risk***

Our development and construction activities depend on procuring equipment, services, and materials from a

number of suppliers, and supply chain disruptions could impact our access to critical components, including but not

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limited to, drilling rigs, well casing materials, pumps, monitoring equipment, turbines, and electrical components

necessary for our operations. While we seek to maintain relationships with multiple suppliers and plan for

contingencies where possible, prolonged supply chain disruptions or loss of key suppliers could materially impact

our development timelines and project economics.

**Change in Tax Law**

On July 4, 2025, the President of the United States signed the budget reconciliation bill, OBBB, which amends,

repeals, or phases out a number of energy tax credits initially introduced by the Inflation Reduction Act of 2022 (the

"IRA"). The IRA amended and enhanced multiple tax incentives focusing on climate change mitigation, clean

energy, electric vehicles, and battery and energy storage manufacturing or purchasing. Most notably, the IRA

introduced PTC and ITC. The OBBB modifies the qualifications of both PTCs and ITCs by limiting credit

availability based on start-of-construction date, completion date, and whether the facility is owned by a specified

foreign entity or includes any material assistance from a prohibited foreign entity. Under both the IRA and OBBB,

we believe our projects have met the qualification requirements for tax credits.

We also have the option to fully depreciate a portion of the cost of a new geothermal power plant in the year

placed in service, as permitted under OBBB. When claiming ITCs, our tax basis eligible for depreciation is reduced

by half of the ITC amount. If we claim the PTC instead, there is no reduction in the tax basis for depreciation. We

will continue to assess the provisions under the OBBB and IRA to determine if an election suits our business needs.

The incentives provided by the OBBB and IRA could significantly impact our future consolidated financial

statements as we become operational. Future steps to revise, repeal, or otherwise change existing rules and

regulations, including various tax incentives, leaves us uncertain about the potential impact at this time.

**Critical Accounting Estimates and Assumptions**

The preparation of financial statements in conformity with GAAP requires us to apply accounting policies and

make estimates and assumptions that affect the results of operations and the amounts of assets and liabilities

reported in the consolidated financial statements. We believe that the accounting policies described below require

significant judgment in their application or incorporate estimates and assumptions that are inherently uncertain and

that may change in subsequent periods. Additional information on the application of these accounting policies can

be found in the notes to consolidated financial statements.

***Leases***

Our geothermal operations depend on securing and maintaining leases for geothermal resources on federal,

state, and private lands. Under ASC 842, we recognize right-of-use ("ROU") assets and corresponding lease

liabilities for these leases. Applying ASC 842 requires significant management judgment, particularly in

determining lease terms and discount rates. Our geothermal leases typically have fixed primary terms with

extensions contingent upon achieving commercial production. We assess the lease term by considering both the

initial term as well as renewal and termination options we are reasonably certain to exercise, based on factors

including economic viability, expected production levels, and long-term operational plans. Since no active market

exists for government-owned subsurface rights, making fair value impractical to determine, we use our incremental

borrowing rate ("IBR") to calculate the present value of lease payments.

We regularly assess our ROU assets for impairment whenever events or circumstances indicate the carrying

amount may not be recoverable, considering factors such as changes in future estimated undiscounted cash flows,

lease term adjustments, and discount rate changes. The complexity of determining appropriate discount rates and

lease terms for government-owned subsurface rights underscores the significance of management's judgment in

applying ASC 842. While we believe our estimates and assumptions are reasonable, actual results may differ

materially. Changes in our assessment of lease terms, fluctuations in market interest rates affecting our IBR, or

impairment charges could materially impact our financial condition and results of operations. For example,

assuming our outstanding lease liability balance remained constant, a hypothetical 1.0% change in our IBR would

have resulted in a $0.8 million non-cash change in our lease liability for the year ended December 31, 2025.

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***Impairment of Long-lived Assets***

We assess the recoverability of our long-lived assets whenever events or changes in circumstances indicate that

the carrying value of an asset may not be recoverable. Impairment indicators include adverse changes in power

market fundamentals or regulatory environment, determination that a geothermal resource will not support

commercial operations, significant cost overruns threatening economic viability, loss of PPAs, unresolvable

technical challenges, or changes affecting renewable energy incentives. Our impairment analyses require significant

judgment, including identification of the grouping of long-lived assets for impairment testing, estimates of future

cash flows arising from these groups of assets and estimates of the remaining useful lives of the long-lived assets

being evaluated.

When an indicator of impairment is identified, we compare the carrying value of the asset group to its estimated

undiscounted future cash flows, including all expenditures necessary to complete development projects. If the

undiscounted cash flows indicate the carrying amount is not recoverable, we measure impairment as the difference

between carrying amount and fair value, with any impairment loss recorded in the statements of operations. Our

impairment assessments require significant judgment, particularly for development-stage projects not yet generating

revenue. Key estimates include future production capacity based on geological assessments, revenue projections

under PPAs and beyond contracted periods, operating costs, project life, and availability of tax incentives. These

estimates are subject to uncertainty and could be materially affected by changes in technology costs, regulatory

requirements, power market dynamics, or geological conditions. For the years ended December 31, 2025 and 2024,

we concluded that no impairment indicators were present and recorded no impairment losses.

***Stock-Based Compensation***

In accordance with our 2019 Stock Incentive Plan, we are authorized to grant awards in the form of both

incentive and non-qualified stock options, restricted stock, stock appreciation rights and other stock-based awards.

We measure compensation expense for stock options in accordance with ASC 718, Compensation-Stock

Compensation, and account for forfeitures as they occur. The determination of the fair value of stock options and

other equity-based awards requires management to make critical estimates and assumptions, which affect the

reported amounts of stock-based compensation expense in our consolidated financial statements.

The fair value of stock options is determined using valuation models, such as Black-Scholes option-pricing

model, which requires inputs that are subjective and may significantly impact the resulting valuation. These inputs,

including the fair value of the underlying stock price per share, are based on management's judgment and historical

experience, as well as publicly available information for comparable companies. Changes in these inputs could

materially affect the estimated fair value of our stock options, and consequently, the amount of stock-based

compensation expense recognized in our consolidated financial statements. A hypothetical 10.0% change in our

stock-based compensation expense for the year ended December 31, 2025 would have affected our consolidated net

loss by $0.3 million.

Based on the assumed initial public offering price per share of $, which is the midpoint of the estimated

offering price range set forth on the cover page of this prospectus, the aggregate intrinsic value of our outstanding

stock options as of December 31, 2025 was $, with $ related to vested stock options.

***New Accounting Pronouncements and Disclosure Requirements***

See Note 2 – Significant Accounting Policies of our notes to consolidated financial statements for information

regarding new accounting pronouncements.

***Emerging Growth Company Status and Smaller Reporting Company Status***

We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the

"JOBS Act"), and, for so long as we continue to be an emerging growth company, we may take advantage of certain

exemptions from various reporting requirements that would have been applicable were we a public company that

was not an emerging growth company. Such exemptions include, but are not limited to, the exemption to comply

with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations

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regarding executive compensation in our periodic reports and proxy statements, the exemption from holding a non-

binding advisory vote on executive compensation, and the exemption from stockholder approval of any golden

parachute payments not previously approved. In addition, pursuant to Section 107 of the JOBS Act, as an emerging

growth company, we have elected to take advantage of the extended transition period for complying with new or

revised accounting standards until those standards would otherwise apply to private companies, while also

maintaining the ability to early adopt certain accounting pronouncements. We intend to take advantage of other

applicable exemptions for as long as we remain an emerging growth company. If we cease to be an emerging growth

company, we will no longer be able to take advantage of these exemptions or the extended transition period for

complying with new or revised accounting standards.

We are also a "smaller reporting company," meaning that the market value of our shares held by non-affiliates

plus the proposed aggregate amount of gross proceeds to us as a result of this offering is less than $700 million and

our annual revenue was less than $100 million during the most recently completed fiscal year. We may continue to

be a smaller reporting company after this offering if either (i) the market value of our shares held by non-affiliates is

less than $250 million or (ii) our annual revenue was less than $100 million during the most recently completed

fiscal year and the market value of our shares held by non-affiliates is less than $700 million. If we are a smaller

reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions

from certain disclosure requirements that are available to smaller reporting companies. Specifically, 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 on Form 10-K and, similar to emerging growth companies, smaller reporting companies have

reduced disclosure obligations regarding executive compensation.

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**BUSINESS**

*This summary highlights selected information that is presented in greater detail elsewhere in this prospectus.* 

*This summary does not contain all of the information you should consider before investing in our Class A common* 

*stock. You should read this entire prospectus carefully, including the sections titled "Risk Factors," "Special Note* 

*Regarding Forward-Looking Statements," and "Management's Discussion and Analysis of Financial Condition and* 

*Results of Operations," and our consolidated financial statements and related notes included elsewhere in this* 

*prospectus, before making an investment decision. Unless the context otherwise requires, the terms "Fervo," the* 

*"Company," "we," "us," and "our" in this prospectus refer to Fervo Energy Company and its consolidated* 

*subsidiaries.*

**Our Mission**

To transform geothermal energy into America's most dependable and affordable source of clean, 24/7 power.

**Fervo Energy** 

The U.S. is in critical need of firm, reliable power. Rapid growth in data centers, the resurgence of domestic

manufacturing, and accelerating electrification are driving electricity demand that outpaces new planned generation.

By 2035, the country is expected to face a 98-gigawatt accredited capacity shortfall, highlighting an urgent need for

new, scalable sources of 24/7 power.

As the pioneer of EGS, we are commercializing a new category of firm power that is scalable, rapidly

deployable, readily available, and geographically flexible. By applying proven technologies like horizontal drilling

and multi-stage hydraulic fracturing, we are transforming geothermal energy from a niche resource into a utility-

scale power solution that is clean, reliable, cost-competitive, and suited to the needs of hyperscalers and utilities

alike.

Geothermal is a highly attractive energy resource – it is clean, firm, and reliable. But traditional geothermal

projects depend on rare geologic conditions like volcanic systems with highly conductive natural fracture networks,

which has constrained development to places like Iceland, Kenya, California, and Hawaii. Additionally, traditional

geothermal projects have carried significant development risk because wells either succeed or fail entirely with

natural fracture networks. This uncertainty has made these projects unpredictable, expensive, and hard to scale.

Our EGS technology addresses the scalability limitations and key development risks of traditional geothermal

energy. By designing and controlling subsurface flow pathways, we can predictably recover heat without relying on

naturally occurring permeability. Additionally, we deploy innovative subsurface monitoring technologies such as

AI-enhanced fiber optic sensing that enable us to monitor and predict geothermal heat transfer at high spatial and

temporal resolution. We believe these capabilities will enable us to standardize project development, optimize power

facility placement and design, and capture economies of scale previously unavailable to the geothermal industry. We

expect this innovative approach to position us to deliver predictable, cost-effective, and scalable geothermal power

that follows learning curve cost declines, thereby providing the dependable energy needed to help close the nation's

capacity shortfall.

Our EGS technology has been delivering clean electrons to the grid and generating revenue since 2023 at our

commercial pilot called Project Red, differentiating us from certain other energy alternatives still grappling with

technology risk, long development timelines, permitting uncertainty and supply chain constraints. Expanding upon

this success, we are now building Cape Station, a 500-megawatt greenfield project, where we expect to deliver first

power by late 2026. Our proven technical approach and track record of execution has generated meaningful

commercial traction. Across our full portfolio, we have signed 658 megawatts of binding PPAs with investment-

grade utility and corporate energy buyers including Southern California Edison and Shell. Beyond our current

contracted backlog, we have also entered into a 3-gigawatt framework agreement with Google (the "Geothermal

Framework Agreement" or "GFA") to advance and structure potential power offtake opportunities for current and

planned data centers in both grid-connected and alternative energy solutions. We believe this agreement provides a

repeatable commercial model to accelerate our deployment, capitalize on expanding demand from hyperscale

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customers, and enable Fervo to play an increasingly critical role in meeting the nation's growing demand for clean,

reliable power.

**Our Project Pipeline** 

We are a geothermal energy developer that builds, owns, and operates geothermal power facilities. We construct

projects in phases across leased acreage positions that can support multi-gigawatt GeoClusters. Our leasing strategy

is focused on securing high-quality, geothermal resources in prime locations, the vast majority of which have

existing deep wells that confirm significantly elevated temperatures at shallow depths and near-term commercial

viability. We pair detailed geologic analysis with commercial assessments, such as transmission access, market

conditions, and permitting, so that each opportunity meets our development standards.

In June 2023, we broke ground on our first GeoCluster – Cape Station – located in Milford, Utah, which we

expect will become the world's largest EGS project in terms of total installed capacity. At Cape Station, we have

500 megawatts under construction and expect to deliver first power in late 2026, reaching approximately 100

megawatts of operating capacity by early 2027. These 500 megawatts represent only the first two phases of the Cape

Station GeoCluster. We also have a permit in place to develop an incremental 1.5 gigawatts at the site, and based

upon a combination of internal estimates and findings from an independent engineer assessment, estimate that we

have a total of approximately 4.3 gigawatts of capacity potential at Cape Station.

Cape Station is expected to be the first in a large portfolio of high-capacity factor, carbon-free, baseload power

GeoClusters, supporting the company's runway for significant, near-term organic growth across our 595,900 acre

land position as of December 31, 2025.

We classify our portfolio into three distinct categories: Mature, Pipeline, and Prospects.

![business1aa.jpg](business1aa.jpg)

As of December 31, 2025, our Mature, Pipeline, and Prospects portfolio consisted of the following:

***Mature***

• Operating: 3 megawatts are currently online and generating power from our pilot project, Project Red.

• Under Construction: 500 megawatts are currently in construction at Cape Station, with commercial

contracts in place and physical work underway.

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• Ready to Build: 550 megawatts across two different GeoClusters were shovel-ready with initial permits

secured to begin construction. These megawatts are backed by calibrated subsurface models, validated

against well data and geophysical surveys, and have a clear wellfield development strategy in place.

Commercially, we have secured or are in advanced negotiation for offtake and have either obtained

interconnection or established a clear, achievable path.

***Pipeline***

• Advanced Development: 2.6 gigawatts were in advanced development. These projects have a go-to-market

strategy established, with key development milestones progressing and active origination efforts underway.

Typical activities include preliminary permit filings, on-site geological studies work, and submission of

interconnection applications.

• Early Development: Over 38 gigawatts were in early-stage development across ten GeoClusters where we

have commissioned and received independent HIIP studies and are conducting feasibility activities to

validate and confirm the path toward commercial development.

***Prospects***

• Land Holdings: Our remaining portfolio consists of approximately 256,000 acres of leased acreage as of

December 31, 2025, with differentiated geothermal resource quality currently maintained in our portfolio.

For this category, we have secured leases and identified project areas, but have not commenced initial

development work.

These three categories (Mature, Pipeline and Prospects) represent the expected progression of our megawatts

from those in early development stages to revenue-generating operations.

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As of December 31, 2025, our generation portfolio was comprised of the following:

![business2aa.jpg](business2aa.jpg)

__________________

Note: Capacity Potential estimates are based on "Best Estimate" HIIP estimates presented in reports prepared by D&M using assumptions

regarding notional EGS development plans, ORC turbine efficiency, parasitic loads, and other assumed recovery factors, and are subject to

change with additional data.

**Our Project Economics**

Our business model combines technological innovation with disciplined project development and seeks to

deliver predictable returns and strong cash generation. In addition to advancing the technical boundaries of

geothermal energy, we are implementing a development approach that leverages repeatability, enhanced production

performance, and economies of scale. We believe relentless focus on these three areas will enable us to

systematically improve the economics of geothermal power generation and increase the value of each megawatt

produced across our portfolio.

• ***Repeatability*** – Freed from the constraints of conventional geothermal systems, our approach emphasizes

standardization and repetition in order to capture and integrate geological, technical, and experiential

learnings to meaningfully reduce costs. Since 2022, the company has demonstrated a steep drilling learning

curve, reducing drilling times by approximately 75% from 2022 to 2025 and lowering per-foot drilling

costs by approximately 70% over the same period. We employ advanced data analytics and proprietary AI-

based modeling to better predict operational conditions and accelerate design optimization, drawing on

more than 500 terabytes of high-fidelity operational data collected to date. To extend these efficiencies

from the wellfield to the surface facilities, we plan to deploy standardized 50-megawatt ORC power plants

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that we call GeoBlocks— which aggregated together form GeoClusters— that we expect will yield power

projects that are modular and reliable. By modularizing capacity into standardized 50-megawatt GeoBlocks

and scaling them in GeoClusters, we believe we can create a repeatable, bolt-on development model that

compounds learning across projects, shortens delivery timelines, and enables predictable, utility-scale

expansion. The chart below illustrates the impact of learning curves on our business over time,

demonstrating the decrease in cost per foot and days spent drilling to total depth per well across our Project

Red and initial Cape Station subsurface construction.

![fe1020_drillingratexv3a.jpg](fe1020_drillingratexv3a.jpg)

Source: Fervo Data

For our two Project Red wells, total vertical depths were approximately 7,500 feet and total measured

depths were approximately 11,000 feet, with a horizontal section of approximately 3,000 feet. For our Cape

Station Phase I subsurface construction, we increased the total vertical depths to approximately 9,000 feet

and total measured depths to approximately 14,000 feet, with a horizontal section of approximately 5,000

feet. We plan to drill approximately 8–10 wells per standardized GeoBlock. Planned well depths will vary

and will be refined based on site-specific geology and geography, including subsurface thermal gradient,

stress conditions, and structural or tectonic setting pertinent to EGS, to intersect target heat-bearing

formations at the depths required for effective reservoir creation.

• ***Enhanced Production Performance*** – We seek to continue to increase output and efficiency through

improvements in well design, reservoir engineering, and surface facility optimization. We have already

deployed progressively longer lateral wells and have targeted progressively higher temperature formations

to enhance heat recovery from each well and improve power conversion efficiency. For example, our

Project Red wells have maximum lateral lengths of approximately 3,000 feet and target formation

temperatures of approximately 350°F, whereas the Cape Station Phase I wells have maximum lateral

lengths of approximately 5,000 feet and target higher formation temperatures of approximately 400°F.

These design choices reflect our progression toward longer laterals and hotter reservoirs in successive

phases, with Cape Station Phase I representing a step-change relative to Project Red. Proprietary

stimulation techniques and real-time monitoring allow us to optimize flow distribution and thermal

recovery. We continuously refine our approaches to drilling, completions, and facility configuration to

deliver incremental performance gains with each successive phase of each project.

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• ***Economies of Scale*** – Our GeoCluster-focused approach supports the development of shared infrastructure

and streamlined supply chains. By replicating uniform GeoBlocks across multiple sites, the company

achieves procurement leverage, lowering capital intensity and increasing the predictability of long-lead

time equipment supply. We expect multi-gigawatt GeoClusters will allow us to capture scale efficiencies

across engineering, construction, manufacturing, workforce, and operations, further enhancing project

returns and improving overall company economics.

Together, we believe these capabilities create a compounding advantage across our portfolio. We expect that

repeatability, enhanced production performance, and economies of scale will contribute to lower capital intensity

and higher margins on a per-megawatt basis and enhance project-level cash generation. As additional GeoBlocks are

deployed across GeoClusters, we expect continued reductions in cost per megawatt and improvements in return on

invested capital, reinforcing the company's ability to deliver sustained value.

![fe1025_fervoxgeoclusterxv2a.jpg](fe1025_fervoxgeoclusterxv2a.jpg)

Source: Midpoint for geothermal capacity factor, Rystad Energy.

**Our Opportunity**

Driven by surging load from AI and data centers and accelerating electrification across transportation,

buildings, and industry, the U.S. power market is approaching a decisive inflection point as electricity demand

outpaces new planned generation. At the same time, Rystad notes that roughly 66 gigawatts of aging accredited

capacity are expected to retire by 2035, which is projected to lead to a nationwide accredited capacity shortfall of

approximately 98 gigawatts by 2035. Underlying this accredited capacity shortfall is the disproportionate retirement

of baseload power sources, namely coal, which comprises 80% of net power retirement through 2035. To close the

projected capacity shortfall, the market will require substantial incremental firm generation.

A firm energy resource, like geothermal, natural gas, nuclear or coal, can reliably deliver electricity at consistent

levels for long durations and typically has a capacity factor above 75%. Because of its reliable nature, firm power is

critical for the inflexible demand profiles of data centers, as well as industrial and commercial consumers. However,

market participants expect the projected shortfall in firm power generation to be increasingly plugged by intermittent

renewables (wind, solar, often paired with batteries to extend availability); Rystad predicts that renewables could

comprise 32% of all U.S. power generation by 2035. Meanwhile, rising peak demand, in conjunction with planned

firm power retirements, is driving down reserve margins across the U.S., making additional firm capacity critical.

This mismatch in supply and demand has manifested itself in progressively higher PPA prices for firm energy

resources. Rystad reports that clean, firm energy sources, like EGS, can command pricing in the range of $100-130

per megawatt-hour. According to third-party sources and internal estimates, the unit economics for an illustrative

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EGS project reflect differentiated project cashflows and returns as compared to renewables, gas and nuclear. Based

on an assumed firm-power pricing of approximately $115 per megawatt hour, a capacity factor of roughly 83%,

operations and maintenance costs of $160 dollars per kilowatt-year with no fuel expense, and a $30 per megawatt

hour of geothermal tax credit, illustrative earnings before interest, taxes, depreciation and amortization per megawatt

for EGS for a one-year period are approximately $650,000 to $700,000 without tax credits and $850,000 to

$950,000 with the inclusion of tax credits. Pursuant to recently enacted amendments to Internal Revenue Code

Sections 45Y and 48E under the "One Big Beautiful Bill Act," projects that begin construction by the end of 2033

will receive the full tax credit; those beginning in 2034-2035 get a reduced credit of 75% and 50%, respectively; and

projects that begin construction in 2036 or later lose the tax credits entirely. Further, actual earnings before interest,

taxes, depreciation and amortization per megawatt for EGS projects will differ depending on project and market

specific factors, such as resource quality, development and operating costs actual capacity factor, power prices and

offtake terms, and may cause results to vary materially from such estimates. See "Risk Factors — Risks Related to

Our Business — Illustrative estimates of earnings before interest, taxes, depreciation and amortization and

illustrative estimates of capital required per megawatt for EGS projects included herein are not forecasts, targets or

guidance, and actual results could vary materially."

Key factors that could impact this illustrative EBITDA include realized PPA prices, drilling and stimulation

outcomes, actual operational and maintenance costs, realized capacity factor relative to the assumed 83%, and

availability and monetization of tax credits.

Based on internal estimates for projects currently under construction, our enhanced geothermal power plants are

expected to have total installed costs of approximately $5-7 million per megawatt and have a useful life of at least 30

years. Key factors that could impact these estimated costs include the number of wells required for subsurface

development, turbine and major equipment procurement, production facility design specifications, and grid

interconnection-related expenses.

According to Rystad, if EGS were to meet the emerging accredited capacity gap in the U.S. alone, the annual

addressable market would be approximately $70.0 billion by 2035. Assuming a 30-year asset life, this represents a

$2.1 trillion revenue potential opportunity.

We believe we are well positioned to meet this moment. Our EGS technology is proven and scalable. Our

modular engineering approach supports rapid deployment. Our commercial pipeline is advanced, our wellfield

supply chain and labor force are mature, and our intellectual property is broad, while our acreage holdings contain

approximately 595,900 acres of geothermal leases that provide significant room for expansion. These advantages

position us to become one of the largest providers of scalable, carbon-free baseload power over the next decade.

The following factors highlight the structural demand-supply imbalance in U.S. power markets and underscore

why we believe that scalable, firm, carbon-free solutions like EGS are positioned to capture outsized value in the

decade ahead.

• ***All-Time High Power Demand*** – After two decades of relatively stable load growth between 2000 and

2020, energy demand is rising steeply and rapidly driven by the artificial intelligence ("AI") boom,

renewed onshoring of manufacturing and economy-wide electrification.

• ***AI Data Center Projects***. According to Rystad, AI data centers are projected to require 552 TWh of energy

over the next decade. The top four hyperscalers building these data centers—Amazon, Google, Microsoft

and Meta— have each characterized energy as a critical input to winning the AI race. Together, these four

companies have executed over 133 gigawatts of energy supply agreements as of Q1 2026. Rystad notes that

the explosive growth of AI and data centers is placing unprecedented strain on U.S. power infrastructure,

with some hyperscale projects expected to draw over 2 gigawatts of power – the equivalent of a medium-

sized city – by themselves. Only 15% of data centers will be under 50 megawatts by 2035, including

existing and announced projects.

• ***Onshoring of Manufacturing***. Political and economic factors are driving the increases in industrial

operations returning to the U.S., driving increased power demand in the industrial sector. New

manufacturing facilities in sectors like semiconductors, plastics, and metals are creating substantial new

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power loads, with some plants contributing several hundred GWh annually. This reshoring trend is

concentrated in regions such as the Southeast, Midwest, and Western states, where nearly 149 new

manufacturing projects have been announced over the last five years. Additionally, in response to shifting

and uncertain tariffs, large companies across heavy industry have pledged to relocate manufacturing

facilities to the U.S. in the future, further accelerating this trend. Rystad predicts that achieving U.S.-based

manufacturing goals could require 170 TWh of new capacity by 2035.

• ***Economy-Wide Electrification***. According to Rystad, economy-wide electrification continues to drive

utility power procurement, requiring a projected incremental capacity of 307 TWh. U.S. electricity demand

is expected to grow about 24% by 2035 from 2025 levels, driven largely by data center growth, industrial

reshoring and increased electrification. This surge in demand requires extensive new investments in power

generation to ensure grid reliability and capacity. These trends contribute to a much steeper energy demand

curve than previously experienced. As demand outpaces supply, power prices are projected to continue to

increase in the near future.

![fe1021_unprecendentedloadga.jpg](fe1021_unprecendentedloadga.jpg)

Source: Rystad Energy.

• ***Deficient Supply Alternatives***. The U.S. energy system is facing a severe supply constraint caused by

insufficient new capacity additions and aging infrastructure. Existing power supply alternatives face various

limitations in this time of great need. VREs like solar and wind have expanded rapidly but can only meet

certain hours of demand, even when coupled with battery storage. Firm energy resources like natural gas

face supply chain bottlenecks and volatile fuel pricing. Nuclear power remains a critical firm energy

resource, but new large-scale projects are battling high costs and long development timelines.

• ***VRE Shortfalls***. Though solar and wind energy supply are projected to grow in the face of political

headwinds, neither resource adequately addresses the need for reliable, baseload energy. Even when paired

with battery energy storage systems, these systems do not achieve baseload reliability.

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The charts below demonstrate the lack of baseload power expected to be added to the U.S. energy system, and

the particular impact on the Western U.S., our current area of operations.

![fe1022_limitedbaseloadxlara.jpg](fe1022_limitedbaseloadxlara.jpg)

Source: Rystad Energy.

Additionally, Rystad predicts that the phaseout of federal tax credits is expected to weaken wind and solar

project economics, further reducing new supply and affordability. Post-enactment of the OBBB, the market projects

a 28% cut to U.S. solar and a 52% cut to U.S. wind installations through 2030.

• ***Natural Gas Bottlenecks***. Although natural gas is currently the incumbent source of baseload generation in

the U.S., its future buildout faces key constraints, including limited turbine manufacturing capacity and

competing demand for fuel. Today, Rystad reports that the top 3 gas turbine manufacturers are unable to

procure new turbines before 2030, with lead times exceeding 5+ years for new orders. Additionally, the

price volatility of the natural gas commodity markets remains a key risk, hindering long-term fixed-price

supply agreements. The U.S. Energy Information Administration notes that the surge of LNG export

projects reaching final investment decision this year – representing approximately 13 billion cubic feet of

export capacity in 2031 – is expected to further tighten domestic supply and push natural gas prices higher.

• ***Nuclear Delays and Technological Uncertainties***. SMRs are a promising but still largely unproven

technology. They offer potential advantages in safety, modularity, and scalability, yet significant hurdles

remain before SMR-generated power can be cost-competitive in the U.S. market. Achieving affordable and

reliable deployment will require material gains in manufacturing scale, streamlined regulatory processes,

and improved construction efficiency. Conventional nuclear energy development has also stalled: no true

greenfield projects have reached completion in the 21st century, as plants are capital-intensive and typically

require up to a decade before beginning commercial operations. Plant Vogtle in Burke County, Georgia

faced significant delays and capital expenditure overruns, and is the only new U.S. project with

construction started in recent decades with a construction time of 11 years, underscoring the challenges of

nuclear energy development. SMRs could change this trajectory by enabling more standardized builds and

potentially competitive costs, but the technology is still in early commercialization and faces technological

headwinds, with first deployments expected in the early 2030s at the earliest. Safety concerns and supply

chain constraints, including a tightening uranium market, further complicate the outlook for rapid nuclear

expansion.

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**Our Innovative Solution** 

We have successfully applied proven technological innovations from the American oil and gas industry to

kickstart what we expect to be another great American industry: next-generation geothermal. Across every layer of

our technology stack, we endeavor to target and systematically eliminate key constraints to traditional geothermal

development to make geothermal energy the most dependable and affordable source of power in America.

Conventional geothermal developers cede control of their projects to the whims of subsurface geology, relying

on natural fracture networks in hot rock to access heat for power generation. This approach restricts development to

a select few locations with adequate subsurface conditions, introduces binary dry hole risk given the unpredictability

of natural fractures, and imposes a fixed upper bound on reservoir-wide power output. Constrained by the resource

size available in natural fractures, conventional geothermal developers have historically been unable to drill new

wells to make up additional capacity if projects underperform, adding additional tail risk after the project is built.

Rather than accept the variability of drilling vertical wells into a natural fracture network, we use proven

technology from the oil and gas industry to build a tightly controlled system for heat extraction in low-permeability

geothermal formations. We engineer these reservoirs by drilling sets of parallel horizontal injection and production

wells through hot rock, accessing a zone of the geothermal reservoir with a highly predictable volume of heat in

place. We then use multistage hydraulic fracturing to connect the wells, establishing pathways and sufficient surface

area in the rock through which water can flow, heat up, and return to the surface for power generation. We also

install AI-enhanced fiber optic sensing cables to measure reservoir conditions in real-time. This data is then used to

continuously monitor flow rates, pressures, and temperatures across the wellfield, allowing us to predict and

optimize future well output. Our proprietary, data-assimilative models integrate continuous temperature and pressure

profiles to update reservoir state in real time, enabling more accurate production forecasts and proactive decisions to

sustain deliverability and recoverable heat. Our approach allows us to actively manage long-term reservoir

performance; if production falls off in any part of the field, we are able to drill infill wells or simply drill new wells

to mine additional heat and extend overall reservoir lifetime.

![fe1005_fervoxegstecha.jpg](fe1005_fervoxegstecha.jpg)

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Instead of creating separate one-off vertical wells (each with a separate well pad) across a field, we can access

vast quantities of subsurface heat by drilling many horizontal wells from a single pad with a compact footprint,

dramatically reducing land disturbance. This approach replicates the successful wellfield design used in the shale oil

and gas revolution. However, unlike in shale, where operators typically target specific and sometimes narrow

payzones, we can access progressively hotter rock the deeper we drill. Our reservoir is only bounded by temperature,

with the minimum temperature established by power plant efficiency and the maximum temperature established by

the temperature limits of subsurface equipment. At present, we apply a minimum reservoir temperature of

approximately 300°F and a maximum reservoir temperature of approximately 625°F, and we utilize a cutoff vertical

depth of about 13,000 feet to define resources we consider technically and commercially viable. These parameters

may evolve over time with improvements in drilling and subsurface technology or changes in market conditions (for

example, higher PPA pricing can support lower temperatures or deeper drilling). As a result, our payzones already

extend thousands of feet in thickness, and we expect these will continue to grow over time as better drilling

technology is developed.

**Our Wellfield Production** 

Data observed from our projects to date has validated our approach. In 2023, we brought our pilot, Project Red,

online. The project quickly demonstrated record 24/7 carbon-free power production, generating three megawatts of

gross power production to the Nevada grid and proving the commercial viability of our innovative drilling

technology. Additionally, at our Project Red commercial pilot, we have observed consistent, stable temperature

output in line with our modeling and expectations. To date, Project Red has not experienced the kind of premature

thermal decline that has long plagued traditional geothermal projects.

We apply advanced data analytics, computational modeling, and data-driven empirical modeling to generate

high-fidelity production forecasts to optimize the economics of our projects. After pioneering the installation of

permanent AI-enhanced fiber optics in geothermal wells, we have collected over 500 terabytes of downhole data that

have been analyzed and used to improve well spacing, completion design, and wellfield optimization. With every

well drilled, casing string installed, and flow test completed, we deepen our knowledge of EGS reservoirs and

extend our first-mover advantage.

**Our Scalable Deployment** 

Our approach is designed specifically with scale in mind. With geothermal heat recovery substantially de-

risked, we can leverage a modular, standardized approach to on-surface power generation to drive cost reductions,

increase deployment speed, and leverage economies of scale and flexibility in our supply chain. We plan to deploy

standardized 50-megawatt ORC power facilities that we call GeoBlocks. Production wells send hot geothermal brine

to a heat exchanger, where it transfers heat to a working fluid. After transferring heat, the cooled geothermal brine is

reinjected underground to cycle through the geothermal reservoir again. In the heat exchanger, the working fluid is

vaporized, ultimately spinning a turbine to create electricity. The vapor is then cooled back into a liquid using air-

cooled condensers to minimize water usage.

We have already secured binding contracts for 500 megawatts of ORC turbine capacity through partnerships

with Baker Hughes and Turboden (a wholly-owned subsidiary of Mitsubishi) for our projects under construction,

and have further expanded this supply through a 1.7 gigawatt ORC turbine framework agreement with Turboden.

These manufacturers have longstanding ORC business units that stand apart from natural gas turbines, helping

support near-term ORC supply even as gas turbines remain backlogged.

GeoBlocks are engineered for rapid scalability. When aggregated, multiple GeoBlocks make up a GeoCluster,

which we define as a multi-gigawatt geothermal power hub designed to provide substantial generation while

streamlining construction and operations. With approximately 595,900 acres of geothermal leases across the United

States as of December 31, 2025, we are primed to implement several GeoCluster power hubs in the next decade with

the potential to support more than one power market. A majority of our leases have a 10-year initial term, and in

most cases, extension options.

To date, all of our commercial contracts feed electrons to the power grid. But by deploying multi-gigawatt

GeoClusters, we can mitigate transmission risk associated with our projects. First, the size and capacity factor of our

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projects are catalyzing partnerships with transmission developers who seek project certainty and high line

utilization. We are also pursuing behind-the-meter partnerships with hyperscalers who seek large generation and

high uptime. We believe that our GeoCluster approach for AI data center development pairs a repeatable, flexible

commercial framework with a modular, scalable power solution aligned with hyperscale customer demand and

supports definitive offtake agreements over time. Ultimately, we can blend behind-the-meter and transmission

solutions, maximizing resilience and redundancy at a single site.

**Our Customers**

Our customers have the following profile:

• ***Customers who want reliability***. Utilities cannot replace baseload coal and nuclear plants with solely

intermittent resources such as wind and solar power. To ensure a safe, functional and reliable grid capable

of addressing demand peaks, utilities must procure a new generation of baseload options. Likewise,

hyperscalers demand reliability to maximize uptime for their AI models.

• ***Customers who seek a near-term solution***. Power buyers place a premium on near-term deliverability. In

the race for AI dominance, hyperscalers continue to construct additional data center capacity to avoid

falling behind their foreign and domestic competitors. This arms race mentality has pushed leading AI

companies to go to extreme lengths to obtain more power. For example, xAI has taken the extraordinary

step of purchasing a natural gas power plant overseas and shipping it to the U.S. to power a 2-gigawatt data

center. Utilities, too, recognize the time-sensitivity of bringing new supply online. According to Rystad,

many states across the western United States could face capacity shortfalls by 2031. To address this risk,

utility commissions are increasingly pushing load-serving entities to procure additional reliable power.

• ***Customers who demand cost-competitiveness***. Even as PPA prices continue to rise, buyers maintain price

ceilings above which baseload power procurement remains unattractive. Especially as popular attention on

electricity prices increases, utilities will have to guard against serious cost inflation to remain viable.

• ***Customers who seek carbon-free solutions***. Whether because of state-level renewable energy mandates or

voluntary emissions reduction commitments, a wide variety of buyers continue to prioritize carbon-free,

clean energy sources. For utilities in certain jurisdictions, political pressure has increased the urgency of

clean power procurement.

The EGS technology we pioneered is very well suited to meet our customers' power procurement needs:

• ***We offer reliability***. EGS projects provide high-capacity-factor baseload power, with no fuel price

exposure.

• ***We deliver power now***. Our EGS technology is one of the few 24/7 power solutions capable of bringing

incremental generation online before 2030. We expect to begin delivering first power from our 500-

megawatt Cape Station project by late 2026, and to reach approximately 100 megawatts of operating

capacity by early 2027.

• ***We offer an economic, non-volatile alternative***. At approximately $7,000/kW, our first Cape Station

project already outcompetes both traditional and small modular nuclear power in overnight capital costs.

Over time, our goal is to achieve scale and drive down prices such that we're able to outcompete gas by

achieving an Nth-of-a-kind project cost of $3,000/kW without fuel price exposure. Unlike conventional

power producers, our "fuel" is geothermal heat. The cost of accessing it is embedded upfront in our

subsurface capital expenditures and water systems, not in an ongoing commodity expense. By eliminating

exposure to commodity price swings, we intend to deliver predictable, contractable pricing that reduces

hedging costs and risk premiums, which we believe provides economic value that our customers will

recognize and be willing to pay to secure. Beyond delivering power, we also sell multiple products,

including energy, capacity and environmental attributes. This mix supports premium pricing and stronger

margins as markets increasingly value clean, 24/7 capacity and verified environmental attributes. This

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fundamental advantage distinguishes us from traditional power companies and underpins the long-term

stability of our cost structure.

• ***We offer carbon-free, renewable power***. According to the Department of Energy, EGS projects using

binary-cycle ORC power plants have a fraction of the emissions footprint as natural gas plants. The carbon-

free nature of our product makes EGS especially attractive in states with time-sensitive, ambitious

renewable portfolio standards and for corporate buyers who seek to maintain their climate goals.

These core attributes (reliability, deliverability, cost-competitiveness, and carbon-free) position our EGS

technology ahead of other power options, allowing us to capitalize on high, inelastic power demand.

![fe1023_installedcapexxv3a.jpg](fe1023_installedcapexxv3a.jpg)

Sources: Rystad Energy and management estimates.

**Our Competitive Strengths**

• ***First-Mover Advantage with Highly Advanced Development Portfolio***: We are the global pioneer of EGS

technology. We successfully drilled and stimulated the country's first commercial EGS wells at our pilot,

Project Red. With an operating pilot and two and a half years of 500 megawatts of greenfield construction

underway, including over 25 wells drilled, we maintain a significant first-mover lead in the EGS space.

These wells were drilled at our Cape Station project in Beaver County near Milford, Utah, and at Project

Red adjacent to the Blue Mountain geothermal field near Winnemucca in Humboldt County, Nevada. As of

December 31, 2025, our projects under construction accounted for approximately 13% of all geothermal

capacity under construction in the United States. By reducing subsurface risk in geothermal heat recovery,

we have increased the velocity with which megawatts can move through our development pipeline.

Additionally, with 595,900 leased acres as of December 31, 2025, we hold what we believe to be one of the

U.S.'s largest portfolios of high-quality geothermal leases. We assembled this position at a weighted

average of approximately $4 per acre during a period of minimal competition between 2019 and 2021, in

sharp contrast to current U.S. Bureau of Land Management lease sales in Utah and Nevada, where

maximum bids reached $344 and $410 per acre, respectively, in 2025. Many of those newly auctioned

parcels did not meet our standards for high-priority development and thus were outside our initial focus

areas, reflecting the quality of our acreage. According to Bloomberg, certain geothermal developers in Utah

and Nevada have paid hundreds of dollars per acre in 2025 for geothermal positions that failed to meet our

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development standards. We are thus uniquely positioned as a first mover to capitalize on surging demand

for clean, firm, reliable power.

• ***Proven Ability to Secure Binding, Long-Term Offtake***: We have executed 658 megawatts of binding PPAs

across each of our target customer verticals, including hyperscalers, major utilities (Southern California

Edison), community choice aggregators (Clean Power Alliance and Desert Community Energy) and

supermajor energy companies (Shell). These contracts were executed at attractive prices, representing

approximately $7.2 billion in potential revenue backlog. This commercial momentum is further bolstered

by a 3-gigawatt framework agreement with Google. Though not a binding, project-specific PPA, the

agreement provides a structured roadmap for future capacity expansion and establishes a repeatable model

for large-scale corporate offtake.

• ***Modular Design Enabling Speed to Power and Economies of Scale***: We intend to deploy our technology

in 50-megawatt GeoBlocks, standardized ORC power units that we anticipate will extend our learning

curves from wellfield development to geothermal power plant construction. We expect to further support

these learning curves by concentrating our operations in multi-gigawatt GeoClusters. Each cluster can

support hundreds of EGS wells and dozens of adjacent GeoBlocks, creating unprecedented economies of

scale in the geothermal industry. We believe that this approach will make our cost-competitive EGS

solution increasingly attractive to high credit-quality offtakers and will assist us in catering to AI

hyperscalers that require speed-to-power, gigawatt-scale energy access, and 24/7 availability.

• ***Demonstrated Access to Asset-Level Capital Enables Financial Flexibility***: As of December 31, 2025, we

had raised $320.6 million of project level capital, comprised of $175.0 million of project-level equity and

$145.6 million of project-level debt. Subsequently, on March 6, 2026, we closed an approximately $421.4

million project finance credit facility with a syndicate of nine lenders (the "Project Granite Facility") for the

first phase of our Cape Station development. Our relationships with leading capital providers give us the

flexibility to secure lower-cost, non-dilutive project-level financing, extending the runway of our corporate

funds while accelerating deployment and substantially de-risking our funding strategy through diversified

sources of capital.

• ***Robust Intellectual Property Portfolio***: We have a comprehensive intellectual property portfolio which

includes patents and trade secrets covering many material proprietary aspects of our EGS technology. Our

key patents and trade secrets deter competitors from employing critical but protected processes required to

create and manage the subsurface flow of geothermal brine.

• ***Resilient Development Approach Leveraging Secure Supply Chain***: We have proven capable of

seamlessly scaling our operations through partnerships with well-established oilfield services providers

such as Liberty Energy, Helmerich & Payne and Vallourec. We have also developed durable partnerships

with ORC turbine manufacturers from key U.S. partner nations, such as Turboden (a wholly-owned

subsidiary of Mitsubishi) and Baker Hughes, which remain relatively insulated from tariffs and

procurement backlogs that are currently impacting natural gas turbines, along with primarily U.S.

headquartered balance of plant equipment providers.

• ***Founder-Led Management Team***: Co-founders Tim Latimer and Dr. Jack Norbeck, along with our

executive leadership team, have over 125 years of energy experience across companies in upstream oil and

gas, oilfield services, and power and renewables, including Shell, BP, Chevron, BHP Billiton, NRG, Hess,

SLB, and NOV.

**Our Growth Opportunities**

Our principal growth strategies include:

• ***Progress GeoCluster Development:*** We have one gigawatt included in our Mature projects portfolio, with

500 megawatts categorized as Under Construction at our flagship GeoCluster Cape Station, with

commercial contracts in place and physical work underway. Additionally, we have 550 megawatts that we

categorize as Ready to Build across two different GeoClusters. These projects have already achieved key

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development milestones, which have substantially derisked commercialization. We also have over 40

gigawatts in our Pipeline project portfolio, with 2.6 gigawatts categorized as under Advanced Development

and over 38 gigawatts under Early Development across ten GeoClusters. There are significant remaining

opportunities for development in our Prospects portfolio that spans the 595,900 acres of leased acreage

currently maintained in our portfolio. We aim to pursue development on our robust pipeline at a more

accelerated pace beyond 2030. See "Prospectus Summary—Our Project Pipeline" for more information

related to our projects.

• ***Execute Technology Roadmap and Achieve Nth-of-a-Kind Cost Structure:*** We believe our attractive

asset-level returns will continue to improve, following well-established learning curves observed across the

energy industry. By drilling deeper wells to access higher-temperature reservoirs, extending lateral lengths,

and widening wellbore diameters, we expect to achieve progressively higher power output per well.

Additional cost efficiencies will come from standardizing power generation equipment, securing multi-year

supply agreements, and capturing economies of scale across construction scopes. We believe these efforts

will reduce our costs from the current approximately $7,000/kW, already among the lowest-cost sources of

baseload power, toward our long-term target of $3,000/kW.

• ***Establish Programmatic Offtake Partnerships:*** We are pursuing multi-year, multi-gigawatt offtake

partnerships with both utilities and hyperscalers to substantially de-risk commercial development across

multiple GeoClusters. We believe that these offtake partnerships with hyperscalers – such as the 3-

gigawatt GFA – will provide us with a path to potentially capitalize on predictable, long-term demand,

pricing visibility, and opportunities for co-located, behind-the-meter development that will boost our

positioning among AI data centers.

• ***Expand Geographic Scope of Development:*** Building on our learning curves and demonstrated progress at

Project Red and Cape Station, we are codifying a repeatable playbook to expand commercial geothermal

development beyond beachhead locations in the western United States and into other power markets where

high wholesale power prices, particularly for baseload generation, present attractive growth opportunities.

Over time, we intend to deploy our EGS technology outside of the United States, prioritizing jurisdictions

with clear decarbonization mandates, supportive regulatory frameworks, and subsurface conditions

favorable to EGS development. We intend to advance this expansion through strategic partnerships and

targeted pilot projects to validate performance, adapt to local market requirements, and establish a

repeatable model for international scaling.

• ***Pursue Complementary Verticals:*** We believe we are well positioned to leverage our proven approach to

enter adjacent markets, including energy storage, industrial process heat, and district heating. We are one of

the leaders in innovation for subsurface energy storage through our tested and patented approach,

FervoFlex. Our ability to monetize both power and heat, moreover, distinguishes us from other power

providers. By unlocking new customer segments, we believe we will be able to meet the evolving needs of

industrial, commercial, municipal, and operating company energy buyers.

***Properties***

Our geothermal operations rely on leasehold interests obtained from federal (primarily BLM), state, and private

lessors under the Geothermal Steam Act of 1970 and related regulations. As of December 31, 2025, we controlled

approximately 595,900 acres across several principal project areas in high potential geothermal regions located in

Nevada, California, Utah, Idaho, Colorado, and New Mexico. These leases consist of approximately 66% federal

(BLM) acreage, approximately 6% state acreage, and approximately 27% private acreage. The federal leases carry a

primary term of 10 years, with annual rentals and royalty terms set by regulation and extensions in five-year

increments as provided under applicable regulations. Such federal leases are held by production when commercial

production is established on the leasehold interests. The state leases generally carry terms that range from 10–50

years with production based extensions. The private leases commonly provide 5–10 year primary terms with

extension or renewal options, and continuation while operations or production are maintained.

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For federal BLM leases, annual rental rates are set by lease type under 43 CFR §3211. Federal leases also

require bonds for operations and reclamation and impose diligent exploration and development milestones and

requirements, including documentation and reporting of production, sales, and byproducts to the Office of Natural

Resources Revenue and BLM. We maintain bonding and compliance consistent with these requirements across the

federal portfolio. Our state leasehold position includes state leases with primary terms and production based

extensions established under state leasing regimes. State terms generally align with production based holdover and

bonding requirements consistent with geothermal development. Lastly, our private geothermal leases supplement

federal and state acreage and include negotiated economic terms tailored to project development. Private lease

royalty rates across our portfolio generally fall within the low single to low double digit percentage range, depending

on resource disposition and market. All lease types require appropriate bonding and compliance with environmental

and cultural resource stipulations.

Lease economics include upfront bonus bids at competitive sales (which vary by tract and market conditions

and have recently ranged from low single-digit to several hundred dollars per acre), annual rentals until production

that follow the applicable regulatory schedule ($1–$5/acre depending on year and type), and royalties of 1.75% of

gross proceeds for the first 10 years rising to 3.5% thereafter on electricity sales from Class II/III leases (or 10% for

arm's length resource sales under Class I). Private royalties generally fall in the low single-digit percentage to low

double-digit percentage of revenue. Total capitalized leasehold costs (as reported in our financial statements) as

of December 31, 2025 consist primarily of bonus bids, rentals, private lease consideration, and associated

acquisition and title costs and represent a key asset for scaling our next generation geothermal projects.

***Competitive Conditions and Environment***

The enhanced geothermal power generation industry is experiencing a transformative phase as global demand

for reliable energy solutions increases. Enhanced geothermal systems offer the potential to provide consistent,

carbon-free baseload power by harnessing the Earth's natural heat. This has attracted a mix of established energy

companies and innovative startups, creating a dynamic competitive environment. We also compete with several

companies with conventional geothermal energy production operations, and when we seek to obtain a new PPA, we

face competition from these companies and other renewable energy sources. When seeking to obtain new PPAs, we

also compete with wind, solar, hydro, and biomass on both headline energy price and total system cost, including

deliverability during peak demand and stressed grid conditions. The ability to offer firm, around-the-clock

renewable power, capacity value, and ancillary services can differentiate EGS offerings even where intermittent

resources bid lower prices.

*Advanced Geothermal Developers*

A number of companies are pursuing new forms of geothermal power generation. Companies such as AltaRock

Energy, GreenFire Energy, Eavor Technologies, Zanskar Geothermal and Minerals, and Mazama Energy are

advancing geothermal technologies. These developers are exploring various approaches, including closed-loop

systems, advanced drilling techniques, and supercritical geothermal fluids. Many have secured venture capital and

government support, and are actively engaged in pilot projects to demonstrate the viability of their technologies.

*Other Renewable Energy Sources*

EGS competes across multiple dimensions with wind, solar, biomass, and hydro. The core dynamic is price

versus "system value," but we also compete with renewable energy producers when we seek to obtain new PPAs or

acquire new leasehold interests. While headline pricing may appear higher on a dollar-per-megawatt-hour basis,

EGS delivers outsized "system value" through firm, dispatchable, and high-capacity-factor generation that reduces

integration costs, avoids the need for separate capacity and firming resources, and enhances grid reliability. By

providing ancillary services, long-duration availability, and locational benefits that mitigate congestion and

curtailment, EGS can lower total delivered cost to the system, making it economically competitive even where its

energy price alone is not the lowest.

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*Fervo Energy's Differentiation*

Fervo Energy stands out with its innovative application of advanced drilling techniques and real-time data

analytics, adapted from the oil and gas industry. By utilizing horizontal drilling and fiber-optic monitoring, Fervo

enhances the efficiency and scalability of geothermal projects, allowing for precise resource management and

reduced environmental impact. This approach enables the development of geothermal resources in a broader range

of geological settings, beyond traditional hydrothermal sites.

*Conventional Geothermal and Utilities*

Established geothermal companies like Berkshire Hathaway Energy, Calpine (The Geysers), and Ormat

Technologies continue to comprise the substantial majority of the current geothermal market with conventional

hydrothermal projects. These companies benefit from decades of operational experience and established customer

relationships. Their reliance on specific geological conditions limits their ability to expand rapidly into new areas.

However, should they or other better capitalized competitors expand their offerings into EGS technology, they may

be able to outcompete us for the leasing of geothermal properties or signing PPAs with high credit-quality offtakers

or development of EGS projects. According to Rystad, as of December 31, 2025, there was only approximately 4

gigawatts of installed geothermal capacity in the U.S., with limited plans for new projects, with only one project

currently under construction with capacity greater than 25 megawatts.

*Research Organizations*

National laboratories and research institutions, such as the National Lab of the Rockies and Lawrence Berkeley

National Laboratory, play a crucial role in advancing geothermal science. Their research focuses on resource

characterization, drilling technology, and reservoir management. Fervo Energy maintains collaborative relationships

with these institutions to validate its technologies and improve project outcomes.

***Fervo Energy's Competitive Edge:***

• ***Innovative Drilling and Monitoring***: Fervo Energy leverages horizontal drilling and fiber-optic technology

to optimize geothermal resource extraction, enhancing efficiency and reducing costs compared to

traditional methods.

• ***Scalability and Flexibility***: Fervo's technology supports modular project development, enabling rapid

scaling and adaptation to various geological conditions, making it competitive with other renewable energy

sources.

• ***Environmental Stewardship***: The use of closed-loop systems minimizes water usage and surface impact,

addressing environmental concerns and facilitating regulatory approval.

• ***Strategic Partnerships***: Collaborations with technology providers and research institutions enhance Fervo's

capabilities and accelerate technology deployment.

• ***Intellectual Property and First-Mover Advantage***: Fervo Energy's proprietary technologies and early

market entry position it as a leader in the enhanced geothermal sector, creating barriers to entry for

potential competitors.

Fervo Energy's unique technological approach and strategic partnerships position it favorably in the growing

enhanced geothermal power generation market and the clean energy industry more generally.

***Google Geothermal Framework Agreement***

On March 19, 2026, we entered into the GFA with Google Energy LLC that establishes a structured process for

the development of geothermal projects across specified regions of the United States. The GFA contemplates up to

three gigawatts of contracted geothermal capacity through December 31, 2033, and establishes a development

process whereby we will submit projects to Google for evaluation. In the event we are unable to submit such

proposals, we may be obligated to pay Google liquidated damages. If either party withdraws from a project at certain

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stages, the withdrawing party may be required to pay the other party a termination fee, and Google holds certain

rights of first refusal over portions of our project pipeline, including follow-on and withdrawn projects. Google

holds several rights of first refusal over portions of project pipeline under the GFA. The GFA also restricts our

ability to accept investment from entities defined as "Competitors" under the GFA and requires us to implement

certain protective measures for Google's benefit if an entity identified as a competitor acquires any interest in us or

our project subsidiaries. The GFA does not constitute a power purchase agreement, and Google retains discretion

over whether to proceed with any individual project. For more information, see "Risk Factors—The GFA, and other

non-binding agreements we may enter into in the future, do not obligate any party to purchase any power from us

and may not result in definitive offtake agreements, commercial projects, or revenue."

***Intellectual Property***

As of December 31, 2025, we had six granted U.S. patents and over 35 pending patent applications, including

nine U.S. non-provisional applications, seven U.S. provisional patent applications, 11 pending PCT applications and

five pending patent applications with the European Patent Office. The six granted U.S. patents are projected to

expire between 2039 and 2044, before accounting for potentially available patent term adjustments or patent term

extension, as appropriate, and assuming timely payment of appropriate maintenance, renewal, annuity and other

governmental fees. We believe our portfolio of intellectual property presents significant barriers against any other

potential competitor seeking to replicate our fast, low-cost approach to deployment of enhanced geothermal power

generation.

We intend to protect our intellectual property rights via a combination of patent, trademark, and trade secret

laws in the United States and other jurisdictions, as well as with contractual protections, to establish, maintain and

enforce rights in our proprietary technologies. Unpatented research, development, know-how, and engineering skills

make an important contribution to our business. We pursue patent protection only when it is consistent with our

overall strategy for safeguarding intellectual property.

In addition, we seek to protect our intellectual property rights through non-disclosure and invention assignment

agreements with our employees and consultants and through non-disclosure agreements with business partners and

other third parties. Our U.S. patents and patent applications and foreign patent applications generally relate to

Enhanced Geothermal Systems and related drilling, well construction, reservoir stimulation, and subsurface heat

extraction technologies. We own six U.S. patents, which are set forth in the table below.

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| | | | | |
|:---|:---|:---|:---|:---|
| ***Country*** | ***Ownership*** | ***Patent Number*** | ***Type of Patent*** | ***Relevant Technology*** |
| United States | Fervo Energy <br>Company<br>| 11927369 | Utility | A method and system that <br>may be used for storing <br>energy in a geothermal <br>system and recovering both <br>the stored energy as well as <br>thermal energy on demand.<br>|
| United States | Fervo Energy <br>Company<br>| 11808121 | Utility | Encourage even distribution <br>of fluid flow across multiple <br>fracture zones intersecting a <br>horizontal well by using the <br>Limited Entry Perforation <br>Pressure Drop effect both <br>during stimulation and long-<br>term circulation.<br>|
| United States | Fervo Energy <br>Company<br>| 12281550 | Utility | Encourage even distribution <br>of fluid flow across multiple <br>fracture zones intersecting a <br>horizontal well by using the <br>Limited Entry Perforation <br>Pressure Drop effect both <br>during stimulation and long-<br>term circulation.<br>|
| United States | Fervo Energy <br>Company<br>| 12297724 | Utility | Manipulate near-wellbore <br>properties of the wellbore or <br>the formation using <br>chemical or mechanical <br>processes to improve and <br>control fluid flow <br>distribution along a <br>horizontal well.<br>|
| United States | Fervo Energy <br>Company<br>| 12378866 | Utility | A method and system that <br>may be used for storing <br>energy in a geothermal <br>system and recovering both <br>the stored energy as well as <br>thermal energy on demand.<br>|
| United States | Fervo Energy <br>Company<br>| 12535246 | Utility | A method and system that <br>may be used for storing <br>energy in a geothermal <br>system and recovering both <br>the stored energy as well as <br>thermal energy on demand.<br>|

---

***Government Regulation***

Fervo Energy operates within a complex regulatory landscape that governs geothermal energy production in the

United States. This framework includes federal, state, and local regulations that oversee the exploration,

development, and operation of geothermal resources. Compliance with these regulations is essential for the

successful deployment and operation of Fervo Energy's geothermal projects.

***Federal Regulations***

At the federal level, geothermal energy production is primarily regulated by the Department of the Interior

("DOI") through the Bureau of Land Management ("BLM") and the U.S. Forest Service ("USFS") for projects on

public lands.

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***The Geothermal Steam Act of 1970 ("GSA")***: GSA provides the legal framework for leasing public lands for

geothermal development. The BLM oversees the leasing process, ensuring that geothermal projects comply with

environmental and land use regulations.

• *Leasing and Permitting*: The Geothermal Steam Act provides the legal framework for leasing public lands

for geothermal development. It authorizes the DOI, primarily through the BLM, to issue leases for

geothermal resource exploration and development. The act imposes restrictions on where and how

geothermal resources can be developed, requiring compliance with land use plans and environmental

regulations.

• *Environmental Protection*: The act mandates that leaseholders must adhere to stipulations designed to

protect certain important natural resources, wildlife habitats, and cultural sites. This includes conducting

environmental assessments and implementing mitigation measures as necessary.

• *Royalty Payments and Revenue Sharing*: Leaseholders are required to pay royalties on the geothermal

resources they extract. The act outlines the distribution of these royalties, with a portion allocated to the

federal government and the remainder shared with state and local governments to support community

development and infrastructure.

***National Environmental Policy Act ("NEPA")***: Geothermal projects may be subject to federal, state, or local

environmental reviews, including under the federal NEPA, or state analogues. NEPA requires federal agencies to

assess the environmental impacts of their actions, such as a federal agency approving geothermal projects on federal

lands. This process may involve preparing an Environmental Assessment ("EA") or an Environmental Impact

Statement ("EIS") to evaluate potential environmental effects and identify mitigation measures. On February 25,

2025, the Council on Environmental Quality ("CEQ") promulgated an interim final rule that rescinded all CEQ

regulations implementing NEPA, and many federal agencies have updated or begun the process of preparing their

own new or updated NEPA-implementing rules, guidelines and procedures. The impact of changes to NEPA

regulations and procedures remains uncertain and could have an effect on the ability of geothermal projects to obtain

governmental permits. Geothermal energy projects may be subject to similar environmental review requirements at

the state and local level in jurisdictions with NEPA equivalents, such as the California Environmental Quality Act in

California.

• *EA and EIS*: An EA is conducted to determine whether a project will have significant environmental

effects. If significant impacts are anticipated, a more comprehensive EIS is required. This process can be

time consuming and expensive, especially if it involves preparing an EIS.

• *Public Involvement and Transparency*: NEPA emphasizes public involvement in the environmental review

process. Agencies frequently provide opportunities for public comment and participation, ensuring

transparency and accountability. This can lead to project delays if significant public opposition or

environmental concerns are raised, and can alter the nature of a proposed project either by limiting the

scope of the project or by identifying impacts that an agency decides must be mitigated. Project opponents

may challenge agency decision-making based on alleged deficiencies in the NEPA process, which may

result in increased costs, permitting and development delays and potentially even permit vacatur.

• *Mitigation and Alternatives*: Under NEPA, agencies must identify and evaluate reasonable alternatives to

proposed actions, and they must consider potential mitigation measures to minimize adverse environmental

impacts. This can impose additional costs and operational constraints on geothermal projects.

***Federal Energy Regulatory Commission ("FERC")***: While FERC's role in geothermal energy is limited

compared to other energy sectors, it may be involved in the regulation of power sales and interconnection

agreements for geothermal projects.

• *Interconnection and Transmission*: While FERC's role in geothermal energy is limited compared to other

energy sectors, it oversees the interconnection of geothermal projects to the electric grid. This includes

ensuring that interconnection agreements comply with federal standards and do not adversely affect grid

reliability.

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• *Power Sales and Market Regulations*: FERC regulates the sale of electricity generated by geothermal

projects in interstate commerce. This includes ensuring that power sales agreements are just and reasonable

and do not result in undue discrimination or preference.

• *Licensing and Compliance*: For geothermal projects that involve hydroelectric components or are located

on federal lands with water resources, FERC may require additional licensing and compliance with specific

regulations. This can include adherence to water quality standards and protection of aquatic habitats.

***Other environmental regulations***. The following list provides an overview of the types of federal, state and

local environmental laws and regulations required to develop and operate geothermal projects in the United States.

Depending on the state or locality where a project is located, such project may be subject to additional

environmental regulations. Failure to comply with any of these environmental laws and regulations, as amended

from time to time, may have a material adverse impact on our capital expenditures, results of operations or financial

position.

• *Management, Disposal, and Remediation of Hazardous Substances*. Geothermal projects and materials

handled, stored, or disposed of on project properties may be subject to the federal Resource Conservation

and Recovery Act, the Toxic Substances Control Act, the Comprehensive Environmental Response,

Compensation, and Liability Act ("CERCLA"), and analogous state laws. CERCLA imposes liability,

without regard to fault or the legality of the original conduct, on certain classes of persons known as

potentially responsible parties, with respect to the release of "hazardous substances" into the environment.

Potentially responsible parties include the current and past owners or operators of a disposal site or site

where the release occurred and third parties who disposed of or arranged for the disposal of hazardous

substances found at such sites. Under CERCLA, potentially responsible parties may be subject to strict,

joint and several and retroactive liability for the remediation of hazardous substances that have been

released into the environment and for damage to natural resources. Geothermal project developers could be

responsible for the costs of investigation and cleanup, and for any related liabilities, including claims from

neighboring landowners, governmental agencies, citizen organizations and other third parties for damage to

property, persons, or natural resources allegedly caused by the release of hazardous substances into the

environment.

• *Clean Water Act*. The Clean Water Act ("CWA") and comparable state laws impose restrictions and strict

controls regarding the discharge of pollutants into or near waters of the United States ("WOTUS") or state

waters. The discharge of pollutants into regulated waters is prohibited, including water discharges such as

storm water runoff associated with construction activities, except in accordance with the terms of a permit

issued by the EPA or an analogous state agency. The discharge of dredge and fill material into regulated

waters, including wetlands, is also prohibited, unless authorized by a permit issued by the Army Corps of

Engineers ("USACE"). Geothermal project developers may also be required to mitigate any loss of

wetland functions and values. Additionally, geothermal project developers may be required to follow a

variety of best management practices to ensure that water quality is protected and the adverse

environmental impacts of the project to water resources are minimized (e.g., erosion control measures).

• *Clean Air Act*. Certain operations may be subject to federal, state, or local permitting requirements under

the Clean Air Act, which regulates the emission of air pollutants, including greenhouse gases, and may

require obtaining permits and approvals prior to construction. For example, wells and geothermal power

plants require a preconstruction air permit before earthwork can commence. In addition, in some

jurisdictions, the wells that are to be used for production require, and those used for injection may require,

air emissions permits to operate. Internal combustion engines and other air pollutant emissions sources at

the geothermal projects may also require air emissions permits, including managing fugitive dust emissions

during construction. These permits are typically issued at the state or county level.

• *Threatened, Endangered and Protected Species*. Federal agencies considering permit applications for

geothermal projects that may affect species listed under the federal Endangered Species Act ("ESA") are

required to consult with the United States Fish and Wildlife Service ("USFWS") (for terrestrial and

freshwater species) and the National Marine Fisheries Service (for marine and anadromous species). The

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ESA also prohibits the "take" of a threatened or endangered species absent authorization. Geothermal

projects are also required to comply with the Migratory Bird Treaty Act and the Bald and Golden Eagle

Protection Act, which provide various protections for migratory birds and bald and golden eagles,

respectively. Most states also have similar laws. Federal and state agencies may require geothermal

project developers to conduct avian and bat risk assessments prior to issuing permits for geothermal

projects, and may also require ongoing monitoring and mitigation activities, best management practices, or

compensation mitigation.

Overall, these regulatory frameworks impose various restrictions and limitations on geothermal power

generation operations to ensure environmental protection, public involvement, and fair market practices.

Compliance with these regulations is essential for the successful development and operation of geothermal projects.

***State and Local Regulations***

State governments play a significant role in regulating geothermal energy production, with each state having its

own permitting and regulatory requirements. These regulations often cover drilling permits, water rights, and

environmental protection measures. Local governments may also impose additional zoning and land use

requirements.

*California*

• *California Energy Commission ("CEC")*: The CEC is responsible for energy policy planning and

development in California. It oversees the permitting process for geothermal projects, ensuring they align

with state energy goals and environmental standards. The CEC also conducts research and provides funding

for renewable energy projects, including geothermal.

• *California Department of Conservation, Division of Oil, Gas, and Geothermal Resources ("DOGGR")*:

DOGGR regulates the drilling, operation, and closure of geothermal wells. It ensures that geothermal

operations comply with safety and environmental standards to protect public health and natural resources.

• *California Public Utilities Commission ("CPUC")*: The CPUC regulates the state's electricity market,

including the integration of geothermal energy. It enforces California's renewable portfolio standards

(RPS), which require utilities to source a certain percentage of their energy from renewable sources,

including geothermal.

*Colorado*

• *Colorado Division of Water Resources*: This division manages water rights and usage, which are critical for

geothermal operations that require water for cooling or reinjection. It ensures that geothermal projects do

not adversely affect water availability for other users.

• *Colorado Energy Office*: The office promotes the development of renewable energy, including geothermal,

through policy support, incentives, and public-private partnerships. It works to advance Colorado's clean

energy goals and reduce greenhouse gas emissions.

*Idaho*

• *Idaho Department of Water Resources ("IDWR")*: IDWR regulates the exploration and development of

geothermal resources. It issues permits for drilling and water use, ensuring that geothermal projects comply

with state water laws and environmental standards.

• *Idaho Public Utilities Commission ("IPUC")*: The IPUC oversees the integration of geothermal energy into

Idaho's electricity grid. It regulates utility rates and services, ensuring that geothermal energy contributes to

the state's energy mix in a cost-effective and reliable manner.

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*New Mexico*

• *New Mexico Energy, Minerals and Natural Resources Department ("EMNRD")*: EMNRD manages the

development of geothermal resources, providing permits for exploration and production. It ensures that

geothermal projects comply with state environmental regulations and land use policies.

• *New Mexico Environment Department ("NMED")*: NMED enforces environmental regulations related to

air and water quality for geothermal projects. It ensures that geothermal operations do not negatively

impact the environment or public health.

*Nevada*

• *Nevada Division of Minerals*: This division oversees the permitting and regulation of geothermal resources.

It ensures that geothermal projects are developed sustainably and in compliance with environmental

protection standards.

• *Nevada Public Utilities Commission ("PUCN")*: The PUCN regulates the integration of geothermal energy

into Nevada's electricity grid. It supports the state's renewable energy initiatives and ensures that

geothermal energy contributes to Nevada's energy goals.

• *Nevada Division of Environmental Protection ("NDEP")*: The NDEP oversees environmental compliance

for geothermal development in Nevada, including permitting for air quality, water resources, and surface

disturbance. It ensures that geothermal projects meet state environmental standards and operate in a manner

that protects Nevada's natural resources throughout the project lifecycle.

*Utah*

• *Utah Division of Water Rights*: This division manages water rights and usage for geothermal projects,

ensuring compliance with state water laws. It regulates the allocation and use of water resources for

geothermal operations.

• *Utah Geological Survey ("UGS")*: The UGS provides research and data on geothermal resources to support

development and policy-making. It conducts studies and assessments to identify geothermal potential and

inform regulatory decisions.

*Washington State*

• *Washington State Department of Natural Resources ("DNR")*: The DNR regulates the exploration and

development of geothermal resources, ensuring compliance with state environmental and land use laws. It

manages state lands and resources, including geothermal energy.

• *Washington Utilities and Transportation Commission ("UTC")*: The UTC oversees the integration of

geothermal energy into Washington's electricity grid. It regulates utility rates and services, supporting the

state's renewable energy policies and goals.

In addition to these state-level regulations, local governments in each state may impose additional zoning, land

use, and environmental regulations that geothermal projects must comply with. These local regulations can vary

widely depending on the specific municipality or county where a project is located. Fervo Energy and other

geothermal developers must navigate this complex regulatory landscape to ensure compliance and facilitate project

development.

***Other Environmental Permits***

In the United States, geothermal projects may be required to obtain a variety of federal, state and local permits,

approvals or other authorizations. Delays in obtaining or failure to obtain any required permit, approval or other

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authorizations, and non-compliance with applicable permits and approvals, may have a material adverse impact on

our capital expenditures, results of operations or financial positions.

• *Land Use Approvals*: Geothermal projects may require certain land use approvals and permits, such as

operation and utilization plan approvals, right of way approvals where the geothermal project is entirely or

partly on BLM or USFS lands, and special use permits or conditional use permits from local planning

authorities. Such permits and approvals may require a review of environmental impacts in conformance

with NEPA as noted above. Federal, state and local land use approvals often impose conditions and

restrictions on the construction, scope and operation of geothermal projects.

• *Well Permits*. Geothermal projects typically have four types of wells: (i) resource confirmation wells

designed to define and verify the geothermal resource, (ii) production wells to extract brine for the power

plant, (iii) injection wells to inject the brine back into the subsurface resource, and (iv) monitoring wells to

monitor the geothermal resource. For example, on BLM lands in Nevada, California, Oregon, Utah, and

Idaho, the well permits take the form of geothermal drilling permits for well installation. Approvals are

also required to modify wells, including for use as production or injection wells. For all wells drilled in

Nevada, a geothermal drilling permit must also be obtained from the Nevada Division of Minerals. Those

wells in Nevada to be used for injection will also require UIC permits from the Nevada Division of

Environmental Protection, Bureau of Water Pollution Control. Geothermal wells in Utah require permits

from the Utah Division of Water Rights, and injection wells require a permit from the Utah Department of

Environmental Quality.

• *Ministerial Permits*: Ministerial permits such as building permits, hazardous materials storage and

management permits, and pressure vessel operating permits may be required for geothermal projects.

• *Other Permits*: Our operations require numerous other federal, state, and local authorizations, as discussed

above. For example, in Nevada we may be required to obtain water rights permits if water cooling is being

used at a power plant. In addition to permits, there are various regulatory plans and programs that are

required, including risk management plans (federal and state programs) and hazardous materials

management plans (e.g., in California). In some cases, our projects may also require permits, issued by the

applicable federal agencies or authorized state agencies, regarding threatened or endangered species,

permits to impact wetlands or other waters and notices of construction of structures which may have an

impact on airspace, as noted above.

We may experience regulatory delays in obtaining various environmental permits and approvals required for

geothermal projects in development and construction. These delays may lead to increases in the time and cost to

complete these projects. Non-compliance with any environmental permit and approval requirements could result in

fines and penalties and could also affect our ability to operate the affected project.

***Fervo Energy's Regulatory Strategy***

• *Innovative Technology and Compliance*: Fervo Energy's use of advanced drilling techniques and real-time

data analytics aligns with regulatory requirements by enhancing resource management and minimizing

environmental impact. This approach supports compliance with both federal and state regulations.

• *Environmental Stewardship*: Fervo Energy is committed to environmental stewardship, employing closed-

loop systems that reduce water usage and surface impact. This commitment facilitates regulatory approval

and aligns with NEPA's environmental protection goals.

• *Strategic Partnerships and Engagement*: Fervo Energy collaborates with regulatory agencies, research

institutions, and industry partners to ensure compliance and advance geothermal technology. Early

engagement with stakeholders and proactive environmental analysis can help streamline the regulatory

process.

• *Site Selection and Planning*: Fervo Energy strategically selects sites with strong industrial use and limited

environmental sensitivity to support eligibility for streamlined regulatory reviews. Adaptive planning and

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contingency buffers are incorporated into project schedules to accommodate varying levels of regulatory

scrutiny.

• *Impact on Fervo Energy*: The regulatory landscape presents both challenges and opportunities for Fervo

Energy. By leveraging innovative technology, maintaining strong environmental practices, and engaging

with regulatory bodies, Fervo Energy is well-positioned to navigate the regulatory environment and

advance its geothermal projects. The company's proactive approach to regulatory compliance and

environmental stewardship supports its mission to deliver reliable geothermal energy solutions.

***Our People and Human Capital***

Fervo's success is built by its people, whose expertise, dedication, and collaboration drive every milestone we

achieve.

We embed our core values into our human capital strategy. We strive to "build things that last" by placing

health, safety, and environmental stewardship at the center of our operations and decision-making. We seek to

"innovate through collaboration," encouraging open, cross functional dialogue, and the regular exchange of ideas

with internal and external experts to solve complex problems. We emphasize the importance of "doing what we say

we are going to do," emphasizing transparency, accountability, and rigorous execution so that teams can plan

effectively and deliver on commitments. And we aim to "stop and smell the roses," fostering a sustainable work

pace, community-building, and employee well-being so our people can do their best work over the long term.

Together, these values provide a consistent framework for our human capital programs, including recruiting,

development, and engagement while supporting a safe, inclusive, and performance-oriented workplace aligned with

sustainable growth and long-term value creation.

As of December 31, 2025, we employed 199 full-time employees and part-time employees. None of our

employees are represented by a labor union or are party to a collective bargaining agreement, and we have had no

labor-related work stoppages. We believe that we have good relationships with our employees.

We believe that in order to be successful, each of our employees must believe that our mission is worth working

for. As we scale rapidly, we are striving to build a workplace where every voice matters, innovation thrives, and

integrity guides our actions. To achieve this, we invest in culture, talent, inclusion, and our relationships with the

communities where we serve.

***Facilities***

Our corporate headquarters are located in Houston, Texas and consist of approximately 53,714 square feet. We

also lease additional office space in Colorado and also lease offices in California, Nevada, and Utah. We believe that

our corporate headquarters and other offices are adequate for our immediate needs and that we will be able to obtain

additional or substitute space, as needed, on commercially reasonable terms.

***Legal Proceedings***

We are currently involved in, and may in the future from time to time become involved in, legal proceedings,

claims and investigations in the ordinary course of our business, including with our team members and providers.

Although the results of these legal proceedings, claims and investigations cannot be predicted with certainty, we do

not believe that the final outcome of any matters that we are currently involved in are reasonably likely to have a

material adverse effect on our business, financial condition or results of operations. Regardless of final outcomes,

however, any such proceedings, claims, and investigations may nonetheless impose a significant burden on

management and employees and be costly to defend, with unfavorable preliminary or interim rulings.

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**MANAGEMENT**

The following table sets forth information regarding our executive officers and members of our board of

directors, including their ages as of the date of this prospectus. With respect to our directors, each biography

includes information regarding the experience, qualifications, attributes, or skills that caused our board of directors

to determine that such person should serve as a director of our company.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| ***Executive Officers*** |  |  |
| Tim Latimer ................................ | 36 | Chief Executive Officer and Chair of the Board |
| Jack Norbeck ............................... | 38 | Chief Technology Officer |
| David Ulrey ................................. | 39 | Chief Financial Officer |
| Gustavo Torres ............................ | 45 | Senior Vice President, General Counsel & Corporate Secretary |
| Sarah Jewett ................................ | 36 | Senior Vice President, Strategy |
| Quinn Woodard Jr. ...................... | 37 | Vice President, Operations |
| Dawn Owens ............................... | 42 | Senior Vice President, Head of Development & Commercial Markets |
| Christian Gradl ............................ | 43 | Senior Vice President, GeoBlock Factory |
| ***Directors*** |  |  |
| Tim Latimer ............................... | 36 | Chief Executive Officer and Chair of the Board |
| Margaret C. Whitman\*<sup>(</sup>³<sup>)</sup> ............ | 69 | Lead Independent Director |
| Robert Keehan<sup>(</sup>²<sup>)(</sup>³<sup>)</sup> ....................... | 60 | Director and Chair of the Audit Committee |
| Jessica Uhl<sup>(</sup>¹<sup>)(</sup>²<sup>)</sup> ............................. | 58 | Director and Chair of the Nominating and Corporate Governance <br>Committee<br>|
| Anne Cleary<sup>(</sup>²<sup>)(</sup>³<sup>)</sup> .......................... | 65 | Director and Chair of the Compensation Committee |
| Robert (Trey) Lowe III<sup>(</sup>¹<sup>)</sup> ........... | 50 | Director |
| Ion Yadigaroglu<sup>(</sup>¹<sup>)</sup> ....................... | 56 | Director |

---

__________________

\*Lead independent director.

(1)Member of the Nominating and Corporate Governance Committee.

(2)Member of the Audit Committee.

(3)Member of the Compensation Committee.

**Executive Officers & Directors** 

**Tim Latimer** has served as our Chief Executive Officer and a member of our board of directors since 2018.

Prior to founding Fervo Energy, Mr. Latimer worked as a Drilling Engineer at BHP Billiton, and as a Consultant

with Biota Technology prior to that. Mr. Latimer was also previously a fellow at Activate and the Clean Energy

Leadership Institute. Mr. Latimer holds a Bachelor of Science degree in Mechanical Engineering from the

University of Tulsa, a Master of Business Administration from Stanford University Graduate School of Business and

Master of Science in the Emmet Interdisciplinary Program in Environment and Resources from Stanford University.

Mr. Latimer was honored as an Innovator Under 35 by MIT Technology Review in 2024 and a Presidential

Leadership Scholar in 2022 and was granted the Geothermal Pioneer Award by Geothermal Rising in 2023. We

believe Mr. Latimer's visionary leadership, innovative thinking, and deep commitment to sustainable energy

solutions, as well as his extensive knowledge and experience in geothermal energy development and renewable

energy markets, make him particularly qualified to serve as a member of our board of directors.

**Jack Norbeck**, PhD, has served as our Chief Technology Officer since 2017. He also served as a member of the

board of directors from 2019 until 2026. Prior to founding Fervo Energy, Dr. Norbeck held various expert research

and engineering roles in the energy and infrastructure sectors, including Fellow at Activate, Research Assistant at

the Earth Sciences Division of the Lawrence Berkeley National Laboratory, Mendenhall Postdoctoral Fellow and

Research Petroleum Engineer at the Earthquake Science Center of the U.S. Geological Survey, and Computational

Geophysicist at Idaho National Laboratory. Dr. Norbeck holds a Bachelor of Science degree in Civil Engineering

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from the University of Colorado at Boulder, a Master of Science in Civil Engineering from the Colorado School of

Mines, and a Doctor of Philosophy in Energy Resources Engineering from Stanford University.

**David Ulrey** has served as Chief Financial Officer of Fervo Energy since 2021. Prior to joining Fervo Energy,

Mr. Ulrey held finance and leadership positions in the energy and infrastructure sectors, including at NOV where he

held positions as Director of NOV Renewables and Director of Corporate Management and at Simmons &

Company, Energy Specialists of Piper Jaffray where he held a position as an Investment Banking Associate. He

began his career as an Officer in the U.S. Army. Mr. Ulrey holds a Bachelor of Science in Economics from the U.S.

Military Academy at West Point and a Master of Business Administration from the Harvard School of Business.

**Gustavo Torres** has served as Senior Vice President, General Counsel & Corporate Secretary of Fervo Energy

since 2023. Mr. Torres served as General Counsel at Prime Natural Resources for over ten years where his

responsibilities included overseeing the legal, risk, compliance, and corporate governance functions at Prime Natural

Resources and its portfolio companies, including FlexSteel Pipeline Technologies. He began his career as an

Associate at Akin Gump Straus Hauer & Feld and DLA Piper. Mr. Torres holds a Bachelor of Arts in Economics

from Grinnell College and a Juris Doctor from the University of Texas School of Law.

**Sarah Jewett** serves as Senior Vice President, Strategy at Fervo Energy. Since 2020, Ms. Jewett has led

Fervo's Strategy department, managing the integration of policy, communications, strategy, and people operations to

drive Fervo's growth. Prior to Fervo, she held leadership roles in corporate development at Select Energy Services

and worked as an engineer at Schlumberger. Ms. Jewett earned a Bachelor of Arts in Engineering Sciences and

Studio Art and a Bachelor of Engineering in Mechanical Engineering from Dartmouth College and a Master of

Business Administration from the Harvard School of Business.

**Quinn Woodard Jr.** serves as Fervo's Vice President, Operations. Prior to his promotion to lead operations,

Mr. Woodward led the engineering, construction, and delivery of Fervo's power facilities.Prior to joining Fervo, Mr.

Woodard held engineering and supervisory roles at Chevron for nine years. Mr. Woodard holds a Bachelor of

Sciences in Electrical Engineering from the University of Tulsa and a Master of Business Administration from

Indiana University's Kelley School of Business.

**Dawn Owens** has served as Senior Vice President, Head of Development & Commercial Markets at Fervo

Energy since 2020. Ms. Owens previously held roles in management and business development at various energy

companies, including East Bay Community Energy, Experis, NRG Energy, and GenOn Energy. Ms. Owens holds a

Bachelor of Arts in Economics from New Mexico State University and a Master of Business Administration from

the University of San Francisco's Masagung Business School.

**Christian Gradl** is Fervo Energy's Senior Vice President, GeoBlock Factory, where he leads all aspects of the

engineering, construction, and delivery for Fervo's modular wellfield and power facilities. Mr. Gradl joined Fervo

Energy in 2019 and prior to that was a member of Fervo's Technical Advisory Board since 2018. Before joining

Fervo, he had an extensive career in well engineering and operations management for Hess Corporation and BP. In

the Bakken Shale Mr. Gradl managed a $400MM annual budget and pioneered many innovative completions

practices. He further led shale appraisal activities in the Utica shale and for several international shale prospects.

Christian holds a Bachelor of Science and a Master of Science in Petroleum Engineering from the University of

Leoben in Austria and an MBA from the University of Texas at Austin.

**Margaret C.Whitman** has served as a non-executive independent member and the Lead Independent Director

of our board of directors since 2026. Ms. Whitman is an experienced technology and business executive who has

served as chief executive officer of three major companies. She was confirmed by unanimous Senate vote to serve as

the eighteenth United States Ambassador to Kenya from July 2022 to November 2024, leading the tenth largest U.S.

embassy in the world. Prior to that, she was Co-Founder, President and Chief Executive Officer of Quibi Holdings,

LLC, a mobile media company, from 2018 to 2021. Ms. Whitman served as Chief Executive Officer of Hewlett

Packard Enterprise Company from 2015 to 2018 and as President and Chief Executive Officer of Hewlett-Packard

Company from 2011 to 2015, where she led a major business turnaround of an iconic Fortune 10 technology

company with $125 billion in revenue and 325,000 employees. She also served as President and Chief Executive

Officer of eBay Inc. from 1998 to 2008. Ms. Whitman currently serves on the boards of directors of CoreWeave,

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Inc. and Motive Technologies and has previously served on the boards of The Procter & Gamble Company and

General Motors Company. She also serves on the boards of The Nature Conservancy, Bridgespan, the San Francisco

Downtown Development Corporation, and the Partnership for San Francisco. She holds an A.B. in Economics from

Princeton University and an M.B.A. from Harvard Business School. Ms. Whitman has been named to Forbes' list of

the World's 100 Most Powerful Women and Fortune's list of the 50 Most Powerful Women in Business on multiple

occasions. We believe Ms. Whitman is well-qualified to serve as a member of our board of directors given her

extensive experience scaling and leading major public companies, her deep expertise in technology and operations,

and her broad governance experience across public company boards.

**Robert Keehan** has served as a non-executive independent member of our board of directors and Chair of the

Audit Committee since 2026. Mr. Keehan is a seasoned energy sector audit and assurance leader with 37 years of

experience at PricewaterhouseCoopers LLP, including 28 years as a partner. He served in a leadership role in PwC's

Global firm with responsibilities that addressed strategy, growth, risk management, technical matters, business

models, and technology. Throughout his career, Mr. Keehan served as the lead audit partner for multiple Fortune

250 energy, utility, and renewables companies and managed complex transactions exceeding $50 billion, including

acquisitions, carve-outs, joint ventures, IPOs, and spin-offs. He has collaborated with industry bodies and regulators,

including the Securities and Exchange Commission, the Federal Energy Regulatory Commission, and the Financial

Accounting Standards Board. He is a member of the National Association of Corporate Directors, and he completed

Northwestern University's Kellogg School of Management Corporate Governance course in 2025. He holds a

B.B.A. in Accounting from Texas A&M University. We believe Mr. Keehan is well-qualified to serve as a member

of our board of directors given his extensive audit and assurance leadership in the energy sector, his expertise in

financial reporting, risk management, and ESG, and his deep familiarity with corporate governance matters.

**Jessica Uhl** has served as a non-executive independent member and Chair of the Nominating and Corporate

Governance Committee of our board of directors since 2026. Ms. Uhl is an experienced global energy executive and

director with 25 years of energy sector experience. She served as Chief Financial Officer and Executive Board

Director of Shell plc from 2017 to 2022, where she was responsible for a 10,000-person finance organization,

oversaw IT and data operations, and partnered with the CEO to design and deliver Shell's corporate-wide strategy.

She served as President of GE Vernova from 2024 to 2025. Ms. Uhl previously served as a non-executive board

member of General Electric, where she was a member of the Audit Committee, and Goldman Sachs, where she was

a member of the Audit, Risk, and Governance Committees. She currently serves as a Trustee and Audit Committee

Chair of RMI and on the boards of Mission Possible Partnership and OpenMinds and is an advisor to the Columbia

Center on Global Energy Policy. She holds a B.A. in Political Economy from the University of California, Berkeley,

and an M.B.A. from INSEAD. We believe Ms. Uhl is well-qualified to serve as a member of our board of directors

given her extensive executive and board leadership experience at major global energy companies, her deep expertise

in financial management and corporate governance, and her strong background in ESG and climate strategy.

**Anne Cleary** has served as a non-executive independent member of our board of directors since 2023. Going

forward, she will serve as the Chair of the Compensation Committee. Ms. Cleary is an experienced power sector

executive and director who has held roles such as Chief Risk Officer and Chief Integration Officer. She served as

Audit and Risk Committee Chair for several private power companies with assets exceeding $2 billion and has

overseen Scope 1 and 2 reporting and GRESB reporting as Audit and Risk Committee Chair for a large private

power generator. Ms. Cleary also served on the Compensation and Nomination & Corporate Governance

Committees of Ascendant Group, a public energy services company, from 2018 to 2020. She has served as a for-

profit board director for seven years in various capacities and is a member of NACD and the Private Directors

Association. She holds a Bachelor of Electrical Engineering and a Master of Business Administration from Auburn

University. Ms. Cleary was honored as the Outstanding Auburn Electrical Engineering Alumna in 2010 and the

Distinguished Auburn Engineer in 2013. We believe Ms. Cleary is well-qualified to serve as a member of our board

of directors given her extensive executive and board leadership experience in the power sector and her expertise in

risk management and corporate governance.

**Robert (Trey) Lowe III** has served as a non-executive member of our board of directors since 2026. He

previously served as a board observer on behalf of Devon Energy Corporation. Mr. Lowe is Executive Vice

President and Chief Technology Officer of Devon Energy Corporation, a leading oil and natural gas exploration and

production company, a position he has held since January 2025. Mr. Lowe joined Devon in 2005 and has held

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various technical and leadership positions with responsibilities spanning U.S. and international operations. He

previously served as Vice President and Chief Technology Officer from 2022 to February 2025, and as Vice

President of Technology from 2019 to 2022. In his current role, Mr. Lowe is responsible for Devon's technology,

digital security, project management, and energy ventures functions. Before joining Devon, Mr. Lowe worked for

Schlumberger in technical roles in the U.S. and Norway. He currently serves on the board of Altira Group Fund VI

and VII, and is a past distinguished lecturer for the Society of Petroleum Engineers. Mr. Lowe holds a B.S. in

Chemical Engineering from Oklahoma State University. We believe Mr. Lowe is well-qualified to serve as a

member of our board of directors given his extensive technology leadership experience in the energy sector, his deep

expertise in digital transformation and project management, and his strong background in innovation and energy

ventures.

**Ion Yadigaroglu** has served as a non-executive member of our board of directors since 2021. Mr. Yadigaroglu

is the Managing Partner of Capricorn Investment Group, a long-term investment firm focused on sustainable and

climate-related opportunities, and a Partner of Capricorn's Technology Impact Fund. He currently serves on the

boards of several private companies, including Erthos, Twelve, and Seurat, and has served on the boards of the

Environmental Defense Fund since 2023. Through Capricorn and its affiliated entities, Mr. Yadigaroglu has

extensive experience in capital allocation, corporate financing, and strategic planning across the energy and

sustainability sectors. His skills matrix reflects significant experience in international business, capital allocation and

corporate financing, strategic planning, ESG and climate risks, and industry experience. Mr. Yadigaroglu holds a

Ph.D. in Astrophysics from Stanford University. We believe Mr. Yadigaroglu is well-qualified to serve as a member

of our board of directors given his deep investment expertise in the energy and sustainability sectors, his extensive

board experience across climate-focused technology companies, and his strong background in capital allocation and

strategic planning.

**Family Relationships**

There are no family relationships among any of our directors or executive officers.

**Composition of our Board of Directors**

Our board of directors currently consists of seven directors. Our Amended Charter and Amended Bylaws will

provide that our board of directors may consist of up to seven directors and that our board of directors will be

divided into three classes, as nearly equal in number as possible, with the directors in each class serving for a three-

year term, and one class being elected each year by our stockholders.

When considering whether directors have the experience, qualifications, attributes or skills, taken as a whole, to

enable our board of directors to satisfy its oversight responsibilities effectively in light of our business and structure,

the board of directors focuses primarily on each person's background and experience as reflected in the information

discussed in each of the directors' individual biographies set forth above. We believe that our directors provide an

appropriate mix of experience and skills relevant to the size and nature of our business.

**Classified Board of Directors** 

Our Amended Bylaws will provide that, upon the completion of this offering, our board of directors will be

divided into three classes with staggered three-year terms. Upon expiration of the term of a class of directors,

directors for that class will be elected for three-year terms at the annual meeting of stockholders in the year in which

that term expires. As a result, only one class of directors will be elected at each annual meeting of our stockholders,

with the other classes continuing for the remainder of their respective three-year terms. Each director's term will

continue until the election and qualification of his or her successor, or his or her earlier death, resignation or removal

for cause. Our directors will be divided among the three classes as follows:

• Class I directors, whose initial term will expire at our first annual meeting of stockholders following this

offering, will consist of Trey Lowe and Anne Cleary;

• Class II directors, whose initial term will expire at our second annual meeting of stockholders following

this offering, will consist of Margaret C. Whitman and Robert Keehan; and

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• Class III directors, whose initial term will expire at our third annual meeting of stockholders following this

offering, will consist of Tim Latimer, Ion Yadigaroglu and Jessica Uhl.

Our Amended Charter and Amended Bylaws will provide that only our board of directors may fill vacancies on

our board. We expect that any additional directorships resulting from an increase in the number of directors will be

distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the total

number of directors.

The classification of our board of directors may have the effect of delaying or preventing changes in our control

or management. See the section titled "Description of Capital Stock—Anti-Takeover Effects of Provisions of our

Amended Charter and Amended Bylaws—Amended Charter and Amended Bylaw Provisions" for additional

information.

**Controlled Company Exception**

After the completion of this offering, our Co-Founders, Tim Latimer, our Chief Executive officer and Chair of

our board, and Jack Norbeck, PhD., who serves as our Chief Technical Officer, will continue to beneficially own a

majority of the voting power of our capital stock through their ownership of all of our outstanding shares of Class B

common stock, which are entitled to 40 votes per share. As a result, we will be a "controlled company" within the

meaning of the NASDAQ corporate governance standards and may elect not to comply with certain corporate

governance standards, including that: (1) a majority of our board of directors consist of independent directors, (2)

our board of directors have a compensation committee that is comprised entirely of independent directors with a

written charter addressing the committee's purpose and responsibilities and (3) our board of directors have a

nominating and corporate governance committee that is comprised entirely of independent directors with a written

charter addressing the committee's purpose and responsibilities. We may utilize any or all of these exemptions at

any time at our discretion prior to the time we cease to be a "controlled company." Accordingly, to the extent we

utilize these exemptions, you will not have the same protections afforded to stockholders of companies that are

subject to all of these corporate governance requirements.

**Director Independence**

Prior to the consummation of this offering, our board of directors undertook a review of the independence of our

directors and considered whether any director has a material relationship with us that could compromise that

director's ability to exercise independent judgment in carrying out that director's responsibilities. Our board of

directors has affirmatively determined that Mr. Keehan, Ms. Cleary, Ms. Uhl, Mr. Yadigaroglu, and Ms. Whitman

are each an "independent director," as defined under the rules of the NASDAQ.

**Lead Independent Director**

Our board of directors will adopt, effective prior to the completion of this offering, corporate governance

guidelines that provide that one of our independent directors will serve as our lead independent director. Our board

of directors has appointed Margaret C. Whitman to serve as our lead independent director. As lead independent

director, Ms. Whitman will preside over periodic meetings of our independent directors, serve as a liaison between

the chair of our board of directors and the independent directors, and perform such additional duties as our board of

directors may otherwise determine and delegate.

**Committees of Our Board of Directors**

Our board of directors directs the management of our business and affairs, as provided by Delaware law, and

conducts its business through meetings of the board of directors and standing committees. We will have a standing

audit committee, nominating and corporate governance committee and compensation committee. In addition, from

time to time, special committees may be established under the direction of the board of directors when necessary to

address specific issues.

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***Audit Committee***

Our audit committee will be responsible for, among other things:

• appointing, compensating, retaining, and overseeing our independent registered public accounting firm;

• discussing with our independent registered public accounting firm their independence from management;

• reviewing with our independent registered public accounting firm the scope and results of their audit;

• pre-approving all audit and permissible non-audit services to be performed by our independent registered

public accounting firm;

• overseeing the financial reporting process and discussing with management and our independent registered

public accounting firm the interim and annual financial statements that we file with the SEC;

• reviewing and monitoring our accounting principles, accounting policies, financial and accounting controls

and compliance with legal and regulatory requirements;

• discussing our policies with respect to risk assessment and risk management, including oversight of

financial, information technology, cybersecurity and data privacy risks;

• reviewing related party transactions;

• establishing procedures for the confidential, anonymous submission and receipt, retention and treatment of

complaints regarding accounting, internal accounting controls or auditing matters; and

• serving as the appropriate body to receive and oversee the investigation of reports of suspected violations of

laws, regulations or the Code of Conduct, to determine appropriate disciplinary action, and to ensure

protections against retaliation for good-faith reporters.

Upon the consummation of this offering, our audit committee will consist of Mr. Keehan, Ms. Cleary and Ms.

Uhl, with Mr. Keehan serving as chair. Rule 10A-3 of the Exchange Act and the NASDAQ rules require that our

audit committee have at least one independent member upon the listing of our Class A common stock, have a

majority of independent members within 90 days of the date of this prospectus and be composed entirely of

independent members within one year of the date of this prospectus. Our board of directors has affirmatively

determined that Mr. Keehan, Ms. Cleary and Ms. Uhl each meet the definition of "independent director" for

purposes of serving on the audit committee under Rule 10A-3 and the NASDAQ rules. Each member of our audit

committee meets the financial literacy requirements of NASDAQ listing standards. In addition, our board of

directors has determined that Mr. Keehan will qualify as an "audit committee financial expert," as such term is

defined in Item 407(d)(5) of Regulation S-K. Our board of directors will adopt a new written charter for the audit

committee, which will be available on our principal corporate website at www.fervoenergy.com substantially

concurrently with the consummation of this offering. The information on, or that can be accessed through, any of

our websites is deemed not to be incorporated in this prospectus or to be part of this prospectus.

***Nominating and Corporate Governance Committee***

Our nominating and corporate governance committee will be responsible for, among other things:

• identifying individuals qualified to become members of our board of directors, consistent with criteria

approved by our board of directors, and recommending to the board of directors the nominees for election;

• overseeing the annual self-evaluations of our board of directors and its committees; and

• developing and recommending to our board of directors a set of corporate governance guidelines and

reviewing and reassessing the adequacy of such guidelines.

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Upon the consummation of this offering, our nominating and corporate governance committee will consist of

Ms. Uhl, Mr. Lowe and Mr. Yadigaroglu, with Ms. Uhl serving as chair. Mr. Lowe is affiliated with Devon Energy

Corporation, a holder of greater than 10% of our common stock. As such, our board of directors have determined

that Mr. Lowe is not independent pursuant to the listing rules of NASDAQ, and Mr. Lowe is limited to two years of

service as a non-independent director on our nominating and corporate governance committee. Our board of

directors will adopt a new written charter for the nominating and corporate governance committee, which will be

available on our principal corporate website at www.fervoenergy.com substantially concurrently with the

consummation of this offering. The information on, or that can be accessed through, any of our websites is deemed

not to be incorporated in this prospectus or to be part of this prospectus.

***Compensation Committee***

Our compensation committee will be responsible for, among other things:

• reviewing and setting, or making recommendations to the board regarding the compensation of the Chief

Executive Officer and the other named executive officers;

• reviewing and making recommendations to the board regarding director compensation;

• administering the Company's incentive and equity compensation plans and making grants of cash-based

and equity-based awards thereunder; and

• appointing, compensating, and overseeing any advisers retained by the Committee.

Upon the consummation of this offering, our compensation committee will consist of Ms. Cleary, Ms. Whitman

and Mr. Keehan, with Ms. Cleary serving as chair. Our board has determined that Ms. Cleary, Ms. Whitman and Mr.

Keehan are "non-employee directors" as defined in Section 16b-3 of the Exchange Act. Our board of directors will

adopt a new written charter for the compensation committee, which will be available on our principal corporate

website at www.fervoenergy.com substantially concurrently with the consummation of this offering. The

information on, or that can be accessed through, any of our websites is deemed not to be incorporated in this

prospectus or to be part of this prospectus.

**Risk Oversight**

Our board of directors is responsible for overseeing our risk management process. Our board of directors

focuses on our general risk management strategy, the most significant risks facing us, and oversees the

implementation of risk mitigation strategies by management. Our board of directors is also apprised of particular

risk management matters in connection with its general oversight and approval of corporate matters and significant

transactions.

**Compensation Committee Interlocks and Insider Participation**

None of our executive officers serves as a member of the board of directors or compensation committee (or

other committee performing equivalent functions) of any entity that has one or more executive officers serving on

our board of directors or compensation committee.

**Board Diversity**

Our nominating and corporate governance committee will be responsible for reviewing with the board of

directors, on an annual basis, the appropriate characteristics, skills and experience required for the board of directors

as a whole and its individual members. Although our board of directors does not have a formal written diversity

policy with respect to the evaluation of director candidates, in its evaluation of director candidates, our nominating

and corporate governance committee will consider factors including, without limitation, issues of character,

integrity, judgment, potential conflicts of interest, other commitments, and diversity, and diversity of experience and

area of expertise, as well as other individual qualities and attributes that contribute to the total diversity of

viewpoints and experience represented on the board of directors.

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**Code of Ethics and Code of Conduct**

Prior to the completion of this offering, we will adopt a written code of business conduct and ethics that applies

to our directors, officers and employees, including our principal executive officer, principal financial officer,

principal accounting officer or controller, or persons performing similar functions. A copy of the code will be posted

on our website, www.fervoenergy.com. In addition, we intend to post on our website all disclosures that are required

by law or the NASDAQ listing standards concerning any amendments to, or waivers from, any provision of the

code. The information on, or that can be accessed through, any of our websites is deemed not to be incorporated in

this prospectus or to be part of this prospectus.

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**EXECUTIVE AND DIRECTOR COMPENSATION**

This section discusses the material components of the executive and director compensation program for our

executive officers who are named in the "2025 Summary Compensation Table" below and each person who served

as a director in 2025. We are currently considered an emerging growth company within the meaning of the

Securities Act, for purposes of the SEC's executive compensation disclosure rules. In accordance with such rules,

we are required to provide a Summary Compensation Table and an Outstanding Equity Awards at Fiscal Year End

Table, as well as narrative disclosures regarding the material terms of our executive compensation program for our

last completed fiscal year. Further, our reporting obligations generally extend to each individual who, during the last

completed fiscal year, served in the role of our principal executive officer, and to our two most highly compensated

executive officers outside of our principal executive officer. With respect to the year ended December 31, 2025, our

"named executive officers" or "NEOs" were as follows:

• Timothy Latimer, Chief Executive Officer and Chair of the board;

• Jack Norbeck, Ph.D., Chief Technology Officer; and

• David Ulrey, Chief Financial Officer.

This discussion may contain forward-looking statements that are based on our current plans, considerations,

expectations and determinations regarding future compensation programs. Actual compensation programs that we

adopt may differ materially from the currently planned programs summarized in this discussion.

**Summary Compensation Table** 

The following table sets forth information concerning the compensation of our named executive officers for the

year ended December 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary**<br>**($)**<sup>(1)</sup><br>| **Option** <br>**Awards**<br>**($)**<sup>(2)</sup><br>| **Non-Equity**<br>**Incentive Plan**<br>**Compensation**<br>**($)**<br>| **All Other**<br>**Compensation**<br>**($)**<sup>(3)</sup><br>| **Total**<br>**($)**<br>|
| Timothy Latimer<br>*Chief Executive Officer* .........<br>| 2025 | 349846 | 9667045 | 150405 | 799853 | 10967149 |
| Jack Norbeck, Ph.D.<br>*Chief Technology Officer* ......<br>| 2025 | 312287 | 1453726 | 101876 | 432253 | 2300142 |
| David Ulrey<br>*Chief Financial Officer* .........<br>| 2025 | 337077 | 2180589 | 113280 | 53499 | 2684445 |

---

__________________

(1)Amounts reflect base salary earned during 2025, even if paid in 2026.

(2)Amounts reflect the aggregate grant date fair value of stock options granted during the year ended December 31, 2025 computed in

accordance with FASB ASC Topic 718, Compensation — Stock Compensation and do not necessarily correspond to the actual

economic value that may be received by the named executive officers from these awards. We provide information regarding the

assumptions used to calculate the value of all stock options made to named executive officers in Note 10 – Stock Based Compensation

to the consolidated financial statements included in this prospectus.

(3)Amounts reflect (i) $23,500, $21,577 and $23,499 in employer matching contributions made to the Fervo Energy 401(k) plan, for Mr.

Latimer, Dr. Norbeck and Mr. Ulrey, respectively, (ii) $776,353 and $388,176 in compensatory payments to Mr. Latimer and Dr.

Norbeck, respectively, in connection with the Company's repurchase of shares of common stock held by Mr. Latimer and Dr.

Norbeck, representing the total purchase price of such shares greater than their fair market value on the repurchase date, and (iii)

$22,500 and $30,000 in executive coaching services for Dr. Norbeck and Mr. Ulrey, respectively. For more information regarding

these amounts, see "Other Elements of Compensation and Compensation Policies" below.

**Narrative to Summary Compensation Table** 

***2025 Salaries***

Each of our named executive officers receives an annual base salary to compensate the executive for services

rendered to us. The base salary payable to each named executive officer is intended to provide a fixed component of

compensation reflecting the executive's skill set, experience, role and responsibilities.

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As of January 1, 2025, the annual base salaries for our named executive officers were $320,000 for Mr. Latimer,

$289,000 for Dr. Norbeck and $321,350 for Mr. Ulrey. We increased the named executive officers' salaries in May

2025 (to $352,000, $317,900 and $337,417, respectively), and in November 2025 (to $440,000, $365,585 and

$388,030, respectively).

The "Salary" column of the 2025 Summary Compensation Table above shows the actual base salary earned by

each named executive officer in 2025.

***Non-Equity Incentive Plan Compensation***

In addition to base salaries, our named executive officers are eligible to receive annual performance-based cash

bonuses. The performance periods for our annual cash bonus programs generally commence on April 1 and end on

the following March 31. Under our 2024 – 2025 Employee Incentive Bonus Plan, which commenced on April 1,

2024 and ended on March 31, 2025, Mr. Latimer, Dr. Norbeck and Mr. Ulrey were eligible to earn an annual

performance-based cash incentive bonus that was calculated based on the achievement of company and individual

objectives. Company objectives related to the achievement of operational goals regarding Cape Station, scaling our

corporate organization, and improvements to our system and scaling (the "Company OKRs").

Mr. Latimer, Dr. Norbeck and Mr. Ulrey were eligible to receive a target annual bonus equal to 40%, 30 % and

30 % of their respective annual base salaries under our 2024 – 2025 Employee Incentive Bonus Plan. Following the

end of the performance period, our board of directors reviewed our performance against each Company OKR and

reviewed each executive's individual performance and determined that each Company OKR was achieved at or

above 100%, other than our operational goals regarding Cape Station, which were achieved at 97.5% on average.

We also determined that Dr. Norbeck and Mr. Ulrey satisfied their individual objectives were achieved at or above

100% and determined that Mr. Latimer's individual objectives were satisfied at a level equal to the Company's

achievement of the Company OKRs. The "Non-Equity Incentive Plan Compensation" column of the 2025 Summary

Compensation Table above shows the actual bonuses earned by each named executive officer, which were paid in

May 2025.

Each of our named executive officers participates in our 2025 – 2026 Employee Incentive Bonus Plan, which

commenced on April 1, 2025 and will end on March 31, 2026. Our board of directors increased the target annual

bonuses under our 2025 – 2026 Employee Incentive Bonus Plan for Mr. Latimer, Dr. Norbeck and Mr. Ulrey to

75%, 55% and 55% of their respective annual base salaries, effective as of November 17, 2025. Any annual

bonuses earned by them under our 2025 – 2026 Employee Incentive Bonus Plan will be pro-rated based on the

effective date of these increases.

***Equity Compensation***

*2019 Stock Incentive Plan*

Prior to this offering, we maintained the Fervo Energy Company 2019 Stock Incentive Plan (the "2019 Plan") in

order to provide our service providers with equity ownership opportunities and performance-based incentives that

are intended to better align their interests with those of our stockholders. Historically, we granted stock options to

purchase shares of our common stock to eligible service providers, including our named executive officers, pursuant

to the 2019 Plan. Options typically vest and become exercisable over a four-year period, subject to the grantee's

continued service through the applicable vesting date, as follows: (i) 25% of the shares underlying the option on the

first annual anniversary of the vesting commencement date and (ii) 75% of the shares underlying the option in 36

substantially equal installments on each monthly anniversary of the vesting commencement date thereafter. For a

summary of the material terms of the 2019 Plan, please see the section titled "2019 Stock Incentive Plan" below.

No awards will be granted under the 2019 Plan following this offering and the adoption of the 2026 Incentive

Award Plan. In addition, in connection with the completion of this offering, the stock options granted pursuant to

the 2019 Plan will be reclassified to cover shares of our Class A common stock pursuant to the Reclassification;

however, shares of Class A common stock received by Mr. Latimer and Dr. Norbeck in connection with the exercise

of their stock options may be exchanged for shares of our Class B common stock, as further described in "Certain

Relationships and Related Party Transactions" below.

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*2025 Stock Options*

In December 2025, we granted stock options to our named executive officers under the 2019 Plan, as set forth

below. The stock options generally vest and become exercisable in accordance with the standard vesting schedule of

option grants described above.

The following table sets forth the stock option awards granted to our named executive officers in the 2025 fiscal

year.

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| | |
|:---|:---|
| **Named Executive Officer** | **Number of** <br>**Shares Subject to** <br>**Options Granted** <br>**in 2025**<br>|
| Timothy Latimer .................................................................................................................................. | 3324920 |
| Jack Norbeck, Ph.D. ............................................................................................................................ | 500000 |
| David Ulrey ......................................................................................................................................... | 750000 |

---

*2026 Performance Options*

In March 2026, we granted two stock options to Mr. Latimer under the 2019 Plan covering (i) 3,379,897 shares

of our common stock (the "Operational Milestone Option") and (ii) 10,139,691 shares of our common stock (the

"Market Capitalization Option"). The material terms and conditions of the Operational Milestone Option and

Market Capitalization Option are summarized below.

*Operational Milestone Option*

The Operational Milestone Option vests and becomes exercisable upon satisfaction of both a milestone-based

condition and a service-based condition. The milestone-based condition is our achievement of a commercial

operation date of Cape Phase 1 no later than January 1, 2027 (the "Operational Milestone Date"). The service-based

condition is satisfied as to 25% of the underlying shares on the Operational Milestone Date and as to the remaining

shares in 36 substantially equal successive monthly installments over the three-year period thereafter, subject to

continued employment. For clarity, if the Operational Milestone Date does not occur prior to January 1, 2027, then

the Operational Milestone Option will be forfeited and terminated without consideration as of such date.

If the Company incurs a change in control (as defined in the Operational Milestone Option agreement) and the

Operational Milestone Option is assumed, then:

• the milestone-based condition will be deemed satisfied (if not already satisfied) and the Operational

Milestone Date will be the date of such change in control; and

• if the milestone-based condition was satisfied prior to the change in control, then the shares subject to the

Operational Milestone Option will continue to satisfy the service-based condition in accordance with the

terms described above.

If the Operational Milestone Option is not assumed in the change in control, then the Operational Milestone

Option will become fully vested and exercisable as of the date of such change in control.

If Mr. Latimer is terminated by us without cause, by Mr. Latimer for good reason, or due to Mr. Latimer's death

or disability, then:

• if the milestone-based condition was not satisfied prior to the termination date, then the Operational

Milestone Option will remain outstanding until January 1, 2027 and will be eligible to vest and become

exercisable upon achievement of the milestone-based condition, in which case a pro-rated number of shares

will vest and become exercisable (based on the portion of the period prior to vesting during which Mr.

Latimer was employed); and

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• if the milestone-based condition was satisfied prior to the termination date, the Operational Milestone

Option will become fully vested and exercisable as of the date of such termination.

*Market Capitalization Option*

The Market Capitalization Option vests and become exercisable upon satisfaction of both a milestone-based

condition and a service-based condition. The milestone-based condition is our achievement of the Market

Capitalization Milestone Condition (as set forth in the table below). The service-based condition is satisfied as to

25% of the underlying shares on the Market Capitalization Milestone Date and as to the remaining shares in 36

substantially equal successive monthly installments over the three-year period thereafter, subject to continued

employment. However, if we do not complete an initial public offering of our shares of common stock by August

15, 2026, then the Market Capitalization Option will be forfeited and terminated without consideration as of such

date.

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| | |
|:---|:---|
| **Market Capitalization Milestone Condition\*** | **Number of** <br>**Shares**<br>|
| Prior to the fifth anniversary of the grant date, a market capitalization equal to or exceeding $20 <br>billion at a time when we are the largest geothermal operator in the world, measured by <br>installed capacity. .............................................................................................................................<br>| 3379897 |
| A market capitalization equal to or exceeding $40 billion at a time when we have installed at least <br>five gigawatts of capacity. ................................................................................................................<br>| 3379897 |
| A market capitalization equal to or exceeding $80 billion at a time when we have installed at least <br>ten gigawatts of capacity. .................................................................................................................<br>| 3379897 |

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__________________

\*Market capitalization will be determined based on the average closing price of our common stock over any consecutive 90-trading-day

period following the last day of the lock-up period relating to this offering.

If the Company incurs a change in control (as defined in the Market Capitalization Option agreement):

• to the extent a Market Capitalization Milestone Condition has not been achieved, the Market Capitalization

Milestone Condition will be assessed based on our market capitalization in the change in control, as

determined by the CIC Price (as defined in the Market Capitalization Option agreement), and without

regard to the capacity-based performance condition of the Market Capitalization Milestone Condition. If

the Company's market capitalization falls between $20 billion and $40 billion or between $40 billion and

$80 billion, then a portion of the option subject to the greater of such conditions shall be earned, determined

by using straight-line interpolation between the market capitalization goals;

• to the extent a Market Capitalization Milestone Condition is achieved in accordance with the bullet above,

if the corresponding portion of the Market Capitalization Option is assumed in connection with a change in

control, the option shall be deemed to have achieved the applicable Market Capitalization Milestone

Condition as of the date of such change in control and the shares subject to the Market Capitalization

Option shall satisfy the service-based condition in accordance with the terms described above;

• to the extent a Market Capitalization Milestone Condition was achieved prior to the change in control and

the corresponding portion of the Market Capitalization Option is assumed, the Market Capitalization

Option will continue to satisfy the service-based condition in accordance with the terms described above;

and

• to the extent any portion of the Market Capitalization Option is not assumed in connection with such

change in control, the corresponding portion that has achieved a Market Capitalization Milestone Condition

shall become fully vested and exercisable as of the date of such change in control.

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If Mr. Latimer is terminated by us without cause, by Mr. Latimer for good reason, or due to Mr. Latimer's death

or disability:

• if a Market Capitalization Milestone Condition was satisfied prior to the termination date, the portion of the

Market Capitalization Option subject to such condition will become fully vested and exercisable as of the

date of such termination; and

• if a Market Capitalization Milestone Condition was not satisfied prior to the termination date, then the

portion of the Market Capitalization Option subject to such Market Capitalization Milestone Condition will

remain outstanding until the earlier of (i) the two-year anniversary of such termination, and (ii) (A) the fifth

anniversary of the grant date (with respect to the $20 billion Market Capitalization Milestone Condition) or

(B) the expiration date of the Market Capitalization Option. During this period, such portion of the option

will be eligible to vest upon the earlier of the achievement of the applicable milestone condition and a

change in control (in accordance with the terms described above), but the number of shares that vest and

become exercisable (if any) will be prorated based on the portion of the period prior to vesting during

which Mr. Latimer was employed.

*Policies and Practices Related to the Timing of Grants of Certain Equity-Based Awards* 

Prior to the completion of this offering, we have not had any material nonpublic information, and neither we,

our board nor our compensation committee has adopted any policy or otherwise considered any material nonpublic

information when granting stock options. Following the completion of this offering, we will consider the timing of

the disclosure of any material nonpublic information when granting stock options.

*2026 Incentive Award Plan* 

In connection with this offering, we adopted, and our stockholders approved, the 2026 Incentive Award Plan, or

the 2026 Plan, in order to facilitate the grant of equity and cash incentives to directors, employees (including our

named executive officers) and consultants of our Company and our subsidiaries, and to enable our Company and our

subsidiaries to obtain and retain services of these individuals, which is essential to our long-term success. For

additional information about the 2026 Plan, please see the section titled "—2026 Incentive Award Plan" below.

***Other Elements of Compensation and Compensation Policies***

*Retirement Plans*

We currently maintain the Fervo Energy 401(k) plan, or the 401(k) plan, which is a tax-qualified retirement

savings plan for our employees who satisfy certain eligibility requirements. Our named executive officers are

eligible to participate in the 401(k) plan on the same terms as other full-time employees. The Internal Revenue Code

allows eligible employees to defer a portion of their compensation, within prescribed limits, on a pre-tax basis

through contributions to the 401(k) plan. Currently, we match contributions made by participants in the 401(k) plan

up to 6% of each participating employee's eligible compensation, and these safe harbor matching contributions are

fully vested as of the date on which the contribution is made. We believe that providing a vehicle for tax-deferred

retirement savings through our 401(k) plan, and making matching contributions, adds to the overall desirability of

our executive compensation package and further incentivizes our employees, including our named executive

officers, in accordance with our compensation policies.

*Health and Welfare Benefits and Perquisites*

All of our full-time employees, including our named executive officers, are eligible to participate in our health

and welfare plans, including medical, dental and vision benefits; short-term and long-term disability insurance; life

and AD&D insurance; employee assistance plan; and a travel assistance program.

We believe the perquisites described above are necessary and appropriate to provide a competitive

compensation package to our named executive officers.

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Certain of our employees, including each of our named executive officers, are also eligible for executive

coaching services paid by the Company at a rate of $2,500 per month. While Mr. Latimer did not receive any

executive coaching services during 2025, Dr. Norbeck and Mr. Ulrey utilized these services. We believe the

executive coaching services help our named executive officers strengthen their leadership skill and more effectively

lead the Company.

**Outstanding Equity Awards at Fiscal Year-End** 

The following table summarizes the number of shares of common stock underlying outstanding stock options

held by each named executive officer as of December 31, 2025. Each stock option listed in the following table was

granted under the 2019 Plan and, following the completion of this offering, will cover shares of our Class A

common stock. In addition, following the completion of this offering, shares of Class A common stock received by

Mr. Latimer and Dr. Norbeck in connection with the exercise of their stock options may be exchanged for shares of

our Class B common stock.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Grant Date** | **Grant Date** | **Vesting**<br>**Commencement**<br>**Date**<br>| **Number of** <br>**Securities** <br>**Underlying** <br>**Unexercised** <br>**Options (#)** <br>**Exercisable**<br>| **Number of** <br>**Securities** <br>**Underlying** <br>**Unexercised** <br>**Options (#)** <br>**Unexercisable**<br>| **Option** <br>**Exercise**<br>**Price ($)**<br>| **Option Expiration**<br>**Date**<br>|
| Timothy Latimer ............... | July 14, 2023 | (1) | January 1, 2023 | 1750000 | 200000 | 0.94 | July 13, 2033 |
|  | December 29, <br>2025<br>| (2) | December 29, 2025 |  | 3324920 | 4.25 | December 28, 2035 |
| Jack Norbeck, Ph.D. ......... | July 14, 2023 | (1) | January 1, 2023 | 875000 | 100000 | 0.94 | July 13, 2033 |
|  | December 29, <br>2025<br>| (2) | December 29, 2025 |  | 500000 | 4.25 | December 28, 2035 |
| David Ulrey ...................... | June 28, 2021 |  | June 16, 2021 | 500000 |  | 0.29 | June 27, 2031 |
|  | November 29, <br>2022<br>| (2) | November 29, 2022 | 346875 | 103125 | 0.94 | November 28, 2032 |
|  | May 13, 2024 | (2) | May 1, 2024 | 197916 | 302084 | 0.98 | May 12, 2034 |
|  | December 29, <br>2025<br>| (3) | December 29, 2025 |  | 750000 | 4.25 | December 28, 2035 |

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_________________

(1)Each option vests and becomes exercisable subject to satisfaction of both a milestone-based vesting condition and a service-based

vesting condition. The milestone-based vesting condition was satisfied on October 13, 2025. The service-based vesting condition

vests over a 39-month period, subject to the grantee's continued service through the applicable vesting date, with the shares underlying

the option in 39 substantially equal installments on each monthly anniversary of the vesting commencement date.

(2)Each option vests and becomes exercisable over a four-year period, subject to the executive's continued service through the applicable

vesting date, as follows: (i) 25% of the shares underlying the option on the first annual anniversary of the vesting commencement date and

(ii) 75% of the shares underlying the option in 36 substantially equal installments on each monthly anniversary of the vesting

commencement date thereafter.

(3)This option vests and becomes exercisable over a four-year period, subject to the executive's continued service through the applicable

vesting date, as follows: (i) 25% of the shares underlying the option on the first annual anniversary of the vesting commencement date and

(ii) 75% of the shares underlying the option in 36 substantially equal installments on each monthly anniversary of the vesting

commencement date thereafter. In addition, the option will vest in full upon a termination of service by the Company without cause within

12 months following a change in control.

**Additional Narrative Disclosure Regarding Executive Compensation Matters**

***Executive Compensation Arrangements***

We have not entered into any written employment agreement with Mr. Latimer.

However, Mr. Latimer is party to an invention, non-disclosure and non-solicitation agreement, which includes

an indefinite company information non-disclosure covenant and an employee non-solicitation covenant that lasts

during employment and for one year thereafter.

Each of Dr. Norbeck and Mr. Ulrey is party to an offer letter with the Company that provides for at-will

employment that continues until terminated at any time by either party. Pursuant to their offer letters, Dr. Norbeck

and Mr. Ulrey is eligible to participate in the benefit plan and programs maintained by us for the benefit of our

employees. Their offer letters do not provide for severance payments on termination of employment.

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Dr. Norbeck and Mr. Ulrey also entered into the Company's standard form of invention and non-disclosure

agreement, which includes an indefinite company information non-disclosure covenant.

***Executive Severance Plan***

In connection with this offering, we adopted the Executive Severance Plan, which will provide for the payment

of certain cash severance and other benefits to participants, including each of our named executive officers, in the

event of a qualifying termination of employment with us.

Under the Executive Severance Plan, if the executive's employment is terminated by us without "cause" or by

the executive for "good reason" outside of a change in control period (described below), then the executive will be

eligible to receive the following payments and benefits:

• a cash payment equal to 100% (or 200% for Mr. Latimer) of the executive's then-current annual base salary

(disregarding any reduction which gives rise to "good reason");

• a cash payment equal to one times (or two times for Mr. Latimer) the executive's annual target bonus for

the annual bonus performance period in which the termination date occurs;

• a cash payment equal to the executive's earned but unpaid annual bonus for the annual bonus performance

period preceding the annual bonus performance period in which the termination date occurs;

• a cash payment equal to the executive's pro-rata target annual bonus for the annual bonus performance

period in which the termination date occurs;

• Company-paid COBRA premium payments for the executive and the executive's eligible dependents for up

to 12 months (or 24 months for Mr. Latimer);

• accelerated vesting and exercisability of the portion of the executive's time-vesting equity awards that

would have vested over the 12-month period following the termination date (assuming such time-vesting

equity awards vest in equal daily installments); and

• performance-vesting equity awards will remain outstanding and eligible to vest following the termination

date, based on actual performance and pro-rated to reflect the portion of the performance period the

executive was employed.

The change in control period generally starts 90 days prior to the signing or announcement of a transaction that,

if consummated, would be a "change in control" and ends on the two-year anniversary of a change in control. If the

executive's employment is terminated by us without "cause" or by the executive for good "reason" during the

change in control period, the executive will be eligible to receive the following payments and benefits:

• a cash payment equal to 200% (or 300% for Mr. Latimer) of the executive's then-current annual base

salary;

• a cash payment equal to two times (or three times for Mr. Latimer) the executive's annual target bonus for

the annual bonus performance period in which the termination date occurs;

• a cash payment equal to the executive's earned but unpaid annual bonus for the annual bonus performance

period preceding the annual bonus performance period in which the termination date occurs;

• a cash payment equal to the executive's pro-rata target annual bonus for the annual bonus performance

period in which the termination date occurs;

• Company-paid COBRA premium payments for the executive and the executive's eligible dependents for up

to 24 months (or 36 months for Mr. Latimer);

• full vesting and, as applicable, exercisability of the executive's then-unvested time-vesting equity awards;

and

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• vesting of the executive's performance-vesting equity awards, at the greater of target and actual level of

performance (unless otherwise provided in the applicable award agreement).

The cash payments generally will be made in a lump sum within 60 days following the termination date (or, if

later, upon a change in control). An executive's right to receive the severance payments and benefits described

above is subject to the executive's execution and, as applicable, non-revocation of a general release of claims in our

favor, and the executive's continued compliance with any applicable restrictive covenants.

In addition, in the event that any payment or benefit under the Executive Severance Plan, together with any

other amounts paid to the executive, would subject the executive to an excise tax under Section 4999 of the Internal

Revenue Code, then such payments or benefits will be reduced to the extent that such reduction would produce a

better net after-tax result for the executive.

***No Tax Gross-Ups***

We do not make gross-up payments to cover our named executive officers' personal income taxes that may

pertain to any of the compensation or perquisites we pay or provide.

***Anti-Hedging Policies***

We expect to adopt a policy that will prohibit our employees, including all executive officers, and members of

our board of directors from engaging in transactions that are considered to hedge or offset the financial impact of

holding our Class A common stock.

***Clawback Policy***

In connection with this offering, our board of directors adopted a compensation recovery policy that complies

with the listing standards of NASDAQ, as required by the Dodd-Frank Act.

**Equity Incentive Award Plans**

The following summarizes the material terms of the 2019 Plan and the 2026 Plan. In addition, the following

summarizes the material terms of the ESPP, which is a tax-qualified employee stock purchase plan in which our

named executive officers will be eligible to participate following the completion of this offering.

***2019 Stock Incentive Plan***

Prior to the completion of this offering, we maintained the 2019 Plan, which was most recently amended in

March 2026. The material terms of the 2019 Plan are summarized below. In addition, in connection with this

offering, the 2019 Plan and each stock option granted under the 2019 Plan will be reclassified to cover shares of our

Class A common stock; however, shares of Class A common stock received by Mr. Latimer and Dr. Norbeck in

connection with the exercise of their stock options may be exchanged for shares of our Class B common stock.

*Termination* 

In connection with this offering, the 2019 Plan terminated and we will not make any further awards under the

2019 Plan. However, any outstanding awards granted under the 2019 Plan will remain outstanding, subject to the

terms of the 2019 Plan and applicable award agreements. Shares of our common stock subject to awards granted

under the 2019 Plan that expire unexercised or are cancelled, terminated, or forfeited in any manner without

issuance of shares thereunder following the effective date of the 2026 Plan will become available for issuance under

the 2026 Plan.

*Eligibility and Administration* 

Our employees, consultants and non-employee directors are eligible to be granted awards of ISOs, NSOs, stock

appreciation rights, restricted stock, restricted stock units and other stock-based awards under the 2019 Plan, subject

to the limitations described therein. Our board of directors administers the 2019 Plan as its plan administrator and,

subject to the provisions thereof, has the authority to take all actions and make all determinations contemplated by

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the 2019 Plan and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the 2019

Plan as it deems advisable.

*Limitations on Awards and Shares Available* 

An aggregate of 47,472,828 shares of our common stock have been authorized for issuance under the 2019

Plan. The shares of our common stock issued under the 2019 Plan may consist in whole or in part of authorized but

unissued shares or treasury shares. In the event that an outstanding award expires, is terminated, is surrendered, is

cancelled, or is forfeited for any reason, or if shares subject to an award are withheld to satisfy exercise price or tax

withholding obligations, then the shares allocable to the unexercised or otherwise expired, terminated, surrendered,

cancelled, or forfeited portion of such award, or the shares withheld to satisfy the exercise or purchase price or tax

withholding obligation, are currently added back to the common stock available for issuance under the 2019 Plan.

*Awards* 

The 2019 Plan provides for the grant of ISOs, NSOs, stock appreciation rights, restricted stock, restricted stock

units and other stock-based awards. All outstanding awards under the 2019 Plan are set forth in award agreements,

which detail the terms and conditions of the awards, including any applicable vesting and payment terms and post-

termination exercise limitations. A brief description of each award type follows:

• *Stock Options*. Stock options provide for the purchase of shares of our common stock in the future at an

exercise price set on the grant date. ISOs granted under the 2019 Plan, in contrast to NSOs, are subject to

and required to be construed in accordance with Section 422 of the Code and may provide tax deferral

beyond exercise and favorable capital gains tax treatment to their holders if certain holding period and other

requirements of the Code are satisfied. The exercise price of a stock option may not be less than 100% of

the fair market value of the underlying share on the grant date, except with respect to certain substitute

awards granted in connection with a corporate transaction. The term of a stock option may not be longer

than ten years.

• *Stock Appreciation Rights*. Stock appreciation rights provide for payments to their holders based upon

increases in the price of our common stock over a set measurement price. The measurement price of any

stock appreciation right granted under the 2019 Plan must be at least 100% of the fair market value of the

underlying share on the grant date. Stock appreciation rights under the 2019 Plan may be settled in cash or

shares of our common stock, or in a combination of both, as determined by the plan administrator. The

term of a stock appreciation right may not be longer than ten years.

• *Restricted Stock and RSUs*. Restricted stock is an award of nontransferable shares of common stock that are

subject to certain vesting conditions and other restrictions. RSUs are contractual promises to deliver shares

of common stock in the future, which may also remain forfeitable unless and until specified conditions are

met and may be accompanied by the right to receive the equivalent value of dividends paid on shares of

common stock prior to the delivery of the underlying shares (i.e., dividend equivalent rights). RSUs under

the 2019 Plan may be settled in cash or shares of our common stock, or in a combination of both, as

determined by the administrator. The plan administrator may provide that settlement of RSUs will be

deferred on a mandatory basis or at the election of the participant.

• *Other Stock-Based Awards*. Other stock-based awards are awards of fully vested shares of our common

stock or other awards valued wholly or partially by referring to, or otherwise based on, shares of our

common stock or other property. Other stock-based awards may be granted to participants and may also be

available as a payment form in the settlement of other awards, as standalone payments and as payment in

lieu of compensation to which a participant is otherwise entitled.

*Certain Transactions* 

In the event of certain changes in our capitalization, the plan administrator may make equitable adjustments to

the 2019 Plan and outstanding awards thereunder. In the event of our merger or consolidation with another entity,

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the transfer or exchange of all of our common stock for cash, securities or other property, or our liquidation or

dissolution, the plan administrator has the discretion to provide:

(1)that awards be assumed by, or substituted with substantially equivalent awards of, the acquiring or

succeeding corporation (or an affiliate thereof);

(2)upon written notice to the applicable holders, cancel unexercised and/or unvested awards immediately prior

to the transaction unless exercised within a specified period;

(3)for awards to vest and, as applicable, become exercisable, in whole or in part, prior to or upon the

transaction;

(4)if the transaction provides a cash payment to stockholders, payments to each award holder, for the vested

portion of their awards, an amount equal to the excess of the cash price per share over any applicable

exercise, measurement, or purchase price (and applicable withholdings), in exchange for termination of the

awards;

(5)in a liquidation or dissolution, for the conversion of awards into the right to receive liquidation proceeds

(net of any applicable exercise, measurement, or purchase price and withholdings); or

(6)for any combination of the foregoing.

*Repricing*

Our board of directors may, without approval of the stockholders, reduce the exercise price of any outstanding

award or cancel any outstanding award in exchange for other awards with an exercise price per share that is less than

the exercise price per share of the original award.

***2026 Incentive Award Plan***

In connection with this offering, adopted, and our stockholders approved, the 2026 Plan, under which we may

grant equity and cash incentive awards to eligible service providers in order to attract, motivate and retain the talent

for which we compete. The material terms of the 2026 Plan are summarized below.

*Eligibility and Administration* 

Our employees, consultants and directors and employees and consultants of our subsidiaries are eligible to

receive awards under the 2026 Plan. Following the completion of this offering, the 2026 Plan will be administered

by our board of directors with respect to awards to non-employee directors and by our compensation committee with

respect to other participants, each of which may delegate its duties and responsibilities to committees of our

directors and/or officers (referred to collectively as the plan administrator), subject to the limitations imposed under

the 2026 Plan, Section 16 of the Exchange Act, stock exchange rules and other applicable laws. The plan

administrator has the authority to take all actions and make all determinations under the 2026 Plan, to interpret the

2026 Plan and award agreements and to adopt, amend and repeal rules for the administration of the 2026 Plan as it

deems advisable. The plan administrator also has the authority to determine which eligible service providers receive

awards, grant awards and set the terms and conditions of all awards under the 2026 Plan, including any vesting and

vesting acceleration provisions, subject to the conditions and limitations in the 2026 Plan.

*Limitation on Awards and Shares Available* 

The initial aggregate number of shares of our common stock that will be available for issuance under the 2026

Plan will be equal to 10% of the number of shares of our Class A and Class B common stock outstanding as of

immediately following the completion of this offering (which is expected to be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares, assuming an initial

public offering price of $&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the estimated price range set forth on the cover page

of this prospectus). In addition, the number of shares of our common stock available for issuance under the 2026

Plan will be subject to an annual increase on the first day of each calendar year beginning on and including January

1, 2027 and ending on and including January 1, 2036, equal to the lesser of (A) 5% of the aggregate number of

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shares of our Class A and Class B common stock outstanding on the final day of the immediately preceding calendar

year and (B) such smaller number of shares as is determined by our board of directors. The maximum number of

shares (either Class A or Class B common stock) that may be issued pursuant to the exercise of incentive stock

options, or ISOs, granted under the 2026 Plan, will be 500,000,000. Shares issued pursuant to the 2026 Plan may be

shares of Class A common stock or Class B common stock, as determined by the plan administrator, and may

consist, in whole or in part, of authorized and unissued common stock, treasury common stock or common stock

purchased on the open market.

If an award under the 2026 Plan expires, lapses or is terminated, exchanged for or settled in cash, any shares

subject to such award (or portion thereof) may, to the extent of such expiration, lapse, termination or cash

settlement, be used again for new grants under the 2026 Plan. Shares tendered or withheld to satisfy the exercise

price or tax withholding obligation for any award will not reduce the shares available for grant under the 2026 Plan.

Further, the payment of dividend equivalents in cash in conjunction with any awards under the 2026 Plan will not

reduce the shares available for grant under the 2026 Plan. However, the following shares may not be used again for

grant under the 2026 Plan: (i) shares subject to stock appreciation rights, or SARs, that are not issued in connection

with the stock settlement of the SAR on exercise and (ii) shares purchased on the open market with the cash

proceeds from the exercise of options.

Awards granted under the 2026 Plan upon the assumption of, or in substitution for, awards authorized or

outstanding under a qualifying equity plan maintained by an entity with which we enter into a merger or similar

corporate transaction will not reduce the shares available for grant under the 2026 Plan but will count against the

maximum number of shares that may be issued upon the exercise of ISOs.

The 2026 Plan provides that, commencing with calendar year 2027, the sum of any cash compensation and the

aggregate grant date fair value (determined as of the date of the grant under Financial Accounting Standards Board

Accounting Standards Codification Topic 718, or any successor thereto) of all awards granted to a non-employee

director as compensation for services as a non-employee director during any fiscal year, or director limit, generally

may not exceed an amount equal to $750,000 (increased to $1,000,000 in the calendar year of a non-employee

director's initial service as a non-employee director or any calendar year during which a non-employee director

serves as chair of our board of directors or lead independent director), which limits shall not apply to the

compensation for any non-employee director who serves in any capacity in addition to that of a non-employee

director for which he or she receives additional compensation or any compensation paid prior to the calendar year

following the calendar year in which the 2026 Plan becomes effective.

*Awards* 

The 2026 Plan provides for the grant of stock options, including ISOs and nonqualified stock options, or NSOs,

SARs, restricted stock, dividend equivalents, restricted stock units, or RSUs, and other stock or cash-based awards.

Certain awards under the 2026 Plan may constitute or provide for payment of "nonqualified deferred compensation"

under Section 409A of the Code, which may impose additional requirements on the terms and conditions of such

awards. All awards under the 2026 Plan will be evidenced by award agreements, which will detail the terms and

conditions of the awards, including any applicable vesting and payment terms and post-termination exercise

limitations. Awards other than cash awards generally will be settled in shares of our common stock, but the

applicable award agreement may provide for cash settlement of any award. A brief description of each award type

follows.

• *Stock Options and SARs*. Stock options provide for the purchase of shares of our common stock in the

future at an exercise price set on the grant date. ISOs, in contrast to NSOs, may provide tax deferral beyond

exercise and favorable capital gains tax treatment to their holders if certain holding period and other

requirements of the Code are satisfied. SARs entitle their holder, upon exercise, to receive from us an

amount equal to the appreciation of the shares subject to the award between the grant date and the exercise

date. Unless otherwise determined by our board, the exercise price of a stock option or SAR may not be

less than 100% of the fair market value of the underlying share on the grant date (or 110% in the case of

ISOs granted to certain significant stockholders), except with respect to certain substitute awards granted in

connection with a corporate transaction. The term of a stock option or SAR may not be longer than ten

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years (or five years in the case of ISOs granted to certain significant stockholders). Conditions applicable

to stock options and/or SARs may be based on continuing service, the attainment of performance goals and/

or such other conditions as the plan administrator may determine.

• *Restricted Stock and RSUs*. Restricted stock is an award of nontransferable shares of our common stock

that are subject to certain vesting conditions and other restrictions. RSUs are contractual promises to deliver

shares of our common stock in the future, which may also remain forfeitable unless and until specified

conditions are met and may be accompanied by the right to receive the equivalent value of dividends paid

on shares of our common stock prior to the delivery of the underlying shares (i.e., dividend equivalent

rights). The plan administrator may provide that the delivery of the shares underlying RSUs will be

deferred on a mandatory basis or at the election of the participant. The terms and conditions applicable to

RSUs will be determined by the plan administrator, subject to the conditions and limitations contained in

the 2026 Plan. Conditions applicable to restricted stock and RSUs may be based on continuing service, the

attainment of performance goals and/or such other conditions as the plan administrator may determine.

• *Other Stock or Cash-Based Awards*. Other stock or cash-based awards are awards of cash, fully vested

shares of our common stock and other awards valued wholly or partially by referring to, or otherwise based

on, shares of our common stock. Other stock or cash-based awards may be granted to participants and may

also be available as a payment form in the settlement of other awards, as standalone payments and as

payment in lieu of compensation to which a participant is otherwise entitled.

• *Dividend Equivalents*. Dividend equivalents represent the right to receive the equivalent value of dividends

paid on shares of our common stock and may be granted alone or in tandem with awards other than stock

options or SARs. Dividend equivalents are credited as of the dividend record dates during the period

between the date an award is granted and the date such award vests, is exercised, is distributed or expires,

as determined by the plan administrator. Dividend equivalents payable with respect to an award prior to the

vesting of such award instead will be paid out to the participant only to the extent that the vesting

conditions are subsequently satisfied and the award vests.

*Certain Transactions* 

The plan administrator has broad discretion to take action under the 2026 Plan, as well as make adjustments to

the terms and conditions of existing and future awards, to prevent the dilution or enlargement of intended benefits

and facilitate necessary or desirable changes in the event of certain transactions and events affecting our common

stock, such as stock dividends, stock splits, mergers, acquisitions, consolidations and other corporate transactions. In

addition, in the event of certain non-reciprocal transactions with our stockholders known as "equity restructurings,"

the plan administrator will make equitable adjustments to the 2026 Plan and outstanding awards. In the event of a

change in control (as defined in the 2026 Plan), to the extent that the surviving entity declines to continue, convert,

assume or replace outstanding awards, then all such awards will become fully vested and exercisable in connection

with the transaction. Upon or in anticipation of a change in control, the plan administrator may cause any

outstanding awards to terminate at a specified time in the future and give the participant the right to exercise such

awards during a period of time determined by the plan administrator in its sole discretion. Individual award

agreements may provide for additional accelerated vesting and payment provisions.

*Repricing* 

Our board of directors may, without approval of the stockholders, reduce the exercise price of any stock option

or SAR, or cancel any stock option or SAR in exchange for cash, other awards or stock options or SARs with an

exercise price per share that is less than the exercise price per share of the original stock options or SARs.

*Plan Amendment and Termination* 

Our board of directors may amend or terminate the 2026 Plan at any time; however, no amendment, other than

an amendment that increases the number of shares available under the 2026 Plan, may materially and adversely

affect an award outstanding under the 2026 Plan without the consent of the affected participant, and stockholder

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approval will be obtained for any amendment to the extent necessary to comply with applicable laws. The 2026 Plan

will remain in effect until terminated. No awards may be granted under the 2026 Plan after its termination.

*Foreign Participants, Claw-back Provisions, Transferability and Participant Payments* 

The plan administrator may modify award terms, establish subplans and/or adjust other terms and conditions of

awards, subject to the share limits described above, in order to facilitate grants of awards subject to the laws and/or

stock exchange rules of countries outside of the United States. All awards will be subject to any Company clawback

policy as set forth in such clawback policy or the applicable award agreement. Awards under the 2026 Plan are

generally non-transferable, except by will or the laws of descent and distribution, or, subject to the plan

administrator's consent, pursuant to a domestic relations order, and are generally exercisable only by the participant.

With regard to tax withholding, exercise price and purchase price obligations arising in connection with awards

under the 2026 Plan, the plan administrator may, in its discretion, accept cash or check, shares of our common stock

that meet specified conditions, a "market sell order" or such other consideration as it deems suitable.

***Employee Stock Purchase Plan***

In connection with this offering, we adopted, and our stockholders approved, the Employee Stock Purchase

Plan, or the ESPP. The material terms of the ESPP are summarized below.

*Shares Available; Administration* 

The initial share reserve under the ESPP will equal 2% of the number of shares of our Class A and Class B

common stock outstanding as of immediately following the completion of this offering (which is expected to be

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares, assuming an initial public offering price of $&nbsp;&nbsp;&nbsp;&nbsp; per share, which is the midpoint of the price range set

forth on the cover page of this prospectus).

In addition, the number of shares available for issuance under the ESPP will be annually increased by an annual

increase on the first day of each calendar year beginning January 1, 2027 and ending on and including January 1,

2036, equal to the lesser of (i) 1% of the aggregate number of shares of our Class A and Class B common stock

outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is

determined by our board of directors. In no event will more than 100,000,000 shares of our Class A common stock

be available for issuance under the ESPP.

Our board of directors or a committee designated by our board of directors have authority to interpret the terms

of the ESPP and determine eligibility of participants. The compensation committee is the administrator of the ESPP.

*Eligibility* 

The plan administrator may designate certain of our subsidiaries as participating "designated subsidiaries" in the

ESPP and may change these designations from time to time. Employees of our Company and our designated

subsidiaries are eligible to participate in the ESPP if they meet the eligibility requirements under the ESPP

established from time to time by the plan administrator. However, an employee may not be granted rights to

purchase stock under the ESPP if such employee, immediately after the grant, would own (directly or through

attribution) stock possessing 5% or more of the total combined voting power or value of all classes of our common

or other class of stock.

If the grant of a purchase right under the ESPP to any eligible employee who is a citizen or resident of a foreign

jurisdiction would be prohibited under the laws of such foreign jurisdiction or the grant of a purchase right to such

employee in compliance with the laws of such foreign jurisdiction would cause the ESPP to violate the requirements

of Section 423 of the Code, as determined by the plan administrator in its sole discretion, such employee will not be

permitted to participate in the ESPP.

Eligible employees become participants in the ESPP by enrolling and authorizing payroll deductions by the

deadline established by the plan administrator prior to the relevant offering date. Directors who are not employees,

as well as consultants, are not eligible to participate. Employees who choose to not participate, or are not eligible to

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participate at the start of an offering period but who become eligible thereafter, may enroll in any subsequent

offering period.

*Participation in an Offering* 

We intend for the ESPP to qualify under Section 423 of the Code and stock will be offered under the ESPP

during offering periods (which offering periods may overlap). The length of offering periods under the ESPP will be

determined by the plan administrator and may be up to 27 months long. Employee payroll deductions will be used to

purchase shares on each purchase date during an offering period. The number of purchase periods within, and

purchase dates during, each offering period will be established by the plan administrator. Offering periods under the

ESPP will commence when determined by the plan administrator. The plan administrator may, in its discretion,

modify the terms of future offering periods.

The ESPP will permit participants to purchase our Class A common stock through payroll deductions of up to

15% of their eligible compensation, unless otherwise determined by the plan administrator, which will include a

participant's gross base salary for services to us, excluding periodic bonuses, one-time bonuses, sales commissions,

overtime payments, expense reimbursements, fringe benefits, income from equity awards and other special

payments. The plan administrator will establish a maximum number of shares that may be purchased by a participant

during any offering period or purchase period, which, in the absence of a contrary designation, will be 10,000 shares

for an offering period and/or a purchase period. In addition, no employee will be permitted to accrue the right to

purchase stock under the ESPP at a rate in excess of $25,000 worth of shares during any calendar year during which

such a purchase right is outstanding (based on the fair market value per share of our Class A common stock as of the

first day of the offering period).

On the first trading day of each offering period, each participant automatically will be granted an option to

purchase shares of our Class A common stock. The option will be exercised on the applicable purchase date(s)

during the offering period, to the extent of the payroll deductions accumulated during the applicable purchase

period. The purchase price of the shares, in the absence of a contrary determination by the plan administrator, will be

85% of the lower of the fair market value of our Class A common stock on the first trading day of the offering

period or on the applicable purchase date, which will be the final trading day of the applicable purchase period.

Participants may voluntarily end their participation in the ESPP at any time at least two weeks prior to the end

of the applicable offering period (or such longer or shorter period specified by the plan administrator), and will be

paid their accrued payroll deductions that have not yet been used to purchase shares of common stock. Participation

ends automatically upon a participant's termination of employment.

*Transferability* 

A participant may not transfer rights granted under the ESPP other than by will, the laws of descent and

distribution or as otherwise provided in the ESPP.

*Certain Transactions* 

In the event of certain transactions or events affecting our common stock, such as any stock dividend or other

distribution, change in control, reorganization, merger, consolidation or other corporate transaction, the plan

administrator will make equitable adjustments to the ESPP and outstanding rights. In addition, in the event of the

foregoing transactions or events or certain significant transactions, including a change in control, the plan

administrator may provide for (i) either the replacement of outstanding rights with other rights or property or

termination of outstanding rights in exchange for cash, (ii) the assumption or substitution of outstanding rights by

the successor or survivor corporation or parent or subsidiary thereof, (iii) the adjustment in the number and type of

shares of stock subject to outstanding rights, (iv) the use of participants' accumulated payroll deductions to purchase

stock on a new purchase date prior to the next scheduled purchase date and termination of any rights under ongoing

offering periods or (v) the termination of all outstanding rights. Under the ESPP, a change in control has the same

definition as given to such term in the 2026 Plan.

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*Plan Amendment; Termination* 

The plan administrator may amend, suspend or terminate the ESPP at any time. However, stockholder approval

of any amendment to the ESPP must be obtained for any amendment which increases the aggregate number or

changes the type of shares that may be sold pursuant to rights under the ESPP, amends the ESPP in any manner that

would be considered the adoption of a new plan within the meaning of Treasury regulation Section 1.423-2(c)(4), or

changes the ESPP in any manner that would cause the ESPP to no longer be an employee stock purchase plan within

the meaning of Section 423(b) of the Code.

**Director Compensation**

During the fiscal year ended December 31, 2025, our non-employee directors were Anne Cleary, Tanuj Dutta,

Christina Karapataki, Rachel Slaybaugh, Jane Woodward and Ion Yadigaroglu.

***2025 Director Compensation Table***

The following table sets forth information for 2025 regarding the compensation awarded to, earned by or paid to

the non-employee directors who served on our board of directors during fiscal year 2025. None of our non-

employee directors received cash compensation in 2025.

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| | | |
|:---|:---|:---|
| **Name** | **Option Awards** <br>**($)**<sup>(1)</sup><br>| **Total ($)** |
| Anne Cleary .............................................................................................................. |  |  |
| Tanuj Dutta² ............................................................................................................. |  |  |
| Christina Karapataki<sup>(</sup>²<sup>)</sup> ............................................................................................. |  |  |
| Rachel Slaybaugh<sup>(</sup>²<sup>)</sup> ................................................................................................. |  |  |
| Jane Woodward<sup>(</sup>²<sup>)</sup> .................................................................................................... | 47520 | 47520 |
| Ion Yadigaroglu ....................................................................................................... |  |  |

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__________________

(1)Amounts reflect the aggregate grant date fair value of stock options granted during the year ended December 31, 2025 computed in

accordance with FASB ASC Topic 718, Compensation — Stock Compensation and do not necessarily correspond to the actual

economic value that may be received by the directors from these awards. We provide information regarding the assumptions used to

calculate the value of all stock options made to non-employee directors who served on our board of directors in Note 10 – Stock Based

Compensation to the consolidated financial statements included in this prospectus.

(2)Mr. Dutta and Mmes. Karapataki, Slaybaugh and Woodward will each resign from our board of directors effective upon and subject to the

completion of this offering.

The following table summarizes the number of shares of Class A common stock subject to outstanding stock

options held by each non-employee director who served on our board of directors during fiscal year 2025, as of

December 31, 2025.

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| | |
|:---|:---|
| **Name** | **Options** <br>**Outstanding at** <br>**Fiscal Year End**<br>|
| Anne Cleary ......................................................................................................................................... | 200000 |
| Tanuj Dutta .......................................................................................................................................... |  |
| Christina Karapataki ............................................................................................................................ |  |
| Rachel Slaybaugh ................................................................................................................................ |  |
| Jane Woodward ................................................................................................................................... | 19250 |
| Ion Yadigaroglu ................................................................................................................................... |  |

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***Non-Employee Director Compensation Program***

In connection with this offering, we adopted, and our stockholders approved, a compensation program (the

"Director Compensation Program") for our non-employee directors (each, an "Eligible Director"). The Director

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Compensation Program will provide for annual cash retainer fees and long-term equity awards. The material terms

of the Director Compensation Program are described below.

The Director Compensation Program consists of the following components:

*Cash Compensation:*

• Annual Retainer: $77,500

• Annual Committee Chair Retainer:

• Audit and Risk: $20,000

• Compensation: $15,000

• Nominating and Corporate Governance: $15,000

• Lead Independent Director: $25,000

The annual cash retainers will be paid in quarterly installments in arrears. Annual cash retainers will be pro-

rated for any partial calendar quarter of service.

*Equity Compensation:*

• 2026 Awards: Our board intends to approve the grant of RSU awards pursuant to the 2026 Plan to our non-

employee directors, which grants will become effective in connection with the completion of this offering

(the "2026 Awards"). The dollar-denominated value of each award will be $250,000 and the aggregate

dollar-denominated value of these awards will be $1,500,000. The aggregate number of shares of our Class

A common stock that will be subject to the 2026 Awards will be determined based on the initial public

offering price per share of our common stock in this offering.

The 2026 Awards will vest in full on the date of the annual meeting of stockholders to be held in 2027, or, if

earlier, the first anniversary of the completion of this offering, subject to continued service through the applicable

vesting date.

• Initial Award: An Eligible Director who is initially elected or appointed to serve on our board of directors

following the completion of this offering automatically shall be granted, on the date of such Eligible

Director's appointment or election to our board of directors, an RSU award with an aggregate value of

$125,000, prorated based on the number of days from the immediately preceding date of an annual meeting

of stockholders (or, if none, the completion of this offering). The number of RSUs subject to the award will

be determined by dividing the value of the award by the price per share of our Class A common stock on

the applicable grant date.

• Annual Award: An Eligible Director who is serving on our board of directors as of the date of an annual

meeting of stockholders (beginning with calendar year 2027) automatically shall be granted, on the date of

such annual meeting, an RSU award with an aggregate value of $125,000. The number of RSUs subject to

the award will be determined by dividing the value of the award by the price per share of our Class A

common stock on the applicable grant date.

Each Initial Award and Annual Award will vest in full on the earlier to occur of the first anniversary of the grant

date and the date of the next annual meeting following the grant date, subject to continued service.

In addition, each equity award granted to an Eligible Director under the Director Compensation Program will

vest in full immediately prior to the occurrence of a "change in control" (as defined in the 2026 Plan). Compensation

under the Director Compensation Program will be subject to the annual limits on non-employee director

compensation set forth in the 2026 Plan.

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**PRINCIPAL STOCKHOLDERS**

The following table sets forth information with respect to the beneficial ownership of our voting securities as

of , 2026, and as adjusted to reflect the Preferred Stock Conversion, the Founder Share Exchange, the

Reclassification and the filing and effectiveness of our Amended Charter and adoption of our Amended Bylaws

upon the closing of this offering, in each case as if such event had occurred on , 2026, and to give effect to this

offering, for:

• each person or group of affiliated persons known by us to beneficially own more than 5% of our Class A

common stock or Class B common stock;

• each of our named executive officers, directors and director nominees; and

• all of our executive officers, directors and director nominees as a group.

The number of shares beneficially owned by each stockholder as described in this prospectus is determined

under rules issued by the SEC. Under these rules, beneficial ownership includes any shares as to which the

individual or entity has sole or shared voting power or investment power. In computing the number of shares

beneficially owned by an individual or entity and the percentage ownership of that person, shares of common stock

subject to options, warrants or other rights held by such person that are currently exercisable or will become

exercisable within 60 days of are considered outstanding, although these shares are not considered outstanding

for purposes of computing the percentage ownership of any other person. The applicable percentage ownership after

this offering is based on shares of our Class A common stock and shares of our Class B common stock

outstanding immediately following the completion of this offering, assuming that the underwriters do not exercise

their option to purchase additional shares of Class A common stock and assuming the issuance of up to shares of

Class A common stock at the closing of this offering. Unless otherwise indicated, the address of all listed

stockholders is 811 Main Street, Suite 1700, Houston, TX 77002.

Each of the stockholders listed below has sole voting and investment power with respect to the shares

beneficially owned by such stockholder unless noted otherwise, subject to community property laws where

applicable.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A common stock** | **Class A common stock** | **Class A common stock** | **Class A common stock** | **Class B common stock** | **Class B common stock** | **Class B common stock** | **Class B common stock** | | |
|  | **Before Offering** | **Before Offering** | **After Offering** | **After Offering** | **Before Offering** | **Before Offering** | **After Offering** | **After Offering** | <br>**Before Offering** | <br>**After Giving Effect to the Offering** |
|  | **Shares** | **Percent** | **Shares** | **Percent** | **Shares** | **Percent** | **Shares** | **Percent** | **Percentage of total voting power** <sup>(1)</sup> | **Percentage of total voting power** <sup>(1)</sup> |
| **5% Holders** ...................... |  |  |  |  |  |  |  |  |  |  |
| Devon Energy <br>Corporation<sup>(2)</sup> ................<br>|  |  |  |  |  |  |  |  |  |  |
| Capricorn Investment <br>Group<sup>(3)</sup> .........................<br>|  |  |  |  |  |  |  |  |  |  |
| DCVC<sup>(4)</sup> ............................. |  |  |  |  |  |  |  |  |  |  |
| Breakthrough Energy <br>Ventures<sup>(5)</sup> .....................<br>|  |  |  |  |  |  |  |  |  |  |
| Centaurus Capital LP<sup>(6)</sup> ...... |  |  |  |  |  |  |  |  |  |  |
| **NEOs & Directors** ........... |  |  |  |  |  |  |  |  |  |  |
| Anne Cleary<sup>(7)</sup> .................... |  |  |  |  |  |  |  |  |  |  |
| Sarah Jewett<sup>(8)</sup> .................... |  |  |  |  |  |  |  |  |  |  |
| Robert Keehan ................... |  |  |  |  |  |  |  |  |  |  |
| Tim Latimer<sup>(9)</sup> .................... |  |  |  |  |  |  |  |  |  |  |
| Trey Lowe .......................... |  |  |  |  |  |  |  |  |  |  |
| Jack Norbeck<sup>(10)</sup> ................. |  |  |  |  |  |  |  |  |  |  |
| Dawn Owens<sup>(11)</sup> ................. |  |  |  |  |  |  |  |  |  |  |
| Gustavo Torres<sup>(12)</sup> .............. |  |  |  |  |  |  |  |  |  |  |
| Jessica Uhl ......................... |  |  |  |  |  |  |  |  |  |  |
| David Ulrey<sup>(13)</sup> ................... |  |  |  |  |  |  |  |  |  |  |
| Margaret Whitman ............. |  |  |  |  |  |  |  |  |  |  |
| Quinn Woodard Jr.<sup>(14)</sup> ........ |  |  |  |  |  |  |  |  |  |  |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A common stock** | **Class A common stock** | **Class A common stock** | **Class A common stock** | **Class B common stock** | **Class B common stock** | **Class B common stock** | **Class B common stock** | | |
|  | **Before Offering** | **Before Offering** | **After Offering** | **After Offering** | **Before Offering** | **Before Offering** | **After Offering** | **After Offering** | <br>**Before Offering** | <br>**After Giving Effect to the Offering** |
|  | **Shares** | **Percent** | **Shares** | **Percent** | **Shares** | **Percent** | **Shares** | **Percent** | **Percentage of total voting power** <sup>(1)</sup> | **Percentage of total voting power** <sup>(1)</sup> |
| Ion Yadigaroglu<sup>(3)</sup> .............. |  |  |  |  |  |  |  |  |  |  |
| **All executive officers,** <br>**directors and director** <br>**nominees as a group** <br>**(14 individuals)** ..........<br>|  |  |  |  |  |  |  |  |  |  |

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______________

\*\* Represents beneficial ownership of less than 1.0%.

(1) Represents the voting power with respect to all shares of our Class A common stock and Class B common stock, voting together as a single

class, except under limited circumstances. Each share of our Class A common stock is entitled to one vote per share. Each share of our

Class B common stock is entitled to votes per share. For more information, see "Description of Capital Stock."

(2) Represents shares of Class A common stock held by Devon Technology Ventures Holdings, L.L.C. ("Devon Technology"). As the indirect

owner of 100% of the outstanding membership interests in Devon Technology, Devon Energy Corporation may be deemed to beneficially

own all of the shares held by Devon Technology. Devon Energy Corporation is a publicly traded company listed on the New York Stock

Exchange. The address for each of the foregoing entities is 333 West Sheridan Avenue, Oklahoma City, Oklahoma 73102.

(3) Consists of (i) shares of Class A common stock held by Technology Impact Fund, LP, (ii) shares of Class A common stock held by

Technology Impact Growth Fund, II, L.P. and (iii) shares of Class A common stock held by TIGF II Direct Strategies LLC – Series 5.

TIF Partners, LLC is the general partner of Technology Impact Fund, LP and TIGF Partners II, LLC is the general partner of Technology

Impact Growth Fund, II, L.P. and the manager of TIGF II Direct Strategies LLC – Series 5. Ion Yadigaroglu and Dipender Saluja, as

managers of TIF Partners, LLC and TIGF Partners II, LLC, share the power to vote and dispose of the shares held by Technology Impact

Fund, LP, Technology Impact Growth Fund, II, L.P. and TIGF II Direct Strategies LLC – Series 5. The address for each of the foregoing

entities is 250 University Avenue, Suite 300, Palo Alto, CA 94301.

(4) Consists of (i) shares of Class A common stock held by DCVC Climate Select, L.P., ("DCVC Climate") and (ii) shares of Class A

common stock held by DCVC VI, L.P., ("DCVC VI"). DCVC Climate Select GP, LLC ("DCVC Climate GP") is the general partner of

DCVC Climate, and DCVC VI GP, LLC ("DCVC VI GP") is the general partner of DCVC VI. Zachary Bogue and Matthew Ocko are the

managing members of each of DCVC Climate GP and DCVC VI GP. Zachary Bogue and Matthew Ocko exercise voting and dispositive

power over the shares held by DCVC Climate and DCVC VI. The address for each of the foregoing entities is 270 University Avenue, Palo

Alto, California 94301.

(5) Consists of (i) shares of Class A common stock held by Breakthrough Energy Ventures, LLC and (ii) shares of Class A common stock

held by Breakthrough Energy Ventures Select Fund I, L.P. Breakthrough Energy Ventures, LLC is managed by Breakthrough Energy

Ventures Management, L.P., the general partner of which is Breakthrough Energy Ventures Management GP, LLC. Breakthrough Energy

Ventures Select Fund I, L.P.'s general partner is Breakthrough Energy Ventures Select GP, L.P., the general partner of which is

Breakthrough Energy Ventures Select Ultimate GP, LLC, the sole member of which is Breakthrough Energy Ventures Management GP,

LLC. The address for each of the foregoing entities is 250 Summer Street, 4th Floor, Boston, Massachusetts 02210.

(6) Represents shares of Class A common stock held by Centaurus Capital LP. Centaurus Holdings, LLC is the General Partner of Centaurus

Capital LP, and is controlled by its Manager, John D. Arnold. The address for each of the foregoing entities and Mr. Arnold is 1717 West

Loop South, Suite 1800, Houston, TX 77027.

(7) Consists of shares of Class A common stock issuable pursuant to outstanding stock options held by Ms. Cleary that are currently

exercisable or will be exercisable within 60 days of , 2026.

(8) Consists of shares of Class A common stock issuable pursuant to outstanding stock options held by Ms. Jewett that are currently

exercisable or will be exercisable within 60 days of , 2026.

(9) Consists of (i) shares of Class B common stock held by Mr. Latimer and (ii) shares of Class B common stock issuable pursuant to

outstanding stock options held by Mr. Latimer that are currently exercisable or will be exercisable within 60 days of , 2026.

(10) Consists of (i) shares of Class B common stock held by Mr. Norbeck and (ii) shares of Class B common stock issuable pursuant to

outstanding stock options held by Mr. Norbeck that are currently exercisable or will be exercisable within 60 days of , 2026.

(11) Consists of shares of Class A common stock issuable pursuant to outstanding stock options held by Ms. Owens that are currently

exercisable or will be exercisable within 60 days of , 2026.

(12) Consists of (i) shares of Class A common stock held by Mr. Torres and (ii) shares of Class A common stock issuable pursuant to

outstanding stock options held by Mr. Torres that are currently exercisable or will be exercisable within 60 days of , 2026.

(13) Consists of shares of Class A common stock issuable pursuant to outstanding stock options held by Mr. Ulrey that are currently

exercisable or will be exercisable within 60 days of , 2026.

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(14) Consists of shares of Class A common stock issuable pursuant to outstanding stock options held by Mr. Woodard that are currently

exercisable or will be exercisable within 60 days of , 2026.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

The following are summaries of certain provisions of our related party agreements and are qualified in their

entirety by reference to all of the provisions of such agreements. Because these descriptions are only summaries of

the applicable agreements, they do not necessarily contain all of the information that you may find useful. We

therefore urge you to review the agreements in their entirety. Copies of the forms of the agreements have been filed

as exhibits to the registration statement of which this prospectus is a part, and are available electronically on the

website of the SEC at www.sec.gov.

**Related Party Agreements in Effect Prior to this Offering**

***Founder Share Exchange Agreement and Equity Award Exchange Agreement***

To facilitate the Founder Share Exchange, we will enter into the Founder Share Exchange Agreement with our

Co-Founders, Tim Latimer and Jack Norbeck, PhD, pursuant to which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common

stock expected to be held by Mr. Latimer and Dr. Norbeck following the Reclassification will automatically be

exchanged for an equivalent number of shares of Class B common stock immediately prior to the completion of this

offering.

In addition, we will enter into the Equity Award Exchange Agreement with each of Mr. Latimer and Dr.

Norbeck, pursuant to which, following the completion of this offering, each of Mr. Latimer and Dr. Norbeck will

have a right (but not an obligation) to exchange any shares of Class A common stock received by him upon the

exercise of options for an equivalent number of shares of Class B common stock. This right applies only to shares of

Class A common stock received by either of Mr. Latimer or Dr. Norbeck upon the exercise of options that were

outstanding immediately prior to the completion of this offering. As of December 31, 2025, after giving effect

to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , there were&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock issuable upon the exercise of options held by

Mr. Latimer (without regard to vesting status), and there were&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock

issuable upon the exercise of options held by Dr. Norbeck (without regard to vesting status). All of these shares of

Class A common stock could be exchanged, following vesting and exercise or settlement, for an equivalent number

of shares of our Class B common stock.

***Preferred Stock Issuances***

In 2024, we issued an aggregate of 122,690,461 shares of our Series D-1 Preferred Stock, Series D-2 Preferred

Stock and Series D-3 Preferred Stock (including 4,766,559 shares of Series D-2 Preferred Stock issued upon the

conversion of a convertible note outstanding and 112,098 shares of Series D-4 Preferred Stock issued upon the

conversion of a SAFE), certain of which were issued to related persons in the amounts set forth in the table below.

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In 2025 and 2026, we issued an aggregate of 56,537,255 shares of our Series E-1 Preferred Stock, certain of

which were issued to related persons in the amounts set forth in the table below.

---

| | | | |
|:---|:---|:---|:---|
| **Subscriber** | **Issuance Date** | **Shares Issued** <br>**(Series)**<br>| **Subscription** <br>**Price (per share)**<br>|
| Congruent Continuity Fund I, LP ........................ | Feb 2024 | 2,961,734 (Series D-1) | $2.53230 |
| Congruent Cosine Fund I, LP .............................. | Feb 2024 | 987,244 (Series D-1) | $2.53230 |
| DCVC Climate Select L.P. .................................. | Feb 2024 | 3,948,979 (Series D-1) | $2.53230 |
| DCVC VI, L.P. ..................................................... | Feb 2024 | 3,948,978 (Series D-1) | $2.53230 |
| Technology Impact Growth Fund II, L.P. ............ | Feb 2024 | 3,948,977 (Series D-1) | $2.53230 |
| Energy Climate Capital I, LLC ............................ | Feb 2024 | 786,217 (Series D-1) | $2.53230 |
| DCVC Climate Select L.P. .................................. | Dec 2024 | 946,754 (Series D-3) | $5.28120 |
| DCVC VI, L.P. ..................................................... | Dec 2024 | 946,754 (Series D-3) | $5.28120 |
| TIGF II Direct Strategies LLC – Series 5 ............ | Dec 2024 | 7,574,036 (Series D-3) | $5.28120 |
| Technology Impact Growth Fund II, L.P. ............ | Dec 2024 | 3,787,018 (Series D-3) | $5.28120 |
| Breakthrough Energy Ventures Select Fund I, <br>L.P. ...................................................................<br>| Dec 2024 | 1,420,131 (Series D-3) | $5.28120 |
| Congruent Continuity Fund I, LP ........................ | Dec 2024 | 946,754 (Series D-3) | $5.28120 |
| Congruent Cosine Fund I, LP .............................. | Dec 2024 | 378,701 (Series D-3) | $5.28120 |
| Devon Technology Ventures Holdings, L.L.C. ... | Dec 2025 | 6,118,752 (Series E-1) | $8.17160 |
| Breakthrough Energy Ventures Select Fund I, <br>L.P. ..................................................................<br>| Dec 2025 | 2,141,563 (Series E-1) | $8.17160 |
| Congruent Continuity Fund I, LP ........................ | Dec 2025 | 611,875 (Series E-1) | $8.17160 |
| Congruent Cosine Fund I, LP .............................. | Dec 2025 | 1,223,750 (Series E-1) | $8.17160 |
| DCVC Climate Select, L.P. ................................. | Dec 2025 | 1,223,750 (Series E-1) | $8.17160 |
| DCVC VI, L.P. ..................................................... | Dec 2025 | 1,921,288 (Series E-1) | $8.17160 |
| Technology Impact Growth Fund II, L.P. ............ | Dec 2025 | 1,223,750 (Series E-1) | $8.17160 |
| TIGF II Direct Strategies LLC - Series 7 ............. | Dec 2025 | 2,447,501 (Series E-1) | $8.17160 |

---

***Investor Rights Agreements***

We are party to certain Investor Rights Agreements with holders each of our Series A Preferred Stock, Series B

Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock. These Investor

Rights Agreement provided customary stockholder rights that, prior to this offering, included information rights and

preemptive rights; those rights will terminate automatically upon or immediately prior to the completion of this

offering or when we become subject to Exchange Act reporting. These Investor Rights Agreements also provide

certain of our stockholders—including certain of our directors and executive officers and beneficial owners of more

than 5% of a class of our capital stock—with demand, piggyback and Form S-3 registration rights covering their

shares, including shares of Class A common stock that will be issued upon the Preferred Stock Conversion. Prior to

the completion of this offering, we intend to terminate these Investor Rights Agreements and enter into a new

agreement that provides similar registration rights to these stockholders. For a description of these registration

rights, see "Shares Eligible for Future Sale—Registration Rights." See "Underwriting" for a description of these

lock-up agreements.

***Registration Rights Agreements***

In connection with this offering, we have entered into a Registration Rights Agreement with certain holders of

our Class A common stock, including shares issued upon conversion of our Series A Preferred Stock, Series A-1

Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D-1 Preferred Stock, Series D-2

Preferred Stock, Series D-3 Preferred Stock, Series D-4 Preferred Stock, Series E-1 Preferred Stock, and Series E-2

Preferred Stock. This Registration Rights Agreement supersedes and replaces in its entirety the Amended and

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Restated Investors' Rights Agreement, dated as of December 4, 2025, with respect to registration rights. The

Registration Rights Agreement provides certain of our stockholders with demand, piggyback and Form S-3

registration rights covering their registrable shares. For a description of these registration rights, see "Shares Eligible

for Future Sale—Registration Rights." In connection with this offering, holders party to the Registration Rights

Agreement have entered into lock-up agreements with the underwriters providing for certain restrictions on the sale

or transfer of shares of our common stock and certain other securities for a period of 180 days following the date of

the final prospectus. See "Underwriting" for a description of these lock-up agreements.

***Technical Services Payment***

In 2024, the Company paid approximately $0.2 million for technical services provided by Devon Energy, a

supplier and a major investor in the Company, and an observer to the Company's board of directors.

**Director and Officer Indemnification and Insurance**

Prior to the consummation of this offering, we intend to enter into separate indemnification agreements with

each of our directors and executive officers. We have also purchased directors' and officers' liability insurance. See

"Description of Capital Stock — Limitations on Liability and Indemnification of Officers and Directors."

**Our Policy Regarding Related Party Transactions**

Our board of directors recognizes the fact that transactions with related persons present a heightened risk of

conflicts of interests, improper valuation or the perception thereof. Prior to the consummation of this offering, our

board of directors will adopt a written policy on transactions with related persons that is in conformity with the

requirements for issuers having publicly held common stock that is listed on the NASDAQ. Under the new policy:

• any related person transaction, and any material amendment or modification to a related person transaction,

must be reviewed and approved or ratified by a committee of the board of directors composed solely of

independent directors who are disinterested or by the disinterested members of the board of directors; and

• any employment relationship or transaction involving an executive officer and any related compensation

must be approved by the compensation committee of the board of directors or recommended by the

compensation committee to the board of directors for its approval.

In connection with the review and approval or ratification of a related person transaction:

• management must disclose to the committee or disinterested directors, as applicable, the name of the related

person and the basis on which the person is a related person, the material terms of the related person

transaction, including the approximate dollar value of the amount involved in the transaction, and all the

material facts as to the related person's direct or indirect interest in, or relationship to, the related person

transaction;

• management must advise the committee or disinterested directors, as applicable, as to whether the related

person transaction complies with the terms of our agreements governing our material outstanding

indebtedness that limit or restrict our ability to enter into a related person transaction;

• management must advise the committee or disinterested directors, as applicable, as to whether the related

person transaction will be required to be disclosed in our applicable filings under the Securities Act or the

Exchange Act, and related rules, and, to the extent required to be disclosed, management must ensure that

the related person transaction is disclosed in accordance with the Securities Act and the Exchange Act and

related rules; and

• management must advise the committee or disinterested directors, as applicable, as to whether the related

person transaction constitutes a "personal loan" for purposes of Section 402 of the Sarbanes-Oxley Act.

In addition, the related person transaction policy provides that the committee or disinterested directors, as

applicable, in connection with any approval or ratification of a related person transaction involving a non-employee

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director should consider whether such transaction would compromise the director's status as an "independent,"

"outside," or "non-employee" director, as applicable, under the rules and regulations of the SEC, the NASDAQ and

the Code.

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**DESCRIPTION OF CAPITAL STOCK**

**General**

At or prior to the consummation of this offering, we will file our Amended Charter and we will adopt our

Amended Bylaws. Our Amended Charter will authorize capital stock consisting of:

• shares of common stock, of which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares will be designated as Class A common stock, $0.0001

par value per share, and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares will be designated as Class B common stock, $0.0001 par value per

share; and

• shares of preferred stock, par value $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share.

We are selling&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock in this offering (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares if the underwriters

exercise their over-allotment option to purchase additional shares of our Class A common stock in full).

After giving effect to (i) the Preferred Stock Conversion (ii) the filing and effectiveness of our Amended

Charter and the adoption of our Amended Bylaws, (iii) the Founder Share Exchange and (iv) the Reclassification, as

of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, there were&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our Class A common stock outstanding, held by&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; stockholders

of record,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class B common stock outstanding, held by&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; stockholders of record, and no

shares of our preferred stock outstanding.

The following summary describes the material provisions of our capital stock. We urge you to read our

Amended Charter and our Amended Bylaws, which are included as exhibits to the registration statement of which

this prospectus forms a part.

Certain provisions of our Amended Charter and our Amended Bylaws summarized below may be deemed to

have an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might

consider in its best interest, including those attempts that might result in a premium over the market price for the

shares of Class A common stock.

**Common Stock**

We will have two series of authorized common stock: Class A common stock and Class B common stock. The

rights of holders of shares of Class A common stock and Class B common stock are identical, except with respect to

voting, conversion and transfer rights.

**Voting Rights**

Holders of shares of our Class A common stock will be entitled to one vote for each share held of record on all

matters submitted to a vote of stockholders. Holders of our Class B common stock are entitled to 40 votes per share

on any matter submitted to our stockholders. Holders of shares of Class A common stock and Class B common stock

will vote together as a single class on all matters (including the election of directors) submitted to a vote of

stockholders, unless otherwise required by Delaware law or our Amended Charter that becomes effective

immediately prior to the completion of this offering.

Under Delaware law, holders of our Class A common stock or Class B common stock would be entitled to vote

as a separate class if a proposed amendment to our Amended Charter would increase or decrease the aggregate

number of authorized shares of such class, increase or decrease the par value of the shares of such class, or alter or

change the powers, preferences, or special rights of the shares of such class so as to affect them adversely. As a

result, in these limited instances, the holders of a majority of the Class A common stock could defeat any

amendment to our Amended Charter. For example, if a proposed amendment of our Amended Charter provided for

the Class A common stock to rank junior to the Class B common stock with respect to (1) any dividend or

distribution, (2) the distribution of proceeds were we to be acquired, or (3) any other right, Delaware law would

require the vote of the Class A common stock. In this instance, the holders of a majority of Class A common stock

could defeat that amendment to our Amended Charter.

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Our Amended Charter, which will come into effect immediately prior to the closing of this offering, will not

provide for cumulative voting for the election of directors.

***Dividend Rights***

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our

common stock are entitled to receive dividends and other distributions out of funds legally available if our board of

directors, in its discretion, determines to issue dividends and other distributions and then only at the times and in the

amounts that our board of directors may determine.

See "Dividend Policy" for additional information.

***Liquidation***

In the event of our dissolution or liquidation, after payment in full of all amounts required to be paid to creditors

and to the holders of preferred stock having liquidation preferences, if any, the holders of shares of our Class A

common stock will be entitled to share ratably in the remaining assets legally available for distribution.

Holders of our Class A common stock and Class B common stock are not entitled to preemptive rights and are

not subject to subscription, conversion, redemption or sinking fund provisions, except for the conversion provisions

with respect to the Class B common stock described below. There will be no redemption or sinking fund provisions

applicable to our Class A common stock or Class B common stock. The rights, preferences and privileges of the

holders of our Class A common stock and Class B common stock will be subject to and may be adversely affected

by the rights of the holders of shares of any series of our preferred stock that we may designate in the future.

***Conversion***

Each outstanding share of our Class B common stock is convertible at any time at the option of the holder into

one share of our Class A common stock. In addition, each share of our Class B common stock will convert

automatically into one share of our Class A common stock upon any transfer, whether or not for value, which occurs

after the closing of this offering, except for certain permitted transfers described in our Amended Charter, including

transfers to immediate family members (including upon Mr. Latimer's or Dr. Norbeck's death), trusts (including

grantor retained annuity trusts) for which the stockholder or their immediate family member serves as trustee, and

partnerships, corporations, and other entities exclusively owned by Mr. Latimer or Dr. Norbeck or either of their

immediate families. All of the outstanding shares of Class B common stock will convert automatically into shares of

Class A common stock upon the earliest to occur of (i) the first trading day following the seventh anniversary of this

offering, (ii) the date on which the number of shares of Class A and Class B common stock beneficially owned by

Mr. Latimer's and Dr. Norbeck's permitted transferees (including shares underlying outstanding options) represents

less than 25% of the shares of Class A and Class B common stock beneficially owned by Mr. Latimer and Dr.

Norbeck, in the aggregate, on the closing date of this offering, (iii) the death or disability of a Co-Founder, and (iv)

the termination of a Co-Founder for cause. Once converted or transferred and converted into our Class A common

stock, the Class B common stock will not be reissued.

***Fully Paid and Non-Assessable***

All shares of our Class A common stock that will be outstanding upon the completion of this offering will be

fully paid and non-assessable.

**Warrants**

As of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, we had warrants outstanding held by Centaurus Capital LP to purchase up to an aggregate of

3,550,329 shares of our Series D-3 convertible preferred stock, or, if Series D-3 convertible preferred stock is not

our most senior class at the time of exercise, our most senior class of equity securities, at an exercise price of

$5.2812 per share. The warrants have a four-year term measured from October 6, 2025 and will expire immediately

prior to the closing of a firm commitment underwritten initial public offering of our Class A common stock, and

therefore are not expected to be outstanding following this offering. The warrants are exercisable in whole or in part

by cash payment and may be exercised on a cashless basis. The warrant contains customary anti-dilution and

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structural adjustment provisions for reorganizations, recapitalizations, reclassifications, stock splits, combinations

and similar corporate events. Transfers of the warrants are restricted and generally require our consent (subject to

limited affiliate transfers and compliance with applicable securities laws), and the holder is subject to a customary

market stand-off of up to 180 days in connection with our first underwritten public offering.

**Preferred Stock**

No shares of preferred stock will be issued or outstanding immediately after the offering contemplated by this

prospectus. Our Amended Charter authorizes our board of directors to establish one or more series of preferred

stock. Unless required by law or any stock exchange, the authorized shares of preferred stock will be available for

issuance without further action by the holders of our common stock. Our board of directors is able to determine,

without stockholder approval and with respect to any series of preferred stock, the powers (including voting

powers), preferences and relative, participating, optional, or other special rights, and the qualifications, limitations,

or restrictions thereof, including, without limitation:

• the designation of the series;

• the number of shares of the series, which our board of directors may, except where otherwise provided in

the preferred stock designation, increase (but not above the total number of authorized shares of the class)

or decrease (but not below the number of shares then outstanding);

• whether dividends, if any, will be cumulative or non-cumulative and the dividend rate of the series;

• the dates at which dividends, if any, will be payable;

• the redemption or repurchase rights and price or prices, if any, for shares of the series;

• the terms and amounts of any sinking fund provided for the purchase or redemption of shares of the series;

• the amounts payable on shares of the series in the event of any voluntary or involuntary liquidation,

dissolution, or winding-up of our affairs;

• whether the shares of the series will be convertible into shares of any other class or series, or any other

security, of us or any other entity, and, if so, the specification of the other class or series or other security,

the conversion price or prices, or rate or rates, any rate adjustments, the date or dates as of which the shares

will be convertible and all other terms and conditions upon which the conversion may be made;

• restrictions on the issuance of shares of the same series or of any other class or series; and

• the voting rights, if any, of the holders of the series.

We could issue a series of preferred stock that could, depending on the terms of the series, impede or discourage

an acquisition attempt or other transaction that some, or a majority, of the holders of our Class A common stock

might believe to be in their best interests or in which the holders of our Class A common stock might receive a

premium over the market price of the shares of our Class A common stock. Additionally, the issuance of preferred

stock may adversely affect the rights of holders of our Class A common stock by restricting dividends on the Class

A common stock, diluting the voting power of the Class A common stock or subordinating the liquidation rights of

the Class A common stock. As a result of these or other factors, the issuance of preferred stock could have an

adverse impact on the market price of our Class A common stock. We have no current plan for the issuance of any

shares of preferred stock.

**Options**

As of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our Class A common stock were issuable upon the exercise of

outstanding stock options at a weighted-average exercise price of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, under the 2019

Plan. For additional information regarding the terms of the 2019 Plan, see the section titled "Executive and Director

Compensation—Equity Compensation."

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**Forum Selection**

Our Amended Charter will provide that, unless we consent to the selection of an alternative forum, the Court of

Chancery of the State of Delaware (the "Court of Chancery") is the sole and exclusive forum for: (a) any derivative

action, suit, or proceeding brought on our behalf; (b) any action, suit, or proceeding asserting a claim of breach of

fiduciary duty owed by any of our current or former directors, officers or other employees or stockholder to us or to

our stockholders, creditors or other constituents; (c) any action, suit, or proceeding asserting a claim arising pursuant

to the Delaware General Corporation Law, our Amended Charter or Amended Bylaws, or as to which the Delaware

General Corporation Law confers exclusive jurisdiction on the Court of Chancery; or (d) any action, suit, or

proceeding asserting a claim governed by the internal affairs doctrine, unless the Court of Chancery does not have

subject matter jurisdiction thereof, the federal district court of the District of Delaware or other state courts of the

State of Delaware; provided that the exclusive forum provisions will not apply to suits brought to enforce any

jurisdiction.

Furthermore, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all

Accordingly, both state and federal courts have jurisdiction to entertain such Securities Act claims. To prevent

having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts,

among other considerations, our Amended Charter will further provide that, unless we consent in writing to the

selection of an alternative forum, to the fullest extent permitted by law, the federal district courts of the United States

of America are the exclusive forum for the resolution of any complaint asserting a cause of action arising under the

Securities Act; however, there is uncertainty as to whether a court would enforce such provision, and investors

cannot waive compliance with federal securities laws and the rules and regulations thereunder. Nothing in our

amended and restated certificated of incorporation or Amended Bylaws preclude stockholders that assert claims

under the Exchange Act from bringing such claims in state or federal court, subject to applicable law.

Although we believe the provision benefits us by providing increased consistency in the application of

Delaware law in the types of lawsuits to which it applies, the provision may limit a stockholder's ability to bring a

claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers, other employees

or stockholders, which may have the effect of discouraging lawsuits with respect to such claims or make such

lawsuits more costly for stockholders. However, our stockholders will not be deemed to have waived our

compliance with federal securities laws and the rules and regulations thereunder.

**Anti-Takeover Effects of Provisions of our Amended Charter and Amended Bylaws**

Our Amended Charter and our Amended Bylaws also contain provisions that may delay, defer or discourage

another party from acquiring control of us. We expect that these provisions, which are summarized below, will

discourage coercive takeover practices or inadequate takeover bids. These provisions are also designed to encourage

persons seeking to acquire control of us to first negotiate with our board of directors, which we believe may result in

an improvement of the terms of any such acquisition in favor of our stockholders. However, they also give our board

of directors the power to discourage acquisitions that some stockholders may favor.

***Classified Board of Directors***

Our Amended Charter will provide that our board of directors will be divided into three classes, with the

number of directors in each class being as nearly equal in number as possible. The directors in each class will serve

for a three-year term, one class being elected each year by our stockholders, with staggered terms. Our Amended

Charter will provide that directors may only be removed from our board of directors for cause by the affirmative

vote of two-thirds of the shares entitled to vote. See "Management—Composition of our Board of Directors." These

provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control of us

or our management.

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***Special Meetings of Stockholders***

Our Amended Bylaws provide that only the Chief Executive Officer or a majority of our board of directors may

call special meetings of our stockholders, thus prohibiting a stockholder from calling a special meeting. These

provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders

controlling a majority of our capital stock to take any action, including the removal of directors.

***Advance Notice Requirements for Stockholder Proposals and Director Nominations***

In addition, our Amended Bylaws will establish an advance notice procedure for stockholder proposals to be

brought before an annual meeting or special meeting of stockholders, including proposed nominations of candidates

for election to our board of directors. Generally, in order for any matter to be "properly brought" before a meeting,

the matter must be (a) specified in a notice of meeting given by or at the direction of our board of directors, (b) if not

specified in a notice of meeting, otherwise brought before the meeting by our board of directors or the chair of the

meeting, or (c) otherwise properly brought before the meeting by a stockholder present in person who (1) was a

stockholder both at the time of giving the notice and at the time of the meeting, (2) is entitled to vote at the meeting,

and (3) has complied with the advance notice procedures specified in the Amended Bylaws or properly made such

proposal in accordance with Rule 14a-8 under the Exchange Act and the rules and regulations thereunder, which

proposal has been included in the proxy statement for the annual meeting. Further, for business to be properly

brought before an annual meeting by a stockholder, the stockholder must (a) provide Timely Notice (as defined

below) thereof in writing and in proper form to the secretary and (b) provide any updates or supplements to such

notice at the times and in the forms required by our Amended Bylaws. To be timely, a stockholder's notice must be

delivered to, or mailed and received at, our principal executive offices not less than 90 days nor more than 120 days

prior to the one-year anniversary of the preceding year's annual meeting; provided, however, that if the date of the

annual meeting is more than 30 days before or more than 60 days after such anniversary date, to be timely, notice by

the stockholder must be so delivered, or mailed and received, not later than the 90th day prior to such annual

meeting or, if later, the 10th day following the day on which public disclosure of the date of such annual meeting

was first made (such notice within such time periods, "Timely Notice").

Stockholders at an annual meeting or special meeting may only consider proposals or nominations specified in

the notice of meeting or brought before the meeting by or at the direction of our board of directors or by a qualified

stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has

delivered timely written notice in proper form to our secretary of the stockholder's intention to bring such business

before the meeting. These provisions could have the effect of delaying stockholder actions that are favored by the

holders of a majority of our outstanding voting securities until the next stockholder meeting.

***Elimination of Stockholder Action by Written Consent***

Our Amended Charter and Amended Bylaws will eliminate the right of stockholders to act by written consent

without a meeting following the first date on which we cease to have shares of Class B common stock outstanding.

***Amendment of Certificate of Incorporation or Bylaws***

Upon consummation of this offering, our Amended Bylaws may be amended or repealed by a vote of our board

of directors or by the affirmative vote of two-thirds of the votes which all of our stockholders would be eligible to

cast in an election of directors. The affirmative vote of a majority of our board of directors and two-thirds in voting

power of the outstanding shares entitled to vote thereon would be required to amend our Amended Charter.

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***Section 203 of the DGCL***

We will be governed by the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a public

Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a period of

three years after the time of the transaction in which the person became an interested stockholder, unless:

• the business combination or transaction which resulted in the stockholder becoming an interested

stockholder was approved by the board of directors prior to the time that the stockholder became an

interested stockholder;

• upon consummation of the transaction which resulted in the stockholder becoming an interested

stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation

outstanding at the time the transaction commenced, excluding shares owned by directors who are also

officers of the corporation and shares owned by employee stock plans in which employee participants do

not have the right to determine confidentially whether shares held subject to the plan will be tendered in a

tender or exchange offer; or

• at or subsequent to the time the stockholder became an interested stockholder, the business combination

was approved by the board of directors and authorized at an annual or special meeting of the stockholders,

and not by written consent, by the affirmative vote of at least 66⅔% of the outstanding voting stock which

is not owned by the interested stockholder.

In general, Section 203 defines a "business combination" to include mergers, asset sales and other transactions

resulting in financial benefit to a stockholder and an "interested stockholder" as a person who, together with

affiliates and associates, owns, or, if such person is an affiliate or associate of the corporation, within three years did

own, 15% or more of the corporation's outstanding voting stock. These provisions may have the effect of delaying,

deferring or preventing changes in control of our Company.

**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 Amended Charter includes a provision that eliminates the personal liability of directors for monetary damages

to the corporation or its stockholders for any breach of fiduciary duty as a director, except to the extent such

exemption from liability or limitation thereof is not permitted under the DGCL. The effect of these provisions is to

eliminate the rights of us and our stockholders, through stockholders' derivative suits on our behalf, to recover

monetary damages from a director for breach of fiduciary duty as a director, including breaches resulting from

grossly negligent behavior. However, exculpation does not apply to any breaches of the director's duty of loyalty,

any acts or omissions not in good faith or that involve intentional misconduct or knowing violation of law, any

authorization of dividends or stock redemptions or repurchases paid or made in violation of the DGCL, or for any

transaction from which the director derived an improper personal benefit.

Our Amended Bylaws generally provide that we must indemnify and advance expenses to our directors and

officers to the fullest extent authorized by the DGCL. We also are expressly authorized to carry directors' and

officers' liability insurance providing indemnification for our 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.

The limitation of liability, indemnification, and advancement provisions in our Amended Charter and Amended

Bylaws 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.

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There is currently no pending material litigation or proceeding involving any of our directors, officers, or

employees for which indemnification is sought.

**Indemnification Agreements**

We intend to enter into an indemnification agreement with each of our directors and executive officers as

described in "Certain Relationships and Related Party Transactions — Director and Officer Indemnification and

Insurance." Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors or

executive officers, we have been informed that in the opinion of the SEC such indemnification is against public

policy and is therefore unenforceable.

**Corporate Opportunities**

Our Amended Charter provides that, to the fullest extent permitted by law, we have renounced any interest or

expectancy in, or in being offered an opportunity to participate in, an Excluded Opportunity. An "Excluded

Opportunity" is any matter, transaction or interest that is presented to, or acquired, created or developed by, or which

otherwise comes into the possession of, (i) any director who is not an employee of Fervo Energy or any of its

subsidiaries, or (ii) any holder of preferred stock or any partner, member, director, stockholder, employee or agent of

any such holder, other than someone who is an employee of Fervo Energy or any of its subsidiaries (collectively,

"Covered Persons"), unless such matter, transaction or interest is presented to, or acquired, created or developed by,

or otherwise comes into the possession of, a Covered Person expressly and solely in such Covered Person's capacity

as a director.

**Dissenters' Rights of Appraisal and Payment**

Under the DGCL, with certain exceptions, our stockholders will have appraisal rights in connection with a

merger or consolidation of Fervo Energy. Pursuant to the DGCL, stockholders who properly request and perfect

appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair

value of their shares as determined by the Court of Chancery in the State of Delaware.

**Stockholders' Derivative Actions**

Under the DGCL, any of our stockholders may bring an action in our name to procure a judgment in our favor,

also known as a derivative action, provided that the stockholder bringing the action is a holder of our shares at the

time of the transaction to which the action relates or such stockholder's shares thereafter devolved by operation of

law and such suit is brought in the Court of Chancery in the State of Delaware. See "— Exclusive Venue" above.

**Stock Exchange Listing**

We intend to apply to list our Class A common stock on the NASDAQ under the symbol " FRVO."

**Transfer Agent and Registrar**

The transfer agent and registrar for our Class A common stock and Class B common stock is Fidelity Stock

Transfer Services, LLC. The transfer agent and registrar's address is 245 Summer Street, Boston, Massachusetts

02210, and its telephone number is (617) 563-5800.

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**SHARES ELIGIBLE FOR FUTURE SALE**

Immediately prior to this offering, there was no public market for our Class A common stock. Future sales of

substantial amounts of Class A common stock in the public market, or the perception that such sales may occur,

could adversely affect the market price of our Class A common stock. Although we have applied to have our Class

A common stock listed on the NASDAQ, we cannot assure you that there will be an active public market for our

Class A common stock.

Upon the closing of this offering, we will have outstanding an aggregate of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A

common stock, assuming the issuance of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock offered by us in this offering.

Of these shares, all shares sold in this offering will be freely tradable without restriction or further registration under

the Securities Act, except for any shares purchased by our "affiliates," as that term is defined in Rule 144 under the

Securities Act, whose sales would be subject to the Rule 144 resale restrictions described below, other than the

holding period requirement.

The remaining&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock will be "restricted securities," as that term is defined

in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if they are registered

under the Securities Act or if they qualify for an exemption from registration under Rules 144 or 701 under the

Securities Act, which are summarized below.

**Registration Rights**

After the completion of this offering, holders of approximately shares of our outstanding Class A

common stock, or certain of their transferees, will be entitled to certain rights with respect to the registration of those

shares under the Securities Act. If these shares are registered, in most cases they will be freely tradable without

restriction under the Securities Act, subject to the Rule 144 limitations applicable to affiliates, and a large number of

shares may be sold into the public market. See "Risk Factors — Risks Relating to Owning Our Common Stock —

The grant of registration rights to certain of our stockholders, and the future exercise of such rights may adversely

affect the market price of our Class A common stock." for additional information.

***Demand Registration Rights***

Subject to any lock-up agreement executed with the underwriters in connection with this offering, the holders of

a majority of the registrable shares of Class A common stock then outstanding (or a lesser percentage if the

anticipated aggregate offering price, net of selling expenses, would exceed $50,000,000) can request that we register

the offer and sale of their shares on a Form S-1 or similar long-form registration statement. We are obligated to

effect only two such long-form registrations.

***Piggyback Registration Rights***

Following this offering, if we propose to register any of our securities under the Securities Act in connection

with a public offering solely for cash (other than certain excluded registrations), the holders of registrable shares of

Class A common stock will be entitled to certain "piggyback" registration rights allowing such holders to include

their registrable shares of Class A common stock in such registration, subject to certain marketing and other

limitations. As a result of these limitations, in the event the managing underwriters advise us that the number of

securities requested to be included in such offering exceeds the number that can be sold without adversely affecting

the marketability, proposed offering price, timing, or method of distribution of the offering, the securities to be

included in such offering will be allocated in the following order of priority: (i) first, the securities we propose to

sell; (ii) second, the registrable securities requested to be included by the holders, allocated pro rata among such

holders based on their respective holdings; and (iii) third, other securities requested to be included in such

registration.

Notwithstanding the foregoing priority and cutback provisions, in no event will the number of registrable

securities included in the offering be reduced below 20% of the total number of securities included in such offering.

For the avoidance of doubt, this 20% floor means that the holders of registrable securities are entitled to a minimum

allocation equal to at least 20% of the total offering size (inclusive of securities offered by us, the holders, and any

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other selling stockholders), regardless of any cutback recommendation by the underwriters. This 20% floor is

measured against the aggregate number of securities included in the offering, and not against the number of

registrable securities originally requested for inclusion by the holders.

***S-3 Registration Rights***

If we are eligible to file a registration statement on Form S-3, holders of at least 20% of the registrable shares of

Class A common stock then outstanding may make a written request that we register the offer and sale of their

shares of Class A common stock on a registration statement on Form S-3, so long as the request covers securities for

which the anticipated aggregate offering price is at least $10,000,000, net of selling expenses. These stockholders

may make an unlimited number of requests for registration on Form S-3; however, we will not be required to effect

a registration on Form S-3 if we have effected two such registrations within the 12-month period preceding the date

of the request, or after we have effected six short-form registrations in the aggregate. See "Certain Relationships and

Related Party Transactions — Registration Rights Agreement" for more information.

**Lock-Up Agreements**

In connection with this offering, we, our officers, our directors and certain other holders that represent

approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our outstanding Class A common stock and securities directly or indirectly convertible

into or exchangeable or exercisable for our Class A common stock will agree to lock-up periods as specified herein.

We, our officers and our directors will agree that, without the prior written consent of J.P. Morgan Securities

LLC and BofA Securities, Inc., as representatives of the underwriters, we and they will not, subject to certain

exceptions, during the period ending&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; days after the date of this prospectus:

• offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise transfer

or dispose of, directly or indirectly or publicly disclose the intention to make any offer, sale, pledge or

disposition of any shares of our Class A common stock, or any options or warrants to purchase any shares

of our Class A common stock, or any securities convertible into, or exchangeable for, or that represent the

right to receive, shares of our Class A common stock; or

• enter into any swap or other arrangement that transfers to another, all or a portion of the economic

consequences of ownership of our Class A common stock or any securities convertible into or exercisable

or exchangeable for shares of our Class A common stock,

whether any transaction described above is to be settled by delivery of our Class A common stock or such other

securities, in cash or otherwise.

The representatives of the underwriters have advised us that they have no present intent or arrangement to

release any shares subject to a lock-up, and will consider the release of any lock-up on a case-by-case basis. Upon a

request to release any shares subject to a lock-up, the representatives of the underwriters would consider the

particular circumstances surrounding the request, including, but not limited to, the length of time before the lock-up

expires, the number of shares requested to be released, reasons for the request, the possible impact on the market or

our Class A common stock and whether the holder of our shares requesting the release is an officer, director or other

affiliate of ours.

Upon the expiration of the lock-up period, substantially all of the shares subject to such lock-up restrictions will

become eligible for sale, subject to the limitations discussed above. For a further description of the lock-up

agreements, see "Underwriting."

**Rule 144**

***Affiliate Resales of Restricted Securities***

After giving effect to this offering, the Reclassification, the Founder Share Exchange and the Preferred Stock

Conversion, we expect that &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our outstanding Class A common stock will be "restricted" securities

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under the meaning of Rule 144 under the Securities Act and may not be sold in the absence of registration under the

Securities Act unless an exemption from registration is available, including the exemption provided by Rule 144.

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 an affiliate of ours at any time during the three months preceding a sale and who

has beneficially owned shares considered to be restricted securities under Rule 144 for at least six months would be

entitled to sell those shares, subject only to the availability of current public information about us. A non-affiliated

person who has beneficially owned shares considered to be restricted securities under Rule 144 for at least one year

would be entitled to sell those shares without regard to the provisions of Rule 144.

An affiliate of ours who has beneficially owned shares of our Class A common stock for at least six months

would be entitled to sell, within any three-month period, a number of shares that does not exceed the greater of:

• 1% of the number of shares of our Class A common stock then outstanding; and

• the average weekly trading volume in our Class A common stock on the NASDAQ during the four calendar

weeks preceding the filing of a notice on Form 144 with respect to such sale;

provided, in each case, that we are subject to the Exchange Act periodic reporting requirements for at least 90

days before the sale and have filed all required reports during that time period. Such sales by affiliates must also

comply with the manner of sale, current public information and notice provisions of Rule 144. In addition, if the

number of shares being sold under Rule 144 by an affiliate during any three-month period exceeds 5,000 shares or

has an aggregate sale price in excess of $50,000, the seller must file a notice on Form 144 with the SEC and the

NASDAQ concurrently with either the placing of a sale order with the broker or the execution directly with a market

maker.

An "affiliate" is a person that directly, or indirectly through one or more intermediaries, controls or is controlled

by, or is under common control with an issuer.

**Non-Affiliate Resales of Restricted Securities**

Under Rule 144, a person who is not an affiliate of ours at the time of sale, and has not been an affiliate at any

time during the 90 days preceding a sale, and who has beneficially owned shares of our common stock for at least

six months but less than a year, is entitled to sell such shares subject only to the availability of current public

information about us. If such person has held our shares for at least one year, such person can resell without regard

to any Rule 144 restrictions, including the 90-day public company requirement and the current public information

requirement.

Non-affiliate resales are not subject to the manner of sale, volume limitation or notice filing provisions of

Rule 144.

**Rule 701**

In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who purchases

shares from us in connection with a compensatory stock or option plan or other written agreement before the

effective date of the registration statement of which this prospectus forms a part is entitled to sell such shares 90

days after such effective date in reliance on Rule 144. Our affiliates can resell shares in reliance on Rule 144 without

having to comply with the holding period requirement, and non-affiliates of the issuer can resell shares in reliance

on Rule 144 without having to comply with the current public information and holding period requirements.

The SEC has indicated that Rule 701 will apply to typical stock options granted by an issuer before it becomes

subject to the reporting requirements of the Exchange Act, along with the shares acquired upon exercise of such

options, including exercises after an issuer becomes subject to the reporting requirements of the Exchange Act.

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**Registration Statement on Form S-8**

We intend to file a registration statement or statements on Form S-8 under the Securities Act covering shares of

Class A common stock subject to issuance upon the exercise of outstanding stock options under the 2019 Plan and

reserved for issuance under the 2026 Plan and the ESPP. These registration statements are expected to be filed as

soon as practicable after the closing date of this offering. Shares issued upon the exercise of stock options after the

effective date of the applicable Form S-8 registration statement will be eligible for resale in the public market

without restriction, subject to Rule 144 limitations applicable to affiliates and the lock-up agreements described

above. See "Executive and Director Compensation — Equity Incentive Award Plans" for a description of our equity

compensation plans.

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**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF** 

**COMMON STOCK**

The following discussion is a summary of the material U.S. federal income tax consequences to Non-U.S.

Holders (as defined below) of the purchase, ownership and disposition of our Class A common stock issued pursuant

to this offering, but does not purport to be a complete analysis of all potential tax effects. The effects of other U.S.

federal tax laws, such as estate and gift tax laws, and any applicable state, local or non-U.S. tax laws are not

discussed. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "Code"), Treasury

Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of

the IRS, in each case in effect as of the date hereof. These authorities may change or be subject to differing

interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could

adversely affect a Non-U.S. Holder. We have not sought and will not seek any rulings from the IRS regarding the

matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that

discussed below regarding the tax consequences of the purchase, ownership and disposition of our Class A common

stock.

This discussion is limited to Non-U.S. Holders that hold our Class A common stock as a "capital asset" within

the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address

all U.S. federal income tax consequences relevant to a Non-U.S. Holder's particular circumstances, including the

impact of the Medicare contribution tax on net investment income and the alternative minimum tax. In addition, it

does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation:

• U.S. expatriates and former citizens or long-term residents of the United States;

• persons holding our Class A common stock as part of a hedge, straddle, or other risk reduction strategy or

as part of a conversion transaction or other integrated investment;

• banks, insurance companies, and other financial institutions;

• brokers, dealers, or traders in securities;

• "controlled foreign corporations," "passive foreign investment companies," and corporations that

accumulate earnings to avoid U.S. federal income tax;

• partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes

(and investors therein);

• tax-exempt organizations or governmental organizations;

• persons deemed to sell our Class A common stock under the constructive sale provisions of the Code;

• persons who hold or receive our Class A common stock pursuant to the exercise of any employee stock

option or otherwise as compensation;

• tax-qualified retirement plans;

• "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all of the interests

of which are held by qualified foreign pension funds; and

• persons holding Class B common stock.

If an entity treated as a partnership for U.S. federal income tax purposes holds our Class A common stock, the

tax treatment of a partner in the partnership will generally depend on the status of the partner, the activities of the

partnership, and certain determinations made at the partner level. Accordingly, partnerships holding our Class A

common stock and the partners in such partnerships should consult their tax advisors regarding the U.S. federal

income tax consequences to them.

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**THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE.** 

**INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION** 

**OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS** 

**ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP, AND DISPOSITION OF OUR CLASS** 

**A COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR** 

**UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. TAXING JURISDICTION OR UNDER** 

**ANY APPLICABLE INCOME TAX TREATY.**

**Definition of a Non-U.S. Holder**

For purposes of this discussion, a "Non-U.S. Holder" is any beneficial owner of our Class A common stock that

is neither a "U.S. person" nor an entity treated as a partnership for U.S. federal income tax purposes. A U.S. person

is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

• an individual who is a citizen or resident of the United States;

• a corporation created or organized under the laws of the United States, any state thereof, or the District of

Columbia;

• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

• a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more "United

States persons" (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in

effect to be treated as a United States person for U.S. federal income tax purposes.

**Distributions**

As described in the section entitled "Dividend Policy," we do not anticipate declaring or paying dividends to

holders of our Class A common stock in the foreseeable future. However, if we do make distributions of cash or

property on our Class A common stock, such distributions will constitute dividends for U.S. federal income tax

purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal

income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a return

of capital and first be applied against and reduce a Non-U.S. Holder's adjusted tax basis in its Class A common

stock, but not below zero. Any excess will be treated as capital gain and will be treated as described below under

"— Sale or Other Taxable Disposition."

Subject to the discussion below on effectively connected income, dividends paid to a Non-U.S. Holder will

generally be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such

lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes to the applicable

withholding agent a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying

qualification for the lower treaty rate). A Non-U.S. Holder that does not timely furnish the required documentation,

but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an

appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their

entitlement to benefits under any applicable income tax treaty.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade

or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder

maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S.

Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S.

Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are

effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States.

Any such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the

regular rates. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or

such lower rate specified by an applicable income tax treaty) on such effectively connected dividends, as adjusted

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for certain items. Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may

provide for different rules.

**Sale or Other Taxable Disposition**

Subject to the discussion below under "—Information Reporting and Backup Withholding", a Non-U.S. Holder

will generally not be subject to U.S. federal income or withholding tax on any gain realized upon the sale or other

taxable disposition of our Class A common stock unless:

• the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the

United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a

permanent establishment in the United States to which such gain is attributable);

• the Non-U.S. Holder is a nonresident alien individual present in the United States for 183 days or more

during the taxable year of the disposition and certain other requirements are met; or

• our Class A common stock constitutes a U.S. real property interest (a "USRPI"), by reason of our status as

a U.S. real property holding corporation (a "USRPHC"), for U.S. federal income tax purposes.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net

income basis at the regular rates. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax

at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain,

as adjusted for certain items.

A Non-U.S. Holder described in the second bullet point above will be subject to U.S. federal income tax at a

rate of 30% (or such lower rate specified by an applicable income tax treaty) on gain realized upon the sale or other

taxable disposition of our Class A common stock, which may be offset by U.S. source capital losses of the Non-U.S.

Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder

has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, because the determination of whether we are a USRPHC depends

on the fair market value of our USRPIs relative to the fair market value of our non-U.S. real property interests and

our other business assets, there can be no assurance we currently are not a USRPHC or will not become one in the

future. Non-U.S. Holders generally are subject to a 15% withholding tax on the amount realized from a sale or other

taxable disposition of a USRPI, such as our Class A common stock, which is required to be collected from any sale

or disposition proceeds. Furthermore, such Non-U.S. Holders are subject to U.S. federal income tax (at the regular

rates) in respect of any gain on their sale or other taxable disposition of the Class A common stock and are required

to file a U.S. tax return to report such gain and pay any tax liability that is not satisfied by withholding. A Non-U.S.

Holder may, by filing a U.S. federal income tax return, be able to claim a refund for any withholding tax deducted in

excess of the tax liability on any gain. However, even if we are or were to become a USRPHC, if our Class A

common stock is considered "regularly traded on an established securities market" (within the meaning of the

Treasury Regulations), then Non-U.S. Holders will not be subject to the 15% withholding tax on the disposition of

their Class A common stock, even if such Class A common stock constitutes USRPIs. Moreover, even if we are or

were to become a USRPHC, if our Class A common stock is considered "regularly traded on an established

securities market" (within the meaning of the Treasury Regulations) and the Non-U.S. Holder actually or

constructively owns or owned, at all times during the shorter of the five-year period ending on the date of the sale or

other taxable disposition or the Non-U.S. Holder's holding period, 5% or less of our Class A common stock taking

into account applicable constructive ownership rules, such Non-U.S. Holder may treat its ownership of our Class A

common stock as not constituting a USRPI and will not be subject to U.S. federal income tax on any gain realized

upon the sale or other taxable disposition of our Class A common stock (in addition to not being subject to the 15%

withholding tax described above) or U.S. tax return filing requirements. We expect our Class A common stock to be

treated as "regularly traded on an established securities market" so long as our Class A common stock is listed on

the NASDAQ and regularly quoted by brokers or dealers making a market in such Class A common stock.

Non-U.S. Holders should consult their tax advisors regarding tax consequences of our treatment as a USRPHC

and regarding potentially applicable income tax treaties that may provide for different rules.

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**Information Reporting and Backup Withholding**

Payments of dividends on our Class A common stock will not be subject to backup withholding, provided the

applicable withholding agent does not have actual knowledge or reason to know the holder is a United States person

and the holder either certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or

W-8ECI, or otherwise establishes an exemption. However, information returns are required to be filed with the IRS

in connection with any distributions on our Class A common stock paid to the Non-U.S. Holder, regardless of

whether such distributions constitute dividends or whether any tax was actually withheld. In addition, proceeds of

the sale or other taxable disposition of our Class A common stock within the United States or conducted through

certain U.S.-related brokers generally will not be subject to backup withholding or information reporting, if the

applicable withholding agent receives the certification described above and does not have actual knowledge or

reason to know that such holder is a United States person, or the holder otherwise establishes an exemption.

Proceeds of a disposition of our Class A common stock conducted through a non-U.S. office of a non-U.S. broker

generally will not be subject to backup withholding or information reporting.

Copies of information returns that are filed with the IRS may also be made available under the provisions of an

applicable treaty or agreement to the tax authorities of the country in which the Non-U.S. Holder resides or is

established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be

allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required

information is timely furnished to the IRS.

**Additional Withholding Tax on Payments Made to Foreign Accounts**

Withholding taxes may be imposed under Sections 1471 to 1474 of the Code (such Sections commonly referred

to as the Foreign Account Tax Compliance Act, or FATCA), on certain types of payments made to non-U.S.

financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on

dividends on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from the sale or

other disposition of, our Class A common stock paid to a "foreign financial institution" or a "non-financial foreign

entity" (each as defined in the Code), unless (1) the foreign financial institution undertakes certain diligence and

reporting obligations, (2) the non-financial foreign entity either certifies it does not have any "substantial United

States owners" (as defined in the Code) or furnishes to the applicable withholding agent a certification identifying

each direct and indirect substantial United States owner, or (3) the foreign financial institution or non-financial

foreign entity otherwise qualifies for an exemption from these rules and provides appropriate documentation (such

as an IRS Form W-8BEN-E). If the payee is a foreign financial institution and is subject to the diligence and

reporting requirements in (1) above, it must enter into an agreement with the U.S. Department of the Treasury

requiring, among other things, that it undertake to identify accounts held by certain "specified United States

persons" or "United States owned foreign entities" (each as defined in the Code), annually report certain information

about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and

certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental

agreement with the United States governing FATCA may be subject to different rules. Under certain circumstances,

a holder might be eligible for refunds or credits of such taxes.

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally

applies to payments of dividends on our Class A common stock. While withholding under FATCA would have

applied also to payments of gross proceeds from the sale or other disposition of our Class A common stock on or

after January 1, 2019, proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds

entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations are

issued.

Prospective investors should consult their tax advisors regarding the potential application of withholding under

FATCA to their investment in our Class A common stock.

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**UNDERWRITING**

We are offering the shares of Class A common stock described in this prospectus through a number of

underwriters. J.P. Morgan Securities LLC and BofA Securities, Inc. are acting as joint book-running managers of

the offering and as representatives of the underwriters. We have entered into an underwriting agreement with the

underwriters. Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the

underwriters, and each underwriter has severally agreed to purchase, at the public offering price less the

underwriting discounts and commissions set forth on the cover page of this prospectus, the number of shares of

Class A common stock listed next to its name in the following table:

---

| | |
|:---|:---|
| **Name** | **Number of** <br>**Shares**<br>|
| J.P. Morgan Securities LLC ................................................................................................................. |  |
| BofA Securities, Inc. ............................................................................................................................ |  |
| RBC Capital Markets, LLC ................................................................................................................. |  |
| Barclays Capital Inc. ............................................................................................................................. |  |
| Robert W. Baird & Co. Incorporated .................................................................................................... |  |
| BBVA Securities Inc. ............................................................................................................................ |  |
| Guggenheim Securities, LLC ................................................................................................................ |  |
| MUFG Securities Americas Inc. ........................................................................................................... |  |
| SG Americas Securities, LLC ............................................................................................................... |  |
| William Blair & Company, L.L.C. ....................................................................................................... |  |
| Piper Sandler & Co. ............................................................................................................................. |  |
| Nomura Securities International, Inc. ................................................................................................... |  |
| WR Securities, LLC .............................................................................................................................. |  |
| Total ...................................................................................................................................................... |  |

---

_______________

"Wolfe \| Nomura Alliance" is the marketing name used by Wolfe Research Securities and Nomura Securities International, Inc. in

connection with certain equity capital markets activities conducted jointly by the firms. Both Nomura Securities International, Inc. and WR

Securities, LLC are serving as underwriters in the offering described herein. In addition, WR Securities, LLC and certain of its affiliates

may provide sales support services, investor feedback, investor education, and/or other independent equity research services in connection

with this offering.

The underwriters are committed to purchase all the shares of Class A common stock offered by us if they

purchase any shares. The underwriting agreement also provides that if an underwriter defaults, the purchase

commitments of non-defaulting underwriters may also be increased or the offering may be terminated.

The underwriters propose to offer the shares of Class A common stock directly to the public at the initial public

offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession not

in excess of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share. Any such dealers may resell shares to certain other brokers or dealers at a discount of

up to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share from the initial public offering price. After the initial offering of the shares to the public, if

all of the shares of Class A common stock are not sold at the initial public offering price, the underwriters may

change the offering price and the other selling terms. Sales of any shares made outside of the United States may be

made by affiliates of the underwriters.

The underwriters have an option to buy up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares of Class A common stock from us to

cover sales of shares by the underwriters which exceed the number of shares specified in the table above. The

underwriters have 30 days from the date of this prospectus to exercise this option to purchase additional shares. If

any shares are purchased with this option to purchase additional shares, the underwriters will purchase shares in

approximately the same proportion as shown in the table above. If any additional shares of Class A common stock

are purchased, the underwriters will offer the additional shares on the same terms as those on which the shares are

being offered.

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The underwriting fee is equal to the public offering price per share of Class A common stock less the amount

paid by the underwriters to us per share of Class A common stock. The underwriting fee is $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share. The

following table shows the per share and total underwriting discounts and commissions to be paid to the underwriters

assuming both no exercise and full exercise of the underwriters' option to purchase additional shares.

---

| | | |
|:---|:---|:---|
|  | **Without**<br>**option to** <br>**purchase** <br>**additional shares**<br>**exercise**<br>| **With full**<br>**option to** <br>**purchase** <br>**additional shares**<br>**exercise**<br>|
| Per Share .................................................................................................................... | $| $|
| Total ........................................................................................................................... | $| $|

---

We estimate that the total expenses of this offering, including registration, filing and listing fees, printing fees

and legal and accounting expenses, but excluding the underwriting discounts and commissions, will be

approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

A prospectus in electronic format may be made available on the web sites maintained by one or more

underwriters, or selling group members, if any, participating in the offering. The underwriters may agree to allocate

a number of shares to underwriters and selling group members for sale to their online brokerage account holders.

Internet distributions will be allocated by the representatives to underwriters and selling group members that may

make Internet distributions on the same basis as other allocations.

We have agreed that we will not (i) 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, or submit to, or file with, the Securities and Exchange Commission a registration

statement under the Securities Act relating to, any shares of our Class A common stock or securities convertible into

or exercisable or exchangeable for any shares of our Class A common stock, or publicly disclose the intention to

make any offer, sale, pledge, loan, disposition or filing, or (ii) enter into any swap or other arrangement that transfers

all or a portion of the economic consequences associated with the ownership of any shares of Class A common stock

or any such other securities (regardless of whether any of these transactions are to be settled by the delivery of

shares of Class A common stock or such other securities, in cash or otherwise), in each case without the prior written

consent of J.P. Morgan Securities LLC and BofA Securities, Inc. for a period of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; days after the date of this

prospectus, other than the shares of our Class A common stock to be sold in this offering.

The restrictions on our actions, as described above, do not apply to certain transactions, including (i) the

issuance of shares of Class A common stock or securities convertible into or exercisable for shares of our Class A

common stock pursuant to the conversion or exchange of convertible or exchangeable securities or the exercise of

warrants or options (including net exercise) or the settlement of RSUs (including net settlement), in each case

outstanding on the date of the underwriting agreement and described in this prospectus; (ii) grants of stock options,

stock awards, restricted stock, RSUs, or other equity awards and the issuance of shares of our Class A common

stock or securities convertible into or exercisable or exchangeable for shares of our Class A common stock (whether

upon the exercise of stock options or otherwise) to our employees, officers, directors, advisors, or consultants

pursuant to the terms of an equity compensation plan in effect as of the closing of this offering and described in this

prospectus, provided that such recipients enter into a lock-up agreement with the underwriters; or (iii) our filing of

any registration statement on Form S-8 relating to securities granted or to be granted pursuant to any plan in effect

on the date of the underwriting agreement and described in this prospectus or any assumed benefit plan pursuant to

an acquisition or similar strategic transaction.

Our directors and executive officers, and our shareholders holding in the aggregate &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the outstanding

shares of our Class A common stock (such persons, the "lock-up parties") have entered into lock-up agreements with

the underwriters prior to the commencement of this offering pursuant to which each lock-up party, with limited

exceptions, for a period of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; days after the date of this prospectus (such period, the "restricted period"), may not

(and may not cause any of their direct or indirect affiliates to), without the prior written consent of J.P. Morgan

Securities LLC and BofA Securities, Inc., (1) 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

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transfer or dispose of, directly or indirectly, any shares of our Class A common stock or any securities convertible

into or exercisable or exchangeable for our Class A common stock (including, without limitation, Class A common

stock or such other securities which may be deemed to be beneficially owned by such lock-up parties in accordance

with the rules and regulations of the SEC and securities which may be issued upon exercise of a stock option or

warrant (collectively with the Class A common stock, the "lock-up securities")), (2) enter into any hedging, swap or

other agreement or transaction that transfers, in whole or in part, any of the economic consequences of ownership of

the lock-up securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery

of lock-up securities, in cash or otherwise, (3) make any demand for, or exercise any right with respect to, the

registration of any lock-up securities, or (4) publicly disclose the intention to do any of the foregoing. Such persons

or entities have further acknowledged that these undertakings preclude them from engaging in any hedging or other

transactions or arrangements (including, without limitation, any short sale or the purchase or sale of, or entry into,

any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument,

however described or defined) designed or intended, or which could reasonably be expected to lead to or result in, a

sale or disposition or transfer (by any person or entity, whether or not a signatory to such agreement) of any

economic consequences of ownership, in whole or in part, directly or indirectly, of any lock-up securities, whether

any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of lock-up

securities, in cash or otherwise.

The restrictions described in the immediately preceding paragraph and contained in the lock-up agreements

between the underwriters and the lock-up parties do not apply, subject in certain cases to various conditions, to

certain transactions, including (a) transfers or disposals of lock-up securities: (i) as a bona fide gift or gifts or

charitable contributions, or for bona fide estate planning purposes, (ii) by will or intestacy or any other testamentary

document, (iii) to any member of the undersigned's immediate family or to any trust for the direct or indirect benefit

of the lock-up party or any immediate family member, (iv) to a corporation, partnership, limited liability company,

investment fund or other entity (A) of which the lock-up party or its immediate family members are the legal and

beneficial owner of all of the outstanding equity securities or similar interests or (B) controlled by, or under common

control or common investment management with, the lock-up party or its immediate family member, (v) to a

nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (i)

through (iv), (vi) in the case of a corporation, partnership, limited liability company, trust or other business entity,

(A) to another corporation, partnership, limited liability company, trust or other business entity that is an affiliate of

the lock-up party, or to any investment fund or other entity controlling, controlled by, managing or managed by or

under common control with the lock-up party or its affiliates or (B) as part of a disposition, transfer or distribution to

limited partners, members or stockholders of the lock-up party; (vii) by operation of law, (viii) to us upon death or

disability of the lock-up party, or, if the lock-up party is an employee, upon death, disability or termination of

employment of such employee, (ix) as part of a sale or transfer of lock-up securities acquired in open market

transactions after the completion of this offering, (x) to us in connection with the vesting, settlement or exercise of

restricted stock units, options, warrants or other rights to purchase shares of our Class A common stock (including

"net" or "cashless" exercise), including for the payment of exercise price and tax and remittance payments, or (xi)

pursuant to a bona fide third-party tender offer, merger, consolidation or other similar transaction approved by our

board of directors and made to all shareholders involving a change in control, provided that if such transaction is not

completed, all such lock-up securities would remain subject to the restrictions in the immediately preceding

paragraph; (b) exercise of the options, settlement of RSUs or other equity awards, or the exercise of warrants granted

pursuant to plans described in this prospectus, provided that any lock-up securities received upon such exercise,

vesting or settlement would be subject to restrictions similar to those in the immediately preceding paragraph; (c) the

conversion of outstanding preferred stock, warrants to acquire preferred stock, or convertible securities into shares

of our Class A common stock or warrants to acquire shares of our Class A common stock, provided that any

common stock or warrant received upon such conversion would be subject to restrictions similar to those in the

immediately preceding paragraph; and (d) the establishment by lock-up parties of trading plans under Rule 10b5-1

under the Exchange Act, provided that such plan does not provide for the transfer of lock-up securities during the

restricted period.

J.P. Morgan Securities LLC and BofA Securities, Inc., in their sole discretion, may release the securities subject

to any of the lock-up agreements with the underwriters described above, in whole or in part at any time.

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Sales, short sales, or hedging transactions involving our equity securities, whether before or after this offering

and whether or not we believe them to be prohibited, could adversely affect the price of our Class A common stock.

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the

Securities Act of 1933.

We will apply to have our Class A common stock approved for listing/quotation on the NASDAQ under the

symbol "FRVO".

In connection with this offering, the underwriters may engage in stabilizing transactions, which involves

making bids for, purchasing and selling shares of Class A common stock in the open market for the purpose of

preventing or retarding a decline in the market price of the Class A common stock while this offering is in progress.

These stabilizing transactions may include making short sales of Class A common stock, which involves the sale by

the underwriters of a greater number of shares of Class A common stock than they are required to purchase in this

sales. Short sales may be "covered" shorts, which are short positions in an amount not greater than the underwriters'

option to purchase additional shares referred to above, or may be "naked" shorts, which are short positions in excess

of that amount. The underwriters may close out any covered short position either by exercising their option to

purchase additional shares, in whole or in part, or by purchasing shares in the open market. In making this

determination, the underwriters will consider, among other things, the price of shares available for purchase in the

open market compared to the price at which the underwriters may purchase shares through the option to purchase

additional shares. 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 Class A common stock in the open market that could adversely affect

investors who purchase in this offering. To the extent that the underwriters create a naked short position, they will

purchase shares in the open market to cover the position.

The underwriters have advised us that, pursuant to Regulation M of the Securities Act of 1933, they may also

engage in other activities that stabilize, maintain or otherwise affect the price of the Class A common stock,

including the imposition of penalty bids. This means that if the representatives of the underwriters purchase Class A

common stock in the open market in stabilizing transactions or to cover short sales, the representatives can require

the underwriters that sold those shares as part of this offering to repay the underwriting discount received by them.

These activities may have the effect of raising or maintaining the market price of the Class A common stock or

preventing or retarding a decline in the market price of the Class A common stock, and, as a result, the price of the

Class A common stock may be higher than the price that otherwise might exist in the open market. If the

underwriters commence these activities, they may discontinue them at any time. The underwriters may carry out

these transactions on the NASDAQ, in the over-the-counter market or otherwise.

Prior to this offering, there has been no public market for our Class A common stock. The initial public

offering price will be determined by negotiations between us and the representatives of the underwriters. In

determining the initial public offering price, we and the representatives of the underwriters expect to consider a

number of factors including:

• the information set forth in this prospectus and otherwise available to the representatives;

• our prospects and the history and prospects for the industry in which we compete;

• an assessment of our management;

• our prospects for future earnings;

• the general condition of the securities markets at the time of this offering;

• the recent market prices of, and demand for, publicly traded common stock of generally comparable

companies; and

• other factors deemed relevant by the underwriters and us.

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Neither we nor the underwriters can assure investors that an active trading market will develop for our Class A

common stock, or that the shares of Cass A common stock will trade in the public market at or above the initial

public offering price.

Other than in the United States, no action has been taken by us or the underwriters that would permit a public

offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The

securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any

other offering material or advertisements in connection with the offer and sale of any such securities be distributed

or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules

and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform

themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This

prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this

prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

Certain of the underwriters and their affiliates may provide from time to time in the future certain commercial

banking, financial advisory, investment banking and other services for us and such affiliates in the ordinary course

of their business, for which they have received and may continue to receive customary fees and commissions. In

addition, from time to time, certain of the underwriters and their affiliates may effect transactions for their own

account or the account of customers, and hold on behalf of themselves or their customers, long or short positions in

our debt or equity securities or loans, and may do so in the future. Bernstein Institutional Services LLC is serving as

selling agent on behalf of SG Americas Securities, LLC in the offering described herein. Bernstein Institutional

Services LLC and certain of its affiliates may provide investor feedback, research, market sounding, block

monitoring, market intelligence, historical market, or trading information and origination and deal execution support

to SG Americas Securities, LLC in connection with this offering and may also provide such services in the general

course of business.

***Reserved Share Program***

At our request, an affiliate of BofA Securities, Inc., a participating underwriter, has reserved for sale, at the

initial public offering price, up to 5% of the shares of Class A common stock to be issued by us and offered by this

prospectus for sale to some of our directors, officers and employees and related persons. If these persons purchase

reserved shares it will reduce the number of shares available for sale to the general public. Any reserved shares that

are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares

offered by this prospectus.

**Selling Restrictions**

Other than in the United States, no action has been taken by us or the underwriters that would permit a public

offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The

securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any

other offering material or advertisements in connection with the offer and sale of any such securities be distributed

or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules

and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform

themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This

prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this

prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

***European Economic Area***

In relation to each Member State of the European Economic Area (each a "Relevant State"), no Class A

common stock has been offered or will be offered pursuant to the offering to the public in that Relevant State prior

to the publication of a prospectus in relation to the Class A common stock which has been approved by the

competent authority in that Relevant State or, where appropriate, approved in another Relevant State and notified to

the competent authority in that Relevant State, all in accordance with the Prospectus Regulation, except that offers of

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Class A common stock may be made to the public in that Relevant State at any time under the following exemptions

under the Prospectus Regulation:

(a)to any legal entity which is a qualified investor as defined under Article 2 of the Prospectus Regulation;

(b)to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the

Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

(c)in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of Class A common stock shall require us or any representative to publish a

prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of

the Prospectus Regulation, and each person who initially acquires any Class A common stock or to whom any offer

is made will be deemed to have represented, acknowledged and agreed to and with each of the representatives and us

that it is a "qualified investor" within the meaning of Article 2(e) of the Prospectus Regulation. In the case of any

Class A common stock being offered to a financial intermediary as that term is used in the Prospectus Regulation,

each such financial intermediary will be deemed to have represented, acknowledged and agreed that the Class A

common stock acquired by it in the offer have not been acquired on a non-discretionary basis on behalf of, nor have

they been acquired with a view to their offer or resale to, persons in circumstances which may give rise to an offer of

any Class A common stock to the public other than their offer or resale in a Relevant State to qualified investors as

so defined or in circumstances in which the prior consent of the representatives has been obtained to each such

proposed offer or resale.

For the purposes of this provision, the expression an "offer to the public" in relation to any Class A common

stock in any Relevant State means the communication in any form and by any means of sufficient information on the

terms of the offer and any Class A common stock to be offered so as to enable an investor to decide to purchase or

subscribe for any Class A common stock, and the expression "Prospectus Regulation" means Regulation (EU)

2017/1129.

***United Kingdom***

No Class A common stock has been offered or will be offered pursuant to the offering to the public in the

United Kingdom prior to the publication of a prospectus in relation to the Class A common stock which (i) has been

approved by the Financial Conduct Authority or (ii) is to be treated as if it had been approved by the Financial

Conduct Authority in accordance with the transitional provisions in Article 74 (transitional provisions) of the

Prospectus Amendment etc. (EU Exit) Regulations 2019/1234, except that the Class A common stock may be

offered to the public in the United Kingdom at any time:

(a)to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus Regulation;

(b)to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the

UK Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer;

or

(c)in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000

("FSMA").

provided that no such offer of the Class A common stock shall require us or any representative to publish a

prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK

Prospectus Regulation. For the purposes of this provision, the expression an "offer to the public" in relation to the

Class A common stock in the United Kingdom means the communication in any form and by any means of

sufficient information on the terms of the offer and any Class A common stock to be offered so as to enable an

investor to decide to purchase or subscribe for any Class A common stock and the expression "UK Prospectus

Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union

(Withdrawal) Act 2018.

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In addition, in the United Kingdom, this document is being distributed only to, and is directed only at, and any

offer subsequently made may only be directed at persons who are "qualified investors" (as defined in the Prospectus

Regulation) (i) who have professional experience in matters relating to investments falling within Article 19(5) of

the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") and/or

(ii) who are high net worth companies (or persons to whom it may otherwise be lawfully communicated) falling

within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons") or

otherwise in circumstances which have not resulted and will not result in an offer to the public of the Class A

common stock in the United Kingdom within the meaning of the FSMA.

Any person in the United Kingdom that is not a relevant person should not act or rely on the information

included in this document or use it as basis for taking any action. In the United Kingdom, any investment or

investment activity that this document relates to may be made or taken exclusively by relevant persons.

***Canada***

The Class A common stock may be sold in Canada only to purchasers purchasing, or deemed to be purchasing,

as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or

subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument

31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the Class A

common stock must be made in accordance with an exemption from, or in a transaction not subject to, the

prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for

rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided

that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the

securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions

of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a

legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters

are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest

in connection with this offering.

***Hong Kong***

The Class A common stock has not been offered or sold and will not be offered or sold in Hong Kong, by

means of any document, other than (a) to "professional investors" as defined in the Securities and Futures Ordinance

(Cap. 571 of the Laws of Hong Kong) (the "SFO") of Hong Kong and any rules made thereunder; or (b) in other

circumstances which do not result in the document being a "prospectus" as defined in the Companies (Winding Up

and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong (the "CO") or which do not constitute an offer to

the public within the meaning of the CO. No advertisement, invitation or document relating to the Class A common

stock has been or may be issued or has been or may be in the possession of any person for the purposes of issue,

whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read

by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with

respect to Class A common stock which are or are intended to be disposed of only to persons outside Hong Kong or

only to "professional investors" as defined in the SFO and any rules made thereunder.

***Singapore***

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly,

no Class A common stock has been or will be offered or sold and no Class A common stock has been or will be

made the subject of an invitation for subscription or purchase, and no prospectus or any other document or material

in connection with the offer or sale, or invitation for subscription or purchase, of the Class A common stock, has

been or will be circulated or distributed, whether directly or indirectly, to any person in Singapore other than (i) to

an institutional investor (as defined in Section 4A of the Securities and Futures Act 2001 of Singapore, as modified

or amended from time to time (the "SFA")) pursuant to Section 274 of the SFA or (ii) to an accredited investor (as

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defined in Section 4A of the SFA) pursuant to and in accordance with the conditions specified in Section 275 of the

SFA.

Singapore SFA Product Classification — In connection with Section 309B of the SFA and the CMP

Regulations 2018, unless otherwise specified before an offer of Class A common stock, we have determined, and

hereby notify all relevant persons (as defined in Section 309A(1) of the SFA), that the Class A common stock are

"prescribed capital markets products" (as defined in the CMP Regulations 2018) and Excluded Investment Products

(as defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16:

Notice on Recommendations on Investment Products).

***Japan***

The Class A common stock has not been and will not be registered pursuant to Article 4, Paragraph 1 of the

Financial Instruments and Exchange Act. Accordingly, none of the Class A common stock nor any interest therein

may be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any "resident" of Japan (which

term as used herein means any person resident in Japan, including any corporation or other entity organized under

the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to or for the benefit of a

resident of Japan, except pursuant to an exemption from the registration requirements of, and otherwise in

compliance with, the Financial Instruments and Exchange Act and any other applicable laws, regulations and

ministerial guidelines of Japan in effect at the relevant time.

***Switzerland***

This prospectus does not constitute an offer to the public or a solicitation to purchase or invest in any Class A

common stock. No Class A common stock has been offered or will be offered to the public in Switzerland, except

that offers of Class A common stock may be made to the public in Switzerland at any time under the following

exemptions under the Swiss Financial Services Act ("FinSA"):

(a)to any person which is a professional client as defined under the FinSA;

(b)to fewer than 500 persons (other than professional clients as defined under the FinSA), subject to obtaining

the prior consent of the representatives for any such offer; or

(c)in any other circumstances falling within Article 36 FinSA in connection with Article 44 of the Swiss

Financial Services Ordinance;

provided that no such offer of Class A common stock shall require us or any representative to publish a

prospectus pursuant to Article 35 FinSA.

The Class A common stock has not been and will not be listed or admitted to trading on a trading venue in

Switzerland.

Neither this document nor any other offering or marketing material relating to the Class A common stock

constitutes a prospectus as such term is understood pursuant to the FinSA, and neither this document nor any other

offering or marketing material relating to the Class A common stock may be publicly distributed or otherwise made

publicly available in Switzerland.

***Dubai International Financial Centre***

This prospectus relates to an Exempt Offer in accordance with the Markets Law, DIFC Law No. 1 of 2012, as

amended. This prospectus is intended for distribution only to persons of a type specified in the Markets Law, DIFC

Law No. 1 of 2012, as amended. It must not be delivered to, or relied on by, any other person. The Dubai Financial

Services Authority (DFSA) has no responsibility for reviewing or verifying any documents in connection with

Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein

and has no responsibility for this prospectus. The Class A common stock to which this prospectus relates may be

illiquid and/or subject to restrictions on their resale. Prospective purchasers of the Class A common stock offered

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should conduct their own due diligence on the Class A common stock. If you do not understand the contents of this

prospectus, you should consult an authorized financial advisor.

In relation to its use in the DIFC, this prospectus is strictly private and confidential and is being distributed to a

limited number of investors and must not be provided to any person other than the original recipient, and may not be

reproduced or used for any other purpose. The interests in the Class A common stock may not be offered or sold

directly or indirectly to the public in the DIFC.

***Australia***

This prospectus:

(a)does not constitute a disclosure document or a prospectus under Chapter 6D.2 of the Corporations Act 2001

(Cth) (the "Corporations Act");

(b)has not been, and will not be, lodged with the Australian Securities and Investments Commission ("ASIC"),

as a disclosure document for the purposes of the Corporations Act and does not purport to include the

information required of a disclosure document for the purposes of the Corporations Act; and

(c)may only be provided in Australia to select investors who are able to demonstrate that they fall within one

or more of the categories of investors, available under section 708 of the Corporations Act ("Exempt

Investors").

The Class A common stock may not be directly or indirectly offered for subscription or purchased or sold, and

no invitations to subscribe for or buy the Class A common stock may be issued, and no draft or definitive offering

memorandum, advertisement or other offering material relating to any Class A common stock may be distributed in

Australia, except where disclosure to investors is not required under Chapter 6D of the Corporations Act or is

otherwise in compliance with all applicable Australian laws and regulations. By submitting an application for the

Class A common stock, you represent and warrant to us that you are an Exempt Investor.

As any offer of Class A common stock under this document will be made without disclosure in Australia under

Chapter 6D.2 of the Corporations Act, the offer of the Class A common stock for resale in Australia within 12

months may, under section 707 of the Corporations Act, require disclosure to investors under Chapter 6D.2 if none

of the exemptions in section 708 applies to that resale. By applying for the Class A common stock, you undertake to

us that you will not, for a period of 12 months from the date of issue of the Class A common stock, offer, transfer,

assign or otherwise alienate those Class A common stock to investors in Australia except in circumstances where

disclosure to investors is not required under Chapter 6D.2 of the Corporations Act or where a compliant disclosure

document is prepared and lodged with ASIC.

***Bermuda***

The Class A common stock may be offered or sold in Bermuda only in compliance with the provisions of the

Investment Business Act of 2003 of Bermuda which regulates the sale of securities in Bermuda. Additionally, non-

Bermudian persons (including companies) may not carry on or engage in any trade or business in Bermuda unless

such persons are permitted to do so under applicable Bermuda legislation.

***Brazil***

The offer and sale of the Class A common stock has not been and will not be registered with the Brazilian

Securities Commission (Comissão de Valores Mobiliários, or "CVM") and, therefore, will not be carried out by any

means that would constitute a public offering in Brazil under CVM Resolution No. 160, dated July 13, 2022, as

amended, or unauthorized distribution under Brazilian laws and regulations. The Class A common stock will be

authorized for trading on organized non-Brazilian securities markets and may only be offered to Brazilian

Professional Investors (as defined by applicable CVM regulation), who may only acquire the Class A common stock

through a non-Brazilian account, with settlement outside Brazil in non-Brazilian currency. The trading of the Class

A common stock on regulated securities markets in Brazil is prohibited.

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***Israel***

In the State of Israel this prospectus shall not be regarded as an offer to the public to purchase shares of our

Class A common stock under the Israeli Securities Law, 5728 - 1968, or the Israeli Securities Law, which requires a

prospectus to be published and authorized by the Israel Securities Authority if it complies with certain provisions of

Section 15 of the Israeli Securities Law, including, inter alia, if: (i) the offer is made, distributed or directed to not

more than 35 investors, subject to certain conditions; or (ii) the offer is made, distributed or directed to certain

qualified investors defined in the First Addendum of the Israeli Securities Law, subject to certain conditions. We

have not and will not take any action that would require us to publish a prospectus in accordance with and subject to

the Israeli Securities Law. We have not and will not distribute this prospectus or make, distribute or direct an offer to

subscribe for our shares of Class A common stock to any person within the State of Israel.

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**LEGAL MATTERS**

The validity of the shares of common stock offered hereby will be passed upon for us by Latham & Watkins

LLP, Houston, Texas. Certain legal matters related to this offering will be passed upon for the underwriters by

Vinson & Elkins L.L.P., Houston, Texas.

**EXPERTS**

The financial statements of Fervo Energy Company as of December 31, 2025 and 2024 and for each of the two

years in the period ended December 31, 2025, included in this Prospectus, have been audited by Deloitte & Touche

LLP, an independent registered public accounting firm, as stated in their report. Such financial statements are

included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

Estimates of our heat initially in place and technically recoverable geothermal resources of certain of our

properties as of December 31, 2025 and June 30, 2024, included herein and elsewhere in this prospectus were based

upon reports prepared by independent engineering firm, DeGolyer and MacNaughton, of Dallas, Texas. We have

included these estimates in reliance on the authority of such firm as an expert in such matters.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the Securities and Exchange Commission a registration statement on Form S-1 under the

Securities Act with respect to the shares of Class A common stock offered hereby. This prospectus, which

constitutes a part of the registration statement, does not contain all of the information set forth in the registration

statement or the exhibits and schedules filed with the registration statement. For further information about us and the

Class A common stock offered hereby, we refer you to the registration statement and the exhibits filed with the

registration statement. Statements contained in this prospectus regarding the contents of any contract or any other

document that is filed as an exhibit to the registration statement are not necessarily complete, and each such

statement is qualified in all respects by reference to the full text of such contract or other document filed as an

exhibit to the registration statement. The SEC also maintains an internet website that contains reports, proxy

statements and other information about registrants, like us, that file electronically with the SEC. The address of that

website is *www.sec.gov*.

Upon the closing of this offering, we will be required to file periodic reports, proxy statements, and other

information with the SEC pursuant to the Exchange Act. 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 www.fervoenergy.com, through 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 a part of this prospectus and the

inclusion of our website address in this prospectus is an inactive textual reference only.

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**Fervo Energy Company and Subsidiaries**

Consolidated Financial Statements

As of and for the years ended December 31, 2025 and 2024

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**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| <u>[Report of Independent Registered Public Accounting Firm](#i024b9246cdc64bff8f3f6e527abc6720_585)</u> ............................................................................. | <u>[F-2](#i024b9246cdc64bff8f3f6e527abc6720_585)</u> |
| <u>[Consolidated Financial Statements](#i024b9246cdc64bff8f3f6e527abc6720_729)</u> |  |
| <u>[Consolidated Balance Sheets](#i024b9246cdc64bff8f3f6e527abc6720_196)</u> ....................................................................................................................... | <u>[F-3](#i024b9246cdc64bff8f3f6e527abc6720_196)</u> |
| <u>[Consolidated Statements of Operations](#i024b9246cdc64bff8f3f6e527abc6720_208)</u> ....................................................................................................... | <u>[F-5](#i024b9246cdc64bff8f3f6e527abc6720_208)</u> |
| <u>[Consolidated Statements of Redeemable Preferred Stock, Redeemable Noncontrolling Interest and](#i024b9246cdc64bff8f3f6e527abc6720_48)</u><br><u>[Stockholders' Deficit](#i024b9246cdc64bff8f3f6e527abc6720_48)</u> ................................................................................................................................<br>| <u>[F-7](#i024b9246cdc64bff8f3f6e527abc6720_48)</u> |
| <u>[Consolidated Statements of Cash Flows](#i024b9246cdc64bff8f3f6e527abc6720_51)</u> ...................................................................................................... | <u>[F-8](#i024b9246cdc64bff8f3f6e527abc6720_51)</u> |
| <u>[Notes to Consolidated Financial Statements](#i024b9246cdc64bff8f3f6e527abc6720_54)</u> ................................................................................................ | <u>[F-9](#i024b9246cdc64bff8f3f6e527abc6720_54)</u> |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the stockholders and the Board of Directors of Fervo Energy Company:

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Fervo Energy Company and subsidiaries (the

"Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, redeemable

preferred stock, redeemable noncontrolling interest and stockholders' deficit, and cash flows for each of the two

years in the period ended December 31, 2025, and the related notes and the schedule listed in the Index at Item 16

(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, 2025 and 2024, and the results of its

operations and its cash flows for each of the two years in the period ended December 31, 2025, 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 audit 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/ Deloitte & Touche LLP

Houston, Texas

March 30, 2026

We have served as the Company's auditor since 2023.

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**Fervo Energy Company and Subsidiaries**

Consolidated Balance Sheets

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| | | |
|:---|:---|:---|
| (Dollars and shares in thousands) | **As of December 31,** | **As of December 31,** |
| (Dollars and shares in thousands) | **2025** | **2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents ................................................................................... | $461836 | $193428 |
| Grant receivables ................................................................................................. | 10580 | 3952 |
| Prepaid expenses and other .................................................................................. | 9714 | 7917 |
| Total current assets .......................................................................................... | 482130 | 205297 |
| Deposits ............................................................................................................... | 15234 | 25020 |
| Construction-in-process ....................................................................................... | 789571 | 258900 |
| Operating leases right of use assets ..................................................................... | 58713 | 25672 |
| Restricted cash ..................................................................................................... | 6000 | 6000 |
| Other long-term assets .......................................................................................... | 13520 | 10410 |
| Total assets ...................................................................................................... | $1365168 | $531299 |
| **LIABILITIES AND EQUITY** |  |  |
| Current liabilities: |  |  |
| Accounts payable .................................................................................................... | $10789 | $35036 |
| Accrued capital expenditures .................................................................................. | 119303 | 22869 |
| Operating lease liabilities ....................................................................................... | 4822 | 1928 |
| Other current liabilities ........................................................................................... | 16997 | 6992 |
| Total current liabilities ...................................................................................... | 151911 | 66825 |
| Long-term debt, net of issuance costs ..................................................................... | 172837 | 39019 |
| Operating lease liabilities ....................................................................................... | 72639 | 40851 |
| Other long-term liabilities ...................................................................................... | 11407 | 299 |
| Total liabilities ................................................................................................ | 408794 | 146994 |
| Commitments and Contingencies (Note 21) ........................................................... |  |  |
| Redeemable convertible preferred stock |  |  |
| Redeemable convertible preferred stock, par value $0.0001 per share; 283,546 <br>and 223,458 authorized; 279,995 and 223,458 issued and outstanding as of <br>December 31, 2025 and 2024, respectively ........................................................<br>| 1022942 | 561500 |
| Redeemable noncontrolling interest |  |  |
| Cape Phase I HoldCo - Redeemable noncontrolling interest ................................ | 102586 |  |
| Cape Phase I Intermediate HoldCo - Redeemable noncontrolling interest .......... | 77344 |  |
| Stockholders' deficit: |  |  |
| Common stock, par value $0.0001 per share; 358,279 and 280,000 authorized; <br>13,146 and 12,470 issued and outstanding as of December 31, 2025 and <br>2024, respectively ............................................................................................<br>| 1 | 1 |
| Additional paid-in capital .................................................................................... |  | 2582 |
| Treasury stock, at cost; 375 and 0 shares as of December 31, 2025 and 2024, <br>respectively ......................................................................................................<br>| (1960) |  |
| Accumulated deficit ............................................................................................. | (244539) | (179778) |
| Total stockholders' deficit ................................................................................. | (246498) | (177195) |
| Total liabilities, redeemable convertible preferred stock, redeemable <br>noncontrolling interests and stockholders' deficit .......................................<br>| $1365168 | $531299 |

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The accompanying notes are an integral part of these consolidated financial statements.

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**Fervo Energy Company and Subsidiaries**

Consolidated Balance Sheets, Cont'd

The following table presents the assets and liabilities of consolidated variable interest entities ("VIEs"), which

are included in the Consolidated Balance Sheets above. The assets in the table below may only be used to settle

obligations of consolidated VIEs and are in excess of those obligations. The liabilities in the table below include

liabilities for which creditors do not have recourse to the general credit of the Company. Additionally, the assets and

liabilities in the table below exclude intercompany balances that eliminate upon consolidation.

---

| | |
|:---|:---|
| (Dollars in thousands) | **As of** <br>**December 31,**<br>|
| (Dollars in thousands) | **2025** |
| **Assets of consolidated VIEs, included in total assets above:** |  |
| Cash and cash equivalents ................................................................................................................ | $13882 |
| Prepaid expenses and other .............................................................................................................. | 545 |
| Total current assets ........................................................................................................................ | 14427 |
| Deposits ............................................................................................................................................ | 7158 |
| Construction-in-process ................................................................................................................... | 361213 |
| Total assets of consolidated VIEs ............................................................................................... | 382798 |
| **Liabilities of consolidated VIEs, included in total liabilities above:** |  |
| Accrued capital expenditures.............................................................................................................. | 17061 |
| Other current liabilities ....................................................................................................................... | 2970 |
| Total current liabilities ..................................................................................................................... | 20031 |
| Long-term debt, net of issuance costs ................................................................................................ | 142837 |
| Other long-term liabilities .................................................................................................................. | 1468 |
| Total liabilities of consolidated VIEs .......................................................................................... | 164336 |
| **Total net assets of consolidated VIEs ...............................................................................................** | $218462 |

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The accompanying notes are an integral part of these consolidated financial statements.

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**Fervo Energy Company and Subsidiaries**

Consolidated Statements of Operations

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| | | |
|:---|:---|:---|
| (Dollars and shares in thousands except per share amounts) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Dollars and shares in thousands except per share amounts) | **2025** | **2024** |
| Revenues ................................................................................................................... | $138 | $199 |
| Costs and expenses: |  |  |
| Operation and maintenance .................................................................................... | 388 | 380 |
| Research and development income, net .................................................................. | (133) | (97) |
| General and administrative expenses ..................................................................... | 38718 | 34735 |
| Operating lease expenses ....................................................................................... | 9681 | 6895 |
| Depreciation and amortization ................................................................................ | 290 | 124 |
| Operating loss ...................................................................................................... | (48806) | (41838) |
| Other income (expense): |  |  |
| Interest income ....................................................................................................... | 4192 | 1787 |
| Interest expense ...................................................................................................... | (8406) | (766) |
| Other non-operating expense .................................................................................. | (4767) | (237) |
| Loss before income taxes .......................................................................................... | (57787) | (41054) |
| Income tax expense ................................................................................................. | (1) | (56) |
| Net loss ..................................................................................................................... | $(57788) | $(41110) |
| Net loss per share information: |  |  |
| Net loss ................................................................................................................... | $(57788) | $(41110) |
| Less: Remeasurement of redeemable noncontrolling interest ................................. | (12727) |  |
| Net loss attributable to common shares, basic and diluted .................................... | (70515) | (41110) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares, basic and diluted ...................................................... | 12462 | 12438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss per share attributable to common stockholders, basic and diluted ...... | $(5.66) | $(3.31) |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**Fervo Energy Company and Subsidiaries**

Consolidated Statements of Redeemable Preferred Stock, Redeemable Noncontrolling Interest and Stockholders' Deficit

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Redeemable convertible** <br>**preferred stock** | **Redeemable convertible** <br>**preferred stock** | **Redeemable non-**<br>**controlling interest** | **Redeemable non-**<br>**controlling interest** | **Common stock** | **Common stock** | **Treasury stock** | **Treasury stock** | **Additional** <br>**paid-in** <br>**capital** | **Accumulated** <br>**deficit** | **Total** <br>**stockholders'** <br>**deficit** |
| (Dollars and shares in thousands) | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional** <br>**paid-in** <br>**capital** | **Accumulated** <br>**deficit** | **Total** <br>**stockholders'** <br>**deficit** |
| Balance at January 1, 2025 .... | 223458 | $561500 |  | $— | 12470 | $1 |  | $— | $2582 | $(179778) | $(177195) |
| Issuance of shares in <br>subsidiaries, net of <br>issuance cost of $973 .........<br>|  |  | 12 | 167203 |  |  |  |  |  |  |  |
| Remeasurement of <br>redeemable noncontrolling <br>interests ..............................<br>|  |  |  | 12727 |  |  |  |  | (5754) | (6973) | (12727) |
| Issuance of Series E-1 <br>redeemable convertible <br>preferred stock, net of <br>issuance cost of $558 .........<br>| 56537 | 461442 |  |  |  |  |  |  |  |  |  |
| Repurchase of shares ............. |  |  |  |  |  |  | 375 | (1960) |  |  | (1960) |
| Stock-based compensation .... |  |  |  |  |  |  |  |  | 2665 |  | 2665 |
| Exercise of stock-based <br>awards by employees and <br>directors ..............................<br>|  |  |  |  | 676 |  |  |  | 507 |  | 507 |
| Net loss .................................. |  |  |  |  |  |  |  |  |  | (57788) | (57788) |
| Balance at December 31, <br>2025 ....................................<br>| 279995 | $1022942 | 12 | $179930 | 13146 | $1 | 375 | $(1960) | $— | $(244539) | $(246498) |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**Fervo Energy Company and Subsidiaries**

Consolidated Statements of Redeemable Preferred Stock, Redeemable Noncontrolling Interest and Stockholders'

Deficit

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Redeemable convertible** <br>**preferred stock** | **Redeemable convertible** <br>**preferred stock** | **Common stock** | **Common stock** | **Additional** <br>**paid-in capital** | **Accumulated** <br>**deficit** | **Total** <br>**stockholders'** <br>**deficit** |
| (Dollars and shares in thousands) | **Shares** | **Amount** | **Shares** | **Amount** | **Additional** <br>**paid-in capital** | **Accumulated** <br>**deficit** | **Total** <br>**stockholders'** <br>**deficit** |
| Balance at January 1, 2024 ....... | 100768 | $182257 | 12341 | $1 | $1142 | $(138668) | $(137525) |
| Issuance of Series D-1 <br>redeemable convertible <br>preferred stock, net of <br>issuance costs of $1,090 .........<br>| 92344 | 232753 | —  |  |  |  |  |
| Conversion of 2023 convertible <br>notes to Series D-2 <br>redeemable convertible <br>preferred stock .......................<br>| 4766 | 12025 | —  |  |  |  |  |
| Issuance of Series D-3 <br>redeemable convertible <br>preferred stock, net of <br>issuance costs of $627 .............<br>| 25468 | 133873 | —  |  |  |  |  |
| Conversion of Simple <br>Agreement for Future Equity <br>("SAFE") to Series D-4 <br>redeemable convertible <br>preferred stock ........................<br>| 112 | 592 | —  |  |  |  |  |
| Stock-based compensation ........ | —  | —  | —  |  | 1370 |  | 1370 |
| Exercise of stock-based awards <br>by employees and directors ....<br>| —  | —  | 129 |  | 70 |  | 70 |
| Net loss ....................................... | —  | —  | —  |  |  | (41110) | (41110) |
| Balance at December 31, 2024 . | 223458 | $561500 | 12470 | $1 | $2582 | $(179778) | $(177195) |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**Fervo Energy Company and Subsidiaries**

Consolidated Statements of Cash Flows

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Dollars in thousands) | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net loss ..................................................................................................................... | $(57788) | $(41110) |
| Adjustments to reconcile net loss to net cash used in operating activities:  |  |  |
| Depreciation and amortization ............................................................................. | 290 | 124 |
| Amortization of debt issuance costs ..................................................................... | 1946 | 689 |
| Stock-based compensation ................................................................................... | 2665 | 1370 |
| Non-cash expense related to long-term operating leases ..................................... | 3973 | 4091 |
| Non-cash expense related to warrant valuation .................................................... | 3390 |  |
| Non-cash expense related to derivative valuation ................................................ | 1680 |  |
| Changes in operating assets and liabilities: ......................................................... |  |  |
| Grant receivables .............................................................................................. |  | (1764) |
| Prepaid expenses and other .............................................................................. | (1797) | (7043) |
| Other ............................................................................................................... |  | (7430) |
| Deposits ........................................................................................................... | 9785 | (7106) |
| Accounts payable ............................................................................................. | (2857) | 3503 |
| Other current liabilities ................................................................................... | 6956 | (72) |
| Net cash used in operating activities .......................................................... | (31757) | (54748) |
| **Cash flows from investing activities:** |  |  |
| Capital expenditures ................................................................................................. | (465659) | (178693) |
| Net cash used in investing activities .................................................................... | (465659) | (178693) |
| **Cash flows from financing activities:** |  |  |
| Proceeds from issuance of common stock ................................................................ | 492 | 70 |
| Proceeds from issuance of redeemable convertible preferred stock .......................... | 462000 | 368343 |
| Issuance costs related to redeemable convertible preferred stock ............................. | (558) | (1717) |
| Proceeds from issuance of subsidiary stock .............................................................. | 168176 |  |
| Issuance costs related to subsidiary stock .................................................................. | (973) |  |
| Proceeds from issuance of warrants .......................................................................... | 6824 |  |
| Proceeds from issuance of SAFE .............................................................................. |  | 500 |
| Proceeds from long-term debt .................................................................................. | 134961 | 40684 |
| Debt issuance costs related to long-term debt .......................................................... | (3155) | (4126) |
| Treasury stock purchased .......................................................................................... | (1943) |  |
| Net cash provided by financing activities ............................................................ | 765824 | 403754 |
| Net change in cash and cash equivalents and restricted cash ................................... | 268408 | 170313 |
| Cash and cash equivalents and restricted cash at beginning of period ..................... | 199428 | 29115 |
| Cash and cash equivalents and restricted cash at end of period ............................... | $467836 | $199428 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Accrued capital expenditures (at end of period) ....................................................... | 129051 | 54146 |
| Adjustment of redeemable noncontrolling interest .................................................... | 12727 |  |
| Cash paid for interest, net of amounts capitalized ..................................................... | 8266 |  |
| Cash paid for taxes .................................................................................................... | 52 | 2 |
| Non-cash activity related to conversion of convertible note .................................... |  | 12025 |
| Non-cash activity related to conversion of SAFE ..................................................... |  | 592 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

**NOTE 1 – NATURE OF BUSINESS**

Fervo Energy Company (the "Company" or "Fervo") is a Delaware Corporation formed on May 27, 2017, to

commercialize technology to own, develop, and operate geothermal assets. Fervo's innovations include technologies

such as advanced computational models, horizontal drilling, and distributed fiber optic sensing that were developed

with various partners to increase the productivity and lifetime of geothermal wells. The Company's geographical

area of operation is in the western region of the United States.

The U.S. federal government encourages production of electricity from geothermal resources. The Company

requested and received grants for research and development and project development from the Department of

Energy ("DOE").

As of December 31, 2025, the Company has not yet commenced principal operations. The Company's activities

to date have been primarily focused on technological development, capital raising, and the establishment of

geothermal production capabilities.

**NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The consolidated financial statements are prepared in accordance with accounting principles generally accepted

in the United States of America ("U.S. GAAP") and include the accounts of the Company and of all majority-owned

subsidiaries in which the Company exercises control over operating and financial policies. Intercompany accounts

and transactions have been eliminated in consolidation. Certain amounts reported in the prior year have been

reclassified to conform to the current year's presentation.

***Use of Estimates in Preparation of Consolidated Financial Statements***

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to

make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of

contingent assets and liabilities at the dates of such consolidated financial statements and the reported amounts of

revenues and expenses during the reporting periods. Actual results could differ from those estimates, and such

differences could be material to the Company's consolidated financial statements.

The most significant estimates and assumptions affecting the Company's consolidated financial statements

relate to the evaluation of long-lived assets for impairment, asset retirement obligations at initial recognition,

valuation of warrants, accounting for investments and joint ventures, determination of the incremental borrowing

rate ("IBR") used to measure lease liabilities, and the valuation of stock-based compensation awards. These

estimates require management to make judgments regarding future cash flows, discount rates, volatility assumptions,

credit risk, and other market-based and entity-specific inputs.

***Comprehensive Loss***

The Company does not have any other comprehensive income or loss for the years ended December 31, 2025

and 2024. As such, net loss and comprehensive loss are the same for the periods presented.

***Cash and Cash Equivalents and Restricted Cash***

The Company considers all highly liquid instruments, with an original maturity of three months or less, to be

cash equivalents. Under the terms of certain contracts, the Company is required to maintain an escrow account that

serves as a development security and is classified as restricted cash.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

The following table represents the Company's cash and cash equivalents and restricted cash:

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **As of December 31,** | **As of December 31,** |
| (Dollars in thousands) | **2025** | **2024** |
| Cash ................................................................................................................... | $19844 | $7511 |
| Money market .................................................................................................... | 441992 | 185917 |
| Restricted cash ................................................................................................... | 6000 | 6000 |
| Total cash and cash equivalents and restricted cash .......................................... | $467836 | $199428 |

---

***Deposits and Other***

Deposits consist primarily of performance bonds for completion of projects and subsequent delivery of product

according to the contractual terms. As of December 31, 2025 and 2024 deposits totaled $15.2 million and $25.0

million, respectively. As of December 31, 2025 and 2024, prepaid annual service fees paid to a service provider

totaled $7.5 million and $7.5 million, respectively. As of December 31, 2025, $2.0 million is included in prepaid

expenses and other and $5.5 million is included in other long-term assets, whereas as of December 31, 2024, the

$7.5 million is included in other long-term assets.

***Exploration and Development Costs***

The Company capitalizes costs incurred in connection with the exploration and development of geothermal

resources once it acquires land rights to the geothermal resource. Prior to acquiring land rights, the Company makes

an initial assessment that an economically feasible geothermal reservoir is probable on that land. The Company

determines the economic feasibility of potential geothermal resources, with all available data and external

assessments. Costs associated with the initial assessment are expensed and included in research and development

expenses in the Consolidated Statements of Operations.

The Company obtains the right to conduct geothermal development and operations on land owned by the

Bureau of Land Management ("BLM"), various states or with private parties. The annual land lease payments made

during the exploration, development and construction phase are reflected as operating lease expenses in the

Consolidated Statements of Operations.

Following the acquisition of land rights to the potential geothermal resource, the Company conducts further

studies and surveys, including water and soil analyses, among others. The Company then initiates a suite of

geophysical surveys to assess the resource and determine drilling locations. If the results of these activities support

the initial assessment of the feasibility of the geothermal resource, the Company then proceeds to exploratory

drilling and other related activities which may include drilling of temperature gradient holes, drilling of slim holes,

building access roads to drilling locations, drilling full size production and/or injection wells and flow tests. Costs

associated with these activities and other directly attributable costs, including permitting costs, are capitalized. If the

Company concludes that a geothermal resource will not support commercial operations, capitalized costs are

expensed in the period such determination is made.

All exploration and development costs that are being capitalized will be depreciated over their estimated useful

lives when the related geothermal well is substantially complete and ready for use. A geothermal well is

substantially complete and ready for use when electricity generation commences.

***Property, Plant and Equipment, Net***

Construction-in-process represents the capitalized costs related to power plants. All costs associated with the

acquisition, development and construction of power plants are capitalized. Major improvements will be capitalized

and repairs and maintenance will be expensed. Property, plant and equipment for power plants will be stated at cost,

net of accumulated depreciation.

Other property, plant and equipment, net included within other long-term assets was $3.7 million and $0.8

million as of December 31, 2025 and 2024, respectively, and consist of leasehold improvements, equipment, and

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

office equipment and furniture. Other property, plant and equipment are depreciated using the straight-line method

over the following estimated useful lives of the assets:

---

| | |
|:---|:---|
|  | **Useful lives** |
| Leasehold improvements ...................................................................................................................... | 5 years |
| Equipment ............................................................................................................................................. | 15 years |
| Office equipment .................................................................................................................................. | 5 years |
| Office furniture ..................................................................................................................................... | 7 years |

---

***Capitalized Interest Costs***

Interest incurred during the construction period of certain property, plant and equipment is capitalized until the

underlying assets are placed in service, at which time amortization of the capitalized interest begins, straight-line,

over the estimated useful lives of the related assets. Capitalized interest was $8.5 million and $0.9 million for the

years ended December 31, 2025 and 2024, respectively.

***Asset Retirement Obligations***

The Company accounts for asset retirement obligations ("ARO") in accordance with Accounting Standards

Codification ("ASC") 410-20, *Asset Retirement and Environmental Obligations*. The Company's AROs primarily

relate to the future costs of plugging and abandoning geothermal wells and restoring the land to its original condition

as required by applicable laws and regulations.

The Company recognizes the fair value of a liability for an ARO in the period in which it is incurred, if a

reasonable estimate of fair value can be made. The ARO liability represents the present value of the estimated future

costs to retire the asset, discounted using the Company's credit-adjusted risk-free rate at the time the obligation is

incurred.

A corresponding amount equal to the ARO liability is capitalized as part of the carrying amount of the related

long-lived asset and depreciated on a straight-line basis over the useful life of the asset. The ARO liability is

accreted each period to reflect the passage of time, with accretion expense recognized as a component of operating

expense. The ARO liability is included within Other long-term liabilities on the Consolidated Balance Sheets.

Revisions to estimated future cash flows or timing are recognized as increases or decreases to both the ARO

liability and the related asset. The costs are ultimately settled when the wells and facilities are plugged, dismantled,

and the site is restored in accordance with regulatory requirements.

***Impairment of Long-lived Assets***

The Company evaluates long-lived assets, such as construction-in-process and right-of-use ("ROU") assets for

impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be

recoverable. Factors which could trigger an impairment include, a significant decrease in the market price, a change

in the extent or manner in which a long-lived asset is being used or in its physical condition, adverse change in legal

factors or in the business climate, significant increase in costs necessary to complete a project, current period

operating or cash flow loss combined with a history of operating or cash flow losses, or when it concludes that it is

more likely than not that an asset will be disposed of or sold. No impairment of long-lived assets was recorded

during the years ended December 31, 2025 and 2024.

***Leases***

The Company determines if an arrangement contains a lease at inception. Operating leases are recorded on the

Consolidated Balance Sheets as ROU assets and lease liabilities. Lease liabilities are measured at the present value

of the remaining lease payments, discounted using the Company's IBR at lease commencement, unless the rate

implicit in the lease is readily determinable.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

ROU assets are initially measured based on the lease liability, adjusted for any prepaid or upfront bonus

payments, lease incentives received, and initial direct costs incurred. In the initial measurement, the Company

recognizes payments associated with renewal options when it is reasonably certain that the Company will exercise

that option. Lease expenses for operating leases are recognized on a straight-line basis over the lease term.

Certain of the Company's geothermal leases require production-based royalty payments, which may be

calculated as a percentage of the gross proceeds earned by the Company over the lease term. Royalty rates vary

based on several factors, including the type of lessor (e.g., federal, state or private) and the progression of the lease

term. These royalty payments are considered variable lease payments that do not depend on an index or a rate.

Accordingly, they are excluded from the initial measurement of the lease liability and are recognized as a variable

lease expense as incurred.

The Company elected the practical expedient to not separate lease and non-lease components for all classes of

underlying assets. Additionally, the Company has elected not to recognize leases with an original term of 12 months

or less on the Consolidated Balance Sheets.

***Research and Development***

Research and development costs incurred by the Company for the development of existing and new geothermal

and related technologies are expensed as incurred. Gross research and development expense totaled less than $0.1

million and $2.6 million for the years ended December 31, 2025 and 2024, respectively. The 2025 expense primarily

related to the Direct Air Capture ("DAC") Hub, while the 2024 expense was primarily associated with Project Red, a

commercial pilot developed in partnership with NGP Blue Mountain I, LLC ("NGP").

Per the agreement, the Company provided the design, engineering, construction and installation of its

proprietary geothermal well and reservoir engineering solutions (the "System"). In November 2023, the System

began flowing commercial quantities of geothermal energy to NGP during the Initial Production period and the

Commercial Operation date was declared on April 30, 2024. Upon achieving commercial operation, the Company

began providing non-routine maintenance of the System.

***Stock-based Compensation***

Stock-based compensation expense related to stock-based awards is recognized based on the fair value of the

awards granted. The fair value of each stock option award is estimated on the grant date utilizing the Black-Scholes

option-pricing model. The stock options issued are equity classified. The related stock-based compensation expense

is recognized on a straight-line basis over the requisite service period of the awards, and there are no additional

conditions for vesting other than service conditions. Forfeitures are accounted for as they occur.

The Black-Scholes option-pricing model requires the input of highly subjective assumptions, including the fair

value of the underlying common stock, the expected term of the stock option, the expected volatility of the price of

the Company's common stock, risk-free interest rates, and the expected dividend yield of common stock. The

assumptions used to determine the fair value of the option awards represent management's best estimates. These

estimates involve inherent uncertainties and the application of management's judgment.

***Net Income (Loss) Per Share***

The Company follows the two-class method when computing net income (loss) per share. The two-class method

requires income available to common shareholders for the period to be allocated between common and participating

securities based upon their respective rights to receive distributions as if all income for the period had been

distributed. Preferred shares are participating securities because they are entitled to undistributed earnings based on

the liquidation preferences. Preferred shares do not have the contractual obligation to share in the losses of the

Company on a basis that is objectively determinable. Therefore, they are excluded from the allocation of

undistributed losses in determining net loss per share.

Basic net income (loss) per share is computed by dividing the net income (loss) attributable to the common

shareholders by the weighted average number of common shares outstanding during the period. Diluted net income

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

(loss) is computed by adjusting net income (loss) to reallocate undistributed earnings based on the potential impact

of dilutive securities. Diluted net income (loss) per share is computed by dividing the diluted net income (loss) by

the weighted average number of common shares outstanding during the period, including potential dilutive common

shares assuming the dilutive effect of common shares equivalents.

***Fair Value***

The fair value measurement guidance clarifies that fair value represents the amount that would be received upon

selling an asset or paid upon transferring a liability in an orderly transaction between market participants at the

measurement date. As such, fair value is a market-based measurement that should be determined based on

assumptions that market participants would use in pricing an asset or liability. The guidance establishes a fair value

hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the

highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1

measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair

value hierarchy under the fair value measurement guidance are described below:

*Level 1* — unadjusted observable inputs that reflect quoted prices for identical assets or liabilities in active

markets;

*Level 2* — inputs other than quoted prices included in Level 1 that are observable for the asset or liability either

directly or indirectly;

*Level 3* — unobservable inputs.

The carrying value of the Company's cash and cash equivalents, grants receivable, prepaid expenses and other,

accounts payable, accrued capital expenditures, operating lease liabilities and other current liabilities reported on the

Consolidated Balance Sheets approximate fair value due to the short-term nature of the instruments. The Company's

preferred stock warrants ("Warrants") are measured at fair value on a recurring basis and are classified within Level

3 of the fair value hierarchy due to the use of significant unobservable inputs in the valuation model. The carrying

value of non-financial assets, such as construction-in-progress, is adjusted to fair value on a non-recurring basis

when they are impaired. During the years ended December 31, 2025 and 2024, there were no transfers between the

fair value hierarchy levels.

***Income Taxes***

The Company files a corporate income tax return. Deferred taxes are provided on a liability method whereby

deferred tax assets are recognized for deductible temporary differences and operating losses and tax credit

carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences

are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are

reduced by a valuation allowance when, in the opinion of management, it is "more likely than not" that some portion

or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of

changes in tax laws and rates on the date of enactment.

The Company reviews its tax benefits claimed or expected to be claimed on its tax return for uncertainty. The

Company recognizes a tax benefit from an uncertain tax position only if it is "more likely than not" that the tax

position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax

benefits recognized in the consolidated financial statements from such a position are measured based on the largest

benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement.

The Company has historically and continues to incur research and development costs. These costs have

historically been capitalized and amortized for tax purposes according to Section 174 beginning in tax year 2022 to

2024. Beginning in 2025, the Company can either expense immediately research and development costs incurred in

the United States or capitalize and amortize over a period of fifteen years after the passage of the One Big Beautiful

Bill ("OBBB"). In addition, the Company is still considered to be in a start-up phase. Startup costs are capitalized

and amortized over a period of 15 years in accordance with Section 195.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

***Government Grants***

The Company receives funding from the DOE, primarily through cost-share cooperative agreements, research

grants, and development contracts that support the advancement of enhanced geothermal system ("EGS")

technologies and related infrastructure.

The Company recognizes grant proceeds when the qualifying expenditures or performance conditions specified

in the grant agreement have been incurred. Grant receivables are recorded when the Company has satisfied the

applicable grant conditions and management determines that collection from the granting agency is probable based

on the executed agreement and the Company's compliance with the grant requirements.

Reimbursement-type awards (DOE cost-share agreements) are recognized on a systematic basis over the periods

in which the related qualifying expenditures are incurred. Grant proceeds that offset capitalized project costs are

recorded as a reduction of the construction-in-process on the Consolidated Balance Sheets. Grant proceeds related to

research and development offset the research and development costs in the Consolidated Statements of Operations.

***Debt Issuance Costs***

Debt issuance costs for term loans are presented as a direct deduction from the carrying amount of the related

debt and are amortized over the life of the respective borrowing in the Consolidated Statements of Operations in

interest expense. As of December 31, 2025 and 2024, the Company had $2.8 million and $1.6 million, respectively,

in unamortized debt issuance costs.

Debt issuance costs for credit facility agreements are treated as an asset and amortized over the term of the loan

in the Consolidated Statements of Operations in interest expense. As of December 31, 2025 and 2024, the Company

had $2.3 million and $2.1 million, respectively, in unamortized debt issuance costs.

***Power Purchase Agreements***

The Company's business model focuses on developing, constructing, and operating geothermal power

generation facilities that provide fixed-price, clean baseload electricity to utilities and other creditworthy off-takers.

The Company expects to generate revenue primarily from the sale of bundled capacity, power, and related attributes

under long-term Power Purchase Agreements ("PPA"). Pricing under these PPAs is generally fixed for the duration

of the contract, although some of the Company's PPAs may have price escalators based on an index or other rates

specified in the applicable PPA. The Company's current PPAs have an initial term of 15 years. The Company's

PPAs are expected to go into effect starting in 2026.

The current portfolio of PPAs is associated with two separate facilities: a geothermal project located in Beaver

County, Utah, and a geothermal project located in Churchill County, Nevada. These facilities are part of larger

geothermal developments and may be expanded over time. The current facilities are both integrated into the

California Independent System Operator ("CAISO") grid network via Dynamic Resource-Specific System Resource

designations. The Company will manage energy scheduling and CAISO market participation.

Management assesses each PPA for the existence of leases under ASC Topic 842, *Leases* ("ASC 842"). If a

PPA is or contains a lease, it will be accounted for under ASC 842. If not a lease, Management assesses each PPA

under ASC 815, *Derivatives and Hedging* ("ASC 815"). If a PPA is or contains a derivative, it will be accounted for

under ASC 815. If a PPA is neither a lease nor a derivative, Management will account for the contract as a contract

with a customer under ASC Topic 606, *Revenue from Contracts with Customers* ("ASC 606"). No PPAs have been

determined to be or contain a lease. While PPAs may meet the definition of a derivative under ASC 815, the

Company has elected to apply the Normal Purchase Normal Sale scope exception to the power sales given that they

represent sales of power made in the ordinary course of business. Therefore, the PPAs are accounted for as

executory contracts and will be recognized under ASC 606 at the point in time sales commence.

***Revenue***

During the years ended December 31, 2025 and 2024, revenue includes ancillary fees associated with rights to

geothermal production. These revenues are recognized as performance obligations are met. These revenues are not

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

material to the consolidated financial statements. The Company has not yet commenced large-scale commercial

electricity generation, and the Company has not generated revenue from utility-scale geothermal power sales or

PPAs during the periods presented.

***Variable Interest Entities***

The Company evaluates its involvement with legal entities to determine whether they are VIEs under ASC 810,

*Consolidation* ("ASC 810"). An entity is a VIE when it lacks sufficient equity at risk or when the equity holders lack

the characteristics of a controlling financial interest. When the Company has a variable interest in a VIE, it assesses

whether it is the primary beneficiary, which requires both (i) the power to direct the activities that most significantly

affect the VIE's economic performance and (ii) the obligation to absorb losses or the right to receive benefits that

could be significant.

Determining whether the Company is the primary beneficiary requires judgment and may change as

arrangements evolve. The Company performs an ongoing reassessment of its variable interests and primary

beneficiary status whenever reconsideration events occur, including changes in ownership, governance, contractual

arrangements, financing structures, or other relevant facts and circumstances.

As part of its geothermal development activities, the Company may enter into project-level entities, financing

structures, or partnership arrangements that give rise to variable interests. Where the Company is the primary

beneficiary, the VIE is consolidated and its assets, liabilities, and results are included in the consolidated financial

statements; noncontrolling interest may be recorded if the Company does not own 100% of the outstanding equity of

the VIE. Where the Company is not the primary beneficiary, its interests are accounted for under the equity method

or other applicable guidance, and the Company's exposure to loss is limited to its investment and any contractual

support. As of December 31, 2025, all VIEs are consolidated by the Company.

***Warrants Liability***

The Company determines the accounting classification of warrants it issues as either liability or equity classified

by first assessing whether the warrants meet liability classification in accordance with ASC 480, *Distinguishing* 

*Liabilities from Equity* ("ASC 480"), then in accordance with ASC 815. Under ASC 480, warrants are considered

liability classified if the warrants are mandatorily redeemable, obligate the Company to settle the warrants or the

underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable

number of shares. If warrants do not meet liability classification under ASC 480, the Company assesses the

requirements under ASC 815, which states that contracts that require or may require the issuer to settle the contract

for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers

the net cash settlement feature. If the warrants do not require liability classification under ASC 815, and in order to

conclude equity classification, the Company also assesses whether the warrants are indexed to its common stock and

whether the warrants are classified as equity under ASC 815 or other applicable GAAP. After all relevant

assessments, the Company concludes whether the warrants are classified as liability or equity. Liability classified

warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value

after the issuance date recorded in the Consolidated Statements of Operations. Liability classified warrants are

included within Other long-term liabilities on the Consolidated Balance Sheets. Equity classified warrants only

require fair value accounting at issuance with no changes recognized subsequent to the issuance date. The Company

does not currently have any equity classified warrants.

***Recent Accounting Pronouncements***

The Company continuously monitors and evaluates new accounting pronouncements issued by the Financial

Accounting Standards Board to determine their potential impact on the Company's consolidated financial statements

and related disclosures, with particular focus on standards that may affect the Company's unique geothermal

development activities, long-term asset accounting, and revenue recognition as it scales its commercial operations.

As of December 31, 2025 and 2024, the Company evaluated several recently issued accounting standards, including

the following that may have implications on its financial reporting, as discussed below.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

The Company is an emerging growth company ("EGC") as defined in the Jumpstart Our Business Startups Act

of 2012 ("JOBS Act"). As an EGC, the Company has elected to use the extended transition period for adopting new

or revised accounting standards that have different effective dates for public and private companies until the earlier

of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the

extended transition period provided in the JOBS Act, while also maintaining the ability to early adopt certain

accounting pronouncements.

*Accounting Standards Recently Implemented*

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, Income Taxes

(Topic 740), "Improvements to Income Tax Disclosures," which establishes new income tax disclosure requirements

in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must

consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also

further disaggregate income taxes paid. The standard is intended to benefit stockholders by providing more detailed

income tax disclosures that would be useful in making capital allocation decisions. The guidance applies to all

entities subject to income taxes and is effective for annual periods beginning after December 15, 2024. The guidance

will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is

permitted. The Company adopted this standard on a prospective basis for the year ended December 31, 2025. See

Note 18 – Income Taxes for additional information.

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment

Reporting (Topic 280), "Improvements to Reportable Segment Disclosures," which requires disclosure of significant

segment expenses regularly provided to the chief operating decision maker ("CODM") and included within each

reported measure of segment profit or loss. All disclosure requirements in this standard are required for entities with

a single reportable segment. The standard is effective for fiscal years beginning after December 15, 2023, and

interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The

amendments should be applied on a retrospective basis to all periods presented. The Company adopted the standard

in the year ended December 31, 2024. The adoption of ASU 2023-07 resulted in an additional segment reporting

disclosure in the Company's consolidated financial statements, with no impact to the Company's financial position

or results of operations. See Note 15 – Segment Information for additional information.

*Accounting Standards to be Implemented*

In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270) Narrow-Scope

Improvements", which clarifies interim disclosure requirements and the applicability of Topic 270. The objective of

the update is to provide clarity about current interim requirements. The amendments in this update also include a

disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have

a material impact on the entity. The amendments in this ASU are required to be adopted for interim reporting

periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The

Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-10, "Government Grants (Topic 832): Accounting for

Government Grants Received by Business Entities", which establishes authoritative guidance on the accounting for

government grants received by business entities. This update will be effective for annual reporting periods beginning

after December 15, 2028, and interim reporting periods within those annual reporting periods. Early adoption

permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and

related disclosures.

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", which

requires disclosure of additional information about certain income statement expense categories. The new standard

should be applied prospectively with retrospective application and early adoption permitted. In January 2025, the

FASB issued ASU 2025-01, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation

Disclosures (Subtopic 220-40)." This update amends the effective date of ASU 2024-03 to clarify that all public

business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026,

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

and interim periods within annual reporting periods beginning after December 15, 2027. The Company is evaluating

the impact of this guidance on its consolidated financial statements and related disclosures.

*Recent Legislation Matters*

On July 4, 2025, the OBBB was signed into law, repealing and phasing out certain energy tax credits from the

Inflation Reduction Act of 2022 ("IRA"). The OBBB modifies the qualifications for Production Tax Credits

("PTC") and Investment Tax Credits ("ITC"), affecting eligibility based on construction timelines and foreign

involvement. It also allows full depreciation of certain geothermal power plant costs in the service year. When

claiming tax credits, ITCs reduce the depreciation tax basis by half the credit amount, while PTCs do not. The

Company is continuing to evaluate the effect of the OBBB on its consolidated financial statements and related

disclosures. The ultimate impact will depend on the Company's project construction timelines, tax credit elections,

and forthcoming interpretive guidance, and therefore cannot be reasonably estimated as of December 31, 2025.

**NOTE 3 – DEBT AND OFF-BALANCE SHEET ARRANGEMENTS**

Long-term debt, net of issuance costs, consisted of the following:

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **As of December 31,** | **As of December 31,** |
| (Dollars in thousands) | **2025** | **2024** |
| **Long-term debt** |  |  |
| XRC Term Loan ............................................................................................ | $145600 | $40639 |
| Mercuria ........................................................................................................ | 30000 |  |
| **Total principal due for long-term debt ........................................................** | 175600 | 40639 |
| Less: Unamortized debt issuance cost .......................................................... | (2763) | (1620) |
| **Total long-term debt, net of issuance costs ....................................................** | $172837 | $39019 |

---

***XRC Term Loan Agreement***

In August 2024, Cape Generating Station 3 LLC and Cape Generating Station 5 LLC, wholly owned

subsidiaries of the Company, issued two promissory notes under a loan agreement with XRL ALC, LLC ("XRC").

Tranche A includes notes of up to $64.0 million and Tranche B includes notes of up to $36.0 million. In May 2025,

Cape Generating Station 3 LLC and Cape Generating Station 5 LLC entered into the First Amendment to the credit

agreement. In connection with the amendment, the Company issued an additional promissory note of $45.6 million

under Tranche C. In September 2025, the Company entered into a Second Loan Modification Agreement with XRC,

which included updates to certain terms of the credit agreement, including provisions related to the prepayment of

the loan. Under the modified terms, the Company is required to pay a prepayment premium upon repayment of the

outstanding borrowings under the facility. The Company entered into these agreements to fund the construction of

subsurface and surface facilities to be utilized in the generation of geothermal power. The maturity date of Tranche

A, Tranche B, and Tranche C of the term loan is August 13, 2027. Upon lender approval, the Company may elect to

extend the maturity date for two additional one-year periods. Interest charges are accrued and are indexed to the

prime rate, subject to a spread of 3.5% and a floor of 11%. As of December 31, 2025 and 2024, $145.6 million and

$40.6 million, respectively, was drawn which is offset by the remaining unamortized debt issuance costs of $2.8

million and $1.6 million, respectively. Total debt issuance costs incurred totaled $1.9 million and $1.8 million in

connection with the note for the years ended December 31, 2025 and 2024, respectively. The estimated fair value as

of December 31, 2025 and 2024 was $140.7 million and $43.2 million, respectively using a discounted cash flow

model based on current market interest rates for similar instruments, which is classified as Level 2 in the fair value

hierarchy. The XRC Term Loan Agreement includes customary affirmative and negative covenants, including

payment and covenant events of default. These covenants restrict the Company's ability to incur or assume

additional indebtedness, grant or assume liens, engage in fundamental changes such as mergers, consolidations,

liquidations, or the sale of substantially all assets, make restricted payments, modify project documents in ways

materially adverse to the lender, engage in transactions with affiliates, or enter into restrictive agreements.

Separately, if an event of default occurs, the lender may cease making any further loan advances and/or declare all

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

outstanding obligations immediately due and payable. As of December 31, 2025 and 2024, the Company was in

compliance with all covenants.

Under the terms of the XRC Loan Agreement, the promissory notes are secured on a first-priority basis by a lien

on all the assets of Cape Generating Station 3 LLC and Cape Generating Station 5 LLC.

***Mercuria Credit Agreement and Letter of Credit Facility Agreement***

In November 2024, Fervo HoldCo LLC, a wholly owned subsidiary of the Company, entered into a

$40.0 million credit agreement and $80.0 million letter of credit facility agreement with Mercuria Energy Trading

SA ("Mercuria"). In May 2025, Fervo HoldCo LLC entered into the First Amendment to the credit agreement,

which increased the term loan commitment by $60.0 million, resulting in total borrowing capacity of $100.0 million.

The Company entered into the credit agreement to fund the development, construction and operation of geothermal

energy, transmission and delivery of renewable power. Due to the Company's early development stage, additional

credit support is required to support the execution of various agreements required for the Company's operations,

which is fulfilled through the letter of credit facility. This agreement allows the lender to issue letters of credit on the

Company's behalf, guaranteeing payment if Fervo were unable to fulfill its payment obligations under these

agreements. The maturity date of the credit agreement is November 20, 2027. Interest charges on the credit

agreement accrue at the secured overnight financing rate ("SOFR") plus a margin of 0.1% and an additional spread

of 7.5%.

As of December 31, 2025 and 2024, the Company had $30.0 million and no borrowing outstanding under the

credit agreement, respectively, and $35.5 million and $3.6 million outstanding under the letter of credit facility

agreement, respectively. In connection with the credit facility, the Company incurred debt issuance costs of $1.2

million and $2.2 million during the years ended December 31, 2025 and 2024, respectively. These costs are recorded

in other long-term assets on the Consolidated Balance Sheets and are amortized over the term of the credit

agreement.

The Mercuria Credit Agreement as well as the Letter of Credit Facility described below include various

affirmative and negative covenants including restrictions on the Company's ability to incur additional indebtedness,

grant liens, make restricted payments or investments beyond those existing at the effective date, engage in

fundamental changes such as mergers or asset sales, conduct affiliate transactions, enter swap agreements outside

ordinary business, modify organizational documents adversely to lenders, or change the Company's business nature.

Additionally, the Mercuria Credit Agreement requires compliance with financial covenants including (i) a net asset

to total exposure of not less than 2.5, (ii) a financial total debt to equity capital contributions not to exceed 0.6, and

(iii) total exposure to total consolidated capital not to exceed 0.4. As of December 31, 2025 and 2024, the Company

was in compliance with all covenants.

***Surety Bond Arrangements***

Fervo routinely arranges for the issuance of various forms of surety bonds to third parties in support of its

subsidiaries' contractual arrangements for power purchase agreements, land development agreements, and contracts

associated with development and construction of its power plants. In the event a subsidiary were to fail to perform

its obligations under a contract supported by such a surety bond, and the issuing bank or surety were to make

payment to the third party, the Company would be responsible for reimbursing the issuing bank or surety within an

agreed timeframe, typically a period of one to five days. To the extent liabilities are incurred as a result of activities

covered by the surety bonds, such liabilities are included on the Consolidated Balance Sheets. As of December 31,

2025 and 2024, the Company has outstanding surety bonds totaling $57.5 million and $51.0 million, respectively.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

**NOTE 4 – ASSET RETIREMENT OBLIGATIONS**

The following table summarizes the changes in the Company's AROs for the periods indicated:

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **As of December 31,** | **As of December 31,** |
| (Dollars in thousands) | **2025** | **2024** |
| Beginning balance ............................................................................................. | $299 | $— |
| Liabilities incurred during the period ............................................................... | 843 | 299 |
| Accretion expense ............................................................................................. | 51 |  |
| Ending balance .................................................................................................. | $1193 | $299 |

---

**NOTE 5 – OTHER CURRENT LIABILITIES**

The schedule below details the Company's other current liabilities presented on the Consolidated Balance

Sheets for the periods indicated:

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **As of December 31,** | **As of December 31,** |
| (Dollars in thousands) | **2025** | **2024** |
| Accrued expenses .............................................................................................. | $9035 | $2848 |
| Bonus accrual ..................................................................................................... | 4830 | 2591 |
| Derivative ........................................................................................................... | 1680 |  |
| Deferred grant income ....................................................................................... | 888 | 1479 |
| Payroll liabilities ................................................................................................ | 564 | 74 |
| Total other current liabilities ............................................................................. | $16997 | $6992 |

---

Note: Deferred grant income is attributable to a grant with an organization for the Company to provide research

and development.

**NOTE 6 – LEASES**

BLM geothermal leases provide the geothermal lessee the right and privilege to drill for, extract, produce,

remove, utilize, sell, and dispose of geothermal resources on certain lands, together with the right to build and

maintain necessary improvements thereon. The actual ownership of the geothermal resources and other minerals

beneath the land is retained in the federal mineral estate. The geothermal lease does not grant the geothermal lessee

the exclusive right to develop the lands, although the geothermal lessee does hold the exclusive right to develop

geothermal resources within the lands. Since BLM leases do not grant to the geothermal lessee the exclusive right to

use the surface of the land, BLM may grant rights to others for activities that do not unreasonably interfere with the

geothermal lessee's uses of the same land, including use, off-road vehicles, and/or wind or solar energy

developments. The Company has domestic leases on federal, state, and private land in California, Colorado, Idaho,

Nevada, New Mexico, Utah and Washington.

The Company also has leases for its office space and field vehicles. The Company recognized $9.7 million and

$6.9 million, respectively, in total lease expense as reflected in operating lease expenses in the Consolidated

Statements of Operations for the years ended December 31, 2025 and 2024. Total cash payments related to leases

were $9.5 million and $2.8 million, respectively for the years ended December 31, 2025 and 2024.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

The following table presents information regarding operating leases recorded on the Consolidated Balance

Sheets where the Company is the lessee for the periods indicated.

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **As of December 31,** | **As of December 31,** |
| **Carrying values by asset category**  | **2025** | **2024** |
| **ROU Asset:** |  |  |
| Geothermal land leases ................................................................................. | $45609 | $24316 |
| Office space ................................................................................................... | 6635 | 952 |
| Equipment ..................................................................................................... | 6188 |  |
| Vehicles ......................................................................................................... | 282 | 404 |
| Total ............................................................................................................ | $58713 | $25672 |
| **Lease Liability**<sup>(1)</sup>**:** |  |  |
| Geothermal land leases ................................................................................. | $62744 | $41420 |
| Office space ................................................................................................... | 8144 | 969 |
| Equipment ..................................................................................................... | 6300 |  |
| Vehicles ......................................................................................................... | 273 | 390 |
| Total ............................................................................................................ | $77461 | $42779 |

---

---

| | | |
|:---|:---|:---|
| **By asset category** | **As of December 31,** | **As of December 31,** |
| **By asset category** | **2025** | **2024** |
| **Weighted average remaining term** |  |  |
| Geothermal land leases ................................................................................. | 14 years | 16 years |
| Office space ................................................................................................... | 3 years | 1 year |
| Equipment ..................................................................................................... | 9 years |  |
| Vehicles ......................................................................................................... | 2 years | 3 years |
| **Weighted average discount rate**<sup>(2)</sup>**:** |  |  |
| Geothermal land leases ................................................................................. | 11% | 12% |
| Office space ................................................................................................... | 9% | 11% |
| Equipment ..................................................................................................... | 12% | —% |
| Vehicles ......................................................................................................... | 10% | 10% |

---

_________________

(1)The short-term and long-term lease liability totals $4.8 million and $72.6 million as of December 31, 2025, respectively, and $1.9

million and $40.9 million as of December 31, 2024.

(2)The discount rate for each category of assets represents the Company's IBR for leases.

The IBR is a significant estimate related to the Company's operating lease liabilities. It was calculated by

determining a credit rating based on credit metrics of comparable publicly traded companies, developing a yield

curve for publicly traded debt matching the credit rating, and then developing a weighted average IBR based on

those yield curves.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

The following is a schedule showing the Company's future minimum lease payments associated with the

operating leases together with the present value of the net minimum lease payments for the periods indicated.

---

| | |
|:---|:---|
| (Dollars in thousands) | **As of December 31,** |
| (Dollars in thousands) | **2025** |
| 2026 ................................................................................................................................................... | $6261 |
| 2027 ................................................................................................................................................... | 7235 |
| 2028 ................................................................................................................................................... | 6188 |
| 2029 ................................................................................................................................................... | 12035 |
| 2030 ................................................................................................................................................... | 11380 |
| Thereafter .......................................................................................................................................... | 133508 |
| Total minimum lease payments ............................................................................................... | $176607 |
| Less: Amount representing interest .................................................................................................. | 99146 |
| Total lease obligation .............................................................................................................. | $77461 |
| Less: Current lease obligation .......................................................................................................... | 4822 |
| Long-term lease obligation ...................................................................................................... | $72639 |

---

**NOTE 7 – CONCENTRATIONS**

All operations and efforts of the Company are focused in the geothermal industry and are subject to the related

risks of the industry. The Company's projects are located in Nevada and Utah. The Company faces competition

from geothermal developers as well as other renewable energy providers and developers.

Competition occurs in the very early stage of development. The early stage is primarily obtaining the rights to

the resource for development of future projects or acquiring a site already in a more advanced stage of development.

The Company is also potentially subject to concentrations of credit risk in its project deposits. However, the

Company has not historically experienced any write downs and management does not believe significant credit risks

exists as of December 31, 2025 and 2024.

**NOTE 8 – COMMON STOCK**

***Voting Rights***

The holders of common stock are entitled to one vote for each share on all voting matters other than matters that

solely relate to the terms of one or more outstanding series of preferred stock.

***Dividends and Liquidation Rights***

The Company cannot pay dividends on common stock unless the holders of the redeemable convertible

preferred stock outstanding at the time simultaneously receive a dividend on each outstanding share of preferred

stock as described in Note 9 – Redeemable Convertible Preferred Stock. During the years ended December 31, 2025

and 2024, no dividends on the Company's common stock have been paid or declared by the Company.

In the event of any voluntary or involuntary liquidation, dissolution, winding up of the Company, or any

deemed liquidation event, such as a merger or disposition of substantially all of the Company's assets ("Deemed

Liquidation Event"), holders of common stock are entitled to share in any distribution of assets remaining after

distributions to redeemable convertible preferred stockholders as described further below.

***Other Rights***

The holders of common stock are entitled to elect two directors to the Board of Directors ("Board") of the

Company.

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**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

***Restricted Net Assets***

Fervo HoldCo LLC, a wholly owned direct subsidiary of the Company, entered into the Mercuria Credit

Agreement, which includes certain covenants limiting the ability of the Company's subsidiaries to make cash

distributions to Fervo Energy Company, the parent entity. The net assets subject to restriction under the provisions

of the Mercuria Credit Agreement were estimated at $483.8 million and $243.6 million as of December 31, 2025

and 2024 respectively. The restricted amount represents the net assets of the subsidiaries subject to the distribution

limitations contained in the Credit Agreement and excludes the Company's stockholders' equity, which is not

considered an asset subject to such restrictions. See Note 3 – Debt and Off-Balance Sheet Arrangements for further

information regarding the Mercuria Credit Agreement.

**NOTE 9 – REDEEMABLE CONVERTIBLE PREFERRED STOCK**

As of December 31, 2025 and 2024, the Company authorized twelve and ten series of redeemable convertible

preferred stock, respectively.

As of December 31, 2025, redeemable convertible preferred stock consisted of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in thousands, except per share <br>amounts)<br>| **Shares** <br>**Authorized**<br>| **Shares Issued** <br>**and** <br>**Outstanding**<br>| **Issuance Price** <br>**Per Share**<br>| **Carrying Value** | **Aggregate** <br>**Liquidation** <br>**Preference**<br>|
| **As of December 31, 2025** |  |  |  |  |  |
| Series A .......................................... | 14542 | 14542 | 0.77 | $11250 | $11250 |
| Series A-1 ....................................... | 2453 | 2453 | 0.05 | 1897 | 1897 |
| Series B .......................................... | 24597 | 24596 | 1.15 | 28324 | 28324 |
| Series C-1 ....................................... | 43482 | 43482 | 2.53 | 110100 | 110100 |
| Series C-2 ....................................... | 5018 | 5018 | 2.03 | 12665 | 12665 |
| Series C-3 ....................................... | 10676 | 10676 | 1.69 | 18021 | 18021 |
| Series D-1 ....................................... | 92344 | 92344 | 2.53 | 232753 | 233843 |
| Series D-2 ....................................... | 4767 | 4767 | 2.15 | 12025 | 12025 |
| Series D-3 ....................................... | 25468 | 25468 | 5.28 | 133873 | 134500 |
| Series D-4 ....................................... | 112 | 112 | 4.49 | 592 | 592 |
| Series E-1 ....................................... | 56537 | 56537 | 8.17 | 461442 | 462000 |
| Series E-2 ....................................... | 3550 |  | 5.28 |  |  |
| Total ........................................... | 283546 | 279995 |  | $1022942 | $1025217 |

---

As of December 31, 2024, redeemable convertible preferred stock consisted of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in thousands, except per share <br>amounts)<br>| **Shares** <br>**Authorized**<br>| **Shares Issued** <br>**and** <br>**Outstanding**<br>| **Issuance Price** <br>**Per Share**<br>| **Carrying Value** | **Aggregate** <br>**Liquidation** <br>**Preference**<br>|
| **As of December 31, 2024** |  |  |  |  |  |
| Series A ........................................... | 14542 | 14542 | $0.77 | $11250 | $11250 |
| Series A-1 ....................................... | 2453 | 2453 | 0.05 | 1897 | 1897 |
| Series B ........................................... | 24596 | 24596 | 1.15 | 28324 | 28324 |
| Series C-1 ........................................ | 43482 | 43482 | 2.53 | 110100 | 110100 |
| Series C-2 ........................................ | 5018 | 5018 | 2.03 | 12665 | 12665 |
| Series C-3 ........................................ | 10676 | 10676 | 1.69 | 18021 | 18021 |
| Series D-1 ....................................... | 92344 | 92344 | 2.53 | 232753 | 233843 |
| Series D-2 ....................................... | 4767 | 4767 | 2.15 | 12025 | 12025 |
| Series D-3 ....................................... | 25468 | 25468 | 5.28 | 133873 | 134500 |

---

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in thousands, except per share <br>amounts)<br>| **Shares** <br>**Authorized**<br>| **Shares Issued** <br>**and** <br>**Outstanding**<br>| **Issuance Price** <br>**Per Share**<br>| **Carrying Value** | **Aggregate** <br>**Liquidation** <br>**Preference**<br>|
| Series D-4 ....................................... | 112 | 112 | 4.49 | 592 | 592 |
| Total .......................................... | 223458 | 223458 |  | $561500 | $563217 |

---

The holders of the redeemable convertible preferred stock have the following rights, preferences, and privileges:

*Voting Rights*

Each holder of redeemable convertible preferred stock is entitled to the number of votes calculated on an as

converted to common stock basis. The preferred stockholders vote together as a single class with the holders of

common stock.

*Dividends*

If a dividend is declared, the holders of the redeemable convertible preferred stock receive the same amount per

share as the common stockholders for the number of shares of common stock that would be received on an as

converted to common stock basis. No such dividends have been declared or paid during the years ended December

31, 2025 and 2024.

*Conversion*

Each share of redeemable convertible preferred stock is convertible at any time at the election of the holder into

common stock. The conversion rate is determined by dividing the original issue price, by the conversion price at the

time of conversion, with the conversion price initially equal to the original issue price, subject to customary anti-

dilutive adjustments for stock splits, dividends, and other applicable corporate events. As of December 31, 2025 and

2024, each share of redeemable convertible preferred stock was convertible into one share of common stock.

Conversion is mandatory upon the occurrence of either: (i) an initial public offering ("IPO") resulting in at least

$100.0 million in proceeds to the Company, net of underwriting discount and commissions, provided that the Series

E redeemable convertible preferred stock will only automatically convert if such IPO is also at a price per share of at

least $12.26 or (ii) the date and time, or the occurrence of an event, specified by vote or written consent of the

holders of a majority of the outstanding shares of redeemable convertible preferred stock, which must include Series

E holders. The mandatory conversion is subject to the then-effective conversion rate.

*Liquidation Preference*

In the event of any voluntary or involuntary liquidation, dissolution, winding up of the Company, or any

Deemed Liquidation Event, first the holders of the Series E redeemable convertible preferred stock are entitled to

receive proceeds in an amount which is the greater of: (x) the amount to be received if the redeemable convertible

preferred stock were converted into common stock immediately prior to the event, and (y) the original issue price

plus declared and unpaid dividends. If the distribution is insufficient to pay the holders the full amount to which they

are entitled, the holders of Series E convertible redeemable preferred stock will share ratably in any distribution of

assets in proportion to the shares held. After full payment to the Series E holders, the Series D holders are entitled to

receive proceeds using the same formula as described for the Series E holders above. After full payment to the

Series D holders, the holders of the Series A, Series B, and Series C redeemable convertible preferred stock are

entitled to the remaining funds available for distribution up to the greater of: (x) the amount to be received if the

redeemable convertible preferred stock were converted into common stock immediately prior to the event, and (y)

the original issue price plus declared and unpaid dividends. If the distribution is insufficient to pay the holders the

full amount to which they are entitled, the holders of the Series A, Series B, and Series C redeemable convertible

preferred stock will share ratably in any distribution of assets in proportion to the shares held.

*Redemption Rights*

Holders of the redeemable convertible preferred stock have redemption rights in the case of a Deemed

Liquidation Event, where the redeemable convertible preferred stockholders are entitled to proceeds as described

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

above. A Deemed Liquidation Event is deemed to be in the control of the redeemable convertible preferred

stockholders as the redeemable convertible preferred stockholders control the Board.

There are no redemption rights held by the Company as it relates to the redeemable convertible preferred stock.

*Protective Provisions*

The Series A, Series B, Series C, Series D, and Series E redeemable convertible preferred stockholders each as a

separate class have the ability to elect one member of the Board, for a total of five Board members. Additionally, the

Series A, Series B, Series C, Series D, and Series E redeemable convertible preferred stock have protective rights

that require a majority vote on matters such as liquidation events, changes to capital stock, changes to the number of

directors on the Board, or sales of significant assets outside the ordinary course of business.

The Series D redeemable convertible preferred stock includes protective rights requiring a majority vote on

matters such as those adversely impacting the rights of the Series D redeemable convertible preferred stock,

including those that impact the authorized number of Series D redeemable convertible preferred stock.

The Series E redeemable convertible preferred stock includes protective rights requiring a majority vote on

matters such as liquidation events unless Series E-1 holders receive at least 1.5 times the original issue price per

share until December 4, 2027, matters which adversely impact the rights of the Series E redeemable convertible

stock holders, including those that impact the authorized number of Series E redeemable convertible preferred stock,

and those that impact the authorized number of Series D redeemable convertible preferred stock.

*Classification of Redeemable Convertible Preferred Stock*

Although the Company's redeemable convertible preferred stock is not mandatorily redeemable, it is classified

outside of permanent equity because it is redeemable upon a Deemed Liquidation Event considered to be outside of

the Company's control. Accordingly, redeemable convertible preferred stock is presented as mezzanine equity on

the Consolidated Balance Sheets.

The redeemable convertible preferred stock is not remeasured to redemption value because a Deemed

Liquidation Event is not deemed probable of occurring as of December 31, 2025 and 2024, and therefore, these

instruments were not deemed probable of becoming redeemable.

**NOTE 10 – STOCK BASED COMPENSATION**

In 2019, the Company adopted a stock incentive plan (the "2019 Stock Incentive Plan" or the "Plan"). Awards

in the form of both incentive and non-qualified stock options, restricted stock, stock appreciation rights and other

stock-based awards may be made under the Plan.

In 2025, the Plan was amended to authorize additional shares that can be issued under the Plan, for up to

43,512,256 shares of common stock. In the event that shares previously issued under the Plan are reacquired by the

Company pursuant to a forfeiture provision, or repurchase by the Company, such shares shall be added back to the

number of shares then available for issuance under the Plan. Shares issued under the Plan may consist in whole or in

part of authorized but unissued shares or treasury shares. As of December 31, 2025 and 2024, 15,558,217 and

10,949,131 shares, respectively, were available for issuance under the Plan, and 280,000 shares were reserved for

restricted stock.

As of December 31, 2025, all outstanding stock-based awards were in the form of stock options issued to

employees. Options granted under the Plan are exercisable at various dates as determined upon grant and will expire

10 years from the date of grant. The exercise price of each option is determined by the Board based on the estimated

fair value of the Company's stock on the date of the grant. The exercise price shall not be less than 100% of the fair

market value of the Company's common stock at the time the option is granted. The stock options issued under the

Plan generally vest over a four-year period, with a one year cliff vest and monthly vesting thereafter until the four

year anniversary of the grant date. The impact of stock option exercises on cash flows is reflected in the financing

section of the Consolidated Statements of Cash Flows. The Company issues common stock upon the exercise of

stock options.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

The following table summarizes stock option activity under the Plan:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Stock options data and aggregate intrinsic <br>value in thousands)<br>| **Stock Options** <br>**Outstanding**<br>| **Weighted –** <br>**Average** <br>**Exercise Price**<br>| **Weighted –** <br>**Average Grant** <br>**Date Fair Value**<br>| **Weighted –** <br>**Average** <br>**Remaining** <br>**Contractual** <br>**Term (in years)**<br>| **Aggregate** <br>**Intrinsic Value**<br>|
| Outstanding at January 1, 2025 ........ | 16666 | $0.84 | $0.42 |  | $— |
| Granted ............................................. | 10704 | 3.08 | 1.44 |  |  |
| Exercised .......................................... | (676) | 0.76 | 0.39 |  | 760 |
| Forfeited ........................................... | (416) | 1.62 | 1.03 |  |  |
| Expired ............................................. | (161) | 0.59 | 0.30 |  |  |
| Outstanding at December 31, 2025 .. | 26117 | $1.75 | $1.10 | 8.36 | $65348 |
| Vested and exercisable at <br>December 31, 2025 ..........................<br>| 10466 | $0.80 | $0.40 | 7.09 | $36148 |

---

The intrinsic value for options exercised is the difference between the estimated fair value of the stock and the

exercise price of the stock option at the date of exercise. The Company received $0.5 million, and $0.1 million,

respectively, in cash from the exercise of stock options during the years ended December 31, 2025 and 2024.

The Black-Scholes option-pricing model assumptions used to value the employee stock options at the grant

dates were as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,**  | **Year ended December 31,**  |
|  | **2025** | **2024** |
| Fair value of common stock ..................................................................................... | $2.12 - $4.25 | $0.98 |
| Expected volatility .................................................................................................... | 75.0% | 70.0% |
| Expected term (in years) ........................................................................................... | 3.08 - 6.08 | 3.08 |
| Risk-free interest rate ................................................................................................ | 3.75% - 4.25% | 4.6% |
| Expected dividend yield ........................................................................................... | 0.0% | 0.0% |

---

The assumptions and estimates were determined as follows:

*Fair Value Per Share of the Company's Common Stock*—Because the Company's common stock is not yet

publicly traded, the Company must estimate the fair value of its common stock. The Board considers numerous

objective and subjective factors to determine the fair value of the Company's common stock at each meeting in

which awards are approved. The factors considered include, but are not limited to: (i) the results of

contemporaneous independent third-party valuations of the Company's common stock, (ii) the prices, rights,

preferences, and privileges of the Company's redeemable convertible preferred stock relative to those of its common

stock, (iii) the lack of marketability of the Company's common stock, (iv) the Company's actual operating and

financial performance and estimated trends and prospects for its future performance current business conditions and

financial projections, (v) the likelihood of achieving a liquidity event, such as an IPO, direct listing, or sale of the

Company, given prevailing market conditions; and (vi) precedent transactions involving the Company's shares.

*Stock-Based Compensation Expense*

During the years ended December 31, 2025 and 2024, the Company recorded $2.7 million and $1.4 million,

respectively, as stock-based compensation in the general and administrative expenses in the Consolidated Statements

of Operations.

As of December 31, 2025, unrecognized stock-based compensation expense related to unvested stock options

was $24.4 million, which is expected to be recognized over a weighted-average period of 3.63 years.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

**NOTE 11 – CONVERTIBLE NOTES**

On April 6, 2023, the Company entered into convertible notes ("2023 Notes") with a principal owner owning

greater than 10% of the Company, for a principal amount of $10.0 million in exchange for cash proceeds of $10.0

million. These 2023 Notes accrue interest at a rate of 3.1% per annum and mature on the earlier of April 6, 2025, or

upon a Change of Control or Liquidation Event, unless sooner converted in a Qualified Financing Transaction or

repaid. Upon consummation of a Qualified Financing Transaction, which consists of any transaction or series of

related transactions that results in issuance of a series of preferred stock with aggregate proceeds to the Company of

not less than $100.0 million, the 2023 Notes outstanding automatically convert into shares of a series of preferred

stock of the Company. The conversion price per share is equal to 85.0% of the relevant financing price per share and

the Company bifurcated from the 2023 Notes an embedded derivative representing the conversion. In February

2024, pursuant to the issuance of Series D-1 redeemable convertible preferred stock, a Qualified Financing

Transaction occurred and the 2023 Notes converted to Series D-2 redeemable convertible preferred stock, with a

value of $12.0 million, which included the $10.0 million face value, $0.3 million in accumulated interest, and the

$1.7 million settlement of the embedded derivative. Of the accumulated interest, $0.1 million of interest expense

was incurred during the year ended December 31, 2024.

In September 2024, the Company entered into a SAFE with an investor for cash proceeds of $0.5 million

("Development Investment Amount"). Upon consummation of an Equity Financing, which consists of any

transaction or series of related transactions that results in issuance of a series of preferred stock with a fixed

valuation, the holder of the SAFE has the option to convert the SAFE into shares of a series of preferred stock of the

Company. The conversion is based on the Development Investment Amount plus the accrued but unpaid amount of

interest on the Development Investment Amount at an annual rate of 3.4%, using a conversion price which is the

lowest cash price per share paid by cash investors in the Equity Financing multiplied by 85.0%. In December 2024,

pursuant to the issuance of Series D-3 redeemable convertible preferred stock, an Equity Financing occurred and the

SAFE was elected to be converted to Series D-4 redeemable convertible preferred stock, with a value of $0.6

million.

**NOTE 12 – WARRANTS**

As of December 31, 2025, the Company had 3,550,329 Warrants outstanding. The Warrants were issued on

October 6, 2025 in connection with the issuance of Class A Units ("Intermediate Class A Units") issued by Cape

Phase 1 Intermediate HoldCo, LLC ("Cape P1 Intermediate HoldCo") to Centaurus Capital LP ("the Holder" or

"Centaurus") and entitle Centaurus to purchase shares of the Company's most senior class of preferred stock

outstanding at the time of exercise based on liquidation preference. The Intermediate Class A Units are further

discussed in Note 14 - Noncontrolling Interests.

The Warrants are freestanding financial instruments that have a fixed exercise price of $5.28 per share. The

Warrants may be exercised at any time by the holder prior to (i) the fourth anniversary of the issuance date or (ii)

immediately prior to the completion of a firm commitment underwritten initial public offering. The Warrants may be

exercised by payment of the aggregate exercise price, exercised on a cashless basis whereby the number of shares

issued is determined based on the excess of the fair value of the underlying shares over the exercise price and no

cash consideration is paid by the holder to the Company. The Warrants may expire unexercised if the exercise

conditions are not met.

Upon the occurrence of an acquisition or similar transaction, if the surviving or successor entity assumes the

obligations of the Warrants, the Warrants remain outstanding and convert into the right to receive the same form and

amount of securities, cash, or other consideration that the holder would have received had the Warrants been

exercised immediately prior to the transaction. If the Warrants are not assumed, the Warrants terminate and the

holder becomes entitled to receive consideration equal to the excess, if any, of the value of the underlying shares

over the aggregate exercise price.

The Warrants are exercisable for preferred stock that is contingently redeemable under circumstances outside

the Company's control and are classified as mezzanine equity. Therefore, the Warrants are classified as liabilities in

accordance with ASC 480, and are recorded at fair value, with changes in fair value recognized in earnings each

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

reporting period. Upon issuance, the Warrants were recorded at a fair value of $6.8 million. During the year ended

December 31, 2025, the Company recognized a loss due to the valuation of the Warrants of $3.4 million which is

reflected within Other non-operating expense in the Consolidated Statements of Operations. As of December 31,

2025, the fair value of the Warrants was approximately $10.2 million and is recorded within Other long-term

liabilities in the Consolidated Balance Sheets.

***Fair Value Measurement and Settlement Amounts***

Upon issuance, the Warrants were measured at fair value using a Black-Scholes option pricing model which

only considered a going concern scenario. As of December 31, 2025, the Warrants were measured at fair value using

a Black-Scholes option pricing model, weighted between a going concern scenario and IPO scenario. The Company

estimated the valuation of the Warrants using the following assumptions:

---

| | |
|:---|:---|
|  | **At issuance**<br>**October 6, 2025** |
| Series D-3 Redeemable Convertible Preferred Stock price .................................................................. | $5.28 |
| Expected volatility ................................................................................................................................ | 75.0% |
| Expected term (in years) ...................................................................................................................... | 3.00 |
| Risk-free interest rate ............................................................................................................................ | 3.6% |
| Expected dividend yield ........................................................................................................................ | 0.0% |

---

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Going concern** <br>**scenario**<br>| **IPO scenario** |
| Series D-3 Redeemable Convertible Preferred Stock price ....................................... | $8.17 | $8.17 |
| Expected volatility ..................................................................................................... | 75.0% | 75.0% |
| Expected term (in years) ............................................................................................ | 3.00 | 0.50 |
| Risk-free interest rate ................................................................................................. | 3.6% | 3.6% |
| Expected dividend yield ............................................................................................ | 0.0% | 0.0% |

---

Due to the use of significant unobservable inputs of stock price, volatility and expected term in the valuation,

the Warrants are classified within Level 3 of the fair value hierarchy. Accordingly, significant judgment is required

in selecting these assumptions. Actual assumptions may differ from the Company's current estimates and such

differences could materially impact the fair value of the Warrants.

Changes in the fair value of the Company's equity directly affects the fair value of the Warrants. No Warrants

have been exercised as of December 31, 2025.

**NOTE 13 – VARIABLE INTEREST ENTITY**

The Company evaluated its interests in certain legal entities and determined that Cape Phase 1 HoldCo, LLC

("Cape P1 HoldCo") and Cape P1 Intermediate HoldCo are VIEs under ASC 810 as of December 31, 2025. The

Company concluded that it is the primary beneficiary of these VIEs because it has (i) the power to direct the

activities that most significantly impact these VIEs' economic performance and (ii) the obligation to absorb losses or

the right to receive benefits that could potentially be significant to these VIEs. The Company holds its interest in

Cape P1 Intermediate HoldCo through other consolidated subsidiaries. Cape P1 HoldCo is consolidated into Cape

P1 Intermediate HoldCo as the direct owner of its equity interests. Accordingly, the Company has consolidated Cape

P1 HoldCo and Cape P1 Intermediate HoldCo in the accompanying consolidated financial statements and

recognized noncontrolling interests related to these VIEs. Refer to Note 14 – Noncontrolling Interests.

The assets of Cape P1 HoldCo and Cape P1 Intermediate HoldCo may only be used to settle the obligations of

the respective VIEs, and creditors of these entities do not have recourse to the general credit of the Company. The

Company's maximum exposure to loss as a result of its involvement with these VIEs is limited to its investment in

the entities and any contractual arrangements that require the Company to provide financial support. The Company's

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

ongoing financial support includes a capital commitment totaling to $161.2 million for Cape P1 HoldCo. The

Company also has construction capital commitments of $207.7 million to fund future construction costs and support

the ongoing operations of its project subsidiaries, as well as three maintenance capital commitments totaling $35.7

million for Cape P1 Intermediate HoldCo.

Management reassesses its involvement with Cape P1 HoldCo and Cape P1 Intermediate HoldCo on an ongoing

basis to determine whether the Company continues to be the primary beneficiary, including consideration of changes

in governance, contractual arrangements, financing structures, or other facts and circumstances that could affect the

Company's consolidation conclusions. The Company will also reassess whether Cape P1 HoldCo and Cape P1

Intermediate HoldCo continue to be VIEs upon the occurrence of a reconsideration event.

**NOTE 14 – NONCONTROLLING INTERESTS**

As discussed in Note 13 – Variable Interest Entity, the Company has consolidated Cape P1 HoldCo and Cape

P1 Intermediate HoldCo, which were determined to be VIEs for which the Company is the primary beneficiary.

Both entities issued Class A Units to third party-investors that represent equity interests in the respective

consolidated subsidiaries. Because the Company does not own 100% of the outstanding equity in these entities, the

Class A Units are accounted for as noncontrolling interests in the consolidated financial statements.

The Class A Units issued by Cape P1 HoldCo ("CP1 HoldCo Class A Units") and Intermediate Class A Units

contain redemption features that are outside the control of the respective issuers but are contingent upon the

availability of distributable cash. Accordingly, these Class A Units are classified as redeemable noncontrolling

interest and are presented as mezzanine equity on the Consolidated Balance Sheets.

The distributions of available cash related to Cape P1 HoldCo are first made to the holders of the CP1 HoldCo

Class A Units in satisfaction of any accumulated and unpaid yield associated with the CP1 HoldCo Class A Units as

of such time, until the capital balance of the CP1 HoldCo Class A Unit holders has been reduced to $0.00. CP1

HoldCo Class A Units are initially recorded at fair value at the time of issuance, less the direct and incremental

issuance costs. The CP1 HoldCo Class A Units are subsequently measured at the current redemption value to the

extent such current redemption value exceeds the attribution of income (loss) to the CP1 HoldCo Class A Units.

The distributions of available cash and certain tax credits related to Cape P1 Intermediate HoldCo for

Intermediate Class A Units are allocated based on the applicable sharing ratio at any given time with a targeted

internal rate of return. Intermediate Class A Units are initially recorded at proceeds received less the fair value of the

warrants issued along with the Intermediate Class A Units and allocated issuance cost. Intermediate Class A Units

are subsequently remeasured at their maximum redemption value, to the extent such amounts exceed the allocation

of income or loss attributable to the noncontrolling interest. Additionally, two derivatives were identified as being

embedded in the Intermediate Class A Units. Both embedded derivatives had a de minimis fair value at inception

and so no amount was bifurcated at that time. As of December 31, 2025, conditions relevant to the embedded

derivatives was evaluated and one feature was determined to have a fair value of $1.7 million. This amount is

included in Other current liabilities.

The following table is a summary of the changes in redeemable noncontrolling interest for CP1 HoldCo Class A

Units for the year ended December 31, 2025:

---

| | |
|:---|:---|
| (Dollars in thousands) |  |
| Balance at December 31, 2024 ............................................................................................................. | $— |
| Redeemable noncontrolling interests .................................................................................................... | 99500 |
| Remeasurement of redeemable noncontrolling interest ........................................................................ | 3086 |
| Balance at December 31, 2025 ............................................................................................................. | $102586 |

---

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

The following table is a summary of the changes in redeemable noncontrolling interest for Intermediate Class A

Units for the year ended December 31, 2025:

---

| | |
|:---|:---|
| (Dollars in thousands) |  |
| Balance at December 31, 2024 ............................................................................................................. | $— |
| Redeemable noncontrolling interests .................................................................................................... | 67703 |
| Remeasurement of redeemable noncontrolling interest ........................................................................ | 9641 |
| Balance at December 31, 2025 ............................................................................................................. | $77344 |

---

**NOTE 15 – SEGMENT INFORMATION**

The Company engages in a single line of business focused on commercializing technology to own, develop, and

operate geothermal assets as the dispatchable foundation to a 100% clean energy future. All of the Company's assets

and operations are in the United States.

Fervo operates in a single operating and reportable segment, which is consistent with the reporting structure of

the Company's internal organization and the use of the consolidated financial information of Fervo by the

Company's CODM to allocate resources and assess performance. The CODM is the Company's chief executive

officer.

The primary measure of segment profit or loss used by the CODM is net loss, as presented in the Consolidated

Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets as total

assets. Total expenditures for additions to long-lived assets are as reported in the Consolidated Statements of Cash

Flows. The significant segment expenses regularly provided to the CODM and included in the measure of segment

profit or loss are those presented in the Consolidated Statements of Operations.

All segment financial information for the Company is as reported on the respective consolidated financial

statements.

**NOTE 16 – EARNINGS PER SHARE**

Basic and diluted net loss per share is calculated as follows:

---

| | | |
|:---|:---|:---|
| (Dollars and shares in thousands, except per share amounts) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Dollars and shares in thousands, except per share amounts) | **2025** | **2024** |
| **Numerator:** |  |  |
| Net loss attributable to common shares ..................................................................... | $(70515) | $(41110) |
| **Denominator:** |  |  |
| Weighted-average common shares ........................................................................... | 12462 | 12438 |
| **Net loss per share – basic and diluted** ................................................................. | $(5.66) | $(3.31) |

---

The following potentially dilutive instruments, based on amounts outstanding, that could result in dilution, were

excluded from the diluted earnings per share computation because including them would have had an anti-dilutive

effect:

---

| | | |
|:---|:---|:---|
| (Shares in thousands) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Shares in thousands) | **2025** | **2024** |
| Preferred shares ........................................................................................................ | 279995 | 223458 |
| Options based awards ............................................................................................... | 26117 | 17826 |
| Warrants ..................................................................................................................... | 3550 |  |
| Total .......................................................................................................................... | 309662 | 241284 |

---

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

**NOTE 17 – GRANT INCOME**

Grant income of $0.1 million and $2.7 million attributable to research and development is netted against eligible

expenses in research and development, net in the Consolidated Statements of Operations for the years ended

December 31, 2025 and 2024, respectively. Grant income totaling $14.1 million and $2.4 million attributable to

project development is netted against construction-in-progress on the Consolidated Balance Sheets for the years

ended December 31, 2025 and 2024, respectively.

In 2024, the Company was awarded a reimbursement-type award from the DOE in the amount of $22.1 million.

The effective date of the grant was July 1, 2024 and the contract expires July 1, 2026. Funding under the grant is

received as qualifying expenditures are incurred in accordance with the terms of the grant agreement.

**NOTE 18 – INCOME TAXES**

The Company is responsible for federal and state income taxes in various jurisdictions. Deferred income taxes

are calculated for temporary differences using an asset and liability approach. Under this approach, deferred tax

assets or liabilities are recognized for the estimated future tax effects attributable to the temporary differences

(differences between the tax basis of an asset or liability and its reported amount in consolidated financial

statements) and carryforwards, based on provision of the enacted tax law. The Company files income tax returns in

the United States and various states.

As the Company is still in a start-up phase of development, there is nominal current income tax expense and

deferred income tax expense for the years ended December 31, 2025 and 2024.

As of December 31, 2025 and 2024, the Company had approximately $85.7 million and $41.2 million,

respectively, of net operating loss carryforwards for Federal tax purposes, all of which are indefinitely lived.

The Company's loss before income tax consisted of:

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Dollars in thousands) | **2025** | **2024** |
| United States .............................................................................................................. | $(57787) | $(41054) |

---

The components of current and deferred income tax expense included in the Consolidated Statements of

Operations for years ended December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Dollars in thousands) | **2025** | **2024** |
| Current: |  |  |
| Federal ..................................................................................................................... | $— | $53 |
| State and local ......................................................................................................... | 1 | 3 |
| Foreign .................................................................................................................... |  |  |
| Total ...................................................................................................................... | $1 | $56 |
| Deferred: |  |  |
| Federal ..................................................................................................................... | $— | $— |
| State and local ......................................................................................................... |  |  |
| Foreign .................................................................................................................... |  |  |
| Total ...................................................................................................................... | $— | $— |
| Total income tax expense .......................................................................................... | $1 | $56 |

---

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

The difference between income tax expense and amounts calculated using the statutory rate of 21% for the years

ended December 31, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
| (Dollars in thousands) | **Tax** | **Percent** | **Tax** | **Percent** |
| Tax benefit at U.S. Federal statutory rate ................... | $(12135) | 21.0% | $(8614) | 21.0% |
| Increase (decrease) in income taxes resulting from: .. |  |  |  |  |
| Conversion of notes ............................................... |  | —% | 25 | —% |
| Stock options ......................................................... |  | —% | 192 | (0.5)% |
| State taxes .............................................................. | 1 | —% | 3 | —% |
| Other ...................................................................... | 468 | (0.8)% | 18 | —% |
| Change in valuation allowance .............................. | 11667 | (20.2)% | 8432 | (20.6)% |
| Total tax expense ........................................................ | $1 | —% | $56 | (0.1)% |

---

The components of deferred taxes consisted of the following:

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **As of December 31,** | **As of December 31,** |
| (Dollars in thousands) | **2025** | **2024** |
| **Deferred Tax Assets** |  |  |
| Section 174 costs .............................................................................................. | $7932 | $9836 |
| Start-up costs ..................................................................................................... | 12305 | 13659 |
| NOL carryforward ............................................................................................ | 17995 | 8641 |
| Lease liability .................................................................................................... | 16267 | 8984 |
| Compensation ................................................................................................... | 1204 | 657 |
| Grant revenue ..................................................................................................... | 2458 | 821 |
| Inventory ............................................................................................................ | 8252 |  |
| Investment in partnerships ................................................................................. | 1272 |  |
| Other ................................................................................................................. | 583 | 248 |
| Deferred tax assets ............................................................................................ | $68268 | $42846 |
| **Deferred Tax Liabilities** |  |  |
| Intangible drilling costs (IDC) .......................................................................... | $(9145) | $(2337) |
| Right of use asset .............................................................................................. | (12330) | (5391) |
| Total deferred tax liabilities .............................................................................. | $(21475) | $(7728) |
| Net deferred tax assets ....................................................................................... | 46793 | 35118 |
| Valuation allowance ......................................................................................... | (46793) | (35118) |
| Net deferred tax assets ....................................................................................... | $— | $— |

---

In recording deferred income tax assets, the Company considers whether it is more likely than not that some

portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax

assets is dependent upon the generation of future taxable income of the appropriate character during the periods in

which those deferred income tax assets would be deductible. The Company considers the scheduled reversal of

deferred income tax liabilities and projected future taxable income for this determination. Due to the Company's

limited historical earnings, management continues to believe that it is more likely than not that Fervo will not be

able to realize its net deferred tax assets, and therefore a valuation allowance remains on the net deferred tax asset

balance. The deferred income tax valuation allowance is as follows:

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **2025** | **2024** |
| Balance at beginning of year .................................................................................... | $35118 | $26686 |
| Additions .................................................................................................................. | 11667 | 8432 |
| Prior year adjustment ................................................................................................. | 8 |  |
| Balance at end of year .............................................................................................. | $46793 | $35118 |

---

The Company's federal and state income tax returns for all tax years are generally open under statutes for

examination. The Company made no payment for federal income taxes, during the years ended December 31, 2025

and 2024, resulting in a tax net operating loss carryforward. A net operating loss carried forward from a tax year

which would otherwise be closed for statute can be examined if the tax year of utilization is open under statute.

As of December 31, 2025 and 2024, there are no uncertain tax benefits that could be recognized within the next

12 months that would impact the Company's effective tax rate.

**NOTE 19 – EMPLOYEE BENEFIT PLAN**

The Company maintains a 401(k) defined contribution plan that is subject to the provisions of the Employee

Retirement Income Security Act of 1974 ("ERISA"). Each year, the employees participating in the plan may

contribute up to the maximum amount allowed for federal income tax purposes, as defined in the plan documents.

The Company may make contributions to the plan as determined annually. Such contributions may include a

discretionary matching contribution based on a percentage of the employee's contribution, a discretionary

contribution amount, or a discretionary profit-sharing contribution for active participants employed on the last day of

the year. During the years ended December 31, 2025 and 2024, the Company made contributions to the plan totaling

$1.5 million and $0.8 million, respectively.

**NOTE 20 – RELATED PARTY TRANSACTIONS**

The Company evaluates its relationships and transactions with related parties in accordance with ASC 850,

*Related Party Disclosures*. Related parties include affiliates, principal owners, management, members of the Board

of Directors, and their immediate family members, as well as entities under common control or significant influence.

For the years ended December 31, 2025 and 2024, the Company incurred $0.3 million and $0.2 million

respectively, related to technical services provided by supplier who is a major investor in the Company and an

observer to the Company's Board of Directors. These costs were recorded in general and administrative expenses in

the Consolidated Statements of Operations.

**NOTE 21 – COMMITMENTS AND CONTINGENCIES**

***Contractual Commitments***

As of December 31, 2025, the Company had contractual commitments of approximately of $528.8 million,

primarily related to our Cape Station Phase I and Cape Station Phase II facilities. Of this amount, $346.5 million is

due in 2026 and $182.3 million is due thereafter.

***Litigation and Other Legal Proceedings***

The Company records liabilities related to litigation and other legal proceedings when they are either known or

considered probable and can be reasonably estimated. Legal proceedings are inherently unpredictable and subject to

significant uncertainties, and significant judgment is required to determine both probability and the estimated

amount. As a result of these uncertainties, any liabilities recorded are based on the best information available at the

time. As any new information becomes available, the Company reassesses the potential liability related to pending

litigation. Management is not aware of any legal, environmental or other commitments or contingencies that would

have a material effect on the Company's financial condition, results of operations or cash flows for the periods

presented.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

***Environmental permits***

U.S. environmental permitting regimes with respect to geothermal projects center upon several general areas of

focus. The first involves land use approvals. These may take the form of Special Use Permits or Conditional Use

Permits from local planning authorities or a series of development and utilization plan approvals and right-of-way

approvals where the geothermal facility is entirely or partly on BLM lands. Certain federal approvals require a

review of environmental impacts in conformance with the federal National Environmental Policy Act. These federal

and local land use approvals typically impose conditions and restrictions on the construction, scope and operation of

geothermal projects.

The second category of permitting focuses on the installation and use of the geothermal wells themselves.

Geothermal projects typically have three types of wells: (i) exploration wells designed to define and verify the

geothermal resource, (ii) production wells to extract the hot geothermal liquids (also known as brine), and

(iii) injection wells to inject the brine back into the subsurface resource. For all wells drilled in Nevada, a geothermal

drilling permit must be obtained from the Nevada Division of Minerals.

A third category of permits involves the regulation of potential air emissions associated with the construction

and operation of wells. Generally, each well requires a preconstruction air permit and storm water discharge permit

before earthwork can commence.

A fourth category of permits, required in Nevada, includes ministerial permits such as building permits,

hazardous materials storage and management permits, and pressure vessel operating permits.

In some cases, projects may also require permits, issued by the applicable federal agencies or authorized state

agencies, regarding threatened or endangered species, permits to impact wetlands or other waters and notices of

construction of structures which may have an impact on airspace. Environmental laws and regulations may change

in the future that may modify the time to receive such permits and associated costs of compliance.

All of the material environmental permits and approvals currently required have been obtained. The Company

sometimes experiences regulatory delays in obtaining various permits and approvals required for projects in

development and construction. These delays may lead to increases in the time and cost to complete these projects.

The Company's operations are designed and conducted to comply with applicable environmental permits and

approval requirements. Non-compliance with any such requirements could result in fines and penalties and could

also affect the Company's ability to operate the affected project.

***Environmental laws and regulations***

The Company's facilities and operations are subject to several federal, state, local and foreign environmental

laws and regulations relating to development, construction and operation. In the U.S., these may include the Clean

Air Act, the Clean Water Act, the Emergency Planning and Community Right-to-Know Act, the Endangered

Species Act, the National Environmental Policy Act, the Resource Conservation and Recovery Act, and related state

laws and regulations.

**NOTE 22 – SUBSEQUENT EVENTS** 

Management has evaluated subsequent events that occurred after the date of the Consolidated Balance Sheets

through March 30, 2026, the date the financial statements were issued.

• Subsequent to December 31, 2025, the Company entered into agreements relating to the potential

development of geothermal energy projects, including a framework arrangement that establishes a

structured development process for future project evaluation. The framework includes development-related

commitments requiring the Company to submit specified project feasibility packages representing

approximately 1 GW of aggregate capacity within a defined period. The agreements also include provisions

under which the Company may be required to pay liquidated damages or termination fees under specified

circumstances, including potential payments of approximately $15.0 million if certain development

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Fervo Energy Company and Subsidiaries**

Notes to Consolidated Financial Statements

requirements are not met. The execution of these agreements did not result in the recognition of any assets

or liabilities as of December 31, 2025.

• On March 6, 2026, Cape Phase 1 Borrower LLC and Phase 1 WellCo LLC (the "Borrowers"), subsidiaries

of the Company, entered into a senior secured credit agreement with a syndicate of lenders led by MUFG

Bank, Ltd., as administrative agent, and HSBC Bank USA, National Association, as collateral agent, to

finance the development and construction of the Company's Cape Station Phase I geothermal project

located in Beaver County, Utah. In connection with the financing, the Borrowers executed customary

project finance and related closing deliverables. As of the date the financial statements were issued, no

amounts had been drawn under the facility. Accordingly, the execution of the agreement did not result in

the recognition of any assets or liabilities as of December 31, 2025.

The Company expects to draw on the project financing facility in the near team. In connection with this

transaction, the Company expects to repay the outstanding borrowings under the XRC Term Loan. Pursuant

to the Second Loan Modification Agreement, the Company will be required to pay prepayment premiums

within one business day following such repayment. Accordingly, the Company estimates the prepayment

premium to be approximately $6.5 million, subject to final settlement.

• Subsequent to December 31, 2025, the Company granted stock options to employees and directors under

the Plan, which was amended on March 6, 2026 to authorize additional shares that can be issued for up to

47,472,828 shares of common stock. On January 26, 2026, the Company granted 5,817,000 stock options

with a grant date fair value of $2.91 per option. On March 6, 2026, the Company granted 13,844,588 stock

options with a grant date fair value of $5.81 per option. The grant-date fair value of the 2026 stock options

granted was estimated using the Black-Scholes option-pricing model using the following assumptions:

---

| | |
|:---|:---|
| Fair value of common stock ................................................................................................... | $4.25 - $8.49 |
| Expected volatility .................................................................................................................. | 75.0% |
| Expected term (in years) ........................................................................................................ | 6.08 |
| Risk-free interest rate ............................................................................................................. | 3.75% - 3.83% |
| Expected dividend yield ......................................................................................................... | 0.0% |

---

The Company determined the fair value of its common stock considering similar factors as disclosed in

Note 10 – Stock Based Compensation and utilized a weighted average calculation considering fair value

under both an IPO scenario and a going concern scenario.

• On March 27, 2026, the Company entered into an agreement to purchase turbines and related equipment.

The agreement includes a three-year order period from April 1, 2026, to March 31, 2029, during which the

Company has committed to a minimum purchase obligation of $15.0 million.

Other than the matters described above, the Company identified no subsequent events that require adjustment to

or disclosure in the consolidated financial statements.

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares**

**Fervo Energy Company**

**Class A Common Stock**

![fervologoa.jpg](fervologoa.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **J.P. Morgan**  | **BofA Securities** | **RBC Capital** <br>**Markets**<br>| **Barclays** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Baird** | **BBVA** | **Guggenheim Securities** | **MUFG** |
| **Societe Generale** | **William Blair** | **Piper Sandler** | **Wolfe \| Nomura Alliance** |

---

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**PART II**

**INFORMATION NOT REQUIRED IN THE PROSPECTUS**

**Item 13. Other expenses of issuance and distribution.**

The following table sets forth all fees and expenses, other than the underwriting discounts and commissions

payable solely by Fervo Energy Company in connection with the offer and sale of the securities being registered. All

amounts shown are estimated except for the SEC registration fee, the Financial Industry Regulatory Authority, Inc.,

or FINRA, filing fee and the exchange listing fee.

---

| | |
|:---|:---|
|  | **Amount to be** <br>**paid**<br>|
| SEC registration fee .............................................................................................................................. | $\* |
| FINRA filing fee ................................................................................................................................... | \* |
| Exchange listing fee .............................................................................................................................. | \* |
| Accounting fees and expenses .............................................................................................................. | \* |
| Legal fees and expenses ........................................................................................................................ | \* |
| Printing and engraving expenses .......................................................................................................... | \* |
| Transfer agent and registrar fees ........................................................................................................... | \* |
| Blue sky fees and expenses ................................................................................................................... | \* |
| Miscellaneous expenses ........................................................................................................................ | \* |
| Total ...................................................................................................................................................... | $\* |

---

__________________

\*To be completed by amendment.

**Item 14. Indemnification of directors and officers.**

Section 102 of the General Corporation Law of the State of Delaware permits a corporation to eliminate the

personal liability of directors of a corporation to the corporation or its stockholders for monetary damages for a

breach of fiduciary duty as a director, except where the director breached his duty of loyalty, failed to act in good

faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment of a dividend or

approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. Our

Amended Charter will provide that no director of Fervo Energy Company shall be personally liable to it or its

stockholders for monetary damages for any breach of fiduciary duty as a director, notwithstanding any provision of

law imposing such liability, except to the extent that the General Corporation Law of the State of Delaware prohibits

the elimination or limitation of liability of directors for breaches of fiduciary duty.

Section 145 of the General Corporation Law of the State of Delaware provides that a corporation has the power

to indemnify a director, officer, employee, or agent of the corporation, or a person serving at the request of the

corporation for another corporation, partnership, joint venture, trust or other enterprise in related capacities against

expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably

incurred by the person in connection with an action, suit or proceeding to which he was or is a party or is threatened

to be made a party to any threatened, ending or completed action, suit or proceeding by reason of such position, if

such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests

of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe his conduct was

unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be

made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the

corporation unless and only to the extent that the Court of Chancery or other adjudicating court determines that,

despite the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and

reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem

proper.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

Upon consummation of this offering, our Amended Charter and Amended Bylaws will provide indemnification

for our directors and officers to the fullest extent permitted by the General Corporation Law of the State of

Delaware. We will indemnify each person who was or is a party or threatened to be made a party to any threatened,

pending or completed action, suit or proceeding (other than an action by or in the right of us) by reason of the fact

that he or she is or was, or has agreed to become, a director or officer, or is or was serving, or has agreed to serve, at

our request as a director, officer, partner, employee or trustee of, or in a similar capacity with, another corporation,

partnership, joint venture, trust or other enterprise (all such persons being referred to as an "Indemnitee"), or by

reason of any action alleged to have been taken or omitted in such capacity, against all expenses (including

attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection

with such action, suit or proceeding and any appeal therefrom, if such Indemnitee acted in good faith and in a

manner he or she reasonably believed to be in, or not opposed to, our best interests, and, with respect to any criminal

action or proceeding, he or she had no reasonable cause to believe his or her conduct was unlawful. Our Amended

Charter and Amended Bylaws will provide that we will indemnify any Indemnitee who was or is a party to an action

or suit by or in the right of us to procure a judgment in our favor by reason of the fact that the Indemnitee is or was,

or has agreed to become, a director or officer, or is or was serving, or has agreed to serve, at our request as a

director, officer, partner, employee or trustee of, or in a similar capacity with, another corporation, partnership, joint

venture, trust or other enterprise, or by reason of any action alleged to have been taken or omitted in such capacity,

against all expenses (including attorneys' fees) and, to the extent permitted by law, amounts paid in settlement

actually and reasonably incurred in connection with such action, suit or proceeding, and any appeal therefrom, if the

Indemnitee acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, our best

interests, except that no indemnification shall be made with respect to any claim, issue or matter as to which such

person shall have been adjudged to be liable to us, unless a court determines that, despite such adjudication but in

view of all of the circumstances, he or she is entitled to indemnification of such expenses. Notwithstanding the

foregoing, to the extent that any Indemnitee has been successful, on the merits or otherwise, he or she will be

indemnified by us against all expenses (including attorneys' fees) actually and reasonably incurred in connection

therewith. Expenses must be advanced to an Indemnitee under certain circumstances.

Prior to the consummation of this offering, we intend to enter into separate indemnification agreements with

each of our directors and executive officers. Each indemnification agreement will provide, among other things, for

indemnification to the fullest extent permitted by law and our Amended Charter and Amended Bylaws against any

and all expenses, judgments, fines, penalties and amounts paid in settlement of any claim. The indemnification

agreements will provide for the advancement or payment of all expenses to the indemnitee and for the

reimbursement to us if it is found that such indemnitee is not entitled to such indemnification under applicable law

and our Amended Charter and Amended Bylaws.

We maintain a general liability insurance policy that covers certain liabilities of directors and officers of our

corporation arising out of claims based on acts or omissions in their capacities as directors or officers.

In any underwriting agreement we enter into in connection with the sale of common stock being registered

hereby, the underwriters will agree to indemnify, under certain conditions, us, our directors, our officers and persons

who control us within the meaning of the Securities Act of 1933, as amended, or the Securities Act, against certain

liabilities.

**Item 15. Recent sales of unregistered securities.**

Set forth below is information regarding all unregistered securities sold by us since January 1, 2023. Also

included is the consideration received by us for such shares and information relating to the section of the Securities

Act, or rule of the SEC, under which exemption from registration was claimed.

***Convertible Notes***

In 2023, we issued and sold an aggregate principal amount of $10.0 million of convertible notes to an existing

strategic corporate investor (the "CN Notes"). The CN Notes were converted into 4,766,559 shares of Series D-2

Preferred Stock at a conversion price of $2.152455 per share upon the closing of the Company's February 2024

Series D financing, reflecting a 15% discount to the $2.5323 per-share cash price.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

***Preferred Stock Issuances***

In February 2024, we issued and sold an aggregate of 68,650,241 shares of our Series D-1 Preferred Stock, par

value $0.0001 per share, to institutional and strategic investors at a purchase price of $2.53, for an aggregate price of

approximately $173.8 million.

In August 2024, we issued and sold an aggregate of 23,693,875 shares of our Series D-1 Preferred Stock, par

value $0.0001 per share, to institutional and strategic investors at a purchase price of $2.53, for an aggregate price of

approximately $60.0 million.

In December 2024, we issued and sold an aggregate of 25,467,691 shares of our Series D-3 Preferred Stock, par

value $0.0001 per share, to institutional and strategic investors at a purchase price of $5.28, for an aggregate price of

approximately $134.5 million.

In December 2025, we issued and sold an aggregate of 56,537,255 shares of our Series E-1 Preferred Stock, par

value $0.0001 per share, to institutional and strategic investors at a purchase price of $8.17, for an aggregate price of

approximately $462 million.

In January 2026, we issued and sold an aggregate of 9,178 shares of our Series E-1 Preferred Stock, par value

$0.0001 per share, to strategic investors at a purchase price of $8.17, for an aggregate price of approximately $75

thousand.

***Equity Awards***

Between January 1, 2023 and the date of this registration statement, we granted to our employees and others

options to purchase an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock under its equity incentive plans at a

weighted average price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share.

Between January 1, 2022 and the date of this registration statement, we issued and sold to its employees and

others an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Class A common stock in connection with the exercise of options granted

under its equity incentive plans at a weighted average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share.

We have also approved grants to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of restricted stock units ("RSUs") with respect to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of

Class A common stock. We also approved grants to other employees of RSUs with an aggregate grant date fair value

of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million. Each of such grants will be effective upon, and contingent on, the effectiveness

of this registration statement.

The issuances of the securities in the transactions described above were deemed to be exempt from registration

under the Securities Act in reliance upon Section 4(a)(2) of the Securities Act and/or Rule 506, Rule 701 or

Regulation S promulgated thereunder. The securities were issued directly by us and did not involve a public offering

or general solicitation. The recipients of such securities represented their intentions to acquire the securities for

investment purposes only and not with a view to, or for sale in connection with, any distribution thereof.

None of the transactions set forth in Item 15 involved any underwriters, underwriting discounts or commissions

or any public offering. All recipients had adequate access, through their relationships with us, to information about

us. The sales of these securities were made without any general solicitation or advertising.

**Item 16. Exhibits and financial statements.**

(a)Exhibits

The exhibits filed herewith are set forth on the Index to Exhibits filed as a part of this Registration Statement

beginning on page <u>[II-10](#i024b9246cdc64bff8f3f6e527abc6720_2110)</u> hereof.

(b)Financial Statement Schedules

Schedule I - Condensed Financial Information of Parent (Fervo Energy Company) as of and for the years ended

December 31, 2024 and December 31, 2025.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Schedule I - Condensed Financial Information of Fervo Energy Company (Parent Company Only)**

**Fervo Energy Company**

Condensed Balance Sheets of Parent

---

| | | |
|:---|:---|:---|
| (Dollars and shares in thousands) | **As of December 31,** | **As of December 31,** |
| (Dollars and shares in thousands) | **2025** | **2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents .................................................................................... | $447933 | $185761 |
| Other current assets ............................................................................................... | 12611 | 2026 |
| Total current assets ............................................................................................. | 460544 | 187787 |
| Investment in subsidiaries ....................................................................................... | 483807 | 243642 |
| Other assets ............................................................................................................. | 16083 | 1951 |
| Total assets ......................................................................................................... | $960434 | 433380 |
| **LIABILITIES AND EQUITY** |  |  |
| Current liabilities: |  |  |
| Accounts payable .................................................................................................. | $10789 | $20524 |
| Accrued capital expenditures ................................................................................ | 78708 | 20654 |
| Due to Cape Phase I Intermediate HoldCo, LLC ................................................. | 63349 |  |
| Other current liabilities ......................................................................................... | 13476 | 7504 |
| Total current liabilities ....................................................................................... | 166322 | 48682 |
| Other long-term liabilities ....................................................................................... | 17668 | 393 |
| Total liabilities .................................................................................................... | 183990 | 49075 |
| Redeemable convertible preferred stock |  |  |
| Redeemable convertible preferred stock, par value $0.0001 per share; 283,546 <br>and 223,458 authorized; 279,995 and 223,458 issued and outstanding as of <br>December 31, 2025 and 2024, respectively ..........................................................<br>| 1022942 | 561500 |
| Stockholders' deficit: |  |  |
| Common stock, par value $0.0001 per share; 358,279 and 280,000 authorized; <br>12,771 and 12,470 issued and outstanding as of December 31, 2025 and 2024, <br>respectively ...........................................................................................................<br>| 1 | 1 |
| Additional paid-in capital ..................................................................................... |  | 2582 |
| Treasury stock, at cost; 375 and 0 shares as of December 31, 2025 and 2024, <br>respectively ..........................................................................................................<br>| (1960) |  |
| Accumulated deficit .............................................................................................. | (244539) | (179778) |
| Total stockholders' deficit .................................................................................. | (246498) | (177195) |
| Total liabilities, redeemable convertible preferred stock, and stockholders' <br>deficit ...............................................................................................................<br>| $960434 | $433380 |

---

The accompanying note is an integral part of these condensed financial statements of parent.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Schedule I - Condensed Financial Information of Fervo Energy Company (Parent Company Only)**

**Fervo Energy Company**

Condensed Statements of Operations of Parent

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Dollars in thousands) | **2025** | **2024** |
| Costs and expenses: |  |  |
| Research and development expenses, net ............................................................. | $(133) | $(97) |
| General and administrative expenses .................................................................... | 36412 | 33606 |
| Operating loss ..................................................................................................... | (36279) | (33509) |
| Other income (expense): |  |  |
| Interest income ...................................................................................................... | 4192 | 1478 |
| Other non-operating expense ................................................................................ | (2769) | (439) |
| Equity in loss of subsidiaries ................................................................................ | (22932) | (8640) |
| Net loss ............................................................................................................... | $(57788) | $(41110) |

---

The accompanying note is an integral part of these condensed financial statements of parent.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Schedule I - Condensed Financial Information of Fervo Energy Company (Parent Company Only)**

**Fervo Energy Company**

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit of Parent

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (Dollars and shares in thousands) | **Redeemable Convertible** <br>**Preferred Stock** | **Redeemable Convertible** <br>**Preferred Stock** | **Common Stock** | **Common Stock** | **Treasury Stock** | **Treasury Stock** | **Additional paid-in** <br>**capital** | **Accumulated** <br>**Deficit** | **Total** <br>**Stockholders'** <br>**Deficit** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional paid-in** <br>**capital** | **Accumulated** <br>**Deficit** | **Total** <br>**Stockholders'** <br>**Deficit** |
| **Balance at January 1, 2024 ......** | 100768 | $182257 | 12341 | $1 |  | $— | $1142 | $(138668) | $(137525) |
| Issuance of Series D-1 <br>redeemable convertible <br>preferred stock, net of issuance <br>costs of $1,090 ............................<br>| 92344 | 232753 |  |  |  |  |  |  |  |
| Conversion of 2023 convertible <br>notes to Series D-2 redeemable <br>convertible preferred stock .........<br>| 4766 | 12025 |  |  |  |  |  |  |  |
| Issuance of Series D-3 <br>redeemable convertible <br>preferred stock, net of issuance <br>costs of $627 ...............................<br>| 25468 | 133873 |  |  |  |  |  |  |  |
| Issuance of Series D-4 <br>redeemable convertible <br>preferred stock ............................<br>| 112 | 592 |  |  |  |  |  |  |  |
| Stock-based compensation ......... |  |  |  |  |  |  | 1370 |  | 1370 |
| Exercise of stock-based awards <br>by employees and directors ........<br>|  |  | 129 |  |  |  | 70 |  | 70 |
| Net loss ....................................... |  |  |  |  |  |  |  | (41110) | (41110) |
| **Balance at December 31, 2024 .** | 223458 | $561500 | 12470 | $1 |  | $— | $2582 | $(179778) | $(177195) |
| Remeasurement of redeemable <br>non controlling interests in <br>subsidiaries .................................<br>|  |  |  |  |  |  | (5754) | (6973) | (12727) |
| Issuance of Series E redeemable <br>convertible preferred stock, net <br>of issuance cost of $558 .............<br>| 56537 | 461442 |  |  |  |  |  |  |  |
| Repurchase of Shares ................. |  |  |  |  | 375 | (1960) |  |  | (1960) |
| Stock-based compensation ......... |  |  |  |  |  |  | 2665 |  | 2665 |
| Exercise of stock-based awards <br>by employees and directors ........<br>|  |  | 676 |  |  |  | 507 |  | 507 |
| Net loss ....................................... |  |  |  |  |  |  |  | (57788) | (57788) |
| **Balance at December 31, 2025 .** | 279995 | $1022942 | 13146 | $1 | 375 | $(1960) | $— | $(244539) | $(246498) |

---

The accompanying note is an integral part of these condensed financial statements of parent.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Schedule I - Condensed Financial Information of Fervo Energy Company (Parent Company Only)**

**Fervo Energy Company**

Condensed Statements of Cash Flows of Parent

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **Year ended December 31,**  | **Year ended December 31,**  |
| (Dollars in thousands) | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net cash used in operating activities ................................................................ | $(31392) | $(9483) |
| **Cash flows from investing activities:** |  |  |
| Investment in subsidiaries ..................................................................................... | (171243) | (194437) |
| Other investing activities ...................................................................................... | (2008) | (176) |
| Net cash used in investing activities ................................................................ | (173251) | (194613) |
| **Cash flows from financing activities:** |  |  |
| Proceeds from issuance of common stock ........................................................... | 492 | 70 |
| Proceeds from issuance of redeemable convertible preferred stock ..................... | 462000 | 368343 |
| Issuance costs related to redeemable convertible preferred stock ........................ | (558) | (1717) |
| Proceeds from issuance of warrants | 6824 |  |
| Proceeds from issuance of SAFE .......................................................................... |  | 500 |
| Proceeds paid for repurchase treasury shares | (1943) |  |
| Net cash provided by financing activities ........................................................ | 466815 | 367196 |
| Net change in cash and cash equivalents ................................................................... | 262172 | 163100 |
| Cash and cash equivalents at beginning of period ..................................................... | 185761 | 22661 |
| Cash and cash equivalents at end of period ............................................................... | $447933 | $185761 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Accrued capital expenditures (at end of period)  | 151857 | 20654 |
| Non- cash contribution to subsidiaries - Remeasurement of redeemable <br>noncontrolling interests in subsidiaries .............................................................<br>| 12727 |  |
| Non-cash activity related to conversion of SAFE ................................................ |  | 592 |
| Non-cash activity related to conversion of convertible note ............................... |  | 12025 |

---

The accompanying note is an integral part of these condensed financial statements of parent.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Schedule I - Condensed Financial Information of Fervo Energy Company (Parent Company Only)**

**Fervo Energy Company**

Note to condensed financial statements of parent

**NOTE 1 – BASIS OF PRESENTATION**

The condensed financial statements of parent have been prepared in accordance with Rule 12-04, Schedule I of

Regulation S-X, as the restricted net assets of the subsidiaries of Fervo Energy Company (as defined in Rule

4-08(e)(3) of Regulation S-X) exceed the specified threshold amount of the consolidated net assets of the Company.

Because the Company has a consolidated accumulated deficit, the 25% threshold described in Rule 4-08 does not

apply and any restrictions of net assets at the subsidiaries trigger the requirement to present parent company-only

financial information There are restrictions in the Mercuria Credit Agreement, as described in Note 8 – Common

Stock to the Fervo Energy Company consolidated financial statements, which includes certain covenants limiting the

ability of the Company's subsidiaries to make cash distributions to Fervo Energy Company. Accordingly, the

condensed financial statements of parent in this Schedule is presented on a parent-only basis in which Fervo Energy

Company's investments in its consolidated subsidiaries are presented under the equity method of accounting. The

condensed financial statements of parent should be read in conjunction with the Fervo Energy Company

consolidated financial statements.

Fervo conducts geothermal exploration, drilling, and power generation activities through various wholly owned

project subsidiaries, including entities formed for well field development, construction and operation of power

generation facilities, and fulfillment of long-term power purchase agreements ("PPAs").

The schedule below details the Company's other current liabilities presented in the Condensed Balance Sheets

of Parent for the periods indicated:

---

| | | |
|:---|:---|:---|
| (Dollars in thousands) | **As of December 31,** | **As of December 31,** |
| (Dollars in thousands) | **2025** | **2024** |
| Accrued expenses ...................................................................................................... | $6611 | $2784 |
| Bonus accrual ............................................................................................................ | 4830 | 2591 |
| Deferred grant income ............................................................................................... | 888 | 1479 |
| Operating lease liabilities .......................................................................................... | 583 | 576 |
| Payroll liabilities ........................................................................................................ | 564 | 74 |
| Total other current liabilities ..................................................................................... | $13476 | $7504 |

---

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**Item 17. Undertakings.**

(a)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.

(b)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 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 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.

(c)The undersigned hereby further undertakes that:

(1)For purposes of determining any liability under the Securities Act 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 shall be deemed to be part of this registration statement as of the time it was declared

effective.

(2)For the purpose of determining any liability under the Securities Act 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 shall be deemed to be the

initial bona fide offering thereof.

(3)For the purpose of determining liability of the registrant under the Securities Act of 1933 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:

(i)Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering

required to be filed pursuant to Rule 424 under the Securities Act;

(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;

(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

(iv)Any other communication that is an offer in the offering made by the undersigned registrant to the

purchaser.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

 **INDEX TO EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | |
| 1.1\* | Form of Underwriting Agreement. |
| 3.1 | <u>[Amended and Restated Certificate of Incorporation of Fervo Energy Company, as in effect prior to the](exhibit31-sx1.htm)</u><br><u>[consummation of this offering.](exhibit31-sx1.htm)</u><br>|
| 3.2 | <u>[Form of Amended and Restated Certificate of Incorporation of Fervo Energy Company, to be in effect](exhibit32-sx1.htm)</u><br><u>[upon the consummation of this offering.](exhibit32-sx1.htm)</u><br>|
| 3.3 | <u>[Amended and Restated Bylaws of Fervo Energy Company, as in effect prior to the consummation of](exhibit33-sx1.htm)</u><br><u>[this offering.](exhibit33-sx1.htm)</u><br>|
| 3.4 | <u>[Form of Second Amended and Restated Bylaws of Fervo Energy Company, to be in effect upon the](exhibit34-sx1.htm)</u><br><u>[consummation of this offering.](exhibit34-sx1.htm)</u><br>|
| 4.1 | <u>[Specimen Stock Certificate evidencing the shares of common stock.](exhibit41-sx1.htm)</u> |
| 4.2\* | Form of Registration Rights Agreement.  |
| 5.1\* | Opinion of Latham & Watkins LLP. |
| 10.1† | <u>[Fervo Energy Company 2019 Stock Incentive Plan.](exhibit101-sx1.htm)</u> |
| 10.1(a)\*† | Amendment, dated March 5, 2026, to Fervo Energy Company 2019 Stock Incentive Plan. |
| 10.1(b)\*† | Form of Stock Option Agreement under the Fervo Energy Company 2019 Stock Incentive Plan. |
| 10.1(c)\*† | Stock Option Agreement, dated December 29, 2025, by and between the Company and David Ulrey <br>under the Fervo Energy Company 2019 Stock Incentive Plan.<br>|
| 10.1(d)\*† | Stock Option Agreement (Operational Milestone Goal), dated March 12, 2026, by and between the <br>Company and Timothy Latimer under the Fervo Energy Company 2019 Stock Incentive Plan.<br>|
| 10.1(e)\*† | Stock Option Agreement (Market Capitalization Goal), dated March 12, 2026, by and between the <br>Company and Timothy Latimer under the Fervo Energy Company 2019 Stock Incentive Plan.<br>|
| 10.2† | <u>[Fervo Energy Company 2026 Incentive Award Plan.](exhibit102-sx1.htm)</u> |
| 10.2(a)† | <u>[Form of Stock Option Agreement under the Fervo Energy Company 2026 Incentive Award Plan.](exhibit102a-sx1.htm)</u> |
| 10.2(b)† | <u>[Form of Restricted Stock Unit Agreement under the Fervo Energy Company 2026 Incentive Award](exhibit102b-sx1.htm)</u><br><u>[Plan.](exhibit102b-sx1.htm)</u><br>|
| 10.3† | <u>[Fervo Energy Company 2026 Employee Stock Purchase Plan.](exhibit103-sx1.htm)</u> |
| 10.4† | <u>[Non-Employee Director Compensation Program.](exhibit104-sx1.htm)</u> |
| 10.5† | <u>[Offer Letter, dated March 14, 2018, by and between the Company and Jack Norbeck, Ph.D.](exhibit105-sx1.htm)</u> |
| 10.6† | <u>[Offer Letter, dated May 28, 2021, by and between the Company and David Ulrey.](exhibit106-sx1.htm)</u> |
| 10.7\*† | Executive Severance Plan.  |
| 10.8\* | Form of Indemnification Agreement. |
| 10.9+ | <u>[Credit Agreement, dated as of November 20, 2024, by and between Fervo Holdco LLC, as borrower,](exhibit109-sx1.htm)</u><br><u>[and Mercuria Energy Trading SA, as lender, as amended.](exhibit109-sx1.htm)</u><br>|
| 10.10+ | <u>[Consent and Amendment No. 1 to Credit Agreement, dated as of May 21, 2025, by and between Fervo](exhibit1010-sx1.htm)</u><br><u>[Holdco LLC, as borrower, and Mercuria Energy Trading SA, as lender.](exhibit1010-sx1.htm)</u><br>|
| 10.11+ | <u>[Consent and Amendment No. 2 to Credit Agreement, dated as of July 23, 2025, by and between Fervo](exhibit1011-sx1a.htm)</u><br><u>[Holdco LLC, as borrower, and Mercuria Energy Trading SA, as lender.](exhibit1011-sx1a.htm)</u><br>|
| 10.12+ | <u>[Consent and Amendment No. 3 to Credit Agreement, dated as of March 6, 2026, by and between Fervo](exhibit1012-sx1.htm)</u><br><u>[Holdco LLC, as borrower, and Mercuria Energy Trading SA, as lender.](exhibit1012-sx1.htm)</u><br>|
| 10.13+ | <u>[Amended and Restated Limited Liability Company Agreement, dated as of May 28, 2025, by and](exhibit1013-sx1.htm)</u><br><u>[among Cape Phase I Holdco, LLC, Cape HoldCo LLC, and Granite Energy InvestCo, LLC, as](exhibit1013-sx1.htm)</u><br><u>[amended.](exhibit1013-sx1.htm)</u><br>|
| 10.14+ | <u>[Amended and Restated Limited Liability Company Agreement, dated as of October 6, 2025, by and](exhibit1014-sx1.htm)</u><br><u>[among Cape Phase 1 Intermediate HoldCo LLC, Cape HoldCo LLC, and Centaurus Capital LP.](exhibit1014-sx1.htm)</u><br>|
| 10.15+ | <u>[Loan Agreement with XRL ALC, LLC.](exhibit1015-sx1.htm)</u> |
| 10.16+ | <u>[Credit Agreement, dated as of March 6, 2026, by and among Cape Phase 1 Borrower LLC and Phase 1](exhibit1016-sx1.htm)</u><br><u>[WellCo, LLC, as borrowers, and lenders from time to time party hereto, as lenders.](exhibit1016-sx1.htm)</u><br>|
| 21.1 | <u>[List of Subsidiaries of Fervo Energy Company.](exhibit211-sx1.htm)</u> |

---

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

---

| | |
|:---|:---|
| **Exhibit No.** | |
| 23.1 | <u>[Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm.](exhibit231-sx1.htm)</u> |
| 23.2 | <u>[Consent of DeGolyer and MacNaughton.](exhibit232-sx1.htm)</u> |
| 23.3\* | Consent of Latham & Watkins LLP (included in Exhibit 5.1). |
| 24.1 | <u>[Power of Attorney (included on signature page).](#i024b9246cdc64bff8f3f6e527abc6720_2113)</u> |
| 99.1+ | <u>[Report of DeGolyer and MacNaughton for the Project Cape Area, as of June 30, 2024.](exhibit991-sx1.htm)</u> |
| 99.2+ | <u>[Report of DeGolyer and MacNaughton for the Marble Area, as of December 31, 2025.](exhibit992-sx1.htm)</u> |
| 99.3+ | <u>[Report of DeGolyer and MacNaughton for the Swift Area, as of December 31, 2025.](exhibit993-sx1.htm)</u> |
| 99.4+ | <u>[Report of DeGolyer and MacNaughton for the Corsac Area, as of December 31, 2025.](exhibit994-sx1.htm)</u> |
| 99.5+ | <u>[Report of DeGolyer and MacNaughton for the Kit Area, as of December 31, 2025.](exhibit995-sx1.htm)</u> |
| 99.6+ | <u>[Report of DeGolyer and MacNaughton for the Star Area, as of December 31, 2025.](exhibit996-sx1.htm)</u> |
| 99.7+ | <u>[Report of DeGolyer and MacNaughton for the Fennec Area, as of December 31, 2025.](exhibit997-sx1.htm)</u> |
| 99.8+ | <u>[Report of DeGolyer and MacNaughton for the Blanford Area, as of December 31, 2025.](exhibit998-sx1.htm)</u> |
| 99.9+ | <u>[Report of DeGolyer and MacNaughton for the Aspen Area, as of December 31, 2025.](exhibit999-sx1.htm)</u> |
| 99.10+ | <u>[Report of DeGolyer and MacNaughton for the Cross Area, as of December 31, 2025.](exhibit9910-sx1.htm)</u> |
| 107 | <u>[Registration Fee Table.](fervofees041726.htm)</u> |

---

__________________

\*To be filed by amendment.

†Indicates a management contract or compensatory plan or arrangement.

+&nbsp;&nbsp;&nbsp;&nbsp; Portions of this exhibit (indicated by "[\*\*\*]") have been omitted as the registrant has determined that (i) the omitted information is not

material and (ii) the omitted information is the type that the registrant treats as private or confidential.

<u>[**Table of Contents**](#i024b9246cdc64bff8f3f6e527abc6720_2089)</u>

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, Fervo Energy Company has duly

caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in

Houston, Texas on this 17th day of April, 2026.

---

| | |
|:---|:---|
| **FERVO ENERGY COMPANY** | **FERVO ENERGY COMPANY** |
| By: | /s/ Timothy Latimer  |
| Name: | Timothy Latimer  |
| Title: | Chief Executive Officer, Chair of the Board |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes

and appoints Tim Latimer and David Ulrey, and each one of them, as his or her true and lawful attorneys-in-fact and

agents, with full power of substitution and resubstitution, for him or her and in their name, place and stead, in any

and all capacities, to sign any and all amendments (including post-effective amendments) to this registration

statement, and to sign any registration statement for the same offering covered by this registration statement that is

to be effective on filing pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and all post-effective

amendments thereto, and to file the same, with all exhibits thereto and other documents in connection therewith,

with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them,

full power and authority to do and perform each and every act and thing requisite and necessary to be done in

connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying

and confirming all that said attorneys-in-fact and agents or any of them, or his or her substitute or substitutes, may

lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Act of 1933, as

amended, this registration statement on Form S-1 has been signed by the following persons in the capacities set forth

opposite their names on April 17, 2026.

---

| | |
|:---|:---|
| **Signature** | **Title** |
| /s/ Timothy Latimer | Chief Executive Officer (Principal Executive Officer), Director |
| Timothy Latimer |  |
| /s/ David Ulrey | Chief Financial Officer (Principal Financial Officer)  |
| David Ulrey |  |
| /s/ Margaret C. Whitman | Director |
| Margaret C. Whitman |  |
| /s/ Robert Keehan | Director |
| Robert Keehan |  |
| /s/ Jessica Uhl | Director |
| Jessica Uhl |  |
| /s/ Anne Cleary | Director |
| Anne Cleary |  |
| /s/ Robert Lowe III | Director |
| Robert Lowe III |  |
| /s/ Ion Yadigaroglu | Director |
| Ion Yadigaroglu |  |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fervo Energy Co**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Class A common stock | 457(o) | $100000000.00 | 0.0001381 | $13810.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $13810.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $13810.00  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> (a) Includes Class A common stock, par value $0.0001 per share ("Class A common stock"), issuable upon exercise of the underwriters' option to purchase additional Class A common stock, if any. (b) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---

## Exhibit 3.1

**Exhibit 3.1**

---

| | |
|:---|:---|
| <u>Delaware</u> | Page 1 |
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***I, CHARUNI PATIBANDA-SANCHEZ, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE RESTATED CERTIFICATE OF "FERVO ENERGY COMPANY", FILED IN THIS OFFICE ON THE FOURTH DAY OF DECEMBER, A.D. 2025, AT 10:54 O'CLOCK A.M.***

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|:---|:---|:---|
| | ![secratary.jpg](secratary.jpg) | /s/ Charuni Patibanda-Sanchez |
| | ![secratary.jpg](secratary.jpg) | Charuni Patibanda-Sanchez, Secretary of State |
| | ![secratary.jpg](secratary.jpg) | |
| 6423450 8100<br>SR# 20254754480 | ![secratary.jpg](secratary.jpg) | Authentication: 205502331<br>Date: 12-04-25 |
| You may verify this certificate online at corp.delaware.gov/authver.shtml | You may verify this certificate online at corp.delaware.gov/authver.shtml | You may verify this certificate online at corp.delaware.gov/authver.shtml |

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**State of Delaware**<br>**Secretary of State**<br>**Division of Corporations**<br>**Delivered 10:54 AM 12/04/2025**<br>**FILED 10:54 AM 12/04/2025**<br>**SR 20254754480 - File Number 6423450**<br>

**AMENDED AND RESTATED**

**CERTIFICATE OF INCORPORATION**

**OF FERVO ENERGY COMPANY**

(Pursuant to Sections 242 and 245 of the

General Corporation Law of the State of Delaware)

Fervo Energy Company, a corporation organized and existing under and by virtue of the provisions of the General Corporation Law of the State of Delaware (the **"General Corporation Law"), DOES HEREBY CERTIFY:**

&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.&nbsp;&nbsp;&nbsp;&nbsp;**That the name of this corporation is Fervo Energy Company, and that this corporation was originally incorporated pursuant to the General Corporation Law on May 26, 2017 under the name Fervo Energy 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;**2.&nbsp;&nbsp;&nbsp;&nbsp;**That the Board of Directors duly adopted resolutions proposing to amend and restate the Certificate of Incorporation of this corporation, declaring said amendment and restatement to be advisable and in the best interests of this corporation and its stockholders, and authorizing the appropriate officers of this corporation to solicit the consent of the stockholders therefor, which resolution setting forth the proposed amendment and restatement is as follows:

**RESOLVED,** that the existing Certificate of Incorporation of this corporation be amended and restated in its entirety to read as follows:

**FIRST:** The name of this corporation is Fervo Energy Company (the **"Corporation").**

**SECOND:** The address of the Corporation's registered office in the State of Delaware is c/o Capitol Services, Inc., 108 Lakeland Avenue, Dover, Kent County, DE 19901. The name of its registered agent at such address is Capitol Services, Inc.

**THIRD:** The nature of the business or purposes to be conducted or promoted is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law.

**FOURTH:** The total number of shares of all classes of stock which the Corporation shall have authority to issue is (i) 358,278,774 shares of Common Stock, $0.0001 par value per share **("Common Stock")** and (ii) 283,545,547 shares of Preferred Stock, $0.0001 par value per share **("Preferred Stock").**

The following is a statement of the designations and the powers, privileges and rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;COMMON 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;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the rights, powers and preferences of the holders of the Preferred Stock set forth herein.

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&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting</u>. The holders of the Common Stock are entitled to one vote for each share of Common Stock held at all meetings of stockholders (and written actions in lieu of meetings); <u>provided</u>, <u>however</u>, that, except as otherwise required by law, holders of Common Stock, as such, shall not be entitled to vote on any amendment to this Amended and Restated Certificate of Incorporation that relates solely to the terms of one or more outstanding class or series of Preferred Stock if the holders of such affected class or series of Preferred Stock are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Amended and Restated Certificate of Incorporation or pursuant to the General Corporation Law. There shall be no cumulative voting. The number of authorized shares of Common Stock may be increased or decreased (but not below the sum of (i) the number of shares thereof then outstanding and (ii) the number of shares reserved for issuance (A) in respect of any options, warrants or other securities then outstanding and convertible into shares of Common Stock and (B) upon conversion of any shares of Preferred Stock then outstanding) by (in addition to any vote of the holders of one or more class or series of Preferred Stock that may be required by the terms of this Amended and Restated Certificate of Incorporation) the affirmative vote of the holders of shares of capital stock of the Corporation representing a majority of the votes represented by all outstanding shares of capital stock of the Corporation entitled to vote, voting together as a single class on an as-converted basis, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;PREFERRED STOCK

14,542,395 of the authorized Preferred Stock of the Corporation are hereby designated **"Series A Preferred Stock",** 2,452,745 of the authorized Preferred Stock of the Corporation are hereby designated **"Series A-l Preferred Stock",** 24,596,454 of the authorized Preferred Stock of the Corporation are hereby designated **"Series B Preferred Stock",** 43,481,861 of the authorized Preferred Stock of the Corporation are hereby designated **"Series C-l Preferred Stock",** 5,017,904 of the authorized Preferred Stock of the Corporation are hereby designated **"Series C-2 Preferred Stock",** 10,676,143 of the authorized Preferred Stock of the Corporation are hereby designated **"Series C-3 Preferred Stock"** (together with the Series C- 1 Preferred Stock and the Series C-2 Preferred Stock, the **"Series C Preferred Stock"),** 92,344,115 of the authorized Preferred Stock of the Corporation are hereby designated **"Series D-l Preferred Stock",** 4,766,557 of the authorized Preferred Stock of the Corporation are hereby designated **"Series D-2 Preferred Stock",** 25,467,691 of the authorized Preferred Stock of the Corporation are hereby designated **"Series D-3 Preferred Stock",** 112,098 of the authorized Preferred Stock of the Corporation are hereby designated **"Series D-4 Preferred Stock** (together with the Series D-l Preferred Stock, the Series D-2 Preferred Stock and the Series D-3 Preferred Stock, the **"Series D Preferred Stock"),** 56,537,255 of the authorized Preferred Stock of the Corporation are hereby designated **"Series E-l Preferred Stock",** and 3,550,329 of the authorized Preferred Stock of the Corporation are hereby designated **"Series E-2 Preferred Stock"** (together with the Series E-l Preferred Stock, the **"Series E Preferred Stock"),** each with the following rights, preferences, powers, privileges and restrictions, qualifications and limitations. Unless otherwise indicated, references to "sections" or "subsections" in this Part B of this Article Fourth refer to sections and subsections of Part B of this Article Fourth.

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends</u>. The Corporation shall not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Corporation (other than dividends on shares of Common Stock payable in shares of Common Stock) unless (in addition to the obtaining of any consents required elsewhere in this Amended and Restated Certificate of Incorporation) the holders of the Preferred Stock then outstanding shall first receive, or simultaneously receive, a dividend on each

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outstanding share of Preferred Stock in an amount at least equal to (i) in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share of Preferred Stock as would equal the product of (A) the dividend payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock and (B) the number of shares of Common Stock issuable upon conversion of a share of Preferred Stock, in each case calculated on the record date for determination of holders entitled to receive such dividend or (ii) in the case of a dividend on any class or series that is not convertible into Common Stock, at a rate per share of applicable series of Preferred Stock determined by (A) dividing the amount of the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to such class or series) and (B) multiplying such fraction by an amount equal to the Original Issue Price (as defined below); provided that, if the Corporation declares, pays or sets aside, on the same date, a dividend on shares of more than one class or series of capital stock of the Corporation, the dividend payable to the holders of Preferred Stock pursuant to this <u>Section 1</u> shall be calculated based upon the dividend on the class or series of capital stock that would result in the highest Preferred Stock dividend for the applicable series of Preferred Stock. In the case of the Series A Preferred Stock, the **"Original Issue Price"** shall mean $0.77360 per share; in the case of the Series A-l Preferred Stock, the **"Original Issue Price"** shall mean $0.05096 per share; in the case of the Series B Preferred Stock, the **"Original Issue Price"** shall mean $1.15230 per share; in the case of the Series C-l Preferred Stock, the **"Original Issue Price"** shall mean $2.5320900 per share; in the case of the Series C-2 Preferred Stock, the **"Original Issue Price"** shall mean $2.02567200 per share; in the case of the Series C-3 Preferred Stock, the **"Original Issue Price"** shall mean $1.68806000 per share; in the case of the Series D-l Preferred Stock, the **"Original Issue Price"** shall mean $2.53230 per share; in the case of the Series D-2 Preferred Stock, the **"Original Issue Price"** shall mean $2.15246 per share; in the case of the Series D-3 Preferred Stock, the **"Original Issue Price"** shall mean $5.28120 per share; in the case of the Series D-4 Preferred Stock, the **"Original Issue Price"** shall mean $4.48902 per share; in the case of the Series E-l Preferred Stock, the **"Original Issue Price"** shall mean $8.1716 per share; in the case of the Series E-2 Preferred Stock, the **"Original Issue Price"** shall mean $5.28120 per share, and in each case, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the applicable series of Preferred 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;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Liquidation, Dissolution or Winding Up; Certain Mergers, Consolidations and Asset Sales</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferential Payments to Holders of Series E Preferred Stock</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event (as defined below), the holders of shares of Series E Preferred Stock then outstanding shall be entitled to be paid out of consideration payable to the Corporation's stockholders or the assets available for distribution to the Corporation's stockholders, as applicable, before any payment shall be made to the holders of the Series A Preferred Stock, Series A-l Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock or Common Stock by reason of their ownership thereof, an amount per share of Preferred Stock equal to the greater of (i) such amount per share as would have been payable had all shares of Series E-l Preferred Stock or Series E-2 Preferred Stock, respectively (and all shares of all other series of Preferred Stock that would receive a larger distribution per share if such series of Preferred Stock were converted into Common Stock), been converted into Common Stock pursuant to <u>Section 4</u> immediately prior to such liquidation, dissolution or winding up or Deemed Liquidation Event of the Corporation or (ii) the applicable Original Issue Price for such share of Series E

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Preferred Stock, plus any dividends declared but unpaid thereon (collectively, the **"Series E Liquidation Amount").** If upon any such liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, the consideration payable to the Corporation's stockholders or the remaining assets available for distribution to the Corporation's stockholders, as applicable, shall be insufficient to pay the holders of shares of Series E Preferred Stock the full amount to which they shall be entitled, the holders of Series E Preferred Stock shall share ratably in any distribution of the consideration payable or remaining assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such contribution or distribution if all amounts payable on or with respect to such shares were paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferential Payments to Holders of Series D Preferred Stock</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event (as defined below), and after payment in full of amounts set forth in <u>Subsection 2,1</u> above, the holders of shares of Series D Preferred Stock then outstanding shall be entitled to be paid out of consideration payable to the Corporation's stockholders or the assets available for distribution to the Corporation's stockholders, as applicable, before any payment shall be made to the holders of the Series A Preferred Stock, Series A-1 Preferred Stock, Series B Preferred Stock, Series C Preferred Stock or Common Stock by reason of their ownership thereof, an amount per share of Preferred Stock equal to the greater of (i) such amount per share as would have been payable had all shares of Series D-l Preferred Stock, Series D-2 Preferred Stock, Series D-3 Preferred Stock, or Series D-4 Preferred Stock, respectively (and all shares of all other series of Preferred Stock that would receive a larger distribution per share if such series of Preferred Stock were converted into Common Stock), been converted into Common Stock pursuant to <u>Section 4</u> immediately prior to such liquidation, dissolution or winding up or Deemed Liquidation Event of the Corporation or (ii) the applicable Original Issue Price for such share of Series D Preferred Stock, plus any dividends declared but unpaid thereon (collectively, the **"Series D Liquidation Amount").** If upon any such liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, the consideration payable to the Corporation's stockholders or the remaining assets available for distribution to the Corporation's stockholders, as applicable, shall be insufficient to pay the holders of shares of Series D Preferred Stock the full amount to which they shall be entitled, the holders of Series D Preferred Stock shall share ratably in any distribution of the consideration payable or remaining assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such contribution or distribution if all amounts payable on or with respect to such shares were paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferential Payments to Holders of Series A Preferred Stock, Series A-l</u> <u>Preferred Stock, Series B Preferred Stock and Series C Preferred Stock</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event (as defined below), and after payment in full of amounts set forth in <u>Subsection 2.1</u> and <u>Subsection 2.2</u> above, the holders of shares of Series A Preferred Stock, Series A-1 Preferred Stock, Series B Preferred Stock and Series C Preferred Stock then outstanding shall, on a pari passu basis, be entitled to be paid out of consideration payable to the Corporation's stockholders or the assets available for distribution to the Corporation's stockholders, as applicable, before any payment shall be made to the holders of Common Stock by reason of their ownership thereof, an amount per share of Preferred Stock (measured separately for each series of Preferred Stock and treating each series of Preferred Stock in the manner that will maximize the Preferred Liquidation Amount of that series when each other series of Preferred maximizes its Preferred Liquidation Amount) equal to the greater of (i) such amount per share as would have been payable had all shares of such series of Preferred Stock (and all shares of all other series of Preferred Stock that would receive a larger distribution per share if such series of Preferred Stock were converted

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into Common Stock) been converted into Common Stock pursuant to <u>Section 4</u> immediately prior to such liquidation, dissolution or winding up or Deemed Liquidation Event of the Corporation or (ii) the applicable Original Issue Price for such series, plus any dividends declared but unpaid thereon (collectively, the **"Preferred Liquidation Amount"),** If upon any such liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, the consideration payable to the Corporation's stockholders or the remaining assets available for distribution to the Corporation's stockholders, as applicable, shall be insufficient to pay the holders of shares of Series A Preferred Stock, Series A-l Preferred Stock, Series B Preferred Stock and Series C Preferred Stock the full amount to which they shall be entitled, the holders of such series of Preferred Stock shall share ratably in any distribution of the consideration payable or remaining assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such contribution or distribution if all amounts payable on or with respect to such shares were paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments to Holders of Common Stock</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event, after the payment in full of each of the (i) Series E Liquidation Amount required to be paid to the holders of shares of Series E Preferred Stock (as provided in <u>Subsection 2.1</u>), (ii) Series D Liquidation Amount required to be paid to the holders of shares of Series D Preferred Stock (as provided in <u>Subsection 2.2</u>) and (iii) the Preferred Liquidation Amount required to be paid to the holders of shares of Series A Preferred Stock, Series A-l Preferred Stock, Series B Preferred Stock and Series C Preferred Stock (as provided in <u>Subsection 2.3</u>), the consideration not payable to the holders of the Preferred Stock as provided in <u>Subsection 2.1</u>, <u>Subsection 2.2</u> and <u>Subsection 2.3</u> or the remaining assets of the Corporation available for distribution to the Corporation's stockholders, as applicable shall be distributed among the holders of the shares of Common Stock, pro rata based on the number of shares held by each such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Deemed Liquidation 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definition</u>. Each of the following events shall be considered a **"Deemed Liquidation Event"** unless (i) the Requisite Holders (as defined below) and (ii) with respect to the Series E Preferred Stock, the Series E Requisite Holders, elect otherwise by written notice sent to the Corporation at least ten (10) days prior to the effective date of any such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;a merger, consolidation, statutory conversion, transfer of the Corporation, domestication or continuance in which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;the Corporation is a constituent party 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to such merger, consolidation, statutory conversion, transfer of the Corporation, domestication, or continuance, except any such merger, consolidation, statutory conversion, transfer of the Corporation, domestication or continuance involving the Corporation or a subsidiary in which the shares of capital stock of the Corporation outstanding immediately prior to such merger, consolidation, statutory conversion, transfer of the Corporation, domestication, or continuance continue to represent, or are converted into or exchanged for shares of capital stock or other equity interests that represent, immediately following such merger, consolidation, statutory conversion, transfer of the Corporation, domestication or continuance at least a majority, by voting power, of the capital stock of (1) the surviving or resulting corporation or entity; or (2) if the surviving or resulting corporation or entity is a wholly owned subsidiary of another corporation or entity immediately following such merger, consolidation, statutory conversion, transfer of the Corporation,

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domestication or continuance the parent corporation or entity of such surviving or resulting corporation; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(1) the sale, lease, transfer, exclusive license or other disposition in a single transaction or series of related transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation and its subsidiaries taken as a whole, or (2) the sale, lease, transfer, exclusive license or other disposition (whether by merger, consolidation, statutory conversion, transfer, domestication or continuance or otherwise, and whether in a single transaction or a series of related transactions) of one or more subsidiaries of the Corporation if substantially all of the assets of the Corporation and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Effecting a Deemed Liquidation Event</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall not have the power to effect a Deemed Liquidation Event referred to in <u>Subsection 2.5.1(a)(i)</u> unless the agreement or plan with respect to such transaction, or terms of such transaction (any such agreement, plan or terms, the **"Transaction Document")** provide that the consideration payable to the stockholders of the Corporation in such Deemed Liquidation Event shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Subsections 2,1</u>, <u>2.2</u>, <u>2.3</u>, and 2.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;In the event of a Deemed Liquidation Event referred to in <u>Subsection 2.5.1(a)(ii)</u> or 2.5.1(b), if the Corporation does not effect a dissolution of the Corporation under the General Corporation Law within ninety (90) days after such Deemed Liquidation Event, then (i) the Corporation shall send a written notice to each holder of Preferred Stock no later than the ninetieth (90<sup>th</sup>) day after the Deemed Liquidation Event advising such holders of their right (and the requirements to be met to secure such right) pursuant to the terms of the following clause; (ii) to require the redemption of such shares of Preferred Stock, and (iii) if the Requisite Holders so request in a written instrument delivered to the Corporation not later than one hundred twenty (120) days after such Deemed Liquidation Event, the Corporation shall use the consideration received by the Corporation for such Deemed Liquidation Event (net of any retained liabilities associated with the assets sold or technology licensed, as determined in good faith by the Board of Directors of the Corporation, including the approval of a majority of the Preferred Directors), together with any other assets of the Corporation available for distribution to its stockholders, all to the extent permitted by Delaware law governing distributions to stockholders (the **"Available Proceeds"),** on the one hundred fiftieth (150<sup>th</sup>) day after such Deemed Liquidation Event, to redeem all outstanding shares of Preferred Stock at a price per share equal to the applicable amount per share that the holders of each series of Preferred Stock are entitled to receive in respect of the Series E Liquidation Amount, the Series D Liquidation Amount and the Preferred Liquidation Amount, as applicable. Notwithstanding the foregoing, in the event of a redemption pursuant to the preceding sentence, if the Available Proceeds are not sufficient to redeem all outstanding shares of Preferred Stock, the Corporation shall redeem a pro rata portion of each holder's shares of Preferred Stock to the fullest extent of such Available Proceeds, first in accordance with the provisions of <u>Subsection 2.1</u>, second in accordance with the provisions of <u>Subsection 2,2</u>, and then in accordance with the provisions of <u>Subsection 2.3</u>, in each case, based on the respective amounts which would otherwise be payable in respect of the shares to be redeemed if the Available Proceeds were sufficient to redeem all such shares, and shall redeem the remaining shares in accordance with the foregoing priority as soon as it may lawfully do so under Delaware law governing distributions to stockholders. If applicable: (i) the

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Corporation shall send written notice of the mandatory redemption to each holder of record of Preferred Stock not less than twenty (20) days prior to the one hundred fiftieth (150th) day after the Deemed Liquidation Event at issue, which notice shall state: (1) the number of shares of Preferred Stock held by the holder that the Corporation shall redeem on such one hundred fiftieth (150th) day; (2) the specific day set for redemption (i.e., such one hundred fiftieth (150th) day) and the redemption price (i.e., the applicable liquidation amount provided under <u>Subsections 2.1</u>, <u>2.2</u>, and <u>2.3</u>); and (3) that the holder is to surrender to the Corporation, in the manner and at the place designated, such holder's certificates representing shares of Preferred Stock; and (ii) on or before such one hundred fiftieth (150th) day, each holder of shares of Preferred Stock to be redeemed on such one hundred fiftieth (150th) day (unless such holder has, prior to such one hundred fiftieth (150th) day and subject to the provisions of <u>Section 4,1,2</u>, exercised such holder's right to convert such shares as provided in <u>Section 4</u>), shall surrender such holder's certificates representing such shares (or, if such registered holder alleges that any such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation, in the manner and at the place designated in the Corporation's notice, and thereupon the redemption price for such shares shall be payable to the order of the person whose name appears on such certificates as the owner thereof. In the event less than all of the shares of Preferred Stock represented by a certificate are redeemed, a new certificate representing the unredeemed shares of Preferred Stock shall promptly be issued to such holder. If the Corporation's redemption notice shall have been duly given, and if on the applicable redemption date (i.e., the one hundred fiftieth (150th) day as aforesaid) the redemption price (i.e., the applicable liquidation amount provided under <u>Subsections 2.1</u>, <u>2.2</u> and 2.3, as aforesaid) is paid or tendered for payment or deposited with an independent payment agent so as to be available therefor in a timely manner, then notwithstanding that the certificates evidencing any of the shares of Preferred Stock so called for redemption shall not have been surrendered, all rights with respect to such shares shall forthwith after such redemption date terminate, except only the right of the holders to receive such redemption price without interest upon surrender of their certificates therefor. Prior to the distribution or redemption provided for in this <u>Subsection 2.5.2</u>, the Corporation shall not expend or dissipate the Available Proceeds for any purpose, except to discharge expenses incurred in connection with such Deemed Liquidation Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Amount Deemed Paid or Distributed</u>. The amount deemed paid or distributed to the holders of capital stock of the Corporation upon any such merger, consolidation, sale, transfer, exclusive license, other disposition or redemption shall be the cash or the value of the property, rights or securities to be paid or distributed to such holders pursuant to such Deemed Liquidation Event. The value of such property, rights or securities shall be determined in good faith by the Board of Directors of the Corporation, including the approval of a majority of the Preferred Directors (as defined below) then seated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Allocation of Escrow and Contingent Consideration</u>. In the event of a Deemed Liquidation Event pursuant to <u>Subsection 2.5.l(a)(i)</u>, if any portion of the consideration payable to the stockholders of the Corporation is payable only upon satisfaction of contingencies (the **"Additional Consideration"),** the Transaction Document shall provide that (a) the portion of such consideration that is not Additional Consideration (such portion, the **"Initial Consideration")** shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Subsections 2.1</u>, <u>2.2</u>, <u>2.3</u>, and <u>2.4</u> as if the Initial Consideration were the only consideration payable in connection with such Deemed Liquidation Event; and (b) any Additional Consideration which becomes payable to the stockholders of the Corporation upon satisfaction of such contingencies shall be allocated among the

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holders of capital stock of the Corporation in accordance with <u>Subsections 2.1</u>, <u>2.2</u>, <u>2.3</u>, and <u>2.4</u> after taking into account the previous payment of the Initial Consideration as part of the same transaction. For the purposes of this <u>Subsection 2.5.4</u>, consideration placed into escrow or retained as a holdback to be available for satisfaction of indemnification or similar obligations in connection with such Deemed Liquidation Event shall be deemed to be Additional Consideration.

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. On any matter presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of meeting), each holder of outstanding shares of Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of this Amended and Restated Certificate of Incorporation, holders of Preferred Stock shall vote together with the holders of Common Stock as a single class and on an as-converted to Common Stock basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Election of Directors</u>. The holders of record of the shares of Series A Preferred Stock, exclusively and as a separate class, shall be entitled to elect one (1) director of the Corporation (the **"Series A Director"),** the holders of record of the shares of Series B Preferred Stock, exclusively and as a separate class, shall be entitled to elect one (1) director of the Corporation (the **"Series B Director"),** the holders of record of the shares of Series C Preferred Stock, exclusively and as a separate class, shall be entitled to elect one (1) director of the Corporation (the **"Series C Director"),** the holders of record of the shares of the Preferred Stock and the Common Stock, voting together as a single class on an as-converted basis, shall be entitled to elect one (1) director of the Corporation (the **"Additional Director"),** the holders of record of the shares of Series E-l Preferred Stock, exclusively and as a separate class, shall be entitled to elect one (1) director of the Corporation (the **"Series E Director"** and together with the Series A Director, the Series B Director, the Series C Director and the Additional Director, the **"Preferred Directors")** and the holders of record of the shares of Common Stock, exclusively and as a separate class, shall be entitled to elect two (2) directors of the Corporation; and three (3) directors shall be elected by mutual consent of the other directors; <u>provided</u>, <u>however</u>, for administrative convenience, the initial Preferred Directors may also be appointed by the Board of Directors in connection with the approval of the initial issuance of Preferred Stock without a separate action by the holders of Preferred Stock. Any director elected as provided in the preceding sentence may be removed without cause by, and only by, the affirmative vote of the holders of the shares of the class or series of capital stock entitled to elect such director or directors, given either at a special meeting of such stockholders duly called for that purpose or pursuant to a written consent of stockholders. If the holders of shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Preferred Stock and Common Stock, voting together, Series E- 1 Preferred Stock or Common Stock, as the case may be, fail to elect a sufficient number of directors to fill all directorships for which they are entitled to elect directors, voting exclusively and as a separate class, pursuant to the first sentence of this <u>Subsection 3.2</u>, then any directorship not so filled shall remain vacant until such time as the holders of the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Preferred Stock and Common Stock, voting together, Series E-l Preferred Stock or Common Stock, as the case may be, elect a person to fill such directorship by vote or written consent in lieu of a meeting; and no such directorship may be filled by stockholders of the Corporation other than by the stockholders of the Corporation that are entitled to elect a person to fill such directorship, voting exclusively and as a separate class. The holders of record of the shares of Common Stock and of any other class or series of voting stock (including the Preferred

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Stock), exclusively and voting together as a single class on an as converted basis, shall be entitled to elect the balance of the total number of directors of the Corporation. At any meeting held for the purpose of electing a director, the presence in person or by proxy of the holders of a majority of the outstanding shares of the class or series entitled to elect such director shall constitute a quorum for the purpose of electing such director. Except as otherwise provided in this <u>Subsection 3.2</u>, a vacancy in any directorship filled by the holders of any class or series shall be filled only by vote or written consent in lieu of a meeting of the holders of such class or series or by any remaining director or directors elected by the holders of such class or series pursuant to this <u>Subsection 3.2</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Preferred Stock Protective Provisions</u>. At any time when shares of Preferred Stock are outstanding, the Corporation shall not, either directly or indirectly by amendment, merger, consolidation, domestication, transfer of Corporation, continuance, recapitalization, reclassification, waiver, statutory conversion, or otherwise, effect any of the following without (in addition to any other vote required by law or this Amended and Restated Certificate of Incorporation) the written consent or affirmative vote of the Requisite Holders given in writing or by vote at a meeting, consenting or voting (as the case may be) together as a single class on an as-converted basis, and any such act or transaction entered into without such consent or vote shall be null and void *ah initio,* and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1&nbsp;&nbsp;&nbsp;&nbsp;liquidate, dissolve, or wind-up the business affairs of the Corporation, effect any Deemed Liquidation Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.2&nbsp;&nbsp;&nbsp;&nbsp;amend, alter, repeal or waive any provision of this Amended and Restated Certificate of Incorporation or the Bylaws of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.3&nbsp;&nbsp;&nbsp;&nbsp;create, or authorize the creation of, or issue or obligate itself to issue, any additional class or series of capital stock (or security convertible into or exercisable into any class or series of capital stock) unless the same ranks junior to each series of Preferred Stock with respect to the distribution of assets on the liquidation, dissolution or winding up of the Corporation, the payment of dividends and rights of redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4&nbsp;&nbsp;&nbsp;&nbsp;increase or decrease the authorized number of shares of Common Stock or Preferred Stock, or any class or series thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.5&nbsp;&nbsp;&nbsp;&nbsp;(i) reclassify, alter or amend any existing security of the Corporation that is pari passu with any series of Preferred Stock in respect of the distribution of assets on the liquidation, dissolution or winding up of the Corporation, the payment of dividends or rights of redemption, if such reclassification, alteration or amendment would render such other security senior to any series of Preferred Stock in respect of any such right, preference, or privilege or (ii) reclassify, alter or amend any existing security of the Corporation that is junior to any series of Preferred Stock in respect of the distribution of assets on the liquidation, dissolution or winding up of the Corporation, the payment of dividends or rights of redemption, if such reclassification, alteration or amendment would render such other security senior to or pari passu with any series of Preferred Stock in respect of any such right, preference or privilege;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.6&nbsp;&nbsp;&nbsp;&nbsp;purchase or redeem (or permit any subsidiary to purchase or redeem) or pay or declare any dividend or make any distribution on, any shares of capital stock of the Corporation other than repurchases of stock from former employees, officers, directors, consultants or other persons who performed services for the Corporation or any subsidiary in connection with the

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cessation of such employment or service at the lower of then fair market value and the original purchase price thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.7&nbsp;&nbsp;&nbsp;&nbsp;create or authorize the creation of any debt security unless such debt security has been approved by the Board of Directors, including a majority of the Preferred Directors then seated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.8&nbsp;&nbsp;&nbsp;&nbsp;increase or decrease the authorized number of directors constituting the Board of Directors; 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;3.3.9&nbsp;&nbsp;&nbsp;&nbsp;sell, assign, license, pledge, or encumber material portion of the assets, operating business, material technology or intellectual property of the Corporation or any of its subsidiaries, other than licenses granted in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Series D Preferred Stock Protective Provisions</u>. At any time when shares of Series D Preferred Stock are outstanding, the Corporation shall not, either directly or indirectly by amendment, merger, consolidation, domestication, transfer of Corporation, continuance, reorganization, recapitalization, reclassification, waiver, statutory conversion, or otherwise, effect any of the following acts or transactions without (in addition to any other vote required by law or this Amended and Restated Certificate of Incorporation) the written consent or affirmative vote of the Series D Requisite Holders (as defined below) given in writing or by vote at a meeting, consenting or voting (as the case may be) together as a single class on an as-converted basis, and any such act or transaction that has not been approved by such consent or vote prior to such act or transaction being effected shall be null and void *ab initio,* and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.1&nbsp;&nbsp;&nbsp;&nbsp;amend, alter, or repeal any provision of this Amended and Restated Certificate of Incorporation or the Bylaws of the Corporation in a manner that adversely affects the power, preferences or rights of the Series D Preferred 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.2&nbsp;&nbsp;&nbsp;&nbsp;increase or decrease the authorized number of shares of Series D Preferred 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;3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Series E Preferred Stock Protective Provisions</u>. At any time when shares of Series E Preferred Stock are outstanding, the Corporation shall not, either directly or indirectly by amendment, merger, consolidation, domestication, transfer of the Corporation, continuance, reorganization, recapitalization, reclassification, waiver, statutory conversion, or otherwise, effect any of the following acts or transactions without (in addition to any other vote required by law or this Amended and Restated Certificate of Incorporation) the written consent or affirmative vote of the Series E Requisite Holders (as defined below) given in writing or by vote at a meeting, consenting or voting (as the case may be) together as a single class on an as-converted basis, and any such act or transaction that has not been approved by such consent or vote prior to such act or transaction being effected shall be null and void *ab initio,* and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5.1&nbsp;&nbsp;&nbsp;&nbsp;until December 4, 2027, liquidate, dissolve, or wind-up the business affairs of the Corporation, or effect any Deemed Liquidation Event, in each case, unless the consideration paid to the Corporation's stockholders in such transaction or series of related transactions results in consideration in respect of each share of Series E-l Preferred Stock of at least 1.5 times the Original Issue Price of such share of Series E-l Preferred Stock (or, in the case of a transaction or series of related transactions by merger, consolidation, share exchange or otherwise of the Corporation with a

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publicly traded "special purpose acquisition company" or its subsidiary (collectively, a "SPAC") in which the implied value of each share of Series E-l Preferred Stock is at least 1.5 times the Original Issue Price of such share of Series E-l Preferred Stock based on the lower of (x) the per-share consideration to be received by holders of shares of Common Stock in such transaction and (y) the per-share purchase price (inclusive of any discounts) in the corresponding PIPE transaction (if any), in each case determined based on the definitive documents providing for such transaction), in each case, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or similar recapitalization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5.2&nbsp;&nbsp;&nbsp;&nbsp;amend, alter, modify, or waive the applicability of any Deemed Liquidation Event with respect to the Series E Preferred 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;3.5.3&nbsp;&nbsp;&nbsp;&nbsp;increase or decrease the authorized number of Series E Directors, or change the number of votes entitled to be cast by the Series E Director on any matter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5.4&nbsp;&nbsp;&nbsp;&nbsp;amend, alter, or repeal any provision of this Amended and Restated Certificate of Incorporation or the Bylaws of the Corporation in a manner that adversely affects the power, preferences or rights of the Series E Preferred 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;3.5.5&nbsp;&nbsp;&nbsp;&nbsp;create, or authorize the creation of, or issue or obligate itself to issue, any additional class or series of capital stock (or security convertible into or exercisable into any class or series of capital stock) unless the same ranks junior to the Series E Preferred Stock with respect to the distribution of assets on the liquidation, dissolution or winding up of the Corporation, the payment of dividends and rights of redemption; 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;3.5.6&nbsp;&nbsp;&nbsp;&nbsp;increase or decrease the authorized number of shares of Series E Preferred 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;3.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Requisite Holders</u>. For purposes of this Article Fourth, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;**"Requisite Holders"** shall mean the holders of a majority of the then-outstanding shares of Preferred Stock, voting together as a single class on an as converted basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;**"Series D Requisite Holders"** shall mean the holders of a majority of the then-outstanding shares of Series D Preferred Stock, voting together as a single class on an as converted basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;**"Series E Requisite Holders"** shall mean the holders of at least 60% of the then-outstanding shares of Series E Preferred Stock, voting together as a single class on an as converted basis, which must include at least 60% of the then-outstanding shares of Series E-l Preferred 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;4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Optional Conversion</u>. The holders of the Preferred Stock shall have conversion rights as follows (the "Conversion Rights"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Right to Convert</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Conversion Ratio</u>. Each share of Preferred Stock shall be convertible at the option of the holder thereof, at any time and from time to time, and without the payment

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of additional consideration by the holder thereof, into such number of fully paid and non-assessable shares of Common Stock as is determined by dividing the applicable Original Issue Price by the Conversion Price (as defined below) in effect at the time of conversion. The **"Conversion Price"** applicable to the Series A Preferred Stock shall initially be equal to $0.77360, the **"Conversion Price"** applicable to the Series A-l Preferred Stock shall initially be equal to $0.05096, the **"Conversion Price"** for the Series B Preferred Stock shall initially be equal to $1.15230, the **"Conversion Price"** for the Series C-l Preferred Stock shall initially be equal to $2.5320900, the **"Conversion Price"** for the Series C-2 Preferred Stock shall initially be equal to $2.02567200, the **"Conversion Price"** for the Series C-3 Preferred Stock shall initially be equal to $1.68806000, the **"Conversion Price"** for the Series D-l Preferred Stock shall initially be equal to $2.53230, the **"Conversion Price"** for the Series D-2 Preferred Stock shall initially be equal to $2.15246, the **"Conversion Price"** for the Series D-3 Preferred Stock shall initially be equal to $5.28120, the **"Conversion Price"** for the Series D-4 Preferred Stock shall initially be equal to $4.48902, the **"Conversion Price"** for the Series E-l Preferred Stock shall initially be equal to $8.1716, and the **"Conversion Price"** for the Series E-2 Preferred Stock shall initially be equal to $5.28120. Each initial applicable Conversion Price, and the rate at which shares of each series of Preferred Stock may be converted into shares of Common Stock, shall be subject to adjustment as provided 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Conversion Rights</u>. In the event of a liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event, the Conversion Rights shall terminate at the close of business on the last full day preceding the date fixed for the payment of any such amounts distributable on such event to the holders of Preferred Stock; provided that the foregoing termination of Conversion Rights shall not affect the amount(s) otherwise paid or payable in accordance with <u>Subsections 2.1</u>, <u>2.2</u> and <u>2.3</u>, to the holders of Preferred Stock pursuant to such liquidation, dissolution or winding up of the Corporation or a Deemed Liquidation Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Fractional Shares</u>. No fractional shares of Common Stock shall be issued upon conversion of the Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be entitled, the Corporation shall pay cash equal to such fraction multiplied by the fair market value of a share of Common Stock as determined in good faith by the Board of Directors of the Corporation, including the approval of a majority of the Preferred Directors. Whether or not fractional shares would be issuable upon such conversion shall be determined on the basis of the total number of shares of Preferred Stock the holder is at the time converting into Common Stock and the aggregate number of shares of Common Stock issuable upon such conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Mechanics of Conversion</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Conversion</u>. In order for a holder of Preferred Stock to voluntarily convert shares of Preferred Stock into shares of Common Stock, such holder shall (a) provide written notice to the Corporation's transfer agent at the office of the transfer agent for the Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent) that such holder elects to convert all or any number of such holder's shares of Preferred Stock and, if applicable, any event on which such conversion is contingent and (b) if such holder's shares are certificated, surrender the certificate or certificates for such shares of Preferred Stock (or, if such registered holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate), at the office of the transfer agent for the Preferred Stock (or at the principal office of the Corporation if the

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Corporation serves as its own transfer agent). Such notice shall state such holder's name or the names of the nominees in which such holder wishes the shares of Common Stock to be issued. If required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or his, her or its attorney duly authorized in writing. The close of business on the date of receipt by the transfer agent (or by the Corporation if the Corporation serves as its own transfer agent) of such notice and, if applicable, certificates (or lost certificate affidavit and agreement) shall be the time of conversion (the **"Conversion Time"),** and the shares of Common Stock issuable upon conversion of the specified shares shall be deemed to be outstanding of record as of such date. The Corporation shall, as soon as practicable after the Conversion Time (i) issue and deliver to such holder of Preferred Stock, or to his, her or its nominees, a certificate or certificates for the number of full shares of Common Stock issuable upon such conversion in accordance with the provisions hereof and a certificate for the number (if any) of the shares of Preferred Stock represented by the surrendered certificate that were not converted into Common Stock, (ii) pay in cash such amount as provided in <u>Subsection 4.2</u> in lieu of any fraction of a share of Common Stock otherwise issuable upon such conversion and (iii) pay all declared but unpaid dividends on the shares of Preferred Stock converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Reservation of Shares</u>. The Corporation shall at all times when the Preferred Stock shall be outstanding, reserve and keep available out of its authorized but unissued capital stock, for the purpose of effecting the conversion of the Preferred Stock, such number of its duly authorized shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding Preferred Stock; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Preferred Stock, the Corporation shall take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes, including, without limitation, engaging in best efforts to obtain the requisite stockholder approval of any necessary amendment to this Amended and Restated Certificate of Incorporation. Before taking any action which would cause an adjustment reducing a respective applicable Conversion Price below the then par value of the shares of Common Stock issuable upon conversion of such series of Preferred Stock, the Corporation will take any corporate action which may, in the opinion of its counsel, be necessary in order that the Corporation may validly and legally issue fully paid and non-assessable shares of Common Stock at such adjusted applicable Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Conversion</u>. All shares of Preferred Stock which shall have been surrendered for conversion as herein provided shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease and terminate at the Conversion Time, except only the right of the holders thereof to receive shares of Common Stock in exchange therefor, to receive payment in lieu of any fraction of a share otherwise issuable upon such conversion as provided in <u>Subsection 4.2</u> and to receive payment of any dividends declared but unpaid thereon. Any shares of Preferred Stock so converted shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>No Further Adjustment</u>. Upon any conversion of a series of Preferred Stock, no adjustment to the applicable Conversion Price for such series shall be made for any declared but unpaid dividends on such series of Preferred Stock surrendered for conversion or on the Common Stock delivered upon conversion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes</u>. The Corporation shall pay any and all issue and other similar taxes that may be payable in respect of any issuance or delivery of shares of Common Stock upon conversion of shares of Preferred Stock pursuant to this <u>Section 4</u>. The Corporation shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of shares of Common Stock in a name other than that in which the shares of Preferred Stock so converted were registered, and no such issuance or delivery shall be made unless and until the person or entity requesting such issuance has paid to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustments to Applicable Conversion Price for Diluting Issues</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Definitions</u>. For purposes of this Article Fourth, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;**"Option"** shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;**"Original Issue Date"** shall mean the date on which the first share of Series E-l Preferred Stock was issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;**"Convertible Securities"** shall mean any evidences of indebtedness, shares or other securities directly or indirectly convertible into or exchangeable for Common Stock, but excluding Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;**"Additional Shares of Common Stock"** shall mean all shares of Common Stock issued (or, pursuant to <u>Subsection 4.4.3</u> below, deemed to be issued) by the Corporation after the Original Issue Date, other than (1) the following shares of Common Stock and (2) shares of Common Stock deemed issued pursuant to the following Options and Convertible Securities (clauses (1) and (2), collectively, **"Exempted Securities"):**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock, Options or Convertible Securities issued as a dividend or distribution on Preferred 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock, Options or Convertible Securities issued by reason of a dividend, stock split, split-up or other distribution on shares of Common Stock that is covered by <u>Subsection 4.5</u>, <u>4.6</u>, <u>4.7</u> or <u>4.8</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock or Options issued to employees or directors of, or consultants or advisors to, the Corporation or any of its subsidiaries pursuant to a plan, agreement or arrangement in effect as of the Original Issue Date or as may thereafter by approved by the Board of Directors, including a majority of the Preferred Directors then seated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually issued upon the conversion or exchange of Convertible Securities outstanding as of the Original Issue Date, in each case provided such issuance is pursuant to the terms of such Option or Convertible Security; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;shares of Series E Preferred Stock issued pursuant to the Series E Preferred Stock Purchase Agreement entered into by the Corporation on or about the date of this Amended and Restated Certificate of Incorporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>No Adjustment of Applicable Conversion Price</u>. Subject to <u>Section 7,</u> no adjustment in any applicable Conversion Price shall be made as the result of the issuance or deemed issuance of Additional Shares of Common Stock if the Corporation receives written notice from the holders of a maj ority of the then outstanding shares of such series of Preferred Stock, agreeing that no such adjustment shall be made as the result of the issuance or deemed issuance of such Additional Shares of Common 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;4.4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Deemed Issue of Additional Shares of Common Stock</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;If the Corporation at any time or from time to time after the Original Issue Date shall issue any Options or Convertible Securities (excluding Options or Convertible Securities which are themselves Exempted Securities) or shall fix a record date for the determination of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability, convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in case such a record date shall have been fixed, as of the close of business on such record 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment to an applicable Conversion Price pursuant to the terms of <u>Subsection 4.4.4</u>, are revised as a result of an amendment to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase or decrease in the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any such Option or Convertible Security or (2) any increase or decrease in the consideration payable to the Corporation upon such exercise, conversion and/or exchange, then, effective upon such increase or decrease becoming effective, an applicable Conversion Price computed upon the original issue of such Option or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted to such applicable Conversion Price as would have obtained had such revised terms been in effect upon the original date of issuance of such Option or Convertible Security. Notwithstanding the foregoing, no readjustment pursuant to this clause (b) shall have the effect of increasing an applicable Conversion Price to an amount which exceeds the lower of (i) the respective applicable Conversion Price in effect immediately prior to the original adjustment made as a result of the issuance of such Option or Convertible Security, or (ii) the respective applicable Conversion Price that would have resulted from any issuances of Additional Shares of Common Stock (other than deemed issuances of Additional Shares of Common Stock as a result of the issuance of such Option or Convertible Security) between the original adjustment date and such readjustment 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;If the terms of any Option or Convertible Security (excluding Options or Convertible Securities which are themselves Exempted Securities), the issuance of which did not result in an adjustment to an applicable Conversion Price pursuant to the terms of <u>Subsection 4.4.4</u> (either because the consideration per share (determined pursuant to <u>Subsection 4.4.5</u>) of the Additional Shares of Common Stock subject thereto was equal to or greater than any applicable Conversion Price then in effect, or because such Option or Convertible Security was issued before the Original Issue Date), are revised after the Original Issue Date as a result of an amendment to such terms

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or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible Security or (2) any decrease in the consideration payable to the Corporation upon such exercise, conversion or exchange, then such Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject thereto (determined in the manner provided in <u>Subsection 4.4.3(a)</u>) shall be deemed to have been issued effective upon such increase or decrease becoming effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security (or portion thereof) which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to an applicable Conversion Price pursuant to the terms of <u>Subsection 4.4.4</u>, the applicable Conversion Price shall be readjusted to such applicable Conversion Price as would have obtained had such Option or Convertible Security (or portion thereof) never been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, is calculable at the time such Option or Convertible Security is issued or amended but is subject to adjustment based upon subsequent events, any adjustment to an applicable Conversion Price provided for in this <u>Subsection 4.4,3</u> shall be effected at the time of such issuance or amendment based on such number of shares or amount of consideration without regard to any provisions for subsequent adjustments (and any subsequent adjustments shall be treated as provided in clauses (b) and (c) of this <u>Subsection 4.4,3</u>). If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable to the Corporation upon such exercise, conversion and/or exchange, cannot be calculated at all at the time such Option or Convertible Security is issued or amended, any adjustment to an applicable Conversion Price that would result under the terms of this <u>Subsection 4,4,3</u> at the time of such issuance or amendment shall instead be effected at the time such number of shares and/or amount of consideration is First calculable (even if subject to subsequent adjustments), assuming for purposes of calculating such adjustment to an applicable Conversion Price that such issuance or amendment took place at the time such calculation can first be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustment of Applicable Conversion Price Upon Issuance of</u> <u>Additional Shares of Common Stock</u>. In the event the Corporation shall at any time after the Original Issue Date issue Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to <u>Subsection 4.4.3</u>), without consideration or for a consideration per share less than the applicable Conversion Price in effect immediately prior to such issuance or deemed issuance, then the applicable Conversion Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest one-hundredth of a cent) determined in accordance with the following formula:

CP2-CP]\*(A + B)-(A + C).

For purposes of the foregoing formula, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;"CP2" shall mean the applicable Conversion Price in effect immediately after such issuance or deemed issuance of Additional Shares of Common Stock

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;"CPi" shall mean the applicable Conversion Price in effect immediately prior to such issuance or deemed issuance of Additional Shares of Common 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;"A" shall mean the number of shares of Common Stock outstanding immediately prior to such issuance or deemed issuance of Additional Shares of Common Stock (treating for this purpose as outstanding all shares of Common Stock issuable upon exercise of Options outstanding immediately prior to such issuance or deemed issuance or upon conversion or exchange of Convertible Securities (including the Preferred Stock) outstanding (assuming exercise of any outstanding Options therefor) immediately prior to such issue);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;"B" shall mean the number of shares of Common Stock that would have been issued if such Additional Shares of Common Stock had been issued or deemed issued at a price per share equal to CPi (determined by dividing the aggregate consideration received by the Corporation in respect of such issue by CPi); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;"C" shall mean the number of such Additional Shares of Common Stock issued in such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Determination of Consideration</u>. For purposes of this <u>Subsection 4.4,</u> the consideration received by the Corporation for the issuance or deemed issuance of any Additional Shares of Common Stock shall be computed 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash and Property</u>. Such consideration shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;insofar as it consists of cash, be computed at the aggregate amount of cash received by the Corporation, excluding amounts paid or payable for accrued interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as determined in good faith by the Board of Directors of the Corporation, including the approval of a majority of the Preferred 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;in the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Corporation for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (i) and (ii) above, as determined in good faith by the Board of Directors of the Corporation, including the approval of a majority of the Preferred 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Options and Convertible Securities</u>. The consideration per share received by the Corporation for Additional Shares of Common Stock deemed to have been issued pursuant to <u>Subsection 4.4,3</u>, relating to Options and Convertible Securities, shall be determined by dividing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;the total amount, if any, received or receivable by the Corporation as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Corporation upon the exercise of such Options or the conversion or exchange of such

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Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Multiple Closing Dates</u>. In the event the Corporation shall issue on more than one date Additional Shares of Common Stock that are a part of one transaction or a series of related transactions and that would result in an adjustment to an applicable Conversion Price pursuant to the terms of <u>Subsection 4.4.4</u>, and such issuance dates occur within a period of no more than ninety (90) days from the first such issuance to the final such issuance, then, upon the final such issuance, the applicable Conversion Price shall be readjusted to give effect to all such issuances as if they occurred on the date of the first such issuance (and without giving effect to any additional adjustments as a result of any such subsequent issuances within such period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustment for Stock Splits and Combinations</u>. If the Corporation shall at any time or from time to time after the Original Issue Date effect a subdivision of the outstanding Common Stock, an applicable Conversion Price in effect immediately before that subdivision shall be proportionately decreased so that the number of shares of Common Stock issuable on conversion of each share of such series shall be increased in proportion to such increase in the aggregate number of shares of Common Stock outstanding. If the Corporation shall at any time or from time to time after the Original Issue Date combine the outstanding shares of Common Stock, the applicable Conversion Price in effect immediately before the combination shall be proportionately increased so that the number of shares of Common Stock issuable on conversion of each share of such series of Preferred Stock shall be decreased in proportion to such decrease in the aggregate number of shares of Common Stock outstanding. Any adjustment under this subsection shall become effective at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustment for Certain Dividends and Distributions</u>. In the event the Corporation at any time or from time to time after the Original Issue Date shall make or issue, or fix a record date for the determination of holders of shares of Common Stock entitled to receive, a dividend or other distribution payable on the Common Stock in additional shares of Common Stock, then and in each such event the applicable Conversion Price in effect immediately before such event shall be decreased as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the applicable Conversion Price then in effect by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

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Notwithstanding the foregoing (a) if such record date shall have been fixed and such dividend is not folly paid or if such distribution is not folly made on the date fixed therefor, the applicable Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter the applicable Conversion Price shall be adjusted pursuant to this subsection as of the time of actual payment of such dividends or distributions; and (b) that no such adjustment shall be made if the holders of Preferred Stock simultaneously receive a dividend or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock as they would have received if all outstanding shares of Preferred Stock had been converted into Common Stock on the date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustments for Other Dividends and Distributions</u>. In the event the Corporation at any time or from time to time after the Original Issue Date shall make or issue, or fix a record date for the determination of holders of shares of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Corporation (other than a distribution of shares of Common Stock in respect of outstanding shares of Common Stock) or in other property and the provisions of <u>Section 1</u> do not apply to such dividend or distribution, then and in each such event the holders of Preferred Stock shall receive, simultaneously with the distribution to the holders of shares of Common Stock, a dividend or other distribution of such securities or other property in an amount equal to the amount of such securities or other property as they would have received if all outstanding shares of Preferred Stock had been converted into Common Stock on the date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustment for Merger or Reorganization, etc</u>. Subject to the provisions of <u>Subsection 2.4</u>, if there shall occur any reorganization, recapitalization, reclassification, consolidation or merger involving the Corporation in which the Common Stock (but not the Preferred Stock) is converted into or exchanged for securities, cash or other property (other than a transaction covered by <u>Subsections 4,4</u>, <u>4.6</u> or <u>4,7</u>), then, following any such reorganization, recapitalization, reclassification, consolidation or merger, each share of Preferred Stock shall thereafter be convertible in lieu of the Common Stock into which it was convertible prior to such event into the kind and amount of securities, cash or other property which a holder of the number of shares of Common Stock of the Corporation issuable upon conversion of one share of Preferred Stock immediately prior to such reorganization, recapitalization, reclassification, consolidation or merger would have been entitled to receive pursuant to such transaction; and, in such case, appropriate adjustment (as determined in good faith by the Board of Directors of the Corporation, including the approval of a majority of the Preferred Directors) shall be made in the application of the provisions in this <u>Section 4</u> with respect to the rights and interests thereafter of the holders of the Preferred Stock, to the end that the provisions set forth in this <u>Section 4</u> (including provisions with respect to changes in and other adjustments of an applicable Conversion Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities or other property thereafter deliverable upon the conversion of the Preferred 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;4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificate as to Adjustments</u>. Upon the occurrence of each adjustment or readjustment of an applicable Conversion Price pursuant to this <u>Section 4</u>, the Corporation at its expense shall, as promptly as reasonably practicable but in any event not later than ten (10) days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Preferred Stock a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property into which the Preferred Stock is convertible) and showing in detail the facts upon which such adjustment or readjustment is based. The Corporation shall, as promptly as reasonably practicable after the written request at any time of any holder of Preferred Stock (but in any event not later than ten (10) days thereafter), furnish or cause to be furnished to such holder a certificate setting forth (i) the applicable Conversion Price then in effect, and (ii) the number of shares of Common

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Stock and the amount, if any, of other securities, cash or property which then would be received upon the conversion of such series of Preferred 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;4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Record Date</u>. In the event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;the Corporation shall take a record of the holders of its Common Stock (or other capital stock or securities at the time issuable upon conversion of the Preferred Stock) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive any other security; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;of any capital reorganization of the Corporation, any reclassification of the Common Stock of the Corporation, or any Deemed Liquidation Event; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;of the voluntary or involuntary dissolution, liquidation or winding-up of the Corporation, then, and in each such case, the Corporation will send or cause to be sent to the holders of the Preferred Stock a notice specifying, as the case may be, (i) the record date for such dividend, distribution or right, and the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is proposed to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon the conversion of the Preferred Stock) shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Preferred Stock and the Common Stock. Such notice shall be sent at least ten (10) days prior to the record date or effective date for the event specified in such notice.

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Mandatory Conversion</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Trigger Events</u>. Upon either (a) the closing of the sale of shares of Common Stock to the public in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, resulting in at least $100,000,000 of proceeds and in connection with such offering the shares of Common Stock are listed for trading on the Nasdaq Stock Market's National Market, the New York Stock Exchange or another exchange or marketplace approved the Board of Directors, including the approval of a majority of the Preferred Directors (provided that, until December 4, 2027, the Series E Preferred Stock shall only automatically convert into shares of Common Stock pursuant to this clause (a) if such public offering is at a price of at least $12.2574 per share (in each case subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Common Stock)) or (b) the date and time, or the occurrence of an event, specified by vote or written consent of the (i) with respect to any conversion of the Series A Preferred Stock, the Series A-l Preferred Stock, the Series B Preferred Stock, the Series C-l Preferred Stock, the Series C-2 Preferred Stock, the Series C-3 Preferred Stock, the Series D-l Preferred Stock, the Series D-2 Preferred Stock, the Series D-3 Preferred Stock, and Series D-4 Preferred Stock, the Requisite Holders and (ii) with respect to any conversion of the Series E-l Preferred Stock and the Series E-2 Preferred Stock, the Series E Requisite Holders (the time of such closing or the date and time specified or the time of the event specified in such vote or written consent is referred to herein as the **"Mandatory Conversion Time"),** then (i) all outstanding shares of Preferred

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Stock shall automatically be converted into shares of Common Stock, at the then effective conversion rate as calculated pursuant to <u>Subsection 4,1,1</u> and (ii) such shares may not be reissued by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Procedural Requirements</u>. All holders of record of shares of Preferred Stock shall be sent written notice of the Mandatory Conversion Time and the place designated for mandatory conversion of all such shares of Preferred Stock pursuant to this <u>Section 5</u>. Such notice need not be sent in advance of the occurrence of the Mandatory Conversion Time. Upon receipt of such notice, each holder of shares of Preferred Stock in certificated form shall surrender his, her or its certificate or certificates for all such shares (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation at the place designated in such notice. If so required by the Corporation, any certificates surrendered for conversion shall be endorsed or accompanied by written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or by his, her or its attorney duly authorized in writing. All rights with respect to the Preferred Stock converted pursuant to <u>Subsection 5.1</u>, including the rights, if any, to receive notices and vote (other than as a holder of Common Stock), will terminate at the Mandatory Conversion Time (notwithstanding the failure of the holder or holders thereof to surrender any certificates at or prior to such time), except only the rights of the holders thereof, upon surrender of any certificate or certificates of such holders (or lost certificate affidavit and agreement) therefor, to receive the items provided for in the next sentence of this <u>Subsection 5.2</u>. As soon as practicable after the Mandatory Conversion Time and, if applicable, the surrender of any certificate or certificates (or lost certificate affidavit and agreement) for Preferred Stock, the Corporation shall (a) issue and deliver to such holder, or to his, her or its nominees, a certificate or certificates for the number of full shares of Common Stock issuable on such conversion in accordance with the provisions hereof and (b) pay cash as provided in <u>Subsection 4.2</u> in lieu of any fraction of a share of Common Stock otherwise issuable upon such conversion and the payment of any declared but unpaid dividends on the shares of Preferred Stock converted. Such converted Preferred Stock shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Preferred Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Redemption</u>. Other than as set forth in <u>Subsection 2.4.2(b)</u>, the Preferred Stock is not redeemable at the option of the holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver</u>. Any of the rights, powers, preferences and other terms of a series of the Preferred Stock or the Preferred Stock as a class that are set forth herein may be waived on behalf of all holders of such series of Preferred Stock or the Preferred Stock as a class, as the case may be, by the affirmative written consent or vote of the holders of a majority of the shares of such series of Preferred Stock or the Preferred Stock as a class, as applicable, that are then outstanding, treating any convertible Preferred Stock as-if converted to Common Stock; <u>provided</u>, <u>however</u>, that (i) any adjustments to the Conversion Price for the Series D-l Preferred Stock and the Series D-2 Preferred Stock set forth herein may only be waived on behalf of all holders of Series D-1 Preferred Stock and Series D-2 Preferred Stock by the affirmative written consent or vote of the Series D Requisite Holders, (ii) any adjustments to the Conversion Price for the Series D-3 Preferred Stock or the Series D-4 Preferred Stock set forth herein may only be waived on behalf of all holders of the Series D-3 Preferred Stock and the Series D-4 Preferred Stock by the holders of a majority of the outstanding shares of the Series D-3 Preferred Stock and the Series D-4 Preferred Stock, voting together as a single class on an as converted basis, and (iii) any adjustments to the applicable Conversion Price for the Series E-1 Preferred Stock or Series E-2 Preferred

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Stock set forth herein may only be waived on behalf of all holders of Series E-1 Preferred Stock and Series E-2 Preferred Stock by the affirmative written consent or vote of the Series E Requisite Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Redeemed or Otherwise Acquired Shares</u>. Any shares of Preferred Stock that are redeemed, converted or otherwise acquired by the Corporation or any of its subsidiaries shall be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred. Neither the Corporation nor any of its subsidiaries may exercise any voting or other rights granted to the holders of Preferred Stock following redemption, conversion or acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any notice required or permitted by the provisions of this Article Fourth to be given to a holder of shares of Preferred Stock shall be mailed, postage prepaid, to the post office address last shown on the records of the Corporation, or given by electronic communication in compliance with the provisions of the General Corporation Law, and shall be deemed sent upon such mailing or electronic transmission.

**FIFTH:** Subject to any additional vote required by this Amended and Restated Certificate of Incorporation or Bylaws, in furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to make, repeal, alter, amend and rescind any or all of the Bylaws of the Corporation.

**SIXTH:** Subject to any additional vote required by this Amended and Restated Certificate of Incorporation, the number of directors of the Corporation shall be determined in the manner set forth in the Bylaws of the Corporation. Each director shall be entitled to one vote on each matter presented to the Board of Directors; provided, however, that, so long as the holders of Preferred Stock are entitled to elect a Preferred Director, the affirmative vote of a majority of the Preferred Directors shall be required for the authorization by the Board of Directors of any matters set forth in the Amended and Restated Investors' Rights Agreement, dated on or about the Original Issue Date, by and among the Corporation and the other parties thereto, as such agreement may be amended from time to time, to the extent required by such provision and if the Preferred Directors are then serving.

**SEVENTH:** Elections of directors need not be by written ballot unless the Bylaws of the Corporation shall so provide.

**EIGHTH:** Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws of the Corporation may provide. The books of the Corporation may be kept outside the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

**NINTH:** To the fulllest extent permitted by law, a director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the General Corporation Law or any other law of the State of Delaware is amended after approval by the stockholders of this Article Ninth to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law as so amended. Any repeal or modification of the foregoing provisions of this Article Ninth by the stockholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation existing at the time of, or increase the liability of any

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director of the Corporation with respect to any acts or omissions of such director occurring prior to, such repeal or modification.

**TENTH:** To the fullest extent permitted by applicable law, the Corporation is authorized to provide indemnification of (and advancement of expenses to) directors, officers and agents of the Corporation (and any other persons to which General Corporation Law permits the Corporation to provide indemnification) through Bylaw provisions, agreements with such agents or other persons, vote of stockholders or disinterested directors or otherwise, in excess of the indemnification and advancement otherwise permitted by Section 145 of the General Corporation Law. Any amendment, repeal or modification of the foregoing provisions of this Article Tenth shall not (a) adversely affect any right or protection of any director, officer or other agent of the Corporation existing at the time of such amendment, repeal or modification or (b) increase the liability of any director of the Corporation with respect to any acts or omissions of such director, officer or agent occurring prior to, such amendment, repeal or modification.

**ELEVENTH:** The Corporation renounces, to the fullest extent permitted by law, any interest or expectancy of the Corporation in, or in being offered an opportunity to participate in, any Excluded Opportunity. An **"Excluded Opportunity"** is any matter, transaction or interest that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of (i) any director of the Corporation who is not an employee of the Corporation or any of its subsidiaries, or (ii) any holder of Preferred Stock or any partner, member, director, stockholder, employee, affiliate or agent of any such holder, other than someone who is an employee of the Corporation or any of its subsidiaries (collectively, the persons referred to in clauses (i) and (ii) are **"Covered Persons"),** unless such matter, transaction or interest is presented to, or acquired, created or developed by, or otherwise comes into the possession of, a Covered Person expressly and solely in such Covered Person's capacity as a director of the Corporation while such Covered Person is performing services in such capacity. Any repeal or modification of this Article Eleventh will only be prospective and will not affect the rights under this Article Eleventh in effect at the time of the occurrence of any actions or omissions to act giving rise to liability. Notwithstanding anything to the contrary contained elsewhere in this Amended and Restated Certificate of Incorporation, the affirmative vote of the Requisite Holders, will be required to amend or repeal, or to adopt any provisions inconsistent with this Article Eleventh.

**TWELFTH:** Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery in the State of Delaware shall be the sole and exclusive forum for any stockholder (including a beneficial owner) to bring (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim against the Corporation, its directors, officers or employees arising pursuant to any provision of the Delaware General Corporation Law or the Corporation's certificate of incorporation or bylaws or (iv) any action asserting a claim against the Corporation, its directors, officers or employees governed by the internal affairs doctrine, except for, as to each of (i) through (iv) above, any claim as to which the Court of Chancery determines that there is an indispensable party not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of the Court of Chancery within ten days following such determination), which is vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery, or for which the Court of Chancery does not have subject matter jurisdiction. If any provision or provisions of this Article

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Twelfth shall be held to be invalid, illegal or unenforceable as applied to any person or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Article Twelfth (including, without limitation, each portion of any sentence of this Article Twelfth containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision to other persons or entities and circumstances shall not in any way be affected or impaired thereby.

**THIRTEENTH:** For purposes of Section 500 of the California Corporations Code (to the extent applicable), in connection with any repurchase of shares of Common Stock permitted under this Amended and Restated Certificate of Incorporation from employees, officers, directors or consultants of the Corporation in connection with a termination of employment or services pursuant to agreements or arrangements approved by the Board of Directors (in addition to any other consent required under this Amended and Restated Certificate of Incorporation), such repurchase may be made without regard to any "preferential dividends arrears amount" or "preferential rights amount" (as those terms are defined in Section 500 of the California Corporations Code). Accordingly, for purposes of making any calculation under California Corporations Code Section 500 in connection with such repurchase, the amount of any "preferential dividends arrears amount" or "preferential rights amount" (as those terms are defined therein) shall be deemed to be zero (0).

**\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \*&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;**That the foregoing amendment and restatement was approved by the holders of the requisite number of shares of this corporation in accordance with Section 228 of the General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;**That this Amended and Restated Certificate of Incorporation, which restates and integrates and further amends the provisions of this Corporation's Certificate of Incorporation, has been duly adopted in accordance with Sections 242 and 245 of the General Corporation Law.

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**IN WITNESS WHEREOF,** this Amended and Restated Certificate of Incorporation has been executed by a duly authorized officer of this corporation on this <u>4th</u> day of December, 2025.

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| | |
|:---|:---|
| By: | /s/ Timothy Latimer |
|  | Timothy Latimer, President and CEO |

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**SIGNATURE PAGE TO AMENDED AND RESTATED CERTIFICATE OF INCORPORATION**

## Exhibit 3.2

**Exhibit 3.2**

**FORM OF SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION**

**OF**

**FERVO ENERGY COMPANY**

Fervo Energy Company (the "<u>Corporation</u>"), a corporation organized and existing under the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"), does hereby certify as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;The name of the Corporation is Fervo Energy Company. The Corporation was incorporated by the filing of its original Certificate of Incorporation with the Secretary of State of the State of Delaware on May 26, 2017.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;This Second Amended and Restated Certificate of Incorporation (the "<u>Restated</u> <u>Certificate</u>"), which amends, restates and further integrates the Amended and Restated Certificate of Incorporation of the Corporation as heretofore in effect, has been approved by the Board of Directors of the Corporation (the "<u>Board of Directors</u>") in accordance with Sections 242 and 245 of the DGCL, and has been adopted by the written consent of the stockholders of the Corporation in accordance with Section 228 of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The text of the Amended and Restated Certificate of Incorporation of the Corporation, as heretofore amended, is hereby amended and restated by this Restated Certificate to read in its entirety as set forth in <u>EXHIBIT A</u> attached hereto.

IN WITNESS WHEREOF, Fervo Energy Company has caused this Restated Certificate to be signed by a duly authorized officer of the Corporation, on May , 2026.

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| |
|:---|
| **Fervo Energy Company**, a Delaware corporation |
| By: |
| Name: |
| Title: |

---

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**<u>EXHIBIT A</u>**

**ARTICLE I**

The name of the corporation is Fervo Energy Company (the "<u>Corporation</u>").

**ARTICLE II**

The address of the Corporation's registered office in the State of Delaware is c/o Capitol Services, Inc., 108 Lakeland Avenue, Dover, Kent County, DE 19901, and the name of its registered agent at such address is Capitol Services, Inc.

**ARTICLE III**

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware (the "<u>DGCL</u>") as it now exists or may hereafter be amended and supplemented.

**ARTICLE IV**

The total number of shares of capital stock which the Corporation is authorized to issue is 1,510,000,000 comprised of (i) 1,500,000,000 shares of common stock, $0.0001 par value per share (the "<u>Common Stock</u>"), of which (a) 1,400,000,000 shares shall be a series designated as Class A Common Stock (the "<u>Class A Common Stock</u>"), and (b) 100,000,000 shares shall be a series designated as Class B Common Stock (the "<u>Class B Common Stock</u>"), and (ii) 10,000,000 shares of preferred stock, $0.0001 par value per share (the "<u>Preferred Stock</u>").

The number of authorized shares of Class A Common Stock, Class B Common Stock or Preferred Stock may be increased or decreased (but not below (i) the number of shares thereof then outstanding and (ii) with respect to the Class A Common Stock, the number of shares of Class A Common Stock reserved pursuant to Section 5 of Article V) without a separate vote of the holders of Class A Common Stock, Class B Common Stock or Preferred Stock, as applicable, irrespective of the provisions of Section 242(b)(2) of the DGCL.

**ARTICLE V**

The designations and the powers, privileges and rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital stock of the Corporation are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;<u>COMMON STOCK</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;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>.&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided herein or required by law, shares of Class A Common Stock and Class B Common Stock shall have the same rights, privileges, preferences and powers, rank equally (including as to dividends and distributions, and upon any liquidation, dissolution, distribution of assets or winding up of the Corporation), share ratably and be identical in all respects and as to all matters. The voting, dividend, liquidation and other rights, preferences and powers of the holders of Common Stock are subject to and qualified by

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the rights, powers and preferences of any series of Preferred Stock as may be designated by the Board of Directors of the Corporation (the "<u>Board of Directors</u>") and outstanding from time to 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;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting</u>.&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided herein or expressly required by law, at all meetings of stockholders and on all matters submitted to a vote of stockholders of the Corporation generally, (i) each holder of Class A Common Stock, as such, shall have the right to one (1) vote per share of Class A Common Stock held of record by such holder, and (ii) each holder of Class B Common Stock, as such, shall have the right to forty (40) votes per share of Class B Common Stock held of record by such holder. Except as otherwise provided herein or required by law, the holders of shares of Class A Common Stock and Class B Common Stock, as such, shall (a) at all times vote together as a single class on all matters (including the election of directors) submitted to a vote of the stockholders of the Corporation generally, and (b) be entitled to notice of any stockholders' meeting in accordance with the Amended and Restated Bylaws of the Corporation (as the same may be amended and/or restated from time to time, the "<u>Bylaws</u>"); provided that, except as otherwise required by law, holders of Common Stock, as such, shall not be entitled to vote on any amendment to this Restated Certificate that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Restated Certificate (including any Certificate of Designation (as defined herein)) or pursuant to the DGCL. There shall be no cumulative voting.

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends</u>. Subject to applicable law and the rights and preferences of any holders of any outstanding series of Preferred Stock, the holders of Common Stock, as such, shall be entitled to the payment of dividends on the Common Stock when, as and if declared by the Board of Directors in accordance with applicable law.

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Conversion of Class B Common Stock</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Right to Convert</u>. At any time, any holder of shares of Class B Common Stock, at the option of such holder, may convert any share of Class B Common Stock held by such holder at any time after the date of issuance of such share, at the office of the Corporation or any transfer agent for such stock, into one (1) share of Class A Common 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;b.<u>Automatic Conversion of Class B Common Stock Upon Transfer</u>. Each share of Class B Common Stock shall be automatically and immediately, without further action by the Corporation or the holder thereof, converted into one (1) validly issued, fully paid and nonassessable share of Class A Common Stock upon its sale or transfer of beneficial ownership to any person or entity; provided that none of the following shall constitute a "sale or transfer" for the purposes of this provision: (a) the pledge of shares of Class B Common Stock that creates a mere security interest in such shares pursuant to a bona fide loan or indebtedness transaction for so long

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as such stockholder continues to exercise control (within the meaning of the Securities Act of 1933, as amended (the "Securities Act")) over such pledged shares, provided, however, that a foreclosure on such shares or other similar action by the pledgee shall constitute a transfer; (b) entering into a support, voting, tender or similar agreement, arrangement or understanding (with or without granting a proxy) in connection with a merger or consolidation of the Corporation, or a sale of all or substantially all of the Corporation's assets, provided that such merger or consolidation or sale of assets and such agreement or understanding was approved by the affirmative vote of a majority of the total number of directors then in office in advance of the entry into such agreement or understanding; (c) any proxy granted to any of the officers or directors of the Corporation at the request of the Board of Directors with respect to the voting of any of the Corporation's capital stock in connection with actions to be taken at an annual or special meeting of stockholders; and (d) any transfer by a holder of Class B Common Stock (i) to a trust for the benefit of such holder or such holder's immediate family, or to such holder's Permitted Transferees (for purposes of this Restated Certificate, "Permitted Transferee" means, with respect to any holder of Class B Common Stock: (A) any member of such holder's immediate family, which shall include any relationship by blood, current or former marriage, domestic partnership or adoption, not more remote than first cousin; (B) any trust for the direct or indirect benefit of such holder or any member of such holder's immediate family; (C) any corporation, partnership, limited liability company or other entity of which such holder and/or members of such holder's immediate family are the legal and beneficial owners of all of the outstanding equity securities or similar interests; and (D) any corporation, partnership, limited liability company or other entity controlled by, or under common control with, such holder), (ii) by gift or charitable contribution, or (iii) upon the death of such holder by will, intestacy or other operation of law, in each case, so long as such transferee agrees to be bound by the terms of this Restated Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.<u>Mandatory Conversion of Class B Common Stock.</u> Each share of Class B Common Stock held by a Founder (as defined below) or any of such Founder's Permitted Transferees shall automatically, without further action by the Corporation or any holder thereof, be converted into one (1) validly issued, fully paid and nonassessable

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share of Class A Common Stock upon the earliest to occur of any of the following events (each, a "Mandatory Conversion Event"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 seven (7) year anniversary of the effective date of the registration statement filed by the Corporation in connection with its initial public offering of shares of Class A Common Stock (the "Sunset Date");

(ii)the date on which the Founders, together with their respective Permitted Transferees, collectively cease to hold at least twenty-five percent (25%) of the aggregate number of shares of Class B Common Stock held by the Founders and their respective Permitted Transferees as of the effective date of the registration statement filed by the Corporation in connection with its initial public offering of shares of Class A Common 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) with respect to a particular Founder and such Founder's Permitted Transferees only, the death or Disability (as defined below) of such Founder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) with respect to a particular Founder and such Founder's Permitted Transferees only, the termination of such Founder's employment with or service to the Corporation or any of its subsidiaries by the Corporation or such subsidiary for Cause (as defined 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any other event specified in a written agreement between the Corporation and any Founder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.<u>Definitions</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Cause" means, with respect to a Founder, (A) the meaning set forth in any written employment or service agreement between such Founder and the Corporation or any of its subsidiaries, or (B) if there is no such agreement or no such definition, (i) such Founder's commission of, indictment for, conviction of, or plea of guilty or nolo contendere to, a felony or a crime involving moral turpitude, (ii) such Founder's willful misconduct or gross negligence in connection with such Founder's duties to the Corporation or any of its subsidiaries, (iii) such Founder's material breach of any fiduciary duty owed to the Corporation or any of its subsidiaries, (iv) such Founder's material breach of any written policy of the Corporation applicable to such Founder, or (v) such Founder's material breach of any written employment or service agreement with the Corporation or any of its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Disability" means, with respect to a Founder, (A) the meaning set forth in any written employment or service

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agreement between such Founder and the Corporation or any of its subsidiaries, or (B) if there is no such agreement or no such definition, such Founder's inability to perform the essential functions of such Founder's position with the Corporation or any of its subsidiaries, with or without reasonable accommodation, for a period of one hundred eighty (180) consecutive days or for a total of one hundred eighty (180) days in any twelve (12) month period, due to a physical or mental impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "Founder" means each of Timothy Latimer and Jack Norbeck.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.<u>Mechanics of Conversion</u>. In the event of an optional conversion pursuant to Section 4(a), before any holder of Class B Common Stock shall be entitled voluntarily to convert the same into shares of Class A Common Stock, such holder shall surrender the certificate or certificates therefor, duly endorsed, at the office of the Corporation or of any transfer agent for such stock, and shall give written notice to the Corporation at such office that such holder elects to convert the same and shall state therein the name or names in which such holder wishes the certificate or certificates for shares of Class A Common Stock to be issued. The Corporation shall, as soon as practicable thereafter, issue and deliver at such office to such holder, or to the nominee or nominees of such holder, a certificate or certificates for the number of shares of Class A Common Stock to which such holder shall be entitled as aforesaid. Such optional conversion shall be deemed to have been made immediately prior to the close of business on the date of surrender of the shares of Class B Common Stock to be converted, and the person or persons entitled to receive the shares of Class A Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Class A Common Stock on such date. If the conversion is in connection with the automatic conversion provisions set forth in Section 4(b) or Section 4(c), such conversion shall be deemed to have been made (i) in the case of Section 4(c)(i), on the Sunset Date, (ii) in the case of Section 4(c)(ii), on the date the applicable ownership threshold is no longer satisfied, (iii) in the case of Section 4(c)(iii) or (iv), on the date of the applicable Mandatory Conversion Event, (iv) in the case of Section 4(c)(v), on the date specified in the applicable agreement, or (v) in the case of Section 4(b), on the applicable date of transfer or sale, the persons entitled to receive shares of Class A Common Stock issuable upon such conversion shall be treated for all purposes as the record holders of such shares of Class A Common Stock as of the applicable date, and, until presented for transfer, certificates previously evidencing shares of Class B Common Stock shall represent the number of shares of Class A Common Stock into which such shares were automatically

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converted. Shares of Class B Common Stock converted pursuant to Section 4(a), Section 4(b), Section 4(c) or Section 4(d) shall be automatically retired and cancelled and may not be reissued, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Class B Common Stock accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.<u>Policies</u>. The Corporation may, from time to time, establish such policies and procedures, not in violation of applicable law or the other provisions of this Restated Certificate or Bylaws, relating to the conversion of the Class B Common Stock into Class A Common Stock, as it may deem necessary or advisable in connection therewith. If the Corporation has reason to believe that any circumstance giving rise to a conversion of shares of Class B Common Stock into Class A Common Stock has occurred but has not theretofore been reflected on the books of the Corporation (or in book-entry form as maintained by the transfer agent of the Corporation), the Corporation may request that the holder of such shares furnish affidavits or other evidence to the Corporation as the Corporation deems necessary to determine whether a conversion of shares of Class B Common Stock to Class A Common Stock has occurred, and if such holder does not within five (5) days after the date of such request furnish sufficient evidence to the Corporation (in the manner provided in the request) to enable the Corporation to determine that no such conversion has occurred, any such shares of Class B Common Stock, to the extent not previously converted, shall be automatically converted into shares of Class A Common Stock and the same shall thereupon be registered on the books and records of the Corporation (or in book-entry as maintained by the transfer agent of the Corporation).

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Reservation of Stock</u>. The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Class A Common Stock, solely for the purpose of effecting the conversion of the shares of Class B Common Stock, such number of shares of Class A Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of Class B Common Stock into shares of Class A Common 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;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Merger, Consolidation, Conversion, Domestication, Transfer or Continuance</u>. In the case of any consolidation or merger of the Corporation with or into any other entity or any conversion, domestication, transfer or continuance of the Corporation, the holders of shares of Class A Common Stock or Class B Common Stock shall be treated identically and ratably on a per share basis with respect to any consideration into which such shares are converted or any such consideration paid or otherwise distributed to the stockholders unless (i) such distribution, payment or consideration consists, in whole or in part, of shares of capital stock or other equity interests ("<u>Equity Consideration</u>"), in which case, the holders of shares of Class A Common

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Stock or Class B Common Stock may receive, or have the right to elect to receive, different or disproportionate Equity Consideration in connection with such consolidation, merger, conversion, domestication, transfer or continuance or other similar transaction only if and solely to the extent that the difference in the per share Equity Consideration to the holders of the Class A Common Stock and Class B Common Stock is with respect to the voting power of such securities, with each share of Equity Consideration distributed to holders of Class B Common Stock (or issuable upon conversion of shares of Class B Common Stock) having forty (40) times the voting power of each share of Equity Consideration distributed to the holders of Class A Common Stock (or issuable upon conversion of shares of Class A Common Stock) in connection with such consolidation, merger or other transaction or (ii) any different or disproportionate treatment is approved by the affirmative vote of the holders of a majority of the outstanding shares of Class A Common Stock and Class B Common Stock, each voting separately as a class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Subdivisions, Combinations or Reclassifications</u>. Shares of Class A Common Stock or Class B Common Stock may not be subdivided, combined or reclassified unless the shares of such other class are concurrently therewith proportionately subdivided, combined or reclassified in a manner that maintains the same proportionate equity ownership among the holders of the outstanding Class A Common Stock and Class B Common Stock on the record date for such subdivision, combination or reclassification; provided, however, that shares of one such class may be treated differently if such treatment is approved by the affirmative vote of the holders of a majority of the outstanding shares of Class A Common Stock and Class B Common Stock, each voting separately as a class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Liquidation</u>. Subject to the rights and preferences of any holders of any shares of any outstanding series of Preferred Stock, in the event of any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, the funds and assets of the Corporation that may be legally distributed to the Corporation's stockholders shall be distributed among the holders of the then outstanding Common Stock <u>pro</u> <u>rata</u> in accordance with the number of shares of Common Stock held by each such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;<u>PREFERRED STOCK</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>General</u>. Shares of Preferred Stock may be issued from time to time in one or more series, each of such series to have such terms as stated or expressed herein and in the resolution or resolutions providing for the creation and issuance of such series adopted by the Board of Directors as hereinafter provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Designation and Amount</u>. Authority is hereby expressly granted to the Board of Directors from time to time to issue the Preferred Stock in one or more series, and in connection with the creation of any such series, by adopting a resolution or resolutions providing for the issuance of the shares thereof and by filing a certificate of designation relating thereto in accordance with the DGCL (a "<u>Certificate of Designation</u>"), to determine and fix the number of shares of such series and such voting powers, full or limited, or no voting powers, and such designations, preferences and relative participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including without

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limitation thereof, dividend rights, conversion rights, redemption privileges and liquidation preferences, and to increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any series as shall be stated and expressed in such resolutions, all to the fullest extent now or hereafter permitted by the DGCL. Without limiting the generality of the foregoing, the resolution or resolutions providing for the creation and issuance of any series of Preferred Stock may provide that such series shall be superior or rank equally or be junior to any other series of Preferred Stock to the extent permitted by law and this Restated Certificate (including any Certificate of Designation). Except as otherwise required by law, holders of any series of Preferred Stock shall be entitled only to such voting rights, if any, as shall expressly be granted thereto by this Restated Certificate (including any Certificate of Designation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Automatic Conversion of Preferred Stock Upon Qualified IPO.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Automatic Conversion</u>. Immediately prior to the closing of a Qualified IPO, each share of Preferred Stock then outstanding shall automatically be converted into a number of fully paid and nonassessable shares of Class A Common Stock equal to the number of shares of Class A Common Stock into which such share of Preferred Stock was convertible immediately prior to such conversion, as determined in accordance with the applicable Certificate of Designation (or, if no conversion ratio is specified in the applicable Certificate of Designation, on a one-for-one basis). Such conversion shall occur automatically without any further action by the holders of such shares and whether or not the certificates representing such shares (if any) are surrendered to the Corporation or its transfer agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.<u>Definition of Qualified IPO</u>. For purposes of this Restated Certificate, a "Qualified IPO" means the closing of a firm commitment underwritten initial public offering of shares of Class A Common Stock pursuant to an effective registration statement filed under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.<u>Mechanics of Conversion</u>. Upon the automatic conversion of any shares of Preferred Stock pursuant to this section, the holders of such converted shares shall surrender the certificates representing such shares (if any) at the office of the Corporation or any transfer agent for such stock. Thereupon, there shall be issued and delivered to such holder, promptly at such office and in such holder's name as shown on such surrendered certificate or certificates (or, in the case of uncertificated shares, the applicable book-entry records), a certificate or certificates (or book-entry notation) for the number of shares of Class A Common Stock into which the shares of Preferred Stock surrendered were converted. Until surrendered, each certificate previously evidencing shares of Preferred

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Stock shall be deemed for all purposes to represent the number of shares of Class A Common Stock into which such shares were converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.** <u>Retirement of Converted Shares</u>. All shares of Preferred Stock converted pursuant to this section shall be automatically retired and cancelled and may not be reissued, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Preferred Stock accordingly.

**ARTICLE VI**

For the management of the business and for the conduct of the affairs of the Corporation it is further provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Subject to the special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the directors of the Corporation shall be classified with respect to the time for which they severally hold office into three classes, designated as Class I, Class II and Class III. The initial Class I directors shall serve for a term expiring at the first annual meeting of stockholders following the initial registration of the Corporation's Common Stock pursuant to the Securities Exchange Act of 1934, as amended; the initial Class II directors shall serve for a term expiring at the second annual meeting of stockholders following such registration; and the initial Class III directors shall serve for a term expiring at the third annual meeting of stockholders following such registration. Each class shall consist, as nearly as possible, of one-third of the total number of such directors. At each annual meeting of stockholders of the Corporation beginning with the first annual meeting of stockholders following the Effective Time (for purposes of this Restated Certificate, "Effective Time" means the time at which this Restated Certificate is filed with the Secretary of State of the State of Delaware in connection with the closing of the Corporation's initial public offering of shares of Class A Common Stock), subject to any special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the successors of the class of directors whose term expires at that meeting shall be elected to hold office for a term expiring at the annual meeting of stockholders held in the third year following the year of their election. Each director shall hold office until their successor is duly elected and qualified or until their earlier death, resignation, disqualification or removal. No decrease in the number of directors shall shorten the term of any incumbent director. The Board of Directors is authorized to designate members of the Board of Directors already in office as Class I, Class II and Class III.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Except as otherwise expressly provided by the DGCL or this Restated Certificate, the business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Subject to the special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, the Board of Directors or any individual director may be removed from office at any time, but only for cause and only by the affirmative vote of the

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holders of at least two-thirds of the voting power of all of the then outstanding shares of voting stock of the Corporation entitled to vote at an election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Subject to the special rights of the holders of one or more outstanding series of Preferred Stock to elect directors, except as otherwise provided by law, any vacancies on the Board of Directors resulting from death, resignation, disqualification, retirement, removal or other causes and any newly created directorships resulting from any increase in the number of directors shall be filled exclusively by the affirmative vote of a majority of the directors then in office, even though less than a quorum, or by a sole remaining director (other than any directors elected by the separate vote of one or more outstanding series of Preferred Stock), and shall not be filled by the stockholders. Any director appointed in accordance with the preceding sentence shall hold office until the expiration of the term of the class to which such director shall have been appointed or until their earlier death, resignation, retirement, disqualification or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Whenever the holders of any one or more series of Preferred Stock issued by the Corporation shall have the right, voting separately as a series or separately as a class with one or more such other series, to elect directors at an annual or special meeting of stockholders, the election, term of office, removal and other features of such directorships shall be governed by the terms of this Restated Certificate (including any Certificate of Designation). Notwithstanding anything to the contrary in this Article VI, the number of directors that may be elected by the holders of any such series of Preferred Stock shall be in addition to the number fixed pursuant to paragraph B of this Article VI, and the total number of directors constituting the whole Board of Directors shall be automatically adjusted accordingly. Except as otherwise provided in the Certificate of Designation(s) in respect of one or more series of Preferred Stock, whenever the holders of any series of Preferred Stock having such right to elect additional directors are divested of such right pursuant to the provisions of such Certificate of Designation(s), the terms of office of all such additional directors elected by the holders of such series of Preferred Stock, or elected to fill any vacancies resulting from the death, resignation, disqualification or removal of such additional directors, shall forthwith terminate (in which case each such director thereupon shall cease to be qualified as, and shall cease to be, a director) and the total authorized number of directors of the Corporation shall automatically be reduced accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to adopt, amend or repeal Bylaws of the Corporation. In addition to any vote of the holders of any class or series of stock of the Corporation required by applicable law or by this Restated Certificate (including any Certificate of Designation in respect of one or more series of Preferred Stock) or the Bylaws of the Corporation, the adoption, amendment or repeal of the Bylaws of the Corporation by the stockholders of the Corporation shall require the affirmative vote of the holders of at least two-thirds of the voting power of all of

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the then outstanding shares of voting stock of the Corporation entitled to vote generally in an election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. The directors of the Corporation need not be elected by written ballot unless the Bylaws so provide.

**ARTICLE VII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Any action required or permitted to be taken by the stockholders of the Corporation must be effected at an annual or special meeting of stockholders of the Corporation, and shall not be taken by written consent in lieu of a meeting. Notwithstanding the foregoing, any action required or permitted to be taken by the holders of any series of Preferred Stock, voting separately as a series or separately as a class with one or more other such series, may be taken without a meeting, without prior notice and without a vote, to the extent expressly so provided by the applicable Certificate of Designation relating to such series of Preferred Stock, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding shares of the relevant series of Preferred 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 Corporation in accordance with the applicable provisions of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Subject to the special rights of the holders of one or more series of Preferred Stock, special meetings of stockholders of the Corporation may be called, for any purpose or purposes, at any time only by or at the direction of the Board of Directors, the Chair of the Board of Directors, the Chief Executive Officer or President, and shall not be called by any other person or persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Advance notice of stockholder nominations for the election of directors and of other business proposed to be brought by stockholders before any meeting of stockholders of the Corporation shall be given in the manner provided in the Bylaws of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Business Combinations with Interested Stockholders</u>. The Corporation elects not to be governed by Section 203 of the DGCL.

**ARTICLE VIII**

No director or officer of the Corporation shall have any personal liability to the Corporation or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or hereafter may be amended. Any amendment, repeal or modification of this Article VIII, or the adoption of any provision of the Restated Certificate inconsistent with this Article VIII, shall not adversely affect any right or protection of a director or officer of the Corporation with respect to any act or omission occurring prior to such amendment, repeal, modification or adoption. If the DGCL is amended after approval by the stockholders of this Article VIII to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of a director or officer of the

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Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended.

**ARTICLE IX**

A <u>Corporate Opportunity</u>. To the fullest extent permitted by the laws of the State of Delaware and in accordance with Section 122(17) of the DGCL (or any successor provision thereto), (i) the Corporation hereby renounces all interest and expectancy that it otherwise would be entitled to have in, and all rights to be offered an opportunity to participate in, any business opportunity that is presented to or acquired, created, or developed by, or otherwise comes into the possession of any directors of the Corporation and any of their Affiliates (such Persons being referred to collectively herein as, "<u>Covered Persons</u>" and, individually, as a "<u>Covered Person</u>"); (ii) no Covered Person will have any duty to refrain from (1) engaging in a corporate opportunity that may be in the same or similar lines of business in which the Corporation or its subsidiaries from time to time is engaged or proposes to engage in or (2) otherwise competing, directly or indirectly, with the Corporation or any of its subsidiaries; and (iii) if any Covered Person acquires knowledge of a potential transaction or other business opportunity which may be a corporate opportunity both for such Covered Person or any of their respective Affiliates, on the one hand, and for the Corporation or its subsidiaries, on the other hand, such Covered Person shall have no duty to communicate or offer such transaction or business opportunity to the Corporation or its subsidiaries and such Covered Person or any of their respective Affiliates may take any and all such transactions or opportunities for itself or offer such transactions or opportunities to any other Person and, to the fullest extent permitted by the laws of the State of Delaware, shall not be liable to the Corporation or its stockholders or any of its subsidiaries for any fiduciary duty or other duty (contractual or otherwise) including as a stockholder, director or officer of the Corporation solely by reason of the fact that such Covered Person pursues or acquires such corporate opportunity for itself, offers or directs such corporate opportunity to another Person, or does not present such corporate opportunity to the Corporation or its subsidiaries. "<u>Affiliate</u>" for purposes of this section means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another Person. "Person" for purposes of this section means any individual, corporation, general or limited partnership, limited liability company, joint venture, trust, association or any other entity.

To the fullest extent permitted by the laws of the State of Delaware, no potential transaction or business opportunity may be deemed to be a corporate opportunity of the Corporation or its subsidiaries unless (i) the Corporation or its subsidiaries would be permitted to undertake such transaction or opportunity in accordance with this Restated Certificate, (ii) the Corporation or its subsidiaries at such time have sufficient financial resources to undertake such transaction or opportunity, (iii) the Corporation or its subsidiaries have an interest or expectancy in such transaction or opportunity, and (iv) such transaction or opportunity would be in the same or similar line of business in which the Corporation or its subsidiaries are then engaged or a line of business that is reasonably related to, or a reasonable extension of, such line of business.

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To the fullest extent permitted by law, any Person purchasing or otherwise acquiring or holding any interest in any shares of capital stock of the Corporation shall be deemed to have notice of and to have consented to the provisions of this Article IX. Neither the alteration, amendment, addition to or repeal of this Article IX, nor the adoption of any provision of this Restated Certificate (including any Certificate of Designation) inconsistent with this Article IX, shall eliminate or reduce the effect of this Article IX in respect of any business opportunity first identified or any other matter occurring, or any cause of action, suit or claim that, but for this Article IX, would accrue or arise, prior to such alteration, amendment, addition, repeal or adoption.

B <u>Liability</u>. No director or officer of the Corporation shall have any personal liability to the Corporation or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or hereafter may be amended. Any amendment, repeal or modification of this Article IX, or the adoption of any provision of the Restated Certificate inconsistent with this Article IX, shall not adversely affect any right or protection of a director or officer of the Corporation with respect to any act or omission occurring prior to such amendment, repeal, modification or adoption. If the DGCL is amended after approval by the stockholders of this Article IX to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of a director or officer of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended.

**ARTICLE X**

The Corporation shall have the power to provide rights to indemnification and advancement of expenses to its current and former officers, directors, employees and agents and to any person who is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

**ARTICLE XI**

Unless the Corporation consents in writing to the selection of an alternative forum, (a) the Court of Chancery (the "<u>Chancery Court</u>") of the State of Delaware (or, in the event that the Chancery Court does not have jurisdiction, the federal district court for the District of Delaware or other state courts of the State of Delaware) shall, to the fullest extent permitted by law, be the sole and exclusive forum for (i) any derivative action, suit or proceeding brought on behalf of the Corporation, (ii) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed by any director, officer or stockholder of the Corporation to the Corporation or to the Corporation's stockholders, (iii) any action, suit or proceeding arising pursuant to any provision of the DGCL or the bylaws of the Corporation or this Restated Certificate (as either may be amended from time to time) or (iv) any action, suit or proceeding asserting a claim against the Corporation governed by the internal affairs doctrine; and (b) subject to the preceding provisions of this Article XI, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause or causes of action arising under the Securities Act of 1933, as amended, including all causes of action asserted against any

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defendant to such complaint. If any action the subject matter of which is within the scope of clause (a) of the immediately preceding sentence is filed in a court other than the courts in the State of Delaware (a "<u>Foreign Action</u>") in the name of any stockholder, such stockholder shall be deemed to have consented to (x) the personal jurisdiction of the state and federal courts in the State of Delaware in connection with any action brought in any such court to enforce the provisions of clause (a) of the immediately preceding sentence and (y) having service of process made upon such stockholder in any such action by service upon such stockholder's counsel in the Foreign Action as agent for such stockholder.

If any provision or provisions of this Article XI shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever, (a) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Article XI (including, without limitation, each portion of any paragraph of this Article XI containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (b) the application of such provision to other persons or entities and circumstances shall not in any way be affected or impaired thereby.

**ARTICLE XII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Notwithstanding anything contained in this Restated Certificate to the contrary, in addition to any vote required by applicable law, the following provisions in this Restated Certificate may be amended, altered, repealed or rescinded, in whole or in part, or any provision inconsistent therewith or herewith may be adopted, only by the affirmative vote of the holders of at least 66 2/3% of the total voting power of all the then outstanding shares of stock of the Corporation entitled to vote thereon, voting together as a single class: Part B of Article V, Article VI, Article VII, Article VIII, Article IX, Article X, Article XI and this Article XII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If any provision or provisions of this Restated Certificate shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever: (i) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Restated Certificate (including, without limitation, each portion of any paragraph of this Restated Certificate containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not, to the fullest extent permitted by applicable law, in any way be affected or impaired thereby and (ii) to the fullest extent permitted by applicable law, the provisions of this Restated Certificate

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(including, without limitation, each such portion of any paragraph of this Restated Certificate containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to permit the Corporation to protect its directors, officers, employees and agents from personal liability in respect of their good faith service to or for the benefit of the Corporation to the fullest extent permitted by law.

## Exhibit 3.3

**Exhibit 3.3**

**BYLAWS**

**OF**

**FERVO ENERGY COMPANY**

(a Delaware corporation)

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| | **<u>Page</u>** | **<u>Page</u>** |
| **ARTICLE I STOCKHOLDERS** | **ARTICLE I STOCKHOLDERS** | **1** |
| 1.1 | Place of Meetings | 1 |
| 1.2 | Annual Meeting | 1 |
| 1.3 | Special Meetings | 1 |
| 1.4 | Notice of Meetings | 1 |
| 1.5 | Voting List | 1 |
| 1.6 | Quorum | 2 |
| 1.7 | Adjournments | 2 |
| 1.8 | Voting and Proxies | 2 |
| 1.9 | Action at Meeting | 3 |
| 1.10 | Conduct of Meetings | 3 |
| 1.11 | Action without Meeting | 4 |
| **ARTICLE II DIRECTORS** | **ARTICLE II DIRECTORS** | **5** |
| 2.1 | General Powers | 5 |
| 2.2 | Number, Election and Qualification | 5 |
| 2.3 | Chairman of the Board; Vice Chairman of the Board | 5 |
| 2.4 | Tenure | 5 |
| 2.5 | Quorum | 5 |
| 2.6 | Action at Meeting | 6 |
| 2.7 | Removal | 6 |
| 2.8 | Vacancies | 6 |
| 2.9 | Resignation | 6 |
| 2.10 | Regular Meetings | 6 |
| 2.11 | Special Meetings | 6 |
| 2.12 | Notice of Special Meetings | 6 |
| 2.13 | Meetings by Conference Communications Equipment | 7 |
| 2.14 | Action by Consent | 7 |
| 2.15 | Committees | 7 |
| 2.16 | Compensation of Directors | 7 |
| **ARTICLE III OFFICERS** | **ARTICLE III OFFICERS** | **8** |
| 3.1 | Titles | 8 |
| 3.2 | Election | 8 |
| 3.3 | Qualification | 8 |
| 3.4 | Tenure | 8 |
| 3.5 | Resignation and Removal | 8 |

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| | | |
|:---|:---|:---|
| 3.6 | Vacancies | 8 |
| 3.7 | President; Chief Executive Officer | 9 |
| 3.8 | Vice Presidents | 9 |
| 3.9 | Secretary and Assistant Secretaries | 9 |
| 3.10 | Treasurer and Assistant Treasurers | 9 |
| 3.11 | Salaries | 10 |
| 3.12 | Delegation of Authority | 10 |
| **ARTICLE IV CAPITAL STOCK** | **ARTICLE IV CAPITAL STOCK** | **10** |
| 4.1 | Issuance of Stock | 10 |
| 4.2 | Stock Certificates; Uncertificated Shares | 10 |
| 4.3 | Transfers | 11 |
| 4.4 | Lost, Stolen or Destroyed Certificates | 11 |
| 4.5 | Record Date | 12 |
| 4.6 | Regulations | 12 |
| **ARTICLE V GENERAL PROVISIONS** | **ARTICLE V GENERAL PROVISIONS** | **12** |
| 5.1 | Fiscal Year | 12 |
| 5.2 | Corporate Seal | 12 |
| 5.3 | Waiver of Notice | 12 |
| 5.4 | Voting of Securities | 13 |
| 5.5 | Evidence of Authority | 13 |
| 5.6 | Certificate of Incorporation | 13 |
| 5.7 | Severability | 13 |
| 5.8 | Pronouns | 13 |
| **ARTICLE VI AMENDMENTS** | **ARTICLE VI AMENDMENTS** | **13** |
| 6.1 | By the Board of Directors | 13 |
| 6.2 | By the Stockholders | 13 |

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**<u>ARTICLE I</u>**

**<u>STOCKHOLDERS</u>**

I.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Place of Meetings</u>. All meetings of stockholders shall be held at such place, if any, as may be designated from time to time by the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President or, if not so designated, at the principal executive office of the corporation. The Board of Directors may, in its sole discretion, determine that a meeting shall not be held at any place, but shall instead be held solely by means of remote communication in a manner consistent with the General Corporation Law of the State of Delaware.

I.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Meeting</u>. The annual meeting of stockholders for the election of directors and for the transaction of such other business as may properly be brought before the meeting shall be held on a date and at a time designated by the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President. The Board of Directors may postpone, reschedule or cancel any previously scheduled annual meeting of stockholders.

I.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings</u>. Special meetings of stockholders for any purpose or purposes may be called at any time only by the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President, and may not be called by any other person or persons. Business transacted at any special meeting of stockholders shall be limited to matters relating to the purpose or purposes stated in the notice of meeting. The Board of Directors may postpone, reschedule or cancel any previously scheduled special meeting of stockholders.

I.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Meetings</u>. Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, notice of each meeting of stockholders, whether annual or special, shall be given not less than 10 nor more than 60 days before the date of the meeting to each stockholder entitled to vote at such meeting. Without limiting the manner by which notice otherwise may be given to stockholders, any notice shall be effective if given by a form of electronic transmission consented to (in a manner consistent with the General Corporation Law of the State of Delaware) by the stockholder to whom the notice is given. The notices of all meetings shall state the place, if any, date and time of the meeting and the means of remote communications, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such meeting. The notice of a special meeting shall state, in addition, the purpose or purposes for which the meeting is called. If notice is given by mail, such notice shall be deemed given when deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder's address as it appears on the records of the corporation. If notice is given by electronic transmission, such notice shall be deemed given at the time specified in Section 232 of the General Corporation Law of the State of Delaware.

I.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting List</u>. The corporation shall prepare, at least 10 days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, for a period of at least 10 days prior to the

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meeting: (a) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (b) during ordinary business hours, at the principal place of business of the corporation. If the meeting is to be held at a physical location (and not solely by means of remote communication), then the list shall be produced and kept at the time and place of the meeting during the whole time thereof, and may be examined by any stockholder who is present. If the meeting is to be held solely by means of remote communication, then the list shall also be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access such list shall be provided with the notice of the meeting. Except as otherwise provided by law, such list shall be the only evidence as to who are the stockholders entitled to examine the list of stockholders required by this Section 1.5 or to vote in person or by proxy at any meeting of stockholders.

I.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum</u>. Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, the holders of a majority in voting power of the shares of the capital stock of the corporation issued and outstanding and entitled to vote at the meeting, present in person, present by means of remote communication in a manner, if any, authorized by the Board of Directors in its sole discretion, or represented by proxy, shall constitute a quorum for the transaction of business; provided, however, that where a separate vote by a class or classes or series of capital stock is required by law or the Certificate of Incorporation, the holders of a majority in voting power of the shares of such class or classes or series of the capital stock of the corporation issued and outstanding and entitled to vote on such matter, present in person, present by means of remote communication in a manner, if any, authorized by the Board of Directors in its sole discretion, or represented by proxy, shall constitute a quorum entitled to take action with respect to the vote on such matter. A quorum, once established at a meeting, shall not be broken by the withdrawal of enough votes to leave less than a quorum.

I.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjournments</u>. Any meeting of stockholders may be adjourned from time to time to reconvene at any other time and to any other place at which a meeting of stockholders may be held under these Bylaws by the chairman of the meeting or by the stockholders present or represented at the meeting and entitled to vote, although less than a quorum. It shall not be necessary to notify any stockholder of any adjournment of less than 30 days if the time and place, if any, of the adjourned meeting, and the means of remote communication, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such adjourned meeting, are announced at the meeting at which adjournment is taken, unless after the adjournment a new record date is fixed for the adjourned meeting. At the adjourned meeting, the corporation may transact any business that might have been transacted at the original meeting. If the adjournment is for more than 30 days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting.

I.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting and Proxies</u>. Each stockholder shall have one vote upon the matter in question for each share of stock entitled to vote held of record by such stockholder and a proportionate vote for each fractional share so held, unless otherwise provided by law or the Certificate of Incorporation. Each stockholder of record entitled to vote at a meeting of stockholders, or to express consent or dissent to corporate action without a meeting, may vote or

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express such consent or dissent in person (including by means of remote communications, if any, by which stockholders may be deemed to be present in person and vote at such meeting) or may authorize another person or persons to vote or act for such stockholder by a proxy executed or transmitted in a manner permitted by the General Corporation Law of the State of Delaware by the stockholder or such stockholder's authorized agent and delivered (including by electronic transmission) to the Secretary of the corporation. No such proxy shall be voted or acted upon after three years from the date of its execution, unless the proxy expressly provides for a longer period.

I.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Action at Meeting</u>. When a quorum is present at any meeting, any matter other than the election of directors to be voted upon by the stockholders at such meeting shall be decided by the vote of the holders of shares of stock having a majority in voting power of the votes cast by the holders of all of the shares of stock present or represented at the meeting and voting affirmatively or negatively on such matter (or if there are two or more classes or series of stock entitled to vote as separate classes, then in the case of each such class or series, the holders of a majority in voting power of the shares of stock of that class or series present or represented at the meeting and voting affirmatively or negatively on such matter), except when a different vote is required by law, the Certificate of Incorporation or these Bylaws. When a quorum is present at any meeting, any election by stockholders of directors shall be determined by a plurality of the votes cast by the stockholders entitled to vote on the election.

I.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of Meetings</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Chairman of Meeting</u>. Unless otherwise provided by the Board of Directors, meetings of stockholders shall be presided over by the Chairman of the Board, if any, or in the Chairman's absence by the Vice Chairman of the Board, if any, or in the Vice Chairman's absence by the Chief Executive Officer, or in the Chief Executive Officer's absence, by the President, or in the President's absence by a Vice President, or in the absence of all of the foregoing persons by a chairman designated by the Board of Directors, or in the absence of such designation by a chairman chosen by vote of the stockholders at the meeting. The Secretary shall act as secretary of the meeting, but in the Secretary's absence the chairman of the meeting may appoint any person to act as secretary of the meeting.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Rules, Regulations and Procedures</u>. The Board of Directors may adopt by resolution such rules, regulations and procedures for the conduct of any meeting of stockholders of the corporation as it shall deem appropriate including, without limitation, such guidelines and procedures as it may deem appropriate regarding the participation by means of remote communication of stockholders and proxyholders not physically present at a meeting. Except to the extent inconsistent with such rules, regulations and procedures as adopted by the Board of Directors, the chairman of any meeting of stockholders shall have the right and authority to convene and (for any or no reason) to recess and/or adjourn the meeting and prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of such chairman, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board of Directors or prescribed by the chairman of the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the

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meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to stockholders entitled to vote at the meeting, their duly authorized and constituted proxies or such other persons as shall be determined; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. Unless and to the extent determined by the Board of Directors or the chairman of the meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

I.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Action without Meeting</u>.(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Taking of Action by Consent</u>. Any action required or permitted to be taken at any annual or special meeting of stockholders of the corporation 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 outstanding 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 on such action were present and voted. Except as otherwise provided by the Certificate of Incorporation, stockholders may act by written consent to elect directors; provided, however, that, if such consent is less than unanimous, such action by written consent may be in lieu of holding an annual meeting only if all of the directorships to which directors could be elected at an annual meeting held at the effective time of such action are vacant and are filled by such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Transmission of Consents</u>. A telegram, cablegram or other electronic transmission consenting to an action to be taken and transmitted by a stockholder or proxyholder, or by a person or persons authorized to act for a stockholder or proxyholder, shall be deemed to be written, signed and dated for the purposes of this section, provided that any such telegram, cablegram or other electronic transmission sets forth or is delivered with information from which the corporation can determine (i) that the telegram, cablegram or other electronic transmission was transmitted by the stockholder or proxyholder or by a person or persons authorized to act for the stockholder or proxyholder and (ii) the date on which such stockholder or proxyholder or authorized person or persons transmitted such telegram, cablegram or electronic transmission. The date on which such telegram, cablegram or electronic transmission is transmitted shall be deemed to be the date on which such consent was signed. No consent given by telegram, cablegram or other electronic transmission shall be deemed to have been delivered until such consent is reproduced in paper form and until such paper form shall be delivered to the corporation by delivery to its registered office in the State of Delaware, its principal place of business or an officer or agent of the corporation having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to a corporation's registered office shall be made by hand or by certified or registered mail, return receipt requested. Notwithstanding the foregoing limitations on delivery, consents given by telegram, cablegram or other electronic transmission may be otherwise delivered to the principal place of business of the corporation or to an officer or agent of the corporation having custody of the book in which proceedings of meetings of stockholders are recorded if, to the extent and in the manner provided by resolution of the Board of Directors. Any copy, facsimile or other reliable reproduction of a consent in writing may be substituted or used in lieu of the original writing for

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any and all purposes for which the original writing could be used, provided that such copy, facsimile or other reproduction shall be a complete reproduction of the entire original writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Taking of Corporate Action</u>. Prompt notice of the taking of corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for such meeting had been the date that written consents signed by a sufficient number of holders to take the action were delivered to the corporation.

**<u>ARTICLE II</u>**

**<u>DIRECTORS</u>**

II.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General Powers</u>. The business and affairs of the corporation shall be managed by or under the direction of a Board of Directors, who may exercise all of the powers of the corporation except as otherwise provided by law or the Certificate of Incorporation.

II.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Number, Election and Qualification</u>. Subject to the rights of holders of any series of Preferred Stock to elect directors, the number of directors of the corporation shall be established from time to time by the stockholders or the Board of Directors. The directors shall be elected at the annual meeting of stockholders by such stockholders as have the right to vote on such election. Election of directors need not be by written ballot. Directors need not be stockholders of the corporation.

II.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Chairman of the Board; Vice Chairman of the Board</u>. The Board of Directors may appoint from its members a Chairman of the Board and a Vice Chairman of the Board, neither of whom need be an employee or officer of the corporation. If the Board of Directors appoints a Chairman of the Board, such Chairman shall perform such duties and possess such powers as are assigned by the Board of Directors and, if the Chairman of the Board is also designated as the corporation's Chief Executive Officer, shall have the powers and duties of the Chief Executive Officer prescribed in Section 3.7 of these Bylaws. If the Board of Directors appoints a Vice Chairman of the Board, such Vice Chairman shall perform such duties and possess such powers as are assigned by the Board of Directors or the Chairman of the Board. Unless otherwise provided by the Board of Directors, the Chairman of the Board or, in the Chairman's absence, the Vice Chairman of the Board, if any, shall preside at all meetings of the Board of Directors.

II.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Tenure</u>. Each director shall hold office until the next annual meeting of stockholders and until a successor is elected and qualified, or until such director's earlier death, resignation or removal.

II.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum</u>. The greater of (a) a majority of the directors at any time in office and (b) one-third of the number of directors fixed pursuant to Section 2.2 of these Bylaws shall constitute a quorum of the Board of Directors. If at any meeting of the Board of Directors there shall be less than such a quorum, a majority of the directors present may adjourn the meeting

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from time to time without further notice other than announcement at the meeting, until a quorum shall be present.

II.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Action at Meeting</u>. Every act or decision done or made by a majority of the directors present at a meeting duly held at which a quorum is present shall be regarded as the act of the Board of Directors, unless a greater number is required by law or by the Certificate of Incorporation.

II.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal</u>. Except as otherwise provided by the General Corporation Law of the State of Delaware, any one or more or all of the directors of the corporation may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors, except that the directors elected by the holders of a particular class or series of stock may be removed without cause only by vote of the holders of a majority of the outstanding shares of such class or series.

II.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Vacancies</u>. Subject to the rights of holders of any series of Preferred Stock to elect directors, unless and until filled by the stockholders, any vacancy or newly-created directorship on the Board of Directors, however occurring, may be filled by vote of a majority of the directors then in office, although less than a quorum, or by a sole remaining director. A director elected to fill a vacancy shall be elected for the unexpired term of such director's predecessor in office, and a director chosen to fill a position resulting from a newly-created directorship shall hold office until the next annual meeting of stockholders and until a successor is elected and qualified, or until such director's earlier death, resignation or removal.

II.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation</u>. Any director may resign by delivering a resignation in writing or by electronic transmission to the corporation at its principal executive office or to the Chairman of the Board, the Chief Executive Officer, the President or the Secretary. Such resignation shall be effective upon receipt unless it is specified to be effective at some later time or upon the happening of some later event.

II.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Regular Meetings</u>. Regular meetings of the Board of Directors may be held without notice at such time and place as shall be determined from time to time by the Board of Directors; provided that any director who is absent when such a determination is made shall be given notice of the determination. A regular meeting of the Board of Directors may be held without notice immediately after and at the same place as the annual meeting of stockholders.

II.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings</u>. Special meetings of the Board of Directors may be held at any time and place designated in a call by the Chairman of the Board, the Chief Executive Officer, the President, two or more directors, or by one director in the event that there is only a single director in office.

II.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Special Meetings</u>. Notice of the date, place and time of any special meeting of directors shall be given to each director by the Secretary or by the officer or one of the directors calling the meeting. Notice shall be duly given to each director (a) in person or by telephone at least 24 hours in advance of the meeting, (b) by sending an electronic transmission, or delivering written notice by hand or reputable overnight delivery service, to such director's

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last known business, home or electronic transmission address at least 48 hours in advance of the meeting, or (c) by sending written notice by first-class mail to such director's last known business or home address at least 72 hours in advance of the meeting. A notice or waiver of notice of a meeting of the Board of Directors need not specify the purposes of the meeting.

II.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Meetings by Conference Communications Equipment</u>. Directors may participate in meetings of the Board of Directors or any committee thereof by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and participation by such means shall constitute presence in person at such meeting.

II.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Action by Consent</u>. Any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all members of the Board of Directors or committee, as the case may be, consent to the action in writing or by electronic transmission, and the written consents or electronic transmissions are filed with the minutes of proceedings of the Board of Directors or committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

II.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Committees</u>. The Board of Directors may designate one or more committees, each committee to consist of one or more of the directors of the corporation with such lawfully delegable powers and duties as the Board of Directors thereby confers, to serve at the pleasure of the Board of Directors. The Board of Directors may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members of the committee present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board of Directors and subject to the provisions of law, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the corporation and may authorize the seal of the corporation to be affixed to all papers that may require it. Each such committee shall keep minutes and make such reports as the Board of Directors may from time to time request. Except as the Board of Directors may otherwise determine, any committee may make rules for the conduct of its business, but unless otherwise provided by the directors or in such rules, its business shall be conducted as nearly as possible in the same manner as is provided in these Bylaws for the Board of Directors. Except as otherwise provided in the Certificate of Incorporation, these Bylaws, or the resolution of the Board of Directors designating the committee, a committee may create one or more subcommittees, each subcommittee to consist of one or more members of the committee, and delegate to a subcommittee any or all of the powers and authority of the committee.

II.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation of Directors</u>. Directors may be paid such compensation for their services and such reimbursement for expenses of attendance at meetings as the Board of Directors may from time to time determine. No such payment shall preclude any director from

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serving the corporation or any of its parent or subsidiary entities in any other capacity and receiving compensation for such service.

**<u>ARTICLE III</u>**

**<u>OFFICERS</u>**

III.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Titles</u>. The officers of the corporation shall consist of a Chief Executive Officer, a President, a Secretary, a Treasurer and such other officers with such other titles as the Board of Directors shall determine, including one or more Vice Presidents, Assistant Treasurers and Assistant Secretaries. The Board of Directors may appoint such other officers as it may deem appropriate.

III.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Election</u>. The Chief Executive Officer, President, Treasurer and Secretary shall be elected annually by the Board of Directors at its first meeting following the annual meeting of stockholders. Other officers may be appointed by the Board of Directors at such meeting or at any other meeting.

III.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Qualification</u>. No officer need be a stockholder. Any two or more offices may be held by the same person.

III.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Tenure</u>. Except as otherwise provided by law, by the Certificate of Incorporation or by these Bylaws, each officer shall hold office until such officer's successor is elected and qualified, unless a different term is specified in the resolution electing or appointing such officer, or until such officer's earlier death, resignation or removal.

III.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation and Removal</u>. Any officer may resign by delivering a resignation in writing or by electronic transmission to the corporation at its principal executive office or to the Chief Executive Officer, the President or the Secretary. Such resignation shall be effective upon receipt unless it is specified to be effective at some later time or upon the happening of some later event. Any officer may be removed at any time, with or without cause, by vote of a majority of the directors then in office. Except as the Board of Directors may otherwise determine, no officer who resigns or is removed shall have any right to any compensation as an officer for any period following such officer's resignation or removal, or any right to damages on account of such removal, whether such officer's compensation be by the month or by the year or otherwise, unless such compensation is expressly provided for in a duly authorized written agreement with the corporation.

III.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Vacancies</u>. The Board of Directors may fill any vacancy occurring in any office for any reason and may, in its discretion, leave unfilled for such period as it may determine any offices. Each such successor shall hold office for the unexpired term of such officer's predecessor and until a successor is elected and qualified, or until such officer's earlier death, resignation or removal.

III.7&nbsp;&nbsp;&nbsp;&nbsp;<u>President; Chief Executive Officer</u>. Unless the Board of Directors has designated another person as the corporation's Chief Executive Officer, the President shall be the Chief

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Executive Officer of the corporation. The Chief Executive Officer shall have general charge and supervision of the business of the corporation subject to the direction of the Board of Directors, and shall perform all duties and have all powers that are commonly incident to the office of the chief executive or that are delegated to such officer by the Board of Directors. The President shall perform such other duties and shall have such other powers as the Board of Directors or the Chief Executive Officer (if the President is not the Chief Executive Officer) may from time to time prescribe. In the event of the absence, inability or refusal to act of the Chief Executive Officer or the President (if the President is not the Chief Executive Officer), the Vice President (or if there shall be more than one, the Vice Presidents in the order determined by the Board of Directors) shall perform the duties of the Chief Executive Officer and when so performing such duties shall have all the powers of and be subject to all the restrictions upon the Chief Executive Officer.

III.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Vice Presidents</u>. Each Vice President shall perform such duties and possess such powers as the Board of Directors or the Chief Executive Officer may from time to time prescribe. The Board of Directors may assign to any Vice President the title of Executive Vice President, Senior Vice President or any other title selected by the Board of Directors.

III.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Secretary and Assistant Secretaries</u>. The Secretary shall perform such duties and shall have such powers as the Board of Directors or the Chief Executive Officer may from time to time prescribe. In addition, the Secretary shall perform such duties and have such powers as are incident to the office of the secretary, including without limitation the duty and power to give notices of all meetings of stockholders and special meetings of the Board of Directors, to attend all meetings of stockholders and the Board of Directors and keep a record of the proceedings, to maintain a stock ledger and prepare lists of stockholders and their addresses as required, to be custodian of corporate records and the corporate seal and to affix and attest to the same on documents.

Any Assistant Secretary shall perform such duties and possess such powers as the Board of Directors, the Chief Executive Officer or the Secretary may from time to time prescribe. In the event of the absence, inability or refusal to act of the Secretary, the Assistant Secretary (or if there shall be more than one, the Assistant Secretaries in the order determined by the Board of Directors) shall perform the duties and exercise the powers of the Secretary.

In the absence of the Secretary or any Assistant Secretary at any meeting of stockholders or directors, the chairman of the meeting shall designate a temporary secretary to keep a record of the meeting.

III.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Treasurer and Assistant Treasurers</u>. The Treasurer shall perform such duties and shall have such powers as may from time to time be assigned by the Board of Directors or the Chief Executive Officer. In addition, the Treasurer shall perform such duties and have such powers as are incident to the office of treasurer, including without limitation the duty and power to keep and be responsible for all funds and securities of the corporation, to deposit funds of the corporation in depositories selected in accordance with these Bylaws, to disburse such funds as ordered by the Board of Directors, to make proper accounts of such funds, and to render as

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required by the Board of Directors statements of all such transactions and of the financial condition of the corporation.

The Assistant Treasurers shall perform such duties and possess such powers as the Board of Directors, the Chief Executive Officer or the Treasurer may from time to time prescribe. In the event of the absence, inability or refusal to act of the Treasurer, the Assistant Treasurer (or if there shall be more than one, the Assistant Treasurers in the order determined by the Board of Directors) shall perform the duties and exercise the powers of the Treasurer.

III.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Salaries</u>. Officers of the corporation shall be entitled to such salaries, compensation or reimbursement as shall be fixed or allowed from time to time by the Board of Directors.

III.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Delegation of Authority</u>. The Board of Directors may from time to time delegate the powers or duties of any officer to any other officer or agent, notwithstanding any provision hereof.

**<u>ARTICLE IV</u>**

**<u>CAPITAL STOCK</u>**

IV.1&nbsp;&nbsp;&nbsp;&nbsp; <u>Issuance of Stock</u>. Subject to the provisions of the Certificate of Incorporation, the whole or any part of any unissued balance of the authorized capital stock of the corporation or the whole or any part of any shares of the authorized capital stock of the corporation held in the corporation's treasury may be issued, sold, transferred or otherwise disposed of by vote of the Board of Directors in such manner, for such lawful consideration and on such terms as the Board of Directors may determine.

IV.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Certificates; Uncertificated Shares</u>. The shares of the corporation shall be represented by certificates, provided that the Board of Directors may provide by resolution or resolutions that some or all of any or all classes or series of the corporation's stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the corporation. Every holder of stock of the corporation represented by certificates shall be entitled to have a certificate, in such form as may be prescribed by law and by the Board of Directors, representing the number of shares held by such holder registered in certificate form. Each such certificate shall be signed in a manner that complies with Section 158 of the General Corporation Law of the State of Delaware.

Each certificate for shares of stock that are subject to any restriction on transfer pursuant to the Certificate of Incorporation, these Bylaws, applicable securities laws or any agreement among any number of stockholders or among such holders and the corporation shall have conspicuously noted on the face or back of the certificate either the full text of the restriction or a statement of the existence of such restriction.

If the corporation shall be authorized to issue more than one class of stock or more than one series of any class, the powers, designations, preferences and relative, participating, optional

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or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or back of each certificate representing shares of such class or series of stock, provided that in lieu of the foregoing requirements there may be set forth on the face or back of each certificate representing shares of such class or series of stock a statement that the corporation will furnish without charge to each stockholder who so requests a copy of the full text of the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

Within a reasonable time after the issuance or transfer of uncertificated shares, the registered owner thereof shall be given a notice, in writing or by electronic transmission, containing the information required to be set forth or stated on certificates pursuant to Sections 151, 156, 202(a) or 218(a) of the General Corporation Law of the State of Delaware or, with respect to Section 151 of the General Corporation Law of the State of Delaware, a statement that the corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

IV.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfers</u>. Shares of stock of the corporation shall be transferable in the manner prescribed by law and in these Bylaws. Transfers of shares of stock of the corporation shall be made only on the books of the corporation or by transfer agents designated to transfer shares of stock of the corporation. Subject to applicable law, shares of stock represented by certificates shall be transferred only on the books of the corporation by the surrender to the corporation or its transfer agent of the certificate representing such shares properly endorsed or accompanied by a written assignment or power of attorney properly executed, and with such proof of authority or the authenticity of signature as the corporation or its transfer agent may reasonably require. Uncertificated shares may be transferred by delivery of a written assignment or power of attorney properly executed, and with such proof of authority or the authenticity of signature as the corporation or its transfer agent may reasonably require. Except as may be otherwise required by law, by the Certificate of Incorporation or by these Bylaws, the corporation shall be entitled to treat the record holder of stock as shown on its books as the owner of such stock for all purposes, including the payment of dividends and the right to vote with respect to such stock, regardless of any transfer, pledge or other disposition of such stock until the shares have been transferred on the books of the corporation in accordance with the requirements of these Bylaws.

IV.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Lost, Stolen or Destroyed Certificates</u>. The corporation may issue a new certificate of stock in place of any previously issued certificate alleged to have been lost, stolen or destroyed, upon such terms and conditions as the corporation may prescribe, including the presentation of reasonable evidence of such loss, theft or destruction and the giving of such indemnity and posting of such bond as the corporation may require for the protection of the corporation or any transfer agent or registrar.

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IV.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Record Date</u>. The Board of Directors may fix in advance a date as a record date for the determination of the stockholders entitled to notice of or to vote at any meeting of stockholders or to express consent (or dissent) to corporate action without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action. Such record date shall not precede the date on which the resolution fixing the record date is adopted, and such record date shall not be more than 60 nor less than 10 days before the date of such meeting, nor more than 10 days after the date of adoption of a record date for a consent without a meeting, nor more than 60 days prior to any other action to which such record date relates.

If no record date is fixed, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day before the day on which notice is given, or, if notice is waived, at the close of business on the day before the day on which the meeting is held. If no record date is fixed, the record date for determining stockholders entitled to express consent to corporate action without a meeting, when no prior action by the Board of Directors is necessary, shall be the day on which the first consent is properly delivered to the corporation. If no record date is fixed, the record date for determining stockholders for any other purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating to such purpose.

A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.

IV.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulations</u>. The issue, transfer, conversion and registration of shares of stock of the corporation shall be governed by such other regulations as the Board of Directors may establish.

**<u>ARTICLE V</u>**

**<u>GENERAL PROVISIONS</u>**

V.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Fiscal Year</u>. Except as from time to time otherwise designated by the Board of Directors, the fiscal year of the corporation shall begin on the first day of January of each year and end on the last day of December in each year.

V.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Corporate Seal</u>. The corporate seal shall be in such form as shall be approved by the Board of Directors.

V.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Notice</u>. Whenever notice is required to be given by law, by the Certificate of Incorporation or by these Bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether provided before, at or after the time of the event for which notice is to be given, shall be deemed equivalent to notice required to be given to such person. Neither the business nor the purpose of any meeting need be specified in any such waiver. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the

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express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened.

V.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting of Securities</u>. Except as the Board of Directors may otherwise designate, the Chief Executive Officer, the President or the Treasurer may waive notice of, vote, or appoint any person or persons to vote, on behalf of the corporation at, and act as, or appoint any person or persons to act as, proxy or attorney-in-fact for this corporation (with or without power of substitution) at, any meeting of stockholders or securityholders of any other entity, the securities of which may be held by this corporation, or with respect to the execution of any written or electronic consent in the name of the corporation as a holder of such securities.

V.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Authority</u>. A certificate by the Secretary, or an Assistant Secretary, or a temporary Secretary, as to any action taken by the stockholders, directors, a committee or any officer or representative of the corporation shall as to all persons who rely on the certificate in good faith be conclusive evidence of such action.

V.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificate of Incorporation</u>. All references in these Bylaws to the Certificate of Incorporation shall be deemed to refer to the Certificate of Incorporation of the corporation, as amended and in effect from time to time.

V.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. Any determination that any provision of these Bylaws is for any reason inapplicable, illegal or ineffective shall not affect or invalidate any other provision of these Bylaws.

V.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Pronouns</u>. All pronouns used in these Bylaws shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person or persons may require.

**<u>ARTICLE VI</u>**

**<u>AMENDMENTS</u>**

VI.1&nbsp;&nbsp;&nbsp;&nbsp;<u>By the Board of Directors</u>. These Bylaws may be altered, amended or repealed, in whole or in part, or new bylaws may be adopted by the Board of Directors.

VI.2&nbsp;&nbsp;&nbsp;&nbsp;<u>By the Stockholders</u>. These Bylaws may be altered, amended or repealed, in whole or in part, or new bylaws may be adopted by the affirmative vote of the holders of a majority of the shares of the capital stock of the corporation issued and outstanding and entitled to vote at any annual meeting of stockholders, or at any special meeting of stockholders, provided notice of such alteration, amendment, repeal or adoption of new bylaws shall have been stated in the notice of such special meeting.

## Exhibit 3.4

**Exhibit 3.4**

**Form of**

**Amended and Restated Bylaws of**

**Fervo Energy Company**

**(a Delaware corporation)**

**as of May , 2026**

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**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | **<u>Page</u>** |
| Article I - Corporate Offices | Article I - Corporate Offices | 3 |
| 1.1 | Registered Office | 3 |
| 1.2 | Other Offices | 3 |
| Article II - Meetings of Stockholders | Article II - Meetings of Stockholders | 3 |
| 2.1 | Place of Meetings | 3 |
| 2.2 | Annual Meeting | 3 |
| 2.3 | Special Meeting | 3 |
| 2.4 | Notice of Business to be Brought before a Meeting. | 4 |
| 2.5 | Notice of Nominations for Election to the Board of Directors. | 8 |
| 2.6 | Additional Requirements for Valid Nomination of Candidates to Serve as Director and, if Elected, to be Seated as Directors. | 11 |
| 2.7 | Notice of Stockholders' Meetings | 13 |
| 2.8 | Quorum | 13 |
| 2.9 | Adjourned Meeting; Notice | 13 |
| 2.10 | Conduct of Business | 14 |
| 2.11 | Voting | 14 |
| 2.12 | Record Date for Stockholder Meetings and Other Purposes | 15 |
| 2.13 | Proxies | 15 |
| 2.14 | List of Stockholders Entitled to Vote | 15 |
| 2.15 | Inspectors of Election | 16 |
| 2.16 | Delivery to the Corporation. | 16 |
| Article III - Directors | Article III - Directors | 17 |
| 3.1 | Powers | 17 |
| 3.2 | Number of Directors | 17 |
| 3.3 | Election, Qualification and Term of Office of Directors | 17 |
| 3.4 | Resignation and Vacancies | 17 |
| 3.5 | Place of Meetings; Meetings by Telephone | 17 |
| 3.6 | Regular Meetings | 18 |
| 3.7 | Special Meetings; Notice | 18 |
| 3.8 | Quorum | 18 |
| 3.9 | Board Action without a Meeting | 19 |
| 3.10 | Fees and Compensation of Directors | 19 |
| Article IV - Committees | Article IV - Committees | 19 |
| 4.1 | Committees of Directors | 19 |
| 4.2 | Committee Minutes | 19 |
| 4.3 | Meetings and Actions of Committees | 19 |
| 4.4 | Subcommittees. | 20 |
| Article V - Officers | Article V - Officers | 20 |
| 5.1 | Officers | 20 |

---

i

------

**TABLE OF CONTENTS**

**(continued)**

---

| | | |
|:---|:---|:---|
| | | **<u>Page</u>** |
| 5.2 | Appointment of Officers | 20 |
| 5.3 | Subordinate Officers | 20 |
| 5.4 | Removal and Resignation of Officers | 21 |
| 5.5 | Vacancies in Offices | 21 |
| 5.6 | Representation of Shares of Other Corporations | 21 |
| 5.7 | Authority and Duties of Officers | 21 |
| 5.8 | Compensation. | 21 |
| Article VI - Records | Article VI - Records | 21 |
| Article VII - General Matters | Article VII - General Matters | 22 |
| 7.1 | Execution of Corporate Contracts and Instruments | 22 |
| 7.2 | Stock Certificates | 22 |
| 7.3 | Special Designation of Certificates. | 22 |
| 7.4 | Lost Certificates | 23 |
| 7.5 | Shares Without Certificates | 23 |
| 7.6 | Construction; Definitions | 23 |
| 7.7 | Dividends | 23 |
| 7.8 | Fiscal Year | 23 |
| 7.9 | Seal | 23 |
| 7.10 | Transfer of Stock | 24 |
| 7.11 | Stock Transfer Agreements | 24 |
| 7.12 | Registered Stockholders | 24 |
| 7.13 | Waiver of Notice | 24 |
| Article VIII - Notice | Article VIII - Notice | 25 |
| 8.1 | Delivery of Notice; Notice by Electronic Transmission | 25 |
| Article IX - Indemnification | Article IX - Indemnification | 26 |
| 9.1 | Indemnification of Directors and Officers | 26 |
| 9.2 | Indemnification of Others | 26 |
| 9.3 | Prepayment of Expenses | 26 |
| 9.4 | Determination; Claim | 26 |
| 9.5 | Non-Exclusivity of Rights | 27 |
| 9.6 | Insurance | 27 |
| 9.7 | Other Indemnification | 27 |
| 9.8 | Continuation of Indemnification | 27 |
| 9.9 | Amendment or Repeal; Interpretation | 27 |
| Article X - Amendments | Article X - Amendments | 28 |
| Article XI - Definitions | Article XI - Definitions | 28 |

---

ii

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**Amended and Restated Bylaws of**

**Fervo Energy Company**

 

**Article I - Corporate Offices**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Registered Office</u>.

The address of the registered office of Fervo Energy Company (the "<u>Corporation</u>") in the State of Delaware, and the name of its registered agent at such address, shall be as set forth in the Corporation's certificate of incorporation, as the same may be amended and/or restated from time to time (the "<u>Certificate of Incorporation</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Offices</u>.

The Corporation may have additional offices at any place or places, within or outside the State of Delaware, as the Corporation's board of directors (the "<u>Board</u>") may from time to time establish or as the business of the Corporation may require.

**Article II - Meetings of Stockholders**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Place of Meetings</u>.

Meetings of stockholders shall be held at any place within or outside the State of Delaware, designated by the Board. The Board may, in its sole discretion, determine that a meeting of stockholders shall not be held at any place, but may instead be held solely by means of remote communication as authorized by Section 211(a)(2) of the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"). In the absence of any such designation or determination, stockholders' meetings shall be held at the Corporation's principal executive office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Meeting</u>.

The Board shall designate the date and time of the annual meeting of stockholders. At the annual meeting of stockholders, directors shall be elected and other proper business properly brought before the meeting in accordance with Section 2.4 of these bylaws may be transacted. The Board may postpone, reschedule or cancel any previously scheduled annual meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meeting</u>.

Special meetings of stockholders may be called only by such persons and only in such manner as set forth in the Certificate of Incorporation.

No business may be transacted at any special meeting of stockholders other than the business specified in the notice of such meeting. The Board may postpone, reschedule or cancel any previously scheduled special meeting of stockholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Business to be Brought before a Meeting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, business must be (i) specified in a notice of meeting given by or at the direction of the Board of Directors, (ii) if not specified in a notice of meeting, otherwise brought before the meeting by or at the direction of the Board of Directors or the Chair of the Board or (iii) otherwise properly brought before the meeting by a stockholder present in person who (A) (1) was a record owner of shares of capital stock of the Corporation both at the time of giving the notice provided for in this Section 2.4 and at the time of the meeting, (2) is entitled to vote at the meeting, and (3) has complied with this Section 2.4 in all applicable respects or (B) properly made such proposal in accordance with Rule 14a-8 under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (as so amended and inclusive of such rules and regulations, the "<u>Exchange Act</u>"). The foregoing clause (iii) shall be the exclusive means for a stockholder to propose business to be brought before an annual meeting of the stockholders. The only matters that may be brought before a special meeting are the matters specified in the notice of meeting given by or at the direction of the person calling the meeting pursuant to Section 3.7, and stockholders shall not be permitted to propose business to be brought before a special meeting of the stockholders. For purposes of this Section 2.4, "<u>present in person</u>" shall mean that the stockholder proposing that the business be brought before the annual meeting of the Corporation, or a qualified representative of such proposing stockholder, appear at such annual meeting, either in person or by means of remote communication. A "<u>qualified representative</u>" of such proposing stockholder shall be a duly authorized officer, manager or partner of such stockholder or any other person authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at or before the meeting of stockholders in writing or by electronic transmission. Stockholders seeking to nominate persons for election to the Board of Directors must comply with Section 2.5 and Section 2.6, and this Section 2.4 shall not be applicable to nominations except as expressly provided in Section 2.5 and Section 2.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;Without qualification, for business to be properly brought before an annual meeting by a stockholder, the stockholder must (i) provide Timely Notice (as defined below) thereof in writing and in proper form to the Secretary of the Corporation and (ii) provide any updates or supplements to such notice at the times and in the forms required by this Section 2.4. To be timely, a stockholder's notice must be delivered to, or mailed and received at, the principal executive offices of the Corporation not less than ninety (90) days nor more than one hundred twenty (120) days prior to the one-year anniversary of the preceding year's annual meeting which, in the case of the first annual meeting of stockholders following the closing of the Corporation's initial underwritten public offering of common stock, the date of the preceding year's annual meeting shall be deemed to be May 24, 2027; *provided, however*, that if the date of the annual meeting is more than thirty (30) days before or more than sixty (60) days after such anniversary date, notice by the stockholder to be timely must be so delivered, or mailed and received, not more than the hundred twentieth (120<sup>th</sup>) day prior to such annual meeting and not later than (i) the ninetieth (90<sup>th</sup>) day prior to such annual meeting or, (ii) if later, the tenth (10<sup>th</sup>) day following the day on which public disclosure of the date of such annual meeting was first made by the Corporation (such notice within such time periods, "<u>Timely Notice</u>"). In no event shall any adjournment or postponement of an annual meeting or the announcement thereof commence a new time period (or extend any time period) for the giving of Timely Notice as described above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;To be in proper form for purposes of this Section 2.4, a stockholder's notice to the Secretary shall set forth:

&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)&nbsp;&nbsp;&nbsp;&nbsp;As to each Proposing Person (as defined below), (A) the name and address of such Proposing Person (including, if applicable, the name and address that appear on the Corporation's books and records), (B) the class or series and number of shares of capital stock of the Corporation that are, directly or indirectly, owned of record or beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by such Proposing Person, except that such Proposing Person shall in all events be deemed to beneficially own any shares of any class or series of capital stock of the Corporation as to which such Proposing Person has a right to acquire beneficial ownership at any time in the future, (C) the date or dates such shares were acquired, (D) the investment intent of such acquisition and (E) any pledge by such Proposing Person with respect to any of such shares (the disclosures to be made pursuant to the foregoing clauses (A) through (E) are referred to as "<u>Stockholder Information</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;As to each Proposing Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the material terms and conditions of any "derivative security" (as such term is defined in Rule 16a-1(c) under the Exchange Act) that constitutes a "call equivalent position" (as such term is defined in Rule 16a-1(b) under the Exchange Act) or a "put equivalent position" (as such term is defined in Rule 16a-1(h) under the Exchange Act) or other derivative or synthetic arrangement in respect of any class or series of shares of capital stock of the Corporation ("<u>Synthetic Equity Position</u>") that is, directly or indirectly, held or maintained by, held for the benefit of, or involving such Proposing Person, including, without limitation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any option, warrant, convertible security, stock appreciation right, future or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of shares of capital stock of the Corporation or with a value derived in whole or in part from the value of any shares of any class or series of shares of capital stock of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any derivative or synthetic arrangement having the characteristics of a long position or a short position in any class or series of shares of capital stock of the Corporation, including, without limitation, a stock loan transaction, a stock borrow transaction, or a share repurchase 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;&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) any contract, derivative, swap or other transaction or series of transactions designed 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) produce economic benefits and risks that correspond substantially to the ownership of any class or series of shares of capital stock of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) mitigate any loss relating to, reduce the economic risk (of ownership or otherwise) of, or manage the risk of share price decrease in, any class or series of shares of capital stock of the Corporation, or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) increase or decrease the voting power in respect of any class or series of shares of capital stock of the Corporation held or maintained by, held for the benefit of, or involving such Proposing Person,

including, without limitation, due to the fact that the value of such contract, derivative, swap or other transaction or series of transactions is determined by reference to the price, value or volatility of any class or series of shares of capital stock of the Corporation, whether or not such instrument, contract or right shall be subject to settlement in the underlying class or series of shares of capital stock of the Corporation, through the delivery of cash or other property, or otherwise, and without regard to whether the holder thereof may have entered into transactions that hedge or mitigate the economic effect of such instrument, contract or right, or any other direct or indirect opportunity to profit or share in any profit derived from any increase or decrease in the price or value of any shares of any class or series of shares of capital stock of the Corporation;

*provided that*, for the purposes of the definition of "<u>Synthetic Equity Position</u>," the term "derivative security" shall also include any security or instrument that would not otherwise constitute a "derivative security" as a result of any feature that would make any conversion, exercise or similar right or privilege of such security or instrument becoming determinable only at some future date or upon the happening of a future occurrence, in which case the determination of the amount of securities into which such security or instrument would be convertible or exercisable shall be made assuming that such security or instrument is immediately convertible or exercisable at the time of such determination; *and, provided, further, that* any Proposing Person satisfying the requirements of Rule 13d-1(b)(1) under the Exchange Act (other than a Proposing Person that so satisfies Rule 13d-1(b)(1) under the Exchange Act solely by reason of Rule 13d-1(b)(1)(ii)(E)) shall not be deemed to hold or maintain the notional amount of any securities that underly any Synthetic Equity Position that is, directly or indirectly, held or maintained by, held for the benefit of, or involving such Proposing Person as a hedge with respect to a bona fide derivatives trade or position of such Proposing Person arising in the ordinary course of such Proposing Person's business as a derivatives dealer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any material pending or threatened legal proceeding in which such Proposing Person is a party or material participant involving the Corporation or any of its officers or directors, or any affiliate of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any other material relationship between such Proposing Person, on the one hand, and the Corporation or any affiliate of the Corporation, on the other hand,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any direct or indirect material interest in any material contract or agreement of such Proposing Person with the Corporation or any affiliate of the Corporation (including, in any such case, any employment agreement, collective bargaining agreement or consulting 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any proportionate interest in shares of capital stock of the Corporation or a Synthetic Equity Position held, directly or indirectly, by a general or limited partnership, limited liability company or similar entity in which any such Proposing Person (1) is a general partner or, directly or indirectly, beneficially owns an interest in a general partner

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of such general or limited partnership or (2) is the manager, managing member or, directly or indirectly, beneficially owns an interest in the manager or managing member of such limited liability company or similar entity,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) a representation that such Proposing Person intends or is part of a group that intends to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation's outstanding capital stock required to approve or adopt the proposal or otherwise solicit proxies or votes from stockholders in support of such proposal 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;(G) any other information relating to such Proposing Person that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies or consents by such Proposing Person in support of the business proposed to be brought before the meeting pursuant to Section 14(a) of the Exchange Act,

(the disclosures to be made pursuant to the foregoing clauses (A) through (G) are referred to as "<u>Disclosable Interests</u>"); *provided*, *however*, that Disclosable Interests shall not include any such disclosures with respect to the ordinary course business activities of any broker, dealer, commercial bank, trust company or other nominee who is a Proposing Person solely as a result of being the stockholder directed to prepare and submit the notice required by these Bylaws on behalf of a beneficial owner; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;As to each item of business that the stockholder proposes to bring before the annual meeting, (A) a brief description of the business desired to be brought before the annual meeting, the reasons for conducting such business at the annual meeting and any material interest in such business of each Proposing Person, (B) the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend the Bylaws, the language of the proposed amendment), (C) a reasonably detailed description of all agreements, arrangements and understandings (x) between or among any of the Proposing Persons or (y) between or among any Proposing Person and any other person or entity (including their names) in connection with the proposal of such business by such stockholder, and (D) any other information relating to such item of business that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies in support of the business proposed to be brought before the meeting pursuant to Section 14(a) of the Exchange Act; *provided*, *however*, that the disclosures required by this paragraph (iii) shall not include any disclosures with respect to any broker, dealer, commercial bank, trust company or other nominee who is a Proposing Person solely as a result of being the stockholder directed to prepare and submit the notice required by these Bylaws on behalf of a beneficial owner.

For purposes of this Section 2.4, the term "<u>Proposing Person</u>*"* shall mean (i) the stockholder providing the notice of business proposed to be brought before an annual meeting, (ii) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the business proposed to be brought before the annual meeting is made, and (iii) any participant (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule 14A) with such stockholder in such solicitation. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may request that any Proposing Person furnish such additional information as may be reasonably required by the Board of Directors. Such Proposing Person shall

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provide such additional information within ten (10) days after it has been requested by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;A Proposing Person shall update and supplement its notice to the Corporation of its intent to propose business at an annual meeting, if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 2.4 shall be true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than five (5) business days after the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of such record date), and not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment or postponement thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned or postponed) (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph or any other Section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted notice hereunder to amend or update any proposal or to submit any new proposal, including by changing or adding matters, business or resolutions proposed to be brought before a meeting of the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in these Bylaws to the contrary, no business shall be conducted at an annual meeting that is not properly brought before the meeting in accordance with this Section 2.4. The presiding officer of the meeting (or, in advance of any meeting of stockholders, the Board of Directors or an authorized committee thereof) shall, if the facts warrant, determine that the business was not properly brought before the meeting in accordance with this Section 2.4, and if he or she should so determine, he or she shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;This Section 2.4 is expressly intended to apply to any business proposed to be brought before an annual meeting of stockholders other than any proposal made in accordance with Rule 14a-8 under the Exchange Act and included in the Corporation's proxy statement. In addition to the requirements of this Section 2.4 with respect to any business proposed to be brought before an annual meeting, each Proposing Person shall comply with all applicable requirements of the Exchange Act with respect to any such business. Nothing in this Section 2.4 shall be deemed to affect the rights of stockholders to request inclusion of proposals in the Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;For purposes of these Bylaws, "<u>public disclosure</u>" shall mean disclosure in a press release reported by a national news service or in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Sections 13, 14 or 15(d) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Nominations for Election to the Board of Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Nominations of any person for election to the Board of Directors at an annual meeting or at a special meeting (but only if the election of directors is a matter specified in the notice of meeting given by or at the direction of the person calling such special meeting) may be made at such meeting only (i) by or at the direction of the Board of Directors, including by any committee or persons authorized to

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do so by the Board of Directors or these bylaws, or (ii) by a stockholder present in person who (A) was a record owner of shares of capital stock of the Corporation both at the time of giving the notice provided for in this Section 2.5 and at the time of the meeting, (B) is entitled to vote at the meeting, and (C) has complied with this Section 2.5 and Section 2.6 as to such notice and nomination. For purposes of this Section 2.5, "<u>present in person</u>" shall mean that the stockholder nominating any person for election to the Board of Directors at the meeting of the Corporation, or a qualified representative of such stockholder, appear at such meeting, either in person or by means of remote communication. A "<u>qualified</u> <u>representative</u>" of such proposing stockholder shall be a duly authorized officer, manager or partner of such stockholder or any other person authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at or before the meeting of stockholders in writing or by electronic transmission. The foregoing clause (ii) shall be the exclusive means for a stockholder to make any nomination of a person or persons for election to the Board of Directors at an annual meeting or special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;(i) Without qualification, for a stockholder to make any nomination of a person or persons for election to the Board of Directors at an annual meeting, the stockholder must (1) provide Timely Notice (as defined in Section 2.4) thereof in writing and in proper form to the Secretary of the Corporation, (2) provide the information, agreements and questionnaires with respect to each Nominating Person (as defined below) and its candidate for nomination as required to be set forth by this Section 2.5 and Section 2.6 and (3) provide any updates or supplements to such notice at the times and in the forms required by this Section 2.5 and Section 2.6 *.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without qualification, if the election of directors is a matter specified in the notice of meeting given by or at the direction of the person calling a special meeting, then for a stockholder to make any nomination of a person or persons for election to the Board of Directors at a special meeting, the stockholder must (A) provide timely notice thereof in writing and in proper form to the Secretary of the Corporation at the principal executive offices of the Corporation, (B) provide the information with respect to each Nominating Person and its candidate for nomination as required by this Section 2.5 and Section 2.6 and (C) provide any updates or supplements to such notice at the times and in the forms required by this Section 2.5. To be timely, a stockholder's notice for nominations to be made at a special meeting must be delivered to, or mailed and received at, the principal executive offices of the Corporation not earlier than the one hundred twentieth (120<sup>th</sup>) day prior to such special meeting and not later than the ninetieth (90<sup>th</sup>) day prior to such special meeting or, if later, the tenth (10<sup>th</sup>) day following the day on which public disclosure (as defined in Section 2.4) of the date of such special meeting was first made (such notice within such time periods, "<u>Special Meeting Timely Notice</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In no event shall any adjournment or postponement of an annual meeting or special meeting or the announcement thereof commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In no event may a Nominating Person deliver a notice of nomination, as applicable, with respect to a greater number of director candidates than are subject to election by stockholders at the applicable meeting. If the Corporation shall, subsequent to such notice, increase the number of directors subject to election at the meeting, such notice as to any additional nominees shall be due on the later of (i) the conclusion of the time period for Timely Notice or Special Meeting Timely Notice, as applicable, or (ii) the tenth day following the date of public disclosure (as defined in Section 2.4) of such increase.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;To be in proper form for purposes of this Section 2.5, a stockholder's notice to the Secretary shall set forth:

&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)&nbsp;&nbsp;&nbsp;&nbsp;As to each Nominating Person, the Stockholder Information (as defined in Section 2.4(c)(i), except that for purposes of this Section 2.5 the term "<u>Nominating Person</u>" shall be substituted for the term "Proposing Person" in all places it appears in Section 2.4(c)(i));

&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)&nbsp;&nbsp;&nbsp;&nbsp;As to each Nominating Person, any Disclosable Interests (as defined in Section 2.4(c)(ii), except that for purposes of this Section 2.5 the term "<u>Nominating Person</u>" shall be substituted for the term "<u>Proposing Person</u>" in all places it appears in Section 2.4(c)(ii) and the disclosure with respect to the business to be brought before the meeting in Section 2.4(c)(ii) shall be made with respect to the nomination proposed to be made at the meeting); and provided that, in lieu of including the information set forth in Section 2.4(c)(ii)(G), the Nominating Person's notice for purposes of this Section 2.5 shall include a representation as to whether the Nominating Person intends or is part of a group that intends to deliver a proxy statement and solicit the holders of shares representing at least 67% of the voting power of shares entitled to vote on the election of directors in support of director nominees other than the Corporation's nominees in accordance with Rule 14a-19 promulgated under the Exchange Act; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;As to each candidate whom a Nominating Person proposes to nominate for election as a director, (A) all information relating to such candidate for nomination that is required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors in a contested election pursuant to Section 14(a) under the Exchange Act (including such candidate's written consent to being named in a proxy statement and accompanying proxy card relating to the Corporation's next meeting of stockholders at which directors are to be elected and to serving as a director for a full term if elected), and (B) a description of any direct or indirect material interest in any material contract or agreement between or among any Nominating Person, on the one hand, and each candidate for nomination or his or her respective associates (as defined in Rule 14a-1(a) promulgated under the Exchange Act) or any other participants (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule 14A) in such solicitation, on the other hand, including, without limitation, all information that would be required to be disclosed pursuant to Item 404 under Regulation S-K if such Nominating Person were the "registrant" for purposes of such rule and the candidate for nomination were a director or executive officer of such registrant and (C) a completed and signed questionnaire, representation and agreement as provided in Section 2.6(a).

For purposes of this Section 2.5, the term "<u>Nominating Person</u>" shall mean (i) the stockholder providing the notice of the nomination proposed to be made at the meeting, (ii) the beneficial owner or beneficial owners, if different, on whose behalf the notice of the nomination proposed to be made at the meeting is made, and (iii) any participant (as defined in paragraphs (a)(ii)-(vi) of Instruction 3 to Item 4 of Schedule 14A) with such stockholder in such solicitation.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may request that any Nominating Person furnish such additional information as may be reasonably required by the Board of Directors. Such Nominating Person shall provide such additional information within ten (10) days after it has been requested by the Board 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;A stockholder providing notice of any nomination proposed to be made at a meeting shall further update and supplement such notice or the materials delivered pursuant to this

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Section 2.5, as applicable, if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 2.5 shall be true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than five (5) business days after the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of such record date), and not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment or postponement thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned or postponed) (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph or any other Section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder who has previously submitted notice hereunder to amend or update any nomination, including by changing or adding nominees, or to submit any new nomination, or submit any new proposal, matters, business or resolutions proposed to be brought before a meeting of the stockholders.

&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)&nbsp;&nbsp;&nbsp;&nbsp;In addition to the requirements of this Section 2.5 with respect to any nomination proposed to be made at a meeting, each Nominating Person shall comply with all applicable requirements of the Exchange Act with respect to any such nominations. Notwithstanding the foregoing provisions of this Section 2.5, unless otherwise required by law, (i) no Nominating Person shall solicit proxies in support of director nominees other than the Corporation's nominees unless such Nominating Person has, or is part of a group that has, complied with Rule 14a-19 promulgated under the Exchange Act in connection with the solicitation of such proxies, including the provision to the Corporation of notices required thereunder, in accordance with the time frames required in this Section 2.5 or by Rule 14a-19 promulgated under the Exchange Act, as applicable, and (ii) if (1) any Nominating Person provides notice in accordance with Rule 14a-19(b) promulgated under the Exchange Act and (2) (x) such notice in accordance with Rule 14a-19(b) is not provided within the time period for Timely Notice or Special Meeting Timely Notice, as applicable, (y) such Nominating Person subsequently fails to comply with the requirements of Rule 14a-19(a)(2) or Rule 14a-19(a)(3) promulgated under the Exchange Act or (z) such Nominating Person fails to timely provide reasonable evidence sufficient to satisfy the Corporation that such Nominating Person has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act in accordance with the following sentence, then the nomination of such Nominating Person's proposed nominees shall be disregarded, notwithstanding that each such nominee is included as a nominee in the Corporation's proxy statement, notice of meeting or other proxy materials for any meeting of stockholders (or any supplement thereto) and notwithstanding that proxies or votes in respect of the election of such proposed nominees may have been received by the Corporation (which proxies and votes shall be disregarded). If any Nominating Person provides notice in accordance with Rule 14a-19(b) promulgated under the Exchange Act, such Nominating Person shall deliver to the Corporation, no later than seven (7) business days prior to the applicable meeting, reasonable evidence that it has met the requirements of Rule 14a-19(a)(3) promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Requirements for Valid Nomination of Candidates to Serve as Director and, if</u> <u>Elected, to be Seated as Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To be eligible to be a candidate for election as a director of the Corporation at an annual or special meeting, a candidate must be nominated in the manner prescribed in Section 2.5 and the candidate for nomination, whether nominated by the Board of Directors or by a stockholder of record,

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must have previously delivered**<u>,</u>** to the Secretary at the principal executive offices of the Corporation, (i) a completed written questionnaire (in the form provided by the Corporation within ten (10) days upon written request of any stockholder of record therefor) with respect to the background, qualifications, stock ownership and independence of such proposed nominee and (ii) a written representation and agreement (in the form provided by the Corporation within ten (10) days upon written request of any stockholder of record therefor) that such candidate for nomination (<u>A</u>) is not and, if elected as a director during his or her term of office, will not become a party to (1) any agreement, arrangement or understanding with, and has not given and will not give any commitment or assurance to, any person or entity as to how such proposed nominee, if elected as a director of the Corporation, will act or vote on any issue or question (a "<u>Voting</u> <u>Commitment</u>") or (2) any Voting Commitment that could limit or interfere with such proposed nominee's ability to comply, if elected as a director of the Corporation, with such proposed nominee's fiduciary duties under applicable law, (B) is not, and will not become a party to, any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation or reimbursement for service as a director that has not been disclosed to the Corporation, (C) if elected as a director of the Corporation, will comply with all applicable corporate governance, conflict of interest, confidentiality, stock ownership and trading and other policies and guidelines of the Corporation applicable to directors and in effect during such person's term in office as a director (and, if requested by any candidate for nomination, the Secretary of the Corporation shall provide to such candidate for nomination all such policies and guidelines then in effect), and (D) if elected as a director of the Corporation, intends to serve the entire term until the next meeting at which such candidate would face re-election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**&nbsp;&nbsp;&nbsp;&nbsp;**The Board of Directors may also require any proposed candidate for nomination as a director to furnish such other information related to such candidate's eligibility or qualification to serve as a director as may reasonably be requested by the Board of Directors in writing prior to the meeting of stockholders at which such candidate's nomination is to be acted upon. Without limiting the generality of the foregoing, the Board of Directors may request such other information in order for the Board of Directors to determine the eligibility of such candidate for nomination to be an independent director of the Corporation or to comply with the director qualification standards and additional selection criteria in accordance with the Corporation's Corporate Governance Guidelines. Such other information shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than five (5) business days after the request by the Board of Directors has been delivered to, or mailed and received by, the Nominating Person**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;A candidate for nomination as a director shall further update and supplement the materials delivered pursuant to this Section 2.6, if necessary, so that the information provided or required to be provided pursuant to this Section 2.6 shall be true and correct as of the record date for stockholders entitled to vote at the meeting and as of the date that is ten (10) business days prior to the meeting or any adjournment or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary at the principal executive offices of the Corporation not later than five (5) business days after the record date for stockholders entitled to vote at the meeting (in the case of the update and supplement required to be made as of such record date), and not later than eight (8) business days prior to the date for the meeting or, if practicable, any adjournment or postponement thereof (and, if not practicable, on the first practicable date prior to the date to which the meeting has been adjourned or postponed) (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment or postponement thereof). For the avoidance of doubt, the obligation to update and supplement as set forth in this paragraph or any other Section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any notice provided by a stockholder, extend any applicable deadlines hereunder or enable or be deemed to permit a stockholder

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who has previously submitted notice hereunder to amend or update any nomination or to submit any new proposal, including by changing or adding nominees, matters, business or resolutions proposed to be brought before a meeting of the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;No candidate nominated pursuant to Section 2.5(a)(ii) shall be eligible for nomination as a director of the Corporation unless such candidate for nomination and the Nominating Person seeking to place such candidate's name in nomination has complied with Section 2.5 and this Section 2.6, as applicable. The presiding officer at the meeting shall, if the facts warrant, determine that a nomination was not properly made in accordance with Section 2.5 and this Section 2.6, and if he or she should so determine, he or she shall so declare such determination to the meeting, the defective nomination shall be disregarded and any ballots cast for the candidate in question (but in the case of any form of ballot listing other qualified nominees, only the ballots cast for the nominee in question) shall be void and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in these Bylaws to the contrary, no candidate for nomination shall be eligible to be seated as a director of the Corporation unless nominated in accordance with Section 2.5 and this Section 2.6 and elected as a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Stockholders' Meetings</u>.

Unless otherwise provided by law, the Certificate of Incorporation or these bylaws, the notice of any meeting of stockholders shall be sent or otherwise given in accordance with Section 8.1 of these bylaws not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockholder entitled to vote at such meeting. The notice shall specify the place, if any, date and time of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, and, in the case of a special meeting of stockholders, the purpose or purposes for which such meeting is called.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum</u>.

Unless otherwise provided by law, the Certificate of Incorporation or these bylaws, the holders of a majority in voting power of the stock issued and outstanding and entitled to vote, present in person, or by remote communication, if applicable, or represented by proxy, shall constitute a quorum for the transaction of business at all meetings of stockholders. A quorum, once established at a meeting, shall not be broken by the withdrawal of enough votes to leave less than a quorum. If, however, a quorum is not present or represented at any meeting of stockholders, then either (i) the person presiding over the meeting or (ii) a majority in voting power of the stockholders entitled to vote at the meeting, present in person, or by remote communication, if applicable, or represented by proxy, shall have power to recess the meeting or adjourn the meeting from time to time in the manner provided in Section 2.9 of these bylaws until a quorum is present or represented. At any recessed or adjourned meeting at which a quorum is present or represented, any business may be transacted that might have been transacted at the meeting as originally noticed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjourned Meeting; Notice</u>.

When a meeting is adjourned to another time or place, unless these bylaws otherwise require, notice need not be given of the adjourned meeting if the time, place, if any, thereof, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting are announced at the meeting at which the adjournment is taken or are provided in any other manner permitted by the DGCL. At any adjourned meeting, the

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Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than thirty (30) days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. If after the adjournment a new record date for determination of stockholders entitled to vote is fixed for the adjourned meeting, the Board shall fix as the record date for determining stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote at the adjourned meeting, and shall give notice of the adjourned meeting to each stockholder of record entitled to vote at such meeting as of the record date so fixed for notice of such adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of Business</u>.

The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the person presiding over the meeting. The Board may adopt by resolution such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board, the person presiding over any meeting of stockholders shall have the right and authority to convene and (for any or no reason) to recess and/or adjourn the meeting, to prescribe such rules, regulations and procedures (which need not be in writing) and to do all such acts as, in the judgment of such presiding person, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board or prescribed by the person presiding over the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present (including, without limitation, rules and procedures for removal of disruptive persons from the meeting); (iii) limitations on attendance at or participation in the meeting to stockholders entitled to vote at the meeting, their duly authorized and constituted proxies or such other persons as the person presiding over the meeting shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. The presiding person at any meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting (including, without limitation, determinations with respect to the administration and/or interpretation of any of the rules, regulations or procedures of the meeting, whether adopted by the Board or prescribed by the person presiding over the meeting), shall, if the facts warrant, determine and declare to the meeting that a matter of business was not properly brought before the meeting and if such presiding person should so determine, such presiding person shall so declare to the meeting and any such matter or business not properly brought before the meeting shall not be transacted or considered. Unless and to the extent determined by the Board or the person presiding over the meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting</u>.

Except as otherwise provided by the Certificate of Incorporation, at all duly called or convened meetings of stockholders at which a quorum is present, for the election of directors, a plurality of the votes cast shall be sufficient to elect a director. Except as otherwise provided by the Certificate of Incorporation, these bylaws, the rules or regulations of any stock exchange applicable to the Corporation, or applicable law or pursuant to any regulation applicable to the Corporation or its securities, each other matter presented to the stockholders at a duly called or convened meeting at which a quorum is present shall be decided by the affirmative vote of the holders of a majority in voting power of the votes cast (excluding abstentions and broker non-votes) on such matter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Record Date for Stockholder Meetings and Other Purposes</u>.

In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board, and which record date shall, unless otherwise required by law, not be more than sixty (60) days nor less than ten (10) days before the date of such meeting. If the Board so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination. If no record date is fixed by the Board, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be the close of business on the next day preceding the day on which notice is first given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board may fix a new record date for determination of stockholders entitled to vote at the adjourned meeting; and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance herewith at the adjourned meeting.

In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment or any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of capital stock, or for the purposes of any other lawful action, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than sixty (60) days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Proxies</u>.

Each stockholder entitled to vote at a meeting of stockholders may authorize another person or persons to act for such stockholder by proxy authorized by an instrument in writing or by a transmission permitted by law, including Rule 14a-19 promulgated under the Exchange Act, filed in accordance with the procedure established for the meeting, but no such proxy shall be voted or acted upon after three (3) years from its date, unless the proxy provides for a longer period. The revocability of a proxy that states on its face that it is irrevocable shall be governed by the provisions of Section 212 of the DGCL. A proxy may be in the form of an electronic transmission which sets forth or is submitted with information from which it can be determined that the transmission was authorized by the stockholder.

Any stockholder directly or indirectly soliciting proxies from other stockholders must use a proxy card color other than white, which shall be reserved for the exclusive use by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14&nbsp;&nbsp;&nbsp;&nbsp;<u>List of Stockholders Entitled to Vote</u>.

The Corporation shall prepare, no later than the tenth day before each meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting (provided, however, that if the record date for determining the stockholders entitled to vote is less than ten (10) days before the date of the meeting, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date), arranged

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in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. The Corporation shall not be required to include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting for a period of ten (10) days ending on the day before the meeting date: (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours, at the Corporation's principal executive office. In the event that the Corporation determines to make the list available on an electronic network, the Corporation may take reasonable steps to ensure that such information is available only to stockholders of the Corporation. Such list shall presumptively determine the identity of the stockholders entitled to vote at the meeting and the number of shares held by each of them. Except as otherwise provided by law, the stock ledger shall be the only evidence as to who are the stockholders entitled to examine the list of stockholders required by this Section 2.14 or to vote in person or by proxy at any meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Inspectors of Election</u>.

Before any meeting of stockholders, the Corporation shall appoint an inspector or inspectors of election to act at the meeting or its adjournment and make a written report thereof. The Corporation may designate one or more persons as alternate inspectors to replace any inspector who fails to act. If any person appointed as inspector or any alternate fails to appear or fails or refuses to act, then the person presiding over the meeting shall appoint a person to fill that vacancy.

Such inspectors shall:

&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)&nbsp;&nbsp;&nbsp;&nbsp;determine the number of shares outstanding and the voting power of each, the number of shares represented at the meeting and the validity of any proxies and ballots;

&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)&nbsp;&nbsp;&nbsp;&nbsp;count all votes or ballots;

&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)&nbsp;&nbsp;&nbsp;&nbsp;count and tabulate all votes;

&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)&nbsp;&nbsp;&nbsp;&nbsp;determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspector(s); 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;(v)&nbsp;&nbsp;&nbsp;&nbsp;certify its or their determination of the number of shares represented at the meeting and its or their count of all votes and ballots.

Each inspector, before entering upon the discharge of the duties of inspector, shall take and sign an oath faithfully to execute the duties of inspection with strict impartiality and according to the best of such inspector's ability. Any report or certificate made by the inspectors of election is prima facie evidence of the facts stated therein. The inspectors of election may appoint such persons to assist them in performing their duties as they determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Delivery to the Corporation.</u>

Whenever this Article II requires one or more persons (including a record or beneficial owner of stock) to deliver a document or information to the Corporation or any officer, employee or agent thereof (including any notice, request, questionnaire, revocation, representation or other document or agreement), such document or information shall be in writing exclusively (and not in an electronic transmission) and shall be delivered exclusively by hand (including, without limitation, overnight courier service) or by

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certified or registered mail, return receipt requested, and the Corporation shall not be required to accept delivery of any document not in such written form or so delivered. For the avoidance of doubt, the Corporation expressly opts out of Section 116 of the DGCL with respect to the delivery of information and documents to the Corporation required by this Article II.

**Article III - Directors**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Powers</u>.

Except as otherwise provided by the Certificate of Incorporation or the DGCL, the business and affairs of the Corporation shall be managed by or under the direction of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Directors</u>.

Subject to the Certificate of Incorporation, the total number of directors constituting the Board shall be determined from time to time by resolution of the Board. No reduction of the authorized number of directors shall have the effect of removing any director before that director's term of office expires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Election, Qualification and Term of Office of Directors</u>.

Except as provided in Section 3.4 of these bylaws, and subject to the Certificate of Incorporation, each director, including a director elected to fill a vacancy or newly created directorship, shall hold office until the expiration of the term of the class, if any, for which elected and until such director's successor is elected and qualified or until such director's earlier death, resignation, disqualification or removal. Directors need not be stockholders. The Certificate of Incorporation or these bylaws may prescribe qualifications for directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Resignation and Vacancies</u>.

Any director may resign at any time upon notice given in writing or by electronic transmission to the Corporation. The resignation shall take effect at the time specified therein or upon the happening of an event specified therein, and if no time or event is specified, at the time of its receipt. When one or more directors so resigns and the resignation is effective at a future date or upon the happening of an event to occur on a future date, a majority of the directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective, and each director so chosen shall hold office as provided in Section 3.3.

Unless otherwise provided in the Certificate of Incorporation or these bylaws, vacancies resulting from the death, resignation, disqualification or removal of any director, and newly created directorships resulting from any increase in the authorized number of directors shall be filled only by a majority of the directors then in office, although less than a quorum, or by a sole remaining director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Place of Meetings; Meetings by Telephone</u>.

The Board may hold meetings, both regular and special, either within or outside the State of Delaware.

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Unless otherwise restricted by the Certificate of Incorporation or these bylaws, members of the Board, or any committee designated by the Board, may participate in a meeting of the Board, or any committee, by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting pursuant to this bylaw shall constitute presence in person at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Regular Meetings</u>.

Regular meetings of the Board may be held within or outside the State of Delaware and at such time and at such place as which has been designated by the Board and publicized among all directors, either orally or in writing, by telephone, including a voice-messaging system or other system designed to record and communicate messages, facsimile, telegraph or telex, or by electronic mail or other means of electronic transmission. No further notice shall be required for regular meetings of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings; Notice</u>.

Special meetings of the Board for any purpose or purposes may be called at any time by the Chief Executive Officer or a majority of the total number of directors constituting the Board.

Notice of the time and place of special meetings shall be:

&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)delivered personally by hand, by courier or by telephone;

&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)sent by United States first-class mail, postage prepaid;

&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)sent by facsimile or electronic mail; 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)sent by other means of electronic transmission,

directed to each director at that director's address, telephone number, facsimile number or electronic mail address, or other address for electronic transmission, as the case may be, as shown on the Corporation's records.

If the notice is (i) delivered personally by hand, by courier or by telephone, (ii) sent by facsimile or electronic mail, or (iii) sent by other means of electronic transmission, it shall be delivered or sent at least twenty-four (24) hours before the time of the holding of the meeting. If the notice is sent by U.S. mail, it shall be deposited in the U.S. mail at least four (4) days before the time of the holding of the meeting. The notice need not specify the place of the meeting (if the meeting is to be held at the Corporation's principal executive office) nor the purpose of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Quorum</u>.

At all meetings of the Board, unless otherwise provided by the Certificate of Incorporation, a majority of the total number of directors shall constitute a quorum for the transaction of business. The vote of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board, except as may be otherwise specifically provided by statute, the Certificate of Incorporation or these bylaws. If a quorum is not present at any meeting of the Board, then the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Board Action without a Meeting</u>.

Unless otherwise restricted by the Certificate of Incorporation or these bylaws, any action required or permitted to be taken at any meeting of the Board, or of any committee thereof, may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing or by electronic transmission. After an action is taken, the consent or consents relating thereto shall be filed with the minutes of the proceedings of the Board, or the committee thereof, in the same paper or electronic form as the minutes are maintained. Such action by written consent or consent by electronic transmission shall have the same force and effect as a unanimous vote of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees and Compensation of Directors</u>.

Unless otherwise restricted by the Certificate of Incorporation or these bylaws, the Board shall have the authority to fix the compensation, including fees and reimbursement of expenses, of directors for services to the Corporation in any capacity.

**Article IV - Committees**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Committees of Directors</u>.

The Board may designate one (1) or more committees, each committee to consist, of one (1) or more of the directors of the Corporation. The Board may designate one (1) or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board or in these bylaws, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers that may require it; but no such committee shall have the power or authority to (i) approve or adopt, or recommend to the stockholders, any action or matter expressly required by the DGCL to be submitted to stockholders for approval, or (ii) adopt, amend or repeal any bylaw of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Committee Minutes</u>.

Each committee shall keep regular minutes of its meetings and report the same to the Board when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Meetings and Actions of Committees</u>.

Meetings and actions of committees shall be governed by, and held and taken in accordance with, the provisions 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)Section 3.5 (place of meetings; meetings by telephone);

&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)Section 3.6 (regular meetings);

&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 3.7 (special meetings; notice);

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&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)Section 3.9 (board action without a meeting); 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;(v)Section 7.13 (waiver of notice),

with such changes in the context of those bylaws as are necessary to substitute the committee and its members for the Board and its members. *However*:

&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)&nbsp;&nbsp;&nbsp;&nbsp;the time of regular meetings of committees may be determined either by resolution of the Board or by resolution of the committee;

&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)&nbsp;&nbsp;&nbsp;&nbsp;special meetings of committees may also be called by resolution of the Board or the chair of the applicable committee; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the Board may adopt rules for the governance of any committee to override the provisions that would otherwise apply to the committee pursuant to this Section 4.3, provided that such rules do not violate the provisions of the Certificate of Incorporation or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Subcommittees.</u>

Unless otherwise provided in the Certificate of Incorporation, these bylaws or the resolutions of the Board designating the committee, a committee may create one (1) or more subcommittees, each subcommittee to consist of one (1) or more members of the committee, and delegate to a subcommittee any or all of the powers and authority of the committee.

**Article V - Officers**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Officers</u>.

The officers of the Corporation shall include a Chief Executive Officer, a President, a Secretary, and a Treasurer. The Corporation may also have, at the discretion of the Board, one (1) or more Vice Presidents, one (1) or more Assistant Treasurers, one (1) or more Assistant Secretaries, and any such other officers as may be appointed in accordance with the provisions of these bylaws. Any number of offices may be held by the same person. No officer need be a stockholder or director of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Appointment of Officers</u>.

The Board shall appoint the officers of the Corporation, except such officers as may be appointed in accordance with the provisions of Section 5.3 of these bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Subordinate Officers</u>.

The Board may appoint, or empower the Chief Executive Officer or, in the absence of a Chief Executive Officer, the President, to appoint, such other officers and agents as the business of the Corporation may require. Each of such officers and agents shall hold office for such period, have such authority, and perform such duties as are provided in these bylaws or as the Board may from time to time determine.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal and Resignation of Officers</u>.

Subject to the rights, if any, of an officer under any contract of employment, any officer may be removed, either with or without cause, by the Board or, except in the case of an officer chosen by the Board, by any officer upon whom such power of removal may be conferred by the Board.

Any officer may resign at any time by giving written notice to the Corporation. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice. Unless otherwise specified in the notice of resignation, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Corporation under any contract to which the officer is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Vacancies in Offices</u>.

Any vacancy occurring in any office of the Corporation shall be filled by the Board or as provided in Section 5.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Representation of Shares of Other Corporations</u>.

The Chair of the Board, the Chief Executive Officer, or the President of this Corporation, or any other person authorized by the Board, the Chief Executive Officer or the President, is authorized to vote, represent and exercise on behalf of this Corporation all rights incident to any and all shares or voting securities of any other corporation or other person standing in the name of this Corporation. The authority granted herein may be exercised either by such person directly or by any other person authorized to do so by proxy or power of attorney duly executed by such person having the authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Authority and Duties of Officers</u>.

All officers of the Corporation shall respectively have such authority and perform such duties in the management of the business of the Corporation as may be provided herein or designated from time to time by the Board and, to the extent not so provided, as generally pertain to their respective offices, subject to the control of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation.</u>

The compensation of the officers of the Corporation for their services as such shall be fixed from time to time by or at the direction of the Board. An officer of the Corporation shall not be prevented from receiving compensation by reason of the fact that he or she is also a director of the Corporation.

**Article VI - Records**

A stock ledger consisting of one or more records in which the names of all of the Corporation's stockholders of record, the address and number of shares registered in the name of each such stockholder, and all issuances and transfers of stock of the corporation are recorded in accordance with Section 224 of the DGCL shall be administered by or on behalf of the Corporation. Any records administered by or on behalf of the Corporation in the regular course of its business, including its stock ledger, books of account, and minute books, may be kept on, or by means of, or be in the form of, any information storage device, or method, or one or more electronic networks or databases (including one or more distributed electronic networks or databases), provided that the records so kept can be converted into clearly legible

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paper form within a reasonable time and, with respect to the stock ledger, that the records so kept (i) can be used to prepare the list of stockholders specified in Sections 219 and 220 of the DGCL, (ii) record the information specified in Sections 156, 159, 217(a) and 218 of the DGCL, and (iii) record transfers of stock as governed by Article 8 of the Uniform Commercial Code as adopted in the State of Delaware.

**Article VII - General Matters**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution of Corporate Contracts and Instruments</u>.

The Board, except as otherwise provided in these bylaws, may authorize any officer or officers, or agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the Corporation; such authority may be general or confined to specific instances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Certificates</u>.

The shares of the Corporation shall be represented by certificates, provided that the Board by resolution may provide that some or all of the shares of any class or series of stock of the Corporation shall be uncertificated. Certificates for the shares of stock, if any, shall be in such form as is consistent with the Certificate of Incorporation and applicable law. Every holder of stock represented by a certificate shall be entitled to have a certificate signed by, or in the name of the Corporation by, any two officers authorized to sign stock certificates representing the number of shares registered in certificate form. The Chief Executive Officer, the President, the Secretary, the Treasurer, any Vice President, any Assistant Treasurer, or any Assistant Secretary of the Corporation shall be specifically authorized to sign stock certificates. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he or she were such officer, transfer agent or registrar at the date of issue.

The Corporation may issue the whole or any part of its shares as partly paid and subject to call for the remainder of the consideration to be paid therefor. Upon the face or back of each stock certificate issued to represent any such partly paid shares, or upon the books and records of the Corporation in the case of uncertificated partly paid shares, the total amount of the consideration to be paid therefor and the amount paid thereon shall be stated. Upon the declaration of any dividend on fully paid shares, the Corporation shall declare a dividend upon partly paid shares of the same class, but only upon the basis of the percentage of the consideration actually paid thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Designation of Certificates.</u>

If the Corporation is authorized to issue more than one class of stock or more than one series of any class, then the powers, the designations, the preferences and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or on the back of the certificate that the Corporation shall issue to represent such class or series of stock (or, in the case of uncertificated shares, set forth in a notice provided pursuant to Section 151 of the DGCL); provided, however, that except as otherwise provided in Section 202 of the DGCL, in lieu of the foregoing requirements, there may be set forth on the face or back of the certificate that the Corporation shall issue to represent such class or series of stock (or, in the case of any uncertificated shares, included in the aforementioned notice) a statement that the Corporation will furnish without charge to each stockholder

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who so requests the powers, the designations, the preferences and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Lost Certificates</u>.

Except as provided in this Section 7.4, no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered to the Corporation and cancelled at the same time. The Corporation may issue a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen or destroyed certificate, or such owner's legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate or uncertificated shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Shares Without Certificates</u>

The Corporation may adopt a system of issuance, recordation and transfer of its shares of stock by electronic or other means not involving the issuance of certificates, provided the use of such system by the Corporation is permitted in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction; Definitions</u>.

Unless the context requires otherwise, the general provisions, rules of construction and definitions in the DGCL shall govern the construction of these bylaws. Without limiting the generality of this provision, the singular number includes the plural and the plural number includes the singular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends</u>.

The Board, subject to any restrictions contained in either (i) the DGCL or (ii) the Certificate of Incorporation, may declare and pay dividends upon the shares of its capital stock. Dividends may be paid in cash, in property or in shares of the Corporation's capital stock.

The Board may set apart out of any of the funds of the Corporation available for dividends a reserve or reserves for any proper purpose and may abolish any such reserve. Such purposes shall include but not be limited to equalizing dividends, repairing or maintaining any property of the Corporation, and meeting contingencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Fiscal Year</u>.

The fiscal year of the Corporation shall be fixed by resolution of the Board and may be changed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Seal</u>.

The Corporation may adopt a corporate seal, which shall be adopted and which may be altered by the Board. The Corporation may use the corporate seal by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer of Stock</u>.

Shares of the Corporation shall be transferable in the manner prescribed by law and in these bylaws. Shares of stock of the Corporation shall be transferred on the books of the Corporation only by the holder of record thereof or by such holder's attorney duly authorized in writing, upon surrender to the Corporation of the certificate or certificates representing such shares endorsed by the appropriate person or persons (or by delivery of duly executed instructions with respect to uncertificated shares), with such evidence of the authenticity of such endorsement or execution, transfer, authorization and other matters as the Corporation may reasonably require, and accompanied by all necessary stock transfer stamps. No transfer of stock shall be valid as against the Corporation for any purpose until it shall have been entered in the stock records of the Corporation by an entry showing the names of the persons from and to whom it was transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Transfer Agreements</u>.

The Corporation shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes or series of stock of the Corporation to restrict the transfer of shares of stock of the Corporation of any one or more classes owned by such stockholders in any manner not prohibited by the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Registered Stockholders</u>.

The Corporation:

&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)&nbsp;&nbsp;&nbsp;&nbsp; shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends and to vote as such owner; 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)&nbsp;&nbsp;&nbsp;&nbsp;shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of another person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Notice</u>.

Whenever notice is required to be given under any provision of the DGCL, the Certificate of Incorporation or these bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time of the event for which notice is to be given, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need be specified in any written waiver of notice or any waiver by electronic transmission unless so required by the Certificate of Incorporation or these bylaws.

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**Article VIII - Notice**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Delivery of Notice; Notice by Electronic Transmission</u>.

Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provisions of the DGCL, the Certificate of Incorporation, or these bylaws may be given in writing directed to the stockholder's mailing address (or by electronic transmission directed to the stockholder's electronic mail address, as applicable) as it appears on the records of the Corporation and shall be given (1) if mailed, when the notice is deposited in the U.S. mail, postage prepaid, (2) if delivered by courier service, the earlier of when the notice is received or left at such stockholder's address or (3) if given by electronic mail, when directed to such stockholder's electronic mail address unless the stockholder has notified the Corporation in writing or by electronic transmission of an objection to receiving notice by electronic mail. A notice by electronic mail must include a prominent legend that the communication is an important notice regarding the Corporation.

Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Corporation under any provision of the DGCL, the Certificate of Incorporation or these bylaws shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given. Any such consent shall be revocable by the stockholder by written notice or electronic transmission to the Corporation. Notwithstanding the provisions of this paragraph, the Corporation may give a notice by electronic mail in accordance with the first paragraph of this section without obtaining the consent required by this paragraph.

Any notice given pursuant to the preceding paragraph shall be deemed given:

&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 by facsimile telecommunication, when directed to a number at which the stockholder has consented to receive notice;

&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 by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (A) such posting and (B) the giving of such separate notice; 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;(iii)if by any other form of electronic transmission, when directed to the stockholder.

Notwithstanding the foregoing, a notice may not be given by an electronic transmission from and after the time that (1) the Corporation is unable to deliver by such electronic transmission two (2) consecutive notices given by the Corporation and (2) such inability becomes known to the Secretary or an Assistant Secretary of the Corporation or to the transfer agent, or other person responsible for the giving of notice, provided, however, the inadvertent failure to discover such inability shall not invalidate any meeting or other action.

An affidavit of the Secretary or of the transfer agent or other agent of the Corporation that the notice has been given shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

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**Article IX - Indemnification**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification of Directors and Officers</u>.

The Corporation shall indemnify and hold harmless, to the fullest extent permitted by the DGCL as it presently exists or may hereafter be amended, any director or officer of the Corporation who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a "<u>Proceeding</u>") by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of the Corporation or, while serving as a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership (a "covered person"), joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred by such person in connection with any such Proceeding. Notwithstanding the preceding sentence, except as otherwise provided in Section 9.4, the Corporation shall be required to indemnify a person in connection with a Proceeding initiated by such person only if the Proceeding was authorized in the specific case by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification of Others</u>.

The Corporation shall have the power to indemnify and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any employee or agent of the Corporation who was or is made or is threatened to be made a party or is otherwise involved in any Proceeding by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was an employee or agent of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses reasonably incurred by such person in connection with any such Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Prepayment of Expenses</u>.

The Corporation shall to the fullest extent not prohibited by applicable law pay the expenses (including attorneys' fees) incurred by any covered person, and may pay the expenses incurred by any employee or agent of the Corporation, in defending any Proceeding in advance of its final disposition; provided, however, that such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by the person to repay all amounts advanced if it should be ultimately determined that the person is not entitled to be indemnified under this Article IX or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Determination; Claim</u>.

If a claim for indemnification (following the final disposition of such Proceeding) under this Article IX is not paid in full within sixty (60) days, or a claim for advancement of expenses under this Article IX is not paid in full within thirty (30) days, after a written claim therefor has been received by the Corporation the claimant may thereafter (but not before) file suit to recover the unpaid amount of such claim and, if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim to the fullest extent permitted by law. In any such action the Corporation shall have the burden of

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proving that the claimant was not entitled to the requested indemnification or payment of expenses under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Exclusivity of Rights</u>.

The rights conferred on any person by this Article IX shall not be exclusive of any other rights which such person may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, these bylaws, agreement, vote of stockholders or disinterested directors or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>.

The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust enterprise or non-profit entity against any liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the Corporation would have the power to indemnify him or her against such liability under the provisions of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Indemnification</u>.

The Corporation's obligation, if any, to indemnify or advance expenses to any person who was or is serving at its request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, enterprise or non-profit entity shall be reduced by any amount such person may collect as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, enterprise or non-profit enterprise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Continuation of Indemnification</u>.

The rights to indemnification and to prepayment of expenses provided by, or granted pursuant to, this Article IX shall continue notwithstanding that the person has ceased to be a director or officer of the Corporation and shall inure to the benefit of the estate, heirs, executors, administrators, legatees and distributees of such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment or Repeal; Interpretation</u>.

The provisions of this Article IX shall constitute a contract between the Corporation, on the one hand, and, on the other hand, each individual who serves or has served as a director or officer of the Corporation (whether before or after the adoption of these bylaws), in consideration of such person's performance of such services, and pursuant to this Article IX the Corporation intends to be legally bound to each such current or former director or officer of the Corporation. With respect to current and former directors and officers of the Corporation, the rights conferred under this Article IX are present contractual rights and such rights are fully vested, and shall be deemed to have vested fully, immediately upon adoption of these bylaws. With respect to any directors or officers of the Corporation who commence service following adoption of these bylaws, the rights conferred under this provision shall be present contractual rights and such rights shall fully vest, and be deemed to have vested fully, immediately upon such director or officer commencing service as a director or officer of the Corporation. Any repeal or modification of the foregoing provisions of this Article IX shall not adversely affect any right or protection (i) hereunder of any person in respect of any act or omission occurring prior to the time of such repeal or modification or (ii) under any agreement providing for indemnification or advancement of

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expenses to an officer or director of the Corporation in effect prior to the time of such repeal or modification.

Any reference to an officer of the Corporation in this Article IX shall be deemed to refer exclusively to the Chief Executive Officer, President, Secretary, and Treasurer, or other officer of the Corporation appointed by (x) the Board pursuant to Article V of these bylaws or (y) an officer to whom the Board has delegated the power to appoint officers pursuant to Article V of these bylaws, and any reference to an officer of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be deemed to refer exclusively to an officer appointed by the board of directors (or equivalent governing body) of such other entity pursuant to the certificate of incorporation and bylaws (or equivalent organizational documents) of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise. The fact that any person who is or was an employee of the Corporation or an employee of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise has been given or has used the title of "Vice President" or any other title that could be construed to suggest or imply that such person is or may be an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall not result in such person being constituted as, or being deemed to be, an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise for purposes of this Article IX.

**Article X - Amendments**

The Board is expressly empowered to adopt, amend or repeal the bylaws of the Corporation. The stockholders also shall have power to adopt, amend or repeal the bylaws of the Corporation; provided, however, that such action by stockholders shall require, in addition to any other vote required by the Certificate of Incorporation or applicable law, the affirmative vote of the holders of at least two-thirds of the voting power of all the then-outstanding shares of voting stock of the Corporation with the power to vote generally in an election of directors, voting together as a single class.

**Article XI - Definitions**

As used in these bylaws, unless the context otherwise requires, the following terms shall have the following meanings:

An "<u>electronic transmission</u>" means any form of communication, not directly involving the physical transmission of paper, including the use of, or participation in, one or more electronic networks or databases (including one or more distributed electronic networks or databases), that creates a record that may be retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

An "<u>electronic mail</u>" means an electronic transmission directed to a unique electronic mail address (which electronic mail shall be deemed to include any files attached thereto and any information hyperlinked to a website if such electronic mail includes the contact information of an officer or agent of the Corporation who is available to assist with accessing such files and information).

An "<u>electronic mail address</u>" means a destination, commonly expressed as a string of characters, consisting of a unique user name or mailbox (commonly referred to as the "local part" of the address) and

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a reference to an internet domain (commonly referred to as the "domain part" of the address), whether or not displayed, to which electronic mail can be sent or delivered.

The term "<u>person</u>" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, business trust, joint stock company, joint venture, unincorporated association, cooperative or association or any other legal entity or organization of whatever nature, and shall include any successor (by merger or otherwise) of such entity.

## Exhibit 4.1

**Exhibit 4.1**

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**Exhibit 4.1**

![image.jpg](image.jpg)

COVER SHEET PAGES (Including this sheet): Friday, April 17, 2026 9:21:42 AM3 Fervo Energy Company Phone: Fax: Latham & Watkins LLP 300 Colorado St, Ste 2400 Austin, TX 78701 Phone: Fax: (737) 910-7379Nicholas Blake, Esq. Fidelity Stock Transfer Solutions LLC 1800 S. West Temple, Ste 301 Salt Lake City, UT 84115 Phone: Fax: (617) 563-5800 DESCRIPTION: Common Stock Specimen PDF Certificates Blue Borders - Numbered: To REMARKS: PLEASE PROOFREAD AND ADVISE US ACCORDINGLY. First Proof: Please Proofread and advise us accordingly Transmittal sent by: Brian Thank You Printing will not proceed without signed authorization - please return via fax or mail AUTHORIZED SIGNATURE: ____________________________________________ DATE: _______________ Please print name below line: AUTHORIZATION TO PRINT - PROOFS ARE NOW APPROVED FOR PRINTING THIS MATERIAL HAS NOT BEEN PROOFREAD In view of recent judicial decisions holding certain typesetting companies responsible for the accuracy of typeset material if even a perfunctory proofreading service, paid or unpaid, has been provided by that typesetting company, Columbia Financial Printing Corp., PERFORMS NO PROOFREADING SERVICE ON ANY MATERIAL PASSING THROUGH ITS TYPESETTING FACILITY. THERE ARE POSITIVELY NO EXCEPTIONS TO THIS POLICY. To Omit Ghost - Red Eagle in background please check this box: (Does not show on proof) 102406Fidelity-1.ind-2

BER SHARES COUNTERSIGNED AND REGISTERED FIDELITY STOCK TRANSFER SOLUTIONS LLC (Boston, Massachusetts) TRANSFER AGENT AND REGISTRAR BY: AUTHORIZED SIGNATURE DATED: INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE CUSIP 31556C 10 6 SEE REVERSE FOR CERTAIN DEFINITIONS This Certifies That: is the owner of C O M M ON S T O C K TREASURER PRESIDENT FULLY PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK OF $0.0001 PAR VALUE EACH OF Fervo Energy Company transferable on the books of the Corporation in person or by attorney upon surrender of this certificate duly endorsed or assigned. This certificate and the shares represented hereby are subject to the laws of the State of Delaware, and to the Certificate of Incorporation and Bylaws of the Corporation, as now or hereafter amended. This certificate is not valid until countersigned and registered by the Transfer Agent and Registrar. WITNESS the facsimile seal of the Corporation and the facsimile signatures of its duly authorized officers. PROOF PROOF PROOF PROOF PROOF PROOF PROOF PROOF

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**Exhibit 4.1**

![exhibit41-fervoenergyxce003a.jpg](exhibit41-fervoenergyxce003a.jpg)

COLUMBIA PRINTING SERVICES, LLC - www.stockinformation.com The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common UNIF GIFT MIN ACT - ....................Custodian.................... TEN ENT - as tenants by the entireties (Cust) (Minor) JT TEN - as joint tenants with right of under Uniform Gifts to Minors survivorship and not as tenants Act ................................................... in common (State) Additional abbreviations may also be used though not in the above list. For Value Received, hereby sell, assign and transfer unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) Shares of the stock represented by the within Certificate, and do hereby irrevocably constitute and appoint Attorney to transfer the said stock on the books of the within named Corporation with full power of substitution in the premises. Dated NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER. Signature(s) Guaranteed By The Signature(s) must be guaranteed by an eligible guarantor institution (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions with membership in an approved Signature Guarantee Medallion Program), pursuant to SEC Rule 17Ad-15. THE CORPORATION WILL FURNISH TO ANY STOCKHOLDER, UPON REQUEST AND WITHOUT CHARGE, A FULL STATEMENT OF THE DESIGNATIONS, RELATIVE RIGHTS, PREFERENCES AND LIMITATIONS OF THE SHARES OF EACH CLASS AND SERIES AUTHORIZED TO BE ISSUED, SO FAR AS THE SAME HAVE BEEN DETERMINED, AND OF THE AUTHORITY, IF ANY, OF THE BOARD TO DIVIDE THE SHARES INTO CLASSES OR SERIES AND TO DETERMINE AND CHANGE THE RELATIVE RIGHTS, PREFERENCES AND LIMITATIONS OF ANY CLASS OR SERIES. SUCH REQUEST MAY BE MADE TO THE SECRETARY OF THE CORPORATION OR TO THE TRANSFER AGENT NAMED ON THIS CERTIFICATE.

## Ex-10.(2)(A)

**Exhibit 10.2(a)**

**FERVO ENERGY COMPANY**<br>**2026 INCENTIVE AWARD PLAN**<br>

**STOCK OPTION GRANT NOTICE**

Fervo Energy Company, a Delaware corporation (the "***Company***") has granted to the participant listed below ("***Participant***") the stock option (the "***Option***") described in this Stock Option Grant Notice (the "***Grant Notice***"), subject to the terms and conditions of the Fervo Energy Company 2026 Incentive Award Plan (as amended from time to time, the "***Plan***") and the Stock Option Agreement attached hereto as **Exhibit A** (the "***Agreement***"), both of which are incorporated into this Grant Notice by reference. Capitalized terms not specifically defined in this Grant Notice or the Agreement have the meanings given to them in the Plan.

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| | |
|:---|:---|
| **Participant:** | [To be specified] |
| **Grant Date:** | [To be specified] |
| **Exercise Price per Share:** | [To be specified] |
| **Shares Subject to the Option:** | [To be specified] |
| **Final Expiration Date:** | [To be specified] |
| **Vesting Commencement Date:** | [To be specified] |
| **Vesting Schedule:** | [To be specified] |
| **Type of Option** | [Incentive Stock Option]/[Non-Qualified Stock Option] |

---

By accepting (whether in writing, electronically or otherwise) the Option, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement. Participant has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Agreement.

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| | |
|:---|:---|
| **FERVO ENERGY COMPANY** | **PARTICIPANT** |
| By: |  |
| Name: | [Participant Name] |
| Title: |  |

---

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**<u>Exhibit A</u>**

**STOCK OPTION AGREEMENT**

Capitalized terms not specifically defined in this Agreement have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.

**ARTICLE I.**

**GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Grant of Option</u>. The Company has granted to Participant the Option effective as of the grant date set forth in the Grant Notice (the "***Grant Date***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Incorporation of Terms of Plan</u>. The Option is subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan will control.

**ARTICLE II.**

**PERIOD OF EXERCISABILITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Commencement of Exercisability</u>. The Option will vest and become exercisable according to the vesting schedule in the Grant Notice (the "***Vesting Schedule***") except that any fraction of a Share as to which the Option would be vested or exercisable will be accumulated and will vest and become exercisable only when a whole Share has accumulated. The Option will immediately expire and be forfeited as to any portion that is not vested and exercisable as of Participant's Termination of Service for any reason, except as otherwise determined by the Administrator or provided in a binding written agreement between Participant and the Company (after taking into consideration any accelerated vesting and exercisability which may occur in connection with such Termination of Service, including under the Company's Executive Severance Plan, if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Duration of Exercisability</u>. The Vesting Schedule is cumulative. Any portion of the Option which vests and becomes exercisable will remain vested and exercisable until the Option expires. The Option will be forfeited immediately upon its expiration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Expiration of Option</u>. The Option may not be exercised to any extent by anyone after, and will expire on, the first of the following to occur:

&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)&nbsp;&nbsp;&nbsp;&nbsp;The final expiration date in the Grant Notice; provided, however, such final expiration date may be extended pursuant to Section 5.3 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as the Administrator may otherwise approve, the expiration of three months from the date of Participant's Termination of Service, unless Participant's Termination of Service is for Cause or by reason of Participant's death or 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)&nbsp;&nbsp;&nbsp;&nbsp;Except as the Administrator may otherwise approve, the expiration of one year from the date of Participant's Termination of Service by reason of Participant's death or Disability; 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;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except as the Administrator may otherwise approve, Participant's Termination of Service for Cause.

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**ARTICLE III.**

**EXERCISE OF OPTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Person Eligible to Exercise</u>. During Participant's lifetime, only Participant may exercise the Option. After Participant's death, any exercisable portion of the Option may, prior to the time the Option expires, be exercised by Participant's Designated Beneficiary as provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Partial Exercise</u>. Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised, in whole or in part, according to the procedures in the Plan at any time prior to the time the Option or portion thereof expires, except that the Option may only be exercised for whole Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Withholding; Exercise Price</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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 3.3(b) and 3.3(c), payment of the exercise price and withholding tax obligations with respect to the Option may be by any of the following, or a combination thereof, as determined by the Company (or, if Participant is subject to Section 16 of the Exchange Act, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Cash or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;In whole or in part by delivery of Shares, including Shares delivered by attestation and Shares retained from the Option creating the tax obligation, valued at their Fair Market Value on the date of delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 9.10 of the Plan, delivery (including electronically or telephonically to the extent permitted by the Company) by Participant to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company that Participant has placed a market sell order with such broker with respect to Shares then-issuable upon exercise of the Option, and that the broker has been directed to deliver promptly to the Company funds sufficient to satisfy the applicable exercise price and/or tax withholding obligations; provided, that payment of such proceeds is then made to the Company at such time as may be required by the Administrator; 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;(iv)&nbsp;&nbsp;&nbsp;&nbsp;In whole or in part by the Company withholding of Shares otherwise issuable upon exercise of this 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;Unless the Company (or, if Participant is subject to Section 16 of the Exchange Act, the Administrator) otherwise determines, and subject to Section 9.10 of the Plan, payment of any exercise price and/or applicable withholding tax obligations with respect to the Award shall be (i) if Participant is not subject to Section 16 of the Exchange Act, by delivery (including electronically or telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the Company to deliver promptly to the Company sufficient funds to satisfy the exercise price and/or applicable tax withholding obligations or (ii) if Participant is subject to Section 16 of the Exchange Act, by delivery (including electronically or telephonically to the extent permitted by the Company) by Participant to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company that Participant has placed a market sell order with such broker with respect to Shares then-issuable upon exercise of the Award, and that the broker has been directed to deliver promptly to the Company funds sufficient to satisfy the exercise price and/or applicable tax withholding obligations; provided, that payment of such proceeds is then made to the Company at such time as may be required by the Administrator.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 9.5 of the Plan, the applicable tax withholding obligation will be determined based on Participant's Applicable Withholding Rate. Participant's "***Applicable Withholding Rate***" shall mean (i) if Participant is subject to Section 16 of the Exchange Act, the greater of (A) the minimum applicable statutory tax withholding rate or (B) with Participant's consent, the maximum individual tax withholding rate permitted under the rules of the applicable taxing authority for tax withholding attributable to the underlying transaction, or (ii) if Participant is not subject to Section 16 of the Exchange Act, the minimum applicable statutory tax withholding rate or such other higher rate approved by the Company; provided, however, that (i) in no event shall Participant's Applicable Withholding Rate exceed the maximum individual statutory tax rate in the applicable jurisdiction at the time of such withholding (or such other rate as may be required to avoid the liability classification of the applicable award under generally accepted accounting principles in the United States of America); and (ii) the number of Shares tendered or withheld, if applicable, shall be rounded up to the nearest whole Share sufficient to cover the applicable tax withholding obligation, to the extent rounding up to the nearest whole Share does not result in the liability classification of the Option under generally accepted accounting principles.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Participant acknowledges that Participant is ultimately liable and responsible for the exercise price and all taxes owed in connection with the Option (and, with respect to taxes, regardless of any action the Company or any Subsidiary takes with respect to any tax withholding obligations that arise in connection with the Option). Neither the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or exercise of the Option or the subsequent sale of Shares. The Company and the Subsidiaries do not commit and are under no obligation to structure the Option to reduce or eliminate Participant's tax liability.

**ARTICLE IV.**

**OTHER PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustments</u>. Participant acknowledges that the Option is subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Clawback</u>. The Option and the Shares issuable hereunder shall be subject to any clawback or recoupment policy in effect on the Grant Date or as may be adopted or maintained by the Company following the Grant Date, including the Company's Policy for Recovery of Erroneously Awarded Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company's General Counsel at the Company's principal office or the General Counsel's then-current email address or facsimile number. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant (or, if Participant is then deceased, to the Designated Beneficiary) at Participant's last known mailing address, email address or facsimile number in the Company's personnel files. By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party. Any notice will be deemed duly given when actually received, when sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post office regularly maintained by the United States Postal Service, when delivered by a nationally recognized express shipping company or upon receipt of a facsimile transmission confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Titles</u>. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Conformity to Securities Laws</u>. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary to conform to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in this Agreement or the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the Option will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed amended as necessary to conform to such applicable exemptive rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement; Amendment</u>. The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board; provided, however, that except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall materially and adversely affect the Option without the prior written consent of Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreement Severable</u>. In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Option, and rights no greater than the right to receive the Shares as a general unsecured creditor with respect to the Option, as and when exercised pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Not a Contract of Employment</u>. Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and Participant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law, each of which will be deemed an original and all of which together will constitute one instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Incentive Stock Options</u>. If the Option is designated as an Incentive Stock 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;(a)&nbsp;&nbsp;&nbsp;&nbsp;Participant acknowledges that to the extent the aggregate fair market value of shares (determined as of the time the option with respect to the shares is granted) with respect to which stock options intended to qualify as "incentive stock options" under Section 422 of the Code, including the Option, are exercisable for the first time by Participant during any calendar year exceeds $100,000 or if for any other reason such stock options do not qualify or cease to qualify for treatment as "incentive stock options" under Section 422 of the Code, such stock options (including the Option) will be treated as non-qualified stock options. Participant further acknowledges that the rule set forth in the preceding sentence will be applied by taking the Option and other stock options into account in the order in which they were granted, as determined under Section 422(d) of the Code. Participant also acknowledges that if the Option is exercised more than three months after Participant's Termination of Service, other than by reason of death or Disability, the Option will be taxed as a Non-Qualified Stock 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;Participant will give prompt written notice to the Company of any disposition or other transfer of any Shares acquired under this Agreement if such disposition or other transfer is made (i) within two years from the Grant Date or (ii) within one year after the transfer of such Shares to Participant. Such notice will specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by Participant in such disposition or other transfer.

**\* \* \* \* \***

## Ex-10.(2)(B)

**Exhibit 10.2(b)**

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| |
|:---|
| **FERVO ENERGY COMPANY** |
| **2026 INCENTIVE AWARD PLAN** |

---

**RESTRICTED STOCK UNIT GRANT NOTICE**

Fervo Energy Company, a Delaware corporation (the "***Company***"), has granted to the participant listed below ("***Participant***") the Restricted Stock Units (the "***RSUs***") described in this Restricted Stock Unit Grant Notice (this "***Grant Notice***"), subject to the terms and conditions of the Fervo Energy Company 2026 Incentive Award Plan (as amended from time to time, the "***Plan***") and the Restricted Stock Unit Agreement attached hereto as **Exhibit A** (the "***Agreement***"), both of which are incorporated into this Grant Notice by reference. Capitalized terms not specifically defined in this Grant Notice or the Agreement have the meanings given to them in the Plan.

---

| | |
|:---|:---|
| **Participant:** | [To be specified] |
| **Grant Date:** | [To be specified] |
| **Number of RSUs:** | [To be specified] |
| **Vesting Commencement Date:** | [To be specified] |
| **Vesting Schedule:** | [To be specified] |

---

By accepting (whether in writing, electronically or otherwise) the RSUs, Participant agrees to be bound by the terms of this Grant Notice, the Plan and the Agreement. Participant has reviewed the Plan, this Grant Notice and the Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, this Grant Notice and the Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the Agreement.

---

| | |
|:---|:---|
| **FERVO ENERGY COMPANY** | **PARTICIPANT** |
| By: |  |
| Name: | [Participant Name] |
| Title: |  |

---

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**<u>Exhibit A</u>**

**RESTRICTED STOCK UNIT AGREEMENT**

Capitalized terms not specifically defined in this Restricted Stock Unit Agreement (this "***Agreement***") have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, in the Plan.

**ARTICLE I.**

**GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Award of RSUs and Dividend Equivalents</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)&nbsp;&nbsp;&nbsp;&nbsp;The Company has granted the RSUs to Participant effective as of the Grant Date set forth in the Grant Notice (the "***Grant Date***"). Each RSU represents the right to receive one Share as set forth in this Agreement. Participant will have no right to the distribution of any Shares until the time (if ever) the RSUs have 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby grants to Participant, with respect to each RSU granted hereunder, a Dividend Equivalent for ordinary cash dividends paid to substantially all holders of outstanding Shares with a record date after the Grant Date and prior to the date the applicable RSU is settled, forfeited or otherwise expires. Each Dividend Equivalent entitles Participant to receive the equivalent value of any such ordinary cash dividends paid on a single Share. The Company will establish a separate Dividend Equivalent bookkeeping account (a "***Dividend Equivalent Account***") for each Dividend Equivalent and credit the Dividend Equivalent Account (without interest) on the applicable dividend payment date with the amount of any such cash paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Incorporation of Terms of Plan</u>. The RSUs and Dividend Equivalents are subject to the terms and conditions set forth in this Agreement and the Plan, which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan will control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Unsecured Promise</u>. The RSUs and Dividend Equivalents will at all times prior to settlement represent an unsecured Company obligation payable only from the Company's general assets.

**ARTICLE II.**

**VESTING; FORFEITURE AND SETTLEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Vesting; Forfeiture</u>. The RSUs will vest according to the vesting schedule in the Grant Notice except that any fraction of an RSU that would otherwise be vested will be accumulated and will vest only when a whole RSU has accumulated. Dividend Equivalents (including any Dividend Equivalent Account balance) will vest upon the vesting of the RSUs with respect to which the Dividend Equivalent (including the Dividend Equivalent Account) relates. In the event of Participant's Termination of Service for any reason, (a) all unvested RSUs will immediately and automatically be cancelled and forfeited, except as otherwise determined by the Administrator or provided in a binding written agreement between Participant and the Company (after taking into consideration any accelerated vesting which may occur in connection with such Termination of Service, including under the Company's Executive Severance Plan, if applicable) and (b) Dividend Equivalents (including any Dividend Equivalent Account balance) will be forfeited upon the forfeiture of the RSUs with respect to which the Dividend Equivalent (including the Dividend Equivalent Account) relates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Settlement</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)&nbsp;&nbsp;&nbsp;&nbsp;The RSUs will, to the extent vested, be paid in Shares, and Dividend Equivalents (including any Dividend Equivalent Account balance) will be paid in cash or, if approved by the Administrator, Shares, as soon as administratively practicable after the vesting of the applicable RSU, but in no event later than March 15 of the year following the year in which the RSU's vesting date occurs.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the Company may delay any payment under this Agreement that the Company reasonably determines would violate Applicable Law until the earliest date the Company reasonably determines the making of the payment will not cause such a violation (in accordance with Treasury Regulation Section 1.409A-2(b)(7)(ii)); provided the Company reasonably believes the delay will not result in the imposition of excise taxes under Section 409A. Any Dividend Equivalents granted in connection with the RSUs issued hereunder, and any amounts that may become distributable in respect thereof, shall be treated separately from such RSUs and the rights arising in connection therewith for purposes of the designation of time and form of payments required by Section 409A.

&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)&nbsp;&nbsp;&nbsp;&nbsp;If a Dividend Equivalent is paid in Shares, the number of Shares paid with respect to the Dividend Equivalent will equal the quotient, rounded down to the nearest whole Share, of the Dividend Equivalent Account balance divided by the Fair Market Value of a Share on the day immediately preceding the payment date.

**ARTICLE III.**

**TAXATION AND TAX WITHHOLDING**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Representation</u>. Participant represents to the Company that Participant has reviewed with Participant's own tax advisors the tax consequences of this award of RSUs and Dividend Equivalents (the "***Award***") and the transactions contemplated by the Grant Notice and this Agreement. Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;<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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 3.2(b), payment of the withholding tax obligations with respect to the Award may be by any of the following, or a combination thereof, as determined by the Company (or, if Participant is subject to Section 16 of the Exchange Act, 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;(i)&nbsp;&nbsp;&nbsp;&nbsp;Cash or 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;In whole or in part by delivery of Shares, including Shares delivered by attestation and Shares retained from the Award creating the tax obligation, valued at their Fair Market Value on the date of delivery;

&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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 9.10 of the Plan, delivery (including electronically or telephonically to the extent permitted by the Company) by Participant to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company that Participant has placed a market sell order with such broker with respect to Shares then-issuable upon settlement of the Award, and that the broker has been directed to deliver promptly to the Company funds sufficient to satisfy the applicable tax withholding obligations; provided, that

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payment of such proceeds is then made to the Company at such time as may be required by the Administrator; 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)&nbsp;&nbsp;&nbsp;&nbsp;In whole or in part by the Company withholding of Shares otherwise vesting or issuable under this Award in satisfaction of any applicable withholding tax obligations.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Unless the Company (or, if Participant is subject to Section 16 of the Exchange Act, the Administrator) otherwise determines, and subject to Section 9.10 of the Plan, payment of the withholding tax obligations with respect to the Award shall be (i) if Participant is not subject to Section 16 of the Exchange Act, by delivery (including electronically or telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the Company to deliver promptly to the Company sufficient funds to satisfy the applicable tax withholding obligations or (ii) if Participant is subject to Section 16 of the Exchange Act, then by delivery (including electronically or telephonically to the extent permitted by the Company) by Participant to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company that Participant has placed a market sell order with such broker with respect to Shares then-issuable upon settlement of the Award, and that the broker has been directed to deliver promptly to the Company funds sufficient to satisfy the applicable tax withholding obligations; provided, that payment of such proceeds is then made to the Company at such time as may be required 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;(c)&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 9.5 of the Plan, the applicable tax withholding obligation will be determined based on Participant's Applicable Withholding Rate. Participant's "***Applicable Withholding Rate***" shall mean (i) if Participant is subject to Section 16 of the Exchange Act, the greater of (A) the minimum applicable statutory tax withholding rate or (B) with Participant's consent, the maximum individual tax withholding rate permitted under the rules of the applicable taxing authority for tax withholding attributable to the underlying transaction, or (ii) if Participant is not subject to Section 16 of the Exchange Act, the minimum applicable statutory tax withholding rate or such other higher rate approved by the Company; provided, however, that (i) in no event shall Participant's Applicable Withholding Rate exceed the maximum individual statutory tax rate in the applicable jurisdiction at the time of such withholding (or such other rate as may be required to avoid the liability classification of the applicable award under generally accepted accounting principles in the United States of America); and (ii) the number of Shares tendered or withheld, if applicable, shall be rounded up to the nearest whole Share sufficient to cover the applicable tax withholding obligation, to the extent rounding up to the nearest whole Share does not result in the liability classification of the RSUs under generally accepted accounting principles.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Participant acknowledges that Participant is ultimately liable and responsible for all taxes owed in connection with the RSUs and Dividend Equivalents, regardless of any action the Company or any Subsidiary takes with respect to any tax withholding obligations that arise in connection with the RSUs or Dividend Equivalents. Neither the Company nor any Subsidiary makes any representation or undertaking regarding the treatment of any tax withholding in connection with the awarding, vesting or payment of the RSUs or the Dividend Equivalents or the subsequent sale of Shares. The Company and its Subsidiaries do not commit and are under no obligation to structure the RSUs or Dividend Equivalents to reduce or eliminate Participant's tax liability.

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**ARTICLE IV.**

**OTHER PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustments</u>. Participant acknowledges that the RSUs and the Shares subject to the RSUs and the Dividend Equivalents are subject to adjustment, modification and termination in certain events as provided in this Agreement and the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Clawback</u>. The Award and the Shares issuable hereunder shall be subject to any clawback or recoupment policy in effect on the Grant Date or as may be adopted or maintained by the Company following the Grant Date, including the Company's Policy for Recovery of Erroneously Awarded Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Any notice to be given under the terms of this Agreement to the Company must be in writing and addressed to the Company in care of the Company's General Counsel at the Company's principal office or the General Counsel's then-current email address or facsimile number. Any notice to be given under the terms of this Agreement to Participant must be in writing and addressed to Participant (or, if Participant is then deceased, to the Designated Beneficiary) at Participant's last known mailing address, email address or facsimile number in the Company's personnel files. By a notice given pursuant to this Section, either party may designate a different address for notices to be given to that party. Any notice will be deemed duly given when actually received, when sent by email, when sent by certified mail (return receipt requested) and deposited with postage prepaid in a post office or branch post office regularly maintained by the United States Postal Service, when delivered by a nationally recognized express shipping company or upon receipt of a facsimile transmission confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Titles</u>. Titles are provided herein 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;4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Conformity to Securities Laws</u>. Participant acknowledges that the Plan, the Grant Notice and this Agreement are intended to conform to the extent necessary with all Applicable Laws and, to the extent Applicable Laws permit, will be deemed amended as necessary to conform to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to a single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth in this Agreement or the Plan, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations Applicable to Section 16 Persons</u>. Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Grant Notice, this Agreement and the RSUs and Dividend Equivalents will be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of such exemptive rule. To the extent Applicable Laws permit, this Agreement will be deemed amended as necessary to conform to such applicable exemptive rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement; Amendment</u>. The Plan, the Grant Notice and this Agreement (including any exhibit hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the

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Board; provided, however, that except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall materially and adversely affect the RSUs or Dividend Equivalents without the prior written consent of Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Agreement Severable</u>. In the event that any provision of the Grant Notice or this Agreement is held illegal or invalid, the provision will be severable from, and the illegality or invalidity of the provision will not be construed to have any effect on, the remaining provisions of the Grant Notice or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Participant's Rights</u>. Participation in the Plan confers no rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and may not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. Participant will have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the RSUs and Dividend Equivalents, and rights no greater than the right to receive cash or the Shares as a general unsecured creditor with respect to the RSUs and Dividend Equivalents, as and when settled pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Not a Contract of Employment</u>. Nothing in the Plan, the Grant Notice or this Agreement confers upon Participant any right to continue in the employ or service of the Company or any Subsidiary or interferes with or restricts in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Participant at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>. The Grant Notice may be executed in one or more counterparts, including by way of any electronic signature, subject to Applicable Law, each of which will be deemed an original and all of which together will constitute one instrument.

**\* \* \* \* \***

## Exhibit 10.1

**Exhibit 10.1**

**2019 STOCK INCENTIVE PLAN**

**OF**

**FERVO ENERGY COMPANY**

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**TABLE OF CONTENTS**

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| | | | |
|:---|:---|:---|:---|
| | | **PAGE** | **PAGE** |
| 1. |  | Purpose | 1 |
| 2. |  | Eligibility | 1 |
| 3. |  | Administration and Delegation | 1 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;Administration by the Board | 1 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;Appointment of Committees | 1 |
| 4. |  | Stock Available for Awards | 1 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;Number of Shares | 1 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;Substitute Awards | 2 |
| 5. |  | Stock Options | 2 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;General | 2 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;Incentive Stock Options | 2 |
|  | (c) | &nbsp;&nbsp;&nbsp;&nbsp;Exercise Price | 2 |
|  | (d) | &nbsp;&nbsp;&nbsp;&nbsp;Duration of Options | 3 |
|  | (e) | &nbsp;&nbsp;&nbsp;&nbsp;Exercise of Options | 3 |
|  | (f) | &nbsp;&nbsp;&nbsp;&nbsp;Payment Upon Exercise | 3 |
| 6. |  | Stock Appreciation Rights | 4 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;General | 4 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;Measurement Price | 4 |
|  | (c) | &nbsp;&nbsp;&nbsp;&nbsp;Duration of SARs | 4 |
|  | (d) | &nbsp;&nbsp;&nbsp;&nbsp;Exercise of SARs | 4 |
| 7. |  | Restricted Stock; Restricted Stock Units | 4 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;General | 4 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;Terms and Conditions for All Restricted Stock Awards | 4 |
|  | (c) | &nbsp;&nbsp;&nbsp;&nbsp;Additional Provisions Relating to Restricted Stock | 4 |
|  | (d) | &nbsp;&nbsp;&nbsp;&nbsp;Additional Provisions Relating to Restricted Stock Units | 5 |
| 8. |  | Other Stock-Based Awards | 5 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;General | 5 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;Terms and Conditions | 5 |
|  | (c) | &nbsp;&nbsp;&nbsp;&nbsp;Additional Limitations for Other Stock-Based Awards | 5 |
| 9. |  | Adjustments for Changes in Common Stock and Certain Other Events | 6 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;Changes in Capitalization | 6 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;Reorganization Events | 6 |
|  | (c) | &nbsp;&nbsp;&nbsp;&nbsp;Additional Restriction Regarding Recapitalizations, Stock Splits, Etc | 7 |
| 10. |  | General Provisions Applicable to Awards | 7 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;Transferability of Awards | 7 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;Documentation | 8 |
|  | (c) | &nbsp;&nbsp;&nbsp;&nbsp;Board Discretion | 8 |
|  | (d) | &nbsp;&nbsp;&nbsp;&nbsp;Termination of Status | 8 |
|  | (e) | &nbsp;&nbsp;&nbsp;&nbsp;Withholding | 8 |
|  | (f) | &nbsp;&nbsp;&nbsp;&nbsp;Amendment of Award | 8 |
|  | (g) | &nbsp;&nbsp;&nbsp;&nbsp;Conditions on Delivery of Stock | 9 |
|  | (h) | &nbsp;&nbsp;&nbsp;&nbsp;Acceleration | 9 |

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| | | | |
|:---|:---|:---|:---|
| | (i) | &nbsp;&nbsp;&nbsp;&nbsp;Additional Limitations on Timing of Awards | 9 |
| 11. |  | Miscellaneous | 9 |
|  | (a) | &nbsp;&nbsp;&nbsp;&nbsp;No Right To Employment or Other Status | 9 |
|  | (b) | &nbsp;&nbsp;&nbsp;&nbsp;No Rights As Stockholder | 9 |
|  | (c) | &nbsp;&nbsp;&nbsp;&nbsp;Effective Date and Term of Plan | 9 |
|  | (d) | &nbsp;&nbsp;&nbsp;&nbsp;Amendment of Plan | 9 |
|  | (e) | &nbsp;&nbsp;&nbsp;&nbsp;Authorization of Sub-Plans (including Grants to non-U.S. Employees) | 10 |
|  | (f) | &nbsp;&nbsp;&nbsp;&nbsp;Compliance with Section 409A of the Code | 10 |
|  | (g) | &nbsp;&nbsp;&nbsp;&nbsp;Limitations on Liability | 10 |
|  | (h) | &nbsp;&nbsp;&nbsp;&nbsp;Governing Law | 10 |

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- ii -

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**2019 STOCK INCENTIVE PLAN**

**OF**

**FERVO ENERGY COMPANY**

1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Purpose</u>

The purpose of this 2019 Stock Incentive Plan (the "**Plan**") of Fervo Energy Company, a Delaware corporation (the "**Company**"), is to advance the interests of the Company's stockholders by enhancing the Company's ability to attract, retain and motivate persons who are expected to make important contributions to the Company and by providing such persons with equity ownership opportunities and performance-based incentives that are intended to better align the interests of such persons with those of the Company's stockholders. Except where the context otherwise requires, the term "**Company**" shall include any of the Company's present and future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986, as amended, and any regulations thereunder (the "**Code**") and any other business venture (including, without limitation, joint venture or limited liability company) in which the Company has a controlling interest, as determined by the Board of Directors of the Company (the "**Board**"); *provided*, *however*, that such other business ventures shall be limited to entities that, where required by Section 409A of the Code, are eligible issuers of service recipient stock (as defined in Treas. Reg. Section 1.409A-1(b)(5)(iii)(E), or applicable successor regulation).

2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Eligibility</u>

All of the Company's employees, officers and directors, as well as consultants and advisors to the Company (as such terms consultants and advisors are defined and interpreted for purposes of Rule 701 under the Securities Act of 1933, as amended (the "**Securities Act**") (or any successor rule)) are eligible to be granted Awards under the Plan. Each person who is granted an Award under the Plan is deemed a "**Participant**." "**Award**" means Options (as defined in Section 5), SARs (as defined in Section 6), Restricted Stock (as defined in Section 7), Restricted Stock Units (as defined in Section 7) and Other Stock-Based Awards (as defined in Section 8).

3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Administration and Delegation</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Administration by the Board</u>. The Plan will be administered by the Board. The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable. The Board may construe and interpret the terms of the Plan and any Award agreements entered into under the Plan. The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency. All actions and decisions by the Board with respect to the Plan and any Awards shall be made in the Board's discretion and shall be final and binding on all Participants and any other persons having or claiming any interest in the Plan or in any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Appointment of Committees</u>. To the extent permitted by applicable law, the Board may delegate any or all of its powers under the Plan to one or more committees or subcommittees of the Board (each, a "**Committee**"). All references in the Plan to the "**Board**" shall mean the Board or a Committee to the extent that the Board's powers or authority under the Plan have been delegated to such Committee.

4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Available for Awards</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Shares</u>. Subject to adjustment under Section 9, Awards may be made under the Plan for up to 6,110,565 shares of common stock, $0.0001 par value per share, of the Company (the "**Common Stock**"), any or all of which Awards may be in the form of Incentive Stock Options (as defined in Section 5(b)).If any Award expires or is terminated, surrendered or canceled without having been fully exercised, is forfeited in whole or in part (including as the result of shares of Common Stock subject to such Award being repurchased by the Company at the

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original issuance price pursuant to a contractual repurchase right), or results in any Common Stock not being issued, the unused Common Stock subject to such Award shall again be available for the grant of Awards under the Plan. Further, shares of Common Stock tendered to the Company by a Participant to exercise an Award or to satisfy tax withholding obligations arising with respect to an Award shall be added to the number of shares of Common Stock available for the grant of Awards under the Plan. However, in the case of Incentive Stock Options, the two immediately preceding sentences shall be subject to any limitations under the Code. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Substitute Awards</u>. In connection with a merger or consolidation of an entity with the Company or the acquisition by the Company of property or stock of an entity, the Board may grant Awards in substitution for any options or other stock or stock-based awards granted by such entity or an affiliate thereof. Substitute Awards may be granted on such terms as the Board deems appropriate in the circumstances, notwithstanding any limitations on Awards contained in the Plan. Substitute Awards shall not count against the overall share limit set forth in Section 4(a), except as may be required by reason of Section 422 and related provisions of the Code.

5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Options</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The Board may grant options to purchase Common Stock (each, an "**Option**") and determine the number of shares of Common Stock to be subject to each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it considers necessary or advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Incentive Stock Options</u>. An Option that the Board intends to be an "incentive stock option" as defined in Section 422 of the Code (an "**Incentive Stock Option**") shall only be granted to employees of Fervo Energy Company, any of Fervo Energy Company's present and future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the Code, and any other entities the employees of which are eligible to receive Incentive Stock Options under the Code, and shall be subject to and shall be construed consistently with the requirements of Section 422 of the Code. An Option that is not intended to be an Incentive Stock Option shall be designated non-statutory stock option (a "**Nonstatutory Stock Option)**." The Company shall have no liability to a Participant, or any other person, if an Option (or any part thereof) that is intended to be an Incentive Stock Option is not an Incentive Stock Option or if the Company converts an Incentive Stock Option to a Nonstatutory Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise Price</u>. The Board shall establish the exercise price of each Option and specify the exercise price in the applicable Option agreement. The exercise price shall be not less than 100% of the Grant Date Fair Market Value (as defined below) of the Common Stock on the date the Option is granted; provided that if the Board approves the grant of an Option with an exercise price to be determined on a future date, the exercise price shall not be less than 100% of the Grant Date Fair Market Value on such future date. The "**Grant Date Fair Market Value**" of a share of Common Stock for purposes of the Plan will be 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;(1)&nbsp;&nbsp;&nbsp;&nbsp;if the Common Stock is not publicly traded, the Board will determine the Fair Market Value for purposes of the Plan using any measure of value it determines to be appropriate (including, as it considers appropriate, relying on appraisals) in a manner consistent with the valuation principles under Code Section 409A, except as the Board may expressly determine 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;(2)&nbsp;&nbsp;&nbsp;&nbsp;if the Common Stock is listed on a national securities exchange, the closing sale price (for the primary trading session) on the date of grant; 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;(3)&nbsp;&nbsp;&nbsp;&nbsp;if the Common Stock is not listed on any such exchange, the average of the closing bid and asked prices as reported by an authorized OTCBB market data vendor as listed on the OTCBB website (otcbb.com) on the date of grant.

For any date that is not a trading day, the Grant Date Fair Market Value of a share of Common Stock for such date will be determined by using the closing sale price or average of the bid and asked prices, as appropriate, for the immediately preceding trading day and with the timing in the formulas above adjusted accordingly. The

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Board can substitute a particular time of day or other measure of "closing sale price" or "bid and asked prices" if appropriate because of exchange or market procedures or can, in its discretion, use weighted averages either on a daily basis or such longer period as complies with Code Section 409A.

The Board has discretion to determine the Grant Date Fair Market Value for purposes of the Plan, and all Awards are conditioned on the applicable Participant's agreement that the Board's determination is conclusive and binding even though others might make a different determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Duration of Options</u>. Each Option shall be exercisable at such times and subject to such terms and conditions as the Board may specify in the applicable option agreement; *provided, however*, that no Option will be granted with a term in excess of 10 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of Options</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;(1)&nbsp;&nbsp;&nbsp;&nbsp;Options may be exercised by delivery to the Company of a notice of exercise in a form of notice (which may be electronic) approved by the Company, together with payment in full (in the manner specified in Section 5(f)) of the exercise price for the number of shares for which the Option is exercised. Shares of Common Stock subject to the Option will be delivered by the Company as soon as practicable following 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;(2)&nbsp;&nbsp;&nbsp;&nbsp;Unless a Participant's employment is terminated for cause (as defined by applicable law, the terms of the Plan or option grant or a contract of employment), in the event of termination of employment of such Participant, such Participant shall have the right to exercise an Option, to the extent that such Participant is entitled to exercise such Option on the date employment terminated, until the earlier of: (i) at least six (6) months from the date of termination, if termination was caused by such Participant's death or disability, (ii) at least thirty (30) days from the date of termination, if termination was caused other than by such Participant's death or disability and (iii) the Option expiration date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment Upon Exercise.</u> Common Stock purchased upon the exercise of an Option granted under the Plan shall be paid for 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;(1)&nbsp;&nbsp;&nbsp;&nbsp;in cash or by check, payable to the order 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;(2)&nbsp;&nbsp;&nbsp;&nbsp;when the Common Stock is registered under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), except as may otherwise be provided in the applicable Option agreement or approved by the Board, in its discretion, by (i) delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price and any required tax withholding or (ii) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price and any required 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;(3)&nbsp;&nbsp;&nbsp;&nbsp;when the Common Stock is registered under the Exchange Act and to the extent provided for in the applicable Option agreement or approved by the Board, in its discretion, by delivery (either by actual delivery or attestation) of shares of Common Stock owned by the Participant valued at their fair market value (valued in the manner determined by (or in a manner approved by) the Board), *provided* (i) such method of payment is then permitted under applicable law, (ii) such Common Stock, if acquired directly from the Company, was owned by the Participant for such minimum period of time, if any, as may be established by the Board in its discretion and (iii) such Common Stock is not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements;

&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)&nbsp;&nbsp;&nbsp;&nbsp;to the extent provided for in the applicable Nonstatutory Stock Option agreement or approved by the Board in its discretion, by delivery of a notice of "net exercise" to the Company, as a result of which the Participant would receive (i) the number of shares underlying the portion of the Option being exercised, less (ii) such number of shares as is equal to (A) the aggregate exercise price for the portion of the Option being

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exercised divided by (B) the fair market value of the Common Stock (valued in the manner determined by (or in a manner approved by) the Board) on the date of 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;(5)&nbsp;&nbsp;&nbsp;&nbsp;to the extent permitted by applicable law and provided for in the applicable Option agreement or approved by the Board, in its discretion, by (i) delivery of a promissory note of the Participant to the Company on terms determined by the Board, or (ii) payment of such other lawful consideration as the Board may determine; 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;(6)&nbsp;&nbsp;&nbsp;&nbsp;by any combination of the above permitted forms of payment.

6.&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Appreciation Rights</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The Board may grant Awards consisting of stock appreciation rights ("**SARs**") entitling the Participant, upon exercise, to receive an amount of Common Stock or cash or a combination thereof (such form to be determined by the Board) determined by reference to appreciation, from and after the date of grant, in the fair market value of a share of Common Stock (valued in the manner determined by (or in a manner approved by) the Board) over the measurement price established pursuant to Section 6(b). The date as of which such appreciation is determined shall be the exercise date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Measurement Price</u>. The Board shall establish the measurement price of each SAR and specify it in the applicable SAR agreement. The measurement price shall not be less than 100% of the Grant Date Fair Market Value of a share of Common Stock on the date the SAR is granted; *provided*, that if the Board approves the grant of an SAR effective as of a future date, the measurement price shall not be less than 100% of the Grant Date Fair Market Value on such future date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Duration of SARs</u>. Each SAR shall be exercisable at such times and subject to such terms and conditions as the Board may specify in the applicable SAR agreement; *provided*, *however*, that no SAR will be granted with a term in excess of 10 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of SARs</u>. SARs may be exercised by delivery to the Company of a notice of exercise in a form (which may be electronic) approved by the Company, together with any other documents required by the Board.

7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Stock; Restricted Stock Units</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The Board may grant Awards entitling Participants to acquire shares of Common Stock ("**Restricted Stock**"), subject to the right of the Company to repurchase all or part of such shares at their issue price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the Participant in the event that conditions specified by the Board in the applicable Award are not satisfied prior to the end of the applicable restriction period or periods established by the Board for such Award. The Board may also grant Awards entitling the Participant to receive shares of Common Stock or cash to be delivered at the time such Award vests ("**Restricted Stock Units**") (Restricted Stock and Restricted Stock Units are each referred to herein as a "**Restricted Stock Award**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Terms and Conditions for All Restricted Stock Awards</u>. The Board shall determine the terms and conditions of a Restricted Stock Award, including the conditions for vesting and repurchase (or forfeiture) and the issue price, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Provisions Relating to Restricted Stock</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;(1)&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends</u>. Unless otherwise provided in the applicable Award agreement, any dividends (whether paid in cash, stock or property) declared and paid by the Company with respect to shares of Restricted Stock ("**Accrued Dividends**") shall be paid to the Participant only if and when such shares become free from the

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restrictions on transferability and forfeitability that apply to such shares. Each payment of Accrued Dividends will be made no later than the end of the calendar year in which the dividends are paid to stockholders of that class of stock or, if later, the 15th day of the third month following the lapsing of the restrictions on transferability and the forfeitability provisions applicable to the underlying 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;(2)&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Certificates</u>. The Company may require that any stock certificates issued in respect of shares of Restricted Stock, as well as dividends or distributions paid on such Restricted Stock, shall be deposited in escrow by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). At the expiration of the applicable restriction periods, the Company (or such designee) shall deliver the certificates no longer subject to such restrictions to the Participant or if the Participant has died, to Participant's Designated Beneficiary. "**Designated Beneficiary**" means (i) the beneficiary designated, in a manner determined by the Board, by a Participant to receive amounts due or exercise rights of the Participant in the event of the Participant's death or (ii) in the absence of an effective designation by a Participant, "**Designated Beneficiary**" means the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Provisions Relating to Restricted Stock Units</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;(1)&nbsp;&nbsp;&nbsp;&nbsp;<u>Settlement</u>. Upon the vesting of and/or lapsing of any other restrictions (i.e., settlement) with respect to each Restricted Stock Unit, the Participant shall be entitled to receive from the Company the number of shares of Common Stock specified in the Award agreement or (if so provided in the applicable Award agreement or otherwise determined by the Board) an amount of cash equal to the fair market value (valued in the manner determined by (or in a manner approved by) the Board) of such number of shares of Common Stock or a combination thereof. The Board may, in its discretion, provide that settlement of Restricted Stock Units shall be deferred, on a mandatory basis or at the election of the Participant in a manner that complies with Section 409A of the Code.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting Rights</u>. A Participant shall have no voting rights with respect to any Restricted Stock Units.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividend Equivalents</u>. The Award agreement for Restricted Stock Units may provide Participants with the right to receive an amount equal to any dividends or other distributions declared and paid on an equal number of outstanding shares of Common Stock ("**Dividend Equivalents**"). Dividend Equivalents may be paid currently or credited to an account for the Participants, may be settled in cash and/or shares of Common Stock and may be subject to the same restrictions on transfer and forfeitability as the Restricted Stock Units with respect to which paid, in each case to the extent provided in the applicable Award agreement.

8.&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Stock-Based Awards</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The Board may grant other Awards of shares of Common Stock, and other Awards that are valued in whole or in part by reference to, or are otherwise based on, shares of Common Stock or other property ("**Other Stock-Based Awards**"). Such Other Stock-Based Awards shall also be available as a form of payment in the settlement of other Awards granted under the Plan or as payment in lieu of compensation to which a Participant is otherwise entitled. Other Stock-Based Awards may be paid in shares of Common Stock or cash, as the Board shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Terms and Conditions</u>. Subject to the provisions of the Plan, the Board shall determine the terms and conditions of each Other Stock-Based Award, including any purchase price applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Limitations for Other Stock-Based Awards</u>. The terms of all Awards granted to a Participant under this Section 8 shall comply, to the extent applicable, with Section 260.140.46 of the California Code of Regulations.

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9.&nbsp;&nbsp;&nbsp;&nbsp;<u>Adjustments for Changes in Common Stock and Certain Other Events</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Changes in Capitalization</u>. In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or other similar change in capitalization or event, or any dividend or distribution to holders of Common Stock other than an ordinary cash dividend, (i) the number and class of securities available under the Plan, (ii) the number and class of securities and exercise price per share of each outstanding Option, (iii) the share and per-share provisions and the measurement price of each outstanding SAR, (iv) the number of shares subject to and the repurchase price per share subject to each outstanding Award of Restricted Stock and (v) the share and per-share-related provisions and the purchase price, if any, of each outstanding Award of Restricted Stock Unit and each outstanding Other Stock-Based Award, shall be equitably adjusted by the Company (or substituted Awards may be made, if applicable) in the manner determined by the Board. Without limiting the generality of the foregoing, in the event the Company effects a split of the Common Stock by means of a stock dividend and the exercise price of and the number of shares subject to an outstanding Option are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), then an optionee who exercises an Option between the record date and the distribution date for such stock dividend shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reorganization 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;(1)&nbsp;&nbsp;&nbsp;&nbsp;<u>Definition</u>. A "**Reorganization Event**" shall mean: (a) any merger or consolidation of the Company with or into another entity as a result of which all of the Common Stock of the Company is converted into or exchanged for the right to receive cash, securities or other property or is cancelled, (b) any transfer or disposition of all of the Common Stock of the Company for cash, securities or other property pursuant to a share exchange or other transaction or (c) any liquidation or dissolution 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;(2)&nbsp;&nbsp;&nbsp;&nbsp;<u>Consequences of a Reorganization Event on Awards Other than Restricted Stock</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;In connection with a Reorganization Event, the Board may take any one or more of the following actions as to all or any (or any portion of) outstanding Awards other than Restricted Stock on such terms as the Board determines (except to the extent specifically provided otherwise in an applicable Award agreement or another agreement between the Company and the Participant): (i) provide that such Awards shall be assumed, or substantially equivalent Awards shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof), (ii) upon written notice to a Participant, provide that all of the Participant's unexercised and/or unvested Awards will terminate immediately prior to the consummation of such Reorganization Event unless exercised by the Participant (to the extent then exercisable) within a specified period following the date of such notice, (iii) provide that outstanding Awards shall become exercisable, realizable, or deliverable, or restrictions applicable to an Award shall lapse, in whole or in part prior to or upon such Reorganization Event, (iv) in the event of a Reorganization Event under the terms of which holders of Common Stock will receive upon consummation thereof a cash payment for each share surrendered in the Reorganization Event (the "**Acquisition Price**"), make or provide for a cash payment to Participants with respect to each Award held by a Participant equal to (A) the number of shares of Common Stock subject to the vested portion of the Award (after giving effect to any acceleration of vesting that occurs upon or immediately prior to such Reorganization Event) multiplied by (B) the excess, if any, of (I) the Acquisition Price over (II) the exercise, measurement or purchase price of such Award and any applicable tax withholdings, in exchange for the termination of such Award, (v) provide that, in connection with a liquidation or dissolution of the Company, Awards shall convert into the right to receive liquidation proceeds (if applicable, net of the exercise, measurement or purchase price thereof and any applicable tax withholdings) and (vi) any combination of the foregoing. In taking any of the actions permitted under this Section 9(b)(2), the Board shall not be obligated by the Plan to treat all Awards, all Awards held by a Participant, or all Awards of the same type, identically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the terms of Section 9(b)(2)(i), in the case of outstanding Restricted Stock Units that are subject to Section 409A of the Code: (i) if the applicable Restricted Stock Unit

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agreement provides that the Restricted Stock Units shall be settled upon a "change in control event" within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(i), and the Reorganization Event constitutes such a "change in control event", then no assumption or substitution shall be permitted pursuant to Section 9(b)(2)(i) and the Restricted Stock Units shall instead be settled in accordance with the terms of the applicable Restricted Stock Unit agreement; and (ii) the Board may only undertake the actions set forth in clauses (iii), (iv) or (v) of Section 9(b)(2)(i) if the Reorganization Event constitutes a "change in control event" as defined under Treasury Regulation Section 1.409A-3(i)(5)(i) and such action is permitted or required by Section 409A of the Code; if the Reorganization Event is not a "change in control event" as so defined or such action is not permitted or required by Section 409A of the Code, and the acquiring or succeeding corporation does not assume or substitute the Restricted Stock Units pursuant to clause (i) of Section 9(b)(2)(i), then the unvested Restricted Stock Units shall terminate immediately prior to the consummation of the Reorganization Event without any payment in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;For purposes of Section 9(b)(2)(i), an Award (other than Restricted Stock) shall be considered assumed if, following consummation of the Reorganization Event, such Award confers the right to purchase or receive pursuant to the terms of such Award, for each share of Common Stock subject to the Award immediately prior to the consummation of the Reorganization Event, the consideration (whether cash, securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each share of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); *provided, however*, that if the consideration received as a result of the Reorganization Event is not solely common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation, provide for the consideration to be received upon the exercise or settlement of the Award to consist solely of such number of shares of common stock of the acquiring or succeeding corporation (or an affiliate thereof) that the Board determined to be equivalent in value (as of the date of such determination or another date specified by the Board) to the per share consideration received by holders of outstanding shares of Common Stock as a result of the Reorganization Event.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Consequences of a Reorganization Event on Restricted Stock</u>. Upon the occurrence of a Reorganization Event other than a liquidation or dissolution of the Company, the repurchase and other rights of the Company with respect to outstanding Restricted Stock shall inure to the benefit of the Company's successor and shall, unless the Board determines otherwise, apply to the cash, securities or other property which the Common Stock was converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as they applied to such Restricted Stock; *provided*, *however*, that the Board may provide for termination or deemed satisfaction of such repurchase or other rights under the instrument evidencing any Restricted Stock or any other agreement between a Participant and the Company, either initially or by amendment, or provide for forfeiture of such Restricted Stock if issued at no cost. Upon the occurrence of a Reorganization Event involving the liquidation or dissolution of the Company, except to the extent specifically provided to the contrary in the instrument evidencing any Restricted Stock or any other agreement between a Participant and the Company, all restrictions and conditions on all Restricted Stock then outstanding shall automatically be deemed terminated or satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Restriction Regarding Recapitalizations, Stock Splits, Etc</u>. For purposes of this Section 9, in the event of a stock split, reverse stock split, stock dividend, recapitalization, combination, reclassification or other distribution of the Company's securities underlying the Award without the receipt of consideration by the Company, the number of securities purchasable, and in the case of Options, the exercise price of such Options, shall be proportionately adjusted.

10.&nbsp;&nbsp;&nbsp;&nbsp;<u>General Provisions Applicable to Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferability of Awards</u>. Awards (or any interest in an Award, including, prior to exercise, any interest in shares of Common Stock issuable upon exercise of an Option or SAR) shall not be sold, assigned, transferred (including by establishing any short position, put equivalent position (as defined in Rule 16a -1 issued under the Exchange Act) or call equivalent position (as defined in Rule 16a -1 issued under the Exchange Act)), pledged, hypothecated or otherwise encumbered by the person to whom they are granted, either voluntarily or by

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operation of law, and, during the life of the Participant, shall be exercisable only by the Participant; except that Awards, other than Awards subject to Section 409A of the Code, may be transferred to family members (as defined in Rule 701(c)(3) under the Securities Act) through gifts or (other than Incentive Stock Options) domestic relations orders or to an executor or guardian upon the death of the Participant. The Company shall not be required to recognize any such permitted transfer until such time as such permitted transferee shall deliver to the Company a written instrument, as a condition to such transfer, in form and substance satisfactory to the Company confirming that such transferee shall be bound by all of the terms and conditions of the Award. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees. For the avoidance of doubt, nothing contained in this Section 10(a) shall be deemed to restrict a transfer to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Documentation</u>. Each Award shall be evidenced in such form (written, electronic or otherwise) as the Board shall determine. Each Award may contain terms and conditions in addition to those set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Board Discretion</u>. Except as otherwise provided by the Plan, each Award may be made a lone or in addition or in relation to any other Award. The terms of each Award need not be identical, and the Board need not treat Participants uniformly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Status</u>. The Board shall determine the effect on an Award of the disability, death, termination or other cessation of employment, authorized leave of absence or other change in the employment or other status of a Participant and the extent to which, and the period during which, the Participant, or the Participant's legal representative, conservator, guardian or Designated Beneficiary, may exercise rights under the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. The Participant must satisfy all applicable federal, state, and local or other income and employment tax withholding obligations before the Company will deliver stock certificates or otherwise recognize ownership of Common Stock under an Award. The Company may elect to satisfy the withholding obligations through additional withholding on salary or wages. If the Company elects not to or cannot withhold from other compensation, the Participant must pay the Company the full amount, if any, required for withholding or have a broker tender to the Company cash equal to the withholding obligations. Payment of withholding obligations is due before the Company will issue any shares on exercise, vesting or release from forfeiture of an Award or at the same time as payment of the exercise or purchase price unless the Company determines otherwise. If provided for in an Award or approved by the Board in its discretion, a Participant may satisfy such tax obligations in whole or in part by delivery (either by actual delivery or attestation) of shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their fair market value (valued in the manner determined by (or in a manner approved by) the Company); *provided, however*, except as otherwise provided by the Board, that the total tax withholding where stock is being used to satisfy such tax obligations cannot exceed the Company's minimum statutory withholding obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income), *except that*, to the extent that the Company is able to retain shares of Common Stock having a fair market value (valued in the manner determined by (or in a manner approved by) the Company) that exceeds the statutory minimum applicable withholding tax without financial accounting implications or the Company is withholding in a jurisdiction that does not have a statutory minimum withholding tax, the Company may retain such number of shares of Common Stock (up to the number of shares having a fair market value (valued in the manner determined by (or in a manner approved by) the Company) equal to the maximum individual statutory rate of tax) as the Company shall determine in its discretion to satisfy the tax liability associated with any Award. Shares used to satisfy tax withholding requirements cannot be subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment of Award</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;(1)&nbsp;&nbsp;&nbsp;&nbsp;The Board may amend, modify or terminate any outstanding Award, including but not limited to, substituting therefor another Award of the same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option. The Participant's consent to such action shall be required unless (i) the Board determines that the action, taking into account any related action,

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does not materially and adversely affect the Participant's rights under the Plan or (ii) the change is permitted under Section 9.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Board may, without stockholder approval, amend any outstanding Award granted under the Plan to provide an exercise price per share that is lower than the then -current exercise price per share of such outstanding Award. The Board may also, without stockholder approval, cancel any outstanding award (whether or not granted under the Plan) and grant in substitution therefor new Awards under the Plan covering the same or a different number of shares of Common Stock and having an exercise price per share lower than the then-current exercise price per share of the cancelled award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions on Delivery of Stock</u>. The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously issued or delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company's counsel, all other legal matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and regulations and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Acceleration</u>. The Board may at any time provide that any Award shall become immediately exercisable in whole or in part, free of some or all restrictions or conditions, or otherwise realizable in whole or in part, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Limitations on Timing of Awards</u>. No Award granted to a Participant shall become exercisable, vested or realizable, as applicable to such Award, unless the Plan has been approved by the holders of a majority of the Company's outstanding voting securities by the later of (i) within twelve (12) months before or after the date the Plan was adopted by the Board, or (ii) prior to or within twelve (12) months of the granting of any Award to a Participant.

11.&nbsp;&nbsp;&nbsp;&nbsp;<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Right To Employment or Other Status</u>. No person shall have any claim or right to be granted an Award by virtue of the adoption of the Plan, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>No Rights As Stockholder</u>. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until becoming the record holder of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Effective Date and Term of Plan</u>. The Plan shall become effective on the date on which it is adopted by the Board. No Awards shall be granted under the Plan after the expiration of 10 years from the earlier of (i) the date on which the Plan was adopted by the Board or (ii) the date the Plan was approved by the Company's stockholders, but Awards previously granted may extend beyond that date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment of Plan</u>. The Board may amend, suspend or terminate the Plan or any portion thereof at any time; *provided* that if at any time the approval of the Company's stockholders is required as to any modification or amendment under Section 422 of the Code or any successor provision with respect to Incentive Stock Options, the Board may not effect such modification or amendment without such approval. Unless otherwise specified in the amendment, any amendment to the Plan adopted in accordance with this Section 11(d) shall apply to, and be binding on the holders of, all Awards outstanding under the Plan at the time the amendment is adopted,

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provided the Board determines that such amendment, taking into account any related action, does not materially and adversely affect the rights of Participants under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Authorization of Sub-Plans (including Grants to non-U.S. Employees)</u>. The Board may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable securities, tax or other laws of various jurisdictions. The Board shall establish such sub-plans by adopting supplements to the Plan containing (i) such limitations on the Board's discretion under the Plan as the Board deems necessary or desirable or (ii) such additional terms and conditions not otherwise inconsistent with the Plan as the Board shall deem necessary or desirable. All supplements adopted by the Board shall be deemed to be part of the Plan, but each supplement shall apply only to Participants within the affected jurisdiction and the Company shall not be required to provide copies of any supplement to Participants in any jurisdiction which is not the subject of such supplement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Section 409A of the Code</u>. If and to the extent (i) any portion of any payment, compensation or other benefit provided to a Participant pursuant to the Plan in connection with Participant's employment termination constitutes "nonqualified deferred compensation" within the meaning of Section 409A of the Code and (ii) the Participant is a specified employee as defined in Section 409A(a)(2)(B)(i) of the Code, in each case as determined by the Company in accordance with its procedures, by which determinations the Participant (through accepting the Award) agrees that the Participant is bound, such portion of the payment, compensation or other benefit shall not be paid before the day that is six months plus one day after the date of "separation from service" (as determined under Section 409A of the Code) (the "**New Payment Date**"), except as Section 409A of the Code may then permit. The aggregate of any payments that otherwise would have been paid to the Participant during the period between the date of separation from service and the New Payment Date shall be paid to the Participant in a lump sum on such New Payment Date, and any remaining payments will be paid on their original schedule.

The Company makes no representations or warranty and shall have no liability to the Participant or any other person if any provisions of or payments, compensation or other benefits under the Plan are determined to constitute nonqualified deferred compensation subject to Section 409A of the Code but do not t o satisfy the conditions of that section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Liability</u>. Notwithstanding any other provisions of the Plan, no individual acting as a director, officer, other employee, or agent of the Company will be liable to any Participant, former Participant, spouse, beneficiary, or any other person for any claim, loss, liability, or expense incurred in connection with the Plan, nor will such individual be personally liable with respect to the Plan because of any contract or other instrument such individual executes in such individual's capacity as a director, officer, other employee, or agent of the Company. The Company will indemnify and hold harmless each director, officer, other employee, or agent of the Company to whom any duty or power relating to the administration or interpretation of the Plan has been or will be delegated, against any cost or expense (including attorneys' fees) or liability (including any sum paid in settlement of a claim with the Board's approval) arising out of any act or omission to act concerning the Plan unless arising out of such person's own fraud or bad faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance with the laws of the State of Delaware, excluding choice-of-law principles of the law of such state that would require the application of the laws of a jurisdiction other than the State of Delaware.

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## Exhibit 10.2

**Exhibit 10.2**

**FERVO ENERGY COMPANY**<br>**2026 INCENTIVE AWARD PLAN**<br>

**ARTICLE I.**

**PURPOSE**

The Plan's purpose is to enhance the Company's ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing these individuals with equity ownership opportunities and/or equity-linked compensatory opportunities. Capitalized terms used in the Plan are defined in Article XI.

**ARTICLE II.**

**ELIGIBILITY**

Service Providers are eligible to be granted Awards under the Plan, subject to the limitations described herein.

**ARTICLE III.**

**ADMINISTRATION AND DELEGATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Administration</u>. The Plan is administered by the Administrator. The Administrator has authority to determine which Service Providers receive Awards, grant Awards and set Award terms and conditions, subject to the conditions and limitations in the Plan. The Administrator also has the authority to take all actions and make all determinations under the Plan, to interpret the Plan and Award Agreements and to adopt, amend and repeal Plan administrative rules, guidelines and practices as it deems advisable. The Administrator may correct defects and ambiguities, supply omissions and reconcile inconsistencies in the Plan or any Award Agreement as it deems necessary or appropriate to administer the Plan and any Awards. The Administrator's determinations under the Plan are in its sole discretion and will be final and binding on all persons having or claiming any interest in the Plan or any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Appointment of Committees</u>. To the extent Applicable Laws permit, the Board or the Administrator may delegate any or all of its powers under the Plan to one or more Committees or committees of officers of the Company or any of its Subsidiaries. The Board or the Administrator, as applicable, may rescind any such delegation, abolish any such committee or Committee and/or re-vest in itself any previously delegated authority at any time.

**ARTICLE IV.**

**STOCK AVAILABLE FOR AWARDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Shares</u>. Subject to adjustment under Article VIII and the terms of this Article IV, the maximum number of Shares that may be issued pursuant to Awards under the Plan shall be equal to the Overall Share Limit. As of the Effective Date, the Company will cease granting awards under the Prior Plan; however, the Prior Plan Awards will remain subject to the terms of the Prior Plan. Shares issued under the Plan may consist of authorized but unissued Shares, Shares purchased on the open market or treasury Shares. Shares issued under the Plan may be shares of Class A Common Stock or shares of Class B Common Stock, as determined by the Administrator in its sole discretion and to the extent such class of Common Stock exists from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Share Recycling</u>. If all or any part of an Award or a Prior Plan Award expires, lapses or is terminated, exchanged for or settled in cash, surrendered, repurchased, canceled without having been fully exercised or forfeited, in any case, in a manner that results in the Company acquiring Shares covered by the Award or Prior Plan Award at a price not greater than the price (as adjusted to reflect any Equity Restructuring) paid by the Participant for such Shares or not issuing any Shares covered by the Award or Prior Plan Award, the unused Shares covered by the Award or Prior Plan Award will, as applicable, become or again be available for Award grants under the Plan. Further, Shares delivered (either by actual delivery or attestation) to the Company by a Participant to satisfy the applicable exercise or purchase price of an Award or Prior Plan Award and/or to satisfy any applicable tax withholding obligation with respect to an Award or Prior Plan Award (including Shares retained by the Company from the Award or Prior Plan Award being exercised or purchased and/or creating the tax obligation) will, as applicable, become or again be available for Award grants under the Plan. The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards shall not count against the Overall Share Limit. Notwithstanding anything to the contrary contained herein, the following Shares shall not be added to the Shares authorized for grant under Section 4.1 and shall not be available for future grants of Awards: (a) Shares subject to a Stock Appreciation Right that are not issued in connection with the stock settlement of the Stock Appreciation Right on exercise thereof; and (b) Shares purchased on the open market with the cash proceeds from the exercise of Options. Further, notwithstanding anything to the contrary contained herein, no Shares shall again be available for future grants of Awards under the Plan pursuant to this Article IV to the extent that such return of Shares would cause the Plan to be a "formula" plan or constitute a "material revision" or "material amendment" subject to stockholder approval under the requirements of the established stock exchange on which the Company's securities are traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Incentive Stock Option Limitations</u>. Notwithstanding anything to the contrary herein, no more than 500,000,000 Shares may be issued pursuant to the exercise of Incentive Stock Options (any or all of which may be granted with respect to Shares of Class A Common Stock and/or Shares of Class B Common Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Substitute Awards</u>. In connection with an entity's merger or consolidation with the Company or the Company's acquisition of an entity's property or stock, the Administrator may grant Awards in substitution for any options or other stock or stock-based awards granted before such merger or consolidation by such entity or its affiliate. Substitute Awards may be granted on such terms as the Administrator deems appropriate, notwithstanding limitations on Awards in the Plan. Substitute Awards will not count against the Overall Share Limit (nor shall Shares subject to a Substitute Award be added to the Shares available for Awards under the Plan as provided above), except that Shares acquired by exercise of substitute Incentive Stock Options will count against the maximum number of Shares that may be issued pursuant to the exercise of Incentive Stock Options under the Plan. Additionally, in the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan (and Shares subject to such Awards shall not be added to the Shares available for Awards under the Plan as provided above); provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees, Consultants or Directors prior to such acquisition or combination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Employee Director Compensation</u>. Notwithstanding any provision to the contrary in the Plan, the Administrator may establish compensation for non-employee Directors from time to time, subject to the limitations in the Plan. The Administrator will from time to time determine the terms, conditions and amounts of all such non-employee Director compensation in its discretion and pursuant to the exercise of its business judgment, taking into account such factors, circumstances and considerations as it shall deem relevant from time to time, provided that, commencing with the calendar year following the calendar year in which the Effective Date occurs, the sum of any cash compensation, or other compensation, and the value (determined as of the grant date in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, or any successor thereto) of Awards granted to a non-employee Director as compensation for services as a non-employee Director with respect to any fiscal year of the Company may not exceed $750,000 (increased to $1,000,000 in a non-employee Director's initial calendar year of service as a non-employee Director or any calendar year during which a non-employee Director serves as chair of the Board or lead independent Director), which limits shall not apply to the compensation for any non-employee Director of the Company who serves in any capacity in addition to that of a non-employee Director for which he or she receives additional compensation. The Administrator may make exceptions to this limit for individual non-employee Directors in extraordinary circumstances, as the Administrator may determine in its discretion, provided that the non-employee Director receiving such additional compensation may not participate in the decision to award such compensation or in other contemporaneous compensation decisions involving non-employee Directors.

**ARTICLE V.**

**STOCK OPTIONS AND STOCK APPRECIATION RIGHTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The Administrator may grant Options or Stock Appreciation Rights to Service Providers subject to the limitations in the Plan, including any limitations in the Plan that apply to Incentive Stock Options. A Stock Appreciation Right will entitle the Participant (or other person entitled to exercise the Stock Appreciation Right) to receive from the Company upon exercise of the exercisable portion of the Stock Appreciation Right an amount determined by multiplying the excess, if any, of the Fair Market Value of one Share on the date of exercise over the exercise price per Share of the Stock Appreciation Right by the number of Shares with respect to which the Stock Appreciation Right is exercised. Such amount shall be subject to any limitations of the Plan or that the Administrator may impose and payable in cash, Shares valued at Fair Market Value or a combination of the two as the Administrator may determine or provide in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise Price</u>. The Administrator will establish each Option's and Stock Appreciation Right's exercise price and specify the exercise price in the Award Agreement. The exercise price will not be less than 100% of the Fair Market Value on the grant date of the Option (subject to Section 5.6) or Stock Appreciation Right. Notwithstanding the foregoing, in the case of an Option or a Stock Appreciation Right that is a Substitute Award, the exercise price per share of the Shares subject to such Option or Stock Appreciation Right, as applicable, may be less than the Fair Market Value per share on the date of grant; provided that the exercise price of any Substitute Award shall be determined in accordance with the applicable requirements of Sections 424 and 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Duration</u>. Each Option or Stock Appreciation Right will be exercisable at such times and as specified in the Award Agreement, provided that, subject to Section 5.6, the term of an Option or Stock Appreciation Right will not exceed ten years. Notwithstanding the foregoing and unless determined otherwise by the Company, in the event that on the last business day of the term of an Option or Stock Appreciation Right (other than an Incentive Stock Option) (i) the exercise of the Option or Stock Appreciation Right is prohibited by Applicable Law, as determined by the Company, or (ii) Shares may

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not be purchased or sold by the applicable Participant due to any Company insider trading policy (including blackout periods) or a "lock-up" agreement undertaken in connection with an issuance of securities by the Company, the term of the Option or Stock Appreciation Right shall be extended until the date that is 30 days after the end of the legal prohibition, black-out period or lock-up agreement, as determined by the Company; <u>provided</u>, <u>however</u>, in no event shall the extension last beyond the ten-year term of the applicable Option or Stock Appreciation Right. Notwithstanding the foregoing, to the extent permitted under Applicable Laws, if the Participant, prior to the end of the term of an Option or Stock Appreciation Right, violates the non-competition, non-solicitation, confidentiality or other similar restrictive covenant provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company or any of its Subsidiaries, the right of the Participant and the Participant's transferees to exercise any Option or Stock Appreciation Right issued to the Participant shall terminate immediately upon such violation, unless the Company otherwise determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise</u>. Options and Stock Appreciation Rights may be exercised by delivering to the Company a written notice of exercise, in a form the Administrator approves (which may be electronic), signed by the person authorized to exercise the Option or Stock Appreciation Right, together with, as applicable, payment in full (i) as specified in Section 5.5 for the number of Shares for which the Award is exercised and (ii) as specified in Section 9.5 for any applicable taxes. Unless the Administrator otherwise determines, an Option or Stock Appreciation Right may not be exercised for a fraction of a Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment Upon Exercise</u>. Subject to Sections 9.10 and 10.8, any Company insider trading policy (including blackout periods) and Applicable Laws, the exercise price of an Option must be paid 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;(a)&nbsp;&nbsp;&nbsp;&nbsp;cash, wire transfer of immediately available funds or by check payable to the order of the Company, provided that the Company may limit the use of one of the foregoing payment forms if one or more of the payment forms below is permitted;

&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)&nbsp;&nbsp;&nbsp;&nbsp;if there is a public market for Shares at the time of exercise, unless the Company otherwise determines, (i) delivery (including electronically or telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the Company to deliver promptly to the Company sufficient funds to pay the exercise price, or (ii) the Participant's delivery to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company cash or a check sufficient to pay the exercise price; provided that such amount is paid to the Company at such time as may be required 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;(c)&nbsp;&nbsp;&nbsp;&nbsp;to the extent permitted by the Administrator, delivery (either by actual delivery or attestation) of Shares owned by the Participant valued at their 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;(d)&nbsp;&nbsp;&nbsp;&nbsp;to the extent permitted by the Administrator, surrendering Shares then issuable upon the Option's exercise valued at their Fair Market Value on the exercise 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;to the extent permitted by the Administrator, delivery of a promissory note or any other property that the Administrator determines is good and valuable consideration to the extent permitted by applicable law; 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;(f)&nbsp;&nbsp;&nbsp;&nbsp;to the extent permitted by the Company, any combination of the above payment forms approved by the Administrator.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Terms of Incentive Stock Options</u>. The Administrator may grant Incentive Stock Options only to employees of the Company, any of its present or future parent or subsidiary corporations, as defined in Sections 424(e) or (f) of the Code, respectively, and any other entities the employees of which are eligible to receive Incentive Stock Options under the Code. If an Incentive Stock Option is granted to a Greater Than 10% Stockholder, the exercise price will not be less than 110% of the Fair Market Value on the Option's grant date, and the term of the Option will not exceed five years. All Incentive Stock Options will be subject to and construed consistently with Section 422 of the Code. By accepting an Incentive Stock Option, the Participant agrees to give prompt notice to the Company of dispositions or other transfers (other than in connection with a Change in Control) of Shares acquired under the Option made within (i) two years from the grant date of the Option or (ii) one year after the transfer of such Shares to the Participant, specifying the date of the disposition or other transfer and the amount the Participant realized, in cash, other property, assumption of indebtedness or other consideration, in such disposition or other transfer. Neither the Company nor the Administrator will be liable to a Participant, or any other party, if an Incentive Stock Option fails or ceases to qualify as an "incentive stock option" under Section 422 of the Code. Any Incentive Stock Option or portion thereof that fails to qualify as an "incentive stock option" under Section 422 of the Code for any reason, including becoming exercisable with respect to Shares having a fair market value exceeding the $100,000 limitation under Treasury Regulation Section 1.422-4, will be a Non-Qualified Stock Option.

**ARTICLE VI.**

**RESTRICTED STOCK; RESTRICTED STOCK UNITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The Administrator may grant Restricted Stock, or the right to purchase Restricted Stock, to any Service Provider, subject to the Company's right to repurchase all or part of such Shares at their issue price or other stated or formula price from the Participant (or to require forfeiture of such Shares) if conditions the Administrator specifies in the Award Agreement are not satisfied before the end of the applicable restriction period or periods that the Administrator establishes for such Award. In addition, the Administrator may grant to Service Providers Restricted Stock Units, which may be subject to vesting and forfeiture conditions during the applicable restriction period or periods, as set forth in an Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Stock</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividends</u>. Subject to the terms of this Section 6.2(a), Participants holding Shares of Restricted Stock will be entitled to all ordinary cash dividends paid with respect to such Shares, unless the Administrator provides otherwise in the Award Agreement. In addition, unless the Administrator provides otherwise, if any dividends or distributions are paid in Shares, or consist of a dividend or distribution to holders of Common Stock of property other than an ordinary cash dividend, the Shares or other property will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. Notwithstanding anything to the contrary herein, with respect to any award of Restricted Stock, dividends which are paid to holders of Common Stock prior to vesting shall only be paid out to a Participant holding such Restricted Stock to the extent that the vesting conditions are subsequently satisfied. All such dividend payments will be made no later than March 15 of the calendar year following the calendar year in which the right to the dividend payment becomes nonforfeitable.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Certificates</u>. The Company may require that the Participant deposit in escrow with the Company (or its designee) any stock certificates issued in respect of Shares of Restricted Stock, together with a stock power endorsed in blank.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Stock Units.</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Settlement</u>. The Administrator may provide that settlement of Restricted Stock Units will occur upon or as soon as reasonably practicable after the Restricted Stock Units vest or will instead be deferred, on a mandatory basis or at the Participant's election, in a manner intended to comply with Section 409A.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Stockholder Rights</u>. A Participant will have no rights of a stockholder with respect to Shares subject to any Restricted Stock Unit unless and until the Shares are delivered in settlement of the Restricted Stock Unit.

**ARTICLE VII.**

**OTHER STOCK OR CASH BASED AWARDS; DIVIDEND EQUIVALENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Stock or Cash Based Awards</u>. Other Stock or Cash Based Awards may be granted to Participants, including Awards entitling Participants to receive Shares to be delivered in the future and including annual or other periodic or long-term cash bonus awards (whether based on specified Performance Criteria or otherwise), in each case subject to any conditions and limitations in the Plan. Such Other Stock or Cash Based Awards will also be available as a payment form in the settlement of other Awards, as standalone payments and as payment in lieu of compensation to which a Participant is otherwise entitled. Other Stock or Cash Based Awards may be paid in Shares, cash or other property, as the Administrator determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Dividend Equivalents</u>. A grant of Restricted Stock Units or Other Stock or Cash Based Award may provide a Participant with the right to receive Dividend Equivalents, and no Dividend Equivalents shall be payable with respect to Options or Stock Appreciation Rights. Dividend Equivalents may be paid currently or credited to an account for the Participant, settled in cash or Shares and subject to the same restrictions on transferability and forfeitability as the Award with respect to which the Dividend Equivalents are paid and subject to other terms and conditions as set forth in the Award Agreement. Notwithstanding anything to the contrary herein, Dividend Equivalents with respect to an Award shall only be paid out to a Participant to the extent that the vesting conditions are subsequently satisfied. All such Dividend Equivalent payments will be made no later than March 15 of the calendar year following the calendar year in which the right to the Dividend Equivalent payment becomes nonforfeitable, unless determined otherwise by the Administrator or unless deferred in a manner intended to comply with Section 409A.

**ARTICLE VIII.**

**ADJUSTMENTS FOR CHANGES IN COMMON STOCK**

**AND CERTAIN OTHER EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Equity Restructuring</u>. In connection with any Equity Restructuring, notwithstanding anything to the contrary in this Article VIII, the Administrator will equitably adjust each outstanding Award as it deems appropriate to reflect the Equity Restructuring, which may include (if applicable) adjusting the number and type of securities subject to each outstanding Award (including to ensure the percentage of the outstanding equity represented by each Award remains unchanged), adjusting the Award's exercise price, grant price and/or applicable performance goals, granting new Awards to Participants, and/or making a cash payment to Participants. The adjustments provided under this Section 8.1 will be nondiscretionary and final and binding on the affected Participant and the Company; provided that the Administrator will determine in good faith whether an adjustment is equitable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Corporate Transactions</u>. In the event of any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), reorganization, merger, consolidation, combination, amalgamation, repurchase, recapitalization, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or sale or exchange of Common Stock or other securities of the Company, Change in Control, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, other similar corporate transaction or event, other unusual or nonrecurring transaction or event affecting the Company or its financial statements or any change in any Applicable Laws or accounting principles, the Administrator, on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken in connection with the occurrence of such transaction or event (any action to give effect to a change in Applicable Law or accounting principles may be made within a reasonable period of time after such change), is hereby authorized to take any one or more of the following actions whenever the Administrator determines in good faith that such action is appropriate in order to (x) prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Award granted or issued under the Plan, (y) to facilitate such transaction or event or (z) give effect to such changes in Applicable Laws or accounting principles:

&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)&nbsp;&nbsp;&nbsp;&nbsp;To provide for the cancellation of any such Award in exchange for either an amount of cash or other property with a value equal to the amount that could have been obtained upon the exercise or settlement of the vested portion of such Award or realization of the Participant's rights under the vested portion of such Award, as applicable; provided that, if the amount that could have been obtained upon the exercise or settlement of the vested portion of such Award or realization of the Participant's rights, in any case, is equal to or less than zero, then the Award may be terminated without payment; provided, further, that Awards held by members of the Board will be deemed settled in Shares on or immediately prior to the applicable event if the Administrator takes action under this clause (a);

&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)&nbsp;&nbsp;&nbsp;&nbsp;To provide that such Award shall vest and, to the extent applicable, be exercisable as to all Shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions of such 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;(c)&nbsp;&nbsp;&nbsp;&nbsp;To provide that such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, or equivalent value thereof in cash, with appropriate adjustments as to the number and kind of shares and/or applicable exercise or purchase price, in all cases, as determined by the Administrator in good faith;

&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)&nbsp;&nbsp;&nbsp;&nbsp;To make adjustments in the number and type of Shares (or other securities or property) subject to outstanding Awards and/or with respect to which Awards may be granted under the Plan (including, but not limited to, adjustments of the limitations in Article IV on the maximum number and kind of shares which may be issued) and/or in the terms and conditions of (including the grant or exercise price or applicable performance goals), and the criteria included in, outstanding 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;To replace such Award with other rights or property selected by the Administrator; and/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;(f)&nbsp;&nbsp;&nbsp;&nbsp;To provide that the Award will terminate and cannot vest, be exercised or become payable after the applicable event.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of a Change in Control</u>. Notwithstanding the provisions of Section 8.2, if a Change in Control occurs and a Participant's Awards are not continued, converted, assumed, or replaced with a substantially similar award by (a) the Company, or (b) a successor entity or its parent or subsidiary (an "***Assumption***" or "***Assumed***"), and provided that the Participant has not had a Termination of Service, then, immediately prior to the Change in Control, such Awards shall become fully vested, exercisable and/or payable, as applicable, and all forfeiture, repurchase and other restrictions on such Awards shall lapse, in which case, such Awards shall be canceled upon the consummation of the Change in Control in exchange for the right to receive the Change in Control consideration payable to other holders of Common Stock (i) which shall be on such terms and conditions as are no less favorable than those that apply generally to holders of Common Stock under the Change in Control documents (including, without limitation, any escrow, earn-out or other deferred consideration provisions) or such other terms and conditions as the Administrator may provide that are no less favorable than those generally applicable to holders of Common Stock, and (ii) determined by reference to the number of Shares subject to such Awards and net of any applicable exercise price; provided that to the extent that any Awards constitute "nonqualified deferred compensation" that may not be paid upon the Change in Control under Section 409A without the imposition of taxes thereon under Section 409A, the timing of such payments shall be governed by the applicable Award Agreement (subject to any deferred consideration provisions applicable under the Change in Control documents); and provided, further, that if the amount to which a Participant would be entitled upon the settlement or exercise of such Award at the time of the Change in Control is equal to or less than zero, then such Award may be terminated without payment. An Award will be considered replaced with a substantially similar award if the Award is exchanged for an amount of cash or other property with a value equal to the amount that could have been obtained upon the settlement of such Award in such Change in Control (as determined by the Administrator in good faith), even if such cash or other property payable with respect to the unvested portion of such Award remains subject to similar vesting provisions following such Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Administrative Stand Still</u>. In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other extraordinary transaction or change affecting the Shares or the share price of Common Stock, including any Equity Restructuring or any securities offering or other similar transaction, for administrative convenience, the Administrator may refuse to permit the exercise of any Award for up to 60 days before or after such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. Except as expressly provided in the Plan or the Administrator's action under the Plan, no Participant will have any rights due to any subdivision or consolidation of Shares of any class, dividend payment, increase or decrease in the number of Shares of any class or dissolution, liquidation, merger, or consolidation of the Company or other corporation. Except as expressly provided with respect to an Equity Restructuring under Section 8.1 or the Administrator's action under the Plan, no issuance by the Company of Shares of any class, or securities convertible into Shares of any class, will affect, and no adjustment will be made regarding, the number of Shares subject to an Award or the Award's grant or exercise price. The existence of the Plan, any Award Agreements and the Awards granted hereunder will not affect or restrict in any way the Company's right or power to make or authorize (i) any adjustment, recapitalization, reorganization or other change in the Company's capital structure or its business, (ii) any merger, consolidation, dissolution or liquidation of the Company or sale of Company assets or (iii) any sale or issuance of securities, including securities with rights superior to those of the Shares or securities convertible into or exchangeable for Shares. The Administrator may treat Participants and Awards (or portions thereof) differently under this Article VIII.

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**ARTICLE IX.**

**GENERAL PROVISIONS APPLICABLE TO AWARDS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Transferability</u>. Except as the Administrator may determine or provide in an Award Agreement or otherwise for Awards other than Incentive Stock Options, Awards may not be sold, assigned, transferred, pledged or otherwise encumbered, either voluntarily or by operation of law, except for certain Designated Beneficiary designations, by will or the laws of descent and distribution, or, subject to the Administrator's consent, pursuant to a domestic relations order, and, during the life of the Participant, will be exercisable only by the Participant. Any permitted transfer of an Award hereunder shall be without consideration, except as required by Applicable Law. References to a Participant, to the extent relevant in the context, will include references to a Participant's authorized transferee that the Administrator specifically approves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Documentation</u>. Each Award will be evidenced in an Award Agreement, which may be written or electronic, as the Administrator determines. Each Award may contain terms and conditions in addition to those set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Discretion</u>. Except as the Plan otherwise provides, each Award may be made alone or in addition or in relation to any other Award. The terms of each Award to a Participant need not be identical, and the Administrator need not treat Participants or Awards (or portions thereof) uniformly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Status</u>. The Administrator will determine how the disability, death, retirement, an authorized leave of absence or any other change or purported change in a Participant's Service Provider status affects an Award and the extent to which, and the period during which, the Participant, the Participant's legal representative, conservator, guardian or Designated Beneficiary may exercise rights under the Award, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. Each Participant must pay the Company or a Subsidiary, or make provision satisfactory to the Administrator for payment of, any taxes required by Applicable Law to be withheld in connection with such Participant's Awards by the date of the event creating the tax liability. The Company or any Subsidiary may deduct an amount sufficient to satisfy any taxes required by Applicable Law to be withheld in connection with a Participant's Awards and to satisfy such tax obligations based on the applicable statutory withholding rates (or such other rate as may be determined by the Company or a Subsidiary after considering any accounting consequences or costs) from any payment of any kind otherwise due to a Participant. In the absence of a contrary determination by the Company or a Subsidiary (or, with respect to withholding pursuant to clause (ii) below with respect to Awards held by individuals subject to Section 16 of the Exchange Act, a contrary determination by the Administrator), all tax withholding obligations will be calculated based on the minimum applicable statutory withholding rates. Subject to Section 10.8 and any Company insider trading policy (including blackout periods), Participants may satisfy such tax obligations (i) in cash, by wire transfer of immediately available funds, by check made payable to the order of the Company, provided that the Company may limit the use of the foregoing payment forms if one or more of the payment forms below is permitted, (ii) to the extent permitted by the Administrator, in whole or in part by delivery of Shares, including Shares delivered by attestation and Shares retained from the Award creating the tax obligation, valued at their fair market value on the date of delivery, (iii) subject to Section 9.10, if there is a public market for Shares at the time the tax obligations are satisfied, unless the Company otherwise determines, (A) delivery (including electronically or telephonically to the extent permitted by the Company) of an irrevocable and unconditional undertaking by a broker acceptable to the Company to deliver promptly to the Company sufficient funds to satisfy the tax obligations, or (B) delivery by the Participant to the Company of a copy

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of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company cash or a check sufficient to satisfy the tax withholding; provided that such amount is paid to the Company at such time as may be required by the Administrator, or (iv) to the extent permitted by the Company, any combination of the foregoing payment forms approved by the Administrator. Notwithstanding any other provision of the Plan, the number of Shares which may be so delivered or retained pursuant to clause (ii) of the immediately preceding sentence shall be limited to the number of Shares which have a fair market value on the date of delivery or retention no greater than the aggregate amount of such liabilities based on the maximum individual statutory withholding rate in the applicable jurisdiction at the time of such withholding (or such other rate as may be required to avoid the liability classification of the applicable Award under generally accepted accounting principles in the United States of America). Subject to Section 9.10, if any tax withholding obligation will be satisfied under clause (ii) above by the Company's retention of Shares from the Award creating the tax obligation and there is a public market for Shares at the time the tax obligation is satisfied, the Company may elect to instruct any brokerage firm determined acceptable to the Company for such purpose to sell on the applicable Participant's behalf some or all of the Shares retained and to remit the proceeds of the sale to the Company or its designee, and each Participant's acceptance of an Award under the Plan will constitute the Participant's authorization to the Company and instruction and authorization to such brokerage firm to complete the transactions described in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment of Award; Repricing</u>. The Administrator may amend, modify or terminate any outstanding Award, including by substituting another Award of the same or a different type, changing the exercise or settlement date, and converting an Incentive Stock Option to a Non-Qualified Stock Option. The Participant's consent to such action will be required unless (i) the action, taking into account any related action, does not materially and adversely affect the Participant's rights under the Award, or (ii) the change is permitted under Article VIII or pursuant to Section 10.6. Notwithstanding the foregoing or anything in the Plan to the contrary, the Administrator may, without the approval of the stockholders of the Company, reduce the exercise price per share of outstanding Options or Stock Appreciation Rights or cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation Rights with an exercise price per share that is less than the exercise price per share of the original Options or Stock Appreciation Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions on Delivery of Stock</u>. The Company will not be obligated to deliver any Shares under the Plan or remove restrictions from Shares previously delivered under the Plan until (i) all Award conditions have been met or removed, (ii) as determined by the Company, all other legal matters regarding the issuance and delivery of such Shares have been satisfied, including any applicable securities laws and stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements as the Administrator reasonably deems necessary or appropriate to satisfy any Applicable Laws. The Company's inability to obtain authority from any regulatory body having jurisdiction, which the Administrator determines is necessary to the lawful issuance and sale of any securities, will relieve the Company of any liability for failing to issue or sell such Shares as to which such requisite authority has not been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Acceleration</u>. The Administrator may at any time provide that any Award will become immediately vested and fully or partially exercisable, free of some or all restrictions or conditions, or otherwise fully or partially realizable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Settlement</u>. Without limiting the generality of any other provision of the Plan, the Administrator may provide, in an Award Agreement or subsequent to the grant of an Award, in its discretion, that any Award may be settled in cash, Shares or a combination thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Broker-Assisted Sales</u>. In the event of a broker-assisted sale of Shares in connection with the payment of amounts owed by a Participant under or with respect to the Plan or Awards, including amounts to be paid under the final sentence of Section 9.5: (a) any Shares to be sold through the broker-assisted sale will be sold on the day the payment first becomes due, or as soon thereafter as practicable; (b) such Shares may be sold as part of a block trade with other Participants in the Plan in which all Participants receive an average price; (c) the applicable Participant will be responsible for all broker's fees and other costs of sale, and by accepting an Award, each Participant agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale; (d) to the extent the Company or its designee receives proceeds of such sale that exceed the amount owed, the Company will pay such excess in cash to the applicable Participant as soon as reasonably practicable; (e) the Company and its designees are under no obligation to arrange for such sale at any particular price; and (f) in the event the proceeds of such sale are insufficient to satisfy the Participant's applicable obligation, the Participant may be required to pay immediately upon demand to the Company or its designee an amount in cash sufficient to satisfy any remaining portion of the Participant's obligation.

**ARTICLE X.**

**MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>No Right to Employment or Other Status</u>. No person will have any claim or right to be granted an Award, and the grant of an Award will not be construed as giving a Participant the right to continued employment or any other relationship with the Company or any of its Subsidiaries. The Company and its Subsidiaries expressly reserve the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan or any Award, except as expressly provided in an Award Agreement or in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>No Rights as Stockholder; Certificates</u>. Subject to the Award Agreement, no Participant or Designated Beneficiary will have any rights as a stockholder with respect to any Shares to be distributed under an Award until becoming the record holder of such Shares. Notwithstanding any other provision of the Plan, unless the Administrator otherwise determines or Applicable Laws require, the Company will not be required to deliver to any Participant certificates evidencing Shares issued in connection with any Award and instead such Shares may be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator). The Company may place legends on stock certificates issued under the Plan that the Administrator deems necessary or appropriate to comply with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Effective Date and Term of Plan</u>. Unless earlier terminated by the Board, the Plan will become effective on the Effective Date and will remain in effect until terminated by the Administrator in accordance with the Plan. Notwithstanding anything to the contrary in the Plan, an Incentive Stock Option may not be granted under the Plan after 10 years from the earlier of (i) the date the Board adopted the Plan or (ii) the date the Company's stockholders approved the Plan. Notwithstanding anything to the contrary contained herein, if the Plan is not approved by the Company's stockholders, the Plan will not become effective and no Awards will be granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment of Plan</u>. The Administrator may amend, suspend or terminate the Plan at any time; provided that no amendment to the Plan, other than an increase to the Overall Share Limit, may materially and adversely affect any Award outstanding at the time of such amendment without the affected Participant's consent. No Awards may be granted under the Plan during any suspension period or after the Plan's termination. Awards outstanding at the time of any Plan suspension or termination will continue to be governed by the Plan and the Award Agreement, as in effect before such suspension or

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termination. The Board will obtain stockholder approval of any Plan amendment to the extent necessary to comply with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Provisions for Foreign Participants</u>. The Administrator may modify Awards granted to Participants who are foreign nationals or employed outside the United States or establish subplans or procedures under the Plan to address differences in laws, rules, regulations or customs of such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 409A</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The Company intends that all Awards be structured to comply with, or be exempt from, Section 409A, such that no adverse tax consequences, interest, or penalties under Section 409A apply. Notwithstanding anything in the Plan or any Award Agreement to the contrary, the Administrator may, without a Participant's consent, amend this Plan or Awards, adopt policies and procedures, or take any other actions (including amendments, policies, procedures and retroactive actions) as are necessary or appropriate to preserve the intended tax treatment of Awards, including any such actions intended to (A) exempt this Plan or any Award from Section 409A, or (B) comply with Section 409A, including regulations, guidance, compliance programs and other interpretative authority that may be issued after an Award's grant date. The Company makes no representations or warranties as to an Award's tax treatment under Section 409A or otherwise. The Company will have no obligation under this Section 10.6 or otherwise to avoid the taxes, penalties or interest under Section 409A with respect to any Award and will have no liability to any Participant or any other person if any Award, compensation or other benefits under the Plan are determined to constitute noncompliant "nonqualified deferred compensation" subject to taxes, penalties or interest under Section 409A.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Separation from Service</u>. If an Award constitutes "nonqualified deferred compensation" under Section 409A, any payment or settlement of such Award upon a termination of a Participant's Service Provider relationship will, to the extent necessary to avoid taxes under Section 409A, be made only upon the Participant's "separation from service" (within the meaning of Section 409A), whether such "separation from service" occurs upon or after the termination of the Participant's Service Provider relationship. For purposes of this Plan or any Award Agreement relating to any such payments or benefits, references to a "termination," "termination of employment" or like terms means a "separation from service." Furthermore, notwithstanding any contrary provision of the Plan or any Award Agreement, any payment of "nonqualified deferred compensation" under the Plan that may be made in installments shall be treated as a right to receive a series of separate and distinct 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;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments to Specified Employees</u>. Notwithstanding any contrary provision in the Plan or any Award Agreement, any payment(s) of "nonqualified deferred compensation" required to be made under an Award to a "specified employee" (as defined under Section 409A and as the Administrator determines) due to his or her "separation from service" will, to the extent necessary to avoid taxes under Section 409A(a)(2)(B)(i) of the Code, be delayed for the six-month period immediately following such "separation from service" (or, if earlier, until the specified employee's death) and will instead be paid (as set forth in the Award Agreement) on the day immediately following such six-month period or as soon as administratively practicable thereafter (without interest). Any payments of "nonqualified deferred compensation" under such Award payable more than six months following the Participant's "separation from service" will be paid at the time or times the payments are otherwise scheduled to be made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitations on Liability</u>. Notwithstanding any other provisions of the Plan, and to the fullest extent permitted by Applicable Laws and the Company's certificate of incorporation and bylaws, (a) no individual acting as a director, officer, other employee or agent of the Company or a Subsidiary will be liable to any Participant, former Participant, spouse, beneficiary, or any other person for any claim, loss, liability, or expense incurred in connection with the Plan or any Award, and such individual will not be personally liable with respect to the Plan because of any contract or other instrument executed in his or her capacity as an Administrator, director, officer, other employee or agent of the Company or any Subsidiary and (b) the Company will indemnify and hold harmless each director, officer, other employee and agent of the Company or any Subsidiary that has been or will be granted or delegated any duty or power relating to the Plan's administration or interpretation, against any cost or expense (including attorneys' fees) or liability (including any sum paid in settlement of a claim with the Administrator's approval) arising from any act or omission concerning this Plan unless arising from such person's own fraud or bad faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Lock-Up Period</u>. The Company may, at the request of any underwriter representative or otherwise, in connection with registering the offering of any Company securities under the Securities Act, prohibit Participants from, directly or indirectly, selling or otherwise transferring any Shares or other Company securities during a period of up to 180 days following the effective date of a Company registration statement filed under the Securities Act, or such longer period as determined by the underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Data Privacy</u>. As a condition for receiving any Award, each Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data as described in this section by and among the Company and its Subsidiaries and affiliates exclusively for implementing, administering and managing the Participant's participation in the Plan. The Company and its Subsidiaries and affiliates may hold certain personal information about a Participant, including the Participant's name, address and telephone number; birthdate; social security, insurance number or other identification number; salary; nationality; job title(s); any Shares held in the Company or its Subsidiaries and affiliates; and Award details, to implement, manage and administer the Plan and Awards (the "***Data***"). The Company and its Subsidiaries and affiliates may transfer the Data amongst themselves as necessary to implement, administer and manage a Participant's participation in the Plan, and the Company and its Subsidiaries and affiliates may transfer the Data to third parties assisting the Company with the Plan implementation, administration and management. These recipients may be located in the Participant's country, or elsewhere, and the Participant's country may have different data privacy laws and protections than the recipients' country. By accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the Participant's participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the Participant may elect to deposit any Shares. The Data related to a Participant will be held only as long as necessary to implement, administer, and manage the Participant's participation in the Plan. A Participant may, at any time, view the Data that the Company holds regarding such Participant, request additional information about the storage and processing of the Data regarding such Participant, recommend any necessary corrections to the Data regarding the Participant or refuse or withdraw the consents in this Section 10.9 in writing, without cost, by contacting the local human resources representative. If the Participant refuses or withdraws the consents in this Section 10.9, the Company may cancel Participant's ability to participate in the Plan and, in the Administrator's discretion, the Participant may forfeit any outstanding Awards. For more information on the consequences of refusing or withdrawing consent, Participants may contact their local human resources representative.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any portion of the Plan or any action taken under it is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provisions had been excluded, and the illegal or invalid action will be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Documents</u>. If any contradiction occurs between the Plan and any Award Agreement or other written agreement between a Participant and the Company (or any Subsidiary) that the Administrator has approved, the Plan will govern, unless it is expressly specified in such Award Agreement or other written document that a specific provision of the Plan will not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. The Plan and all Awards will be governed by and interpreted in accordance with the laws of the State of Delaware, disregarding any state's choice-of-law principles requiring the application of a jurisdiction's laws other than the State of Delaware. In addition, the Awards granted and Shares issuable and issued pursuant to this Plan are subject to Section V.4 of the Amended Charter regarding the conversion of shares of Class B Common Stock to Class A Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Clawback Provisions</u>. All Awards (including, without limitation, any proceeds, gains or other economic benefit actually or constructively received by a Participant upon any receipt or exercise of any Award or upon the receipt or sale of any Shares underlying the Award) shall be subject to the provisions of any clawback policy implemented by the Company, including, without limitation, the Company's Policy for Recovery of Erroneously Awarded Compensation and any other clawback policy adopted to comply with Applicable Laws, as and to the extent set forth in such clawback policy or the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Titles and Headings</u>. The titles and headings in the Plan are for convenience of reference only and, if there is any conflict, the Plan's text, rather than such titles or headings, will control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Conformity to Laws</u>. Each Participant acknowledges that the Plan is intended to conform to the extent necessary with Applicable Laws. Notwithstanding anything herein to the contrary, the Plan and all Awards will be administered only in conformance with Applicable Laws. To the extent Applicable Laws permit, the Plan and all Award Agreements will be deemed amended as necessary to conform to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Relationship to Other Benefits</u>. No payment under the Plan will be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except as expressly provided in writing in such other plan or an agreement thereunder.

**ARTICLE XI.**

**DEFINITIONS** 

As used in the Plan, the following words and phrases will have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1&nbsp;&nbsp;&nbsp;&nbsp;"***Administrator***" means the Board or a Committee to the extent that the Board's powers or authority under the Plan have been delegated to such Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;"***Amended Charter***" means the Amended and Restated Certificate of Incorporation of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3&nbsp;&nbsp;&nbsp;&nbsp;"***Applicable Laws***" means any applicable law, including without limitation: (a) provisions of the Code, the Securities Act, the Exchange Act and any rules or regulations thereunder; (b) corporate, securities, tax or other laws, statutes, rules, requirements or regulations, whether U.S. or non-U.S. federal, state or local; and (c) rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4&nbsp;&nbsp;&nbsp;&nbsp;"***Award***" means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Dividend Equivalents, or Other Stock or Cash Based Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5&nbsp;&nbsp;&nbsp;&nbsp;"***Award Agreement***" means a written agreement evidencing an Award, which may be electronic, that contains such terms and conditions as the Administrator determines, consistent with and subject to the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6&nbsp;&nbsp;&nbsp;&nbsp;"***Board***" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7&nbsp;&nbsp;&nbsp;&nbsp;"***Cause***" means, in respect of a Participant, either (a) the definition of "Cause" contained in the Participant's Award Agreement or, if such agreement does not define Cause, an effective, written service or employment agreement between the Participant and the Company or a Subsidiary of the Company; or (b) if no such agreement exists or such agreement does not define Cause, then Cause shall mean (i) the Participant's willful and material breach of a written agreement between the Participant and the Company or any of its Subsidiaries, including, without limitation, a willful and material breach of any employment, confidentiality, non-compete, non-solicit or similar agreement; (ii) the Participant's conviction of, indictment for or the entry of a plea of guilty or nolo contendere by the Participant to, a felony under the laws of the United States or any state thereof or any crime involving dishonesty or moral turpitude (or any similar crime in any jurisdiction outside the United States); (iii) the Participant's gross negligence or willful misconduct in the performance of the Participant's duties or the Participant's willful or repeated failure or refusal to substantially perform assigned duties; (iv) any act of fraud, embezzlement or material misappropriation committed by the Participant against the Company or any of its Subsidiaries; or (v) the Participant's intentional breach of any policies published by the Company which the Company determines to be materially detrimental or damaging to the reputation, operations, prospects or business relations of the Company or any of its Subsidiaries.

Notwithstanding the foregoing, in the case of clauses (i), (ii) and (iii) above, the Company shall have provided a written notice to the Participant setting forth in reasonable detail the facts and circumstances claimed by the Company to constitute Cause and the Participant shall have not reasonable cured such events within 30 days following its receipt of such notice. With respect to the foregoing definition, the term "Company" will be interpreted to include any Subsidiary or its parent, if appropriate.

No act or omission shall be "willful" unless taken or omitted to be taken without a good faith belief that such act or omission was for the benefit of the company or if such act or omission was based on advice of counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8&nbsp;&nbsp;&nbsp;&nbsp;"***Change in Control***" means and includes each of the following:

&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)&nbsp;&nbsp;&nbsp;&nbsp;A transaction or series of transactions (other than an offering of Common Stock to the general public through a registration statement filed with the Securities and Exchange Commission or a transaction or series of transactions that meets the requirements of clauses (i) and (ii) of subsection (c) below) whereby any "person" or related "group" of "persons" (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its Subsidiaries, an

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employee benefit plan maintained by the Company or any of its Subsidiaries or a "person" that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than 50% of the total combined voting power (meaning the aggregate voting power of securities entitled to vote generally in the election of directors, measure in accordance with the Amended Charter, including giving effect to the super-voting rights of the Class B Common Stock) of the Company's securities outstanding immediately after such acquisition; 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;During any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new Director(s) (other than a Director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in subsections (a) or (c)) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning of the two-year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; 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;(c)&nbsp;&nbsp;&nbsp;&nbsp;The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company's assets in any single transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;which results in the Company's voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company's assets or otherwise succeeds to the business of the Company (the Company or such person, the "***Successor Entity***")) directly or indirectly, at least a majority of the combined voting power of the Successor Entity's outstanding voting securities immediately after the transaction, 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; <u>provided</u>, <u>however</u>, that no person or group shall be treated for purposes of this clause (ii) as beneficially owning 50% or more of the combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction.

Notwithstanding the foregoing, if a Change in Control constitutes a payment event with respect to any Award (or portion of any Award) that provides for the deferral of compensation that is subject to Section 409A, to the extent required to avoid the imposition of additional taxes under Section 409A, the transaction or event described in subsection (a), (b) or (c) with respect to such Award (or portion thereof) shall only constitute a Change in Control for purposes of the payment timing of such Award (or portion thereof) if such transaction also constitutes a "change in control event," as defined in Treasury Regulation Section 1.409A-3(i)(5).

For the avoidance of doubt, any reclassification, conversion, or other change in, or of, the Company's capital structure, including any conversion of shares of Class B Common Stock into shares of Class A Common Stock (whether upon transfer, including transfers to permitted transferees such as immediate family members, certain trusts (including grantor retained annuity trusts) and entities

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exclusively owned by such holders or their immediate family members, or pursuant to any automatic conversion event, including any time-based "sunset" or other automatic conversion triggers), in each case pursuant to and in accordance with the Amended Charter shall not, in and of itself, constitute a Change of Control.

The Administrator shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided that any exercise of authority in conjunction with a determination of whether a Change in Control is a "change in control event" as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9&nbsp;&nbsp;&nbsp;&nbsp;"***Class A Common Stock***" means the Class A common stock of the Company, par value $0.0001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10&nbsp;&nbsp;&nbsp;&nbsp;"***Class B Common Stock***" means the Class B common stock of the Company, par value $0.0001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11&nbsp;&nbsp;&nbsp;&nbsp;"***Code***" means the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12&nbsp;&nbsp;&nbsp;&nbsp;"***Committee***" means one or more committees or subcommittees of the Board, which may include one or more Company directors or executive officers, to the extent Applicable Laws permit. To the extent required to comply with the provisions of Rule 16b-3, it is intended that each member of the Committee will be, at the time the Committee takes any action with respect to an Award that is subject to Rule 16b-3, a "non-employee director" within the meaning of Rule 16b-3; however, a Committee member's failure to qualify as a "non-employee director" within the meaning of Rule 16b-3 will not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13&nbsp;&nbsp;&nbsp;&nbsp;"***Common Stock***" means the Class A Common Stock or Class B Common Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.14&nbsp;&nbsp;&nbsp;&nbsp;"***Company***" means Fervo Energy Company, a Delaware corporation, or any successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.15&nbsp;&nbsp;&nbsp;&nbsp;"***Consultant***" means any consultant or advisor engaged by the Company or any of its Subsidiaries to render services to such entity, in each case that can be granted an Award that is eligible to be registered on a Form S-8 Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.16&nbsp;&nbsp;&nbsp;&nbsp;"***Designated Beneficiary***" means the beneficiary or beneficiaries the Participant designates, in a manner the Administrator determines, to receive amounts due or exercise the Participant's rights if the Participant dies or becomes incapacitated. Without a Participant's effective designation, "Designated Beneficiary" will mean the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.17&nbsp;&nbsp;&nbsp;&nbsp;"***Director***" means a Board member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.18&nbsp;&nbsp;&nbsp;&nbsp;"***Disability***" means a permanent and total disability under Section 22(e)(3) of the Code, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.19&nbsp;&nbsp;&nbsp;&nbsp;"***Dividend Equivalents***" means a right granted to a Participant under the Plan to receive the equivalent value (in cash or Shares) of dividends paid on Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.20&nbsp;&nbsp;&nbsp;&nbsp;"***Employee***" means any employee of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.21&nbsp;&nbsp;&nbsp;&nbsp;"***Effective Date***" means the day prior to the Public Trading Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.22&nbsp;&nbsp;&nbsp;&nbsp;"***Equity Restructuring***" means, as reasonably determined in good faith by the Administrator, a non-reciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off or recapitalization, or a large, nonrecurring cash dividend, that affects the shares of Common Stock (or other securities of the Company) or the share price of Common Stock (or other securities of the Company) and causes a change in the per share value of the Common Stock underlying outstanding Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.23&nbsp;&nbsp;&nbsp;&nbsp;"***Exchange Act***" means the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.24&nbsp;&nbsp;&nbsp;&nbsp;"***Fair Market Value***" means, as of any date, the value of a Share determined as follows: (a) if the Class A Common Stock is listed on any established stock exchange, its Fair Market Value will be the closing sales price for such class of Common Stock as quoted on such exchange for such date, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems reliable; (b) if the Class A Common Stock is not traded on a stock exchange but is quoted on a national market or other quotation system, the closing sales price on such date, or if no sales occurred on such date, then on the last date preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems reliable; or (c) without an established market for the Class A Common Stock, the Administrator will determine the Fair Market Value in its discretion.

Notwithstanding the foregoing, with respect to any Award granted on the pricing date of the Company's initial public offering, the Fair Market Value shall mean the initial public offering price of a Share as set forth in the Company's final prospectus relating to its initial public offering filed with the Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.25&nbsp;&nbsp;&nbsp;&nbsp;"***Greater Than 10% Stockholder***" means an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or its parent or subsidiary corporation, as defined in Section 424(e) and (f) of the Code, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.26&nbsp;&nbsp;&nbsp;&nbsp;"***Incentive Stock Option***" means an Option intended to qualify as an "incentive stock option" as defined in Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.27&nbsp;&nbsp;&nbsp;&nbsp;"***Non-Qualified Stock Option***" means an Option, or portion thereof, not intended or not qualifying as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.28&nbsp;&nbsp;&nbsp;&nbsp;"***Option***" means an option to purchase Shares, which will either be an Incentive Stock Option or a Non-Qualified Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.29&nbsp;&nbsp;&nbsp;&nbsp;"***Other Stock or Cash Based Awards***" means cash awards, awards of Shares, and other awards valued wholly or partially by referring to, or are otherwise based on, Shares or other property awarded to a Participant under Article VII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.30&nbsp;&nbsp;&nbsp;&nbsp;"***Overall Share Limit***" means the sum of (a) [_____]Shares; and (b) an annual increase on the first day of each calendar year beginning on and including January 1, 2027 and ending on and including January 1, 2036, equal to (i) a number of Shares equal to 5% of the aggregate number of shares

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of Class A Common Stock and Class B Common Stock outstanding on the final day of the immediately preceding calendar year, (ii) such smaller number of Shares as is determined by the Board and (c) any Shares subject to Prior Plan Awards that become available for issuance under the Plan on or following the Effective Date pursuant to Section 4.2 (which shall not exceed [_______] Shares).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.31&nbsp;&nbsp;&nbsp;&nbsp;"***Participant***" means a Service Provider who has been granted an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.32&nbsp;&nbsp;&nbsp;&nbsp;"***Performance Criteria***" mean the criteria (and adjustments) that the Administrator may select for an Award to establish performance goals for a performance period, which may include the following: net earnings or losses (either before or after one or more of interest, taxes, depreciation, amortization, and non-cash equity-based compensation expense); gross or net sales or revenue or sales or revenue growth; net income (either before or after taxes) or adjusted net income; profits (including but not limited to gross profits, net profits, profit growth, net operation profit or economic profit), profit return ratios or operating margin; budget or operating earnings (either before or after taxes or before or after allocation of corporate overhead and bonus); cash flow (including operating cash flow and free cash flow or cash flow return on capital); return on assets; return on capital or invested capital; cost of capital; return on stockholders' equity; total stockholder return; return on sales; costs, reductions in costs and cost control measures; expenses; working capital; earnings or loss per share; adjusted earnings or loss per share; price per share or dividends per share (or appreciation in or maintenance of such price or dividends); regulatory achievements or compliance; implementation, completion or attainment of objectives relating to research, development, regulatory, commercial, or strategic milestones or developments; market share; economic value or economic value added models; division, group or corporate financial goals; customer satisfaction/growth; customer service; employee satisfaction; recruitment and maintenance of personnel; human capital management (including diversity and inclusion); supervision of litigation and other legal matters; strategic partnerships and transactions; financial ratios (including those measuring liquidity, activity, profitability or leverage); debt levels or reductions; sales-related goals; financing and other capital raising transactions; cash on hand; acquisition activity; investment sourcing activity; and marketing initiatives, any of which may be measured in absolute terms or as compared to any incremental increase or decrease. Such performance goals also may be based solely by reference to the Company's performance or the performance of a Subsidiary, division, business segment or business unit of the Company or a Subsidiary, or based upon performance relative to performance of other companies or upon comparisons of any of the indicators of performance relative to performance of other companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.33&nbsp;&nbsp;&nbsp;&nbsp;"***Plan***" means this 2026 Incentive Award Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.34&nbsp;&nbsp;&nbsp;&nbsp;"***Prior Plan***" means the Fervo Energy Company 2019 Stock Incentive Plan, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.35&nbsp;&nbsp;&nbsp;&nbsp;"***Prior Plan Award***" means an award outstanding under the Prior Plan as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.36&nbsp;&nbsp;&nbsp;&nbsp;"***Public Trading Date***" means the first date upon which the Class A Common Stock is listed (or approved for listing) upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.37&nbsp;&nbsp;&nbsp;&nbsp;"***Restricted Stock***" means Shares awarded to a Participant under Article VI subject to certain vesting conditions and other restrictions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.38&nbsp;&nbsp;&nbsp;&nbsp;"***Restricted Stock Unit***" means an unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in cash or other consideration determined by the Administrator to be of equal value as of such settlement date awarded to a Participant under Article VI subject to certain vesting conditions and other restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.39&nbsp;&nbsp;&nbsp;&nbsp;"***Rule 16b-3***" means Rule 16b-3 promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.40&nbsp;&nbsp;&nbsp;&nbsp;"***Section 409A***" means Section 409A of the Code and all regulations, guidance, compliance programs and other interpretative authority thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.41&nbsp;&nbsp;&nbsp;&nbsp;"***Securities Act***" means the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.42&nbsp;&nbsp;&nbsp;&nbsp;"***Service Provider***" means an Employee, Consultant or Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.43&nbsp;&nbsp;&nbsp;&nbsp;"***Share***" means a share of Class A Common Stock or Class B Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.44&nbsp;&nbsp;&nbsp;&nbsp;"***Stock Appreciation Right***" means a stock appreciation right granted under Article V.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.45&nbsp;&nbsp;&nbsp;&nbsp;"***Subsidiary***" means any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at least 50% of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.46&nbsp;&nbsp;&nbsp;&nbsp;"***Substitute Awards***" means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, in each case by a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.47&nbsp;&nbsp;&nbsp;&nbsp;"***Termination of Service***" means the date the Participant ceases to be a Service Provider.

**\* \* \* \* \***

## Exhibit 10.3

**Exhibit 10.3**

**FERVO ENERGY COMPANY**

**2026 EMPLOYEE STOCK PURCHASE PLAN**

**ARTICLE I.**

**PURPOSE**

The purposes of this Fervo Energy Company 2026 Employee Stock Purchase Plan (as it may be amended or restated from time to time, the "***Plan***") are to assist Eligible Employees of Fervo Energy Company, a Delaware corporation (the "***Company***"), and its Designated Subsidiaries in acquiring a stock ownership interest in the Company pursuant to a plan which is intended to qualify as an "employee stock purchase plan" within the meaning of Section 423(b) of the Code, and to help Eligible Employees provide for their future security and to encourage them to remain in the employment of the Company and its Designated Subsidiaries.

**ARTICLE II.**

**DEFINITIONS AND CONSTRUCTION**

Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall include the plural where the context so indicates. Masculine, feminine and neuter pronouns are used interchangeably and each comprehends the others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;"***Administrator***" shall mean the entity that conducts the general administration of the Plan as provided in Article XI. The term "Administrator" shall refer to the Committee unless the Board has assumed the authority for administration of the Plan as provided in Article XI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;"***Applicable Law***" shall mean any applicable law, including without limitation: (a) provisions of the Code, the Securities Act, the Exchange Act and any rules or regulations thereunder; (b) corporate, securities, tax or other laws, statutes, rules, requirements or regulations, whether U.S. or non-U.S. federal, state or local; and (c) rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;"***Board***" shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;"***Change in Control***" shall mean and include each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A transaction or series of transactions (other than an offering of Common Stock to the general public through a registration statement filed with the Securities and Exchange Commission or a transaction or series of transactions that meets the requirements of clauses (i) and (ii) of subsection (c) below) whereby any "person" or related "group" of "persons" (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its Subsidiaries, an employee benefit plan maintained by the Company or any of its Subsidiaries or a "person" that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than 50% of the total combined voting power (meaning the aggregate voting power of securities entitled to vote generally in the election of directors, measured in accordance with the Company's Amended and Restated Certificate of Incorporation (the "***Amended Charter***"), including giving effect to the super-voting rights of the Company's Class B Common Stock) of the Company's securities outstanding immediately after such acquisition; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;During any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new director(s) (other than a director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in subsections (a) or (c)) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two-year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company's assets in any single transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction:

&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)&nbsp;&nbsp;&nbsp;&nbsp;which results in the Company's voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company's assets or otherwise succeeds to the business of the Company (the Company or such person, the "***Successor Entity***")) directly or indirectly, at least a majority of the combined voting power of the Successor Entity's outstanding voting securities immediately after the transaction, 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)&nbsp;&nbsp;&nbsp;&nbsp;after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; *provided*, *however*, that no person or group shall be treated for purposes of this clause (ii) as beneficially owning 50% or more of the combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction.

Notwithstanding the foregoing, if a Change in Control constitutes a payment event with respect to any portion of any right that provides for the deferral of compensation that is subject to Section 409A of the Code, to the extent required to avoid the imposition of additional taxes under Section 409A of the Code, the transaction or event described in subsection (a), (b) or (c) with respect to such right (or portion thereof) shall only constitute a Change in Control for purposes of the payment timing of such right (or portion thereof) if such transaction also constitutes a "change in control event," as defined in Treasury Regulation Section 1.409A-3(i)(5).

For the avoidance of doubt, any reclassification, conversion, or other change in, or of, the Company's capital structure, including any conversion of shares of Class B Common Stock into shares of Class A Common Stock (whether upon transfer, including transfers to permitted transferees such as immediate family members, certain trusts (including grantor retained annuity trusts) and entities exclusively owned by such holders or their immediate family members, or pursuant to any automatic conversion event, including any time-based "sunset" or other automatic conversion triggers), in each case pursuant to and in accordance with the Amended Charter shall not, in and of itself, constitute a Change in Control.

The Administrator shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided

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that any exercise of authority in conjunction with a determination of whether a Change in Control is a "change in control event" as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;"***Class A Common Stock***" shall mean the Class A common stock of the Company, par value $0.0001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;&nbsp;"***Class B Common Stock***" shall mean the Class B common stock of the Company, par value $0.0001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;&nbsp; "***Code***" shall mean the Internal Revenue Code of 1986, as amended and the regulations issued thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8&nbsp;&nbsp;&nbsp;&nbsp; "***Common Stock***" shall mean the Class A Common Stock or Class B Common Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9&nbsp;&nbsp;&nbsp;&nbsp;"***Company***" shall mean Fervo Energy Company, a Delaware corporation, or any successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10&nbsp;&nbsp;&nbsp;&nbsp;"***Compensation***" of an Eligible Employee shall mean, unless otherwise specified in the Offering Document, the gross base salary received by such Eligible Employee as compensation for services to the Company or any Designated Subsidiary (which, for clarity, excludes periodic (e.g., annual or quarterly) bonuses, one-time bonuses (e.g., retention or sign-on bonuses), commissions, overtime payments (including payments in lieu of meal breaks), military leave pay, education or tuition reimbursements, travel expenses, business and moving reimbursements, income received in connection with any stock options, stock appreciation rights, restricted stock, restricted stock units or other compensatory equity awards, fringe benefits, other special payments and all contributions made by the Company or any Designated Subsidiary for the Employee's benefit under any employee benefit plan now or hereafter established).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11&nbsp;&nbsp;&nbsp;&nbsp;"***Designated Subsidiary***" shall mean any Subsidiary designated by the Administrator in accordance with Section 11.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12&nbsp;&nbsp;&nbsp;&nbsp;"***Effective Date***" shall mean the Pricing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13&nbsp;&nbsp;&nbsp;&nbsp;"***Eligible Employee***" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;An Employee who does not, immediately after any rights under this Plan are granted, own (directly or through attribution) stock possessing 5% or more of the total combined voting power or value of all classes of Common Stock and other stock of the Company, a Parent or a Subsidiary (as determined under Section 423(b)(3) of the Code). For purposes of the foregoing sentence, the rules of Section 424(d) of the Code with regard to the attribution of stock ownership shall apply in determining the stock ownership of an individual, and stock that an Employee may purchase under outstanding options shall be treated as stock owned by the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the Administrator may provide in an Offering Document that an Employee shall not be eligible to participate in an Offering Period if: (i) such Employee is a highly compensated employee within the meaning of Section 423(b)(4)(D) of the Code, (ii) such Employee has not met a service requirement designated by the Administrator pursuant to Section 423(b)(4)(A) of the Code (which service requirement may not exceed two years), (iii) such Employee's customary

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employment is for 20 hours or less per week, (iv) such Employee's customary employment is for less than five months in any calendar year and/or (v) such Employee is a citizen or resident of a foreign jurisdiction and the grant of a right to purchase Shares under the Plan to such Employee would be prohibited under the laws of such foreign jurisdiction or the grant of a right to purchase Shares under the Plan to such Employee in compliance with the laws of such foreign jurisdiction would cause the Plan to violate the requirements of Section 423 of the Code, as determined by the Administrator in its sole discretion; *provided*, *further*, that any exclusion in clauses (i), (ii), (iii), (iv) or (v) shall be applied in an identical manner under each Offering Period to all Employees, in accordance with Treasury Regulation Section 1.423-2(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14&nbsp;&nbsp;&nbsp;&nbsp;"***Employee***" shall mean an individual who renders services to the Company or any Designated Subsidiary as an employee within the meaning of Section 3401(c) of the Code. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company or Designated Subsidiary and meeting the requirements of Treasury Regulation Section 1.421-1(h)(2). Where the period of leave exceeds three months and the individual's right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the first day immediately following such three-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15&nbsp;&nbsp;&nbsp;&nbsp;"***Enrollment Date***" shall mean the first Trading Day of each Offering Period, unless otherwise specified in the Offering Document; provided, that the Enrollment Date for the Initial Offering Period shall be the Pricing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16&nbsp;&nbsp;&nbsp;&nbsp;"***Exchange Act***" shall mean the Securities Exchange Act of 1934, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17&nbsp;&nbsp;&nbsp;&nbsp;"***Fair Market Value***" shall mean, as of any date, the value of a Share determined as follows: (a) if the Class A Common Stock is listed on any established stock exchange, its Fair Market Value will be the closing sales price for such Class A Common Stock as quoted on such exchange for such date, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as reported in *The Wall Street Journal* or another source the Administrator deems reliable; (b) if the Class A Common Stock is not traded on a stock exchange but is quoted on a national market or other quotation system, the closing sales price on such date, or if no sales occurred on such date, then on the last date preceding such date during which a sale occurred, as reported in *The Wall Street Journal* or another source the Administrator deems reliable; (c) without an established market for the Class A Common Stock, the Administrator will determine the Fair Market Value in its discretion; or (d) with respect to the Initial Offering Period, the Fair Market Value of the Class A Common Stock, as specified in the Offering Document approved by the Administrator with respect to the Initial Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18&nbsp;&nbsp;&nbsp;&nbsp;"***Initial Offering Period***" means the period commencing on the Pricing Date and ending on the date set forth in the Offering Document approved by the Administrator with respect to the Initial Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19&nbsp;&nbsp;&nbsp;&nbsp;"***Offering Document***" shall have the meaning given to such term in Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20&nbsp;&nbsp;&nbsp;&nbsp;"***Offering Period***" shall have the meaning given to such term in Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21&nbsp;&nbsp;&nbsp;&nbsp;"***Parent***" shall mean any corporation, other than the Company, in an unbroken chain of corporations ending with the Company if, at the time of the determination, each of the corporations other

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than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22&nbsp;&nbsp;&nbsp;&nbsp;"***Participant***" shall mean any Eligible Employee who has executed a subscription or enrollment agreement and been granted rights to purchase Shares pursuant to the Plan (or, with respect to the Initial Offering Period, those Participants specified in the Offering Document approved by the Administrator with respect to the Initial Offering Period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23&nbsp;&nbsp;&nbsp;&nbsp;"***Plan***" shall mean this Fervo Energy Company 2026 Employee Stock Purchase Plan, as it may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24&nbsp;&nbsp;&nbsp;&nbsp;"***Pricing Date***" means the date upon which the Company's Registration Statement on Form S-1 filed with the Securities and Exchange Commission relating to the underwritten public offering of shares of Common Stock becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25&nbsp;&nbsp;&nbsp;&nbsp;"***Purchase Date***" shall mean the last Trading Day of each Purchase Period, unless otherwise specified in the Offering Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26&nbsp;&nbsp;&nbsp;&nbsp;"***Purchase Period***" shall refer to one or more periods within an Offering Period, as designated in the applicable Offering Document; *provided*, *however*, that, in the event no Purchase Period is designated by the Administrator in the applicable Offering Document, the Purchase Period for each Offering Period covered by such Offering Document shall be the same as the applicable Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27&nbsp;&nbsp;&nbsp;&nbsp;"***Purchase Price***" shall mean the purchase price designated by the Administrator in the applicable Offering Document (which purchase price shall not be less than 85% of the Fair Market Value of a Share on the Enrollment Date or on the Purchase Date, whichever is lower); *provided*, *however*, that, in the event no purchase price is designated by the Administrator in the applicable Offering Document, the purchase price for the Offering Periods covered by such Offering Document shall be 85% of the Fair Market Value of a Share on the Enrollment Date or on the Purchase Date, whichever is lower; *provided*, *further*, that the Purchase Price may be adjusted by the Administrator pursuant to Article VIII and shall not be less than the par value of a Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28&nbsp;&nbsp;&nbsp;&nbsp;"***Securities Act***" shall mean the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29&nbsp;&nbsp;&nbsp;&nbsp;"***Share***" shall mean a share of Class A Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30&nbsp;&nbsp;&nbsp;&nbsp;"***Subsidiary***" shall mean any corporation, other than the Company, in an unbroken chain of corporations beginning with the Company if, at the time of the determination, each of the corporations other than the last corporation in an unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain; *provided*, *however*, that a limited liability company or partnership may be treated as a Subsidiary to the extent either (a) such entity is treated as a disregarded entity under Treasury Regulation Section 301.7701-3(a) by reason of the Company or any other Subsidiary that is a corporation being the sole owner of such entity, or (b) such entity elects to be classified as a corporation under Treasury Regulation Section 301.7701-3(a) and such entity would otherwise qualify as a Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31&nbsp;&nbsp;&nbsp;&nbsp;"***Trading Day***" shall mean a day on which national stock exchanges in the United States are open for trading.

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**ARTICLE III.**

**SHARES SUBJECT TO THE PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Number of Shares</u>. Subject to Article VIII, the aggregate number of Shares that may be issued pursuant to rights granted under the Plan shall be [_____] Shares. In addition, subject to Article VIII, on the first day of each calendar year beginning on and including January 1, 2027 and ending on and including January 1, 2036, the number of Shares available for issuance under the Plan shall be increased by that number of Shares equal to (a) a number of Shares equal to 1% of the aggregate number of Shares of Class A Common Stock and Class B Common Stock outstanding on the final day of the immediately preceding calendar year or (b) such smaller number of Shares as is determined by the Board. If any right granted under the Plan shall for any reason terminate without having been exercised, the Shares not purchased under such right shall again become available for issuance under the Plan. Notwithstanding anything in this Section 3.1 to the contrary, the number of Shares that may be issued or transferred pursuant to the rights granted under the Plan shall not exceed an aggregate of 100,000,000 Shares, subject to Article VIII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock Distributed</u>. Any Shares distributed pursuant to the Plan may consist, in whole or in part, of authorized and unissued Class A Common Stock, treasury stock or Class A Common Stock purchased on the open market. Shares issued under the Plan will be shares of Class A Common Stock.

**ARTICLE IV.**

**OFFERING PERIODS; OFFERING DOCUMENTS; PURCHASE DATES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Offering Periods</u>. The Administrator may from time to time grant or provide for the grant of rights to purchase Shares under the Plan to Eligible Employees during one or more periods (each, an "***Offering Period***") selected by the Administrator. The terms and conditions applicable to each Offering Period shall be set forth in an "***Offering Document***" adopted by the Administrator, which Offering Document shall be in such form and shall contain such terms and conditions as the Administrator shall deem appropriate. The Administrator shall establish in each Offering Document one or more Purchase Periods during such Offering Period during which rights granted under the Plan shall be exercised and purchases of Shares carried out during such Offering Period in accordance with such Offering Document and the Plan. The provisions of separate Offering Periods under the Plan need not be identical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Offering Documents</u>. Each Offering Document with respect to an Offering Period shall specify (through incorporation of the provisions of this Plan by reference or otherwise):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the length of the Offering Period, which period shall not exceed 27 months;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the length of the Purchase Period(s) within the Offering Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;in connection with each Offering Period that contains only one Purchase Period the maximum number of Shares that may be purchased by any Eligible Employee during such Offering Period, which, in the absence of a contrary designation by the Administrator, shall be 10,000 Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;in connection with each Offering Period that contains more than one Purchase Period, the maximum aggregate number of Shares which may be purchased by any Eligible Employee during each Purchase Period, which, in the absence of a contrary designation by the Administrator, shall be 10,000 Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;such other provisions as the Administrator determines are appropriate, subject to the Plan.

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**ARTICLE V.**

**ELIGIBILITY AND PARTICIPATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Eligibility</u>. Any Eligible Employee who shall be employed by the Company or a Designated Subsidiary on a given Enrollment Date for an Offering Period shall be eligible to participate in the Plan during such Offering Period, subject to the requirements of this Article V and the limitations imposed by Section 423(b) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Enrollment in Plan</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise set forth herein or in an Offering Document or determined by the Administrator, an Eligible Employee may become a Participant in the Plan for an Offering Period by delivering a subscription or enrollment agreement to the Company by such time prior to the Enrollment Date for such Offering Period (or such other date specified in the Offering Document) designated by the Administrator and in such form as the Company provides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise determined by the Administrator, each subscription or enrollment agreement shall designate a whole percentage of such Eligible Employee's Compensation to be withheld by the Company or the Designated Subsidiary employing such Eligible Employee on each payday during the Offering Period as payroll deductions under the Plan. The designated percentage may not be less than 1% and may not be more than the maximum percentage specified by the Administrator in the applicable Offering Document (which percentage shall be 15% in the absence of any such designation). The payroll deductions made for each Participant shall be credited to an account for such Participant under the Plan and shall be deposited with the general funds of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;A Participant may be allowed to decrease or increase the percentage of Compensation designated in his or her subscription or enrollment agreement, or may suspend his or her payroll deductions, at any time during an Offering Period (any such decrease, increase or suspension, a "***Contribution Change***") subject to any limits as set forth in the applicable Offering Document (and in the absence of any specific designation by the Administrator, a Participant shall not be allowed any Contribution Changes during an Offering Period with respect to such Offering Period). Any such Contribution Change shall be effective with the first full payroll period following five business days after the Company's receipt of the new subscription or enrollment agreement (or such shorter or longer period as may be specified by the Administrator in the applicable Offering Document). In the event a Participant suspends his or her payroll deductions, such Participant's cumulative payroll deductions prior to the suspension shall remain in his or her account and shall be applied to the purchase of Shares on the next occurring Purchase Date and shall not be paid to such Participant unless he or she withdraws from participation in the Plan pursuant to Article VII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise set forth in Section 5.8 or in an Offering Document or determined by the Administrator, a Participant may participate in the Plan only by means of payroll deduction and may not make contributions by lump sum payment for any Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Payroll Deductions</u>. Except as otherwise provided in the applicable Offering Document, Section 5.8 or as determined by the Administrator, payroll deductions for a Participant shall commence on the first payday following the Enrollment Date and shall end on the last payday in the Offering Period to which the Participant's authorization is applicable, unless sooner terminated by the Participant as provided in Article VII or suspended by the Participant or the Administrator as provided in Section 5.2 and Section 5.6, respectively.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Enrollment</u>. A Participant's completion of a subscription or enrollment agreement will enroll such Participant in the Plan for each subsequent Offering Period on the terms contained therein until the Participant either submits a new subscription or enrollment agreement, withdraws from participation under the Plan as provided in Article VII or otherwise becomes ineligible to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Purchase of Common Stock</u>. An Eligible Employee may be granted rights under the Plan only if such rights, together with any other rights granted to such Eligible Employee under "employee stock purchase plans" of the Company, any Parent or any Subsidiary, as specified by Section 423(b)(8) of the Code, do not permit such employee's rights to purchase stock of the Company or any Parent or Subsidiary to accrue at a rate that exceeds $25,000 of the fair market value of such stock (determined as of the first day of the Offering Period during which such rights are granted) for each calendar year in which such rights are outstanding at any time. This limitation shall be applied in accordance with Section 423(b)(8) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Suspension of Payroll Deductions</u>. Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 5.5 or the other limitations set forth in this Plan, a Participant's payroll deductions may be suspended by the Administrator at any time during an Offering Period. The balance of the amount credited to the account of each Participant that has not been applied to the purchase of Shares by reason of Section 423(b)(8) of the Code, Section 5.5 or the other limitations set forth in this Plan shall be paid to such Participant in one lump sum in cash as soon as reasonably practicable after the Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Foreign Employees</u>. In order to facilitate participation in the Plan, the Administrator may provide for such special terms applicable to Participants who are citizens or residents of a foreign jurisdiction, or who are employed by a Designated Subsidiary outside of the United States, as the Administrator may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Except as permitted by Section 423 of the Code, such special terms may not be more favorable than the terms of rights granted under the Plan to Eligible Employees who are residents of the United States. Moreover, the Administrator may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of this Plan as in effect for any other purpose. No such special terms, supplements, amendments or restatements shall include any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the stockholders of the Company. Without limiting the foregoing, the Administrator is specifically authorized to adopt rules and procedures, with respect to Participants who are foreign nationals or employed in non-U.S. jurisdictions, regarding the exclusion of particular Subsidiaries from participation in the Plan, eligibility to participate, the definition of Compensation, handling of payroll deductions or other contributions by Participants, payment of interest, conversion of local currency, data privacy security, payroll tax, withholding procedures, establishment of bank or trust accounts to hold payroll deductions or contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Leave of Absence</u>. During leaves of absence approved by the Company meeting the requirements of Treasury Regulation Section 1.421-1(h)(2) under the Code, a Participant may continue participation in the Plan by making cash payments to the Company on his or her normal payday equal to his or her authorized payroll deduction.

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**ARTICLE VI.**

**GRANT AND EXERCISE OF RIGHTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Grant of Rights</u>. On the Enrollment Date of each Offering Period, each Eligible Employee participating in such Offering Period shall be granted a right to purchase the maximum number of Shares specified under Section 4.2, subject to the limits in Section 5.5, and shall have the right to buy, on each Purchase Date during such Offering Period (at the applicable Purchase Price), such number of whole Shares as is determined by dividing (a) such Participant's payroll deductions accumulated prior to such Purchase Date and retained in the Participant's account as of the Purchase Date, by (b) the applicable Purchase Price (rounded down to the nearest Share). The right shall expire on the earliest of: (x) the last Purchase Date of such Offering Period, (y) the last day of such Offering Period and (z) the date on which such Participant withdraws in accordance with Section 7.1 or Section 7.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Exercise of Rights</u>. On each Purchase Date, each Participant's accumulated payroll deductions and any other additional payments specifically provided for in the applicable Offering Document will be applied to the purchase of whole Shares, up to the maximum number of Shares permitted pursuant to the terms of the Plan and the applicable Offering Document, at the Purchase Price. No fractional Shares shall be issued upon the exercise of rights granted under the Plan, unless the Offering Document specifically provides otherwise. Any cash remaining after the purchase of Shares upon exercise of a purchase right (including any cash in lieu of fractional Shares) shall be returned to the Participant in one lump sum payment in a subsequent payroll check; *provided*, *however*, that the Administrator may provide in the applicable Offering Document that cash in lieu of fractional Shares should be carried forward and applied toward the purchase of whole Shares for the following Offering Period. Shares issued pursuant to the Plan may be evidenced in such manner as the Administrator may determine and may be issued in certificated form or issued pursuant to book-entry procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Pro Rata Allocation of Shares</u>. If the Administrator determines that, on a given Purchase Date, the number of Shares with respect to which rights are to be exercised may exceed (a) the number of Shares that were available for issuance under the Plan on the Enrollment Date of the applicable Offering Period, or (b) the number of Shares available for issuance under the Plan on such Purchase Date, the Administrator may in its sole discretion provide that the Company shall make a pro rata allocation of the Shares available for purchase on such Enrollment Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all Participants for whom rights to purchase Shares are to be exercised pursuant to this Article VI on such Purchase Date, and shall either (i) continue all Offering Periods then in effect, or (ii) terminate any or all Offering Periods then in effect pursuant to Article IX. The Company may make pro rata allocation of the Shares available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional Shares for issuance under the Plan by the Company's stockholders subsequent to such Enrollment Date. The balance of the amount credited to the account of each Participant that has not been applied to the purchase of Shares shall be paid to such Participant, without interest, in one lump sum in cash as soon as reasonably practicable after the Purchase Date, or such earlier date as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. At the time a Participant's rights under the Plan are exercised, in whole or in part, or at the time some or all of the Shares issued under the Plan are disposed of, the Participant must make adequate provision for the Company's federal, state, or other tax withholding obligations, if any, that arise upon the exercise of the right or the disposition of the Shares. At any time, the Company may, but shall not be obligated to, withhold from the Participant's compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make

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available to the Company any tax deductions or benefits attributable to sale or early disposition of Shares by the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions to Issuance of Common Stock</u>. The Company shall not be required to issue or deliver any certificate or certificates for, or make any book entries evidencing, Shares purchased upon the exercise of rights under the Plan prior to fulfillment of all of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The admission of such Shares to listing on all stock exchanges, if any, on which the Class A Common Stock is then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The completion of any registration or other qualification of such Shares under any state or federal law or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body, that the Administrator shall, in its absolute discretion, deem necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The obtaining of any approval or other clearance from any state or federal governmental agency that the Administrator shall, in its absolute discretion, determine to be necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The payment to the Company of all amounts that it is required to withhold under federal, state or local law upon exercise of the rights, if any; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The lapse of such reasonable period of time following the exercise of the rights as the Administrator may from time to time establish for reasons of administrative convenience.

**ARTICLE VII.**

**WITHDRAWAL; CESSATION OF ELIGIBILITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Withdrawal</u>. A Participant may withdraw all but not less than all of the payroll deductions credited to his or her account and not yet used to exercise his or her rights under the Plan at any time by giving written notice to the Company in a form acceptable to the Company no later than two weeks prior to the end of the Offering Period or, if earlier, the end of the Purchase Period (or such shorter or longer period as may be specified by the Administrator in the Offering Document). All of the Participant's payroll deductions credited to his or her account during the Offering Period not yet used to exercise his or her rights under the Plan shall be paid to such Participant as soon as reasonably practicable after receipt of notice of withdrawal and such Participant's rights for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of Shares shall be made for such Offering Period. If a Participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the next Offering Period unless the Participant is an Eligible Employee and timely delivers to the Company a new subscription or enrollment agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Future Participation</u>. A Participant's withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan that may hereafter be adopted by the Company or a Designated Subsidiary or in subsequent Offering Periods that commence after the termination of the Offering Period from which the Participant withdraws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Cessation of Eligibility</u>. Upon a Participant's ceasing to be an Eligible Employee for any reason, he or she shall be deemed to have elected to withdraw from the Plan pursuant to this Article VII and the payroll deductions credited to such Participant's account during the Offering Period shall be paid to such Participant or, in the case of his or her death, to the person or persons entitled thereto under

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Section 12.4, as soon as reasonably practicable, and such Participant's rights for the Offering Period shall be automatically terminated.

**ARTICLE VIII.**

**ADJUSTMENTS UPON CHANGES IN STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Changes in Capitalization</u>. Subject to Section 8.3, in the event that the Administrator determines that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), Change in Control, reorganization, merger, amalgamation, consolidation, combination, repurchase, recapitalization, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or sale or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or event, as determined by the Administrator, affects the Common Stock such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any outstanding purchase rights under the Plan, the Administrator shall make equitable adjustments, if any, to reflect such change with respect to (a) the aggregate number and type of Shares (or other securities or property) that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1 and the limitations established in each Offering Document pursuant to Section 4.2 on the maximum number of Shares that may be purchased); (b) the class(es) and number of Shares and price per Share subject to outstanding rights; and (c) the Purchase Price with respect to any outstanding rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Adjustments</u>. Subject to Section 8.3, in the event of any transaction or event described in Section 8.1 or any unusual or nonrecurring transactions or events affecting the Company, any affiliate of the Company, or the financial statements of the Company or any affiliate (including without limitation any Change in Control), or of changes in Applicable Law or accounting principles, the Administrator, in its discretion, and on such terms and conditions as it deems appropriate, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent the dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any right under the Plan, to facilitate such transactions or events or to give effect to such changes in laws, regulations or principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To provide for either (i) termination of any outstanding right in exchange for an amount of cash, if any, equal to the amount that would have been obtained upon the exercise of such right had such right been currently exercisable or (ii) the replacement of such outstanding right with other rights or property selected by the Administrator in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To provide that the outstanding rights under the Plan shall be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar rights covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;To make adjustments in the number and type of Shares (or other securities or property) subject to outstanding rights under the Plan and/or in the terms and conditions of outstanding rights and rights that may be granted in the future;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;To provide that Participants' accumulated payroll deductions may be used to purchase Shares prior to the next occurring Purchase Date on such date as the Administrator determines in its sole discretion and the Participants' rights under the ongoing Offering Period(s) shall be terminated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;To provide that all outstanding rights shall terminate without being exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>No Adjustment Under Certain Circumstances</u>. No adjustment or action described in this Article VIII or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause the Plan to fail to satisfy the requirements of Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>No Other Rights</u>. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly provided in the Plan or pursuant to action of the Administrator under the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares subject to outstanding rights under the Plan or the Purchase Price with respect to any outstanding rights.

**ARTICLE IX.**

**AMENDMENT, MODIFICATION AND TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment, Modification and Termination</u>. The Administrator may amend, suspend or terminate the Plan at any time and from time to time; <u>provided</u>*,* <u>however</u>, that approval of the Company's stockholders shall be required to amend the Plan to: (a) increase the aggregate number, or change the type, of shares that may be sold pursuant to rights under the Plan under Section 3.1 (other than an adjustment as provided by Article VIII); (b) change the Plan in any manner that would be considered the adoption of a new plan within the meaning of Treasury regulation Section 1.423-2(c)(4); or (c) change the Plan in any manner that would cause the Plan to no longer be an "employee stock purchase plan" within the meaning of Section 423(b) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Changes to Plan</u>. Without stockholder consent and without regard to whether any Participant rights may be considered to have been adversely affected, to the extent permitted by Section 423 of the Code, the Administrator shall be entitled to change or terminate the Offering Periods, limit the frequency and/or number of changes in the amount withheld from Compensation during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company's processing of payroll withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant's Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion to be advisable that are consistent with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Actions In the Event of Unfavorable Financial Accounting Consequences</u>. In the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Administrator may, in its discretion and, to the extent necessary or

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desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;shortening any Offering Period so that the Offering Period ends on a new Purchase Date, including an Offering Period underway at the time of the Administrator action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;allocating Shares.

Such modifications or amendments shall not require stockholder approval or the consent of any Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments Upon Termination of Plan</u>. Upon termination of the Plan, the balance in each Participant's Plan account shall be refunded as soon as practicable after such termination, without any interest thereon.

**ARTICLE X.**

**TERM OF PLAN**

The Plan shall be effective on the Effective Date. The effectiveness of the Plan shall be subject to approval of the Plan by the stockholders of the Company within 12 months following the date the Plan is first approved by the Board. No right may be granted under the Plan prior to such stockholder approval. No rights may be granted under the Plan during any period of suspension of the Plan or after termination of the Plan.

**ARTICLE XI.**

**ADMINISTRATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Administrator</u>. Unless otherwise determined by the Board, the Administrator of the Plan shall be the Compensation Committee of the Board (or another committee or a subcommittee of the Board to which the Board delegates administration of the Plan) (such committee, the "***Committee***"). The Board may at any time vest in the Board any authority or duties for administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Authority of Administrator</u>. The Administrator shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To determine when and how rights to purchase Shares shall be granted and the provisions of each offering of such rights (which need not be identical).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To designate from time to time which Subsidiaries of the Company shall be Designated Subsidiaries, which designation may be made without the approval of the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;To construe and interpret the Plan and rights granted under it, and to establish, amend and revoke rules and regulations for its administration. The Administrator, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;To amend, suspend or terminate the Plan as provided in Article IX.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Generally, to exercise such powers and to perform such acts as the Administrator deems necessary or expedient to promote the best interests of the Company and its Subsidiaries and to carry out the intent that the Plan be treated as an "employee stock purchase plan" within the meaning of Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Decisions Binding</u>. The Administrator's interpretation of the Plan, any rights granted pursuant to the Plan, any subscription or enrollment agreement and all decisions and determinations by the Administrator with respect to the Plan are final, binding, and conclusive on all parties.

**ARTICLE XII.**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Restriction upon Assignment</u>. A right granted under the Plan shall not be transferable other than by will or the Applicable Laws of descent and distribution, and is exercisable during the Participant's lifetime only by the Participant. Except as provided in Section 12.4 hereof, a right under the Plan may not be exercised to any extent except by the Participant. The Company shall not recognize and shall be under no duty to recognize any assignment or alienation of the Participant's interest in the Plan, the Participant's rights under the Plan or any rights thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights as a Stockholder</u>. With respect to Shares subject to a right granted under the Plan, a Participant shall not be deemed to be a stockholder of the Company, and the Participant shall not have any of the rights or privileges of a stockholder, until such Shares have been issued to the Participant or his or her nominee following exercise of the Participant's rights under the Plan. No adjustments shall be made for dividends (ordinary or extraordinary, whether in cash, securities, or other property) or distribution or other rights for which the record date occurs prior to the date of such issuance, except as otherwise expressly provided herein or as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest</u>. No interest shall accrue on the payroll deductions or contributions of a Participant under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Designation of Beneficiary</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A Participant may, in the manner determined by the Administrator, file a written designation of a beneficiary who is to receive any Shares and/or cash, if any, from the Participant's account under the Plan in the event of such Participant's death subsequent to a Purchase Date on which the Participant's rights are exercised but prior to delivery to such Participant of such Shares and cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant's account under the Plan in the event of such Participant's death prior to exercise of the Participant's rights under the Plan. If the Participant is married and resides in a community property state, a designation of a person other than the Participant's spouse as his or her beneficiary shall not be effective without the prior written consent of the Participant's spouse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Such designation of beneficiary may be changed by the Participant at any time by written notice to the Company. In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant's death, the Company shall deliver such Shares and/or cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Equal Rights and Privileges</u>. Subject to Section 5.7, all Eligible Employees will have equal rights and privileges under this Plan so that this Plan qualifies as an "employee stock purchase plan" within the meaning of Section 423 of the Code. Subject to Section 5.7, any provision of this Plan that is inconsistent with Section 423 of the Code will, without further act or amendment by the Company, the Board or the Administrator, be reformed to comply with the equal rights and privileges requirement of Section 423 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Funds</u>. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Reports</u>. If required by Applicable Law, statements of account shall be given to Participants at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of Shares purchased and the remaining cash balance, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9&nbsp;&nbsp;&nbsp;&nbsp;<u>No Employment Rights</u>. Nothing in the Plan shall be construed to give any person (including any Eligible Employee or Participant) the right to employment or service with (or to remain in the employ of) the Company or any Parent or Subsidiary thereof or affect the right of the Company or any Parent or Subsidiary thereof to terminate the employment of any person (including any Eligible Employee or Participant) at any time, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Disposition of Shares</u>. Each Participant shall give prompt notice to the Company of any disposition or other transfer of any Shares purchased upon exercise of a right under the Plan if such disposition or transfer is made: (a) within two years from the Enrollment Date of the Offering Period in which the Shares were purchased or (b) within one year after the Purchase Date on which such Shares were purchased. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by the Participant in such disposition or other transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. The Plan and any agreements hereunder shall be administered, interpreted and enforced under the internal laws of the State of Delaware without regard to conflicts of laws thereof or of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Forms</u>. To the extent permitted by Applicable Law and in the discretion of the Administrator, an Eligible Employee may submit any form or notice as set forth herein by means of an electronic form approved by the Administrator. Before the commencement of an Offering Period, the Administrator shall prescribe the time limits within which any such electronic form shall be submitted to the Administrator with respect to such Offering Period in order to be a valid election.

\* \* \* \* \*

## Exhibit 10.4

**Exhibit 10.4**

**FERVO ENERGY COMPANY**

**NON-EMPLOYEE DIRECTOR COMPENSATION PROGRAM**

Eligible Directors (as defined below) on the board of directors (the "***Board***") of Fervo Energy Company, a Delaware corporation (the "***Company***") shall be eligible to receive cash and equity compensation as set forth in this Non-Employee Director Compensation Program (this "***Program***"). The cash and equity compensation described in this Program shall be paid or be made, as applicable, automatically as set forth herein and without further action of the Board, to each member of the Board who is not an employee of the Company or any of its parents or subsidiaries (each, an "***Eligible Director***") unless such member is determined by the Board to not be an Eligible Director or unless such Eligible Director declines the receipt of such cash or equity compensation by written notice to the Company.

This Program shall become effective upon the closing of the initial public offering of the Company's Class A common stock (the "***Effective Date***") and shall remain in effect until it is revised or rescinded by further action of the Board. This Program may be amended, modified or terminated by the Board at any time in its sole discretion. No Eligible Director shall have any rights hereunder, except with respect to equity awards granted pursuant to Section 2 of this Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Compensation</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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Retainers</u>. Each Eligible Director shall be eligible to receive an annual cash retainer of $77,500 for service on the Board.

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Annual Retainers</u>. An Eligible Director shall be eligible to receive the following additional annual retainers, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Lead Independent Director</u>. An Eligible Director serving as Lead Independent Director of the Board shall be eligible to receive an additional annual retainer of $25,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Committee Chair</u>. An Eligible Director serving as Chair of the Audit and Risk Committee, the Compensation Committee or the Nominating and Governance Committee shall be eligible to receive an additional annual retainer of $20,000, $15,000 or $15,000, respectively, for such service on such committee.

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Retainers</u>. The annual cash retainers described in Section 1 shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than 30 days following the end of each calendar quarter. In the event an Eligible Director does not serve as a director, or in the applicable positions described in Section 1.b, for an entire calendar quarter, the retainer paid to such Eligible Director shall be prorated for the portion of such calendar quarter actually served as a director, or in such position, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Equity Compensation</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.&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. Eligible Directors shall be granted the equity awards described below without further action from the Board. The awards described below shall be granted under and shall be subject to the terms and provisions of the Company's 2026 Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the Company (such plan, as may be amended from

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time to time, the "***Equity Plan***") and may be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the forms approved by the Board prior to or in connection with such grants. All applicable terms of the Equity Plan apply to this Program as if fully set forth herein, and all grants of equity awards hereby are subject in all respects to the terms of the Equity Plan. Capitalized terms in this Section 2 not otherwise defined herein shall have the meanings ascribed to them in the Equity 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;b.&nbsp;&nbsp;&nbsp;&nbsp;<u>2026 Awards</u>. An Eligible Director who is serving on the Board as of the Effective Date shall be granted a Restricted Stock Unit award (the "***2026 Award***"). Each 2026 Award shall be granted on the later of (i) the date on which the Form S-8 Registration Statement with respect to the Company's Class A common stock issuance under the Equity Plan becomes effective and (ii) the Effective Date. The number of Restricted Stock Units subject to a 2026 Award will be determined by dividing $250,000 by the price per share to the public of the Company's Class A common stock as determined on the pricing date of the Company's initial public offering. Each 2026 Award shall vest in full on the earlier to occur of (x) the one-year anniversary of the Effective Date and (y) the date of the Annual Meeting (as defined below) for calendar year 2027, subject to continued service through the applicable vesting 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;c.&nbsp;&nbsp;&nbsp;&nbsp;<u>Initial Awards</u>. An Eligible Director who is initially elected or appointed to serve on the Board after the Effective Date automatically shall be granted a Restricted Stock Unit award (the "***Initial Award***"). Each Initial Award shall be granted on the date on which such Eligible Director is appointed or elected to serve on the Board (the "***Election Date***"), and shall vest in full on the earlier to occur of (x) the one-year anniversary of the applicable Election Date and (y) the date of the next Annual Meeting following the Election Date, subject to continued service through the applicable vesting date. The number of Restricted Stock Units subject to the Initial Award will be determined by dividing the Pro-Rated Value (as defined below) by the closing price for the Company's Class A common stock on the applicable grant date. The "***Pro-Rated Value***" shall equal $125,000, multiplied by a fraction, (i) the numerator of which is the difference between 365 and the number of days from the immediately preceding Annual Meeting date (or the Effective Date, if there is no preceding Annual Meeting date) through the Election Date and (ii) the denominator of which is 365.

&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.&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual Awards</u>. An Eligible Director who is serving on the Board as of the date of the annual meeting of the Company's stockholders (each annual meeting, an "***Annual Meeting***") each calendar year beginning with calendar year 2027 shall be granted a Restricted Stock Unit award with a value of $125,000 (an "***Annual Award***", and together with the 2026 Award and the Initial Award, the "***Equity Awards***"). The number of Restricted Stock Units subject to an Annual Award will be determined by dividing $125,000 by the closing price for the Company's Class A common stock on the applicable grant date. Each Annual Award shall be granted on the date of the applicable Annual Meeting, and shall vest in full on the earlier to occur of (x) the one-year anniversary of the applicable grant date and (y) the date of the next Annual Meeting following the grant date, subject to continued service through the applicable vesting 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;e.&nbsp;&nbsp;&nbsp;&nbsp;<u>Accelerated Vesting Events</u>. Notwithstanding the foregoing, an Eligible Director's Equity Award(s) shall vest in full immediately prior to the occurrence of a Change in Control, to the extent outstanding at such time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation Limits</u>. Notwithstanding anything to the contrary in this Program, all compensation payable under this Program will be subject to any limits on the maximum amount of non-employee Director compensation set forth in the Equity Plan, as in effect from time to time.

\*\*\*\*\*

## Exhibit 10.5

**Exhibit 10.5**

**FERVO ENERGY COMPANY**

**771 CAPP STREET, SAN FRANCISCO, CA, 94100**

March 14, 2018

**Jack Norbeck**

Dear Jack Norbeck:

On behalf of Fervo Energy Company, a Delaware corporation (the **"Company"),** I am pleased to offer you employment with the Company. The purpose of this letter is to summarize the terms of your employment with the Company, should you accept our offer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;You will be employed to serve on a **FULL-TIME** basis as Co-Founder and Vice President of Technology, effective April 23, 2018. As Vice President of Technology, you will be responsible for reservoir and geomechanical modeling, induced seismicity mitigation and planning, evaluation of technical aspects of site selection and exploration, and coordination with external research teams, plus such other duties as may from time to time be assigned to you by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Your base salary will be at the rate of $4,167, payable on the 15<sup>th</sup> and last day of each calendar month, subject to tax and other withholdings as required by law. Such base salary may be adjusted from time to time in accordance with normal business practice and in the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Subject to the approval of the Board of Directors of the Company (the **"Board"),** the Company may issue you a restricted stock award (the **"Award"),** to acquire an aggregate number of shares of the Common Stock of the Company (the **"Common Stock")** equal to 10% of the outstanding capital stock of the Company, at a price per share equal to the fair market value of the Common Stock, at the time of Board approval. The Award shall vest as follows, in each case subject to you continuing to be a full time employee in good standing: (i) 25% of the shares underlying the Award shall vest on the one year anniversary of your start date and (ii) the remainder of the shares underlying the Award shall vest in 36 equal monthly installments following the one year anniversary of your start date. The Award shall be subject to all terms schedules and other provisions set forth in the definitive documentation related to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;You may participate in any and all bonus and benefit programs that the Company establishes and makes available to its employees from time to time, provided you are eligible under (and subject to all provisions of) the plan documents governing those programs. The bonus and benefit programs made available by the Company, and the rules, terms and conditions for participation in such benefit plans, may be changed by the Company at any time without advance notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;You may be eligible for a maximum of 4 weeks of vacation per calendar year to be taken at such times as may be approved by the Company. The number of vacation days for which you are eligible shall accrue at the rate of 2 days per month that you are employed during such calendar year. Vacation accrual will be capped at 1.5 times your annual vacation accrual. When your accrued vacation

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reaches the cap, you will not accrue additional vacation time until some of the previously accrued vacation is used and the accrued amount falls below the cap.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;You will be required to execute an Invention and Non-Disclosure Agreement in the form attached as <u>Exhibit A,</u> as a condition of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;You represent that you are not bound by any employment contract, restrictive covenant or other restriction preventing (or that purports to prevent) you from entering into employment with or carrying out your responsibilities for the Company, or which is in any way inconsistent with the terms of this letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;You agree to provide to the Company, within three days of your hire date, documentation of your eligibility to work in the United States, as required by the Immigration Reform and Control Act of 1986. You may need to obtain a work visa in order to be eligible to work in the United States. If that is the case, your employment with the Company will be conditioned upon your obtaining a work visa in a timely manner as determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;This letter shall not be construed as an agreement, either expressed or implied, to employ you for any stated term, and shall in no way alter the Company's policy of employment at will, under which both you and the Company remain free to terminate the employment relationship, with or without cause, at any time, with or without notice. Although your job duties, title, compensation and benefits, as well as the Company's personnel policies and procedures, may change from time to time, the "at-will" nature of your employment may only be changed by a written agreement signed by you and CEO, which expressly states the intention to modify the at-will nature of your employment. Similarly, nothing in this letter shall be construed as an agreement, either express or implied, to pay you any compensation or grant you any benefit beyond the end of your employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;In return for the compensation payments set forth in this letter, you agree to devote your full business time, best efforts, skill, knowledge, attention, and energies to the advancement of the Company's business and interests and to the performance of your duties and responsibilities as an employee of the Company and not to engage in any other business activities without prior approval from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;As an employee of the Company, you will be required to comply with all Company policies and procedures. Violations of the Company's policies may lead to immediate termination of your employment. Further, the Company's premises, including all workspaces, furniture, documents, and other tangible materials, and all information technology resources of the Company (including computers, data and other electronic files, and all internet and email) are subject to oversight and inspection by the Company at any time. Company employees should have no expectation of privacy with regard to any Company premises, materials, resources, or information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;This offer letter is your formal offer of employment and supersedes any and all prior or contemporaneous agreements, discussions and understandings, whether written or oral, relating to the subject matter of this letter or your employment with the Company. The resolution of any disputes under this letter will be governed by the laws of the State/Commonwealth of California.

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If you agree with the provisions of this letter, please sign the enclosed duplicate of this letter in the space provided below and return it to Fervo Energy Company, by March 20, 2018.

Very Truly Yours,

**Fervo Energy Company**

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| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
|  | Name: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Timothy Latimer |
|  | Title: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CEO |

---

The foregoing correctly sets forth the terms of my employment by Fervo Energy Company.

---

| | |
|:---|:---|
| Date: <u>March 15, 2018</u> | <u>/s/ Jack Norbeck</u> |
| | Name: Jack Norbeck |

---

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**EXHIBIT A**

**INVENTION AND NON-DISCLOSURE AGREEMENT**

This Invention and Non-Disclosure Agreement (this **"Agreement")** made this 5th day of March, 2018, is by and between Fervo Energy Company, a Delaware corporation (the **"Company"),** and Jack Norbeck (the **"Employee").** In consideration of the employment or continued employment of the Employee by the Company, the Employee and the Company agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Condition of Employment. The Employee acknowledges that Employee's employment</u> <u>and/or the continuance of that employment with the Company is contingent upon Employee's agreement</u> <u>to sign and adhere to the provisions of this Agreement. The Employee further acknowledges that the</u> <u>nature of the Company's business is such that protection of its proprietary and confidential information is</u> <u>critical to the survival and success of the Company's business.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Proprietary and Confidential Information.</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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee agrees that all information and know-how, whether or not in writing, of a private, secret or confidential nature concerning the Company's business or financial affairs (collectively, **"Proprietary Information")** is and shall be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information may include discoveries, ideas, inventions, products, product improvements, product enhancements, processes, methods, techniques, formulas, compositions, compounds, negotiation strategies and positions, projects, developments, plans (including business and marketing plans), research data, clinical data, financial data (including sales costs, profits, pricing methods), personnel data, computer programs (including software used pursuant to a license agreement), customer, prospect and supplier lists, and contacts at or knowledge of customers or prospective customers of the Company. The Employee will not disclose any Proprietary Information to any person or entity other than employees of the Company or use the same for any purposes (other than in the performance of Employee's duties as an employee of the Company) without written approval by an officer of the Company, either during or after Employee's employment with the Company, unless and until such Proprietary Information has become public knowledge without fault by the Employee. While employed by the Company, the Employee will use the Employee's best efforts to prevent unauthorized publication or disclosure of any of the Company's Proprietary Information.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee agrees that Employee's obligation not to disclose or to use information and materials of the types set forth in paragraphs 2(a) and 2(b) above, and Employee's obligation to return materials and tangible property, set forth in paragraph 2(b) above, also extends to

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such types of information, materials and tangible property of customers of the Company or suppliers to the Company or other third parties who may have disclosed or entrusted the same to the Company or to the Employee in the course of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Developments.</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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee has attached hereto, as <u>Exhibit A,</u> a list describing all discoveries, ideas, inventions, improvements, enhancements, processes, methods, techniques, developments, software, and works of authorship, whether patentable or not, which were created, made, conceived or reduced to practice by the Employee prior to the Employee's employment by the Company and which are owned by Employee, which relate directly or indirectly to the current or anticipated future business of the Company, and which are not assigned to the Company hereunder (collectively, **"Prior Developments");** or, if no such list is attached, Employee represents that there are no Prior Developments. Employee agrees not to incorporate any Prior Developments into any Company product, material, process or service without prior written consent of an officer of the Company. If Employee does incorporate any Prior Development into any Company product, material, process or service, Employee hereby grants to the Company a non-exclusive, worldwide, perpetual, transferable, irrevocable, royalty-free, fully-paid right and license to make, have made, use, offer for sale, sell, import, reproduce, modify, prepare derivative works, display, perform, transmit, distribute and otherwise exploit such Prior Development and to practice any method related thereto.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee will make full and prompt disclosure to the Company of all discoveries, ideas, inventions, improvements, enhancements, processes, methods, techniques, developments, software, and works of authorship, whether patentable or not, which are created, made, conceived or reduced to practice by Employee or under Employee's direction or jointly with others during Employee's employment by the Company, whether or not during normal working hours or on the premises of the Company (all of which are collectively referred to in this Agreement as **"Developments").** The Employee acknowledges that each original work of authorship which is made by the Employee (solely or jointly with others) within the scope of and during the period of Employee's employment with the Company and which is protectable by copyright is a "work made for hire," as that term is defined in the United States Copyright Act. The Employee agrees to assign and does hereby assign to the Company (or any person or entity designated by the Company) all Employee's right, title and interest in and to all Developments (other than Prior Developments listed on <u>Exhibit A,</u> if any) and all related patents, patent applications, copyrights and copyright applications to the maximum extent permitted by Section 2870 of the California Labor Code. The Employee understands that the provisions of this Agreement requiring assignment of Developments to the Company do not apply to any invention which qualifies fully under the provisions of California Labor Code Section 2870 (attached hereto as <u>Exhibit B).</u> The Employee also hereby waives all claims to moral rights in any Developments.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee agrees to cooperate fully with the Company, both during and after Employee's employment with the Company, with respect to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights (both in the United States and foreign countries) relating to Developments. The Employee shall sign all papers, including, without limitation, copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers of attorney, which the Company may deem necessary or desirable in order to protect its rights and interests in any Development. The Employee further agrees that if the Company is unable, after reasonable effort, to secure the signature of the Employee on any such papers, any executive officer of the Company shall be entitled to execute any such papers as the agent and the attorney-in-fact of the Employee, and the Employee hereby irrevocably designates and appoints each executive officer of the Company as Employee's agent and attorney-in-fact to execute any such papers on

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Employee's behalf, and to take any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in any Development, under the conditions described in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Obligations to Third Parties. The Employee represents that, except as the Employee has</u> <u>disclosed in writing to the Company on Exhibit A attached hereto, the Employee is not bound by the</u> <u>terms of any agreement with any previous employer or other party to refrain from using or disclosing any</u> <u>trade secret or confidential or proprietary information in the course of Employee's employment with the</u> <u>Company, to refrain from competing, directly or indirectly, with the business of such previous employer</u> <u>or any other party or to refrain from soliciting employees, customers or suppliers of such previous</u> <u>employer or other party. The Employee further represents that Employee's performance of all the terms of</u> <u>this Agreement and the performance of Employee's duties as an employee of the Company do not and</u> <u>will not conflict with or breach any agreement with any prior employer or other party (including, without</u> <u>limitation, any nondisclosure or non-competition agreement), and that the Employee will not disclose to</u> <u>the Company or induce the Company to use any confidential or proprietary information or material</u> <u>belonging to any previous employer or others.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Scope of Disclosure Restrictions. Nothing in this Agreement or elsewhere prohibits the</u> <u>Employee from reporting possible violations of state or federal law or regulation to any government</u> <u>agency, regulator, or legal authority, or making other disclosures that are protected under the</u> <u>whistleblower provisions of state or federal law or regulation. The Employee is not required to notify the</u> <u>Company that the Employee has made any such reports or disclosures; provided, however, that nothing</u> <u>herein authorizes the disclosure of information the Employee obtained through a communication that was</u> <u>subject to the attorney-client privilege, unless disclosure of the information would otherwise be permitted</u> <u>by an applicable law or rule. Further, pursuant to the Defend Trade Secrets Act: "An individual shall not</u> <u>be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade</u> <u>secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or</u> <u>indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected</u> <u>violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if</u> <u>such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for</u> <u>reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and</u> <u>use the trade secret information in the court proceeding, if the individual (A) files any document</u> <u>containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court</u> <u>order."</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>United States Government Obligations. The Employee acknowledges that the Company</u> <u>from time to time may have agreements with other persons or with the United States Government, or</u> <u>agencies thereof, which impose obligations or restrictions on the Company regarding inventions made</u> <u>during the course of work under such agreements or regarding the confidential nature of such work. The</u> <u>Employee agrees to be bound by all such obligations and restrictions which are made known to the</u> <u>Employee and to take all action necessary to discharge the obligations of the Company under such</u> <u>agreements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Equitable Remedies.</u> The Employee acknowledges that the restrictions contained in this Agreement are necessary for the protection of the business and goodwill of the Company and are considered by the Employee to be reasonable for such purpose. The Employee agrees that any breach or threatened breach of this Agreement is likely to cause the Company substantial and irrevocable damage which is difficult to measure. Therefore, in the event of any such breach or threatened breach, the Employee agrees that the Company, in addition to such other remedies which may be available, shall have the right to obtain an injunction from a court restraining such a breach or threatened breach without

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posting a bond and the right to specific performance of the provisions of this Agreement and the Employee hereby waives the adequacy of a remedy at law as a defense to such relief.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure of this Agreement.</u> The Employee hereby authorizes the Company to notify others, including but not limited to customers of the Company and any of the Employee's future employers or prospective business associates, of the terms and existence of this Agreement and the Employee's continuing obligations to the Company hereunder.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Not Employment Contract.</u> The Employee acknowledges that this Agreement does not constitute a contract of employment, does not imply that the Company will continue Employee's employment for any period of time and does not change the at-will nature of Employee's employment.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns.</u> This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company's assets or business, provided, however, that the obligations of the Employee are personal and shall not be assigned by Employee.

The Employee expressly consents to be bound by the provisions of this Agreement for the benefit of the Company or any subsidiary or affiliate thereof to whose employ the Employee may be transferred without the necessity that this Agreement be re-signed at the time of such 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability.</u> In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waivers.</u> No delay or omission by the Company in exercising any right under this Agreement will operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion is effective only in that instance and will not be construed as a bar to or waiver of any right on any other occasion.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law.</u> This Agreement shall be governed by and construed in accordance with the laws of the State of California (without reference to the conflicts of laws provisions thereof). Any action, suit, or other legal proceeding which is commenced to resolve any matter arising under or relating to any provision of this Agreement shall be commenced only in a court of the State of California (or, if appropriate, a federal court located within the Northern District of California), and the Company and the Employee each consents to the jurisdiction of such a court.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement; Amendment.</u> This Agreement supersedes all prior agreements, written or oral, between the Employee and the Company relating to the subject matter of this Agreement. This Agreement may not be modified, changed or discharged in whole or in part, except by an agreement in writing signed by the Employee and the Company. The Employee agrees that any change or changes in Employee's duties, salary or compensation after the signing of this Agreement shall not affect the validity or scope 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;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Captions.</u> The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have executed the Invention and Non-Disclosure Agreement as of the date and year first above written.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **FERVO ENERGY COMPANY** | **FERVO ENERGY COMPANY** |
| By: | &nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
|  | President |

---

---

| | |
|:---|:---|
| **EMPLOYEE:** | **EMPLOYEE:** |
| | /s/Jack Norbeck |
|  | Name: Jack Norbeck |

---

**SIGNATURE PAGE TO INVENTION AND NON-DISCLOSURE AGREEMENT**

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**EXHIBIT A**

**LIST OF PRIOR INVENTIONS AND ORIGINAL WORKS OF AUTHORSHIP EXCLUDED UNDER SECTION 3(A) OR CONFLICTING AGREEMENTS DISCLOSED UNDER SECTION 4**

TITLE DATE IDENTIFYING NUMBER OR BRIEF DESCRIPTION <br> 

Except as indicated above on this <u>Exhibit A,</u> I have no Prior Developments to disclose pursuant to Section 3(a) of this Agreement and no agreements to disclose pursuant to Section 4 of this Agreement.

---

| | |
|:---|:---|
| **EMPLOYEE:** | **EMPLOYEE:** |
| By: | /s/ Jack Norbeck |
|  | Name: Jack Norbeck |

---

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**EXHIBIT B**

**CALIFORNIA LABOR CODE SECTION 2870**

**INVENTION ON OWN TIME - EXEMPTION FROM AGREEMENT**

THIS IS TO NOTIFY EMPLOYEE, IN ACCORDANCE WITH SECTION 2872 OF THE CALIFORNIA LABOR CODE, THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a)**Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)**Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)**Result from any work performed by the employee for his or her employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b)**To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

The foregoing limited exclusion does not apply to any patent or invention covered by a contract between the Company and the United States or any of its agencies requiring full title to such patent or invention to be in the United States.

## Exhibit 10.6

**Exhibit 10.6**

**FERVO ENERGY COMPANY**

**609 MAIN STREET, FLOOR 25**

**HOUSTON, TX 77002**

5/28/2021

**David Ulrey**

Dear David:

On be half of Fervo Energy Company, a Delaware corporation (the "**Company**"**),** I am pleased to offer you employment with the Company. The purpose of this letter is to summarize the terms of your employment with the Company, should you accept our offer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;You will be employed to serve on a full-time basis as Chief Financial Officer, effective 6/16/2021. As Chief Financial Officer, you will be responsible for the financial operations of the company, including project fundraising, financial planning and analysis, budgeting, strategy, and other duties that may arrive from time to time. You will report to the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Your base salary will be at the rate of $16,666.67, payable on the last day of each calendar month, subject to tax and other withholdings as required by law. Such base salary may be adjusted from time to time in accordance with normal business practice and in the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;You may participate in any and all bonus and benefit programs that the Company establishes and makes available to its employees from time to time, provided you are eligible under (and subject to all provisions of) the plan documents governing those programs. The bonus and benefit programs made available by the Company, and the rules, terms and conditions for participation in such benefit plans, may be changed by the Company at any time without advance notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The Company does not track or limit employee vacation time or sick days, and you will not accrue any vacation time or sick time. Subject to the consent of your supervisor for planned absences, take the time off you need to operate at peak performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;As a condition of employment, you will be required to execute an Invention and Non-Disclosure Agreement in the form attached as <u>Exhibit A.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;You represent that you are not bound by any employment contract, restrictive covenant or other restriction preventing (or that purports to prevent) you from entering into employment with or carrying out your responsibilities for the Company, or which is in any way inconsistent with the terms of this letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;You agree to provide to the Company, within three days of your hire date, documentation of your eligibility to work in the United States, as required by the Immigration

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Reform and Control Act of 1986. You may need to obtain a work visa in order to be eligible to work in the United States. If that is the case, your employment with the Company will be conditioned upon your obtaining a work visa in a timely manner as determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;This letter shall not be construed as an agreement, either expressed or implied, to employ you for any stated term, and shall in no way alter the Company's policy of employment at will, under which both you and the Company remain free to terminate the employment relationship, with or without cause, at any time, with or without notice. Although your job duties, title, compensation and benefits, as well as the Company's personnel policies and procedures, may change from time to time, the "at-will" nature of your employment may only be changed by a written agreement signed by you and CEO, which expressly states the intention to modify the at-will nature of your employment. Similarly, nothing in this letter shall be construed as an agreement, either express or implied, to pay you any compensation or grant you any benefit beyond the end of your employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;In return for the compensation payments set forth in this letter, you agree to devote your full business time, best efforts, skill, knowledge, attention, and energies to the advancement of the Company's business and interests and to the performance of your duties and responsibilities as an employee of the Company and not to engage in any other business activities without prior approval from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;As an employee of the Company, you will be required to comply with all Company policies and procedures. Violations of the Company's policies may lead to immediate termination of your employment. Further, the Company's premises, including all workspaces, furniture, documents, and other tangible materials, and all information technology resources of the Company (including computers, data and other electronic files, and all internet and email) are subject to oversight and inspection by the Company at any time. Company employees should have no expectation of privacy with regard to any Company premises, materials, resources or information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;This offer letter is your formal offer of employment and supersedes any and all prior or contemporaneous agreements, discussions and understandings, whether written or oral, relating to the subject matter of this letter or your employment with the Company. The resolution of any disputes under this letter will be governed by the laws of the State of California.

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If you agree with the provisions of this letter, please sign the enclosed duplicate of this letter in the space provided below and return it to Fervo Energy Company, by May 28, 2021. If you do not accept this offer by May 28, 2021, this offer will be revoked.

---

| | |
|:---|:---|
| Very Truly Yours, | Very Truly Yours, |
| **Fervo Energy Company** | **Fervo Energy Company** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| By: | Timothy Latimer |
|  | CEO |

---

------

The foregoing correctly sets forth the terms of my employment by Fervo Energy Company.

---

| | |
|:---|:---|
| Date**<u>:</u> &nbsp;&nbsp;&nbsp;&nbsp;**<u>5/28/2021</u> | /s/ David Ulrey |
| | David Ulrey |

---

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**EXHIBIT A**

**INVENTION AND NON-DISCLOSURE AGREEMENT**

------

**FERVO ENERGY COMPANY**

**INVENTION AND NON-DISCLOSURE AGREEMENT**

This Invention and Non-Disclosure Agreement (this "**Agreement**") made this [ 26th ] day of [ January&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] [ 2024 ], is by and between Fervo Energy Company, a Delaware corporation (the "**Company**"), and [ David Ulrey &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] (the "**Employee**").

In consideration of the employment or continued employment of the Employee by the Company, the Employee and the Company agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<u>Condition of Employment</u>.

The Employee acknowledges that Employee's employment and/or the continuance of that employment with the Company is contingent upon Employee's agreement to sign and adhere to the provisions of this Agreement. The Employee further acknowledges that the nature of the Company's business is such that protection of its proprietary and confidential information is critical to the survival and success of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<u>Proprietary and Confidential Information</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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee agrees that all information and know-how, whether or not in writing, of a private, secret or confidential nature concerning the Company's business or financial affairs (collectively, "**Proprietary Information**") is and shall be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information may include discoveries, ideas, inventions, products, product improvements, product enhancements, processes, methods, techniques, formulas, compositions, compounds, negotiation strategies and positions, projects, developments, plans (including business and marketing plans), research data, clinical data, financial data (including sales costs, profits, pricing methods), personnel data obtained pursuant to the Employee's duties and responsibilities, computer programs (including software used pursuant to a license agreement), customer, prospect and supplier lists, and contacts at or knowledge of customers or prospective customers of the Company. Except as otherwise permitted by Section 5 below, the Employee will not disclose any Proprietary Information to any person or entity other than employees of the Company or use the same for any purposes (other than in the performance of Employee's duties as an employee of the Company) without written approval by an officer of the Company, either during or after Employee's employment with the Company, unless and until such Proprietary Information has become public knowledge without fault by the Employee. While employed by the Company, the Employee will use the Employee's best efforts to prevent unauthorized publication or disclosure of any of the Company's Proprietary Information.

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Employee's duties for the Company and shall not be copied or removed from the Company premises except in the pursuit ofthe business of the Company. All such materials or copies thereof and all tangible property of the Company in the custody or possession of the Employee shall be delivered to the Company, upon the earlier of (i) a request by the Company or (ii) termination of Employee's employment for any reason. After such delivery, the Employee shall not retain any such materials or copies thereof or any such tangible property.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee agrees that Employee's obligation not to disclose or to use information and materials of the types set forth in Sections 2(a) and 2(b) above, and Employee's obligation to return materials and tangible property, set forth in Section 2(b) above, also extends to such types of information, materials and tangible property of customers of the Company or suppliers to the Company or other third parties who may have disclosed or entrusted the same to the Company or to the Employee in the course of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<u>Developments</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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee has attached hereto, as <u>Exhibit A</u>, a list describing all discoveries, ideas, inventions, improvements, enhancements, processes, methods, techniques, developments, software, and works of authorship, whether patentable or not, which were created, made, conceived or reduced to practice by the Employee prior to the Employee's employment by the Company and which are owned by Employee, which relate directly or indirectly to the current or anticipated future business of the Company, and which are not assigned to the Company hereunder (collectively, "**Prior Developments**"); or, if no such list is attached, Employee represents that there are no Prior Developments. Employee agrees not to incorporate any Prior Developments into any Company product, material, process or service without prior written consent of an officer of the Company. If Employee does incorporate any Prior Development into any Company product, material, process or service, Employee hereby grants to the Company a non-exclusive, worldwide, perpetual, transferable, irrevocable, royalty-free, fully-paid right and license to make, have made, use, offer for sale, sell, import, reproduce, modify, prepare derivative works, display, perform, transmit, distribute and otherwise exploit such Prior Development and to practice any method related thereto.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee will make full and prompt disclosure to the Company of all discoveries, ideas, inventions, improvements, enhancements, processes, methods, techniques, developments, software, and works of authorship, whether patentable or not, which are created, made, conceived or reduced to practice by Employee or under Employee's direction or jointly with others during Employee's employment by the Company, whether or not during normal working hours or on the premises of the Company (all of which are collectively referred to in this Agreement as "**Developments**"). The Employee acknowledges that each original work of authorship which is made by the Employee (solely or jointly with others) within the scope of and during the period of Employee's employment with the Company and which is protectable by copyright is a "work made for hire," as that term is defined in the United States Copyright Act. The Employee agrees to assign and does hereby assign to the Company (or any person or entity designated by the Company) all Employee's right, title and interest in and to all Developments (other than Prior Developments listed on <u>Exhibit A</u>, if any) and all related patents, patent applications, copyrights and copyright applications. However, this Section 3(b) shall not apply to

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Developments which do not relate to the business or research and development conducted or planned to be conducted by the Company at the time such Development is created, made, conceived or reduced to practice and which are made and conceived by the Employee not during normal working hours, not on the Company's premises and not using the Company's tools, devices, equipment or Proprietary Information. The Employee understands that, to the extent this Agreement shall be construed in accordance with the laws of any state which precludes a requirement in an employee agreement to assign certain classes of inventions made by an employee, this Section 3(b) shall be interpreted not to apply to any invention which a court rules and/or the Company agrees falls within such classes. The Employee also hereby waives all claims to moral rights in any Developments.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Employee agrees to cooperate fully with the Company, both during and after Employee's employment with the Company, with respect to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights (both in the United States and foreign countries) relating to Developments. The Employee shall sign all papers, including, without limitation, copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers of attorney, which the Company may deem necessary or desirable in order to protect its rights and interests in any Development. The Employee further agrees that if the Company is unable, after reasonable effort, to secure the signature of the Employee on any such papers, any executive officer of the Company shall be entitled to execute any such papers as the agent and the attorney-in-fact of the Employee, and the Employee hereby irrevocably designates and appoints each executive officer of the Company as Employee's agent and attorney-in-fact to execute any such papers on Employee's behalf, and to take any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in any Development, under the conditions described in this sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<u>Obligations to Third Parties</u>.

The Employee represents that, except as the Employee has disclosed in writing to the Company on <u>Exhibit A</u> attached hereto, the Employee is not bound by the terms of any agreement with any previous employer or other party to refrain from using or disclosing any trade secret or confidential or proprietary information in the course of Employee's employment with the Company, to refrain from competing, directly or indirectly, with the business of such previous employer or any other party or to refrain from soliciting employees, customers or suppliers of such previous employer or other party. The Employee further represents that Employee's performance of all the terms of this Agreement and the performance of Employee's duties as an employee of the Company do not and will not conflict with or breach any agreement with any prior employer or other party (including, without limitation, any nondisclosure or non-competition agreement), and that the Employee will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<u>Scope of Disclosure Restrictions</u>.

Nothing in this Agreement prohibits the Employee from communicating with government agencies about possible violations of federal, state, or local laws or otherwise providing information to government agencies, filing a complaint with government agencies, or participating in government agency investigations or proceedings. The Employee is not required to notify the Company of any such communications; provided, however, that nothing herein authorizes the disclosure of information the Employee obtained through a communication that was subject to the attorney-client privilege. Further, notwithstanding the Employee's confidentiality and nondisclosure obligations, the Employee is hereby advised as follows pursuant to the Defend Trade Secrets Act: "An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<u>United States Government Obligations</u>.

The Employee acknowledges that the Company from time to time may have agreements with other persons or with the United States Government, or agencies thereof, which impose obligations or restrictions on the Company regarding inventions made during the course of work under such agreements or regarding the confidential nature of such work. The Employee agrees to be bound by all such obligations and restrictions which are made known to the Employee and to take all action necessary to discharge the obligations of the Company under such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Equitable Remedies</u>. The Employee acknowledges that the restrictions contained in this Agreement are necessary for the protection of the business and goodwill of the Company and are considered by the Employee to be reasonable for such purpose. The Employee agrees that any breach or threatened breach of this Agreement is likely to cause the Company substantial and irrevocable damage which is difficult to measure. Therefore, in the event of any such breach or threatened breach, the Employee agrees that the Company, in addition to such other remedies which may be available, shall have the right to obtain an injunction from a court restraining such a breach or threatened breach without posting a bond and the right to specific performance of the provisions of this Agreement and the Employee hereby waives the adequacy of a remedy at law as a defense to such relief.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure of this Agreement</u>. The Employee hereby authorizes the Company to notify others, including but not limited to customers of the Company and any of the Employee's future employers or prospective business associates, of the terms and existence of this Agreement and the Employee's continuing obligations to the Company hereunder.

------

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Not Employment Contract</u>. The Employee acknowledges that this Agreement does not constitute a contract of employment, does not imply that the Company will continue Employee's employment for any period of time and does not change the at-will nature of Employee's employment.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company's assets or business, provided, however, that the obligations of the Employee are personal and shall not be assigned by Employee. The Employee expressly consents to be bound by the provisions of this Agreement for the benefit of the Company or any subsidiary or affiliate thereof to whose employ the Employee may be transferred without the necessity that this Agreement be re-signed at the time of such 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waivers</u>. No delay or omission by the Company in exercising any right under this Agreement will operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion is effective only in that instance and will not be construed as a bar to or waiver of any right on any other occasion.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas (without reference to the conflicts of laws provisions thereof). Any action, suit, or other legal proceeding which is commenced to resolve any matter arising under or relating to any provision of this Agreement shall be commenced only in a court of the State of Texas (or, if appropriate, a federal court located within the Southern District of Texas), and the Company and the Employee each consents to the jurisdiction of such a court. The Company and the Employee each hereby irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding arising under or relating to any provision 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;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement; Amendment</u>. This Agreement supersedes all prior agreements, written or oral, between the Employee and the Company relating to the subject matter of this Agreement. This Agreement may not be modified, changed or discharged in whole or in part, except by an agreement in writing signed by the Employee and the Company. The Employee agrees that any change or changes in Employee's duties, salary or compensation after the signing of this Agreement shall not affect the validity or scope 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;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Captions</u>. The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

[Remainder of Page Intentionally Left Blank]

------

THE EMPLOYEE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

---

| | | | |
|:---|:---|:---|:---|
| | | **FERVO ENERGY COMPANY** | **FERVO ENERGY COMPANY** |
| Date: | &nbsp;&nbsp;&nbsp;&nbsp;January 29, 2024 | By: | /s/ Miranda Wright |
|  |  | Miranda Wright | Miranda Wright |
|  |  | Director of People Operations | Director of People Operations |

---

---

| | | |
|:---|:---|:---|
| | | **EMPLOYEE** |
| Date: | &nbsp;&nbsp;&nbsp;&nbsp;January 26, 2024 | /s/ David Ulrey |
| | | [David Ulrey&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] |

---

**SIGNATURE PAGE TO INVENTION AND NON-DISCLOSURE AGREEMENT**

------

**EXHIBIT A**

**LIST OF PRIOR INVENTIONS AND ORIGINAL WORKS OF AUTHORSHIP EXCLUDED**

**UNDER SECTION 3(A) OR CONFLICTING AGREEMENTS DISCLOSED UNDER SECTION 4**

---

| | | |
|:---|:---|:---|
| Title | Date | Identifying Number or Brief Description |
| **[&nbsp;&nbsp;&nbsp;&nbsp;]** | **[&nbsp;&nbsp;&nbsp;&nbsp;]** | **[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]** |

---

Except as indicated above on this <u>Exhibit A</u>, I have no Prior Developments to disclose pursuant to Section 3(a) of this Agreement and no agreements to disclose pursuant to Section 4 of this Agreement.

---

| |
|:---|
| **EMPLOYEE** |
| /s/ David Ulrey |
| [David Ulrey&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] |

---

## Exhibit 10.9

**Exhibit 10.9**

**Execution Version**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**CREDIT AGREEMENT**

Dated as of November 20, 2024

between

**FERVO HOLDCO LLC,**

as the Borrower,

and

**MERCURIA ENERGY TRADING SA,**

as a Lender

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | **Page** | **Page** |
| Article I Defined Terms and Interpretations | Article I Defined Terms and Interpretations | 1 |
| Section 1.1 | Defined Terms | 1 |
| Section 1.2 | Exhibits and Schedules | 16 |
| Section 1.3 | Amendment of Defined Instruments | 16 |
| Section 1.4 | References and Titles | 16 |
| Section 1.5 | Calculations and Determinations | 17 |
| Section 1.6 | Divisions | 17 |
| Article II Commitments and Borrowings | Article II Commitments and Borrowings | 17 |
| Section 2.1 | Term Loan Commitments | 17 |
| Section 2.2 | Term Loans | 17 |
| Section 2.3 | Disbursements | 18 |
| Section 2.4 | Notes | 18 |
| Section 2.5 | [Reserved] | 18 |
| Section 2.6 | Interest | 18 |
| Section 2.7 | Increased Costs | 19 |
| Section 2.8 | Fees | 20 |
| Section 2.9 | Mandatory Prepayments | 20 |
| Section 2.10 | Optional Prepayments; Commitment Reductions | 21 |
| Article III Payments to the Lender | Article III Payments to the Lender | 22 |
| Section 3.1 | General Procedures | 22 |
| Section 3.2 | Place of Payment | 22 |
| Section 3.3 | Taxes | 22 |
| Article IV Conditions Precedent | Article IV Conditions Precedent | 26 |
| Section 4.1 | Conditions Precedent to Effective Date | 26 |
| Section 4.2 | Conditions Precedent to each Borrowing | 27 |
| Article V Representations and Warranties of Borrower | Article V Representations and Warranties of Borrower | 28 |
| Section 5.1 | Organization; Powers | 28 |
| Section 5.2 | Authority; Enforceability | 28 |
| Section 5.3 | Approvals; No Conflicts | 28 |
| Section 5.4 | No Default | 28 |
| Section 5.5 | Litigation | 29 |
| Section 5.6 | Compliance with Laws | 29 |
| Section 5.7 | Investment Borrower Act | 29 |
| Section 5.8 | Taxes | 29 |
| Section 5.9 | Disclosure; No Material Misstatements | 29 |
| Section 5.10 | Use of Proceeds | 29 |
| Section 5.11 | Solvency | 29 |

---

------

**TABLE OF CONTENTS**

(continued)

---

| | | |
|:---|:---|:---|
| | **Page** | **Page** |
| Section 5.12 | Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions | 30 |
| Section 5.13 | Subsidiaries | 30 |
| Section 5.14 | ERISA; Employees | 30 |
| Section 5.15 | No Material Adverse Effect | 30 |
| Section 5.16 | *Pari Passu* Ranking | 31 |
| Section 5.17 | No Material Liabilities | 31 |
| Section 5.18 | Deposit Account and Security Accounts | 31 |
| Section 5.19 | Power Purchase Agreements | 31 |
| Section 5.20 | Interconnection Agreements | 31 |
| Article VI Affirmative Covenants | Article VI Affirmative Covenants | 31 |
| Section 6.1 | Financial Statements; Other Information | 32 |
| Section 6.2 | Existence; Conduct of Business | 35 |
| Section 6.3 | Payment of Taxes | 35 |
| Section 6.4 | Books and Records; Inspection Rights | 35 |
| Section 6.5 | Compliance with Laws | 35 |
| Section 6.6 | Further Assurances | 35 |
| Section 6.7 | Sanctions | 36 |
| Section 6.8 | Insurance | 36 |
| Section 6.9 | *Pari Passu* Ranking; Security | 36 |
| Section 6.10 | Pledge of Additional Equity Interests; Exclusivity | 36 |
| Section 6.11 | Use of Proceeds | 37 |
| Section 6.12 | Cash Management | 37 |
| Section 6.13 | Accounts | 37 |
| Section 6.14 | Power Purchase Agreements | 37 |
| Section 6.15 | Financial Covenants | 37 |
| Section 6.16 | Fiscal Year; GAAP | 38 |
| Article VII Negative Covenants | Article VII Negative Covenants | 38 |
| Section 7.1 | Debt | 38 |
| Section 7.2 | Liens | 39 |
| Section 7.3 | Restricted Payments | 39 |
| Section 7.4 | Investments | 40 |
| Section 7.5 | Use of Proceeds | 40 |
| Section 7.6 | Fundamental Changes; Mergers; Etc | 40 |
| Section 7.7 | Transactions with Affiliates | 40 |
| Section 7.8 | Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions | 40 |
| Section 7.9 | Entry and Amendments to Organizational Documents and Certain Agreements | 41 |
| Section 7.10 | Change in Business | 41 |

---

II

------

**TABLE OF CONTENTS**

(continued)

---

| | | |
|:---|:---|:---|
| | **Page** | **Page** |
| Section 7.11 | Consolidation, Merger; Etc | 42 |
| Section 7.12 | Permitted Dispositions | 42 |
| Section 7.13 | Modification of Certain Agreements | 42 |
| Section 7.14 | Accounts; Depositary Agreement | 43 |
| Article VIII Events of Default and Remedies | Article VIII Events of Default and Remedies | 43 |
| Section 8.1 | Events of Default | 43 |
| Section 8.2 | Consequences of Event of Default | 45 |
| Section 8.3 | Remedies | 45 |
| Section 8.4 | Application of Proceeds | 45 |
| Article IX Release of PPA Subsidiaries | Article IX Release of PPA Subsidiaries | 46 |
| Section 9.1 | Release of PPA Subsidiaries | 46 |
| Article X Miscellaneous | Article X Miscellaneous | 47 |
| Section 10.1 | Waivers and Amendments; Entire Agreement | 47 |
| Section 10.2 | Survival of Agreements; Cumulative Nature | 47 |
| Section 10.3 | Notices | 47 |
| Section 10.4 | Payment of Expenses; Indemnity | 48 |
| Section 10.5 | Successors and Assigns | 50 |
| Section 10.6 | Register | 51 |
| Section 10.7 | Confidentiality | 51 |
| Section 10.8 | Governing Law; Submission to Process | 52 |
| Section 10.9 | Limitation on Interest | 52 |
| Section 10.10 | Termination; Limited Survival | 52 |
| Section 10.11 | Severability | 53 |
| Section 10.12 | USA PATRIOT Act Notice | 53 |
| Section 10.13 | Waiver of Jury Trial, Punitive Damages, Etc | 53 |
| Section 10.14 | Conflicts | 54 |
| Section 10.15 | Counterparts; Electronic Transmission | 54 |
| Section 10.16 | Electronic Execution of Assignments and Certain Other Documents | 54 |
| Section 10.17 | Original Issue Discount | 54 |
| <u>Schedules and Exhibits:</u> | <u>Schedules and Exhibits:</u> |  |
| Schedule 5.5 | Litigation |  |
| Schedule 5.13 | Subsidiaries |  |
| Schedule 5.19 | Power Purchase Agreements |  |
| Schedule 5.20 | Interconnection Agreements |  |
| Schedule 6.1 | Appraisers |  |

---

III

------

**TABLE OF CONTENTS**

(continued)

---

| | |
|:---|:---|
| | **Page** |
| Exhibit A | Form of Borrowing Request |
| Exhibit B | Form of Solvency Certificate |
| Exhibit C-1 | Form of U.S. Tax Compliance Certificate |
| Exhibit C-2 | Form of U.S. Tax Compliance Certificate |
| Exhibit C-3 | Form of U.S. Tax Compliance Certificate |
| Exhibit C-4 | Form of U.S. Tax Compliance Certificate |

---

IV

------

**CREDIT AGREEMENT**

THIS CREDIT AGREEMENT is made as of November 20, 2024, by and between FERVO HOLDCO LLC, a Delaware limited liability company (the <u>"Borrower")</u> and MERCURIA ENERGY TRADING SA <u>("Mercuria"</u> or the <u>"Lender").</u>

**W I T N E S S E T H:**

WHEREAS, the Borrower has requested that the Lender extend, and the Lender has agreed to extend, on the terms and conditions set forth in this Agreement and the other Financing Documents, a term facility in an aggregate principal amount of forty million dollars ($40,000,000); and

WHEREAS, the Lender is willing to extend the credit described above to the Borrower on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto do hereby agree as follows:

**ARTICLE I**

**DEFINED TERMS AND INTERPRETATIONS**

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms.</u> As used in this Agreement, the following terms have the meanings specified below:

<u>"Additional Capital Source Investment"</u> means funds raised by the Parent after the Effective Date for the purpose of funding the development of the Projects, which may include but is not limited to: (i) a sale of Equity Interests of any Intermediate Holdco or PPA Subsidiary or (ii) a third party investment for the purpose of receiving Tax Credits available with respect to a Project.

<u>"Additional Capital Sources"</u> means (i) any Additional Capital Source Investment or (ii) a Tax Credit Purchase Transaction.

<u>"Adjusted Term SOFR"</u> means, with respect to any Loan for any Interest Period, an interest rate per annum equal to the sum of (a) the Term SOFR of such Interest Period plus (b)(i) 0.10% (10 basis points) for an Interest Period of one (1) month's duration and (ii) 0.20% (20 basis points) for an Interest Period of three (3) month's duration; <u>provided, however,</u> that if the rate per annum obtained shall be less than the Floor, the "Adjusted Term SOFR" shall be deemed to be the Floor for purposes of this Agreement.

<u>"Affiliate"</u> means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified; <u>provided</u> that in no event shall Mercuria or any of its Affiliates or any other investment funds sponsored or advised by or under common management with Mercuria or any of its Affiliates be considered an "Affiliate" of the Loan Parties or any of their respective Subsidiaries.

------

<u>"Agreement"</u> means this Credit Agreement, as the same may from time to time be amended, modified, supplemented or restated.

<u>"Anti-Corruption Laws"</u> means any law of any jurisdiction relating to corruption in which the Borrower performs business, including the United States Foreign Corrupt Practices Act of 1977, as amended, and where applicable, legislation relating to corruption enacted by member states and signatories implementing the OECD Convention Combating Bribery of Foreign Officials.

<u>"Anti-Money Laundering Laws"</u> means the U.S. Currency and Foreign Transaction Reporting Act of 1970, as amended, and all money laundering-related laws of the United States and other jurisdictions where the Borrower conducts business or owns assets, and any related or similar law issued, administered or enforced by any Governmental Authority.

<u>"Applicable Margin"</u> means seven and a half percent (7.50%).

<u>"Approved Project"</u> has the meaning given to such term in the LC Facility Agreement.

<u>"Asset Level Financing"</u> means a customary, non-recourse project finance style financing for the development, construction and operation of an Approved Project by a PPA Subsidiary that has (a) a debt-to-equity ratio of no greater than 70:30, and (b) would allow for the exercise by the Lender or Collateral Agent of any rights and remedies under the Pledge and Security Agreement upon an Event of Default hereunder; <u>provided</u> that, as of the Effective Date, the Cape Phase I Asset Level Financing shall be deemed to constitute an Asset Level Financing for purposes of this Agreement.

<u>"Availability Period"</u> means the period beginning on the Effective Date and ending on the Maturity Date.

<u>"Board"</u> means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

<u>"Borrower"</u> has the meaning given to such term in the preamble hereto.

<u>"Borrower Model"</u> means the financial model with the file name "Fervo Borrower Model (11.15.2024)."

<u>"Borrowing"</u> means the Loans made by the Lender required to make such Loans on the same Business Day and pursuant to the same Borrowing Request.

<u>"Borrowing Date"</u> means each date upon which a Borrowing is made (including the Effective Date).

<u>"Borrowing Request"</u> means a Loan request and certificate duly executed and delivered by a Responsible Officer of the Borrower substantially in the form of <u>Exhibit A</u> hereto.

<u>"Business Day"</u> means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City, New York are authorized or required by law to remain closed.

------

<u>"Cape Phase I Asset Level Financing"</u> means that certain Loan Agreement, dated as of August 13, 2024, by and among Cape Generation Station 1 LLC, a Delaware limited liability company <u>("Cape 1</u>"), Cape Generation Station 3 LLC, a Delaware limited liability company <u>("Cape 3")</u> and XRL ALC, LLC, a Delaware limited liability company <u>("XRC")</u> and the transactions, instruments, agreements, documents and writings contemplated thereunder, which for the avoidance of doubt shall include that certain Security Agreement, dated as of August 13, 2024, by and among Cape 1, Cape 3 and XRC and that certain Pledge and Security Agreement, dated as of August 13, 2024, by and between Cape Phase I HoldCo LLC, a Delaware limited liability company <u>("Cape Phase I HoldCo")</u> and XRC.

<u>"Cape Phase I Entities"</u> means Cape 1 and Cape 3.

<u>"Capital Leases"</u> means, in respect of any Person, all leases which are, in accordance with GAAP, recorded or required to be classified and accounted for as capital leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder. Any lease that was or would be treated as an operating lease under GAAP on the Effective Date shall be treated as an operating lease for all purposes under this Agreement, and any lease that was or would be treated as a capital lease under GAAP on the Effective Date shall be treated as a capital lease for all purposes under this Agreement, in each case, regardless of any change in GAAP after the Effective Date.

<u>"Cash Equivalent Investment"</u> means (a) securities or other obligations of, or fully guaranteed by, the United States of America or any agency or instrumentality thereof, in each case having maturities and/or reset dates of not more than twenty four (24) months from the date of acquisition thereof, (b) securities issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof or any political subdivision of any such state or any public instrumentality thereof having maturities of not more than twenty four (24) months from the date of acquisition thereof and, at the time of acquisition, having an investment grade rating generally obtainable from either S&P or Moody's (or, if at any time neither S&P nor Moody's shall be rating such obligations, then from another nationally recognized rating service), (c) commercial paper rated A-3 or better by S&P or P-3 or better by Moody's, (d) demand deposit accounts maintained in the ordinary course of business (or, if at any time neither S&P nor Moody's shall be rating such obligations, an equivalent rating from another nationally recognized rating service), (e) certificates of deposit issued by and time deposits with commercial banks (whether domestic or foreign) having capital and surplus in excess of one hundred million dollars ($100,000,000); <u>provided,</u> in each case, that the same provides for payment of both principal and interest (and not principal alone or interest alone) and is not subject to any contingency regarding the payment of principal or interest, and (f) marketable short-term money market and similar funds (i) either having assets in excess of five hundred million dollars ($500,000,000) or (ii) having a rating of at least A-3 or P-3 from either S&P or Moody's (or, if at any time neither S&P nor Moody's shall be rating such obligations, an equivalent rating from another nationally recognized rating service).

<u>"Casualty Event"</u> means any loss, casualty or other insured or uninsured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Borrower or any Subsidiary that causes the Property to be rendered unfit for use in the business of the Borrower or any such Subsidiary for any reason whatsoever.

------

<u>"Change in Control"</u> means (a) the Parent ceases to own and Control one hundred percent (100%) of the Equity Interests of the Borrower; (b) the Borrower ceases to directly own and Control fifty-one percent (51%) of the Equity Interests of and Control any Intermediate Holdco; or (c) the Intermediate Holdco ceases to directly or indirectly own fifty-one percent (51%) of the Equity Interests of and Control any Subsidiary that owns an Approved Project, except pursuant to a Disposition permitted pursuant to this Agreement.

<u>"Change in Law"</u> means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by the Lender with any written request, guideline or directive (whether or not having the force of law, but if not having the force of law then being one with which the relevant party would customarily comply) of any Governmental Authority made or issued after the date of this Agreement.

<u>"Code"</u> means the Internal Revenue Code of 1986, as amended from time to time, and any successor.

<u>"Collateral"</u> means the "Pledged Collateral" as defined in the Pledge and Security Agreement.

<u>"Collateral Agent"</u> means Mercuria Energy Trading SA or any permitted successor appointed pursuant to the Intercreditor Agreement.

<u>"Collateral Documents"</u> means the Pledge and Security Agreement, each Control Agreement and each other agreement executed and delivered by the Borrower, the PPA Subsidiaries and/or the Parent that creates (or purports to create) a first priority Lien upon the Collateral in favor of the Collateral Agent to secure any Secured Obligations (as defined in the Intercreditor Agreement); <u>provided</u> that, for the avoidance of doubt, no mortgages on real property shall be required by the Collateral Agent.

<u>"Commitment Fee"</u> has the meaning given to such term in <u>Section 2.8(a).</u>

<u>"Commitment Fee Percentage"</u> means two percent (2%) per annum.

<u>"Commitment Termination Event"</u> means (a) the occurrence of any Event of Default described in <u>Section 8.1(a)</u> to <u>Section 8.1(c)</u> or (b) the occurrence and continuance of any other Event of Default and either (i) the declaration of all or any portion of the Loans to be due and payable pursuant to <u>Section 8.2</u> or (ii) the giving of notice by the Lender to the Borrower that the Term Loan Commitments have been terminated.

<u>"Commodity Exchange Act"</u> means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

<u>"Confidential Information"</u> has the meaning given to such term in <u>Section 10.7(a).</u>

<u>"Control"</u> means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting

------

power, by contract or otherwise. <u>"Controlling"</u> and <u>"Controlled"</u> have meanings correlative thereto.

<u>"Control Agreement"</u> means an agreement in form and substance reasonably satisfactory to the Lender and the Collateral Agent which provides for the Collateral Agent to have"Control" (as defined in Section 8-106 of the UCC, as such term relates to investment property (other than certificated securities or commodity contracts), or as used in Section 9-106 of the UCC, as such term relates to commodity contracts, or as used in Section 9-104(a) of the UCC, as such term relates to Deposit Accounts).

<u>"Default"</u> means any event or condition that constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

<u>"Default Rate"</u> has the meaning given to such term in <u>Section 2.6(b).</u>

<u>"Deposit Account"</u> means a "deposit account" as that term is defined in Section 9-102(a) of the UCC.

<u>"Disposition"</u> or <u>"Dispose"</u> means a sale, lease or sublease (as lessor or sublessor), sale leaseback, assignment, conveyance, license, transfer or other disposition by a Person to, or any exchange of Property by such Person with, any other Person (including by way of a Fundamental Change), in one transaction or a series of transactions, of all or any part or portion of such former Person's businesses, assets and/or Properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including any Equity Interests.

<u>"dollar"</u> and the sign "<u>$</u>" mean lawful money of the United States of America.

<u>"Effective Date"</u> has the meaning set forth in <u>Section 4.1.</u>

------

<u>"Equity Interests"</u> means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.

<u>"Event of Default"</u> has the meaning given to such term in <u>Section 8.1.</u>

<u>"Excepted Liens"</u> means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Liens of the Collateral Agent on behalf of the Secured Parties under any Collateral Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Liens for Taxes, assessments or other governmental charges or levies, which are not delinquent, or which are being contested in good faith by appropriate action and for which adequate reserves have been established to the extent required by and in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights and remedies and burdening deposit accounts, securities accounts, any security entitlements carried therein or other funds maintained with a creditor depository institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Liens on cash or securities pledged to secure performance of tenders, surety and appeal bonds, government contracts, performance and return of money bonds, bids, trade contracts, leases, statutory obligations, regulatory obligations and other obligations of a like nature incurred in the ordinary course of business or otherwise constituting Investments permitted by <u>Section 7.4;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;judgment and attachment Liens not giving rise to an Event of Default under <u>Section</u> <u>8.1(i);</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Liens on the Parent's Property not constituting Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Liens created in the ordinary course of business in favor of banks and other financial institutions over credit balances of any bank accounts of the Borrower held at such banks or financial institutions, as the case may be, to facilitate the operation of cash pooling and/or interest set-off arrangements in respect of such bank accounts in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;Liens created pursuant to Asset Level Financings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;purchase money security interests in real property, improvements thereto or equipment hereafter acquired (or, in the case of improvements, constructed) by a Borrower not exceeding one million dollars ($1,000, 0000) in the aggregate at any one time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;carriers', warehousemen's, mechanics', materialmen's, repairmen's or other like Liens arising in the ordinary course of business that are not overdue for a period of more than thirty (30) days or that are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;pledges or deposits in the ordinary course of business in connection with public utility services provided to the Borrower or a Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;easements, rights-of-way, restrictions and other similar encumbrances affecting real property that, in the aggregate, are not substantial in amount, and that do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person, and any zoning or similar law or right reserved to or vested in any Governmental Authority to control or regulate the use of any real property that does not materially interfere with the ordinary conduct of the business of the Borrower and its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;Liens (i) of a collecting bank arising under Section 4-210 of the UCC on items in the course of collection, (ii) in favor of a banking institution arising as a matter of law encumbering deposits (including the right of setoff) that are customary in the banking industry, and (iii) in favor of an LC Issuer (as defined in the LC Facility Agreement) of an Acceptable Letter of Credit encumbering deposits that constitute Cash Collateral (as defined in the LC Facility Agreement) for such letters of credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;any interest or title of a lessor, grantor, sublessor, licensor or sublicensor under leases, subleases, easements, licenses or sublicenses permitted by this Agreement that are entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;leases, licenses, subleases or sublicenses granted to others in the ordinary course of business that do not (i) interfere in any material respect with the ordinary conduct of the business of the Borrower and its Subsidiaries, or (ii) secure any Debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;any other Liens in an aggregate amount not exceeding five hundred thousand dollars ($500,000).

<u>"Excluded Taxes"</u> means, with respect to the Lender, as the case may be, or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder or under any other Financing Document, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such recipient being organized under the laws of, or having its principal place of business or principal office in the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of the Lender, U.S. federal withholding tax that is imposed on amounts payable to or for the account of the Lender with respect to an applicable Term Loan Commitment or a payment under the Financing Documents pursuant to a law in effect on the date on which (i) the Lender acquires Term Loan Commitments or Financing Document or (ii) the Lender changes its principal place of business or principal office, except to the extent that the Lender (or its assignor, if any) was entitled, at the time of designation of a new principal place of business or principal office (or assignment), to receive additional amounts with respect to such withholding tax pursuant to <u>Section 3.3(a)</u> or <u>Section 3.3(c),</u> (c) Taxes attributable to such recipient's failure to comply with <u>Section 3.3(e),</u> and (d) any U.S. federal withholding Taxes imposed by FATCA.

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<u>"FATCA"</u> means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

<u>"Financial Officer"</u> means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person. Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Borrower.

<u>"Financing Documents"</u> means this Agreement, the LC Facility Agreement, the Collateral Documents, the Intercreditor Agreement, and all other agreements, certificates, documents or instruments from time to time executed or delivered in connection with or pursuant to any of the foregoing and designated as a "Financing Document".

<u>"Fiscal Quarter"</u> means any calendar quarter of a Fiscal Year.

<u>"Fiscal Year"</u> means any period of twelve (12) consecutive calender months beginning on January 1 (inclusive) and ending on December 31 (inclusive); each reference to a Fiscal Year with a number corresponding to any calendar year (e.g., the <u>"2024 Fiscal Year")</u> refers to the Fiscal Year ending on December 31 occurring during such calendar year.

<u>"Fitch"</u> means Fitch Ratings, Inc., together with its successors.

<u>"Floor"</u> means a rate of interest equal to three percent (3%).

<u>"Fundamental Change"</u> has the meaning given to such term in <u>Section 7.6.</u>

<u>"GAAP"</u> means generally accepted accounting principles in the United States of America as in effect from time to time subject to the terms and conditions set forth in <u>Section 1.5.</u>

<u>"Governmental Authority"</u> means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other governmental entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government having jurisdiction over the Borrower, the Lender or any of their assets.

<u>"Impairment Loss"</u> means a loss of paid-in equity at any Subsidiary of the Borrower due to an impairment event at such Subsidiary described in <u>Section 6.1(i)</u> which amount shall be determined by the Borrower in good faith in accordance with, and subject to the right of the Lenders to appoint an independent appraiser pursuant to, <u>Section 6.1(i).</u>

<u>"Indemnified Claims"</u> has the meaning assigned to it in <u>Section 10.4(b).</u>

<u>"Indemnified Taxes"</u> means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower hereunder or

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under any other Financing Document and (b) to the extent not otherwise described in <u>clause (a)</u> above, Other Taxes.

<u>"Initial Borrowing"</u> means the first Borrowing on the Effective Date.

<u>"Interconnection Agreement"</u> means any agreement listed on Schedule 5.20 as of the date hereof.

<u>"Intercreditor Agreement"</u> means that certain Collateral Agency and Intercreditor Agreement, dated as of the date hereof, among the Borrower, the Parent, the Collateral Agent, the Lender and other Secured Parties party thereto from time to time.

<u>"Interest Period"</u> means the period commencing on the date that is the first Business Day of each calendar month and ending on the last Business Day of such calendar month; <u>provided</u> that the initial Interest Period shall be deemed to have commenced on the Effective Date and ended on November 30, 2024.

<u>"Intermediate Holdco"</u> means each Subsidiary of the Borrower that Controls any PPA Subsidiary; for the avoidance of doubt, "Intermediate Holdco" includes each Subsidiary of the Borrower that Controls any Released PPA Subsidiaries.

<u>"Investment"</u> means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person (including any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the making of any deposit with, or advance, loan or capital contribution to, assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person; (c) the purchase or acquisition (in one or a series of transactions) of Property (other than Equity Interests) of another Person that constitutes a business unit or all or a substantial part of the business of such other Person; or (d) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other liability of any other Person and (without duplication) any amount committed to be advanced or extended to such Person.

<u>"Law"</u> means any statute, law, code, regulation, ordinance, rule, treaty, order, decree, permit, concession, franchise, license or official interpretive or advisory opinion relating to the foregoing of any Governmental Authority. Any reference to a Law includes any amendment or modification to such Law, and all regulations, rulings, and other Laws promulgated under such Law, in each case applicable to or binding on such Person or any of its property or assets or to which such Person or any of its property or assets is subject.

<u>"LC Facility Agreement"</u> means that certain Letter of Credit Facility Agreement, dated as of November 20, 2024, between Mercuria Energy Trading SA, as the LC Lender, and the Borrower, as the borrower thereunder.

<u>"LC Facility Exposure"</u> has the meaning given to such term in the LC Facility Agreement.

<u>"LC Lender"</u> has the meaning given to such term in the LC Facility Agreement.

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<u>"Lender"</u> has the meaning given to such term in the preamble.

<u>"Lender Change in Control"</u> has the meaning given to such term in <u>Section 10.5(c).</u>

<u>"Lien"</u> means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to the lien or security interest arising from a deed of trust, mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a Capital Lease, consignment, bailment for security purposes, easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations (or any Synthetic Lease Obligations having substantially the same economic effect as any of the foregoing).

<u>"Loan Party"</u> means the Borrower, each Intermediate Holdco and each PPA Subsidiary (until such PPA Subsidiary becomes a Released PPA Subsidiary in accordance with the terms hereto).

<u>"Material Adverse Effect"</u> means any event, condition or circumstance (including any recapture or disallowance of Tax Credits generated by an Approved Project or a Change in Law that results in any such Tax Credits no longer being available or eligible for sale or transfer) that has had or would reasonably be expected to have a material adverse effect on (a) the Properties, financial condition, businesses or operations of the Borrower and its Subsidiaries, taken as a whole, (b) the ability of the Borrower to perform fully any of its material obligations under any of the Financing Documents, (c) the validity or enforceability of the Financing Documents, or (d) the ability of the Collateral Agent or the other Secured Parties to enforce any of their material rights or remedies under the Financing Documents.

<u>"Maturity Date"</u> means the third (3<sup>rd</sup>) anniversary of the Effective Date.

<u>"Measuring Date"</u> means (a) the date on which a Borrowing Request is delivered, (b) the date on which Loans are prepaid pursuant to <u>Section 2.9,</u> (c) the date of a Disposition of Property, (d) the date on which a Loan Party enters into (i) an Asset Level Financing, or (ii) any third party Debt for borrowed money in excess of $10,000,000 and any refinancing thereof, and (e) the last Business Day of each of March, June, September and December.

<u>"Mercuria"</u> has the meaning given to such term in the preamble hereto.

<u>"Monthly Payment Date"</u> means the last Business Day of each calendar month.

<u>"Moody's"</u> means Moody's Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

<u>"Net Asset Value"</u> means, with respect to the Borrower as of any Measuring Date, the total of all assets of the Borrower as would generally be classified as such in accordance with (i) GAAP for balance sheet purposes, but not including right of use assets for land leases, less (ii) any Impairment Losses. For purposes of calculating the total assets of the Borrower, (i) the value of any PPA Subsidiary party to an Asset Level Financing or Additional Capital Source Investment shall be determined based on the net present value using a discount rate of fifteen percent (15%)

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of cash flows to equity reflected in the base case financial model delivered to the lenders or their agent or the investors, as applicable, in connection with such PPA Subsidiary's Asset Level Financing or Additional Capital Source Investment. <u>provided</u> that, if applicable, the base case financial model delivered to the lenders in connection with such PPA Subsidiary's Asset Level Financing will take precedence over the base case financial model delivered to the investors in connection with such PPA Subsidiary's Additional Capital Source Investment, and (ii) the value of any Intermediate Holdco party to an Additional Capital Source Investment shall be determined based on the net present value using a discount rate of fifteen percent (15%) of cash flows to equity reflected in the base case financial model delivered to the investors in connection with such Intermediate Holdco's Additional Capital Source Investment.

<u>''Net Disposition Proceeds"</u> means, with respect to any Disposition of any assets or property of any Loan Party, the excess of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the gross cash proceeds received by such Loan Party from any such Disposition and any cash payments when received in respect of promissory notes or other non-cash consideration delivered to such Loan Party in respect thereof, over

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the sum of (i) all reasonable and customary fees and expenses with respect to legal, investment banking, brokerage and accounting and other professional fees, sales commissions and disbursements and all other reasonable fees, expenses and charges, in each case actually incurred in connection with such Disposition, (ii) all Taxes and other governmental costs and expenses actually paid or estimated by the Borrower (in good faith) to be payable in cash in connection with such Disposition, and (iii) payments made by any Loan Party to retire Debt where payment of such Debt is required in connection with such Disposition.

<u>"Obligations"</u> has the meaning given to such term in the Intercreditor Agreement.

<u>"Organizational Documents"</u> means (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to such corporation's jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

<u>"Other Connection Taxes"</u> means, with respect to any recipient, Taxes imposed as a result of a present or former connection between such recipient and the jurisdiction imposing such Tax (other than connections arising from such recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Financing Document, or sold or assigned an interest in any Financing Document).

<u>"Other Taxes"</u> means any and all present or future stamp, court or documentary, intangible, recording or similar Taxes arising from any payment made under, from the execution, delivery,

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enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, this Agreement and any other Financing Document, except any such Taxes that are Other Connection Taxes imposed solely with respect to an assignment of Term Loan Commitments.

<u>"Parent"</u> means Fervo Energy Company, a Delaware corporation.

<u>"Patriot Act"</u> means the USA PATRIOT ACT (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended and supplemented from time to time.

<u>"Person"</u> means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

<u>"Pledge and Security Agreement"</u> means that certain Pledge and Security Agreement, dated as of the date hereof, between the Parent, the Borrower, each PPA Subsidiary party thereto, each Intermediate Holdco party thereto and the Collateral Agent.

<u>"Power Purchase Agreement"</u> means any agreement listed on <u>Schedule 5.19</u> as of the date hereof, or subsequently entered into in accordance with <u>Section 7.9(c)</u> hereof.

<u>"PPA Subsidiaries"</u> means each entity that has entered into a Power Purchase Agreement, as designated on <u>Schedule 5.13</u> (as the same is updated from time to time in accordance with <u>Section 5.13).</u>

<u>"Prohibited Party"</u> means any Person who is (or whose Affiliate is) a competitor of the Parent, the Borrower or any of its Subsidiaries, is engaged in the business of owning, developing, constructing and operating Projects such as those owned, developed, constructed and operated by the Parent, the Borrower or any of its Subsidiaries or who holds a similar evidence of Debt in other geothermal companies, other geothermal projects or other geothermal assets.

<u>"Project"</u> means a geothermal power generation facility including any energy management equipment, turbines, generators, condensers, cooling systems, gas removal systems and abatement systems, communication systems, connectors, meters, disconnects, switchgear and over current devices (including any replacement or additional parts included from time to time), all structures or improvements erected on the site, all alterations thereto or replacements thereof, all fixtures, attachments, appliances, equipment, machinery and other articles attached thereto, real property rights, warranties, interconnection rights, offtake agreements or Swap Agreements (including any swap implemented for purposes of hedging commodity price risk) and/or other contractual rights, in any stage of development, construction or operation.

<u>"Project Document"</u> means any agreement listed on <u>Schedule 5.19</u> or <u>Schedule 5.20</u> or any other contract to which the applicable PPA Subsidiary for such Project is a party with respect to the development, construction, and operation and maintenance of, and sales of and transmission of electricity or other assets from, such Project, along with all amendments and supplements thereto as of the date hereof, or subsequently entered into in accordance with Section 7.9(c) hereof, for which an Acceptable Letter of Credit has been posted and remains outstanding as of such date pursuant to this Agreement.

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<u>"Property"</u> means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including cash, securities, accounts and contract rights.

<u>"Register"</u> has the meaning given such term in <u>Section 10.6.</u>

<u>"Released PPA Subsidiary"</u> means (a) the Cape Phase I Entities and (b) a PPA Subsidiary that has complied with the relevant conditions set forth in <u>Section 9.1.</u>

<u>"Responsible Officer"</u> means, as to any Person, the chief executive officer, the president, any financial officer or any vice president of such Person. Unless otherwise specified, all references to a Responsible Officer herein mean a Responsible Officer of the Borrower.

<u>"Restricted Payment"</u> means (a) any dividend or other distribution (whether in cash, securities or other Property) to any Person other than the Borrower or any of its Subsidiaries with respect to any Equity Interests in the Borrower or any of its Subsidiaries, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any of its Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any of its Subsidiaries and (b) any payment of management fees, advisory fees or similar fees to any Affiliate of the Borrower other than the Borrower or any of its Subsidiaries by the Borrower or any of its Subsidiaries.

<u>"S&P"</u> means Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency.

<u>"Sanctioned Country"</u> means, at any time, a country, region or territory which is itself the target of country-wide or territory-wide Sanctions (as of the Effective Date, Crimea, the non-government controlled areas of the Zaporizhzhia and Kherson regions of Ukraine, the so-called Donetsk People's Republic and Luhansk People's Republic, Cuba, Iran, North Korea and Syria).

<u>"Sanctioned Person"</u> means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State or applicable non-U.S. Governmental Authority under Sanctions, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned fifty percent (50%) or more or controlled by any such Person or Persons described in the foregoing <u>clauses (a)</u> or <u>(b)</u>, or (d) any person otherwise the subject of Sanctions.

<u>"Sanctions"</u> means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or U.S. Department of State, the European Union or its Member States, or His Majesty's Treasury of the United Kingdom.

<u>"Secured Obligations"</u> has the meaning given to such term in the Intercreditor Agreement.

<u>"Secured Parties"</u> has the meaning given to such term in the Intercreditor Agreement.

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<u>"Securities Account"</u> means a "securities account" as that term is defined in Section 8-501 of the UCC.

<u>"Securities Act"</u> means the Securities Act of 1933, as amended.

<u>"SOFR"</u> means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

<u>"SOFR Administrator"</u> means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

<u>"Subsidiary"</u> means, with respect to any Person at any date (the "Owner Entity"), any other Person the accounts of which would be consolidated with those of the Owner Entity in the Owner Entity's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which Equity Interests representing more than fifty percent (50%) of the equity or more than fifty percent (50%) of the ordinary voting power (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) or, in the case of a partnership, any general partnership interests are, as of such date, owned, controlled or held, or (b) the management decisions of which, as of such date, are otherwise controlled, in each case, directly or indirectly through one or more intermediaries, or both, by the Owner Entity. Unless otherwise expressly provided, all references herein to a "Subsidiary" means a direct or indirect Subsidiary of the Borrower.

<u>"Swap Agreement"</u> means any agreement with respect to any swap, forward, future or derivative transaction or option or similar transaction, whether exchange traded, "over-the-counter" or otherwise (for the avoidance of doubt, including on a prepaid basis), involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act).

<u>"Synthetic Lease Obligation"</u> means the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but, upon the insolvency or bankruptcy of such Person, would be characterized as the Debt of such Person (without regard to accounting treatment).

<u>"Tax"</u> or <u>"Taxes"</u> means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

<u>"Tax Credit"</u> means the production tax credit under Section 45 of the Code or the investment tax credit under Section 48 of the Code.

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<u>"Tax Credit Documents"</u> means the definitive documents evidencing the purchase by a Tax Credit Purchaser of Tax Credits, including without limitation as any of the following may be applicable: (i) a Tax Credit Purchase Agreement and (ii) all other agreements and other documents contemplated thereby or in connection therewith.

<u>"Tax Credit Purchase Agreement"</u> means any Tax Credit purchase agreement or similar agreement to be entered into in connection with a Tax Credit Purchase Transaction.

<u>"Tax Credit Purchase Transaction"</u> means (a) the sale of Tax Credits generated by a Project pursuant to and in accordance with a Tax Credit Purchase Agreement and (b) the execution and delivery of the definitive Tax Credit Documents to the Lender.

<u>"Tax Credit Purchaser"</u> means the buyer or purchaser of Tax Credits pursuant to a Tax Credit Purchase Agreement.

<u>"Term Loan"</u> has the meaning given to such term in <u>Section 2.1.</u>

<u>"Term Loan Commitment"</u> means, the obligation of the Lender to make Term Loans to the Borrower up to an aggregate principal amount equal to forty million dollars ($40,000,000).

<u>"Term SOFR"</u> means, for any calculation with respect to a Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the <u>"Periodic Term SOFR Determination Day")</u> that is two (2) U.S. Government Securities Business Days prior to the first (1<sup>st</sup>) day of such Interest Period, as such rate is published by the Term SOFR Administrator; <u>provided, however,</u> that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day, the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and <u>provided,</u> <u>further,</u> that if Term SOFR determined as provided above (including pursuant to the proviso under <u>clause (a)</u> or <u>clause (b)</u> above) shall ever be less than the Floor, then Term SOFR shall be deemed to be the Floor.

<u>"Term SOFR Administrator"</u> means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Lender in its reasonable discretion).

<u>"Term SOFR Reference Rate"</u> means the forward-looking term rate based on SOFR.

<u>"Total Consolidated Capital"</u> means, as of the date of any determination, the sum, without duplication, of (a) the Total Exposure Amount and (b) equity capital contributions made to the Borrower as of the date of calculation.

<u>"Total Debt"</u> means, without duplication, Debt of the Borrower and its Subsidiaries (taken as a whole) determined on a consolidated basis in accordance with GAAP (which, for the

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avoidance of doubt, shall exclude all Debt described in <u>clause (b)</u> of the definition thereof, other than Debt that falls under the definition of the Total Exposure Amount) outstanding at the date of any determination thereof including the Total Exposure Amount.

<u>"Total Exposure Amount"</u> means, on any date of determination, the sum of (a) the outstanding principal amount of all Term Loans, plus (b) the LC Facility Exposure.

<u>"Transaction Expenses"</u> means (a) any expenses incurred by the Borrower or any Subsidiary in connection with the consummation of the Transactions and (b) any other fees or expenses incurred or paid in connection with the transactions contemplated by this Agreement or any other Financing Document, including all fees payable to the Lender, its counsel and consultants and any legal and auditing fees.

<u>"Transactions"</u> means the execution, delivery and performance by the Borrower of this Agreement and each other Financing Document to which it is a party, including the extensions of credit under the Loans, extensions of credit under the LC Facility Agreement and the use of the proceeds thereof.

<u>"Treasury Regulations"</u> means the regulations promulgated by the United States Department of the Treasury under the Code.

<u>"U.S. Government Securities Business Day"</u> means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

<u>"UCC"</u> means the Uniform Commercial Code of the State of New York.

<u>"Unpaid Drawing"</u> has the meaning given to such term in the LC Facility Agreement.

Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Exhibits and Schedules.</u> All Exhibits and Schedules attached to this Agreement are a part hereof for all purposes; <u>provided</u> that after the date hereof and prior to or on the Effective Date, the Exhibits and Schedules may be amended with the consent of the Lender and the Borrower (such consent not to be unreasonably withheld).

Section 1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment of Defined Instruments.</u> Unless the context otherwise requires or unless otherwise provided herein, the terms defined in this Agreement that refer to a particular agreement, instrument or document also refer to and include all renewals, extensions, modifications, amendments and restatements of such agreement, instrument or document, in each case, to the extent permitted hereunder: <u>provided</u> that nothing contained in this section shall be construed to authorize any such renewal, extension, modification, amendment or restatement.

Section 1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>References and Titles.</u> All references in this Agreement to Exhibits, Schedules, articles, sections, subsections, definitions and other subdivisions refer to the Exhibits, Schedules, articles, sections, subsections, definitions and other subdivisions of this Agreement unless expressly provided otherwise. Exhibits and Schedules to any Financing Document shall be deemed incorporated by reference in such Financing Document. References to any document, instrument, or agreement (a) shall include all exhibits, schedules, and other attachments thereto,

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and (b) shall include all documents, instruments, or agreements issued or executed in replacement thereof. Titles appearing at the beginning of any subdivisions are for convenience only and do not constitute any part of such subdivisions and shall be disregarded in construing the language contained in such subdivisions. The words "this Agreement," "this instrument," "herein," "hereof," "hereby," "hereunder" and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The phrases "this section" and "this subsection" and similar phrases refer only to the sections or subsections hereof in which such phrases occur. The word "or" is not exclusive, and the word "including" (in its various forms) means "including without limitation." Pronouns in masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires. References to "days" shall mean calendar days, unless the term "Business Day" is used. Unless otherwise specified, references herein to any particular Person also refer to its successors and permitted assigns. The term "Pledge and Security Agreement" includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings associated therewith, however evidenced, whether in physical or electronic form.

Section 1.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Calculations and Determinations.</u> Each determination by the Lender of amounts to be paid under <u>Article III</u> or any other matters, which are to be determined hereunder by the Lender shall, in the absence of manifest error, be conclusive and binding. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time.

Section 1.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Divisions.</u> For all purposes under the Financing Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

**ARTICLE II**

**COMMITMENTS AND BORROWINGS**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Term Loan Commitments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions set forth in this Agreement, the Lender agrees to make one or more Term Loans in dollars to the Borrower from time to time during the Availability Period, but not more than once in any month, in an aggregate principal amount at any one time outstanding up to but not exceeding the Lender's undrawn Term Loan Commitment (individually a <u>"Loan",</u> and collectively, the <u>"Tenn Loans").</u>

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Term Loans.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To request a Borrowing of Term Loans, the Borrower shall deliver an irrevocable written Borrowing Request signed by the Borrower to the Lender not later than 11:00 a.m., New York City time, seven (7) U.S. Government Securities Business Days before the date of the

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proposed Borrowing (unless otherwise agreed between the Borrower and the Lender). Each such irrevocable written Borrowing Request by the Borrower shall specify the aggregate amount of the Borrowing of Term Loans requested by the Borrower and the date of such Borrowing of Term Loans, which shall be a Business Day. Borrowing shall be in an aggregate amount at least equal to one million dollars ($1,000,000) and in integral multiples of one hundred thousand dollars ($100,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No more than one (1) Borrowing Request may be submitted per calendar month (except such limitation shall not apply to any Borrowing Request for Term Loans used to reimburse the LC Lender for any Unpaid Drawings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Amounts prepaid or repaid in respect of Term Loans may not be reborrowed.

Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Disbursements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Disbursements.</u> If, on the Borrowing Date selected for any Borrowing in accordance with <u>Section 2.1,</u> all applicable conditions precedent contained in this Agreement have been satisfied or waived in accordance with the terms hereof with respect to such Borrowing (including all conditions set forth in this <u>Section 2.3</u> and all conditions set forth in <u>Sections 4.1</u> and <u>4.2,</u> as applicable), the Lender will, on the applicable Borrowing Date, promptly remit to the account of the Borrower designated in the applicable Borrowing Request, the proceeds of the Lender's Borrowing in immediately available funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Debt; Notes.</u> The Lender may maintain in accordance with its usual practice an account or accounts evidencing the Debt of the Borrower to the Lender resulting from each Loan made by the Lender, including the amounts of principal, interest and fees payable and paid to the Lender from time to time hereunder. In the case where a Lender does not request execution and delivery of a note evidencing the Loans made by the Lender to the Borrower, such account or accounts shall be conclusive and binding on the Borrower absent manifest error; <u>provided, however,</u> that the failure of the Lender to maintain such account or accounts or any error in any such account shall not limit or otherwise affect any Obligations of the Borrower.

Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Notes.</u> The Borrower agrees that, upon the request by the Lender, the Borrower will execute and deliver to the Lender, as applicable, a note evidencing the Term Loans made by the Lender.

Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved].</u>

Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest Rate.</u> The Loans comprising a Borrowing shall accrue interest at a rate per annum equal to the sum of the Adjusted Term SOFR for such Interest Period plus the Applicable Margin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Interest.</u>&nbsp;&nbsp;&nbsp;&nbsp;Interest accrued on each Loan shall be payable, without duplication:

&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)&nbsp;&nbsp;&nbsp;&nbsp;on the Maturity Date;

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&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)&nbsp;&nbsp;&nbsp;&nbsp;on the date of any payment or prepayment, in whole or in part, of principal outstanding on any Loan, on the principal amount so paid or prepaid;

&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)&nbsp;&nbsp;&nbsp;&nbsp;on each Monthly Payment Date beginning with the Monthly Payment Date occurring on November 30, 2024; <u>provided</u> that to the extent the end of the Interest Period applicable to such Loan is not a Monthly Payment Date, at the end of such Interest Period, the accrued and unpaid interest in respect of such Loan shall be capitalized and deemed added to the aggregate principal amount of such Loan for purposes of determining the interest and such capitalized interest shall be paid in cash on the next succeeding Monthly Payment Date after the end of such Interest Period (it being understood and agreed that, on each Monthly Payment Date, all accrued and unpaid interest as of such date shall be paid in cash on such Monthly Payment Date, whether or not such date is also the end of the then applicable Interest Period); 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)&nbsp;&nbsp;&nbsp;&nbsp;Interest accrued on Loans or other monetary Obligations after the date such amount is due and payable (whether on the Maturity Date, upon acceleration or otherwise) shall be payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Default Rate.</u> After the date any principal amount of any Loan is due and payable (whether on the Maturity Date, upon acceleration or otherwise), or after any other monetary Obligation of the Borrower shall have become due and payable, the Borrower shall pay, but only to the extent permitted by law, interest (after as well as before judgment) on such amounts at a rate per annum equal to the rate of interest that otherwise would be applicable to such Loan plus three percent (3%) per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Inability to Determine Rates.</u> If on or prior to the first day of any Interest Period for any Loan, a Lender determines (which determination shall be conclusive and binding absent manifest error) that "Term SOFR" cannot be determined pursuant to the definition thereof, the Lender will promptly notify the Borrower. The obligations of the Lender to make or continue any Loans on the last day of the Interest Period shall forthwith be suspended until the Lender notifies the Borrower that the circumstances causing such suspension no longer exist or the Lender and the Borrower agree on an alternate rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>SOFR Lending Unlawful.</u> If the Lender shall determine that the introduction of or any change in or in the interpretation of any law makes it unlawful, or any Governmental Authority asserts that it is unlawful, for the Lender to make or continue any Loan whose interest is determined by reference to SOFR, the Term SOFR Reference Rate or Term SOFR, the obligations of the Lender to make, continue or convert any such Loan shall, after the determination thereof, forthwith be suspended until the Lender shall notify the Borrower that the circumstances causing such suspension no longer exist, or the Lender and the Borrower agree on an alternate rate.

Section 2. 7&nbsp;&nbsp;&nbsp;&nbsp;<u>Increased Costs.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If, after the Effective Date, any Change in Law affects or would affect the capital or liquidity requirements expected to be maintained by the Lender or any Person controlling the Lender, and the Lender determines (in good faith but in its sole and absolute discretion) that the rate of return on its or such controlling Person's capital as a consequence of the Term Loan

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Commitments or the Loans made by the Lender is reduced to a level below that which the Lender or such controlling Person could have achieved but for the occurrence of any such circumstance, then upon notice from time to time by the Lender to the Borrower, the Borrower shall within ten (10) days following receipt of such notice pay directly to the Lender additional amounts sufficient to compensate the Lender or such controlling Person for such reduction in rate of return. A statement of the Lender as to any such additional amount or amounts shall, in the absence of manifest error, be conclusive and binding on the Borrower. In determining such amount, the Lender may use any reasonable method of averaging and attribution that it (in its sole and absolute discretion) shall deem applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;A certificate of an officer of a Lender setting forth the amount or amounts necessary to compensate the Lender as specified in this <u>Section 2.7</u> shall be delivered to the Borrower and shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Promptly after the Lender has determined that it will make a request for increased compensation pursuant to this <u>Section 2.7,</u> the Lender shall notify the Borrower thereof. Failure or delay on the part of the Lender to demand compensation pursuant to this Section shall not constitute a waiver of the Lender's right to demand such compensation; <u>provided</u> that the Borrower shall not be required to compensate a Lender pursuant to this <u>Section 2.7</u> for any increased costs or reductions incurred more than two hundred and seventy (270) days prior to the date that the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of the Lender's intention to claim compensation therefor; <u>provided,</u> <u>further,</u> that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.

Section 2.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Commitment Fees.</u> The Borrower shall pay the Lender a commitment fee (the <u>"</u><u>Commitment Fee")</u> which shall accrue from the Effective Date until the end of the Availability Period at a rate per annum equal to the Commitment Fee Percentage on the average daily undrawn Term Loan Commitment of the Lender (which may be reduced pursuant to <u>Section 2.</u> <u>10(b)).</u> Accrued Commitment Fees shall be due and payable in arrears on each successive Monthly Payment Date from and after the Effective Date (for Mercuria) until the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Upfront Fees.</u> The Borrower agrees to pay to the Lender, one and a half percent (1.5%) of the Term Loan Commitment amount, payable to the Lender on the Effective Date.

Section 2.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Mandatory Prepayments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;On each Measuring Date, the Borrower shall make a mandatory prepayment in the amount required to meet the financial covenants set forth in <u>Section 6.15.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Immediately upon any Commitment Termination Event, the Borrower shall repay the portion of the Loans declared to be due and payable pursuant to <u>Section 8.2.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Immediately upon any Change in Control, the Borrower shall repay all Loans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence of a Casualty Event in excess of five hundred thousand dollars ($500,000), the Borrower shall make a mandatory prepayment of the Loans in an amount equal to one hundred percent (100%) of the net insurance proceeds actually received in connection with such Casualty Event in the amount required to meet the financial covenants set forth in <u>Section 6.15,</u> except to the extent that (i) no Default or Event of Default has occurred and is continuing, and (ii) within sixty (60) days of any Loan Party obtaining knowledge of such Casualty Event, the Borrower submits to the Lender a reasonably detailed proposal for the application of such proceeds in compliance with the other provisions hereof, and thereafter applies such proceeds in accordance with such proposal within one hundred eighty (180) days after receipt; <u>provided</u> that in the case of a Casualty Event in excess of ten million dollars ($10,000,000) that reasonably would be expected to have a Material Adverse Effect, and such Material Adverse Effect (i) is not susceptible to cure or (ii) has not been cured within sixty (60) days and Borrower has not commenced to cure such Material Adverse Effect within ten (10) Business Days and thereafter continued to use commercially reasonable efforts to effect such cure, the Borrower shall, upon the written request of the Lender, repay all Loans within ten (10) Business Days, and all remaining Term Loan Commitments will thereupon be automatically cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;No later than ten (10) Business Days following the receipt by any Loan Party of any Net Disposition Proceeds in excess of one million dollars ($1,000,000), the Borrower shall deliver to the Lender a calculation of the amount of such proceeds, and the Borrower shall make a mandatory prepayment of the Loans in an amount equal to one hundred percent (100%) of all such Net Disposition Proceeds, except to the extent that (i) no Default or Event of Default has occurred and is continuing, and (ii) within sixty (60) days of any Loan Party obtaining knowledge of the applicable Disposition, the Borrower submits to the Lender a reasonably detailed proposal for the application of such proceeds in compliance with the other provisions hereof, and thereafter applies such proceeds in accordance with such proposal within three hundred sixty (360) days after receipt there;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Each prepayment of any Loans made pursuant to this <u>Section 2.9</u> shall be made together with (i) accrued and unpaid interest to the date of such prepayment on the principal amount prepaid and (ii) any amounts owing pursuant to <u>Section 2.7.</u> For the avoidance of doubt, no premium or penalty shall be required in connection with the mandatory prepayment of any Loans. The Borrower shall give prior written notice of any mandatory prepayment required hereunder (including the date and an estimate of the aggregate amount of such mandatory prepayment at least five (5) Business Days prior thereto); <u>provided</u> that the failure to give such notice shall not relieve the Borrower of its obligation to make such mandatory prepayments on or prior to the dates set forth herein, and the Borrower shall be permitted to make such mandatory prepayments on or prior to such dates.

Section 2.10 <u>Optional Prepayments; Commitment Reductions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, without premium or penalty subject to the requirements of this <u>Section 2.10.</u> Each partial prepayment of any Borrowing under this <u>Section 2.10</u> shall be in an aggregate amount at least equal to one million dollars ($1,000,000) and an integral multiple of one hundred thousand dollars ($100,000) in excess thereof (or such lesser amount as may be necessary

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to prepay the aggregate principal amount then outstanding with respect to such Borrowing). Prepayments pursuant to this <u>Section 2.10</u> shall be applied as directed by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower may at any time terminate in whole or reduce in part, on a pro rata basis, unused portions of the Term Loan Commitments without any premium or penalty; <u>provided</u> that (i) the Borrower shall give the Lender not less than three (3) Business Days prior written notice thereof, specifying the amount and date of such proposed termination or reduction, and (ii) any partial reduction of the unused portions of the Term Loan Commitments shall be in an aggregate minimum amount of one million dollars ($1,000,000) and an integral multiple of five hundred thousand dollars ($500,000) (or, if less, the remaining aggregate unused portions of the Tenn Loan Commitments).

**ARTICLE III**

**PAYMENTS TO THE LENDER**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General Procedures.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 3.3(a),</u> the Borrower will make each payment, which it owes under the Financing Documents to the Lender, in lawful money of the United States of America, without set-off, deduction or counterclaim, and in immediately available funds. Each such payment must be received by the Lender not later than 12:00 p.m. New York City, New York time, on the date such payment becomes due and payable. Any payment received by a Lender after such time will be deemed to have been made on the next following Business Day. Should any such payment become due and payable on a day other than a Business Day, the maturity of such payment shall be extended to the next succeeding Business Day and, in the case of a payment of principal or past due interest, interest shall accrue and be payable thereon for the period of such extension as provided in the Financing Document under which such payment is due. All computations of fees and interest payable under this Agreement shall be computed on the basis of a 360-day year of twelve 30-day months. Interest and fees shall accrue during each period during which such interest or fees are computed from (and including) the first day thereof to (but excluding) the last day thereof.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Place of Payment.</u> Payments becoming due and payable under the Financing Documents shall be made at the Lender's account or, at the election of the Lender, by wire transfer to a bank and account specified by the Lender. The Lender may at any time, by written notice to the Borrower at least ten (10) Business Days prior to the due date of a payment to be made by the Borrower to the Lender, change the place of payment of any such payments.

Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes.</u> The Borrower covenants and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Any and all payments by or on account of any obligation of the Borrower under the Financing Documents shall be made free and clear of, and without deduction or withholding for, any Taxes; <u>provided</u> that if the Borrower or applicable withholding agent shall be required by applicable Law to deduct or withhold any Taxes from such payments, then (i) if such Taxes are Indemnified Taxes, the sum payable shall be increased as necessary by the Borrower so that after making all required deductions or withholdings (including deductions or withholdings of Indemnified Taxes applicable to additional sums payable under this <u>Section 3.3(a)),</u> the Lender

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receives an amount equal to the sum it would have received had no such deductions or withholdings been made, (ii) the Borrower or applicable withholding agent shall make such deductions or withholdings, and (iii) the Borrower or applicable withholding agent shall pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall indemnify the Lender, within ten (10) Business Days after written demand therefor, for the full amount of any Indemnified Taxes payable or paid by the Lender, on or with respect to any payment by or on account of any obligation of the Borrower under the Financing Documents (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this <u>Section 3.3)</u> and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;As soon as practicable after any payment of any Taxes by the Borrower or applicable withholding agent to a Governmental Authority pursuant to this Section, the Borrower shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;

&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)&nbsp;&nbsp;&nbsp;&nbsp;Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Financing Document shall deliver to the Borrower, at the time or times reasonably requested by the Borrower, such properly completed and executed documentation reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender shall deliver such other documentation prescribed by applicable Law or reasonably requested by the Borrower as will enable the Borrower to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>clauses (e)(ii)</u> and (h) of this Section) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;any Lender that is a U.S. Person (as defined in Section 770l(a)(30) of the Code) shall deliver to the Borrower on or about the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter

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upon the reasonable request of the Borrower), executed copies of IRS Form W-9 ce1tifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;any Lender that is not a U.S. Person (as defined in Section 770l(a)(30) of the Code, any such Lender, a "Foreign Lender") shall, to the extent it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be requested by the Borrower) on or about the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Financing Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Financing Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;executed copies of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 88l(c) of the Code, (x) a certificate substantially in the form of <u>Exhibit C-1</u> to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, or a "controlled foreign corporation" related to the Borrower as described in Section 881(c)(3)(C) of the Code (a "U.S. Tax Compliance Certificate") and (y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E; 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;(4)&nbsp;&nbsp;&nbsp;&nbsp;to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W- 8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit C-2</u> or <u>Exhibit</u> <u>C-3,</u> IRS Fom1 W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit C-4</u> on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be requested by the Borrower) on or about the date

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on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), executed copies of any other form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower to determine the withholding or deduction required to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;If a payment made to a Lender under any Financing Document would be subject to U.S. federal withholding tax imposed by FATCA if the Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), the Lender shall deliver to the Borrower at the time or times prescribed by Law and at such time or times reasonably requested by the Borrower such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower as may be necessary for the Borrower to comply with its obligations under FATCA, to determine that the Lender has complied with the Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this <u>clause (g),</u> FATCA shall include any amendments made to FATCA after the Effective Date. The Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>Section 3.3</u> (including by the payment of additional amounts pursuant to this <u>Section 3.3),</u> it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this <u>Section 3.3</u> with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this <u>clause (h)</u> (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>clause (h),</u> in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>clause (h)</u> the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This clause shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Each party's obligations under this <u>Section 3.3</u> shall survive any assignment of rights by the Lender, the termination of the Term Loan Commitment and the repayment, satisfaction or discharge of all obligations under the Financing Documents. For purposes of this <u>Section 3.3,</u> the term "applicable Law" includes FATCA.

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**ARTICLE IV**

**CONDITIONS PRECEDENT**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions Precedent to Effective Date.</u> This Agreement shall become effective on and as of the first date (the <u>"Effective Date")</u> on which each of the following conditions is satisfied (or waived by the Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;All Transaction Expenses due and payable on or prior to the Effective Date, in each case, to the extent invoiced at least three (3) Business Days prior to the Effective Date, shall have been paid, or shall be paid substantially concurrently with the Initial Borrowing hereunder or on the Effective Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received a certificate of a Responsible Officer of each Loan Party setting forth (i) resolutions of its board of directors (or comparable governing body) with respect to the authorization of such Loan Party to execute and deliver the Financing Documents to which it is a party and to perform the transactions contemplated herein and therein, (ii) the incumbency and specimen signatures of such Responsible Officers of such Loan Party who are authorized to sign the Financing Documents to which it is a party, (iii) the articles or certificate of formation of such Loan Party certified as of a recent date not more than fifteen (15) days prior to the Effective Date by the Secretary of State of the State of Delaware and (iv) the operating agreement or bylaws of such Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received from each party thereto counterparts of each Financing Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received (i) audited consolidated balance sheets and related consolidated statements of operations, stockholders' equity and cash flows of the Borrower for the Fiscal Year ended December 31, 2023, (ii) the Borrower Model, (iii) an unaudited pro forma balance sheet of the Borrower and its Subsidiaries on a consolidated basis (giving effect to the Transactions) as of September 30, 2024 and (iv) the annual budget required to be delivered pursuant to <u>Section 6.l(k).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Collateral Perfection Matters.</u> The Collateral Agent shall have received:

&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)&nbsp;&nbsp;&nbsp;&nbsp;the Intercreditor Agreement and each Collateral Document, duly executed by each party thereto;

&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)&nbsp;&nbsp;&nbsp;&nbsp;copies of UCC, judgment and tax lien search reports, as of a recent date reasonably acceptable to the Lender, listing all effective financing statements naming the Parent and the Borrower as debtor and that are filed in the jurisdictions in which the UCC- 1 financing statements will be filed in respect of the Collateral and each jurisdiction where

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the Parent and the Borrower have assets, none of which shall cover the Collateral except to the extent evidencing Excepted Liens; 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)&nbsp;&nbsp;&nbsp;&nbsp;evidence that the Borrower has made arrangements to deliver to the Collateral Agent the original certificate representing the Equity Interests that are pledged pursuant to the Pledge and Security Agreement, together with an original undated transfer power for each such certificate executed in blank by a duly Responsible Officer of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Legal Opinion.</u> The Lender shall have received an opinion of Orrick, Herrington & Sutcliffe LLP, special New York counsel to the Loan Parties and the Parent, in form and substance reasonably acceptable to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Solvency Certificate.</u> The Lender shall have received a solvency certificate from a Responsible Officer of the Loan Parties in the form of <u>Exhibit B.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificate of Good Standing.</u> The Lender shall have received a certificate as of a recent date not more than fifteen (15) days prior to the Effective Date of the appropriate state agency where each of the Loan Parties is formed with respect to the existence, qualification and good standing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>KYC Information.</u> The Lender shall have received from the Loan Parties at least five (5) Business Days prior to the Effective Date, to the extent reasonably requested in writing by the Lender at least ten (10) Business Days prior to the Effective Date, all documentation and other information that the Lender reasonably determines is required by regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act and a duly executed W-9 (or other applicable tax form) for the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Adverse Effect.</u> Since December 31, 2023, there has been no occurrence, development, change, event, or loss affecting the Loan Parties that has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions Precedent to each Borrowing.</u> The obligation of the Lender to make Term Loans on any Borrowing Date (including on the Effective Date) is subject to the fulfillment of the following conditions (unless, in each case, waived by the Lender):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of the Borrower contained in <u>Article V</u> or any other Financing Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct on and as of the Borrowing Date in all material respects, except (i) to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date and (ii) any representation and warranty that is qualified as to "materiality," "Material Adverse Effect" or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No Default or Event of Default shall exist, or would result from the Borrowing or from the application of the proceeds thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received a duly executed Borrowing Request on or before the date required pursuant to <u>Section 2.2(a).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;After giving effect to the Borrowing of Term Loans, the Borrower will be in compliance, on a pro forma basis, with the financial covenants set forth in <u>Section 6.15.</u>

**ARTICLE V**

**REPRESENTATIONS AND WARRANTIES OF BORROWER**

The Borrower makes the representations and warranties contained in this <u>Article V</u> to the Lender with respect to itself and each Loan Party. Unless a representation and warranty is expressly made solely as of a specific date, each such representation and warranty shall be deemed made as of the Effective Date and the date of any Borrowing:

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization; Powers.</u> Each Loan Party (a) is validly existing and in good standing under the laws of the jurisdiction of its organization, (b) has all requisite power and authority and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to cany on its business as now conducted, and (c) is qualified to do business in, and is in good standing in, (i) Delaware and (ii) every other jurisdiction where such qualification is required, except where, in case of this <u>clause (c)(ii),</u> failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Authority; Enforceability.</u> The Transactions are within each Loan Party's limited liability company power and have been duly authorized by all necessary limited liability company action, and, if required, member or manager action (including any action required to be taken by the sole member of each Loan Party). Each Financing Document to which a Loan Party is a party has been duly executed and delivered by such Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, each enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Approvals; No Conflicts.</u> The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any other Person (including shareholders or any class of directors or managers, as applicable, whether interested or disinterested, of a Loan Party or any other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity or enforceability of any Financing Document or the consummation of the transactions contemplated thereby, except such as have been obtained or made and are in full force and effect (b) will not violate any applicable material provision of Law or the charter, bylaws or other Organizational Documents of the Loan Parties or any order of any Governmental Authority applicable to it, (c) will not violate or result in a default under any material contractual obligation or agreement binding upon any Loan Party, and (d) will not result in the creation or imposition of any Lien on any Property of the Loan Parties (other than Excepted Liens).

Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>No Default.</u> No Default or Event of Default has occurred and is continuing.

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Section 5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Litigation.</u> Other than as provided on <u>Schedule 5.5,</u> there are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened in writing against or affecting any Loan Party that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in any Material Adverse Effect.

Section 5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Laws.</u> Each Loan Party is in material compliance with all Laws applicable to it, and possesses all material licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary as of the date this representation is made for the ownership of its property and the conduct of its business.

Section 5.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Investment Borrower Act.</u> None of the Loan Parties is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

Section 5.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes.</u> Except as would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, each Loan Party (a) has timely filed or caused to be filed all Tax returns and reports required to have been filed and (b) has paid or caused to be paid all Taxes required to have been paid by or on behalf of it, other than in each case of <u>clauses (a)</u> and <u>(b)</u> above, Taxes that are being contested in good faith by appropriate proceedings and for which each Loan Party, as applicable, has set aside on its books adequate reserves in accordance with GAAP.

Section 5.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure: No Material Misstatements.</u> None of the reports, financial statements, certificates or other factual information furnished by or on behalf of the each Loan Party in writing to the Lender in connection with the negotiation of this Agreement, or any other Financing Document or delivered hereunder or thereunder (as modified or supplemented by other information so furnished), taken as a whole, contains any untrue statement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; <u>provided</u> that with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed by the Borrower to be reasonable at the time, it being understood that (i) any such projected financial information is merely a prediction as to future events and is not to be viewed as fact, (ii) such projected financial information is subject to significant uncertainties and contingencies, many of which are beyond the control of the Borrower and (iii) no assurance can be given that any particular projections will be realized and that actual results during the period or periods covered by any such projections may differ significantly from the projected results, and such differences may be material.

Section 5.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Proceeds.</u> The proceeds of the Loans shall be used solely in accordance with <u>Section 7.5.</u> No Loan Party is engaged principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying any margin stock (within the meaning of Regulation T, U or X of the Board) and no part of the proceeds of any Loan will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

Section 5.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Solvency.</u> After giving effect to the Transactions contemplated hereby (a) the sum of the Debt (including contingent liabilities) of the Borrower does not exceed the

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present fair saleable value of the present assets of the Borrower and (b) the Borrower has not incurred and does not intend to incur, or believe that it will incur, debts including current obligations, beyond its ability to pay such debts as they become due (whether at maturity or otherwise).

Section 5.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.</u> Each Loan Party and their respective directors, officers, and to the Borrower's and Parent's knowledge, employees and agents acting on behalf of any Loan Party are in compliance with Anti-Corruption Laws, applicable Anti-Money Laundering Laws, and applicable Sanctions. None of the Loan Patties nor any of their respective directors, officers, employees, or, to the Borrower's and Parent's knowledge, any of their respective agents acting on behalf of any Loan Party is a Sanctioned Person. No direct or indirect use of proceeds or other transaction by the Borrower contemplated by this Agreement or the other Financing Documents will violate any Anti-Corruption Law, applicable Anti-Money Laundering Laws or applicable Sanctions.

Section 5.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsidiaries.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Ownership; Equity Interests. Schedule 5.13</u> contains a complete and correct list of the Persons owned by the Borrower, showing, as to each Person, the name thereof, the jurisdiction of its organization, the percentage of shares of each class of its capital stock or similar Equity Interests outstanding owned by the Borrower and each Subsidiary, and indicates which Subsidiaries are PPA Subsidiaries.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Schedule 5.13</u> shall be updated (i) on each Borrowing Date, to the extent of any change, (ii) within two (2) Business Days following any date on which the Borrower forms, acquires or divests ownership interests in any direct or indirect Subsidiary, and (iii) within two (2) Business Days following any date on which a Subsidiary becomes or ceases to be a PPA Subsidiary in accordance with 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;As of the date hereof and as of the date of any update to <u>Schedule 5.13,</u> the Borrower represents and warrants to the Lender that (i) all of the outstanding Equity Interests of each such Person shown in <u>Schedule 5.13</u> as being owned by the Borrower and its Subsidiaries have been validly issued and are owned by the Borrower or another Subsidiary, (ii) all of the outstanding Equity Interests of the Borrower have been validly issued and are owned by the Parent free and clear of any Lien other than Excepted Liens, (iii) all of the outstanding Equity Interests in each PPA Subsidiary are owned either by another PPA Subsidiary, the applicable Intermediate Holdco, the Borrower or an investor pursuant to an Additional Capital Source Investment, and (iv) the Subsidiaries shown on <u>Schedule 5.13</u> are the only direct or indirect Subsidiaries of the Borrower.

Section 5.14&nbsp;&nbsp;&nbsp;&nbsp;<u>ERISA; Employees.</u> Neither the Borrower nor any of the Subsidiaries of the Borrower (a) has any employees or (b) maintains, sponsors, contributes to or has any liability or obligation (contingent or otherwise) in relation to any "employee benefit plan" within the meaning of Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended.

Section 5.15&nbsp;&nbsp;&nbsp;&nbsp;<u>No Material Adverse Effect.</u> No Material Adverse Effect has occurred since the Effective Date.

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Section 5.16&nbsp;&nbsp;&nbsp;&nbsp;*<u>Pari Passu</u>* <u>Ranking.</u> The payment obligations of the Borrower hereunder and under the Loans are and will at all times constitute direct secured obligations of the Borrower, and are and will at all times rank no less than *pari passu* with all other present and future Debt of the Borrower.

Section 5.17&nbsp;&nbsp;&nbsp;&nbsp;<u>No Material Liabilities.</u> As of the Effective Date, the Loan Parties have no material contingent liabilities or material Debt required under GAAP to be disclosed in a consolidated balance sheet of the Borrower that were not included in the financial statements delivered to the Lender on or prior to the Effective Date or otherwise disclosed in writing to the Lender prior to the Effective Date.

Section 5.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Deposit Account and Security Accounts.</u> No Loan Party has any Deposit Accounts or Securities Accounts, except those accounts subject to a Control Agreement or otherwise permitted hereunder.

Section 5.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Power Purchase Agreements.</u> (a) <u>Schedule 5.19</u> includes a list of all of the Power Purchase Agreements, including any amendments thereto, to which a Loan Party is a party, in effect as of the Effective Date, (b) each Power Purchase Agreement is in full force and effect, except for such termination or expiration thereof in accordance with their respective stated terms and not as a result of a default thereunder, and none of the Loan Parties or, to any Loan Party's knowledge, any other party thereto, is in material breach or default thereunder that is continuing and (c) with respect to the Power Purchase Agreements for which an Acceptable Letter of Credit has been posted and remains outstanding, except as has been previously disclosed in writing to the Lenders as required pursuant to this Agreement and except as expressly permitted pursuant to this Agreement, none of the Power Purchase Agreements have been amended, modified or terminated in any material manner.

Section 5.20&nbsp;&nbsp;&nbsp;&nbsp;Interconnection Agreements. (a) <u>Schedule 5.20</u> includes a list of all of the Interconnection Agreements, including any amendments thereto, to which a Loan Party is a party, in effect as of the Effective Date, (b) each Interconnection Agreement is in full force and effect, except for such termination or expiration thereof in accordance with their respective stated terms and not as a result of a default thereunder, and none of the Loan Parties or, to any Loan Party's knowledge, any other party thereto, is in material breach or default thereunder that is continuing and (c) with respect to the Interconnection Agreements for which an Acceptable Letter of Credit has been posted and remains outstanding, except as has been previously disclosed in writing to the Lenders as required pursuant to this Agreement and except as expressly permitted pursuant to this Agreement, none of the Interconnection Agreements have been amended, modified or terminated in any material manner.

**ARTICLE VI**

**AFFIRMATIVE COVENANTS**

Until all other amounts payable under the Financing Documents shall have been paid in full (other than contingent indemnity obligations for which no claims have been made), the

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Borrower hereby covenants and agrees with the Lender that, it shall and shall cause each Intermediate Holdco and each PPA Subsidiary, as applicable, to:

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements; Other Information.</u> Furnish to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements.</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)&nbsp;&nbsp;&nbsp;&nbsp;*Annual Financials.* As soon as available and in any event within one- hundred twenty (120) days after the end of each Fiscal Year, the Borrower will deliver a consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Year and the related consolidated and consolidating statements of operations, members' equity and cash flows for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, certified without qualification by independent public accountants of national or regional recognized standing acceptable to the board of directors (or comparable governing body) of the Borrower as fairly presenting, in all material respects, the financial condition and results of operations of the Borrower and its Subsidiaries and as having been prepared in accordance with GAAP, in all material respects, applied on a consistent basis.

&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)&nbsp;&nbsp;&nbsp;&nbsp;*Quarterly Financials.* As soon as practicable and in any event within forty- five (45) days after the end of each of the first three Fiscal Quarters of each Fiscal Year, the Borrower will deliver an unaudited consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal quarter and the related unaudited consolidated and consolidating statements of operations, members' equity and cash flows for such fiscal quarter, all in reasonable detail and certified by an Responsible Officer of the Borrower as fairly presenting, in all material respects, the financial condition and results of operations of the Borrower and as having been prepared in accordance with GAAP, in all material respects, applied on a consistent basis and the audited financial statements of the Borrower, excluding customary footnotes and year-end adjustments.

&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)&nbsp;&nbsp;&nbsp;&nbsp;*Monthly Financials.* As soon as practicable and in any event within forty- five (45) days after the end of each calendar month (including the last calendar month of the Borrower's Fiscal Year), the Borrower will deliver a consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as at the end of such month and the related unaudited consolidated and consolidating statements of operations and cash flows for such month, and for the portion of the Fiscal Year ended at the end of such month setting forth in each case, to the extent applicable, in comparative form the figures for the corresponding periods of the previous Fiscal Year and the figures for such month and for such portion of the Fiscal Year ended at the end of such month, all in reasonable detail and certified by a Responsible Officer of the Borrower as fairly presenting, in all material respects, the financial condition and results of operations of the Borrower and its Subsidiaries and as having been prepared in accordance with GAAP, in all material respects, applied on a consistent basis, and with the audited financial statements of the Borrower, excluding customary footnotes and year-end adjustments, together with a reconciliation against the most recent annual budget delivered to Lender pursuant to <u>Section 6.l(k).</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificate of Compliance.</u> Not later than thirty (30) days after the end of each Fiscal Quarter (commencing with September 30, 2024), a certificate of the Responsible Officer of the Borrower: (i) certifying as to compliance by the Borrower with Section 6.15 as of the most recently ended Fiscal Quarter, (ii) certifying to such Responsible Officer's knowledge, whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto and (iii) attaching an updated, complete, and accurate version of <u>Schedule 5.13,</u> if applicable, identifying each Subsidiary, if any, created or acquired by the Borrower or any other Subsidiary during such Fiscal Quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Information Regarding Loan Parties.</u> Prompt written notice (and in any event within ten (10) days prior thereto or such later date as the Lender may agree) of any change (i) in the organizational name of a Loan Party, (ii) in the location of the chief executive office or principal place of business of a Loan Party, (iii) in the identity or organizational structure or in the jurisdiction of incorporation or formation of the Borrower, (iv) in a Loan Party's organizational identification number in such jurisdiction of organization, and (v) in a Loan Party's federal taxpayer identification number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Related Information.</u> Promptly (i) any written notice received by a Loan Party from any federal or state taxing or revenue authority challenging any material federal or state tax position taken by a Loan Party or claiming that a Loan Party has not fully paid any material federal or state income Taxes or (ii) any written notice of an audit, administrative or judicial proceeding or dispute, in each case, with respect to any Tax Credits claimed by a Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices of Material Events.</u> Promptly, but in any event within ten (10) Business Days of a Responsible Officer of the Borrower gaining knowledge of the occurrence thereof, written notice of the following: (i) the occurrence of any Default or Event of Default; (ii) any litigation that, if adversely determined, could result in liabilities of a Loan Party in excess of five hundred thousand dollars ($500,000) or could reasonably be expected to result in a Material Adverse Effect, (iii) any investigations by any Governmental Authority, any material correspondence with any Governmental Authority, or any change in the regulatory status or treatment of a Loan Party, in each case involving the Borrower and that causes a Material Adverse Effect to occur; (iv) any incurrence of Liens on the assets of the Borrower in excess of five hundred thousand dollars ($500,000), in each case in connection with Debt for borrowed money, and any other matter, event or development that has resulted in, or could reasonably be expected to result in, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices of Defaults under Asset Level Financing.</u> Promptly, but in any event within ten (10) Business Days of a Responsible Officer of a Loan Party gaining knowledge of the occurrence thereof, written notice of the occurrence of any default or event of default under any Asset Level Financing accompanied with reasonably detailed information regarding the nature of such default, including, in the case of a payment default, the payment amounts in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Power Purchase Agreement Default.</u> Promptly upon receipt thereof, copies of all notices of any breach, Event of Default, force majeure event, termination, amendment or material dispute received by any Loan Party with respect to any Power Purchase Agreement to which a Loan Party is a party to and for which an Acceptable Letter of Credit has been posted and remains outstanding, except to the extent such event could not reasonably be expected to result in a Material

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Adverse Effect; <u>provided</u> that, if an Event of Default has occurred and is continuing, then the obligations of this <u>Section 6.l(g)</u> shall apply to any Power Purchase Agreement listed on <u>Schedule 5.19.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Asset Level Financing and Equity Contributions.</u> At least ten (10) Business Days prior to (i) the signing date of any Asset Level Financing, notice that a PPA Subsidiary intends to enter into an Asset Level Financing, and (ii) an equity contribution in a PPA Subsidiary by a Loan Party, notice that such Loan Party intends to do so. Each such notice shall be revocable by the Borrower as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Impairment Testing.</u> Upon (i) the occurrence of any (A) Disposition by the Borrower or any of its Subsidiaries in an aggregate amount in excess of $5,000,000 that is not otherwise in the ordinary course of business and results in consideration to the Borrower or its Subsidiary less than the book value (as measured in accordance with GAAP) of the businesses, assets and/or other Properties that are so Disposed, (B) a Casualty Event reasonably expected to be in an aggregate amount in excess of $5,000,000 (after deducting any casualty insurance proceeds reasonably expected to be received in connection with such Casualty Event), (C) Fundamental Change in an aggregate amount in excess of $5,000,000 involving any Subsidiary of the Borrower and any Person other than another Subsidiary of the Borrower, (D) issuance of Equity Interests by any Subsidiary of the Borrower in an aggregate amount in excess of $5,000,000 to any Person other than the Borrower or any Subsidiary of the Borrower, (E) acceleration of, or material default, under any aggregate Debt in an amount greater than $5,000,000 of any Subsidiaries of the Borrower, (F) final, non-appealable judgments that would result in a monetary liability of the Borrower or any Subsidiaries of the Borrower in an aggregate amount in excess of $5,000,000, (G) any involuntary or voluntary bankruptcy proceeding has commenced by or against any Subsidiary of the Borrower or (H) any action, suit, investigation or proceeding by or before any arbitrator or Governmental Authority has been adversely determined against any Subsidiary of the Borrower and results in obligations or liabilities determined in such action, suit, investigation or proceeding to have a monetary value in excess of $5,000,000 or otherwise has a material and adverse impact on the ability of such Subsidiary or Subsidiaries to conduct business as intended that is reasonably expected to have an Impairment Loss in an amount greater than $5,000,000 or (ii) the reasonable request of any Lender, the Borrower shall engage an independent appraiser mutually agreed to by the Borrower and Lender to value the Impairment Loss. For the avoidance of doubt, in the case of <u>clause (i)(E)</u> above, the independent appraiser will be permitted to analyze the non-defaulting Subsidiaries as well as the Subsidiary or Subsidiaries subject to acceleration or material default under such Debt described in <u>subclause</u> <u>(E)</u> above; <u>provided</u> that the review by the appraiser of any non-defaulting Subsidiaries shall not result in an increase in the value attributed to such Subsidiary. If an independent appraiser is not mutually agreed upon by the Borrower and Lender, an independent appraiser will be selected from the agreed list of appraisers attached hereto as <u>Schedule 6.1,</u> in the order of priority set forth therein. The engagement of such independent appraiser (x) if engaged pursuant to <u>clause (i)</u> of the first sentence of this <u>Section 6.1(i)</u> shall be at the sole cost of the Borrower and (y) if engaged pursuant to <u>clause (ii)</u> of the first sentence of this <u>Section 6.1(i),</u> (1) shall be at the sole cost of the Borrower the first time the Lender requests the engagement of an independent appraiser in a given Fiscal Quarter and (2) if an independent appraiser has on a separate occasion been engaged at the request of the Lender during a given Fiscal Quarter, at the sole cost of the Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Power Purchase Agreement Execution.</u> No later than ten (10) Business Days prior to the signing date of any power purchase agreement, notice that such Loan Party intends to enter into such power purchase agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Budget.</u> The Borrower shall, as a condition precedent to the Effective Date and no later than thirty (30) days before the commencement of each calendar year thereafter, deliver the annual budget with respect to such calendar year (or, in the case of the first budget, in respect of the period through the first full calendar year), which budget shall be reasonably detailed and substantially on the same form as the budget delivered on the Effective Date.

Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Existence; Conduct of Business.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Loan Parties shall at all times maintain in full force and effect its legal existence in a jurisdiction of the United States, and their qualification to do business and good standing in each jurisdiction in which the character of properties owned by it or in which the transaction of its business as conducted or proposed to be conducted by it makes such qualification necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall use commercially reasonable efforts to cause, or cause its Subsidiaries to cause, each Approved Project to be developed, financed, constructed, and operated in accordance with prudent industry practice and the annual budget approved by the Lender hereunder.

Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Taxes.</u> The Loan Parties will pay all of their material Tax liabilities before the same shall become delinquent or in default, except where the validity or amount thereof is being contested in good faith by appropriate proceedings and each Loan Party has set aside on its books adequate reserves with respect thereto in accordance with GAAP or where the non-payment of such Tax liabilities would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Books and Records; Inspection Rights.</u> The Loan Parties will keep proper books of record and account in which full, true and correct entries are made in all material respects of all dealings and transactions in relation to its business and activities. Each Loan Party will, at the Lender's sole cost and expense, permit any representatives designated by the Lender, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; <u>provided</u> that so long as no Default or Event of Default has occurred and is continuing, only one (1) inspection shall be permitted during any Fiscal Year.

Section 6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Laws.</u> Each Loan Party will comply with all material Laws and material contractual obligations applicable to it or its Property.

Section 6.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Assurances.</u> Each Loan Party at its sole expense will promptly (a) execute and deliver to the Lender or the Collateral Agent (as applicable) all such other documents, agreements and instruments reasonably requested by the Lender or the Collateral Agent to comply with covenants and agreements of a Loan Party in the Financing Documents and (b) upon the reasonable request of the Lender or the Collateral Agent, take all further actions

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necessary or appropriate to create, preserve and maintain the security interests granted to the Collateral Agent in the Collateral pursuant to the Collateral Documents.

Section 6.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Sanctions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;[Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;None of the funds or assets of a Loan Party that are used to pay any amount due pursuant to the Loans shall constitute funds obtained from transactions with or relating to Sanctioned Persons or a Sanctioned Country or are funds whose use to pay any amount due pursuant to the Loans would otherwise result in a violation of Sanctions by any party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each Loan Party shall maintain policies and procedures reasonably designed to prevent violations of applicable Anti-Corruption Laws and Sanctions Laws.

Section 6.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance.</u> Each Loan Party will, and will cause each Subsidiary to, maintain, through either an individual policy or as part of a group policy, with financially sound and reputable insurance companies (at the time the relevant coverage is placed or renewed), insurance (a) in such amounts and against such risks as are customarily maintained in accordance with sound business practices by companies engaged in the same or similar businesses operating in the same or similar locations and (b) in accordance with all applicable Law and its material contractual obligations.

Section 6.9&nbsp;&nbsp;&nbsp;&nbsp;*<u>Pari Passu</u>* <u>Ranking; Security.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Loan Party shall cause the payment obligations of the Borrower hereunder to constitute direct secured obligations of such Loan Party and to rank no less than *pari passu* with all other present and future Debt of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall preserve and maintain the security interests granted under the Collateral Documents, including taking any such action at its cost and expense to promptly discharge any Lien (other than any Excepted Lien) on the Collateral in which the Borrower or any PPA Subsidiary has an interest, and undertake all actions which are necessary or appropriate to: (i) maintain the Collateral Agent's security interest in the Collateral in which the Borrower or any PPA Subsidiary has an interest in full force and effect at all times (including the priority thereof), and (ii) preserve and protect the Collateral and protect and enforce the rights and title of the Borrower and the PPA Subsidiaries and the rights of the Collateral Agent to the Collateral in which the Borrower or any PPA Subsidiary has an interest, including the making or delivery of all filings and recordations, the payment of all fees and other charges and the issuance of supplemental documentation requested by the Collateral Agent.

Section 6.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Pledge of Additional Equity Interests; Exclusivity.</u> The Borrower will (a) promptly notify the Collateral Agent in writing of any Equity Interests of the Borrower or a PPA Subsidiary constituting Collateral issued after the Effective Date, (b) pledge to the Collateral Agent for the benefit of the Secured Parties all such Equity Interests, pursuant to the Pledge and Security Agreement or supplement thereto, (c) deliver any certificates representing such Equity Interests, along with stock powers or other instruments of transfer indorsed in blank, to the

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Section 6.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Proceeds.</u> The Loan Parties will use the proceeds of the Loans for the payment of transaction costs and expenses incurred in connection with this Agreement and the other Financing Documents, including repayment of Unpaid Drawings, interest and other costs under the LC Facility Agreement, and the development, construction and operation of geothermal energy, transmission and delivery of renewable power from geothermal energy resources in the United States that are similar in nature to the Approved Projects.

Section 6.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Management.</u> Each Loan Party will deposit, or cause to be deposited, as soon as practicable following the receipt thereof, all of such Loan Party's collections into accounts subject to a Control Agreement.

Section 6.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounts.</u> Not later than the earlier of (a) the date an Acceptable Letter of Credit is issued under the LC Facility Agreement, or (b) thirty (30) days following the Effective Date, each Loan Party shall ensure execution and delivery to Collateral Agent of a Control Agreement for each Deposit Account and Securities Account entered into by the depositary institution maintaining each such account and pursuant to which such depositary institution maintaining such account shall agree to comply solely with the Collateral Agent's instructions with respect to the disposition of funds in such account upon the occurrence and continuance of an Event of Default without the consent of any other Person.

Section 6.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Power Purchase Agreements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Loan Party will perform and observe all of the terms and provisions of each Power Purchase Agreement to be performed or observed by it, maintain each such Power Purchase Agreement to which it is a party in full force and effect, and enforce such Power Purchase Agreement in accordance with its material terms, except to the extent such failure could not reasonably be expected, together with all such failures then occurring, to cause a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No later than five (5) Business Days after a Subsidiary enters into a power purchase agreement pursuant to <u>Section 7.9(c),</u> the Borrower shall deliver to the Lender (i) a true, correct and complete copy of such Power Purchase Agreement and any amendments or modifications thereto and (ii) an updated <u>Schedule 5.19</u> to reflect the most recent Power Purchase Agreement.

Section 6.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Covenants.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall maintain a ratio of Net Asset Value to Total Exposure Amount, for the last Fiscal Quarter ended prior to a Measuring Date of greater than or equal to 2.50 to 1.00.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not permit the ratio of (i) Total Debt to (ii) the sum of (A) equity capital contributions made to the Borrower and each of its subsidiaries as of the date of calculation (including, for the avoidance of doubt, any Additional Capital Source Investments) *plus* (B) the Total Debt as of the last day of any Fiscal Quarter to be in excess of 0.60 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not permit the ratio of (i) the Total Exposure Amount to (ii) the Total Consolidated Capital as of the last day of any Fiscal Quarter to be in excess of 0.40 to 1.00.

Section 6.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Fiscal Year; GAAP.</u> The Borrower will, for financial reporting purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;cause each of its, and its Subsidiaries' fiscal years to end on December 31 of each year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;cause each of its, and its Subsidiaries' quarterly and annual financial statements to be prepared in accordance with GAAP, as in effect from time to time, and shall not change the policy or method of accounting used to prepare such financial statements without the prior written consent of the Lender.

**ARTICLE VII**

**NEGATIVE COVENANTS**

Until all amounts payable under the Financing Documents have been paid in full (other than contingent indemnity obligations for which no claims have been made), the Borrower covenants and agrees with the Lender that it shall and shall cause each Intermediate Holdco and each PPA Subsidiary, as applicable, to:

Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Debt.</u> The Loan Parties will not incur, create, assume or suffer to exist any Debt, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the obligations (including the Obligations) of the Loan Parties arising under this Agreement or any other Financing Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Debt of any Loan Party in respect of contingent obligations resulting from (A) the endorsement of negotiable instruments received in the ordinary course of its business and (B) indemnities provided under the Financing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Debt of any Loan Party arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds or arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Debt of any Loan Party consisting of judgments which do not constitute an Event of Default under <u>Section 8.1(g);</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Taxes or customs duties, arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Debt of any Loan Party arising from the honoring by a bank or other financial institution of a check, draft or similar·instrument drawn against insufficient funds in the ordinary course of business or other cash management services in the ordinary course of business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Debt in respect of netting services, overdraft protections and otherwise m connection with deposit accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;Debt of any Loan Party in respect of performance bonds, bid bonds, appeal bonds, surety bonds, indemnification obligations, financial assurances and completion guarantees and similar obligations in each case provided in the ordinary course of business and not in connection with Debt for borrowed money, including those incurred to support obligations under (A) workers' compensation, unemployment insurance, health, disability and other employee benefits and other social security laws, including in respect of casualty or liability insurance or self-insurance, or other Debt with respect to reimbursement type obligations regarding workers compensation claim and (B) safety and environmental obligations in the ordinary course of business and not in connection with Debt for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;To the extent constituting Debt, contingent obligations under or in respect of obligations to pay insurance premiums incurred in the ordinary course of business and not serviced with Debt for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;To the extent constituting Debt, obligations under Project Documents that are not Debt for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;Debt of any Loan Party provided by another Loan Party; <u>provided</u> that such Debt is pledged to the Collateral Agent pursuant to the Pledge and Security Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;Debt under Asset Level Financings if (x) the applicable Intermediate Holdco owns at least fifty-one (51%) of the Equity Interests in the borrower thereof and maintains Control of such borrower, (y) the borrower thereof is a Released PPA Subsidiary, and (z) the Borrower notified the Lender of the Asset Level Financing pursuant to <u>Section 6. 1(h);</u> and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;Debt that constitutes any Additional Capital Sources.

Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Liens.</u> The Loan Parties will not create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except Excepted Liens.

Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Payments.</u> No Loan Party will declare or make a Restricted Payment, or make any deposit for any Restricted Payment, except any PPA Subsidiary may declare and pay dividends or make distributions to (a) the Borrower (or to the applicable Intermediate Holdco for further dividend or distribution to the Borrower) and (b) any additional investor in an Intermediate Holdco pursuant to an Additional Capital Source Investment, <u>provided</u> that any such Restricted Payment under subclause (b) must (i) be made in the ordinary course of business, (ii) occur concurrently with a proportionate dividend or distribution to the Borrower (or to the applicable Intermediate Holdco for further dividend or distribution to the Borrower), (iii) occur following final completion of the Project, (iv) occur in accordance with the terms of any applicable Asset Level Financing and (v) no Default or Event of Default shall have occurred and be continuing.

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Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Investments.</u> The Loan Parties will not make any Investments in or to any Person, except that the foregoing restriction shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Investments existing or contemplated as of the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;accounts receivable arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Cash Equivalent Investments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Investments made by a Loan Party (i) in or to any of its direct or indirect Subsidiaries or (ii) in the direct or indirect purchase or acquisition of any Property comprised of or relating to Equity Interests of another Person holding assets, in each case, relating to geothermal generation facilities or any other Property related thereto (including development rights) located within the geographic boundaries of the United States of America.

Section 7.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Proceeds.</u> None of the Borrower or any Person acting on behalf of the Borrower has taken or will take any action which might cause any of the Financing Documents to violate Regulation U or X or any other regulation of the Board or to violate Section 7 of the Securities Exchange Act of 1934 or any rule or regulation thereunder, in each case as now in effect or as the same may hereinafter be in effect.

Section 7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Fundamental Changes; Mergers; Etc.</u> The Loan Parties will not (a) consummate any consolidation, amalgamation, demerger, plan of division, merger or reconstruction, or any analogous arrangement or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person, or (b) wind up, liquidate or dissolve or take any action that would result in its liquidation or dissolution (any such action or transaction described in the foregoing <u>clauses (a)</u> and <u>(b)</u>, <u>"Fundamental</u> <u>Changes").</u>

Section 7.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Transactions with Affiliates.</u> The Loan Parties will not, and will cause their Subsidiaries not to, enter into any transaction of any kind, with any Affiliate of the Loan Parties or such Subsidiary, whether or not in the ordinary course of business, unless (a) such transactions are upon fair and reasonable terms no less f<sup>a</sup>vorable to each such Loan Party or Subsidiary than it would obtain in a comparable arm's length transaction with a Person that is not an Affiliate and (b) the counterparty to each such transaction is the Borrower or a Subsidiary of the Loan Parties listed on <u>Schedule 5.13.</u>

Section 7.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.</u> The Loan Parties will not request any Loans, and the Loan Parties and their respective directors, officers, employees and agents shall not use, lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, the proceeds of any Loans directly or knowingly indirectly (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

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Section 7.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Entry and Amendments to Organizational Documents and Certain</u> <u>Agreements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Loan Parties will not enter into any Swap Agreements (including any other agreements involving or including hedging obligations and hedging and hedge-like obligations in respect of energy, ancillary services and capacity attributes or other products) except to the extent entered into the ordinary course of business and not for speculative purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Loan Parties will not amend, supplement or otherwise modify (or permit to be amended, supplemented or modified) their Organizational Documents in any manner that would be materially adverse to the interest of the Lender, for the avoidance of doubt, any amendment that (i) limits the Lender' foreclosure rights on the Collateral, (ii) limits the assignability of Equity Interests in the Loan Parties, or (iii) affects the priority of payment of the Lender's Collateral, is deemed to be adverse to the interest of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;No Subsidiary will enter into any power purchase agreement (or similar agreement) or any power option, swap or similar agreement for the sale of power from a Project unless such agreement (i) is entered into on an aims-length basis on commercially reasonable terms, (ii) with a counterparty that has, or the obligations of which are guaranteed by a Person that has, a long-term senior unsecured non-credit enhanced debt of at least BBB- from S&P or Fitch or Baa3 from Moody's (with the lower rating controlling in the event of a split rating), and (iii) reasonably would be expected to support an Asset Level Financing of the applicable Project.

Section 7.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Change in Business.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall not engage in any business or activity, or form or permit any Subsidiary to engage in any business or activity, other than: (i) as a holding company to own and hold the Equity Interests of the Subsidiaries and other Persons as expressly permitted hereunder, (ii) pursuant to any express provisions of the Financing Documents or (iii) any business substantially related or incidental thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall not permit any Subsidiary to primarily engage in any other business or activity other than (i) the development, construction, acquisition, operation, maintenance and ownership of Projects in the United States and related activities, including power generation, storage, sale and marketing and the acquisition, management, ownership, lease and sale of real property in connection geothermal energy generation facilities and other related activities arising in the ordinary course of business, (ii) as a holding company to own and hold the Equity Interests of certain Subsidiaries or (iii) any business substantially related or incidental thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party will issue or transfer any Equity Interests (whether for value or otherwise) to any Person, except that (i) the Parent may make additional contributions to the capital of the Borrower, (ii) any PPA Subsidiary may issue Equity Interests to the Borrower or to the applicable Intermediate Holdco, and (iii) in connection with the consummation of any Additional Capital Source, any Loan Party may issue or transfer up to forty-nine (49%) of the Equity Interests in any Intermediate Holdco or PPA Subsidiary to any non-Affiliate Person so long as (A) such Person is not a Sanctioned Person, (B) such Person has the financial wherewithal to perform its

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equity contribution obligations in connection with the Organizational Documents of such Intermediate Holdco or PPA Subsidiary and the terms of any existing or anticipated Asset Level Financing, and (C) the Borrower at all times maintains Control of such Intermediate Holdco or PPA Subsidiary; for the avoidance of doubt, nothing contained in this clause shall prohibit the pledge by any Intermediate Holdco of its Equity Interests in the applicable Released PPA Subsidiary pursuant to an Asset Level Financing.

Section 7.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Consolidation, Merger; Etc.</u> No Loan Party will (a)(i) liquidate, wind-up or dissolve, (ii) sell, lease or otherwise transfer or dispose of all or substantially all of its property, assets or business except as permitted pursuant to <u>Section 7.10(c),</u> (iii) combine, consolidate with, or merge into or with, any other Person, (b) change its legal form, or (c) purchase or otherwise acquire any substantial part of the equity interests in or assets of any Person (or any division thereof) except as permitted pursuant to <u>Section 7.4(d).</u>

Section 7.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Permitted Dispositions.</u> No Loan Party will Dispose of any material portion of its assets (including accounts receivable) to any Person in one transaction or a series of transactions unless such Disposition is otherwise expressly permitted by the terms of this Agreement or is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;of inventory (including all sales of energy and capacity products and any ancillary services) or obsolete, damaged, worn-out or surplus assets Disposed of in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;of Cash Equivalent Investments in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;of electric energy and capacity and renewable energy credits under the Power Purchase Agreements; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;of Equity Interests that is a direct result of the consummation of an Additional Capital Source.

Section 7.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Modification of Certain Agreements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party will consent to any amendment, supplement, waiver or other modification of its Organizational Documents if as a result thereof there could reasonably be expected to be a Material Adverse Effect on the lights or remedies of the Lender. Except to the extent any of the following actions, either individually or in the aggregate, could not reasonably be expected to cause a Material Adverse Effect (taken as a whole after giving effect to all applicable amendments, modifications, changes, consents, waivers and approvals), and the Borrower provides to the Lender a true, correct and complete copy of each such amendment, modification, change, consent, waiver and approval, no PPA Subsidiary that has an Acceptable Letter of Credit on its behalf shall amend, modify or change any material term or condition of any Power Purchase Agreement or give any consent, waiver or approval thereunder, or waive any default under or any breach of any term. or condition of any Power Purchase Agreement for so long as such Acceptable Letter of Credit remains outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No PPA Subsidiary shall assign a Power Purchase Agreement or its rights thereunder or give consent, waiver or approval for assignment thereof by the counterparty thereto.

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Section 7.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounts; Depositary Agreement.</u> The Loan Parties will not establish or maintain any Deposit Account or Securities Account, other than accounts subject to a Control Agreement.

**ARTICLE VIII**

**EVENTS OF DEFAULT AND REMEDIES**

Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Events of Default.</u> Each the following events shall constitute an "Event of Default":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof at a date fixed for prepayment thereof, by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in <u>Section 8.l(a))</u> payable under any Financing Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of ten (10) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower shall fail to pay any other monetary Obligations and such def<sup>a</sup>ult shall continue unremedied for a period of ten (10) Business Days after such amount was due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any representation or warranty made or deemed made by or on behalf of a Loan Patty or the Parent in or in connection with any Financing Document or any amendment or modification of any Financing Document or waiver under such Financing Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Financing Document or any amendment or modification thereof or waiver thereunder, shall prove to have been materially incorrect when made or deemed made (or if already qualified by materiality or Material Adverse Effect, incorrect in any respect when made or deemed made); provided that it shall not be an Event of Default under this <u>clause(d)</u> if the fact or circumstance giving rise to such representation or warranty being incorrect is susceptible to cure and is cured within thirty (30) days after any Responsible Officer of a Loan Patty obtains knowledge of such breach; <u>provided, further,</u> that if (A) such default is not cured within such cure period, (B) such default is susceptible to cure and (C) the relevant Loan Party is proceeding with diligence and in good faith to cause such default to be cured, then such cure period shall be extended to sixty (60) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower or the Parent shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those otherwise specified in this <u>Article VIII)</u> or any other Financing Document; <u>provided</u> that it shall not be an Event of Default under this <u>clause (e)</u> if such failure is remedied within a period of thirty (30) days after the earlier to occur of (1) notice thereof from the Lender or (2) a Responsible Officer of the Borrower becoming aware of such default; <u>provided, further,</u> that if (x) such failure is not remedied within such thirty (30) day period, (y) such default is susceptible to cure and (z) the Borrower is proceeding with diligence and in good faith to cause such default to be cured, then such cure period shall be extended to sixty (60) days;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;a Loan Party shall default (whether in payment or otherwise) in respect of any Debt in an amount greater than two million dollars ($2,000,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;any one or more non-monetary judgments that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, shall be rendered against a Loan Party, except, in each case, (i) such judgment or order which is discharged, or otherwise bonded or stayed pending appeal, within sixty (60) days after its entry or (ii) such judgment or order is covered by independent third-party insurance as to which the insurer is rated at least "A-" by A.M. Best Borrower, has been notified of the potential claim and does not dispute coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Parent or a Loan Party or its or their respective debts, or of a substantial part of its assets, under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar· official for the Parent or a Loan Patty or for a substantial part of its or their respective assets, and, in any such case, such proceeding or petition shall continue undismissed for ninety (90) days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the Parent or a Loan Party shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar· official for the Parent or a Loan Patty for a substantial part of its or their respective assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;(i) any Financing Document after delivery thereof shall for any reason, except to the extent permitted by the terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Parent or the Borrower, as applicable (other than due to the acts or omissions of the Lender or the LC Lender); <u>provided</u> that such cessation shall not constitute an Event of Default if cured within two (2) Business Days after any Responsible Officer of a Loan Party obtains knowledge thereof; (ii) the Collateral Agent shall not have or shall cease to have a valid and perfected Lien in any Collateral purported to be covered by the Collateral Documents with the priority required by the relevant Financing Document; <u>provided</u> that the failure of any such Lien to be valid or perfected shall not constitute an Event of Default if such cessation has been cured within five (5) Business Days after any Responsible Officer of the Borrower obtains knowledge thereof, and such valid and perfected Lien (with priority described in such Collateral Document) is restored; or (iii) the Parent, a Loan Patty or their Affiliates shall contest the validity or enforceability of any Financing Document in writing, deny in writing that it has any further liability under any Financing Document to which it is a party or shall contest the validity or perfection of any Lien on any Collateral purported to be covered by the Collateral Documents, or repudiate any Financing Document in writing; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;any Event of Default shall have occurred and be continuing under the LC Facility Agreement.

Section 8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Consequences of Event of Default.</u> Subject to the Intercreditor Agreement, if any Event of Default shall occur for any reason, whether voluntary or involuntary, and be continuing, the Lender may, (a) by notice to the Borrower, declare the Term Loan Commitments to be zero, and the obligation of the Lender to extend Loans to be terminated, whereupon the same shall terminate, and (b) by notice to the Borrower, declare the sum of(i) all or any portion of the outstanding principal amount of the Loans and other Obligations and (ii) all accrued and unpaid interest thereon, to be due and payable without further notice, demand or presentment, whereupon such amount shall be and become immediately due and payable.

Section 8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies.</u> Subject to the Intercreditor Agreement, upon the occurrence of an Event of Default that is continuing, the Lender may protect and enforce its lights under the Financing Documents by any appropriate proceedings, including (i) proceedings for specific performance of any covenant or agreement contained in any Financing Document or (ii) to direct the Collateral Agent to enforce any and all Liens and security interests created pursuant to the Collateral Documents. All rights, remedies and powers conferred upon the Lender under the Financing Documents shall be deemed cumulative and not exclusive of any other rights, remedies or powers available under the Financing Documents or at Law or in equity.

Section 8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Application of Proceeds.</u> Subject to the Intercreditor Agreement, after the exercise of remedies provided for herein, any amounts received on account of the Obligations shall be applied by Collateral Agent in the following order:

FIRST, to payment of that portion of the Secured Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel) payable to the Collateral Agent (if any);

SECOND, to payment of that portion of the Secured Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel) (other than principal, interest and Commitment Fees, LC Commitment Fees (as defined in the LC Facility Agreement) and LC Posting Fees (as defined in the LC Facility Agreement)) payable to the Lender and the LC Lender, as applicable, ratably among them in proportion to the amounts described in this <u>clause SECOND</u> payable to them;

THIRD, to payment of that portion of the Secured Obligations constituting accrued and unpaid Commitment Fees, LC Commitment Fees (as defined in the LC Facility Agreement) and LC Posting Fees (as defined in the LC Facility Agreement), and interest on the Loans and Unpaid Drawings, as applicable, ratably among the Lender and the LC Lender in proportion to the respective amounts described in this <u>clause THIRD</u> payable to them;

FOURTH, to payment of that portion of the Secured Obligations constituting unpaid principal of the Loans and Unpaid Drawings, ratably among the Lender and LC Lender in proportion to the respective amounts described in this <u>clause FOURTH</u> held by them;

FIFTH, to the LC Lender, to Cash Collateralize that portion of Secured Obligations comprised of the aggregate undrawn amount of Acceptable Letters of Credit to the extent not

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otherwise Cash Collateralized by the Borrower or the relevant PPA Subsidiary pursuant to Section 2.8 of the LC Facility Agreement; and

SIXTH, the balance, if any, after all of the Secured Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by applicable Law.

**ARTICLE IX**

**RELEASE OF PPA SUBSIDIARIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;in the case of an Asset Level Financing:

&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)&nbsp;&nbsp;&nbsp;&nbsp;all Acceptable Letters of Credit issued on behalf of such Released PPA Subsidiary have been canceled in a manner reasonably acceptable to the LC Lender;

&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)&nbsp;&nbsp;&nbsp;&nbsp;any Unpaid Drawings resulted from the drawing of an Acceptable Letter of Credit issued for the benefit of such Released PPA Subsidiary have been fully repaid;

&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)&nbsp;&nbsp;&nbsp;&nbsp;such PPA Subsidiary has delivered to the Lender and the LC Lender a copy of the executed credit agreement (or similar· documentation) under the Asset Level Financing, together with any ancillary agreements entered into in connection therewith or any schedules or exhibits to any of the foregoing;

&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)&nbsp;&nbsp;&nbsp;&nbsp;such PPA Subsidiary has delivered to the Lender and the LC Lender a copy of the base case financial model for the Asset Level Financing; 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;(v)&nbsp;&nbsp;&nbsp;&nbsp;the applicable Intermediate Holdco owns at least fifty-one percent (51 %) of the Equity Interests of and Controls such PPA Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;in the case of an Additional Capital Source Investment in an Intermediate Holdco that owns such PPA Subsidiary:

&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)&nbsp;&nbsp;&nbsp;&nbsp;all Acceptable Letters of Credit issued on behalf of such Released PPA Subsidiary have been canceled in a manner reasonably acceptable to the LC Lender;

&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)&nbsp;&nbsp;&nbsp;&nbsp;any Unpaid Drawings resulted from the drawing of an Acceptable Letter of Credit issued for the benefit of such Released PPA Subsidiary have been fully repaid;

&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)&nbsp;&nbsp;&nbsp;&nbsp;such Intermediate Holdco has delivered to the Lender and the LC Lender a copy of the executed investment agreement and/or Organizational Documents (or similar documentation) in connection with the Additional Capital Source Investment; and

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&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)&nbsp;&nbsp;&nbsp;&nbsp;the applicable Intermediate Holdco owns at least fifty-one percent (51%) of the Equity Interests of and Controls such PPA Subsidiary.

**ARTICLE X**

**MISCELLANEOUS**

Section 10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Waivers and Amendments; Entire Agreement.</u> No failure or delay (whether by course of conduct or otherwise) by the Lender or in exercising any right, power or remedy which the Lender may have under any of the Financing Documents shall operate as a waiver thereof or of any other right, power or remedy, nor shall any single or partial exercise by the Lender of any such right, power or remedy preclude any other or further exercise thereof or of any other light, power or remedy. No waiver of any provision of any Financing Document and no consent to any departure therefrom shall ever be effective unless it is in writing and signed as provided below in this section, and then such waiver or consent shall be effective only in the specific instances and for the purposes for which given and to the extent specified in such writing. No notice to or demand on the Borrower shall in any case of itself entitle the Borrower to any other or further notice or demand in similar or other circumstances. This Agreement and the other Financing Documents set forth the entire understanding between the parties hereto with respect to the transactions contemplated herein and therein and supersede all prior discussions and understandings with respect to the subject matter hereof and thereof, and, subject to the Intercreditor Agreement, no waiver, consent, release, modification or amendment of or supplement to this Agreement or the other Financing Documents shall be valid or effective against any party thereto unless the same is in writing and signed by each Person party thereto.

Section 10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival of Agreements; Cumulative Nature.</u> All of the Borrower's various representations, warranties, covenants and agreements in the Financing Documents shall survive the execution and delivery of this Agreement and the other Financing Documents and the performance hereof and thereof, including the Loans, the extensions of credit under the LC Facility Agreement and the Financing Documents, and shall further survive until all of the Obligations are paid in full to the Lender and all of the Lender's obligations to the Borrower are terminated. The rights, powers, and privileges granted to the Lender and the LC Lender in the Financing Documents, are cumulative, and, except for expressly specified waivers and consents, no Financing Document shall be construed in the context of another to diminish, nullify, or otherwise reduce the benefit to the Lender of any such representation, warranty, indemnity, covenant, right, power or privilege.

Section 10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices.</u> All notices, requests, consents, demands and other communications required or permitted under any Financing Document shall be in writing, unless otherwise specifically provided in such Financing Document, and shall be deemed sufficiently given or furnished if delivered by personal delivery, by delivery service with proof of delivery, or by registered or certified United States mail, postage prepaid, to the Borrower at the address of the Borrower specified below and to the Lender at the address specified below (unless changed by similar notice in writing given by the particular Person whose address is to be changed), or by e-mail. Any such notice or communication shall be deemed to have been given (a) in the case of personal delivery or delivery service, as of the date of first attempted delivery during normal business hours at the address provided herein, (b) in the case of registered or certified United States mail, three (3) days after deposit in the mail, or (c) in the case of e-mail, upon the sender's receipt

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of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement). Electronic mail and internet and intranet websites may be used only to distribute routine communications, such as financial statements and other information as provided in <u>Section 6.1</u> and requests for consent pursuant to <u>Article VII,</u> and to distribute Financing Documents for execution by the patties thereto, and may not be used for any other purpose; <u>provided</u> that any notices by the Borrower in connection with the Financing Documents may be delivered by electronic mail.

If to the Borrower:

Fervo HoldCo LLC

c/o Fervo Energy Company

910 Louisiana Street, Suite 4400

Houston, TX 77002

Attn: CFO

T: 206-557-9828

E: [\*\*\*]

If to the Parent:

Fervo Energy Company

910 Louisiana Street, Suite 4400

Houston, TX 77002

Attn: CFO

T: 206-557-9828

F: [\*\*\*]

If to Mercuria:

Mercuria Energy Trading SA

20 E. Greenway Plaza, Suite 650

Houston, Texas 77046

Attn: Anthony Salese

T: 203-413-3383

G: [\*\*\*]

Section 10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Expenses: Indemnity.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Expenses.</u> The Borrower will, within thirty (30) days after any invoice or other statement or notice other than as required under <u>Section 4.l(a),</u> pay: (i) all Other Taxes in connection with the execution and delivery of this Agreement or any of the other Financing Documents or any other document or transaction referred to herein or therein; (ii) all fees and expenses in accordance with this Agreement; (iii) all reasonable and documented costs and expenses incurred by or on behalf of the Lender (including attorneys' fees, consultants' fees and engineering fees, travel costs, due diligence costs and expenses, and other miscellaneous costs and expenses) in connection with (1) the negotiation, preparation, execution and delivery of the Financing Documents and any and all consents, waivers or other documents or instruments relating thereto, (2) the filing, recording, refiling and re-recording of any Financing Documents and any

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other documents or instruments or further assurances required to be filed or recorded or refiled or re-recorded by the terms of any Financing Document, (3) the issuances hereunder and other action reasonably required in the course of administration hereof, or (4) monitoring or confirming (or preparation or negotiation of any document related to) the Borrower's compliance with any covenants or conditions contained in this Agreement, in any Financing Document; and (iv) all reasonable and documented costs and expenses incurred by or on behalf of the Lender (including attorneys' fees, consultants' fees and accounting fees) in connection with the preservation of any rights under the Financing Documents or the defense or enforcement of any of the Financing Documents (including this section), any attempt to cure any breach thereunder by the Borrower, or the defense of the Lender's exercise of its rights thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnity.</u> The Borrower agrees, within thirty (30) days after written demand therefor (including documentation reasonably supporting such request), to indemnify and hold harmless the Lender, each Affiliate of the Lender, and each of the foregoing's respective directors, officers, employees, partners, representatives, advisors and agents (each, an <u>"Indemnified Party")</u> from and against any and all actions, suits, losses, claims, damages, liabilities and expenses of any kind or nature (including reasonable and documented out-of-pocket legal expenses), joint or several, to which such Indemnified Party may become subject or that may be incurred or asserted or awarded against such Indemnified Party, in each case arising out of or in connection with or by reason of (including in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) (i) this Agreement or any other Financing Document, (ii) any matters contemplated by this Agreement or any other Financing Document or (iii) the use or the contemplated use of the proceeds of the Loans, and will reimburse each Indemnified Patty for all reasonable and_ documented out-of-pocket expenses (including reasonable and documented attorneys' fees, expenses and charges) (the foregoing, the <u>"Indemnified Claims"),</u> in each case, on demand as they are incurred in connection with any of the foregoing (in all cases, whether or not caused by or arising, in whole or in part, out of the sole or contributory, active or passive, imputed, joint or technical negligence of such Indemnified Party and whether arising in contract or in tort or otherwise; if any Person (including Borrower or any of its Affiliates) ever alleges gross negligence, bad faith or willful misconduct by any Indemnified Party, the indemnification provided for in this section shall nonetheless be paid upon demand as they are incurred in connection with the Indemnified Claims in accordance with this section, subject to later adjustment or reimbursement, until such time as a court of competent jurisdiction enters a final non-appealable judgment as to the extent and effect of the alleged gross negligence, bad faith or willful misconduct of the Indemnified Party); <u>provided</u> that no Indemnified Party will have any right to indemnification for any of the foregoing to the extent resulting from such Indemnified Party's own gross negligence, bad faith or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. The Borrower also agrees that no Affiliate, Lender or creditor of the Borrower is intended to be, and none of such Persons shall be, third patty beneficiaries of this Agreement, and therefore no Indemnified Party will have any liability (whether direct or indirect, in contract or tort, or otherwise) to any such Person arising out of, related to or in connection with this Agreement or any other Financing Document. The Borrower also agrees that no Indemnified Patty will have any liability (whether direct or indirect, in contract or tort, or otherwise) to the Borrower arising out of, related to or in connection with any aspect of the transactions contemplated hereby, except to the extent such liability is determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party's own gross negligence, bad faith or willful misconduct. The Borrower shall

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not, without the prior written consent of each Indemnified Party affected thereby, settle any threatened or pending claim or action that would give rise to the right of any Indemnified Party to claim indemnification hereunder unless such settlement (x) includes a full and unconditional release of all liabilities arising out of such claim or action against such Indemnified Party and (y) does not include any statement as to or an admission of fault, culpability or failure to act by or on behalf of any Indemnified Party. The indemnity provided by the Borrower hereunder shall be applicable to Indemnified Claims occurring after the Effective Date that are related to or arising from events and circumstances occurring or existing prior to the Effective Date. Each Indemnified Party, by its acceptance of the benefits of this <u>Section 10.4,</u> agrees to refund and return any and all amounts paid by the Borrower (or on its behalf) to it if, pursuant to limitations on indemnification set forth in this <u>Section 10.4,</u> such Indemnified Party was not entitled to receipt of such amounts. This <u>Section 10.4(b)</u> shall not apply with respect to Taxes (which are covered in <u>Section 3.3)</u> other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

Section 10.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns.</u> All grants, covenants and agreements contained in the Financing Documents shall bind and inure to the benefit of the parties thereto and their respective successors and permitted assigns; <u>provided</u> that (a) the Borrower may not assign or transfer any of its rights or delegate any of its duties or obligations under any Financing Document without the prior written consent of the Lender and/or the LC Lender, as applicable, (b) unless an Event of Default under <u>Sections 8.l(a),</u> <u>(b)</u>, <u>(j)</u>. or <u>(k)</u> has occurred and is continuing (in which case, the Lender may freely assign or transfer this Agreement or any other Financing Document or any of its rights or delegate any of its duties or obligations hereunder or under any Financing Document, to any Person other than a Prohibited Party and otherwise not in contravention of securities or other applicable Law), no Lender may assign nor transfer any of its rights or delegate any of its duties or obligations under any Financing Document without the prior written consent of the Borrower, except that Lender may, without consent, (A) transfer any of its rights or delegate any of its duties or obligations under any Financing Document to an Affiliate of the Lender or (B) make any direct or indirect pledge, hypothecation, mortgage or other encumbrance with respect to obligations of the Borrower under the Financing Documents in connection with one or more debt financings, in respect of which the pledgee or any Person acting on its or their behalf may have the light to any exercise of remedies with respect to any such debt financing, including any foreclosure or transfer in lieu of foreclosure or any other sale or disposition of the Collateral (including any lights of the Lender hereunder), and the Borrower will provide such cooperation as is reasonably requested by the Lender in connection with such Collateral assignment, and (c) no Lender may undertake or permit any transaction or series of related transactions (whether such transaction occurs by a sale or exchange of assets, sale or exchange of Equity Interests, merger, conversion, recapitalization, other business combination or indirect sale of Equity Interests, or otherwise) that, after giving effect thereto, results in the record owner of the Equity Interests of the Lender prior to such transaction and their Affiliates (other than management rollover participants in such transaction and their Affiliates thereof) having record ownership, directly or indirectly after the consummation of such transaction, of less than fifty percent (50%) (determined by the percentage of liquidating distributions the record Lender of Equity Interests would receive upon a liquidation of the Lender or other surviving entity immediately after consummation of such transaction) of the Equity Interests of the Lender or the surviving or acquiring company (any such transaction, a "Lender Change in Control"). In connection with any assignment by the Lender for which Borrower's prior written consent is required, the Lender shall provide such information

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regarding the name and address of the assignee of the Loan as the Borrower shall reasonably request.

Section 10.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Register.</u> Lender, acting solely for this purpose as an agent of the Borrower (but, if there is more than one Lender, the Borrower itself), shall maintain a register for the recordation of the names and addresses of the Lenders, and the Term Loan commitments of, and principal amounts (and stated interest) of the Term Loans owing to, each Lender pursuant to the terms hereof from time to time (the **"Register").** The entries in the Register shall be conclusive absent manifest error, and the Borrower and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and each Lender, at any reasonable time and from time to time upon reasonable prior notice.

Section 10.7&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the termination of this Agreement and except as otherwise provided herein or in this subsection (a) or subsection (b) below, each party hereto shall maintain the confidentiality of any information delivered to it or any of its Affiliates by any other patty to this Agreement in connection with the transactions contemplated by or otherwise pursuant to the Financing Documents that is proprietary or confidential in nature (including the identity of any LC Lender or Lender under this Agreement and the LC Facility Agreement) (the <u>"Confidential</u> <u>Information")</u> and shall not, without the prior written consent of the owner of such Confidential Information disclose any such information to another Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 10.7(d),</u> the parties hereto may disclose Confidential Information to its Affiliates and its and their respective employees, directors, officers, members, managers, attorneys, or investment advisors to whom such disclosure is necessary the execution or effectuation hereof, provided that such patty notifies all such Persons of the confidential nature of the Confidential Information and such Persons at·e bound or agree to be bound by substantially similar terms and conditions as those stated in this <u>Section 10.7.</u> The patties hereto may also disclose Confidential Information (i) to any Person that offers to purchase any security of any of its Affiliates, (ii) to effect compliance with any Law applicable to it, (iii) in response to any subpoena or other legal process, and (iv) in connection with any litigation to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If any party hereto is requested or required by legal process (including Law, oral questions, interrogatories, request for information or documents, subpoena, and civil investigative demand) to disclose any Confidential Information, then, to the extent legally permitted to do so, such disclosing patty shall promptly notify the owner of the Confidential Information, as applicable, of such request prior to complying with such process so that the owner of the Confidential Information may seek an appropriate protective order or waive the respondent's compliance with this Section. If, after the disclosing party gives such notice to the owner of the Confidential Information and after providing such owner a reasonable opportunity to obtain a protective order or to grant such waiver (so long as the granting of such time does not put the disclosing party in breach of its obligations to disclose), the disclosing party is nonetheless legally compelled to disclose such information, the disclosing patty may do so without violating this section.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Any Confidential Information which becomes publicly available through no breach by the relevant party hereunder or a breach by a third party of a confidential obligation to the relevant party hereunder, or which is received from a third party that does not, to the knowledge of the relevant party wishing to disclose such information, owe a duty of confidentiality with respect to such information, shall no longer be deemed to be Confidential Information.

Section 10.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law; Submission to Process.</u> EXCEPT TO THE EXTENT THAT THE LAW OF ANOTHER JURISDICTION IS EXPRESSLY ELECTED IN A FINANCING DOCUMENT, THIS AGREEMENT AND THE OTHER FINANCING DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS OTHER THAN SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY IRREVOCABLY (A) SUBMITS ITSELF TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE STATE AND COUNTY OF NEW YORK, (B) AGREES AND CONSENTS THAT SERVICE OF PROCESS MAY BE MADE UPON IT AND ANY OF ITS SUBSIDIARIES IN ANY LEGAL PROCEEDING RELATING TO THE FINANCING DOCUMENTS OR THE OBLIGATIONS BY ANY MEANS ALLOWED UNDER NEW YORK OR FEDERAL LAW, AND (C) WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH PROCEEDING BEING IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY HERETO HEREBY MAKES THE FOREGOING SUBMISSIONS, AGREEMENTS, CONSENTS AND WAIVERS ON BEHALF OF EACH OF ITS SUBSIDIARIES.

Section 10.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Interest.</u> The Lender, the Borrower and the other parties to the Financing Documents intend to contract in strict compliance with applicable usury Law from time to time in effect. In furtherance thereof such Persons stipulate and agree that none of the terms and provisions contained in the Financing Documents shall ever be construed to provide for interest in excess of the maximum amount of interest permitted to be contracted for, charged, or received by applicable Law from time to time in effect. Neither the Borrower nor any present or future guarantors, endorsers, or other Persons hereafter becoming liable for payment of any Obligation shall ever be liable for unearned interest thereon or shall ever be required to pay interest thereon in excess of the maximum amount that may be lawfully contracted for, charged, or received under applicable Law from time to time in effect, and the provisions of this section shall control over all other provisions of the Financing Documents which may be in conflict or apparent conflict herewith.

Section 10.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination; Limited Survival.</u> In its discretion, the Borrower may at any time that no Obligations are owing (other than indemnity obligations and similar obligations that survive the termination of this Agreement for which no notice of a claim has been received by the Borrower) elect in a written notice delivered to the Lender to terminate this Agreement. Upon receipt by the Lender of such a notice, if no such Obligations are then owing this Agreement and all other Financing Documents shall thereupon be terminated and the parties thereto released from all prospective obligations thereunder; <u>provided</u> that notwithstanding the foregoing or anything in any Financing Document to the contrary, any waivers or admissions made by the Borrower in any

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Financing Document, any Obligations under <u>Section 3.3</u> or any analogous provision under the LC Facility Agreement, any obligations which any Person may have to indemnify or compensate the Lender shall survive any termination of this Agreement or any other Financing Document. At the request and expense of the Borrower, the Lender shall prepare and execute all necessary instruments to reflect and effect such termination of the Financing Documents. In particular, and without limitation of any other provision of a Financing Document, the obligations of the Borrower and the Lender, as applicable, under <u>Sections 3.3, 10.4, 10.8,</u> and <u>10.13,</u> of this Agreement, and each analogous provision set forth in the LC Facility Agreement shall survive the termination of this Agreement.

Section 10.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability.</u> If any term or provision of any Financing Document shall be determined to be illegal or unenforceable all other terms and provisions of the Financing Documents shall nevertheless remain effective and shall be enforced to the fullest extent permitted by applicable Law.

Section 10.12&nbsp;&nbsp;&nbsp;&nbsp;<u>USA PATRIOT Act Notice.</u> The Lender notifies the Borrower that pursuant to the requirements of the Patriot Act, it may be required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow it to identify the Borrower in accordance with the Patriot Act.

Section 10.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Jmy Trial, Punitive Damages, Etc.</u> EACH OF THE BORROWER AND THE LENDER HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, AND IRREVOCABLY (A) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY *WRY* IN RESPECT OF ANY LITIGATION BASED HEREON, OR DIRECTLY OR INDIRECTLY AT ANY TIME ARISING OUT OF, UNDER OR IN CONNECTION WITH THE FINANCING DOCUMENTS OR ANY TRANSACTION CONTEMPLATED THEREBY OR ASSOCIATED THEREWITH, BEFORE OR AFTER MATURITY; (B) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY "SPECIAL DAMAGES" AS DEFINED BELOW, PROVIDED THAT NOTHING CONTAINED IN THIS CLAUSE SHALL LIMIT THE BORROWER'S INDEMNIFICATION OBLIGATIONS TO THE EXTENT SET FORTH IN SECTION 10.4(b) AND TO THE EXTENT SUCH SPECIAL DAMAGES ARE INCLUDED IN ANY THIRD PARTY CLAIM IN CONNECTION WITH WHICH SUCH INDEMNIFIED PARTY IS OTHERWISE ENTITLED TO INDEMNIFICATION HEREUNDER, (C) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (D) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE OTHER FINANCING DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION. AS USED IN THIS SECTION, "SPECIAL DAMAGES" INCLUDES ALL SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES (REGARDLESS OF HOW NAMED), BUT DOES

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NOT INCLUDE ANY PAYMENTS OR FUNDS WHICH ANY PARTY HERETO HAS EXPRESSLY PROMISED TO PAY OR DELIVER TO ANY OTHER PARTY HERETO.

Section 10.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Conflicts.</u> In the event of a conflict between the express provisions of this Agreement and any express provision of any other Financing Document (other than the Intercreditor Agreement), the express provisions of this Agreement shall govern.

Section 10.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterpaits; Electronic Transmission.</u> This Agreement and the Financing Documents may be separately executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to constitute one and the same Agreement. This Agreement and the Financing Documents may be validly executed and delivered by facsimile or by "PDF" or other similar electronic transmission.

Section 10.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Execution of Assignments and Certain Other Documents.</u> The words "execution," "execute", "signed," "signature," and words of like import in or related to any document to be signed in connection with this Agreement, the other Financing Documents and the transactions contemplated hereby (including amendments or other notices, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Lender or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

Section 10.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Original Issue Discount.</u> THE TERM LOANS HAVE BEEN OR WILL BE ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. THE ISSUE PRICE, ISSUE DATE, AMOUNT OF ORIGINAL ISSUE DISCOUNT AND YIELD TO MATURITY MAY BE OBTAINED BY WRITING TO THE BORROWER AT 910 LOUISIANA STREET, SUITE 4400 HOUSTON, TX 77002, ADDRESSING DAVID URLEY, CHIEF FINANCIAL OFFICER.

**[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]**

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

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| | |
|:---|:---|
| **FERVO HOLDCO LLC,** | **FERVO HOLDCO LLC,** |
| as the Borrower | as the Borrower |
| By: | /s/ Timothy Latimer |
| Name: | Timothy Latimer |
| Title: | Manager |

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[Signature Page to Credit Agreement]

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| | | |
|:---|:---|:---|
| MERCURIA ENERGY TRADING SA, | MERCURIA ENERGY TRADING SA, | MERCURIA ENERGY TRADING SA, |
| as the Lender | as the Lender | as the Lender |
| By: |  | /s/ Guillaume Vermersch |
|  | Name: | Guillaume Vermersch |
|  | Title: | Manager |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;Mercuria Energy Trading S.A. |

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[Signature Page to Credit Agreement]

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**SCHEDULES TO CREDIT AGREEMENT**

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**<u>Schedule 5.5: Litigation</u>**

[\*\*\*]

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**<u>Schedule 5.13: Subsidiaries</u>**

[\*\*\*]

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**<u>Schedule 5.19: Power Purchase Agreements</u>**

[\*\*\*]

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**<u>Schedule 5.20: Interconnection Agreements</u>**

[\*\*\*]

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**<u>Schedule 6.1: Appraisers</u>**

[\*\*\*]

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EXHIBIT A

[\*\*\*]

Exhibit A to Credit Agreement

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EXHIBIT B

[\*\*\*]

Exhibit B to Credit Agreement

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EXHIBIT C-1

[\*\*\*]

Exhibit C-1-1

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EXHIBIT C-2

[\*\*\*]

Exhibit C-2-1

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EXHIBIT C-3

[\*\*\*]

Exhibit C-3-1

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EXHIBIT C-4

[\*\*\*]

EXHIBIT C-4-1

## Exhibit 10.10

**Exhibit 10.10**

**Execution Version**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**Consent and Amendment No. 1 to Credit Agreement**

This Consent and Amendment No. 1 <u>("Amendment")</u> to the Credit Agreement (as defined below) is made and entered into as of May 21, 2025, by and between Fervo HoldCo LLC <u>("Borrower")</u> and Mercuria Energy Trading SA <u>("Lender",</u> and together with Borrower, the <u>"Parties"</u> hereto).

WHEREAS, reference is made to the Credit Agreement, dated as of November 20, 2024 (as amended, amended and restated, supplemented or otherwise modified from time to time, the <u>"Credit</u> <u>Agreement").</u> by and between the Borrower and the Lender;

WHEREAS, pursuant to Section 9.1 of the Credit Agreement, a PPA Subsidiary may only become a Released PPA Subsidiary if it satisfies the conditions set forth in Section 9.1 of the Credit Agreement;

WHEREAS, Borrower has requested the consent of the Lender for Cape Generating Station 5 LLC <u>("Cape 5")</u> to become a Released PPA Subsidiary without satisfying any of the requirements set forth in Section 9.1 of the Credit Agreement;

WHEREAS, pursuant to (a) Section 6.1(j) of the Credit Agreement, no later than ten (10) Business Days prior to the signing date of any power purchase agreement, Borrower must provide notice that such Loan Party intends to enter into such power purchase agreement, and (b) Section 6.14 of the Credit Agreement, no later than five (5) Business Days after a Subsidiary enters into a power purchase agreement pursuant to Section 7.9(c) of the Credit Agreement, the Borrower shall deliver to the Lender (i) a true, correct and complete copy of such Power Purchase Agreement and any amendments or modifications thereto and (ii) an updated Schedule 5.19 to reflect the most recent Power Purchase Agreement (collectively, the <u>"PPA Covenants");</u>

WHEREAS, pursuant to Section 6.l(b) of the Credit Agreement, Borrower must deliver a certificate of the Responsible Officer <u>("Certificate of Compliance")</u> of the Borrower certifying that, to such Responsible Officer's knowledge, no Default has occurred;

WHEREAS, pursuant to Section 10.1 of the Credit Agreement, Borrower has requested that the Lender waive any Default or Event of Default arising from a breach of the PPA Covenants caused by Borrower's entry into that certain Renewable Power Purchase Agreement, dated as of April 1, 2025, by and between Cape Generating Station 5 LLC and Shell Energy North America (US), L.P. (the <u>"Shell PPA");</u>

WHEREAS, pursuant to Section 10.1 of the Credit Agreement, Borrower has requested the Lender increase the Term Loan Commitment by $60,000,000 (the <u>"Incremental Term Loan Commitment");</u> and

WHEREAS, the Lender has agreed to consent to the requested consents, waivers, and amendments described herein under the terms and conditions stated herein.

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the Parties agree as follows:

**Section 1.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Definitions and other Interpretive Provisions.</u> Unless otherwise indicated herein, capitalized terms used but not defined herein shall have their respective meanings set forth in the Credit Agreement, after giving effect to this Amendment. The principles of construction and interpretation set forth in Article I (Defined Terms and Interpretations) of the Credit Agreement shall apply to, and are hereby incorporated by reference in, this Amendment.

**Section 2.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Amendments.</u> Both Borrower and Lender hereby modify the Credit Agreement as follows, subject to the terms and conditions set forth herein:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Schedule 5.13 is hereby deleted in its entirety and replaced in whole with <u>Exhibit A</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The first recital is deleted and replaced entirely with the following text:

"WHEREAS, the Borrower has requested that the Lender extend, and the Lender has agreed to extend, on the terms and conditions set forth in this Agreement and the other Financing Documents, a term facility in an aggregate principal amount of one hundred million dollars ($100,000,000); and".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The term "Term Loan Commitment" in Section 1.1 is deleted and replaced entirely with the following text:

<u>""Term Loan Commitment"</u> means the obligation of the Lender to make Term Loans to the Borrower up to an aggregate principal amount equal to one hundred million dollars ($100,000,000)."

**Section 3.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Consent and Waivers.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Lender hereby consents to Cape 5 becoming a Released PPA Subsidiary as of the Amendment Effective Date without satisfying any of the conditions precedent set forth in Section 9.1 of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Lender hereby waives any Default or Event of Default arising from (i) a breach of the PPA Covenants caused by Borrower's entry into the Shell PPA and (ii) the delivery of any Certificate of Compliance prior to the Amendment Effective Date that failed to disclose or reflect any Default or Event of Default arising from a breach of the PPA Covenants caused by Borrower's entry into the Shell PPA.

**Section 4.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Representations and Warranties.</u> The Borrower hereby represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the representations and warranties contained in Article V of the Credit Agreement or any other Financing Document are true and correct in all material respects (or, if qualified by "materiality," "Material Adverse Effect" or similar language, in all respects as of such date, and after giving effect to such qualification) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date (or, if qualified by "materiality," "Material Adverse Effect" or similar language, in all respects as of such earlier date, and after giving effect to such qualification);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the execution, delivery and performance by the Borrower of this Amendment have been duly authorized by all necessary limited liability company action, and do not and will not (i) violate the terms of its Organizational Documents, (ii) violate in any material respect or result in any material breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any material contractual obligation to which it is a party or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Borrower or its property is subject where the failure to make such payment would be reasonably expected to have a Material Adverse Effect or (iii) violate any applicable Law in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)this Amendment has been duly authorized, executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable against the

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Borrower in accordance with its terms, except as the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting creditors' rights generally and (ii) general equitable principles regardless of whether the issue of enforceability is considered in a proceeding in equity or at Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower of this Amendment, or for the consummation of the transactions contemplated hereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)as of the date hereof (after giving effect to this Amendment), no Default or Event of Default has occurred and is continuing or will result from the execution of this Amendment.

**Section 5.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Conditions to Effectiveness.</u> The amendments set forth in <u>Section 2</u> hereof and the consent and waivers set forth in <u>Section 3</u> hereof are subject to and shall become effective as of the date (such date, the <u>"Amendment Effective Date")</u> when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Lender has received duly executed counterparts of this Amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the Lender has received a certificate of a Responsible Officer of the Borrower setting forth resolutions of its board of directors with respect to the authorization of the Borrower to execute and deliver this Amendment and to perform the transactions contemplated herein and therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Borrower has paid to the Lender (i) one and a half percent (1.5%) of the Incremental Term Loan Commitment amount and (ii) all reasonable and documented costs and expenses incurred by or on behalf of the Lender (including attorneys' fees) in connection with the negotiation, preparation, execution and delivery of this Amendment.

**Section 6.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Other Provisions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Parties agree that all other terms and conditions of the Credit Agreement shall remain in full force and effect, except as modified by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)This Amendment is a "Financing Document" for all purposes under the Credit Agreement and each other document. The Borrower, by its signature below, hereby (i) confirms and agrees that each of the Credit Agreement (on and after the Amendment Effective Date, as expressly modified by this Amendment), the Collateral Documents and the other Financing Documents to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects; and (ii) affirms and confirms (A) its obligations under each of the Financing Documents to which it is a party (and, with respect to the Credit Agreement, as modified hereby) and (B) the pledge of and/or grant of a security interest in and Lien on its assets as Collateral (as defined in the Pledge and Security Agreement) to secure its Obligations, all as provided in the Financing Documents as originally executed (and, with respect to the Credit Agreement, as modified hereby), and acknowledges and agrees that such pledge and/or grant continue in full force and effect in respect of, and to secure, its Obligations under the Credit Agreement and the other Financing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except as specifically provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the, nor shall it

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constitute a waiver of any provision of any of the Financing Documents. No failure on the part of the Lender or the Collateral Agent to exercise, and no delay in exercising, and no course of dealing with respect to, any right, remedy, power or privilege under the Credit A<u>greement</u> or any other Financing Document shall operate as a waiver of such right, remedy, power or privilege, and no single or partial exercise of any right, remedy, power or privilege under the Credit Agreement or any other Financing Document shall preclude any other or further exercise of such right, remedy, power or privilege, or the exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Sections 10.2 (*Survival of Agreements; Cumulative Nature*), 10.7 (*Confidentiality*), 10.8 (*Governing Law; Submission to Process*), 10.11 *(Severability)*, 10.13 (*Waiver of Jury Trial, Punitive Damages, Etc.*), Section 10.15 (*Counterparts; Electronic Transmission*) and Section 10.16 (*Electronic Execution of Assignments and Certain Other Documents*) of the Credit Agreement shall be incorporated herein, *mutatis mutandis.*

------

IN WITNESS WHEREOF, the Parties have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers on the respective dates indicated below.

---

| | | | |
|:---|:---|:---|:---|
| **Fervo HoldCo LLC**  | **Fervo HoldCo LLC**  | **Mercuria Energy Trading SA** | **Mercuria Energy Trading SA** |
| By: | /s/ Tim Latimer | By: | /s/ Guillaume Vermersch |
| Name: Tim Latimer | Name: Tim Latimer | Name: Guillaume Vermersch | Name: Guillaume Vermersch |
| Title: President | Title: President | Title: Director | Title: Director |
| Date: May 21, 2025 | Date: May 21, 2025 | Date: May 19, 2025 | Date: May 19, 2025 |

---

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**<u>Exhibit A</u>**

[\*\*\*]

------

**Schedule 5.13: Subsidiaries**

**[\*\*\*]**

## Exhibit 10.11

**Exhibit 10.11**

**Execution Version**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**Consent and Amendment No. 2 to Credit Agreement and Pledge and Security Agreement**

This Consent and Amendment No. 2 <u>("Amendment")</u> to the Credit Agreement (as defined below) and Pledge and Security Agreement is made and entered into as of July 23, 2025, by and between Fervo HoldCo LLC <u>("Borrower"),</u> Mercuria Energy Trading SA, as lender under the Credit Agreement <u>("Lender"),</u> Mercuria Energy Trading SA, as collateral agent for the Secured Parties (in such capacity and together with its successors and permitted assigns in such capacity, the <u>"Collateral Agent"),</u> Fervo Energy Company, each Intermediate HoldCo party hereto, and each PPA Subsidiary party hereto (collectively, the <u>"Parties"</u> hereto).

WHEREAS, reference is made to the Credit Agreement, dated as of November 20, 2024 (as amended by that certain Amendment No. 1 to the Credit Agreement, dated as of May 21, 2025, and as further amended, amended and restated, supplemented or otherwise modified from time to time, the <u>"Credit</u> <u>Agreement"),</u> by and between the Borrower and the Lender;

WHEREAS, pursuant to Section 5.13(a)(ii) of the Credit Agreement, Schedule 5.13 to the Credit Agreement shall be updated within two (2) Business Days following any date on which the Borrower forms, acquires or divests ownership interests in any direct or indirect Subsidiary;

WHEREAS, Borrower formed the Subsidiaries listed on <u>Exhibit A</u> hereto (the <u>"TransCo</u> <u>Subsidiaries")</u> on May 19, 2025;

WHEREAS, Borrower has requested that (i) pursuant to Section 10.1 of the Credit Agreement, Schedule 5.13 of the Credit Agreement be amended and (ii) pursuant to Section 6.03 of the Pledge and Security Agreement, Schedule I, Schedule II and Schedule III of the Pledge and Security Agreement each be amended, in each case of clause (i) and (ii), in order to reflect the creation of the TransCo Subsidiaries and the latest corporate structure;

WHEREAS, pursuant to Section 10.1 of the Credit Agreement, Borrower has requested that Lender waive any Default or Event of Default arising from a breach of Section 5.13 or Section 6.10 of the Credit Agreement in connection with the creation of the TransCo Subsidiaries;

WHEREAS, Borrower is requesting certain Acceptable Letters of Credit from LC Lender under the LC Facility Agreement;

WHEREAS, pursuant to Section 10.1 of the Credit Agreement, Borrower has requested certain amendments and waivers as described herein under the terms and conditions stated herein;

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WHEREAS, pursuant to Section 10.1 of the Credit Agreement, the Lender has agreed to consent to the amendments and waivers described herein under the terms and conditions stated herein;

WHEREAS, pursuant to Section 6.03 of the Pledge and Security Agreement, the Grantors and the Collateral Agent have agreed to consent to the amendments described herein under the terms and conditions stated herein;

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the Parties agree as follows:

**Section l.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Definitions and other Interpretive Provisions.</u> Unless otherwise indicated herein, capitalized terms used but not defined herein shall have their respective meanings set forth in the Credit Agreement, after giving effect to this Amendment. The principles of construction and interpretation set forth in Article I (Defined Terms and Interpretations) of the Credit Agreement shall apply to, and are hereby incorporated by reference in, this Amendment.

**Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;**<u>Amendment to Credit Agreement.</u> Both Borrower and Lender hereby modify the following document as follows, subject to the terms and conditions set forth herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Schedule 5.13 to the Credit <u>Agreement</u> is hereby deleted in its entirety and replaced in whole with <u>Exhibit B</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The term "PPA Subsidiaries" in Section 1.1 is deleted and replaced entirely with the following text:

<u>""PPA Subsidiaries"</u> means each entity that (i) has entered into a Material Project Contract, and (ii) in respect of which an Acceptable Letter of Credit has been posted pursuant to such Material Project Contract, as designated on Schedule 5.13 (as the same is updated from time to time in accordance with Section 5.13)."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Section 1.1 of the Credit Agreement is hereby further amended by inserting in appropriate alphabetical order the following definition:

<u>""</u><u>Material Project Contract</u><u>"</u> means (i) each Power Purchase Agreement, (ii) each Interconnection Agreement, and (iii) any other agreement, in each case under clauses (ii) and (iii), solely to the extent an Acceptable Letter of Credit has been posted under such agreement."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Each reference to a "Power Purchase:Agreement" in Section 5.19, Section 6.1(g), Section 6.14, and Section 7.13 of the Credit Agreement is hereby deemed to be a reference to a "Material Project Contract", in the singular or the plural as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Section 5.20 to the Credit Agreement is hereby deleted in its entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Section 6.1(j) of the Credit Agreement is hereby deleted in its entirety and replaced with the following text:

<u>"Material Project Contract Execution.</u> No later than ten (10) Business Days prior to the signing date of any power purchase agreement, interconnection agreement, or other

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agreement for which Borrower intends to request an Acceptable Letter of Credit, notice that such Loan Party intends to enter into such agreement."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Section 7.9(c) of the Credit Agreement is hereby deleted in its entirety and replaced with the following text:

"No Subsidiary will enter into any power purchase agreement or interconnection agreement (or similar agreement) or any power option, swap or similar agreement for the sale of power from a Project unless such agreement (i) is entered into on an arms-length basis on commercially reasonable terms, (ii) with a counterparty that has, or the obligations of which are guaranteed by a Person that has, a long-term senior unsecured non-credit enhanced debt of at least BBB- from S&P or Fitch or Baa3 from Moody's (with the lower rating controlling in the event of a split rating), and (iii) reasonably would be expected to support an Asset Level Financing of the applicable Project."

**Section 2.2** <u>Amendments to Pledge and Security Agreement.</u> Borrower, Collateral Agent, and each Grantor hereby modify the following documents as follows, subject to the terms and conditions set forth herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Schedule I to the Pledge and Security Agreement is hereby deleted in its entirety and replaced in whole with <u>Exhibit C</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Schedule II to the Pledge and Security Agreement is hereby deleted in its entirety and replaced in whole with <u>Exhibit D</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Schedule III to the Pledge and Security Agreement is hereby deleted in its entirety and replaced in whole with <u>Exhibit E</u> attached hereto.

**Section 3.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Waivers.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Lender hereby waives any Default or Event of Default arising from a breach of Section 5.13 or Section 6.10 of the Credit Agreement in connection with the creation of the TransCo Subsidiaries.

**Section 4.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Representations and Warranties.</u> The Borrower hereby represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the representations and warranties contained in Article V of the Credit Agreement or any other Financing Document are true and correct in all material respects (or, if qualified by "materiality," "Material Adverse Effect" or similar language, in all respects as of such date, and after giving effect to such qualification) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date (or, if qualified by "materiality," "Material Adverse Effect" or similar language, in all respects as of such earlier date, and after giving effect to such qualification);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the execution, delivery and performance by the Borrower of this Amendment have been duly authorized by all necessary limited liability company action, and do not and will not (i) violate the terms of its Organizational Documents, (ii) violate in any material respect or result in any material breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any material contractual obligation to which it is a party or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the

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Borrower or its property is subject where the failure to make such payment would be reasonably expected to have a Material Adverse Effect or (iii) violate any applicable Law in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)this Amendment has been duly authorized, executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting creditors' rights generally and (ii) general equitable principles regardless of whether the issue of enforceability is considered in a proceeding in equity or at Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against. the Borrower of this Amendment, or for the consummation of the transactions contemplated hereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)as of the date hereof (after giving effect to this Amendment), no Default or Event of Default has occurred and is continuing or will result from the execution of this Amendment.

**Section 5.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Conditions to Effectiveness.</u> The amendments set forth in <u>Section 2</u> hereof and the consent and waivers set forth in <u>Section 3</u> hereof are subject to and shall become effective as of the date (such date, the <u>"Amendment Effective Date")</u> when the Lender and Collateral Agent have received duly executed counterparts of this Amendment.

**Section 6.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Other Provisions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Parties agree that all other terms and conditions of the Credit Agreement shall remain in full force and effect, except as modified by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)This Amendment is a "Financing Document" for all purposes under the Credit Agreement and each other document. The Borrower, by its signature below, hereby (i) confirms and agrees that each of the Credit Agreement (on and after the Amendment Effective Date, as expressly modified by this Amendment), the Collateral Documents and the other Financing Documents to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects; and (ii) affirms and confirms (A) its obligations under each of the Financing Documents to which it is a party (and, with respect to the Credit Agreement as modified hereby) and (B) the pledge of and/or grant of a security interest in and Lien on its assets as Collateral (as defined in the Pledge and Security Agreement) to secure its Obligations, all as provided in the Financing Documents as originally executed (and, with respect to the Credit Agreement, as modified hereby), and acknowledges and agrees that such pledge and/or grant continue in full force and effect in respect of, and to secure, its Obligations under the Credit Agreement and the other Financing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except as specifically provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the, nor shall it constitute a waiver of any provision of any of the Financing Documents. No failure on the part of the Lender or the Collateral Agent to exercise, and no delay in exercising, and no course of dealing with respect to, any right, remedy, power or privilege under the Credit Agreement or any other Financing Document shall operate as a waiver of such tight, remedy, power or

------

privilege, and no single or partial exercise of any right, remedy, power or privilege under the Credit Agreement or any other Financing Document shall preclude any other or further exercise of such right, remedy, power or privilege, or the exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Sections 10.2 (*Survival of Agreements; Cumulative Nature*)*,* 10.7 (*Confidentiality*)*,* 10.8 (*Governing Law; Submission to Process*)*,* 10.11 (*Severability*)*,* 10.13 (*Waiver of Jury Trial, Punitive Damages, Etc.*)*,* Section 10.15 (*Counterparts; Electronic Transmission*) and Section 10.16 (*Electronic Execution of Assignments and Certain Other Documents*) of the Credit Agreement shall be incorporated herein, *mutatis mutandis.*

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IN WITNESS WHEREOF, the Parties have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers on the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| **Fervo HoldCo LLC,** <br>**as Borrower and a Grantor** | **Fervo HoldCo LLC,** <br>**as Borrower and a Grantor** | **Mercuria Energy Trading SA,**<br>**as Lender** | **Mercuria Energy Trading SA,**<br>**as Lender** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Guillame Vermersch |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Guillame Vermersch | Name: Guillame Vermersch |
| Title: <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> **<u>President&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>** | Title: <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> **<u>President&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>** | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> **<u>Director&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>** | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> **<u>Director&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>** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fervo Energy Company,** <br>**as a Grantor** | **Fervo Energy Company,** <br>**as a Grantor** | **Mercuria Energy Trading SA,**<br>**as Collateral Agent** | **Mercuria Energy Trading SA,**<br>**as Collateral Agent** | **Mercuria Energy Trading SA,**<br>**as Collateral Agent** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | /s/ Guillame Vermersch | /s/ Guillame Vermersch |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Guillame Vermersch | Name: Guillame Vermersch | Name: Guillame Vermersch |
| Title: CEO | Title: CEO | Title: | Title: | &nbsp;&nbsp;&nbsp;&nbsp;Director |
| <u>Date:7/22/2025</u> | <u>Date:7/22/2025</u> | Date: | Date: | &nbsp;&nbsp;&nbsp;&nbsp;07/23/2025 |

---

[Signature Page to Amendment No. 2]

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---

| | | | |
|:---|:---|:---|:---|
| **Cape Phase I Holdco LLC,**<br>**as a Grantor** | **Cape Phase I Holdco LLC,**<br>**as a Grantor** | **Cape Phase II Holdco LLC,**<br>**as a Grantor** | **Cape Phase II Holdco LLC,**<br>**as a Grantor** |
| By: | /s/ Timothy Latimer | By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Fervo GenCo Holdings LLC,**<br>**as a Grantor** | **Fervo GenCo Holdings LLC,**<br>**as a Grantor** | **Cape Generating Station 2 LLC,**<br>**as a Grantor** | **Cape Generating Station 2 LLC,**<br>**as a Grantor** |
| By: | /s/ Timothy Latimer | By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Cape Generating Station 4 LLC,**<br>**as a Grantor** | **Cape Generating Station 4 LLC,**<br>**as a Grantor** | **Corsac Generating Station 1 LLC,**<br>**as a Grantor** | **Corsac Generating Station 1 LLC,**<br>**as a Grantor** |
| By: | /s/ Timothy Latimer | By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |

---

[Signature Page to Amendment No. 2]

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---

| | | | |
|:---|:---|:---|:---|
| **FEC Nevada LLC,**<br>**as a Grantor** | **FEC Nevada LLC,**<br>**as a Grantor** | **Corsac Generating Station 2 LLC,**<br>**as a Grantor** | **Corsac Generating Station 2 LLC,**<br>**as a Grantor** |
| By: | /s/ Timothy Latimer | By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Aspen TransCo LLC,**<br>**as a Grantor** | **Aspen TransCo LLC,**<br>**as a Grantor** | **Fennee TransCo LLC**<br>**as a Grantor** | **Fennee TransCo LLC**<br>**as a Grantor** |
| By: | /s/ Timothy Latimer | By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Fervo TransCo Holdings LLC,** <br>**as a Grantor** | **Fervo TransCo Holdings LLC,** <br>**as a Grantor** | **Marble TransCo LLC,** <br>**as a Grantor** | **Marble TransCo LLC,** <br>**as a Grantor** |
| By: | /s/ Timothy Latimer | By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |

---

[Signature Page to Amendment No. 2]

------

---

| | | | |
|:---|:---|:---|:---|
| **Kit TransCo LLC,**<br>**as a Grantor** | **Kit TransCo LLC,**<br>**as a Grantor** | **Corsac TransCo LLC,** <br>**as a Grantor** | **Corsac TransCo LLC,** <br>**as a Grantor** |
| By: | /s/ Timothy Latimer | By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Corsac HoldCo LLC,** <br>**as a Grantor** | **Corsac HoldCo LLC,** <br>**as a Grantor** | **Swift TransCo LLC,**<br>**as a Grantor** | **Swift TransCo LLC,**<br>**as a Grantor** |
| By: | /s/ Timothy Latimer | By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Star TransCo LLC,**<br>**as a Grantor** | **Star TransCo LLC,**<br>**as a Grantor** |  |  |
| By: | /s/ Timothy Latimer |  |  |
| Name: Timothy Latimer | Name: Timothy Latimer |  |  |
| Title: President | Title: President |  |  |

---

[Signature Page to Amendment No. 2]

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**<u>Exhibit A</u>**

[\*\*\*]

------

**<u>Exhibit B</u>**

[\*\*\*]

------

**Schedule 5.13: Subsidiaries**

**[\*\*\*]**

------

**<u>Exhibit C</u>**

[\*\*\*]

------

**SCHEDULE I**

[\*\*\*]

------

**<u>Exhibit D</u>**

[\*\*\*]

------

**SCHEDULE II**

[\*\*\*]

------

**<u>Exhibit E</u>**

[\*\*\*]

------

**SCHEDULE III**

[\*\*\*]

## Exhibit 10.12

**Exhibit 10.12**

**Execution Version**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**Consent and Amendment No. 3 to Credit Agreement and Pledge and Security Agreement**

This CONSENT AND AMENDMENT NO. 3 TO CREDIT AGREEMENT AND PLEDGE AND SECURITY AGREEMENT (this "<u>Amendment</u>") is made and entered into as of March 6, 2026, by and between Fervo HoldCo LLC ("<u>Borrower</u>"), Mercuria Energy Trading SA, as the Lender under the Existing Credit Agreement and the LC Lender under the LC Facility Agreement, Mercuria Energy Trading SA, as collateral agent for the Secured Parties (in such capacity and together with its successors and permitted assigns in such capacity, the "<u>Collateral</u> <u>Agent</u>"), Fervo Energy Company, each Intermediate Holdco party hereto, and each PPA Subsidiary party hereto (collectively, the "<u>Parties</u>", and each Party other than Mercuria Energy Trading SA, the "<u>Fervo Parties</u>").

WHEREAS, reference is made to the Credit Agreement, dated as of November 20, 2024 (as amended by that certain Amendment No. 1 to the Credit Agreement, dated as of May 21, 2025, that certain Amendment No. 2 to the Credit Agreement, dated as of July 23, 2025, and as further amended, amended and restated, supplemented or otherwise modified from time to time immediately prior to the effectiveness of this Amendment, the "<u>Existing Credit Agreement</u>"; as amended by this Amendment and as further amended, amended and restated, supplemented or otherwise modified from time to time, the "<u>Amended</u> <u>Credit Agreement</u>"), by and between the Borrower and the Lender;

WHEREAS, the Parent, the Borrower and each Intermediate Holdco and PPA Subsidiary party thereto entered into that certain Pledge and Security Agreement dated as of November 20, 2024 (as amended, supplemented or otherwise modified immediately prior to the effectiveness of this Amendment, the "<u>Existing Pledge</u> <u>Agreement</u>"; as amended by this Amendment and as further amended, amended and restated, supplemented or otherwise modified from time to time, the "<u>Amended Pledge</u> <u>Agreement</u>");

WHEREAS, the Credit Agreement permits certain Asset Level Financings, and Cape Phase 1 Borrower LLC, a Delaware limited liability company (the "<u>Cape</u> <u>Phase</u> <u>1</u> <u>Borrower</u>"), and Phase 1 WellCo, LLC, a Delaware limited liability company (the "<u>WellCo Borrower</u>" and together with Cape Phase 1 Borrower, the "<u>Project</u> <u>Granite</u> <u>Borrowers</u>"), desire to enter into that certain Credit Agreement, dated on or around March 6, 2026 (the "<u>Project Granite Credit Agreement</u>"), by and among the Project Granite Borrowers, MUFG Bank, Ltd., as administrative agent, HSBC Bank USA, National Association, as collateral agent, the lenders from time to time party thereto, and each other Person party thereto (the financing and credit facilities established pursuant to the Project Granite Credit Agreement shall be referred to as the "<u>Project Granite Financing</u>");

WHEREAS, it is a requirement under the Project Granite Credit Agreement that Cape Phase I HoldCo LLC ("<u>Cape Phase I HoldCo</u>") execute and deliver that certain Pledge and Security Agreement (the "<u>Project Granite Pledge</u> <u>Agreement</u>") by and between Cape Phase I HoldCo and HSBC Bank USA, National Association, as collateral agent, pursuant to which Cape Phase I HoldCo shall pledge all membership interests owned by Cape Phase I HoldCo in Cape Phase 1 Borrower;

WHEREAS, in connection with the Project Granite Credit Agreement and the Project Granite Pledge Agreement, the Borrower has requested that the Collateral Agent, the Lender and the LC Lender release the Collateral from all Liens granted by Cape Phase I HoldCo under the Secured Obligation Documents (as defined in the Intercreditor Agreement);

WHEREAS, the Borrower has requested that the Secured Parties take a first priority security interest (subject to any Excepted Liens) in Cape HoldCo LLC and Cape Phase 1 Intermediate Holdco LLC (collectively, the "<u>Cape</u> <u>Intermediate</u> <u>Holdco</u>s") in lieu of the current first priority security interest in Cape

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Phase I HoldCo, and the Cape Intermediate Holdcos will each deliver an Accession Agreement (the "<u>Cape</u> <u>Accession</u> <u>Agreements</u>") to join the Amended Pledge Agreement concurrently with this Amendment; and

WHEREAS, in connection with the Project Granite Credit Agreement and the Project Granite Pledge Agreement, the Borrower, the Lender, the Collateral Agent, each Intermediate Holdco party hereto, and each PPA Subsidiary party hereto have agreed to amend the Existing Credit Agreement and the Existing Pledge Agreement pursuant to the terms and conditions of this Amendment.

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

**Section 1.** <u>Definitions and other Interpretive Provisions</u>. Unless otherwise indicated herein, capitalized terms used but not defined herein shall have their respective meanings set forth in the Amended Credit Agreement or the Amended Pledge Agreement, as applicable. The principles of construction and interpretation set forth in Article I (*Defined Terms and Interpretations*) of the Credit Agreement shall apply to, and are hereby incorporated by reference in, this Amendment, *mutatis mutandis*, as if fully set forth herein.

**Section 2.1** <u>Amendment</u> <u>to</u> <u>Credit</u> <u>Agreement</u>. Subject to the terms and conditions set forth herein, the Existing Credit Agreement is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The defined term "Cape Phase I Asset Level Financing" in Section 1.1 of the Existing Credit Agreement is hereby deleted in its entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The following defined terms shall be added to Section 1.1 of the Existing Credit Agreement in the correct alphabetical order:

""<u>2024</u> <u>Cape</u> <u>Phase</u> <u>I</u> <u>Asset</u> <u>Level</u> <u>Financing</u>" means, collectively, the financing and credit facilities established pursuant to that certain Loan Agreement, dated as of August 13, 2024, by and among Cape Generation Station 1 LLC, a Delaware limited liability company ("<u>Cape</u> <u>1</u>"), Cape Generation Station 3 LLC, a Delaware limited liability company ("<u>Cape</u> <u>3</u>") and XRL ALC, LLC, a Delaware limited liability company ("<u>XRC</u>") together with the transactions, instruments, agreements, documents and writings contemplated thereunder, which for the avoidance of doubt shall include that certain Security Agreement, dated as of August 13, 2024, by and among Cape 1, Cape 3 and XRC and that certain Pledge and Security Agreement, dated as of August 13, 2024, by and between Cape Phase I HoldCo LLC, a Delaware limited liability company ("<u>Cape Phase I HoldCo</u>"), and XRC."

""<u>2026</u> <u>Cape</u> <u>Phase</u> <u>I</u> <u>Asset</u> <u>Level</u> <u>Financing</u>" means, collectively, the financing and credit facilities established pursuant to that certain Credit Agreement dated on or about March 6, 2026, by and among Cape Phase 1 Borrower LLC, Phase 1 WellCo, LLC, the lenders party thereto, MUFG Bank, Ltd., as administrative agent, HSBC Bank USA, National Association, as collateral agent, and each other Person party thereto, together with transactions, instruments, agreements, documents and writings contemplated thereunder, which for the avoidance of doubt shall include the Security Documents (as defined therein) as of the date hereof."

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""<u>Excluded Entities</u>" means, collectively: (a) Cape Phase I HoldCo LLC and (b) Cape Phase 1 Borrower LLC."

""<u>Third</u> <u>Amendment Effective Date</u>" has the meaning assigned to such term in the Third Amendment to Credit Agreement."

""<u>Third Amendment to Credit Agreement</u>" means that certain Consent and Amendment No. 3 to the Credit Agreement and Pledge and Security Agreement dated as of March 6, 2026 by and between the Borrower, the Lender, the LC Lender, the Collateral Agent, the Parent and each Intermediate Holdco and PPA Subsidiary party thereto."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The definition of "Asset Level Financing" in Section 1.1 of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

""<u>Asset</u> <u>Level</u> <u>Financing</u>" means a customary, non-recourse project finance style financing for the development, construction and operation of an Approved Project by a PPA Subsidiary that has (a) a debt-to-equity ratio of no greater than 70:30, and (b) would allow for the exercise by the Lender and Collateral Agent of any rights and remedies under the Pledge and Security Agreement upon an Event of Default hereunder; provided that (i) on and after the Effective Date, the 2024 Cape Phase I Asset Level Financing shall be deemed to constitute an Asset Level Financing for all purposes under this Agreement and (ii) on and after the Third Amendment Effective Date, the 2026 Cape Phase I Asset Level Financing shall be deemed to constitute an Asset Level Financing for all purposes under this Agreement."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The definition of "<u>Intermediate Holdco</u>" in Section 1.1 of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

""<u>Intermediate Holdco</u>" means each Subsidiary of the Borrower, other than the Excluded Entities, that Controls (a) any PPA Subsidiary or (b) any Released PPA Subsidiary."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Clause (l) of Section 7.1 of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

"(l) Debt under any Asset Level Financing if (x) the applicable Intermediate Holdco owns, directly or indirectly, at least fifty-one (51%) of the Equity Interests in the borrower or borrowers thereof and maintains Control of such borrower or borrowers, (y) the borrower or borrowers thereof are not Loan Parties or are Released PPA Subsidiaries, and (z) the Borrower notified the Lender of the Asset Level Financing pursuant to <u>Section</u> <u>6.1(h)</u>; and"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Schedule 5.13 to the Existing Credit Agreement is hereby deleted in its entirety and replaced in whole with <u>Exhibit A</u> attached hereto.

**Section 2.2** <u>Amendments</u> <u>to</u> <u>Pledge and Security</u> <u>Agreement</u>. Subject to the terms and conditions set forth herein, the Existing Pledge Agreement is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Schedule I to the Existing Pledge and Security Agreement is hereby deleted in its entirety and replaced in whole with <u>Exhibit B</u> attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Schedule II to the Existing Pledge and Security Agreement is hereby deleted in its entirety and replaced in whole with <u>Exhibit C</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Schedule III to the Existing Pledge and Security Agreement is hereby deleted in its entirety and replaced in whole with <u>Exhibit D</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)All references in the Existing Pledge Agreement to any "Grantor" or "Pledgor" shall be deemed to exclude Cape Phase I HoldCo.

**Section 3** <u>Release</u> <u>of</u> <u>Cape</u> <u>Phase</u> <u>I</u> <u>HoldCo</u> <u>Collateral</u>. The Parties hereby agree that as of the Third Amendment Effective Date (as defined below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)all Liens and security interests of any nature or description granted by Cape Phase I HoldCo as Grantor (as defined in the Existing Pledge Agreement) or Pledgor (as defined in the Existing Pledge Agreement) in favor of the Collateral Agent under the Existing Pledge Agreement prior to the date hereof (the assets and property of Cape Phase I HoldCo encumbered by such Liens and security interests, collectively, the "<u>Property</u>") pursuant to the Secured Obligation Documents shall be automatically forever and irrevocably released, satisfied and discharged (for the avoidance of doubt, the Liens granted by Cape Phase 1 Intermediate HoldCo LLC over its Equity Interests in Cape Phase I HoldCo shall not be released, and such Equity Interests owned by Cape Phase 1 Intermediate HoldCo LLC are not included in the definition of "Property" above);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Cape Phase I HoldCo shall cease to be a "Grantor" and "Pledgor" under the Amended Pledge Agreement for all purposes, and its obligations thereunder and under any other Secured Obligation Documents are hereby deemed to be irrevocably discharged, terminated and released; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Collateral Agent (i) is hereby authorized and directed to execute (if applicable) and deliver to the Borrower such UCC termination statements, releases, terminations, reconveyances and other appropriate documentation reasonably requested by Cape Phase I HoldCo or the Borrower to effect the release of record of any pledges, financing statements, encumbrances, and other security documents granting Liens or security interests to the Collateral Agent with respect to the Property, (ii) authorizes Cape Phase I HoldCo, the Borrower and their designees to file any of the UCC termination statements, releases, terminations, and other applicable instruments of termination contemplated in clause (i) above, (iii) will take such further action as Cape Phase I HoldCo or the Borrower may reasonably request from time to time in order to effectuate the release of the Collateral Agent's Liens in the Property, and (iv) shall promptly deliver to Cape Phase I HoldCo all Property in its possession, if any.

**Section 4.** <u>Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Lender and the LC Lender hereby consent to the relevant entities' entry into the Project Granite Credit Agreement and associated Project Granite Financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Lender, the LC Lender and the Collateral Agent hereby consent to the release of all of the Collateral Agent's Liens and security interests on the Property, as provided in <u>Section 3</u>. This Amendment shall constitute an Act of Secured Parties (as defined in the Intercreditor Agreement) directing the Collateral Agent to act in accordance with Section 3(c) to give effect to the release contemplated therein.

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**Section 5.** <u>Representations</u> <u>and</u> <u>Warranties</u>. The Fervo Parties hereby represent and warrant that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the representations and warranties contained in Article V of the Credit Agreement or any other Financing Document are true and correct in all material respects (or, if qualified by "materiality," "Material Adverse Effect" or similar language, in all respects as of such date, and after giving effect to such qualification) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date (or, if qualified by "materiality," "Material Adverse Effect" or similar language, in all respects as of such earlier date, and after giving effect to such qualification);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the execution, delivery and performance by the Fervo Parties of this Amendment have been duly authorized by all necessary limited liability company action, and do not and will not (i) violate the terms of its Organizational Documents, (ii) violate in any material respect or result in any material breach or contravention of, or the creation of any Lien under, or require any payment to be made under (A) any material contractual obligation to which it is a party or (B) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Fervo Parties or their property is subject where the failure to make such payment would be reasonably expected to have a Material Adverse Effect or (iii) violate any applicable Law in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)this Amendment has been duly authorized, executed and delivered by the Fervo Parties and constitutes a legal, valid and binding obligation of the Fervo Parties, enforceable against each of the Fervo Parties in accordance with its terms, except as the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting creditors' rights generally and (ii) general equitable principles regardless of whether the issue of enforceability is considered in a proceeding in equity or at Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the Project Granite Financing is a customary, non-recourse project finance style financing that has (a) a debt-to-equity ratio of no greater than 70:30 and (b) allows for the exercise by the Lender and Collateral Agent of any rights and remedies under the Pledge and Security Agreement upon an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Fervo Parties of this Amendment, or for the consummation of the transactions contemplated hereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)as of the date hereof (after giving effect to this Amendment), no Default or Event of Default has occurred and is continuing or will result from the execution of this Amendment.

**Section 6.** <u>Conditions</u> <u>to</u> <u>Effectiveness</u>. The amendments set forth in <u>Sections</u> <u>2.1</u> and <u>2.2</u> hereof, the releases set forth in <u>Section 3</u> hereof, and the consents set forth in <u>Section 4</u> hereof are subject to and shall become effective as of the date (such date, the "<u>Third</u> <u>Amendment Effective</u> <u>Date</u>") when the Lender and Collateral Agent have received duly executed counterparts of this Amendment and the Cape Accession Agreements.

**Section 7.** <u>Other</u> <u>Provisions</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Parties agree that all other terms and conditions of the Credit Agreement shall remain in full force and effect, except as modified by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)This Amendment is a "Financing Document" for all purposes under the Credit Agreement and each other document. The Borrower, by its signature below, hereby (i) confirms and agrees that each of the Credit Agreement, the Collateral Documents and the other Financing Documents (in each case, on and after the Third Amendment Effective Date, as expressly modified by this Amendment) to which it is a party is, and shall continue to be, in full force and effect except as expressly released pursuant to <u>Section</u> <u>3</u>, and is hereby ratified and confirmed in all respects; and (ii) affirms and confirms (A) its obligations under each of the Financing Documents to which it is a party (and, with respect to the Credit Agreement, as modified hereby) and (B) its pledge of and/or grant of a security interest in and Lien on its assets as Collateral (as defined in the Pledge and Security Agreement) to secure its Obligations, all as provided in the Financing Documents (as modified hereby), and acknowledges and agrees that such pledge and/or grant continue in full force and effect in respect of, and to secure, its Obligations under the Credit Agreement and the other Financing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except as specifically provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of, nor shall it constitute a waiver of any provision of any of, the Financing Documents. No failure on the part of the Lender or the Collateral Agent to exercise, and no delay in exercising, and no course of dealing with respect to, any right, remedy, power or privilege under the Credit Agreement or any other Financing Document shall operate as a waiver of such right, remedy, power or privilege, and no single or partial exercise of any right, remedy, power or privilege under the Credit Agreement or any other Financing Document shall preclude any other or further exercise of such right, remedy, power or privilege, or the exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Sections 10.2 (*Survival of Agreements; Cumulative Nature*), 10.7 (*Confidentiality*), 10.8 (*Governing Law; Submission to Process*), 10.11 (*Severability*), 10.13 (*Waiver of Jury Trial, Punitive Damages, Etc.*), Section 10.15 (*Counterparts; Electronic Transmission*) and Section 10.16 (*Electronic Execution of Assignments and Certain Other Documents*) of the Credit Agreement shall be incorporated herein by reference, *mutatis mutandis*.

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IN WITNESS WHEREOF, the Parties have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers on the date first written above.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fervo HoldCo LLC,**<br>**as the Borrower and a Grantor** | **Fervo HoldCo LLC,**<br>**as the Borrower and a Grantor** | **Mercuria Energy Trading SA,**<br>**as the Lender** | **Mercuria Energy Trading SA,**<br>**as the Lender** | **Mercuria Energy Trading SA,**<br>**as the Lender** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | /s/ Guillame Vermersch | /s/ Guillame Vermersch |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: | Name: | Guillame Vermersch |
| Title: President | Title: President |  |  |  |
|  |  | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Mercuria Energy Trading SA,**<br>**as the LC Lender** | **Mercuria Energy Trading SA,**<br>**as the LC Lender** | **Mercuria Energy Trading SA,**<br>**as the LC Lender** | **Mercuria Energy Trading SA,**<br>**as Collateral Agent** | **Mercuria Energy Trading SA,**<br>**as Collateral Agent** | **Mercuria Energy Trading SA,**<br>**as Collateral Agent** |
| By: | /s/ Guillaume Vermersch | /s/ Guillaume Vermersch | By: | /s/ Guillame Vermersch | /s/ Guillame Vermersch |
| Name: | Name: | Guillaume Vermersch | Name: | Name: | Guillame Vermersch |
| Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  | Title:<u>&nbsp;&nbsp;&nbsp;&nbsp; Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
| Date: | Date: |  | Date: | Date: |  |

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[Signature Page to Amendment No. 3]

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| | | | |
|:---|:---|:---|:---|
| **Fervo Energy Company,**<br>**as a Grantor** | **Fervo Energy Company,**<br>**as a Grantor** | **Cape Phase II Holdco LLC,**<br>**as a Grantor** | **Cape Phase II Holdco LLC,**<br>**as a Grantor** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Fervo GenCo Holdings LLC,**<br>**as a Grantor** | **Fervo GenCo Holdings LLC,**<br>**as a Grantor** | **Cape Generating Station 2 LLC,**<br>**as a Grantor** | **Cape Generating Station 2 LLC,**<br>**as a Grantor** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Cape Generating Station 4 LLC,**<br>**as a Grantor** | **Cape Generating Station 4 LLC,**<br>**as a Grantor** | **Corsac Generating Station 1 LLC,**<br>**as a Grantor** | **Corsac Generating Station 1 LLC,**<br>**as a Grantor** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |

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[Signature Page to Amendment No. 3]

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| | | | |
|:---|:---|:---|:---|
| **FEC Nevada LLC,**<br>**as a Grantor** | **FEC Nevada LLC,**<br>**as a Grantor** | **Corsac Generating Station 2 LLC,**<br>**as a Grantor** | **Corsac Generating Station 2 LLC,**<br>**as a Grantor** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Aspen TransCo LLC,**<br>**as a Grantor** | **Aspen TransCo LLC,**<br>**as a Grantor** | **Fennee TransCo LLC**<br>**as a Grantor** | **Fennee TransCo LLC**<br>**as a Grantor** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Fervo TransCo Holdings LLC,** <br>**as a Grantor** | **Fervo TransCo Holdings LLC,** <br>**as a Grantor** | **Marble TransCo LLC,** <br>**as a Grantor** | **Marble TransCo LLC,** <br>**as a Grantor** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |

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[Signature Page to Amendment No. 3]

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| | | | |
|:---|:---|:---|:---|
| **Kit TransCo LLC,**<br>**as a Grantor** | **Kit TransCo LLC,**<br>**as a Grantor** | **Corsac TransCo LLC,** <br>**as a Grantor** | **Corsac TransCo LLC,** <br>**as a Grantor** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Corsac HoldCo LLC,** <br>**as a Grantor** | **Corsac HoldCo LLC,** <br>**as a Grantor** | **Swift TransCo LLC,**<br>**as a Grantor** | **Swift TransCo LLC,**<br>**as a Grantor** |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |
| **Star TransCo LLC,**<br>**as a Grantor** | **Star TransCo LLC,**<br>**as a Grantor** | **Cape Phase I Intermediate Holdco**<br>**LLC, as a Grantor**  | **Cape Phase I Intermediate Holdco**<br>**LLC, as a Grantor**  |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |

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[Signature Page to Amendment No. 3]

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| | | | |
|:---|:---|:---|:---|
| **Cape HoldCo LLC,**<br>**as a Grantor**  | **Cape HoldCo LLC,**<br>**as a Grantor**  | **Cape Phase 1 HoldCo LLC,** <br>**as the exiting Grantor**  | **Cape Phase 1 HoldCo LLC,** <br>**as the exiting Grantor**  |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President | Title: President | Title: President |

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[Signature Page to Amendment No. 3]

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**<u>Exhibit</u> <u>A</u>**

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[Signature Page to Amendment No. 3]

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**<u>Exhibit</u> <u>B</u>**

[\*\*\*]

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**SCHEDULE I**

**[\*\*\*]**

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**<u>Exhibit</u> <u>C</u>**

[\*\*\*]

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**SCHEDULE II**

**[\*\*\*]**

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**<u>Exhibit</u> <u>D</u>**

[\*\*\*]

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**SCHEDULE III**

**[\*\*\*]**

## Exhibit 10.13

**Exhibit 10.13**

**Execution Version**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**AMENDED AND RESTATED**

**LIMITED LIABILITY COMPANY AGREEMENT**

**OF**

**CAPE PHASE I HOLDCO, LLC**

**a Delaware limited liability company**

**Dated as of May 28, 2025**

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 2 |
| Section 1.01. | Definitions | 2 |
| Section 1.02. | Construction | 14 |
| ARTICLE II ORGANIZATION | ARTICLE II ORGANIZATION | 15 |
| Section 2.01. | Formation | 15 |
| Section 2.02. | Name | 15 |
| Section 2.03. | Registered Office; Registered Agent | 15 |
| Section 2.04. | Principal Office | 16 |
| Section 2.05. | Purpose; Powers | 16 |
| Section 2.06. | Fiscal Year | 16 |
| Section 2.07. | Filing of Certificates | 16 |
| Section 2.08. | Term | 16 |
| ARTICLE III MEMBERS; UNITS; CAPITAL CONTRIBUTIONS | ARTICLE III MEMBERS; UNITS; CAPITAL CONTRIBUTIONS | 16 |
| Section 3.01. | Members | 16 |
| Section 3.02. | Units | 17 |
| Section 3.03. | Capital Contributions; Preemptive Rights | 17 |
| Section 3.04. | Capital Accounts | 21 |
| Section 3.05. | Predecessor and Successor Members | 22 |
| Section 3.06. | Withdrawal or Return of Capital | 22 |
| Section 3.07. | No Other Contributions | 22 |
| Section 3.08. | Title to Company Property | 22 |
| Section 3.09. | Liability to Third Parties | 22 |
| Section 3.10. | Subsidiaries | 22 |
| Section 3.11. | Project Financing | 22 |
| ARTICLE IV DISPOSITIONS OF INTERESTS | ARTICLE IV DISPOSITIONS OF INTERESTS | 23 |
| Section 4.01. | Transfers of Units | 23 |
| Section 4.02. | Investment Exit Terms | 24 |
| Section 4.03. | Internal Restmctu1ing | 25 |
| Section 4.04. | Non-Accredited Investors | 25 |
| Section 4.05. | Representations and Warranties | 26 |
| Section 4.06. | Securityholders Agreement | 27 |
| Section 4.07. | Redemption | 27 |
| ARTICLE V DISTRIBUTIONS AND ALLOCATIONS | ARTICLE V DISTRIBUTIONS AND ALLOCATIONS | 27 |
| Section 5.01. | Distributions | 27 |
| Section 5.02. | Allocations | 28 |
| Section 5.03. | Taxes Paid on Behalf of a Member; Entity-Level Taxes | 31 |
| ARTICLE VI MANAGEMENT | ARTICLE VI MANAGEMENT | 33 |
| Section 6.01. | Management | 33 |
| Section 6.02. | Board of Managers | 33 |

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-i-

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**<u>**TABLE OF CONTENTS**</u>**

(Continued)

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| | | |
|:---|:---|:---|
| Section 6.03. | Transactions with Affiliates | 38 |
| Section 6.04. | Officers | 38 |
| Section 6.05. | Waiver of Fiduciary Duties; Indemnification; Limitation of Liability | 38 |
| Section 6.06. | Company as Indemnitor of First Resort | 40 |
| Section 6.07. | Managers' and Officers' Insurance | 41 |
| Section 6.08. | Other Activities | 41 |
| Section 6.09. | No Recourse Against Nonparty Affiliates | 41 |
| ARTICLE VII RIGHTS OF MEMBERS; CONFIDENTIALITY; BOOKS AND RECORDS | ARTICLE VII RIGHTS OF MEMBERS; CONFIDENTIALITY; BOOKS AND RECORDS | 42 |
| Section 7.01. | Access to Information | 42 |
| Section 7.02. | Financial Reports | 42 |
| Section 7.03. | Confidentiality | 42 |
| Section 7.04. | Press Releases | 43 |
| Section 7.05. | Maintenance of Books and Records | 43 |
| Section 7.06. | Bank Accounts | 43 |
| ARTICLE VIII TAXES | ARTICLE VIII TAXES | 43 |
| Section 8.01. | Tax Returns | 43 |
| Section 8.02. | Tax Elections | 44 |
| Section 8.03. | Partnership Representative | 44 |
| ARTICLE IX DISSOLUTION, LIQUIDATION AND TERMINATION | ARTICLE IX DISSOLUTION, LIQUIDATION AND TERMINATION | 46 |
| Section 9.01. | Dissolution | 46 |
| Section 9.02. | Liquidation and Termination | 46 |
| Section 9.03. | Cancellation of Filing | 47 |
| ARTICLE X GENERAL TERMS | ARTICLE X GENERAL TERMS | 47 |
| Section 10.01. | Notices | 47 |
| Section 10.02. | Entire Agreement; Supersedure; Third-Party Beneficiaries | 47 |
| Section 10.03. | Effect of Waiver or Consent | 48 |
| Section 10.04. | Amendment or Modification | 48 |
| Section 10.05. | Survivability of Terms | 48 |
| Section 10.06. | Binding Effect | 48 |
| Section 10.07. | Governing Law; Severability | 48 |
| Section 10.08. | Dispute Resolution; Consent to Jurisdiction; Waiver of Jury Trial | 49 |
| Section 10.09. | Specific Performance | 50 |
| Section 10.10. | Offset | 50 |
| Section 10.11. | Further Assurances | 50 |
| Section 10.12. | Waiver of Certain Rights | 50 |
| Section 10.13. | Counterparts | 51 |
| Section 10.14. | Electronic Transmissions | 51 |

---

-ii-

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**<u>Schedules & Exhibits</u>**

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| | |
|:---|:---|
| Schedule 1 | Members, Classes, Capital Contributions, and Units |
| Schedule 2 | Schedule of Class A Target Capital Payment Amounts |
| Exhibit A | Form of Adoption Agreement |
| Exhibit B | Project Budget |

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-iii-

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**AMENDED AND RESTATED**

**LIMITED LIABILITY COMPANY AGREEMENT**

**OF**

**CAPE PHASE I HOLDCO, LLC**

This Amended and Restated Limited Liability Company Agreement (this <u>"Agreement")</u> of Cape Phase I Holdco, LLC, a Delaware limited liability company (the <u>"Company"),</u> is made and entered into as of May 28, 2025 (the <u>"Effective Date")</u> by and among the undersigned Members (as defined below) and the Company, and each other Person that becomes a Member hereunder in accordance with the terms hereof. Capitalized terms used herein but not otherwise defined herein shall have the respective meanings given to them set forth in <u>Section 1.01.</u>

**RECITALS**

WHEREAS, the Company was formed by the filing of a certificate of formation with the Secretary of State of the State of Delaware on December 13, 2023;

WHEREAS, Cape Holdco LLC, a Delaware limited liability company, as the initial sole member of the Company <u>("Fervo"),</u> entered into that certain Limited Liability Company Agreement, dated as of December 13, 2023 (the <u>"Original Agreement");</u>

WHEREAS, immediately prior to the Closing (as defined in the Investor Subscription Agreement), Fervo owned beneficially and of record 100% of the issued and outstanding Membership Interests in the Company;

WHEREAS, simultaneously with the execution of this Agreement, Granite Energy InvestCo, LLC, a Delaware limited liability company <u>("Investor",</u> and the Company entered into that certain Subscription Agreement (the <u>"Investor Subscription Agreement"),</u> pursuant to which, among other things, the Investor subscribed for, and the Company issued to Investor, 4,635 Class A Units of the Company;

WHEREAS, Investor desires to be admitted to the Company as a Member, and Fervo desires to continue as a Member; and

WHEREAS, Fervo and Investor desire to amend and restate the Original Agreement to reflect their agreement as Members to the terms, provisions and conditions with respect to the regulation and management of the Company set forth herein and provide for the relative tights and obligations of the Members with respect to the Company as hereinafter provided.

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NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

**ARTICLE I**

**DEFINITIONS**

Section 1.01.&nbsp;&nbsp;&nbsp;&nbsp;**Definitions.** As used in this Agreement, the following terms have the following meanings:

<u>"Accredited Investor"</u> has the meaning set forth in Regulation D promulgated under the Securities Act.

<u>"Act"</u> means the Delaware Limited Liability Company Act

<u>"Action"</u> has the meaning set forth in <u>Section 6.02(o)(i)(F).</u>

<u>"Adjusted Capital Account"</u> means, with respect to any Member, the balance, if any, in such Member's Capital Account as of the end of the relevant Fiscal Year or portion thereof, after giving effect to the following adjustments:

&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)&nbsp;&nbsp;&nbsp;&nbsp;add to such Capital Account any amounts which such Member is obligated to restore pursuant to this Agreement or is deemed to be obligated to restore to the Company pursuant to Treasury Regulations Section l.704-l(b)(2)(ii) c) or the penultimate sentence of each of Treasury Regulations Sections 1.704-2(g)(l) and 1.704-2(i)(5); 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;subtract from such Capital Account such Member's share of the items described in Treasury Regulations Sections 1.704-l(b)(2)(ii)(d)(4), (5), and (6).

This definition is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

<u>"Adoption Agreement"</u> means an Adoption Agreement substantially in the form of <u>Exhibit A.</u>

<u>"Affiliate"</u> means, with respect to a Person, any other Person Controlling, Controlled by, or under common Control with the first Person. For purposes of this Agreement, (a) the Members and their respective Affiliates (other than the Company Group) shall be deemed not to be Affiliates of the Company Group and (b) each Company Group member shall be deemed not to be an Affiliate of any Member or its Affiliates (other than the Company Group).

<u>"</u><u>Agreement</u><u>"</u> has the meaning set forth in the introductory paragraph hereof.

<u>"</u><u>Anti-Corruption Laws</u><u>"</u> means any and all Laws concerning or relating to the prevention or prohibition of bribery or corruption, including, but not limited to, (i) the U.S. Foreign Corrupt Practices Act 1977, as amended, (ii) the UK Bribery Act 2010, as amended, (iii) principles described in the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed in Paris on December 17, 1997, which entered into force on February 15, 1999, and such Convention's Commentaries.

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<u>"Anti-Money Laundering Laws"</u> means any Law relating to the prevention or prohibition of money laundering or terrorism financing, including the USA PATRIOT Act of 2001, as amended.

<u>"Available Cash"</u> means, with respect to any quarter of any Fiscal Year, an amount equal to, the sum of all unrestricted cash and cash equivalents of the Company Group, including the proceeds of any transfer of PTCs by any member of the Company Group (but excluding any Capital Contributions and the proceeds of any Project Financing), as of the end of such fiscal quarter, *less* the amount of any cash reserves that are necessary or appropriate in the reasonable discretion of the Board as determined in good faith (a) for debt service and the payment of all fees and expenses related to any indebtedness of the Company Group (including any Project Financing), (b) to provide for the proper conduct of the business of the Company subsequent to such period, including reserves for the payment of costs and expenses, including capital costs and expenses, operating costs and expenses (including those related to scheduled maintenance on the Project), administrative costs and expenses and Taxes, (c) to perform its obligations Under any contract to which any member of the Company Group is a party or by which it is bound or its assets are subject or (d) to comply with applicable Law.

<u>"Bankruptcy"</u> means, with respect to any Person, that (a) such Person (i) makes a general assignment for the benefit of creditors; (ii) files a voluntary bankruptcy petition; (iii) becomes the subject of an order for relief or is declared insolvent in any federal or state bankruptcy or insolvency proceedings; (iv) files a petition or answer seeking for such Person a reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any Law; (v) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against such Person in a proceeding of the type described in subclauses (i) through (iv) of this clause (a); or (vi) seeks, consents to, or acquiesces in the appointment of a trustee, receiver or liquidator of such Person or of all or any substantial part of such Person's properties; or (b) against such Person, a proceeding seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any Law has been commenced and one hundred twenty (120 days have expired without dismissal thereof or with respect to which, without such Person's consent or acquiescence, a trustee, receiver or liquidator of such Person or of all or any substantial part of such Person's properties has been appointed and ninety (90) days have expired without the appointment's having been vacated or stayed, or ninety (90) days have expired after the date of expiration of a stay, if the appointment has not previously been vacated.

<u>"Board"</u> has the meaning set forth in <u>Section 6.01.</u>

<u>"Business Day"</u> means any day other than a Saturday, Sunday, or legal holiday on which banks in New York, New York or Houston, Texas are authorized or obligated by Law to close.

<u>"Cape TransCo"</u> means Cape TransCo LLC, a Delaware limited liability company.

<u>"Capital Account"</u> means an account established and maintained for each Member on the Company's books and records in compliance with Treasury Regulations Sections 1.704-l(b)(2)(iv) and 1.704-2 as amended, and <u>Section 3.04.</u>

<u>"Capital Call"</u> means, as applicable, any Common Capital Call, Investor Capital Call or other written request for additional Capital Contributions issued by the Board pursuant to <u>Section</u> <u>3.03(b)(iv).</u>

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<u>"Capital Contribution"</u> means the amount of cash and property (based on the Fair Market Value thereof, net of any liabilities assumed or taken subject to by the Company) contributed or deemed contributed to the Company by a Member pursuant to this Agreement.

<u>"Capital Sharing Percentage"</u> means, at any time with respect to a Member, a fraction (expressed as a percentage), the numerator of which is the total number of Class B Units held by such Member at such time and the denominator of which is the total number of Class B Units held by all Members at such time.

<u>"Cause"</u> means, with respect to any individual, (a) fraud or other material dishonesty with respect to the Company by such individual, (b) conviction of such individual of, or plea of guilty or nolo contendere by such individual to, any crime that is a felony or that involves fraud or dishonesty or (c) indictment of such individual for or such individual being charged with any (i) crime involving insider trading or (ii) violation of any Anti-Corruption Laws or Anti-Money Laundering Laws.

<u>"Certificate</u><u>"</u> has the meaning set forth in <u>Section 2.01.</u>

<u>"CGS l</u>"; means Cape Generating Station 1 LLC,, a Delaware limited liability company.

<u>"CGS 2</u><u>"</u> means Cape Generating Station 2 LLC, a Delaware limited liability company.

<u>"CGS 3</u><u>"</u> means Cape Generating Station 3 LLC, a Delaware limited liability company.

<u>"CGS 4</u><u>"</u> means Cape Generating Station 4 LLC, a Delaware limited liability company.

<u>"CGS 5</u><u>"</u> means Cape Generating Station 5 LLC, a Delaware limited liability company.

<u>"Class A Manager</u><u>"</u> has the meaning set forth in <u>Section 6.02(a)(i).</u>

<u>"Class A Member</u><u>"</u> means any Member owning Class A Units, in such capacity.

<u>"Class A Post-COD Preferred Yield</u><u>"</u> means, for any Class A Unit at any time after Final Completion, the amount accrued as of such time in respect of such Class A Unit (commencing on the date of Final Completion) at a rate of 5% per annum on the sum of (a) the Class A Unpaid Capital Amount for such Class A Unit at such time, *plus* (b) the Class A Preferred Unpaid Yield on such Class A Unit accumulated for all prior quarterly compounding periods. For the avoidance of doubt, any Class A Post-COD Preferred Yield accrued with respect to clause (a) or (b) in any given calendar quarter that is not distributed pursuant to <u>Section 5.0l(a)(i)</u> shall increase the Class A Preferred Unpaid Yield under clause (a) of the definition thereof as of the beginning of the succeeding calendar quarter and thereafter accrue Class A Post-COD Preferred Yield pursuant to clause (b) of this definition.

<u>"Class A Pre-COD Preferred Yield</u><u>"</u> means, for any Class A Unit at any time prior to Final Completion, the amount accrued as of such time in respect of such Class A Unit (commencing with respect to such Class A Unit on the date the Company issues or issued such Class A Unit) at a rate of 5% per annum on the Class A Unpaid Capital Amount for such Class A Unit at such time (as accumulated for all prior monthly compounding periods). For the avoidance of doubt, any Class A Pre-COD Preferred Yield accrued in any given month shall increase the Class A Unpaid Amount as of the beginning of the succeeding month.

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<u>"Class A Preferred Capital Contributions</u><u>"</u> means, for any Class A Unit at any time, the Sum of the Capital Contributions attributable to the acquisition of such Class A Unit.

<u>"Class A Preferred Unpaid Yield</u><u>"</u> means, for any Class A Unit at any time after Final Completion, an amount equal to the excess, if any, of (a) the aggregate Class A Post-COD Preferred Yield accrued on such Class A Unit as of such time, *minus* (b) the aggregate amount of all distributions made by the Company in respect of such Class A Unit pursuant to <u>Section</u> <u>5.0l(a)(i)</u> as of such time.

<u>"Class A Target Capital Payment Amount</u><u>"</u> means, for any Class A Unit at any time, an amount equal to the excess, if any, of (a) such Class A Unit's pro rata portion, based on the relative Class A Unpaid Capital Amounts of each Class A Unit as of such time, of the aggregate sum of target payment amounts with respect to the Class A Units prior to such time as set forth in the third column of <u>Schedule 2</u> (which such Schedule shall be automatically updated to reflect any payments to Class A Units pursuant to <u>Section 5.0l(a)(ii)</u> in excess of the Target Capital Payment Amounts payable as of such time), *minus* (b) the aggregate amount of all distributions made by the. Company in respect of such Class A Unit pursuant to <u>Section 5.0l(a)(ii)</u> as of such time; *provided,* that in no event shall the payment of a Class A Target Capital Payment Amount be required to be made to any Class A Unit to the extent the Class A Unpaid Capital Amount of such Unit is $0.00 or would be reduced below $0.00 by such payment.

<u>"Class A Units</u><u>"</u> means the Class A Units issued to those Persons listed as Class A Members on <u>Schedule 1</u> as of the Effective Date and any other Units issued after the Effective Date and designated by the Board as Class A Units.

<u>"Class A Unpaid Capital Amount</u><u>"</u> means,. for any Class A Unit at any time, the amount of Class A Preferred Capital Contributions attributable to the acquisition of such Class A Unit, *plus* the accrued Class A Pre-COD Preferred Yield for such Class A Unit, reduced by the aggregate amount of all distributions made by the Company in respect of such Class A Unit pursuant to <u>Section 5.0l(a)(ii)</u> prior to such time.

<u>"Class B Manager</u><u>"</u> has the meaning set forth in <u>Section 6.02(a)(ii).</u>

<u>"Class B Member</u><u>"</u> means any Member owning Class B Units, in such capacity.

<u>"Class B</u> <u>U</u><u>ni</u><u>t</u><u>s</u><u>"</u> means the Class B Units issued to those Persons listed as Class B Members on <u>Schedule 1</u> as of the Effective Date and any other Units issued after the Effective Date and designated by the Board as Class B Units.

<u>"Code</u><u>"</u> means the Internal Revenue Code of 1986, as amended from time to time. All references herein to sections of the Code shall include any corresponding provision or provisions of succeeding Law.

<u>"Committee</u><u>"</u> has the meaning set forth in <u>Section 6.02(n).</u>

<u>"Common Capital Call</u><u>"</u> has the meaning set forth in <u>Section 3.03(b)(iii).</u>

<u>"Company</u><u>"</u> has the meaning set forth in the introductory paragraph hereof.

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<u>"Company Group</u><u>"</u> means the Company, the Project Companies and any other Subsidiary from time to time.

<u>"Company Minimum Gain</u><u>"</u> has the meaning set forth in Treasury Regulations Sections l.704-2(b)(2) and l.704-2(d)(l) for the phrase "partnership minimum gain."

<u>"Competitor</u><u>"</u> means a Person engaged, directly or indirectly (including through any partnership, limited liability company, corporation, joint venture or similar arrangement (whether now existing or formed hereafter)), in a business that utilizes enhanced geothermal system technology or techniques in connection with the development, construction or operation of electric generation facilities.

<u>"Contribution Value</u><u>"</u> means the Fair Market Value of a Company asset contributed by a Member to the Company (net of liabilities secured by such contributed asset that the Company is treated as assuming or taking subject to).

<u>"Control</u><u>"</u> as to any Entity means (a) the possession, directly or indirectly, through one or more intermediaries, of the right to more than 50% of the distributions therefrom (including liquidating distributions) or (b) the power or authority, directly or indirectly, through one or more intermediaries, through ownership of voting securities, by contract, or otherwise, to direct the management, activities or policies of such Entity.

<u>"CSA</u><u>"</u> means the Construction Services Agreement, dated as of October 4, 2024, by and between CGS 3 and Industrial Builders, Inc., an Idaho corporation.

<u>"Default</u><u>"</u> has the meaning set forth in <u>Section 3.03(e).</u>

<u>"Default Rate"</u> means a rate per annum equal to the lesser of (a) the sum of (i) the prime rate published in *The Wall Street Journal,plus* five (5) percentage points per annum and (b) the maximum rate permitted by Law.

<u>"Depreciation</u><u>"</u> means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for such Fiscal Year or other period, except that (a) with respect to any property the Gross Asset Value of which differs from its adjusted tax basis for federal income tax purposes and which difference is being eliminated by use of the "remedial allocation method" pursuant to Treasury Regulations Section l.704-3(d), Depreciation for such Fiscal Year or other period will be the amount of book basis recovered for such Fiscal Year or other period under the rules prescribed by Treasury Regulations Section l.704-3(d)(2) and (b) with respect to any other property the Gross Asset Value'of which differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year or other period, Depreciation for such Fiscal Year or other period will be an amount that bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year or other period bears to such beginning adjusted tax basis. Notwithstanding the foregoing, if the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year or other period is zero, then, for the purposes of clause (b) above, Depreciation will be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Board.

<u>"Designated Individual</u><u>"</u> has the meaning set forth in <u>Section 8.03(a).</u>

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<u>"Dispute</u><u>"</u> has the meaning set forth in <u>Section 10.08(a).</u>

<u>"Effective Date</u><u>"</u> has the meaning set forth in the introductory paragraph hereof.

<u>"Election Period</u><u>"</u> has the meaning set forth in <u>Section 3.03(c)(ii).</u>

<u>"Eligible Purchaser</u><u>"</u> means any Member that certifies to the Board's reasonable satisfaction that such Member is an Accredited Investor.

<u>"Eligible Purchaser Persons</u><u>"</u> has the meaning set forth in <u>Section 3.03(c)(iv).</u>

<u>"Encumbrance</u><u>"</u> means any security interest, lien, pledge, mortgage or other encumbrance, whether voluntary, involuntary or by operation of Law.

<u>"Enforceability Exceptions</u><u>"</u> has the meaning set forth in <u>Section 4.05(c).</u>

<u>"Entity</u><u>"</u> means any corporation, limited liability company, general partnership, limited partnership, venture, trust, business trust, plan, unincorporated association, estate, or other entity.

<u>"Excluded Entities</u><u>"</u> has the meaning set forth in <u>Section 7.03.</u>

<u>"Expanse EPC Agreement</u><u>"</u> means the Engineering, Procurement and Construction Agreement, dated as of December l6, 2024, by and between Expanse Electrical Company, LLC and Cape TransCo.

<u>"Export Control Laws</u><u>"</u> means any Law governing the export or transfer of goods, technology, software, technical data or defense services, including (a) the U.S. Export Administration Act, (b) U.S. Export Administration Regulations (15 C.F.R. § 730 et seq.), U.S. Arms Export Control Act, and the U.S. International Traffic in Arms Regulations (22 C.F.R. § 120 et seq.), and (c) Laws governing the importation of goods, including Laws administered by U.S. Customs and Border Protection.

<u>"Fair Market Value</u><u>"</u> means, with respect to an item at any time, the value (expressed in U.S. dollars) as reasonably determined by the Board in good faith that would be obtained at such time in a sale of such item to an unaffiliated buyer on arms'-length terms.

<u>"Fervo</u><u>"</u> has the meaning forth in the recitals hereto.

<u>"Fervo Capital Commitment</u><u>"</u> has the meaning set forth in <u>Section 3.03(b)(i).</u>

<u>"Final Completion</u><u>"</u> has the meaning set forth in the CSA.

<u>"Fiscal Year</u><u>"</u> has the meaning set forth in <u>Section 2.06.</u>

<u>"GAAP"</u> means United States generally accepted accounting principles.

<u>"Governmental Authority</u><u>"</u> means any (a) national, federal, provincial, territorial, state, regional, municipal, local, or other government, (b) governmental or public department, court, tribunal, arbitral body, statutory body, commission, board, bureau, or agency, (c) self-regulatory organization, regulatory authority, administrative tribunal, or authority, (d) subdivision, agent, commission, board, or authority of any of the foregoing or (e) quasi-governmental or private body

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exercising any regulatory, expropriation, or Taxing authority under or for the account of any of the foregoing.

<u>"Gross Asset Value"</u> means, with respect to any asset, the asset's adjusted basis for federal income tax purposes, except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The initial Gross Asset Value of any asset contributed (or deemed contributed) by a Member to the Company is the gross Fair Market Value of such asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Gross Asset Value of all Company assets may be adjusted to equal their respective gross Fair Market Values (taking Code Section 7701(g into account), as determined by the Board using such reasonable method of valuation as it may adopt, as of immediately prior to (or immediately after, in the case of the exercise of a non-compensatory option described below) the occurrence of any event described in clauses (i) through (iv) below (and at such other times as the Board may determine to be necessary or advisable to comply with Treasury Regulations Sections 1.704-1(6) and 1.704-2 and taking into account the provisions of Treasury Regulations Section 1.704-1(b)(2) ivJ(f):

&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)&nbsp;&nbsp;&nbsp;&nbsp;the acquisition of additional Units in the Company by a new or existing Member in exchange for more than a *de minimis* Capital Contribution, if the Board determines that such adjustment is necessary or appropriate to reflect the relative interests of the Members in 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)&nbsp;&nbsp;&nbsp;&nbsp;the distribution by the Company to a Member of more than a *de minimis* amount of Company assets as consideration for Units in the Company, if the Board determines that such adjustment is necessary or appropriate to reflect the relative interests of the Members in 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the Company's liquidation or dissolution within the meaning of Treasury Regulations Section 1.704-l(b)(Z)(ii)(g); 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)&nbsp;&nbsp;&nbsp;&nbsp;the grant of an interest in the Company (other than a *de minimis* interest) as consideration for the provision of services to or for the Company's benefit by an existing Member acting in his capacity as a Member, or by a new Member acting in his capacity as a Member or in anticipation of becoming a Member, if the Board determines that such adjustment is necessary or appropriate to reflect the relative interests of the Members in the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Gross Asset Value of any Company asset distributed to a Member shall be adjusted to equal the gross Fair Market Value of such asset (taking Code Section 7701(g) into account) on the date of distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Gross Asset Values of Company assets will be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 732(d), 734(b) or 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m), except that Gross Asset Values shall not be adjusted pursuant to this clause (d) to the extent that an adjustment pursuant to clause (b) above is made in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (d); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;If the Gross Asset Value of a Company asset has been determined or adjusted pursuant to clause (a), (b), or (d) above, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect such asset for purposes of computing Capital Account balances.

<u>"Gross Liability Value</u><u>"</u> means, with respect to any Company liability described in Treasury Regulations Section 1.752-7(b (3)(i), and subject to the provisions of Treasury Regulations Section 1.752-7(c), the amount of cash that a willing assignor would pay to a willing assignee to assume such liability in an aims'-length transaction, as determined by the Board. The Gross Liability Value of each such Company liability described in Treasury Regulations Section 1.752-7(b)(3)(i) shall be adjusted at such times as provided in this Agreement for an adjustment to Gross Asset Values.

<u>"Indemnified Losses</u><u>"</u> has the meaning set forth in <u>Section 6.05(c).</u>

<u>"Indemnitee</u><u>"</u> has the meaning set forth in <u>Section 6.05(c).</u>

<u>"Initial Capital Contributions</u><u>"</u> has the meaning set forth in <u>Section 3.03(a).</u>

<u>"Internal Restructuring</u><u>"</u> means, with respect to the Company Group, any re-formation, conversion, transfer of assets, Transfer by Members of their Units, merger, incorporation, liquidation, recapitalization, reorganization, contribution, or exchange of Units into other equity interests or other transaction undertaken (a) in a manner that does not result in any adverse change to the relative economic interests of any Member in the Company's assets, (b) in connection with a Public Offering in accordance with this Agreement, or (c) as the Board determines, acting reasonably and in good faith, appropriate to comply with changes in Law.

<u>"Investment Exit</u><u>"</u> means (a) any event or transaction resulting in the liquidation of all or substantially all of the value of the assets of the Company Group (other than pursuant to an Internal Restructuring), whether pursuant to (i) a sale of assets, (ii) a merger, consolidation, tender offer or other business combination, (iii) a sale of Units, or (iv) any other transaction similar to the foregoing or (b) a Public Offering.

<u>"Investor</u><u>"</u> has the meaning set forth in the recitals hereto.

<u>"Investor Capital Call</u><u>"</u> has the meaning set forth in <u>Section 3.03(b)(ii).</u>

<u>"Investor Capital Commitment</u><u>"</u> has the meaning set forth in <u>Section 3.03(b)(i).</u>

<u>"Investor Subscription Agreement</u><u>"</u> has the meaning set forth in the recitals hereto.

<u>"IRS</u><u>"</u> means the Internal Revenue Service and any successor Governmental Authority.

<u>"ITCs</u><u>"</u> means the investment tax credits provided for pursuant to Section 48 of the Code.

<u>"Law</u><u>"</u> means (a) all applicable laws, regulations, statutes, codes, rules, Permits, licenses, certifications, decrees, or standards imposed by any Governmental Authority and (b) all applicable orders, injunctions, judgments, decrees, rulings, writs, assessments, awards, subpoenas, verdicts, settlements, or findings from any Governmental Authority.

<u>"LGIA</u><u>"</u> means the Large Generator Interconnection Agreement, dated as of June 12, 2024, by and between Milford Gen Lead, LLC and Cape TransCo.

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<u>"Manager</u><u>"</u> has the meaning set forth in <u>Section 6.01.</u>

<u>"Member</u><u>"</u> means any Person owning Units as permitted under this Agreement.

<u>"Member Minimum Gain</u><u>"</u> means an amount, with respect to each Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulations Section 1.704-2(i) with respect to "partner nonrecourse debt minimum gain."

<u>"Member</u> <u>Nonrecourse</u> <u>Debt</u><u>"</u> has the meaning set forth in Treasury Regulations Section 1.704-2(b)(4) for the phrase "partner Nonrecourse debt."

<u>"Member</u> <u>Nonrecourse</u> <u>Deductions</u><u>"</u> has the meaning set forth in Treasury Regulations Section 1.704-2(i) for the phrase "partner Nonrecourse deductions."

<u>"Membership Interest</u><u>"</u> means with respect to any Member at any time, the entire equity interest (or "limited liability company interest" as that term is used in the Act) of such Member in the Company and all rights and liabilities associated therewith, which shall be represented by such Member's Units.

<u>"'Non-Contributing Member</u><u>"</u> has the meaning set forth in <u>Section 3.03(e).</u>

<u>"Nonrecourse Deductions</u><u>"</u> has the meaning set forth in Treasury Regulations Sections 1.704-2(b)(l) and 1.704-2(c).

<u>"</u><u>Nonrecourse</u> <u>Liability</u><u>"</u> has the meaning set forth m Treasury Regulations Sections 1.704-2(b (3) and 1.752-l(a)(2).

<u>"O&M Agreement</u><u>"</u> means the Operation and Maintenance Agreement, dated as of May 28, 2025, by and among FEC Operations, LLC, a Delaware limited liability company, CGS 1, CGS 2, CGS 3, CGS 4 and CGS 5, and Cape TransCo.

<u>"Original Agreement</u><u>"</u> has the meaning set forth in the recitals hereto.

<u>"Other Indemnitor</u><u>"</u> has the meaning set forth in <u>Section 6.06(a).</u>

<u>"Other Material Project Agreements</u><u>"</u> means (a) the CSA, (b) the Contract for the Sale of Turboden Products, dated as of February 27, 2024, by and among CGS 1, CGS 3 and Turboden S.p.A., (c) the LGIA, (d) the Long-Term Point-to-Point Transmission Service Agreement, dated as of June 12, 2024, by and between Milford Gen Lead, LLC and Cape TransCo, (e) the Expanse EPC Agreement, (f) the XRC Loan Agreement and (g) the O&M Agreement, in each case, as amended, supplemented or otherwise modified from time to time.

<u>"Over-Allotment Amount</u><u>"</u> has the meaning set forth in <u>Section 3.03(c)(ii).</u>

<u>"Partially Adjusted Capital Account</u><u>"</u> means, with respect to each Fiscal Year or other period and with respect to each Person who was a Member during such Fiscal Year or other period, the Capital Account balance of such Person at the beginning of such Fiscal Year or other period, adjusted as set forth in the definition of Capital Account for all contributions and distributions during such Fiscal Year or other period, and after all special allocations pursuant to <u>Section 5.02(a)(ii)</u> made to

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such Person for such Fiscal Year or other period, but before giving effect to any allocations of Profits or Losses (or items thereof).

<u>"Partnership Representative</u><u>"</u> means the partnership representative of the Company within the meaning of Code Section 6223(a) (and any similar provision of state, local or foreign law).

<u>"Permit</u><u>"</u> has the meaning set forth in the Investor Subscription Agreement.

<u>"Permitted Encumbrance</u><u>"</u> means (a) statutory Encumbrance of landlords and mechanics', carriers', workmen's, repairmen's, warehousemen's, materialmen's or other like Encumbrances arising or incurred in the ordinary course of business, (b) Encumbrances arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business, (c) Encumbrances for Taxes or other governmental charges or levies that are not yet delinquent or, if delinquent, that are being contested in good faith by appropriate proceedings and, in each case, for which adequate reserves have been established in accordance with GAAP, (d) defects or imperfections of title or other Encumbrances not materially interfering with the ordinary conduct of the business of the Company or any Subsidiary (including any Project Company), (e) leases, subleases and similar agreements, (f) any easements, covenants, rights-of-way, restrictions of record and other similar charges not materially interfering with the ordinary conduct of the business of the Company or any Subsidiary (including any Project Company), (g) zoning, building and other similar restrictions and governmental requirements, (h) Encumbrances incurred or deposits made in connection with workers' compensation, unemployment insurance or other types of social security and (i) licenses to intellectual property, or (j) Encumbrances arising under the XRC Loan Agreement, or any Project Financing, other indebtedness or other obligations otherwise permitted under this Agreement.

<u>"Permitted Transfer</u><u>"</u> means, with respect to any Member, any Transfer of Units by such Member to a Permitted Transferee.

<u>"</u><u>Permitted</u> <u>Transferee</u><u>"</u> means, with respect to (a) a Member who is an individual, (i) a trust for estate planning purposes solely for the benefit of a Member or such Member's Relatives of which the Transferring Member is the trustee or (ii) an Entity that is wholly owned by such Member or such Member's Relatives or trusts for the sole benefit of such Member's Relatives and Controlled (through voting rights) by such Transferring Member, (b) any Member which is an Entity, (i) any Person which is an Affiliate of such Member and (ii) any existing lender (or refinancing lender thereof) to such Member who takes a pledge of some or all of such Member's Units for collateral security purposes, and (c) Fervo, any third party transferee(s) so long as Fervo and its Affiliates hold more than 50% of the Class B Units as of immediately following such transfer.

<u>"Person</u><u>"</u> means any natural person or Entity.

<u>"PPA</u><u>"</u> means, individually or collectively, (a) the Midterm Reliability Energy Resource Purchase and Sale Agreement, dated as of October 30, 2023, by and between Southern California Edison Company, a California corporation, and CGS 3, as amended by Amendment No. 1, dated as of January 9, 2025 and as may be further amended, supplemented or otherwise modified from time to time and (b) the Renewable Power Purchase Agreement, dated as of April 1, 2025, by and between CGS 5 and Shell Energy North America (US), L.P., a Delaware limited partnership.

<u>"Preemptive Notice"</u> has the meaning set forth in <u>Section 3.03(c)(i).</u>

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<u>"</u><u>Pro Rata Share</u><u>"</u> has the meaning set forth in <u>Section 3.03(c)(ii).</u>

<u>"</u><u>Profits</u><u>"</u> and <u>"</u><u>Losses</u><u>"</u> means, respectively, for each Fiscal Year or other period, as determined in accordance with the method of accounting followed by the Company for U.S. federal income tax purposes, an amount equal to the Company's Taxable income or loss for such year or period determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, deduction, or credit required to be stated separately pursuant to Code Section 703(a)(l) will be included in Taxable income or loss), with the following adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any Company income that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this definition will increase the amount of such income or decrease the amount of such loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any Company expenditure described in Code Section 705(a)(2)(B) or treated as a Code Section 705(a)(2)(B) expenditure pursuant to Treasury Regulations Section 1.704-l(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses pursuant to this definition, will decrease the amount of such income or increase the amount of such loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;gain or loss resulting from any disposition of Company assets where such gain or loss is recognized for federal income tax purposes will be computed by reference to the Gross Asset Value of the Company assets disposed of, notwithstanding that the adjusted tax basis of such Company assets differs from its Gross Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;in lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such income or loss. Depreciation will be taken into account for such Fiscal Year or other period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;if the Gross Asset Value of any Company asset is adjusted in accordance with clause (b) or (c) of the definition of Gross Asset Value, the amount of such adjustment will be taken into account in the Fiscal Year of such adjustment as gain or loss from the disposition of such asset for purposes of computing Profits or Losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;if the Gross Liability Value of any Company asset described in Treasury Regulations Section 1.752-7(b)(3)(i) is adjusted as required by this Agreement, the amount of such adjustment will be treated as an item of lo ss (if the adjustment increases the Gross Liability Value of such Company liability) or an item of gain (if the adjustment decreases the Gross Liability Value of such Company liability) and will be taken into account for purposes of computing Profits or Losses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;notwithstanding any other term of this definition, any items that are specially allocated pursuant to <u>Section 5.02(b)</u> will not be taken into account in computing Profits or Losses. The amounts of the items of Company income, gain, loss, or deduction available to be specially allocated pursuant to <u>Section 5.02(b)</u> will be determined by applying rules analogous to those set forth in this definition.

<u>"</u><u>Project</u><u>"</u> means the approximately 97 MW Cape Phase I geothermal electric generation facility under development by the Project Companies in Milford, Utah.

<u>"</u><u>Project Budget</u><u>"</u> means the capital budget covering the development (including permitting), design, construction, installation and commissioning of the Project through the date the Project achieves Final Completion, which is attached to this Agreement as <u>Exhibit B.</u>

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<u>"</u><u>Project Companies"</u> means, individually or collectively, (a) CGS 3 and (b) CGS 5.

<u>"</u><u>Project Financing</u><u>"</u> has the meaning set forth in <u>Section 3.03(b)(vii).</u>

<u>"</u><u>PTCs</u><u>"</u> means the renewable energy production tax credits provided for pursuant to Section 45 of the Code.

<u>"</u><u>Public Offering</u><u>"</u> means any sale in a (a) firm underwritten public offering registered under the Securities Act of any class of equity securities of the Company (or any successor thereto), or (b) a two-step transaction in which any class of equity securities of the Company (or any successor thereto) is issued in a private placement effected pursuant to an exemption from the registration requirements of the Securities Act coupled with a subsequent public offering registered under the Securities Act of any class of equity securities of the Company (or any successor thereto).

<u>"</u><u>Relatives</u><u>"</u> means, with respect to any individual, such individual's spouse, children (including stepchildren and children by adoption), parents, and the lineal descendants of such individual's parents (including stepchildren and children by adoption).

<u>"</u><u>Requesting Purchaser</u><u>"</u> has the meaning set forth in <u>Section 3.03(c)(ii).</u>

<u>"</u><u>Restricted Party</u><u>"</u> means any Person that (a) is designated on any Sanctions-related list of proscribed Persons, (b) is domiciled in or organized under the Laws of any country or territory that is the subject of country- or territory-wide Sanctions, (c) is owned (50% or greater) or controlled by or acting on behalf of, a Person or Persons described in clause (a) or clause (b) or (d) is otherwise the subject or target of Sanctions.

<u>"</u><u>Revised Partnership Audit Rules</u><u>"</u> has the meaning set forth in <u>Section 8.03(a).</u>

<u>"</u><u>Sanctions</u><u>"</u> means those applicable trade, economic and financial sanctions Laws, regulations, embargoes, and restrictive measures (in each case having the force of Law) administered, enacted or enforced from time to time by (a) the United States (including the Department of the Treasury, Office of Foreign Assets Control), (b) the European Union and enforced by its member states, (c) the United Nations, (d) His Majesty's Treasury, or (e) other similar· Governmental Authorities with regulatory authority over the Company Group, the Members or their respective operations from time to time.

<u>"</u><u>Securities Act</u><u>"</u> means the Securities Act of 1933.

<u>"</u><u>SFA"</u> means that certain Shared Facilities Agreement, dated as of May 28, 2025, by and between FEC Operations LLC, CGS 1, CGS 2, CGS 3, CGS 4, CGS 5, Cape TransCo, and FEC E&P Management LLC.

<u>"</u><u>Subsidiary"</u> means any Entity of which (a) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more Subsidiaries, or a combination thereof, or (b) if a limited liability company, partnership, association, or other business entity (other than a corporation), a majority of membership, partnership, or other similar ownership interest thereof or the power to elect or appoint a majority of the managers or governing body thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more Subsidiaries, or a combination thereof.

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<u>"</u><u>Target Capital Account</u><u>"</u> means, with respect to each Fiscal Year or other period and with respect to each Person who was a Member during such Fiscal Year or other period, the amount (which may be either a positive or a deficit balance) equal to the difference between (a) the amount of the hypothetical distribution (if any) that such Person would receive if, on the last day of such Fiscal Year or other period, (i) all Company assets, including cash, were sold for cash equal to their Gross Asset Values, taking into account any adjustments thereto for such Fiscal Year or other period, (ii) all Company liabilities were satisfied in cash according to their terms (limited, with respect to each Nonrecourse Liability or Member Nonrecourse Debt, to the Gross Asset Values of the assets securing such liability), and (iii) the net proceeds thereof (after satisfaction of such liabilities) were distributed in full pursuant to <u>Section 9.02(c)(iii)</u> and (b) the sum of (i) the amount, if any, without duplication, that such Person would be obligated to contribute to the Company's capital pursuant to this Agreement, if applicable, computed immediately after the hypothetical sale described in clause (a) above, (ii) such Person's share of Company Minimum Gain determined pursuant to Treasury Regulations Section 1.704-2 g), and (iii) such Person's share of Member Minimum Gain determined pursuant to Treasury Regulations Section 1.704-2(i)(5), clauses (ii) and (iii) to be computed immediately prior to the hypothetical sale described in clause (a) above.

<u>"</u><u>Tax</u><u>"</u> means any federal, state, local, or foreign income, gross receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, registration, value added, excise, natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, fines, penalties or additions to tax, or additional amounts in respect of the foregoing.

<u>"</u><u>Transfer</u><u>"</u> means, with respect to a Person, a direct or indirect disposition, sale, assignment, transfer, gift, surrender for cancellation, exchange, pledge, or grant of a security interest, in each case whether voluntary or involuntary, including the issuance of equity interests in any such Person that is an Entity.

<u>"</u><u>Treasury</u> <u>Regulations</u><u>"</u> means temporary and final Treasury Regulations promulgated under the Code.

<u>"</u><u>Units"</u> means units representing the Membership Interests in the Company, including the Class A Units, the Class B Units, and any other class or series of units or other equity securities of the Company issued after the Effective Date.

<u>"</u><u>XRC Loan Agreement"</u> means, collectively, the Loan Agreement, dated as of August 13, 2024, by and among CGS 1 and CGS 3, as borrowers, and XRL ALC, LLC, a Delaware limited liability company, as lender, and all other Loan Documents (as defined therein), together with any refinancing, replacement or extension thereof.

Section 1.02.&nbsp;&nbsp;&nbsp;&nbsp;**Construction.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Whenever the context requires, the gender of all words used in this Agreement includes the masculine, feminine, and neuter. If a term is defined as one part of speech (such as a noun), it shall have a corresponding meaning when used as another part of speech (such as a verb). If a term is not defined herein but is an accounting term, it shall have the meaning accorded it in accordance with GAAP.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;References herein to: (i) any Law shall be deemed to also refer to all rules and regulations promulgated thereunder unless the context requires otherwise, (ii) any agreement, instrument or Law means such agreement, instrument, or Law as from time to time amended, modified or supplemented, including, in the case of agreements or instruments, by waiver or consent and, in the case of Law, by succession of comparable successor Law, (iii) the employment, death, disability, spouse, Relative, heir, legatee, or Permitted Transferee of a Member that received its Units pursuant to a Permitted Transfer shall be deemed to be references to the employment, death, disability, spouse, Relative, heir, legatee, or Permitted Transferee of the Person from whom or in respect of whom such Member received such Units, and (iv) a breach, default, other action, debt, or liability of a Member shall be deemed to include a breach, default, other action, debt, or liability by any Permitted Transferee that has received Units from such Member pursuant to a Permitted Transfer and a breach, default, other action, debt, or liability by any Person from whom or in respect of whom such Member received such Units pursuant to a Permitted Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise expressly specified: (i) all accounting determinations will be made in accordance with GAAP in effect from time to time, (ii) the words "includes" or "including" shall mean "including without limitation", (iii) all references to Articles and Sections refer to articles and sections of this Agreement, and (iv) all references to Exhibits and Schedules are to exhibits and schedules attached hereto, each of which is made a part hereof for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Each Member acknowledges that it and its attorneys and advisers have been given an equal opportunity to negotiate the terms of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party or any similar rule operating against the drafter of an agreement shall not be applicable to the construction or interpretation of this Agreement.

**ARTICLE II**

**ORGANIZATION**

Section 2.01.&nbsp;&nbsp;&nbsp;&nbsp;**Formation**. The Company was organized as a Delaware limited liability company by the filing of the Company's certificate of formation (the <u>"</u><u>Certificate")</u> in the office of the Secretary of State of the State of Delaware pursuant to the Act on December 13, 2023. The rights, powers, duties, obligations, and liabilities of the Members shall be determined pursuant to the Act and this Agreement. To the extent that the rights, powers, duties, obligations, and liabilities of any Member are differently reason of any provision of this Agreement than they would be under the Act in the absence of such provision, this Agreement shall, to the extent permitted by the Act, control.

Section 2.02.&nbsp;&nbsp;&nbsp;&nbsp;**Name**. The Company's name is Cape Phase I Holdco, LLC. Company business will be conducted in such name or such other names that comply with Law as the Board may select from time to time.

Section 2.03.&nbsp;&nbsp;&nbsp;&nbsp;**Registered Office; Registered Agent**. The Company's registered office in the State of Delaware will be the initial registered office designated in the Certificate or such other office (which need not be a place of business of the Company) as the Board may designate from time to time in the manner provided by Law. The Company's registered agent in the State of Delaware will be the initial registered agent designated in the Certificate or such other Person or Persons as the Board may designate from time to time in the manner provided by Law.

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Section 2.04.&nbsp;&nbsp;&nbsp;&nbsp;**Principal Office**. The Company's principal office will be at 910 Louisiana Street, Suite 4400, Houston, Texas 77002, or such other location (which need not be in the State of Delaware) as the Board may designate from time to time. The Company may have such other offices as the Board may determine appropriate.

Section 2.05.&nbsp;&nbsp;&nbsp;&nbsp;**Purpose; Powers**. The Company is organized for the purposes of (a) holding the equity interests in the Project Companies and any other Subsidiary that may be formed from time to time after the Effective Date in accordance with this Agreement to carry out any other purpose of the Company described in this <u>Section 2.05,</u> (b) engaging through other members of the Company Group in the ownership, development, construction, financing, operation and maintenance of the Project and (c) engaging in any other activities directly or indirectly relating to the foregoing. The Company will have all powers permitted to be exercised by a limited liability company organized in the State of Delaware.

Section 2.06.&nbsp;&nbsp;&nbsp;&nbsp;**Fiscal Year**. The Company's fiscal year (the <u>"Fiscal Year")</u> for financial statement purposes will end on December 31 except as otherwise determined by the Board.

Section 2.07.&nbsp;&nbsp;&nbsp;&nbsp;**Filing of Certificates**. Each of the Managers is hereby designated as an "authorized person" within the meaning of the Act to have the authority to execute, deliver and file, or to cause the execution, delivery, and filing of, any amendments or restatements of the Certificate and any other certificates, notices, statements, or other instruments (and any amendments or restatements thereof) necessary or advisable for the Company's formation or operation in all jurisdictions where the Company may elect to do business.

Section 2.08.&nbsp;&nbsp;&nbsp;&nbsp;**Term**. The Company will continue in existence until terminated pursuant to this Agreement or the Act.

**ARTICLE III**

**MEMBERS; UNITS; CAPITAL CONTRIBUTIONS**

Section 3.01.&nbsp;&nbsp;&nbsp;&nbsp;**Members**. The names, addresses, Capital Contributions and number and class of Units of the Members as of the Effective Date are set forth on <u>Schedule 1.</u> Additional Persons may be admitted as Members (a) upon fulfillment of the conditions set forth in <u>Section</u> <u>4.01</u> or (b) upon issuance of Units to such Persons on such terms as determined by the Board (subject to <u>Section 3.02, Section 3.03(c)</u> and <u>Section 6.02(0))</u> so long as the applicable Person has agreed to be bound by this Agreement by executing and delivering a counterpart signature page to this Agreement or an Adoption Agreement, .as applicable. The Board is hereby authorized to amend <u>Schedule 1</u> to reflect any changes to information called for by <u>Schedule 1;</u> *provided, however,* that the failure by the Board to timely amend <u>Schedule 1</u> shall have no effect on the validity of any event necessitating such amendment. Unless admitted to the Company as a Member as provided in this Agreement, no Person (including an assignee of lights with respect to Units or a transferee of Units, whether voluntary, by operation of Law or otherwise) will be, or will be considered, a Member. The Company may elect to deal only with Persons admitted as Members as provided in this Agreement (including their duly authorized representatives). Any distribution made by the Company to a Person shown on the Company's records as a Member or to its legal representatives will relieve the Company of all liability to any other Person who may have an interest in such distribution by reason of any Transfer by such Member or for any other reason.

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Section 3.02.&nbsp;&nbsp;&nbsp;&nbsp;**Units**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Member's Membership Interest in the Company will initially be represented by its Units and its Capital Account. Initially, there shall be two classes of Units, the Class A Units and the Class B Units. Except as otherwise required by Law or set forth in this Agreement, neither the Class A Units nor the Class B Units shall have any voting rights or confer the right to vote on matters related to the Company or otherwise. Subject to <u>Section 3.03(c)</u> and <u>Section</u> <u>6.02(0).</u> (i) the Company is hereby authorized to issue such number of additional Class A Units or Class B Units as the Board may determine from time to time and (ii) the Board may create additional series or classes of Units having such rights, powers and duties as determined by the Board, including through subdivision or by authorization of Units of such class or series. No Units shall be certificated except as otherwise determined by the Board. The Company may issue fractional Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Member and the Company hereby irrevocably elect that all Units, whether evidenced by a certificate or otherwise, shall be securities governed by Article 8 and all other provisions of the Uniform Commercial Code and, pursuant to Section 103(c of the Uniform Commercial Code, such interests shall be "securities" for all purposes under such Article 8 and under all other provisions of the Uniform Commercial Code.

Section 3.03.&nbsp;&nbsp;&nbsp;&nbsp;**Capital Contributions; Preemptive Rights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Initial Capital Contributions.</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)&nbsp;&nbsp;&nbsp;&nbsp;On the Effective Date, in exchange for making Capital Contributions in the amount of the "Initial Capital Contribution" set forth opposite such Member's name on <u>Schedule 1</u> (the <u>"Initial Capital Contributions"),</u> the Company issued to Investor the Class A Units set forth opposite Investor's name on <u>Schedule 1</u> and the Company issued to Fervo the Class B Units set forth opposite Fervo's name on <u>Schedule 1.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsequent Capital Contributions.</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)&nbsp;&nbsp;&nbsp;&nbsp;Each of Investor and Fervo hereby agrees and commits to make Capital Contributions to the Company in accordance with this <u>Section 3.03(b)</u> to fund the Project Budget in amounts not to exceed the "Capital Commitment" set forth opposite their names on <u>Schedule 1</u> (the <u>"Investor Capital Commitment"</u> and <u>"Fervo Capital</u> <u>Commitment",</u> respectively).

&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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 3.03(b)(iv),</u> the Board shall issue a written request to Investor for the making of monthly Capital Contributions in such amounts as are necessary for funding the amounts contemplated by the Project Budget for the following month's activities (such written request, an <u>"</u><u>Investor</u> <u>Capital Call").</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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 3.03(b)(iv)</u> and <u>Section 3.03(b)(v),</u> the Board shall issue a written request to Fervo for the making of Capital Contributions at such times and in such amounts as are necessary for funding the amounts contemplated by the Project Budget (such written request, a <u>"Common Capital Call").</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;(iv)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in <u>Sections 3.03(b)(i)-(iii),</u> no Member shall be required to make any Capital Contribution. The Board may call for voluntary Capital Contributions pursuant to this <u>Section 3.03(b)(iv)</u> on such terms and conditions determined by the Board

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and agreed by the Member or Members making such additional Capital Contributions. To call for any additional Capital Contributions pursuant to this <u>Section 3.03(b)(iv),</u> the Board shall issue a written request to the applicable Member or Members setting forth (A) the aggregate amount of Capital Contributions required by the Company and the Subsidiaries, (B) the portion of such amount that may be contributed by such Member to the Company, (C) the purpose for which the funds are to be applied in such reasonable detail as may be reasonably requested by a Member and (D) the date on which payments of the Capital Contributions shall be made, which date shall not be less than 15 Business Days following the date such written request is made.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Board shall not issue any Common Capital Call (and Fervo shall have no obligation to make any Capital Contribution) to fund the Project Budget unless Investor shall have funded in full the Investor Capital Commitment.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Member agrees that it shall make payments of its respective Capital Contributions in accordance with Capital Calls issued pursuant to this <u>Section 3.03(b).</u> Capital Contributions shall be made to the Company in immediately available funds, or, to the extent provided in the applicable Capital Call, in kind. All amounts received by the Company pursuant to this <u>Section 3.03(b)</u> shall be credited to the respective Member's Capital Account as of such specified date. Upon receipt by the Company of a Capital Contribution in accordance with this <u>Section 3.03(b),</u> the Company shall issue to the Member who made such Capital Contribution one Unit of the same class as those held by the Member making such Capital Contribution for every $10,000 so contributed.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Fervo Capital Commitment shall be reduced by the committed principal amount (*less* any financing costs, fees or expenses that increase the Project Budget) of any limited recourse project finance indebtedness obtained by any member of the Company Group after the Effective Date relating to the construction of the Project in accordance with this Agreement <u>("Project Financing"),</u> solely to the extent the proceeds of such Project Financing (A) are for the purpose of funding amounts set forth in the Project Budget and (B) are available to be drawn by the borrower thereof subject only to the satisfaction of customary conditions precedent for project financing arrangements similar to the Project Financing which by their terms are to be satisfied contemporaneously with any such drawing. Promptly following the execution of definitive agreements with respect to such Project Financing, the Board shall amend <u>Schedule 1</u> to reflect the corresponding reduction in the Fervo Capital Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Preemptive Rights for Other Class B Units.</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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of this <u>Section 3.03(c).</u> the Board may issue Class B Units to any Person in exchange for cash Capital Contributions. The Board shall provide notice (the <u>"Preemptive Notice"</u>) thereof to the Eligible Purchasers, which notice shall set forth: (A) a reasonably detailed description of the purpose for which the Capital Contributions are to be applied, (B) the proposed amount of Capital Contributions required to acquire such Class B Units, and (C) such Eligible Purchaser's optional share of such Capital Contributions as set forth in <u>Section 3.03(c)(ii).</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;In connection with each issuance of Class B Units in accordance with <u>Section 3.03(c)(i),</u> the Eligible Purchasers shall have the option to acquire a number of Class B Units equal to the product of (A) the total number of Class B Units to be issued and (B) its

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Capital Sharing Percentage (considering only the Capital Sharing Percentages of the Eligible Purchasers) with respect to such Eligible Purchaser's Class B Units (the <u>"Pro Rata Share").</u> If any Eligible Purchaser wishes to exercise its preemptive rights, it must do so by delivering an irrevocable written notice to the Company within fifteen (15) Business Days after delivery of the Preemptive Notice by the Company (the <u>"Election Period"),</u> which notice shall state the dollar amount of Class B Units such Eligible Purchaser (each, a <u>"Requesting Purchaser"</u>) would like to purchase up to a maximum amount equal to such Requesting Purchaser's Pro Rata Share of the total offering amount, plus the additional dollar amount of offered Class B Units such Requesting Purchaser would like to purchase in excess of its Pro Rata Share (the <u>"Over-Allotment Amount"),</u> if any, if other Eligible Purchasers do not elect to purchase their entire respective Pro Rata Shares of the offered Class B Units. The rights of each Requesting Purchaser to purchase any offered Class B Units not purchased by Eligible Purchasers as part of their respective Pro Rata Shares of the offered Class B Units shall be based on the relative Pro Rata Shares of the Requesting Purchasers desiring Over-Allotment Amounts.

&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)&nbsp;&nbsp;&nbsp;&nbsp;If not all of the offered Class B Units are subscribed for by the Eligible Purchasers, the Board may, but shall not be required to, cause the Company to issue and sell the unsubscribed portion of the offered Class B Units to a third party at any time dming the ninety (90) days following the termination of the Election Period pursuant to the terms and conditions set forth in the Preemptive Notice. The Board may, in its reasonable discretion, impose other reasonable and customary terms and procedures, including setting a closing date, rounding the number of Class B Units covered by this <u>Section 3.03(c)</u> to the near·est whole Class B Unit and requiring customary closing deliveries in connection with any preemptive rights offering. In the event an Eligible Purchaser refuses to purchase any offered Class B Units for which it subscribed pursuant to the exercise of preemptive rights granted thereto under this <u>Section 3.03(c).</u> in addition to any other rights the Company may be permitted to enforce at Law or in equity, such Member arid any Permitted Transferee of such Member shall not be considered an Eligible Purchaser for any future lights granted under this <u>Section 3.03(c),</u> unless the. Board expressly redesignates such Member as an Eligible Purchaser (which the Board may do on an offer-by-offer basis or not at all).

&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)&nbsp;&nbsp;&nbsp;&nbsp;At any time after the six (6)-month anniversary of the delivery of the Preemptive Notice with respect to each proposed issuance of Class B Units pursuant to this <u>Section 3.03(c),</u> the Board shall be entitled to waive, on behalf of each Eligible Purchaser, each former Eligible Purchaser and each of then· respective Affiliates, successors, and assigns and the members, partners, stockholders, directors, managers, officers, liquidators, and employees of each of the foregoing (collectively, the <u>"Eligible Purchaser Persons"</u>) any and all claims such Eligible Purchaser Persons have, had, may have, or may have had with respect to any non-compliance with or violation of this <u>Section 3.03(c)</u> by any Person with respect to such proposed issuance of Class B Units (whether or not any Membership Interests were issued or sold pursuant to this <u>Section 3.03(c)).</u> other than any such claim that has been made in writing and delivered to the Company prior to the expiration of such six (6)-month anniversary.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement, the Company may, in order to expedite the issuance of the offered Class B Units under this Agreement, issue all or a portion of such offered Class B Units to any third party purchaser approved by the Board without complying with <u>Section 3.03(c)(i)</u> through <u>(</u>iv<u>)</u>; *provided*, that prior to such

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issuance, either (A) such proposed third party purchaser agrees to offer to sell to each Eligible Purchaser such Eligible Purchaser's respective Pro Rata Share of such offered Class B Units (before giving effect to the issuance of the offered Class B Units pursuant to this <u>Section 3.03(c))</u> on the same terms and conditions as issued to such proposed third party purchaser (other than the date any such Eligible Purchaser may acquire such offered Class B Units) in a manner which provides each such Eligible Purchaser with rights substantially similar to the rights set forth in <u>Section 3.03(c)(i)</u> through <u>(iv)</u> or (B) the Company agrees to offer to sell an amount of Class B Units to each such Eligible Purchaser equal to such Eligible Purchaser's respective Pro Rata Share of such offered Class B Units in a manner that provides each such Eligible Purchaser with rights substantially similar to the rights set forth in <u>Section 3.03(c)(i)</u> through <u>(iv)</u> (*provided*, for the avoidance of doubt, that each such Eligible Purchaser shall have the right to acquire the same number of offered Class B Units pursuant to the proceeding clauses (A) and (B) as if the Company had complied with <u>Section 3.03(c)(i)</u> through <u>(iv)</u>). Any such proposed third party purchaser or the Company, as applicable, shall offer, in writing, to sell such Class B Units to each Eligible Purchaser within seventy-five (75) days after the issuance of such Class B Units to such third party purchaser and each Eligible Purchaser will have fifteen (15) Business Days after delivery of such a written offer to such Eligible Purchaser to deliver an irrevocable written notice to such third party purchaser or the Company, as applicable, which notice shall state the amount of such Class B Units that such Eligible Purchaser would like to purchase up to the maximum dollar amount equal to such Eligible Purchaser's Pro Rata Share of the total offering amount, plus any desired Over-Allotment Amount, if other Eligible Purchasers do not elect to purchase their full Pro Rata Shares of the offered Class B Units. The rights of each Requesting Purchaser to purchase Over-Allotment Amounts shall be allocated in the same manner as described in <u>Section 3.03(c)(ii).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Funding Conditions.</u> Any condition to the issuance by the Board of any Capital Call set forth in <u>Section 3.03(b)(v)</u> may be waived by Fervo acting in its sole discretion, by delivery of written notice to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Capital Contribution Defaults.</u> If any Member fails to make a mandatory Capital Contribution as requested by the Board in an Investor Capital Call or Common Capital Call validly issued pursuant to <u>Section 3.03(b)(ii)</u> and <u>Section 3.03(b)(iii).</u> respectively (such Member, a <u>"Non-contributing Member"),</u> and such failure continues for more than ten (10) Business Days, such Member shall be in default hereunder (such failure, a <u>"Default").</u> During any period commencing at such time as a Member is deemed to be a Non-Contributing Member and is deemed to be in default until such time as such default is cured by the Non-Contributing Member's making of a payment to the Company in an amount equal to the amount of the applicable default Capital Contribution, *plus* interest accruing at the Default Rate:

&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)&nbsp;&nbsp;&nbsp;&nbsp;the presence of any Manager appointed by the Non-Contributing Member at a meeting of the Board shall not be required for purposes of determining whether there is a quorum for such meeting;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the approval of any such Manager shall not be required to approve any matter that requires the approval of the Board;

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&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)&nbsp;&nbsp;&nbsp;&nbsp;the approval of the Non-Contributing Member shall not be required to approve any matter that would otherwise require the approval of the Non-Contributing Member in its capacity as a Member hereunder;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the Non-Contributing Member shall not Transfer any of its Units or all or any of portion of its Membership Interest;

&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)&nbsp;&nbsp;&nbsp;&nbsp;any Member who is not a Non-Contributing Member may cause the Company to draw on any credit support provided by or on behalf of the Non-Contributing Member; 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;(vi)&nbsp;&nbsp;&nbsp;&nbsp;(A) any Class A Units held by a Non-Contributing Member shall cease to accrue Class A Pre-COD Preferred Yield and Class A Post-COD Preferred Yield starting on the date of such Default; and (B) the Company may at any time thereafter, at its option, redeem some or all of the Class A Units held by such Class A Member at a price per Class A Unit equal to the then-current Class A Preferred Capital Contributions in respect of such Class A Unit.

The rights of the Members (other than the Non-Contributing Member) set forth in this <u>Section 3.03(e)</u> shall be in addition to such other rights and remedies that may exist at Law, in equity or under Contract on account of such default.

Section 3.04.&nbsp;&nbsp;&nbsp;&nbsp;**Capital Accounts.** Subject to compliance with Treasury Regulations Sections l.704-l(b)(2)(iv) and 1.704-2, each Member's Capital Account balance shall initially equal the amount of cash and the Contribution Value of any other property contributed (or deemed contributed) by such Member to the Company; *provided, however,* that if a Member acquired its Unit by Transfer, then such Member's Capital Account balance shall initially equal the Capital Account balance of the Transferring Member that was attributable to the Units that are Transferred in accordance with this Agreement (other than by pledge of, or grant of a security interest in, such Units), as described in Treasury Regulations Section 1.704-l(b)(2)(iv (1). Throughout the term of the Company, each Member's Capital Account shall be maintained in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To each Member's Capital Account there will be added (i) the amount of cash and the Gross Asset Value of any other asset subsequently contributed or deemed contributed by such Member to the Company pursuant to this Agreement, (ii) such Member's allocable share of Profits and any items in the nature of income or gain that are specially allocated to such Member pursuant to <u>Section 5.02(a)</u> and <u>Section 5.02(b)</u> or other terms of this Agreement, (iii) the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member and (iv) any other item required to be credited for proper maintenance of Capital Accounts by Treasury Regulations under Code Section 704(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;From each Member's Capital Account there will be subtracted (i) the amount of cash and the Gross Asset Value of any other Company assets distributed to such Member pursuant to this Agreement, (ii) such Member's allocable share of Losses and any other items in the nature of expenses or losses that are specially allocated to such Member pursuant to <u>Section 5.02(a)</u> and <u>Section 5.02(b)</u> or other terms of this Agreement, (iii) liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the Company, (iv) an allocation of downward basis adjustment to such Member as described in Treasury Regulations Section l.704-l(b)(2)(iv)(j) and (v) any other item required to be debited for proper maintenance of Capital Accounts by the Treasury Regulations under Code Section 704(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Determination of the amount of any liability for purposes of this <u>Section 3.04,</u> will take into account Code Section 752(c) and any other applicable provisions of the Code and Treasury Regulations.

The foregoing terms and the other terms of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2 and shall be interpreted and applied consistently therewith.

Section 3.05.&nbsp;&nbsp;&nbsp;&nbsp;**Predecessor and Successor Members.** For purposes of this Agreement: (a) the Capital Contributions of and distributions to a Member in respect of specified Units shall include the Capital Contributions of and distributions to a predecessor holder of such Units (which shall continue to be deemed made or distributed at the time made or distributed), and the Capital Contributions of and distributions to such predecessor Member shall not include such Capital Contributions and distributions, and (b) except as otherwise set forth in this Agreement, any Person admitted to the Company as a Member following a Transfer of Units shall succeed to all rights, duties and obligations of its Transferring Member with respect to such Units under this Agreement.

Section 3.06.&nbsp;&nbsp;&nbsp;&nbsp;**Withdrawal or Return of Capital.** Except as otherwise set forth in this Agreement or any other agreement between the Company or any of its Affiliates, on the one hand, and a Member or any of its Affiliates, on the other hand: (a) no Member is entitled to the return of or has the right to withdraw any part of its Capital Contribution from the Company prior to the Company's liquidation and dissolution pursuant to <u>Article IX,</u> (b) no Member is entitled to be paid interest in respect of either its Capital Account or its Capital Contributions, (c) any unreturned Capital Contribution is not a liability of the Company or of the other Members, (d) no Member is required to contribute or to lend any cash or property to the Company to enable the Company to return any other Member's Capital Contributions, and (e) no Member is required to restore any deficit balance in such Member's Capital Account.

Section 3.07.&nbsp;&nbsp;&nbsp;&nbsp;**No Other Contributions.** Except as otherwise set forth in this <u>Article III,</u> no Member will be permitted to make Capital Contributions to the Company without the approval of the Board or required to make Capital Contributions to the Company without the consent of such Member.

Section 3.08.&nbsp;&nbsp;&nbsp;&nbsp;**Title to Company Property.** All Company assets shall be deemed to be owned by the Company as an Entity, and no Member, individually, shall have any ownership of such property.

Section 3.09.&nbsp;&nbsp;&nbsp;&nbsp;**Liability to Third Parties.** No Member or Manager will have any personal liability for any of the Company's obligations or liabilities, whether such liabilities arise in contract, tort, or otherwise, except to the extent that any such liabilities or obligations are expressly assumed in writing by such Member or Manager.

Section 3.10.&nbsp;&nbsp;&nbsp;&nbsp;**Subsidiaries.** Unless otherwise approved by the Board and subject to <u>Section 6.02(o).</u> each Subsidiary shall be wholly owned by the Company, managed, directly or indirectly, at the direction of the Board and otherwise subject to the terms, conditions, and agreements set forth in this Agreement.

Section 3.11.&nbsp;&nbsp;&nbsp;&nbsp;**Project Financing.** The Members shall, and shall cause their respective Affiliates to, reasonably cooperate with respect to Fervo's efforts to (and Fervo shall reasonably

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consult with Investor with respect to such efforts) (a) determine the material terms on which the Company Group would be willing to procure or incur Project Financing, (b) identify one or more lenders to provide such Project Financing, (c) negotiate the terms and conditions of such Project Financing and all definitive documentation related thereto and (d) execute, and/or cause the Company Group to execute, as applicable, all such definitive documentation. The proceeds of any Project Financing shall be applied in the following manner: (i) *first,* to fund all unfunded amounts set forth in the Project Budget and (ii) *second,* provided the Project Budget has been fully funded, any remaining proceeds of the Project Financing may, at Fervo's election, be distributed to Fervo.

**ARTICLE IV**

**DISPOSITIONS OF INTERESTS**

Section 4.01.&nbsp;&nbsp;&nbsp;&nbsp;**Transfers of Units.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>General.</u> No Member shall Transfer any Units except in accordance with this <u>Article IV.</u> Any purported Transfer of Units in violation of the terms of this <u>Article IV</u> shall be null and void *ab initio.* Notwithstanding anything herein to the contrary, in no event shall any of the following be deemed a Transfer of Units with respect to Fervo or any holder of Units which is an Affiliate of Fervo or Fervo Energy Company, or otherwise be restricted in any way by the terms of this Agreement: (i) any transfer or issuance of any equity or debt securities or rights of Fervo Energy Company, or (ii) any change of Control of Fervo Energy Company; *provided, however,* that no direct or indirect transfer of Units (including any transfer of equity interests in, or change of Control of, any Member or any of its Affiliates) shall be permitted without the prior written consent of all Managers if such transfer or change of Control would cause (with or without notice or lapse of time or both) a default or event of default under any PPA or any Other Material Project Agreement or in respect of the Project Financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Lock-Up.</u> Prior to the second anniversary of the date on which the Project achieves Final Completion, neither Fervo nor Investor shall Transfer any of its Units except to a Permitted Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Restrictions on Transfer.</u> No Transfer of Units shall be made (i) if such Transfer would violate the federal or state securities Laws or rules and regulations of the United States Securities and Exchange Commission, any state securities commission or any other Governmental Authority (and, if requested by the Board, the Transferring Member shall deliver to the Company an opinion of counsel, in form and substance reasonably satisfactory to the Company, to the effect that such Transfer is either exempt from the registration requirements of federal or state Securities Laws or that such registration requirements have been complied with); (ii) if such Transfer would violate any other applicable Law or cause any member of the Company Group to default on any of its obligations under any material contract to which it is a patty (including all financing documents), (iii) if such Transfer would cause the Company to be treated as an association or "publicly traded partnership" treated as a corporation for U.S. federal income tax purposes or would make the Company ineligible for "safe harbor" treatment under Code Section 7704 and the Treasury Regulations promulgated thereunder; (iv) unless the Transferee (and if it is a disregarded entity for U.S. federal income tax purposes, both its regarded owner and the Transferee (if it were not disregarded)) is a United States person within the meaning of Code Section 7701 a)(30); and (v) unless the Transferee thereof executes and delivers (together with such Person's spouse, if applicable) an Adoption Agreement and such other documents as the Board may reasonably request; *provided, however,* that notwithstanding any failure by such Person to execute an Adoption Agreement (whether

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such Transfer resulted by operation of Law or otherwise), such Transferee and such Units shall be subject to this Agreement in the same manner as when held by the Transferring Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Permitted Transfers.</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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to compliance with <u>Section 4.01(c),</u> any Member may Transfer all or a portion of its Units to a Permitted Transferee of such Member, without the approval of any other Member or the Board, subject to the provisions of this <u>Section 4.0l(d):</u> *provided,* that such Permitted Transferee shall not be entitled to make any further Transfers in reliance upon this <u>Section 4.0l(d),</u> except for a Transfer of such acquired Units back to such original holder or to another Permitted Transferee of such original holder. A Member (or its Permitted Transferee) shall provide prompt written notice to the Board following any-Transfer pursuant to this <u>Section 4.0l(d).</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this <u>Section 4.01(d),</u> a Member shall not Transfer any Units to a Permitted Transferee of such Member if such Transfer has as a purpose the avoidance of or is otherwise undertaken in contemplation of avoiding the restrictions on Transfers in this Agreement (it being understood that the purpose of this <u>Section 4.0l(d)(ii)</u> is to prohibit the Transfer of Units to a Permitted Transferee followed by a change in the relationship between the transferor and the Permitted Transferee, or a change of Control of such transferor or Permitted Transferee, after the Transfer, in either case that was agreed to, planned, or otherwise contemplated at the time of such Transfer with the result and effect that the transferor has indirectly made a Transfer of Units by using a Permitted Transferee, which Transfer would not have been directly permitted under this <u>Section 4.0l(d)</u> had such change in such relationship occurred prior to such 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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this <u>Article IV,</u> no Transfers of any Units shall be made to any Person (A) directly or indirectly engaged in any transaction or other business with a Restricted Patty in violation of applicable Sanctions, (B) who has been or is the subject of any enforcement action or proceeding by any Governmental Authority concerning violations of applicable Anti-Corruption Laws, Anti-Money Laundering Laws, Export Control Laws or Sanctions, (C) who is organized or resident in any country, region or territory that is the subject of comprehensive Sanctions or (D) who is, or is owned, directly or indirectly, beneficially or of record, by, a Restricted Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Invalidity of a Transfer.</u> Any attempted Transfer of any Units by a Member other than in accordance with this <u>Article IV</u> is void, will not be recognized by the Company.

Section 4.02.&nbsp;&nbsp;&nbsp;&nbsp;**Investment Exit Terms.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Allocation of Consideration.</u> With respect to any Investment Exit, the Board shall allocate the aggregate consideration payable in respect of Units in connection therewith, or received by the Company as consideration therefor, among the Members and distribute such consideration in accordance with <u>Article V.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>T</u><u>erms</u> <u>of Sale.</u> In connection with any Investment Exit, each Member receiving consideration or Transferring Units shall execute such documents and make such representations, warranties, covenants, and indemnities as are reasonably requested by the Board in connection therewith. Additionally, any indemnification or other similar obligation assumed in connection with

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such transaction shall be several and not joint and shall be allocated among the Members receiving consideration or Transferring Units in the same proportion as the aggregate consideration payable in such transaction is allocated pursuant to <u>Section 4.02(a).</u> other than with respect to representations made individually by each Member receiving consideration or Transferring Units (e.g., representations as to such Member's title or authority or representations qualified by the individual knowledge of such Member making the representation), for which such Member shall be solely liable. To the extent that any Member receives equity interests in another Person as consideration in any Investment Exit, each Member recognizes and agrees that the tights and obligations of such Member as an equity holder in such other Person will be passive and accordingly are likely to differ materially from those under this Agreement. Notwithstanding anything to the contrary in <u>Section 10.04,</u> the entry into a limited liability company agreement, shareholders' agreement., partnership agreement, or other similar organizational document by a Member receiving equity in another Person pursuant to an Investment Exit shall not constitute an amendment of the terms of this Agreement and, for the avoidance of doubt, shall not be subject to the terms of <u>Section 10.04.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Costs.</u> With respect to any Investment Exit (other than a Public Offering), to the extent that the costs of such transaction are not borne by the Company Group (out of the Company Group's assets) or the Transferee but are incurred on behalf of the Company for the benefit of all Members receiving consideration or Transferring Units, each Member receiving consideration in such transaction shall bear its pro rata share (based on the amount of consideration received or receivable in such transaction) of the costs of such transaction. With respect to an Investment Exit that is a Public Offering, the Company shall be responsible for its own costs, fees, and expenses and shall reimburse the Members and their Affiliates for the reasonable out-of-pocket costs, fees, and expenses (excluding underwriting discounts, selling commissions, and similar fees) incurred by them in connection with a Public Offering, including the reasonable costs, fees, and expenses of one outside counsel for the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Release.</u> As a condition to the receipt of consideration from any Investment Exit, each Member shall, if requested by the.Board, provide the Company Group with, and shall receive from the Company Group, a release of claims in a form reasonably satisfactory by the Board.

Section 4.03.&nbsp;&nbsp;&nbsp;&nbsp;**Internal Restructuring.** Subject to <u>Section 6.02(0),</u> the Board may cause the Company to effect an Internal Restructuring on such terms as the Board deems advisable, including in connection with an Investment Exit. In connection with any such Internal Restructuring, each Member agrees that it will, and.will cause its Affiliates to, and the Company shall, do all things reasonably requested by the Board in connection therewith.

Section 4.04.&nbsp;&nbsp;&nbsp;&nbsp;**Non-Accredited Investors.** Notwithstanding anything herein to the contrary, in connection with any Investment Exit or Internal Restructuring, if any Member is not then an Accredited Investor and (a) the consideration with respect to such transaction includes equity securities that are not issued with respect to a Public Offering pursuant to an effective registration statement under the Securities Act or (b) such transaction would otherwise require under securities Law the registration of the offer and sale of any equity securities, then such Member shall not have a right to participate in such transaction. In such case, if the acquirer or surviving entity in such transaction, as applicable, desires to pay cash equal to the Fair Market Value of such Member's Units, then such Member shall accept the cash payment in exchange for his, her, or its Units.

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Section 4.05.&nbsp;&nbsp;&nbsp;&nbsp;**Representations and Warranties.** Each Member (as of the Effective Date or, if admitted to the Company as a Member after the Effective Date, as of the date of such admission) hereby represents and warrants to the Company and each other Member that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;such Member is duly incorporated, organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation, organization or formation, and is duly qualified and in good standing in the jurisdiction of its principal place of business, if different from its jurisdiction of incorporation, organization or formation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent such Member is an individual, such Member has the capacity to enter into this Agreement and to perform such Member's obligations hereunder or (ii) to the extent such Member is an Entity, such Member has full power and authority to enter into this Agreement and to perform its obligations hereunder, and in either case all actions necessary for the due authorization, execution, delivery and performance of this Agreement by such Member have been duly taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;such Member has duly executed and delivered this Agreement and the other documents that this Agreement contemplates that such Member will execute, and they each constitute the valid and binding obligation of such Member, enforceable against it in accordance with their respective terms (except as may be limited by bankruptcy, insolvency or similar Laws of general application and by the effect of general principles of equity, regardless of whether considered at Law or in equity, the <u>"Enforceability Exceptions");</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the execution, delivery and performance of this Agreement by such Member does not and will not conflict with or result in a breach, default or violation of (i) the organizational documents of such Member, (ii) any other material agreement or arrangement to which such Member is a party or by which it is or its assets are bound or (iii) any Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;such Member is in compliance in all material respects with all applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;such Member is and will be acquiring its Units in the Company for investment purposes only for such Member's own account and not with a view to the distribution, reoffer, resale, or other disposition not in compliance with the Securities Act and state securities Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;such Member alone or together with such Member's representatives, possesses such expertise, knowledge, and sophistication in financial and business matters generally, and in the type of transactions in which the Company proposes to engage in particular, that such Member is capable of evaluating the merits and economic risks of acquiring and holding Units, and that such Member is able to bear all such economic risks now and in the future and such Member has had access to all information with respect to his interests in the Company that such Member deems necessary to make a complete evaluation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;such Member is aware that the Units have not been registered under the Securities Act or under the securities Law of any state, and, therefore, the Units cannot be sold unless they are subsequently registered under the Securities Act and any state securities Law or an exemption from registration is available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;such Member is an Accredited Investor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;neither such Member nor any of its Affiliates has employed or retained any broker, agent, or finder in connection with this Agreement or the transactions contemplated herein, or paid or

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agreed to pay any brokerage fee, finder's fee, success fee, commission, or similar payment to any Person on account of this Agreement or the transactions provided for herein that will or could constitute an obligation payable by any member of the Company Group.

Section 4.06.&nbsp;&nbsp;&nbsp;&nbsp;**Securityholders Agreement.** To the extent that units or other equity securities of any Subsidiary are distributed to any Members, unless otherwise agreed to by the Board, such Members hereby agree to enter into a securityholders agreement with such Subsidiary and each other Member which contains restrictions on the Transfer of such equity securities and other provisions (including with respect to the governance and control of such Subsidiary) in form and substance similar to the provisions and restrictions set forth herein.

Section 4.07.&nbsp;&nbsp;&nbsp;&nbsp;**Redemption.** Within thirty (30) days after the earlier of (i) the holders of the Class A Units shall have received aggregate distributions under <u>Section 5.0l(a)</u> such that all remaining Available Cash shall be solely distributed pursuant to <u>Section 5.0l(a)(iii)</u> and the holders of the Class A Units shall no longer be entitled to any distributions under <u>Section 5.0l(a)(i)</u> or <u>Section 5.0l(a)(ii)</u> and (ii) the Investor Capital Commitment has been terminated in full or expired (other than by the funding thereof with Capital Contributions), the Board shall cause the Company upon written notice to the Class A Members to purchase all, but not less than all, of the Class A Units held by the Class A Members for a purchase price equal to $1.00. Following such redemption, the Members shall amend this Agreement to reflect the withdrawal of the Class A Members and the redemption of the Class A Units effective as of the date of such redemption.

**ARTICLE V**

**DISTRIBUTIONS AND ALLOCATIONS**

Section 5.01.&nbsp;&nbsp;&nbsp;&nbsp;**Distributions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Distributions of Available Cash.</u> At any time after Final Completion, the Board shall cause the Company to distribute all Available Cash within thirty (30) days after the last day of each quarter of each Fiscal Year, and, to the extent permitted under the express terms of this Agreement, non-cash property at such times and in such amounts as the Board shall determine. Subject to <u>Section 3.11, Section6.0l(b)</u> and <u>Section 5.0l(c),</u> all distributions of Available Cash shall be distributed to the Members 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)&nbsp;&nbsp;&nbsp;&nbsp;*first,* to each holder of Class A Units in proportion to the relative Class A Preferred Unpaid Yield of each Class A Unit as of such time, until the Class A Preferred Unpaid Yield for each Class A Unit has been reduced to $0.00;

&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)&nbsp;&nbsp;&nbsp;&nbsp;*second,* to the holders of Class A Units in proportion to the relative Class A Unpaid Capital Amounts of each Class A Unit as of such time, until distributions made under this <u>Section 5.01 (a)(ii)</u> are not less than the Class A Target Capital Payment Amount in respect of all Class A Units owned by the Members as of the time of such distribution (it being understood and agreed that the Board may distribute amounts in excess of the Class A Target Capital Payment Amount as of such time); 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;*thereafter*, to the Members, other than the Class A Members, *pro rata* in accordance with the number of Units (other than Class A Units) held by each such Member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Distributions in Error.</u> Any distributions pursuant to this <u>Section</u> <u>5</u><u>.01</u> made in error or in violation of the Act will, upon demand by the Board, be returned to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Distributions In Kind.</u> The Board may permit the Company to make distributions in kind with the prior written consent of all Members. Each asset distributed in kind will be valued at its Fair Market Value as of the time of such distribution. Except as otherwise set forth in this Agreement, no Member or other Person with an interest in the Company has the right to require the Company to make a distribution in kind.

Section 5.02.&nbsp;&nbsp;&nbsp;&nbsp;**Allocations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Profits and Losses.</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>General Application.</u> For each Fiscal Year or other period, after giving effect to <u>Section 5.02(b).</u> the rules set forth below in this <u>Section 5.02(a)</u> shall apply for the purpose of determining each Member's allocable share of Profits or Losses of the Company for such Fiscal Year or other period.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Hypothetical Liquidation.</u> Profits or Losses for a Fiscal Year or other period shall be allocated among the Persons who were Members during such Fiscal Year or other period in a manner that will reduce, proportionately, the differences between their respective Partially Adjusted Capital Accounts and Target Capital Accounts for such Fiscal Year or other period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Allocations.</u> Notwithstanding <u>Section 5.02(a),</u> the following special allocations will be made in the following order of priority:

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Gain Chargeback.</u> If there is a net decrease in Company Minimum Gain during a Fiscal Year or other period, then each Member will be allocated items of Company income and gain for such a Fiscal Year or other period (and, if necessary, for subsequent years or periods) in an amount equal to such Member's share of the net decrease in Company Minimum Gain, determined in accordance with Treasury Regulations Section 1.704-2(g (2). This <u>Section 5.02(b)(i)</u> is intended to comply with the minimum gain chargeback requirement of Treasury Regulations Section 1.704-2(f) and will be interpreted consistently therewith.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Member Minimum Gain Chargeback.</u> If there is a net decrease in Member Minimum Gain attributable to a Member Nonrecourse Debt during any Fiscal Year or other period, each Member who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Treasury Regulations Section 1.704-2(i)(5), will be specially allocated items of Company income and gain for such Fiscal Year or other period (and, if necessary, subsequent years or periods) in an amount equal to such Member's share of the net decrease in Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in a manner consistent with the provisions of Treasury Regulations Sections 1.704-2(g)(2) and (j)(2)(ii). This <u>Section 5.02(b)(ii)</u> is intended to comply with the partner nonrecourse debt minimum gain chargeback requirement of Treasury Regulations Section 1.704-2(i)(4) and will be interpreted consistently therewith.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Qualified Income Offset.</u> If any Member unexpectedly receives an adjustment, allocation, or distribution of the type contemplated by Treasury Regulations Sections 1.704-l(b)(2)(ii)(d)(4), (5), or (6), items of income and gain will be allocated to all such Members (in proportion to the amounts of their respective deficit Adjusted Capital Accounts) in an amount and manner sufficient to eliminate the deficit balance in the Adjusted Capital Account of such Member as quickly as possible, *provided* that an allocation pursuant to this <u>Section 5.02(b)(iii)</u> shall be made if and only to the extent that such Member would have an Adjusted Capital Account deficit after all other allocations provided for in this <u>Article V</u> have been tentatively made as if this <u>Section 5.02(b)(iii)</u> were not in this Agreement. It is intended that this <u>Section 5.02(b)(iii)</u> qualify and be construed as a "qualified income offset" within the meaning of Treasury Regulations Section 1.704-l(b)(2)(ii)(d).

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Gross Income Allocation.</u> In the event that a Member has a Capital Account deficit at the end of any Fiscal Year or other period, such Member shall be specially allocated items of Company gross income and gain in an amount of such deficit as quickly as possible, *provided* that any allocation under this <u>Section 5.02(b)(iv)</u> shall be made only if and to the extent that a Member would have a Capital Account deficit after all allocations provided for in this <u>Section 5.02</u> have been tentatively made as if <u>Section 5.02(b)(iii)</u> and this <u>Section 5.02(b)(iv)</u> were not in 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;(v)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Allocation of Net Loss.</u> If the allocation of Losses to a Member as provided in <u>Section 5.02(a)</u> would create or increase an Adjusted Capital Account deficit, there will be allocated to such Member only that amount of Losses as will not create or increase an Adjusted Capital Account deficit. The Losses that would, absent the application of the preceding sentence, otherwise be allocated to such Member will be allocated to the other Members in accordance with their relative proportion of Units, subject to the limitations of this <u>Section 5.02(b)(v).</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;(vi)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Additional Adjustments.</u> To the extent that an adjustment to the adjusted tax basis of any Company asset pursuant to Code Section 732(d), 734(b) or Code Section 743(b) is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv m), to be taken into account in determining Capital Accounts as the result of a distribution to a Member in complete liquidation of its Units, the amount of such adjustment to the Capital Accounts will be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss will be specially allocated to the Members in accordance with Treasury Regulations Section 1.704-l(b)(2)(iv m .

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Nonrecourse Deductions.</u> The Nonrecourse Deductions for each Fiscal Year or other period of the Company will be allocated to the Members in proportion to their Capital Sharing Percentage.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Member Nonrecourse Deductions.</u> The Member Nonrecourse Deductions will be allocated each year to the Member that bears the economic risk of loss (within the meaning of Treasury Regulations Section 1.752-2 for the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable.

&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)&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any item of income, gain, loss or deduction has been specially allocated pursuant to <u>Section 5.02(b)(i)-(viii)</u> and such allocation is inconsistent with

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the way in which the same amount otherwise would have been allocated under <u>Section</u> <u>5.02(a),</u> subsequent allocations under this <u>Section 5.02(b)(ix)</u> shall be made, to the extent possible and without duplication, in a manner consistent with <u>Section 5.02(a)</u> and taking into account future allocations under <u>Section 5.02(b)(i)-(viii)</u> that, although not yet made, are likely to offset other allocations previously made under <u>Section 5.02(b)(i)-(viii),</u> which negate as rapidly as possible the effect of all such inconsistent allocations under <u>Section 5.02(b)(i)-(viii).</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;(x)&nbsp;&nbsp;&nbsp;&nbsp;Any "imputed underpayment" within the meaning of Code Section 6225 (or any similar provision of state or local law) paid (or payable) by the Company as a result of an adjustment with respect to any Company item, including any interest or penalties with respect to any such adjustment, or any state or local income tax paid (or payable) by the Company that (as reasonably determined by the Board based upon this Agreement) is attributable or allocable to one or more Members, shall be allocated to the Members in a manner consistent with applicable Treasury Regulations (or comparable provisions of applicable state or local law) and <u>Section 8.03(c).</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;(xi)&nbsp;&nbsp;&nbsp;&nbsp;Any tax exempt income described in Section 6417(c)(l)(C) or Section 6418(c)(l)(A) of the Code shall be allocated among the Members in accordance with Section 6417(c)(l)(D) and Section 6418(c)(l)(B) of the Code, respectively, and the applicable Treasury Regulations promulgated thereunder, including, to the extent determined necessary or appropriate by the Board, any proposed Treasury Regulations, rulings, guidance or other administrative pronouncements.

These provisions shall be applied as if all distributions and allocations were made at the end of the Fiscal Year or other taxable period. Where any provision depends on the balance of a Capital Account of any Member, such Capital Account shall be determined after the operation of all preceding provisions for the period. These allocations shall be made consistently with the requirements of Treasury Regulations Section 1.704-2(j).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Allocations.</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)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in <u>Section 5.02(c)(ii)</u> or <u>Section 5.02(d),</u> for income tax purposes under the Code and the Treasury Regulations, each Company item of income, gain, loss, deduction and credit shall be allocated between the Members in the same manner as the correlative item of "book" income, gain, loss, deduction, or credit is allocated pursuant to this <u>Article V.</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Tax items with respect to Company assets that are contributed to the Company with a Gross Asset Value that varies from its basis in the hands of the contributing Member immediately preceding the date of contribution shall be allocated between the Members for federal income tax purposes pursuant to Treasury Regulations promulgated under Code Section 704(c) so as to take into account the difference between such Company asset's Code Section 704(b) book basis and its tax basis. The Company shall account for such variation using the "remedial allocation method" pursuant to Treasury Regulations Section 1.704-3(d) or such other method or methods as mutually agreed by the Class A Members and the Class B Members to be appropriate and in accordance with the applicable Treasury Regulations. If the Gross Asset Value of any Company asset is adjusted pursuant to the definition of Gross Asset Value, subsequent allocations of income, gain, loss, deduction, and credit with respect

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to such Company asset shall take account of any variation between the adjusted basis of such Company asset for federal income tax purposes and its Gross Asset Value in a manner consistent with Code Section 704(c) and the Treasury Regulations promulgated thereunder using the "remedial allocation method" pursuant to Treasury Regulations Section 1.704-3(d) or such other method or methods as mutually agreed by the Class A Members and the Class B Members to be appropriate and in accordance with the applicable Treasury Regulations.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Allocations pursuant to this <u>Section 5.02(c)</u> are solely for purposes of Taxes and will not affect, or in any way be taken into account in computing, any Member's Capital Account or share of net Profits, net Losses and any other items or distributions pursuant to any term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Terms.</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)&nbsp;&nbsp;&nbsp;&nbsp;For any Fiscal Year or other period during which any Units are Transferred between the Members or to another Person (other than by pledge of, or grant of a security interest in, such Units), the portion of the Profits, Losses and other items of income, gain, loss, deduction, and credit that are allocable with respect to such Units will be apportioned between the Transferring Member and the Transferee Member under any method allowed pursuant to Code Section 706 and the applicable Treasury Regulations as determined by the Board.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary contained in this Agreement, absent a contrary determination pursuant to Code Section 1313(a) neither the Company nor any of the Members shall treat (A) any Member as receiving or accruing a guaranteed payment for the use of capital pursuant to Code Section 707(c) unless and until such Member receives a distribution in excess of such Member's Capital Account after taking into all allocations pursuant to this <u>Section 5.02</u> to such Member for the Fiscal Year or other period in which such distribution occurs (and then only to the extent of such excess) or (B) any arrangement contemplated by this Agreement as, or this Agreement as giving rise to, a taxable capital shift for U.S. federal income tax purposes.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Solely for purposes of determining a Member's proportional share of the Company's "excess nonrecourse liabilities" within the meaning of Treasury Regulations Section 1.752-3(a)(3), each Member's interest in Profits shall be in the same proportion as Nonrecourse Deductions are allocated to such Member, as provided in <u>Section</u> <u>5.02(b)(vii).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Valuation; Revaluation.</u> Except as otherwise set forth in this Agreement, valuations will be made by the Board or, at the direction of the Board, by independent third parties appointed by the Board and deemed qualified by the Board to render an opinion as to the value of the Company's assets, using such methods and considering such information relating to the Company's investments, assets, and liabilities as the Board or independent third party, as the case may be, may determine at the option of the Board.

Section 5.03.&nbsp;&nbsp;&nbsp;&nbsp;**Taxes Paid on Behalf of a Member; Entity-Level Taxes.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall (i) comply with withholding requirements under U.S. federal, state, local and non-US. Law, (ii) withhold distributions or portions thereof if it is required to do so under any Law and (iii) remit amounts withheld to, and file required forms with, the applicable jurisdictions. Each Member hereby authorizes the Company to withhold from or pay on behalf of or

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with respect to such Member (including, for the avoidance of doubt, after such Member withdraws or otherwise ceases to be a Member) any amount of Taxes that the Board determines that the Company is required to withhold or pay with respect to such Member, including with respect to any amount distributable or allocable to such Member pursuant to this Agreement and including any amounts payable by the Company pursuant to Subchapter C of Chapter 63 of the Code that the Board determines are attributable to such Member. Any amounts withheld or paid pursuant to this <u>Section 5.03</u> will be treated as having been distributed to such Member and shall be credited against and reduce any amount of distributions to which such Member is then entitled pursuant to <u>Section 5.01.</u> To the extent that the cumulative amount of such Tax payments or withholding exceeds the distributions to which such Member is entitled pursuant to <u>Section 5.01,</u> the amount of such excess will be considered a loan from the Company to such Member with interest accruing at 8%. Such loan may, at the option of the Board, be satisfied (A) out of distributions to which such Member would otherwise be subsequently entitled or (B) by the immediate payment in cash to the Company of such excess amount (or any combination of the foregoing). The Board may cause the Company to take any other action it determines to be necessary or appropriate in connection with any obligation or possible obligation to impose withholding pursuant to any Law or to pay any Tax with respect to a Member. Each Member hereby unconditionally and irrevocably grants to the Company a security interest in such Member's Units to secure such Member's obligation to pay to the Company any amounts required to be paid pursuant to this <u>Section 5.03.</u> Each Member will take such actions as the Company may request to perfect or enforce the security interest created hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the Company, the Board, or any of their respective Affiliates, or any of their respective officers, directors, managers, members, partners, shareholders, employees, consultants, agents or advisors becomes liable as a result of a failure to withhold and remit taxes in respect of any Member (or former Member) hereunder, then such Member (or former Member) shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, the Board, or any of their respective Affiliates, or any of their respective officers, directors, managers, members, partners, shareholders, employees, consultants, agents or advisors, as the case may be, in respect of all taxes, including interest and penalties, and any expenses incurred in any examination, determination, resolution and payment of such liability (and any such indemnity with respect to any withholding taxes imposed pursuant to Code Section 1446(f)(4) and any interest, penalties and expenses in connection therewith shall be provided jointly and severally by the transferor Member (or former Member) and transferee Member (or former Member) of any Membership Interest), except with respect to any penalties or expenses that arise as a result of any act or omission with respect to which a court of competent jurisdiction has issued a final, nonappealable judgment that the Company, the Board, or any of their respective Affiliates, or any of their respective officers, directors, employees, managers, members, partners, shareholders, and, as determined by the Board in its sole and absolute discretion, consultants, agents or advisors was grossly negligent or engaged in willful misconduct or fraud. Additionally, each Member (and each former Member) shall indemnify the Company against any losses and liabilities (:including interest and penalties) related to any income Tax payable by the Company that (as reasonably determined by the Board based upon this Agreement) is attributable or allocable to such Member (or former Member). Notwithstanding any other provision of this Agreement, the obligations of each Member under this <u>Section 5.03</u> shall survive such Member's ceasing to be a Member and/or the termination, dissolution, liquidation, and winding up of the Company.

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**ARTICLE VI**

**MANAGEMENT**

Section 6.01.&nbsp;&nbsp;&nbsp;&nbsp;**Management.** Except as otherwise required by Law or set forth in this Agreement (including <u>Section 6.02(0)),</u> the business and affairs of the Company shall be managed and controlled by a board of managers (the <u>"Board,"</u> and each member of the Board, a <u>"Manager"),</u> and the Board shall have full and complete discretion to manage and conduct the business and affairs of the Company, to make all decisions affecting the business and affairs of the Company and to take all actions as it deems necessary, advisable, or appropriate to accomplish the purposes of the Company as set forth in <u>Section 2.05.</u> Notwithstanding the foregoing, no Manager in his or her individual capacity shall have the authority to manage the Company or approve matters relating to, or otherwise bind, the Company, such powers being reserved to all of the Managers acting pursuant to <u>Section</u> *<u>6.02(Q</u>* through the Board and such agents of the Company as may be designated by the Board.

Section 6.02.&nbsp;&nbsp;&nbsp;&nbsp;**Board of Managers.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Composition: Manager.</u> The Board shall initially consist of three (3) Managers, designated 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)&nbsp;&nbsp;&nbsp;&nbsp;the Class A Members acting as a class shall be entitled to designate one (1) Manager (the <u>"Class A Manager");</u> *provided* that, for so long as Investor holds a majority of the Class A Units, Investor shall be entitled to designate the Class A Manager; *provided, further,* that no individual may serve as the Class A Manager if such individual is then serving on the board of directors or managers (or similar governing body), as the managing member or general partner (or similar governing Person) or as an executive officer, in each case, of any Person that is a Competitor of the Company; 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)&nbsp;&nbsp;&nbsp;&nbsp;the Class B Members acting as a class shall be entitled to designate two (2) Managers (each, a <u>"Class B Manager");</u> *provided* that, for so long as Fervo holds a majority of the Class B Units, Fervo shall be entitled to designate the Class B Managers; *provided, further,* that.

The initial Class A Manager designated by the Class A Members hereunder shall be James Blake and the initial Class B Managers designated by Fervo hereunder shall be Timothy Latimer and David Uhey.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Size of Board.</u> The number of Managers serving on the Board may not be increased or decreased except upon unanimous consent of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal and Resignation.</u> Except as otherwise set forth herein, a Manager will continue to serve on the Board until his or her death, disability, resignation, or removal. Any Manager may be removed from the Board, with or without cause, by the Member(s) who designated such Manager to serve on the Board; *provided,* that the Class A Members (in the case of a Class B Manager) may direct the Class B Members, and the Class B Members (in the case of a Class A Manager) may direct the Class A Members, to remove and replace any such Manager from the Board upon a reasonable showing of Cause against the Manager whose removal and replacement is being directed pursuant hereto. Upon any such reasonable showing of Cause and direction of removal and replacement, the Class A Members (in the case of a Class A Manager) or the Class B Members (in

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the case of a Class B Member) shall remove and replace the subject Manager within 10 days of such direction, in accordance with <u>Section 6.02(a).</u> A Manager may resign upon written notice to the Company. Such resignation shall take effect at the time specified in the notice of resignation or, if no time is specified, at the time of its receipt by the Company. The acceptance of a resignation shall not be necessary to make it effective unless expressly so provided in the resignation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Vacancies.</u> If a vacancy is created on the Board at any time by the death, disability, resignation, or removal of a Manager, the Member(s) that had designated such Manager to serve on the Board shall have the sole and exclusive right to designate a replacement therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement and Remuneration.</u> The Managers shall not be compensated separately for serving as a Manager. A Manager shall be reimbursed for reasonable out-of-pocket expenses incurred in connection with attending any meeting of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Votes per Manager; Quorum; Required Vote for Board Action.</u> Each Manager shall have one vote. Unless otherwise required by this Agreement, the presence of both (x) Managers having at least a majority of the votes then entitled to be cast by the total number of Managers then entitled to be appointed to the Board and (y) the Class A Manager shall constitute a quorum for the transaction of business at a meeting of the Board. If a quorum shall not be present at a meeting of the Board solely because of the absence of the Class A Manager, then the Managers present at such meeting may adjourn or reschedule such meeting for a time no earlier than 24 hours thereafter or pursuant to the requirements of this <u>Section 6.02;</u> *provided,* that if a quorum shall not be present at the second call of a meeting of the Board solely because of the absence of the Class A Manager, and there are otherwise a sufficient number of Managers to constitute a quorum under this <u>Section 6.02(f)</u> at such second call, such Managers present shall constitute a quorum for the transaction of business at such meeting of the Board. Except as otherwise set forth in this Agreement, approval of matters by the Board will require the affirmative vote or consent of at least a majority of the votes cast on such matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Place of Meetings; Order of Business.</u> The Board may hold its meetings, except as otherwise provided by Law, in such place or places, within or without the State of Delaware, as the Board may from time to time determine by resolution. At all meetings of the Board, business shall be transacted in such order as shall from time to time be determined by the resolution of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regular Meetings.</u> Regular meetings of the Board shall be held on at least a quarterly basis at such times and places as shall be designated from time to time by resolution of the Board. Notice of such regular meetings shall not be required if held at the times and places set forth in the relevant resolution and such resolution has been provided to each Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings.</u> Special meetings of the Board may be called by any Manager on at least forty-eight (48) hours' prior notice, which notice must include appropriate dial-in information to permit each Manager to participate in such meeting by means of telephone conference, video conference, or"similar means. Notice of a special meeting need not state the purpose or purposes of such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Action Without a Meeting.</u> Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by a majority of the Managers; *provided,* that notice of any proposed action to be taken by written consent of the Board is provided to each Manager at least forty-eight (48) hours

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prior to the proposed adoption or effectiveness of such action by the Board and, if any Manager in good faith requests a special meeting of the Board or other discussion with respect to any such proposed action, all of the Managers will work together in good faith to hold such meeting or discussion prior to the effectiveness of such proposed action; *provided, further,* that no such advance notice shall be required in connection with responding to an emergency that requires prompt action by the Board as reasonably determined by any Manager. The writing or writings evidencing any action by written consent shall be filed with the minutes of proceedings of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Telephonic Conference Meeting.</u> Subject to the requirement for notice of meetings, Managers may participate in a meeting of the Board by means of a conference telephone, video conference, or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in such a meeting shall constitute;- presence in person at such meeting, except where a Manager participates in the meet<sup>i</sup>ng for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Notice Through Attendance.</u> Attendance of a Manager at any meeting of the Board (including by telephone) shall constitute a waiver of notice of such meeting, except where such Manager attends the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened and notifies the other Managers at such meeting of such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reliance on Books, Reports and Records.</u> Each Manager shall, in the performance of his or her duties, be fully protected in relying in good faith upon the books of account or reports made to the Company by any of its Officers or by an independent certified public accountant or by an appraiser selected with reasonable care by the Board, or in relying in good faith upon other records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Committees.</u> The Board may establish by resolution committees of the Board (each a <u>"Committee"),</u> with each such Committee being composed of two or more Managers; *provided,* that each Committee shall have at least one Class A Manager and at least one Class B Manager as members. Any such Committee shall have and may exercise such of the powers and authority of the Board in the management of the business and affairs of the Company as shall be delegated to such Committee from time to time by resolution of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investor Consent Requirements.</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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Agreement to the contrary, neither the Company nor any other member of the Company Group shall (and the Boru·d shall cause the Company and each other member of the Company Group not to) take any of the following actions without the prior written consent of Class A Members who hold a majority of the issued and outstanding Class A Units (and, solely with respect to the matters set forth in subclauses (B), (F), (H) and (0) of this <u>Section 6.02(o)(i).</u> such consent not to be unreasonably withheld, conditioned or delayed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;(1) engaging in any business or activity that is not within the purpose of the Company as set forth in <u>Section 2.05,</u> or that is not within the purpose of any other member of the Company Group set forth in its respective organizational

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documents, or changing any such purpose or (2) changing the U.S. federal income Tax classification or legal form of any member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;forming any Subsidiary that is not wholly-owned by the Company or a wholly-owned Subsidiary of any 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;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;entering into, amending (other than any ministerial or administrative amendment), renewing, terminating or providing any consent or waiving any material right under (1) any PPA or any other power purchase or other offtake agreement to which any member of the Company Group is a party, (2) any Other Material Project Agreement or (3) any other contract or agreement (or series of related contracts or agreements) reasonably expected to require any payments to or from any member of the Company Group which are not contemplated by the Project Budget and are in excess of $5,000,000 in any calendar· year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;amending any previously approved version of the Project Budget, or making or incurring any expenditure that would exceed the amount set forth in the Project Budget (such amount to include any agreed-upon contingency amount) by more than 5% *(provided,* that the Class A Members shall not unreasonably withhold, condition or delay their consent pursuant to this clause (D) if the Company shall have demonstrated to the reasonable satisfaction of the Class A Members that the Company Group has access to a sufficient amount of capital to fund any such excess amount when it is required to be funded pursuant to the Project Budget or applicable contract);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;(1) incurring, or entering into or amending any documentation evidencing, indebtedness-for borrowed money in an amount in excess of $1,000,000, except for any indebtedness incurred under the XRC Loan Agreement and any Project Financing ((x) to the. extent the material terms of such Project Financing are, taken as a whole, either substantially similar to, or more favorable to the Company Group than, the terms reflected in that certain Indicative Project Finance Tenn Sheet sent by RBC on January 21, 2025 and (y) so long as Fervo has not materially breached any of its covenants set forth in <u>Section 3.11),</u> or (2) incurring or permitting to exist any Encumbrance on any assets of any member of the Company Group, other than Permitted Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;initiating, settling, releasing or compromising any pending or threatened litigation, suit or proceeding (including any administrative or arbitration proceeding) (each, an <u>"Action")</u> with an amount in controversy in excess of $1,000,000, other than with respect to any Action initiated by or against any Class A Member or Affiliates thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;entering into or consummating any merger, conversion, consolidation, joint venture or Investment Exit, or acquiring all or substantially all of the assets or equity interests of any other Person; *provided,* that any transfers or issuances of equity securities of the Company constituting less than an aggregate total of 50% of the total voting interests in the Company shall not be subject to this <u>Section 6.02(o)(i)(G)</u> so long as such transfer or issuance does not otherwise constitute a change of Control of the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;except as expressly contemplated by the Project Budget, or any other budget or business plan approved in accordance with this Agreement, acquiring or disposing of any assets (other than dispositions of obsolete, damaged or worn out assets in the ordinary course of business) with a Fair Market Value in excess of $500,000 individually, or $1,500,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;entering into, amending, suspending, terminating, enforcing or providing any consent or waiver with respect to, any material contract, arrangement, understanding or other transaction between or among any Member or any Affiliate thereof, on the one hand, and any member of the Company Group, on the other hand, other than any such contract, arrangement, understanding or other transaction that (i) contemplates annual payments not exceeding $500,000 and (ii) is on arms' length terms; *provided,* that, for the avoidance of doubt, the entry by any member of the Company Group into any contract in effect as of the date hereof and disclosed in the disclosure schedules to the Investor Subscription Agreement shall not require the consent of the Class A Members under this <u>Section 6.02(o)(i)(I);</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J)&nbsp;&nbsp;&nbsp;&nbsp;approving any Bankruptcy or dissolution of the Company or any Bankruptcy of any other member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;issuing any equity interests. that rank. (or are structurally) senior to or *pari passu* with the Class A Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;(1) filing or otherwise causing any member of the Company Group to file any entity classification election to treat any member of the Company Group other than as a partnership or a disregarded entity for United States federal income tax purposes (including by electing under Treasury Regulations Section 301.7701-3 to be classified as an association taxable as a corporation), (2) making any material Tax election for any member of the Company Group, except as provided herein, or (3) making any change to any material Tax or accounting method, except as would not have a disproportionate adverse effect on Investor as compared to the other Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;loaning any funds of any member of the Company Group to any Person (other than another member of the Company Group) other than extensions of trade credit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;permanently ceasing construction, development or operation of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing any member of the Company Group to (1) hire any employees, (2) enter into or adopt any bonus, profit sharing, thrift, compensation, option, pension, retirement, savings, welfare, deferred compensation, employment, termination, severance or other employee benefit plan, or (3) enter into any agreement, trust, fund, policy, or arrangement for the benefit or welfare of any directors (other than any customary director indemnification agreement), officers, or employees of any member of the Company Group, other than as expressly permitted pursuant to <u>Section 6.07;</u> 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;(P)&nbsp;&nbsp;&nbsp;&nbsp;agreeing or committing to take any of the foregoing actions.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Agreement to the contrary, neither Fervo nor any of its Affiliates shall claim any ITC in respect of the Project or the supply of any equipment, inputs or other materials thereto without the prior written consent of Class A Members who hold a majority of the issued and outstanding Class A Units; *provided, however,* that such prior written consent of the Class A Members shall not be required if, and only if, Fervo shall have delivered to the Class A Members a tax credit insurance policy with respect to PTCs anticipated to be earned or generated by or in respect of the Project in form and substance reasonably satisfactory to the Class A Members.

Section 6.03.&nbsp;&nbsp;&nbsp;&nbsp;**Transactions with Affiliates.** To the extent permitted by Law and approved by the Board, but subject to <u>Section 6.02(o)(i)(I)</u> each Member, whether acting for itself or on behalf of the Company, is hereby permitted to purchase property from, sell property to, enter into transactions with, loan money to, or otherwise deal with the Company Group, directly or indirectly through an Affiliate; *provided, however,* that any such dealing (including any issuance of Units other than pursuant to <u>Section 3.03(b)(vi))</u> that is not either (x) at Fair Market Value or (y) on arms' length terms, shall also require the consent of each disinterested Member. For the avoidance of doubt, neither the Company nor any other Member acting through the Company will have any lights in or to any income or profits received by a Member or any of its Affiliates (other than the Company Group) in any transaction permitted under this <u>Section</u> <u>6.03.</u>

Section 6.04.&nbsp;&nbsp;&nbsp;&nbsp;**Officers.** The Board may from time to time designate one or more Persons to be Company officers with such titles as the Board may assign to such Persons. The Board may grant authority to any officer to take actions on behalf of the Company pursuant to a written delegation of authority matrix or other written delegation of authority that has been approved by the Board, and upon the approval of such delegation of authority, the applicable officer shall be entitled to take any such actions with the authority granted to him or her in such delegation of authority notwithstanding any provision to the contrary in this <u>Article VI</u> and until such time as such delegation of authority expires pursuant to its terms or is revoked by the Board. The salaries or other compensation, if any, of the Company's officers and other agents will be fixed from time to time by the Board. Any officer may resign as such at any time. Such resignation will be made in writing and delivered to the Board and will take effect at the time specified therein or, if no time be specified, at the time of its receipt by the Board. Any officer may be removed as such, either with or without cause, by the Board, without prejudice to any contractual rights of such officer under any agreement with the Company Group. Any vacancy occurring in any Company office may be filled by the Board.

Section 6.05.&nbsp;&nbsp;&nbsp;&nbsp;**Waiver of Fiduciary Duties; Indemnification; Limitation of Liability.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except for the express obligations set forth in this Agreement or in any other agreement, to the maximum extent permitted by Law, no Member or Manager shall have any fiduciary or other duty to the Company, any other Member or Manager or any other Person other than the implied contractual covenant of good faith and fair dealing, and no Member or Manager shall be liable in damages to the Company, any other Member or Manager or any other Person by reason of, or arising from or relating to the business and affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent that it is determined by a final, non-appealable order of a court of competent jurisdiction that any of the foregoing was caused by a bad faith violation of the implied contractual covenant of good faith and fair dealing or actual fraud =.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Except for the express obligations set forth in this Agreement, to the maximum extent permitted by Law and without limiting the foregoing, (i) with respect to any action before the Board

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on which a Manager is entitled to vote or grant approval, (A) such Manager may vote or not vote, or grant or withhold approval, in the Manager's sole and absolute discretion, and (B) such Manager shall be entitled to consider only such interests and factors as it desires, including the interest of the Member(s) that appointed such Manager, and (ii) with respect to any matter on which a Member is entitled to vote or grant approval, (A) such Member may vote or not vote, or grant or withhold approval, in such Member's sole and absolute discretion, and (B) such Member shall be entitled to consider only such interests and factors as such Member desires, including its own interests or the interests of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;To the maximum extent permitted by Law but subject to this <u>Section 6.05,</u> each Member (including in its capacity as the Partnership Representative, if applicable) and each Manager (each an <u>"Indemnitee")</u> will be indemnified and held harmless by the Company against, all claims, actions, demands, losses, damages, liabilities, costs, or expenses, including attorney's fees, court costs, and costs of investigation, and including expenses incurred_in successfully enforcing this right to indemnification, actually and reasonably incurred by any such Indemnitee (collectively, <u>"indemnified Losses")</u> arising from any civil, criminal, or administrative proceedings in which such Indemnitee may be involved, as a party or otherwise, by reason of its being a Member (including in its capacity as the Partnership Representative, if applicable), or a Manager, or by reason of its involvement in the management of the Company's business and affairs, whether or not it continues to be such at the time any such Indemnified Loss is paid or incurred, except to the extent that any of the foregoing is determined by a final, non-appealable order of a court of competent jurisdiction (i) to have been caused by a willful breach of this Agreement or the actual fraud, gross negligence, willful misconduct, or bad faith of such persons or (ii) with respect to criminal matters, that an Indemnitee had reason to believe that his or her conduct was unlawful. IT IS THE EXPRESS INTENT OF THE PARTIES HERETO THAT THE FOREGOING INDEMNITY SHALL BE APPLICABLE TO ANY LOSS THAT HAS RESULTED FROM OR IS ALLEGED TO HAVE RESULTED FROM THE ACTIVE OR PASSIVE OR THE SOLE, JOINT, OR CONCURRENT ORDINARY NEGLIGENCE OF, THE INDEMNITEE. Nothing in this <u>Section 6.05(c)</u> shall limit the waiver of duties with respect to Members and Managers provided in <u>Section 6.06(a)</u> and <u>Section 6.06(b),</u> or otherwise impose a standard of care or liability with respect to Managers or Members that is more stringent than that expressed in <u>Section 6.06(a)</u> and <u>Section 6.06(b).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;To the maximum extent permitted by Law, expenses incurred by an Indemnitee in defending any proceeding (except a proceeding by or in the right of the Company or brought by any Member against such Indemnitee), will be paid by the Company in advance of the final disposition of the proceeding upon receipt of a written undertaking by or on behalf of such Indemnitee to repay such amount if such Indemnitee is determined pursuant to this <u>Section 6.05</u> or adjudicated to be ineligible for indemnification, which undertaking will be an unlimited general obligation of the Indemnitee but need not be seemed except as otherwise determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The indemnification provided by this <u>Section 6.05</u> will inure to the benefit of the heirs and personal representatives of each Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Any indemnification pursuant to this <u>Section 6.05</u> will be made only out of the Company's assets and will in no event cause any Member to incur any personal liability nor shall it result in any liability of the Members to any third party. The Company shall not be required to make a capital call to fund any indemnification obligation hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The rights of indemnification provided in this <u>Section 6.05</u> are in addition to any rights to which an Indemnitee may otherwise be entitled by contract (including advancement of expenses) or as a matter of law. Notwithstanding the foregoing, if any fact, circumstance or condition fanning a basis for a claim for indemnification by Investor under Section 8.2 of the Investor Subscription Agreement shall overlap with any fact, circumstance, condition, agreement or event fanning the basis of any other claim for indemnification by the Investor under this <u>Section 6.05,</u> there shall be no duplication in the calculation or recovery of the amount of the Indemnified Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other term of this Agreement, but subject to <u>Section 6.05(b),</u> to the extent that any term of this Agreement purports or is interpreted (i) to have the effect of replacing, restricting, or eliminating the duties that might otherwise, as a result of Delaware or other Law, be owed by a Member or a Manager to the Company, the other Members or Managers, any other Person who acquires an interest in the Company or any other Person who-is bound by this Agreement, or (ii) to constitute a waiver of such duties by the Company, the Members, the Managers, any other Person who acquires an interest in the Company or any other Person who is bound by this Agreement or a consent by any of the foregoing to any such replacement, restriction, or elimination, such term shall be deemed to have been approved by the Company, all the Members, the Managers, each other Person who acquires an interest in the Company and each other Person who is bound by or seeks to exercise rights under this Agreement.

Section 6.06.&nbsp;&nbsp;&nbsp;&nbsp;**Company as Indemnitor of First Resort.** The Company hereby agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;it is the indemnitor of first resort under this Agreement or any other indemnification agreement, arrangement, or undertaking with respect to any Indemnitee and, as a result, the Company's obligations to any such Indemnitee under this Agreement or any other agreement, arrangement, or undertaking to provide advancement of expenses and indemnification to such Indemnitee are primary without regard to any tights such Indemnitee may have to seek or obtain indemnification or advancement of expenses from any other Person or any of its Affiliates <u>("Other Indemnitor")</u> or from any insurance policy for the benefit of such Indemnitee (other than any directors' or managers' and officers' insurance policy for the benefit of such Indemnitee maintained or paid for by the Company Group), and any obligation of any Other Indemnitor to provide advancement or indemnification for all or any portion of the same expenses, liabilities, judgments, penalties, fines, and amounts paid in settlement (including all interest, assessments, and other charges paid or payable in connection with or in respect of such expenses, liabilities, judgments, penalties, fines, and amounts paid in settlement) incurred by such Indemnitee and any rights of recovery of such Indemnitee under any insurance policy for the benefit of such Indemnitee (other than any directors' and officers' insurance policy for the benefit of such Indemnitee maintained or paid for by the Company Group) are secondary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) if any Indemnitee pays or causes to be paid, for any reason, any amounts otherwise payable or indemnifiable under <u>Section 6.05(a).</u> then such Indemnitee shall be indemnified therefor pursuant to <u>Section 6.05(a);</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;if any other Person pays or causes to be paid on behalf of an Indemnitee, for any reason, any amounts otherwise payable or indemnifiable hereunder or under any other indemnification agreement, arrangement, or undertaking (whether pursuant to contract, organizational document, or otherwise) with such Indemnitee, then (A) such Person shall be fully subrogated to all tights of an Indemnitee with respect to such payment and (B) the

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Company shall fully indemnify, reimburse, and hold harmless such Person for all such payments actually made by such Person; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;if any Indemnitee collects under any insurance policy for the benefit of such Indemnitee (other than any directors' and officers' insurance policy for the benefit of such Indemnitee maintained or paid for by the Company Group), any amounts otherwise payable or indemnifiable hereunder or under any other indemnification agreement, arrangement, or undertaking (whether pursuant to contract, organizational document, or otherwise) with such Indemnitee, then (A) such insurer shall be fully subrogated to all rights of such Indemnitee with respect to such payment and (B) the Company shall fully indemnify, reimburse, and hold harmless such insurer for all such payments actually made by such insurer.

Section 6.07.&nbsp;&nbsp;&nbsp;&nbsp;**Managers' and Officers' Insurance.** The Company will purchase and maintain managers' and officers' liability insurance in the amount approved by the Board, if any, on behalf of any Person who is or was a Member, a Manager, or a Company Group officer against any liability asserted against him or her or incurred by him or her in any capacity identified in <u>Section 6.05</u> or arising out of his or her status as an Indemnitee, whether or not the Company would have the power to indemnify him or her against that liability under <u>Section</u> <u>6.05.</u>

Section 6.08.&nbsp;&nbsp;&nbsp;&nbsp;**Other Activities.** Notwithstanding anything to the contrary in this Agreement but subject to <u>Section 7.03</u> and any other agreement entered into by the Members, the Members, the Managers and their respective Affiliates may engage or invest in, and devote their time to, any other business venture or activity of any nature and description, whether or not such activities are considered competitive with the Company Group or its business, and neither the Company Group nor any other Member will have any right by virtue of this Agreement or the relationship created hereby in or to such other venture or activity (or to the income or proceeds derived therefrom), and the pursuit of such other venture or activity will not be deemed wrongful or improper. Such right of the Members, the Managers, and their respective Affiliates does not require notice to, approval from, or other sharing with, any other Member or member of the Company Group. The legal doctrines of "corporate opportunity," "business opportunity," and similar doctrines will not be applied to any such competitive venture or activity of the Members, the Managers, and their respective Affiliates. Except as described herein, none of the Members, the Managers, or their respective Affiliates will have any obligation to the Company Group or any other Member with respect to any opportunity to expand the Company Group's business or affairs, whether geographically or otherwise.

Section 6.09.&nbsp;&nbsp;&nbsp;&nbsp;**No Recourse Against Nonparty Affiliates.** This Agreement may only be enforced against, and any claim based upon, arising out of, or related to this Agreement or the negotiation, execution, or performance of this Agreement may only be brought against, the Persons expressly party hereto, and then only with respect to the specific obligations set forth herein or therein with respect to such Persons. For further clarity, no past, present, or future director, officer, employee, incorporator, manager, member, partner, equityholder, Affiliate, agent, attorney, or other representative (in each case, in their capacities as such) of any Person party hereto or of any Affiliate of any Person party hereto, or any of their successors or permitted assigns, shall have any liability for any obligations or liabilities of any Member under this Agreement or for any claim based on, in respect of or by reason of the transactions contemplated hereby or thereby. Without limiting the foregoing, to the extent permitted by Law, (a) each Person party hereto hereby waives and releases all rights, claims, demands, or causes of action that may otherwise be available at Law or in equity, or granted by statute, to avoid or disregard the Entity form of any Person party hereto or otherwise

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impose liability of any Person party hereto on any other Person, whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham, single business enterprise, piercing the veil, unfairness, undercapitalization, or otherwise and (b) each Person party hereto disclaims any reliance upon any other Person not party hereto with respect to the performance of this Agreement or any representation or warranty made in, in connection with, or as an inducement to this Agreement.

**ARTICLE VII**

**RIGHTS OF MEMBERS; CONFIDENTIALITY; BOOKS AND RECORDS**

Section 7.01.&nbsp;&nbsp;&nbsp;&nbsp;**Access to Information.** In addition to the other rights specifically set forth in this Agreement, the Members will have access to all information to which a member of a limited liability company is entitled to have access pursuant to non-waivable provisions of the Act.

Section 7.02.&nbsp;&nbsp;&nbsp;&nbsp;**Financial Reports.** The Company will cause to be prepared or delivered such reports as the Board may request. Additionally, the Company shall furnish the following to the Members:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;within one hundred twenty (120) days after the end of each Fiscal Year: (i) an audited consolidated balance sheet of the Company and the Subsidiaries as of the end of such Fiscal Year and the related consolidated income statement, statement of Members' equity and statement of cash flows for such Fiscal Year prepared in accordance with GAAP and a signed audit letter from the Company's auditors; and (ii) a copy of the reports from the Company's auditors pursuant to Statements of Auditing Standards 114 and 115 for such Fiscal Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;within forty-five (45) calendar days after the end of each fiscal quarter, an unaudited, consolidated balance sheet of the Company and the Subsidiaries as of the end of such quarter and an unaudited related statement of operations and statement of cash flows of the Company and the Subsidiaries for such quarter prepared in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;within forty-five (45) calendar· days after the end of each month, consolidated monthly financial statements, including an unaudited balance sheet as of the end of the prior month and an unaudited related consolidated income statement, statement of cash flows and statement of members' equity of the Company and the Subsidiaries for such month prepared in accordance GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;promptly after the occurrence of any event that has had or could reasonably be expected to have a material adverse effect on the Company's business, operating results, or financial condition, notice of such event together with a summary describing the nature of the event and its impact on the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any other information that a Member may reasonably request.

Section 7.03.&nbsp;&nbsp;&nbsp;&nbsp;**Confidentiality.** Each Member, on behalf of itself, its Affiliates and its advisors, agrees that this Agreement, all understandings, agreements and other arrangements between and among the Members, and all other non-public information received from or otherwise relating to the Company Group or its business and affairs will be confidential, and will not be disclosed or otherwise released to any other Person (other than another Member), without Board approval, unless such disclosure or release is otherwise permitted pursuant to the terms of a separate agreement between the Company Group, on the one hand, and such Member, on the other; *provided, however,*

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that Investor or Fervo may disclose any of the above confidential information to its Affiliates and its and their potential and actual Transferees, lenders, investors, and representatives who are bound by confidentiality duties or obligations with respect thereto. The obligations of the Members hereunder will not apply to the extent that the disclosure of information otherwise determined to be confidential is required by Law; *provided, however,* that prior to disclosing such confidential information, to the extent practicable a Member must notify the Company thereof, which notice will include the basis upon which such Member believes the information is required to be disclosed. Each Member agrees that it will not use any such confidential information (x) in any way that would be reasonably expected to benefit any Competitor or (y) for any other purpose except in connection with its investment in the Company, including a potential sale or acquisition of its Units. Furthermore, Members and the Company acknowledge that Investor and its Affiliates' employees, directors, officers, and principals serve, or may in the future serve, as directors of direct or indirect portfolio companies (which will be deemed to include entities in which Investor or its Affiliates own any equity interests) of investment funds advised or managed by Investor or any of its Affiliates or any of their respective direct or indirect investors (collectively, the <u>"Excluded Entities"),</u> and that such employees, directors, officers, principals, and Excluded Entities will not be deemed to have used confidential information solely due to the dual roles of any such employee, director, officer, or principal or the use by such employee, director, officer, or principal of general industry information that is confidential information.

Section 7.04.&nbsp;&nbsp;&nbsp;&nbsp;**Press Releases.** No member of the Company Group nor any Member shall issue, or authorize to be issued, any press release, interview, article, or other media release (including an internet posting, web blog, or other electronic publication) that makes reference to this Agreement or the transactions contemplated herein without the prior written consent of the Board. Notwithstanding the foregoing, the Company or its Affiliates, as applicable, shall list Investor as an investor in any public communication generally listing or recognizing other supporters, investors, financiers or donors of the Company or its Affiliates, if applicable.

Section 7.05.&nbsp;&nbsp;&nbsp;&nbsp;**Maintenance of Books- and Records.** The books of account for the Company and other Company records will be located at the Company's principal office or such other place as the Board may deem appropriate, and will be maintained on an accrual basis in accordance with this Agreement, except that the Capital Accounts of the Members will be maintained in accordance with the definition of Capital Account.

Section 7.06.&nbsp;&nbsp;&nbsp;&nbsp;**Bank Accounts.** The Board will cause the Company to establish and maintain one or more separate bank or investment accounts for Company funds in the Company name with such financial institutions and films as the Board may select and with such signatories thereon as the Board may designate.

**ARTICLE VIII**

**TAXES**

Section 8.01.&nbsp;&nbsp;&nbsp;&nbsp;**Tax Returns.** The Board will cause to be prepared and filed all necessary federal, state, and local income tax returns for the Company, and the Board **will** engage a nationally recognized accounting film, or such other accounting firm as the Class A Members and the Class B Members mutually agree, to prepare the Company's federal and state income tax returns. Each Member will furnish to the Board all pertinent information in its possession relating to Company operations that is necessary to enable the Company's tax returns to be prepared and filed. The Company shall furnish to each Member an estimated IRS Form 1065, Schedule K-1 with respect to such Member no later than March 15th following each Fiscal Year and a final IRS Form 1065,

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Schedule K-1 with respect to such Member no later than September 15<sup>th</sup> following each Fiscal Year and will use commercially reasonable efforts to provide Members with the information necessary for each Member to calculate its obligation to make estimated payments of income taxes related to the ownership of such Member's Units on a timely basis.

Section 8.02.&nbsp;&nbsp;&nbsp;&nbsp;**Tax Elections.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Elections by the Company.</u> The Company will make the following elections in the appropriate manner:

&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)&nbsp;&nbsp;&nbsp;&nbsp;to adopt the Company's Fiscal Year set forth in <u>Section 2.06;</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;to adopt the accrual method of accounting;

&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)&nbsp;&nbsp;&nbsp;&nbsp;to elect to amortize the Company's start-up expenses under Code Section 195 ratably over a period of one hundred eighty (180) months as permitted by Code Section 195(b);

&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)&nbsp;&nbsp;&nbsp;&nbsp;to elect to amortize the Company's organization expenses under Code Section 709 ratably as permitted by Code Section 709(b); 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;(v)&nbsp;&nbsp;&nbsp;&nbsp;subject to <u>Section 6.02(0)</u> and <u>Section 8.02(c),</u> any other election the Board may deem appropriate and in the best interests of the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Elections by Members.</u> If any Member makes any Tax election that requires the Company to furnish information to such Member to enable such Member to compute its own Tax liability, or requires the Company to file any Tax return or report with any Taxing authority, in either case, that would not be required in the absence of such election made by such Member, the Company may, as a condition to furnishing such information or filing of such return or report, require such Member to pay to the Company any incremental expenses incurred in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Characterization by the Company.</u> It is the intent of the Members that the Company be treated as a partnership for federal income tax purposes and, to the extent permitted by Law, for state and local franchise and income tax purposes. Except in connection with a conversion of the Company as contemplated by <u>Section 4.03,</u> neither the Company nor any Member may make an election for the Company to be treated as a corporation, and no term of this Agreement will be construed to sanction or approve such an election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 754 Election.</u> To the extent an election under Code Section 754 is not already in effect for the Company, the Company shall make the election provided by Code Section 754 in accordance with Treasury Regulations Section 1.754-l(b) for its taxable year that includes the Effective Date or whenever requested by any Member.

Section 8.03.&nbsp;&nbsp;&nbsp;&nbsp;**Partnership Representative.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;From time to time, the Board shall designate a Person to act as the Partnership Representative within the meaning of Code Section 6223 and in a similar capacity under any other applicable Tax Law; *provided, however,* that Fervo shall be designated as the Partnership Representative as of and after the Effective Date, unless otherwise determined by the Board, and for each taxable year of the Company, the Company shall appoint an individual subject to the control of

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the Partnership Representative (the <u>"Designated Individual")</u> meeting the requirements of Treasury Regulations Section 301.6223-l(b)(J) as the person authorized to represent the Partnership Representative in audits and other proceedings governed by the partnership audit procedures set forth in Subchapter C of Chapter 63 of the Code as amended by the Bipartisan Budget Act of 2015 (the <u>"Revised Partnership Audit Rules")</u> and shall revoke such appointment if such individual ceases to be subject to the control of the partnership Representative. The Partnership Representative and Designated Individual shall have all rights, authority, and power, and shall be subject to all obligations, of a partnership representative to the extent provided in the Code and the Treasury Regulations or other Law and shall represent the Company in all Tax matters to the extent determined by the Board and allowed by Law. Each of the Partnership Representative and Designated Individual shall use its commercially reasonable efforts to minimize the financial burden of any partnership adjustment to each Member and former Member holding Membership Interests during the reviewed fiscal year·, through the application of the procedures established pursuant to Section 6225(c) of the Code, and/or through an election and the furnishing of statements pursuant to Section 6226 of the Code and each Member (and each former Member) agrees to use commercially reasonable efforts to cooperate with the Partnership Representative and Designated Individual and do or refrain from doing any or all things reasonably requested by the Partnership Representative or Designated Individual (including paying such Member's allocable share of any and all resulting taxes, additions to tax, penalties and interest in a timely fashion) in connection with any audit or examination of the Company's affairs by any federal, state or local tax authorities, including resulting administrative and judicial proceedings; *provided, however,* that no Member shall have an obligation to file any amended tax return. The partnership Representative and Designated Individual shall use commercially reasonable efforts to comply with any reasonable request of a Member to modify any adjustment by any taxing authority of any item of income, gain, loss, deduction or credit of the Company under Section 6225(a) of the Code (or any similar· provision of state or local law) attributable to such Member by application of Section 6225(c) of the Code (or any similar provision of state or local law). Expenses incurred by the Partnership Representative or a Person acting in a similar capacity as set forth in this <u>Section 8.03</u> shall be borne by the Company. Such expenses shall include fees of attorneys and other Tax professionals, accountants, appraisers, and experts, filing fees, and reasonable out-of-pocket costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 8.03(c),</u> the Partnership Representative and Designated Individual shall not (i) settle any Tax matter, (ii) extend the period of limitations for the assessment or collection of any Tax or (iii) choose or change the forum for such contest, without the prior written consent of the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Partnership Representative and Designated Individual shall keep the Members fully informed of any federal, state or local Tax inquiry, examination or proceeding, including promptly notifying the Members of the beginning and completion of a federal, state or local Tax administrative or judicial proceeding involving the Company and promptly informing the Members of any tax deficiencies assessed by any taxing authority against the Company or the Members, in each case, promptly upon such notice being received by the partnership Representative or Designated Individual. Each Member does hereby agree to indemnify and hold harmless the Company from and against any liability with respect to its share of any tax deficiency paid or payable by the Company that is allocable to the Member (as reasonably determined by the Board) with respect to an audited or reviewed taxable year for which such Member was a Member (for the avoidance of doubt, including any applicable interest and penalties); such obligation will survive such Member's ceasing to be a Member and/or the termination, dissolution, liquidation and winding up of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The provisions contained in this <u>Section 8.03</u> shall survive the termination of the Company and the Transfer of any Membership Interest.

**ARTICLE IX**

**DISSOLUTION, LIQUIDATION AND TERMINATION**

Section 9.01.&nbsp;&nbsp;&nbsp;&nbsp;**Dissolution.** Subject to <u>Section 6.02(0),</u> the Company will dissolve and its affairs will be wound up upon the first to occur of either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;approval of all the Managers; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any other event causing dissolution of the Company under the Act;

*provided, however,* that, upon dissolution pursuant to <u>Section 9.0l(b),</u> any remaining Members may elect to continue the Company's business within ninety (90) days after the occurrence of the event causing such dissolution. The death, resignation, withdrawal, bankruptcy, insolvency, or expulsion of any Member will not dissolve the Company.

Section 9.02.&nbsp;&nbsp;&nbsp;&nbsp;**Liquidation and Termination.** On dissolution of the Company, the Board may appoint one or more Persons as liquidator(s). The liquidator will proceed diligently to wind up the Company's affairs and make final distributions as provided herein. The costs of liquidation will be borne as a Company expense. Until final distribution, the liquidator will continue to operate the Company properties with all power and authority of the Members. The steps to be accomplished by the liquidator are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;as promptly as possible after dissolution and again after final liquidation, the liquidator will cause a proper accounting to be made by a recognized form of certified public accountants of the Company's assets, liabilities, and operations through the last day of the calendar month in which the dissolution occurs or the final liquidation is completed, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the liquidator will pay from Company funds all of the Company's debts and liabilities (including all expenses incurred in liquidation) or otherwise make adequate provision therefor (including the establishment of a cash escrow fund for contingent liabilities in such amount and for such term as the liquidator may reasonably determine); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Company will dispose of all remaining assets 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)&nbsp;&nbsp;&nbsp;&nbsp;the liquidator may sell any Company property, and any resulting gain or loss from each sale will be computed and allocated to the Members pursuant to <u>Section 5.02;</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;without duplication of the adjustments required pursuant to the definition of Gross Asset Value, with respect to all Company property that has not been sold, the Fair Market Value of that property will be determined and the Capital Accounts of the Members will be adjusted to reflect the manner in which the unrealized income, gain, loss, and deduction inherent in such property that has not been reflected in the Capital Accounts previously would be allocated among the Members if there were a Taxable sale of such property for the Fair Market Value of such property on the date of distribution; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;thereafter, Company property will be distribution among the Members in accordance with <u>Section 5.0l(a).</u> All distributions made pursuant to this <u>Section 9.02(c)(iii)</u>

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will be made, to the extent reasonably practicable, by the end of such Fiscal Year (or, if later, within ninety (90) days after the date of such liquidation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;All distributions in kind to the Members will be valued at Fair Market Value, as determined by the liquidator, and made subject to the liability of each distributee for its allocable share of costs, expenses, and liabilities theretofore incurred or for which the Company has committed prior to the date of termination and those costs, expenses, and liabilities will be allocated to the distributee pursuant to this <u>Section 9.02.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, each Member will receive an undivided interest in any Company property distributed in kind to the Members, and each Member's proportionate interest in such distributed property will be determined based upon the proportionate amount of cash distributions such Member would receive in liquidation of the Company, if the liquidator (i) sold all Company properties for cash (in amounts equal to their respective Fair Market Values), (ii) satisfied all Company liabilities (limited with respect to any Company nonrecourse liabilities to the Fair Market Value of the property securing such liabilities), and (iii) distributed the proceeds from such sale and any other cash on hand to the Members pursuant to <u>Section 5.01(a).</u>

Section 9.03.&nbsp;&nbsp;&nbsp;&nbsp;**Cancellation of Filing.** On completion of the distribution of Company assets as provided herein, the Company will be terminated and the Board (or such other Person or Persons as may be authorized or required) will cause the cancellation of any other filings previously made on behalf of the Company and will take such other actions as may be necessary to terminate the Company.

**ARTICLE X**

**GENERAL TERMS**

Section 10.01.&nbsp;&nbsp;&nbsp;&nbsp;**Notices.** All notices, requests, or consents provided for or permitted to be given under this Agreement will be in writing (including writing transmitted as provided in <u>Section 10.14)</u> and will be given (a) by depositing such writing with a reputable overnight courier for next day delivery, or (b) by delivering such writing to the recipient in person, by courier or by email transmission. A notice, request or consent given under this Agreement will be effective on receipt by the Person to receive it except that a notice, request, or consent given by email transmission will be effective when sent. All notices, requests, and consents to be sent to a Member will be sent to or made at the addresses given for that Member on the list on <u>Schedule 1</u> or such other address as that Member may specify by notice to the other Members.

Section 10.02.&nbsp;&nbsp;&nbsp;&nbsp;**Entire Agreement; Supersedure; Third-Party Beneficiaries.** This Agreement, together with the agreements entered into in connection herewith, constitutes the entire agreement of the Members relating to the Company and supersedes all prior contracts or agreements with respect to the Company, whether oral or written. Notwithstanding any other term of this Agreement, the Company may, upon approval of the Board, enter into agreements or other writings with any Member in respect of the Units of such Member, and the rights of the Company and obligations of such Member set forth in any such agreement or writing may establish lights in favor of the Company or such Member or limit the rights of the Company or such Member. Nothing in this Agreement, express or implied, is intended to confer upon any Person other than the parties hereto and their respective successors, personal representatives, and permitted assigns, any rights or remedies under or by reason of this Agreement; *provided, however,* that (a) the Board, Company Group officers, and former Managers and Company Group officers are intended to be third-party

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beneficiaries of <u>Sections 6.05, 6.06, 6.07, 6.08,</u> and <u>6.09,</u> with rights to enforce such terms as though a party to this Agreement and (b) the Persons described in <u>Section 6.09</u> am intended to be third-party beneficiaries with rights to enforce <u>Section 6.09</u> as though a party to this Agreement.

Section 10.03.&nbsp;&nbsp;&nbsp;&nbsp;**Effect of Waiver or Consent.** A waiver or consent, express or implied, to or of any breach or default by any Person in the performance by such Person of its obligations with respect to the Company will not constitute a consent or waiver to or of any other breach or def<sup>a</sup>ult in the performance by that Person of the same or any other obligations of that Person with respect to the Company. Failure on the part of a Person to complain of any act of any Person or to determine any Person to be in default with respect to the Company, irrespective of how long such failure continues, will not constitute a waiver by that Person of its rights with respect to that default until the applicable limitations period has expired.

Section 10.04.&nbsp;&nbsp;&nbsp;&nbsp;**Amendment or Modification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise set faith in this Agreement, this Agreement may be amended or modified from time to time only by a written instrument that is adopted by Fervo and the Members holding a majority of the Class B Units; *provided, however,* that, subject to <u>Section</u> <u>10.04(b)</u> (i) any such amendment that materially and disproportionately adversely affects any Class A Member as compared to the impact of such amendment on other Members will require the consent of such Class A Member, (ii) any such amendment that requires any Member to make a Capital Contribution to the Company not contemplated by <u>Section 3.03(b)</u> or to which such Member has not otherwise agreed in writing will require the consent of such Member, and (iii) any such amendment that alters <u>Section 4.02, Section 6.02(o)</u> or <u>Section 9.01,</u> this <u>Section</u> <u>10.04</u> or any other provision of this Agreement that provides an express consent right to Investor (or any Manager appointed by investor) will require the consent of Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, no Member approval is required for any amendment made by the Board (i) to <u>Schedule 1</u> in accordance with <u>Section 3.01</u> or <u>Section 3.03(b)(vii),</u> (ii) in connection with the creation and issuance of additional or different classes or series of Units approved in accordance with this Agreement or (iii) in connection with an Internal Restructuring approved in accordance with this Agreement and effected in accordance with <u>Section 4.03.</u>

Section 10.05.&nbsp;&nbsp;&nbsp;&nbsp;**Survivability of Terms.** <u>Sections 3.09, 5.03, 6.05, 6.06, 6.07, 6.08,</u> <u>6.09,</u> and <u>7.03,</u> and <u>Articles VIII</u> and <u>X</u> shall survive any termination of this Agreement (and the withdrawal of any Member) and will be construed as agreements independent of any other terms of this Agreement.

Section 10.06.&nbsp;&nbsp;&nbsp;&nbsp;**Binding Effect.** Except in accordance with a Transfer of Units permitted hereunder, this Agreement may not be assigned by any party hereto, and any purported assignment that is not pursuant to a Transfer of Units permitted hereunder shall be void and of no force and effect. Subject to the restrictions on Transfer set forth in this Agreement, this Agreement will be binding on and inure to the benefit of the Members and their respective heirs, legal representatives, trustees, successors, and assigns.

Section 10.07.&nbsp;&nbsp;&nbsp;&nbsp;**Governing Law; Severability.** This Agreement is governed by and will be construed in accordance with the Laws of the State of Delaware, excluding any conflict-of-Laws rule or principle (whether under the Laws of Delaware or any other jurisdiction) that might refer the

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governance or the construction of this Agreement to the Laws of another jurisdiction. If any term of this Agreement or its application to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of such term to other Persons or circumstances will not be affected thereby, and such term will be enforced to the extent permitted by applicable Law.

Section 10.08.&nbsp;&nbsp;&nbsp;&nbsp;**Dispute Resolution; Consent to Jurisdiction; Waiver of Jury Trial.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Any controversy, dispute or claim, whether based on contract, tort, statute or other legal or equitable theory (including any claim of fraud, misrepresentation or fraudulent inducement or any question of validity or effect of this Agreement) between the Members arising out of or related to or in connection with this Agreement, any transactions arising under this Agreement or the breach of this Agreement (each a <u>"Dispute")</u> shall be exclusively and finally settled in accordance with this <u>Section 10.08.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The patties to any Dispute shall first attempt in good faith to resolve such Dispute by mutual discussion and agreement within thirty (30) days after the date that one party to the Dispute gives written notice of such Dispute to the Company and each other party to the Dispute. If the Dispute is not resolved within thirty (30) days after receipt of such notice, it may be submitted to the state and federal courts of the State of Delaware in accordance with <u>Section</u> <u>10.08(c)-(f).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;EACH PARTY HERETO VOLUNTARILY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE LOCATED IN WILMINGTON, DELAWARE (OR IF SUCH COURTS SHALL NOT HAVE JURISDICTION, ANY UNITED STATES STATE OR FEDERAL COURT SITTING IN THE STATE OF DELAWARE) FOR ANY DISPUTE, AND HEREBY IRREVOCABLY AGREES THAT SUCH DISPUTE MAY BE HEARD AND DETERMINED IN SUCH DELAWARE STATE OR U.S. FEDERAL COURT. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO VENUE OR ANY DEFENSE OF INCONVENIENT FORUM FOR THE MAINTENANCE OF ANY ACTION WITH RESPECT TO SUCH DISPUTE. EACH PARTY HERETO FURTHER AGREES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THAT A FINAL AND NONAPPEALABLE JUDGMENT AGAINST ANY PARTY HERETO IN ANY ACTION WITH RESPECT TO ANY DISPUTE SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION WITHIN OR OUTSIDE THE UNITED STATES BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW, A CERTIFIED COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE OF THE FACT AND AMOUNT OF SUCH JUDGMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;EACH PARTY HERETO HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION WITH RESPECT TO ANY DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY HERETO CERTIFIES THAT HIS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH IN THIS <u>Section 10.09.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;IT IS THE INTENT OF THE PARTIES THAT IN THE EVENT ANY PARTY HAS THE RIGHT TO BRING OR TO PARTICIPATE IN ANY LAWSUIT BROUGHT AS A CLASS

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ACTION, COLLECTIVE ACTION OR IN A REPRESENTATIVE CAPACITY AGAINST EACH OTHER OR THE COMPANY IN CONNECTION WITH ANY CLAIM ARISING OUT OF, CONNECTED WITH OR RELATING IN ANY WAY TO THE COMPANY'S BUSINESS OR AFFAIRS OR TO THIS AGREEMENT, THE RIGHT TO BRING OR PARTICIPATE IN THE CLASS ACTION LAWSUIT IS EXPRESSLY WAIVED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any party hereto (including assignees of any party's rights or obligations under this Agreement) may be entitled, in any jurisdiction, to claim for itself or its revenues, assets, or properties, immunity from service of process, from suit, from the jurisdiction of any court, from an interlocutory order or injunction or the enforcement of the same against its property in such court, from attachment prior to judgment, from attachment in aid of execution of an arbitral award or judgment (interlocutory or final), or from any other legal process, and to the extent that, in any such jurisdiction there may be attributed such immunity (whether claimed or not), each party hereto hereby irrevocably agrees not to claim, and hereby irrevocably waives, such immunity.

Section 10.09.&nbsp;&nbsp;&nbsp;&nbsp;**Specific Performance.** The Members understand and agree that (a) irreparable damage would occur in the event that any provision of this Agreement were not performed in accordance with its specific terms, (b) although monetary damages may be available for the breach of such covenants and agreements, such monetary damages are not intended to and do not adequately compensate for the harm that would result from a breach of this Agreement, would be an inadequate remedy therefor and shall not be construed to diminish or otherwise impair in any respect any Member's or the Company's light to specific performance and (c) the right of specific performance is an integral part of the transactions contemplated by this Agreement and without that right none of the Members would have entered into this Agreement. It is accordingly agreed that, in addition to any other remedy that may be available to it, including monetary damages, each of the Members and the Company shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement. Each of the Members further agrees that no Member nor the Company shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this <u>Section 10.09,</u> and each Member waives any objection to the imposition of such relief or any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

Section 10.10.&nbsp;&nbsp;&nbsp;&nbsp;**Offset.** Whenever the Company is to pay any sum to any Member or its Affiliates, any debts, liabilities, or amounts as determined by the Board in good faith to be owed by such Member or its Affiliates to the Company Group may be deducted from such sum before payment and applied to offset such debts liabilities or amounts.

Section 10.11**.&nbsp;&nbsp;&nbsp;&nbsp;Further Assurances.** In connection with this Agreement and the transactions contemplated hereby, each Member will execute and deliver any additional agreements, documents, and instruments and perform any additional acts that may be necessary, appropriate or desirable to effectuate and perform the terms of this Agreement and such transactions, including voting for, consenting to, and raising no objections to any transaction contemplated hereby and waiving any dissenters' rights, appraisal rights, or similar· rights in connection therewith.

Section 10.12.&nbsp;&nbsp;&nbsp;&nbsp;**Waiver of Certain Rights.** To the extent permitted by Law, each Member irrevocably waives any right it might have to maintain any action for dissolution of the Company or to maintain any action for partition of the Company's property.

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Section 10.13.&nbsp;&nbsp;&nbsp;&nbsp;**Counterparts.** This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts will be construed together and constitute the same instrument.

Section 10.14.&nbsp;&nbsp;&nbsp;&nbsp;**Electronic Transmissions.** Each of the patties hereto agrees that (a) any signed document transmitted by electronic transmission shall be treated in all manner and respects as an original written document, (b) any such document shall be considered to have the same binding and legal effect as an original document, and (c) at the request of any party hereto, any such document shall be re-delivered or re-executed, as appropriate, by the relevant party or parties in its original form. Each of the parties hereto further agrees that they will not raise the transmission of a document by electronic transmission as a defense in any proceeding or action in which the validity of such consent or document is at issue and hereby forever waives such defense. For purposes of this Agreement, the term "electronic transmission" means any form of communication not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process. The use of an electronic signature to conduct a transaction, indicate the execution of an agreement or provide notice or other form of communication is expressly authorized.

[*Signature Pages Follow*]

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IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of the Effective Date.

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| | |
|:---|:---|
| COMPANY: | COMPANY: |
| CAPE PHASE I HOLDCO, LLC | CAPE PHASE I HOLDCO, LLC |
| By: | /s/ Timothy Latimer |
| Name: | Timothy Latimer |
| Title: | Manager |
| COMPANY: | COMPANY: |
| CAPE HOLDCO LLC | CAPE HOLDCO LLC |
| By: | /s/ Timothy Latimer |
| Name: | Timothy Latimer |
| Title: | Manager |

---

(*Signature Page to Amended and Restated Limited Liability Company Agreement*

*of Cape Phase I Holdco, LLC*)

------

---

| | |
|:---|:---|
| GRANITE ENERGY INVESTCO, LLC | GRANITE ENERGY INVESTCO, LLC |
| By: | /s/ Mario Fernandez |
| Name: | Mario Fernandez |
| Title: | President |

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(*Signature Page to Amended and Restated Limited Liability Company Agreement*

*of Cape Phase I Holdco, LLC*)

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**Schedule 1**

**Members, Classes, Capital Contributions, and Units($ in millions)**

**[\*\*\*]**

Schedule 1

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**<u>Schedule 2</u>**

**Schedule of Class A Target Capital Payment Amounts**

**[\*\*\*]**

Schedule 2

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**Exhibit A**

**Form of Adoption Agreement**

This adoption agreement (this <u>"Adoption Agreement")</u> is executed as of _____________ pursuant to the terms of the Amended and Restated Limited Liability Company Agreement of Cape Phase I Holdco, LLC, dated May 28, 2025, and the Schedules and Exhibits thereto, as amended or restated from time to time, a copy of which is attached hereto (the <u>"LLC Agreement"),</u> by the transferee <u>("Transferee")</u> executing this Adoption Agreement. Initially capitalized terms not defined herein shall have the meanings assigned to such terms in the LLC Agreement. By the execution of this Adoption Agreement, the Transferee agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgment.** Transferee acknowledges that Transferee is acquiring [___] [Class A/Class B] Units, subject to the terms of the LLC Agreement. Transferee further acknowledges that until Transferee is admitted to the Company as a Member that Transferee has only the rights described in the LLC Agreement pe1taining to Transferees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Agreement.** Transferee (a) agrees that the [Class A/Class B] Units acquired by Transferee shall be bound by and subject to the terms of the LLC Agreement and (b) hereby joins in, and agrees to be bound by, the LLC Agreement (including the Exhibits and Schedules) with the same force and effect as if the Transferee were originally a party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Notice.** Any notice required by the LLC Agreement shall be given to Transferee at the address listed below Transferee's signature below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Joinder.** The spouse of the undersigned Transferee, if applicable, executes this Adoption Agreement to acknowledge that he/she is fully aware of, understands, and consents, for himself/herself and his/her heirs, assigns, and legal representatives, to the terms of the LLC Agreement, as amended from time to time in accordance with its terms, and its binding effect upon any community property interest or marital settlement awards he/she may now or hereafter own or receive, and agrees that the termination of his/her marital relationship with such Transferee for any reason shall not have the effect of removing any Unit in the Company subject to the LLC Agreement from the coverage thereof and that his/her awareness, understanding, consent, and agreement is evidenced by his/her signature below.

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| |
|:---|
| TRANSFEREE: |
| By: |
| Name: |
| <u>Information for Notices:</u> |
| Email: |

---

Exhibit A - 1

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**<u>Exhibit B</u>**

**Project Budget**

[*Attached*]

[\*\*\*]

Exhibit B - 1

## Exhibit 10.14

**Exhibit 10.14**

**Execution Version**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**SECOND AMENDED AND RESTATED**

**LIMITED LIABILITY COMPANY AGREEMENT**

**OF**

**CAPE PHASE 1 INTERMEDIATE HOLDCO, LLC**

**a Delaware limited liability company**

**Dated as of February 6, 2026**

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| | | <u>Page</u> |
| ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 2 |
| Section 1.01. | Definitions | 2 |
| Section 1.02. | Construction | 15 |
| ARTICLE II ORGANIZATION | ARTICLE II ORGANIZATION | 16 |
| Section 2.01. | Formation | 16 |
| Section 2.02. | Name | 16 |
| Section 2.03. | Registered Office; Registered Agent | 16 |
| Section 2.04. | Principal Office | 17 |
| Section 2.05. | Purpose; Powers | 17 |
| Section 2.06. | Fiscal Year | 17 |
| Section 2.07. | Filing of Certificates | 17 |
| Section 2.08. | Term | 17 |
| Section 2.09. | Amendment and Restatement | 17 |
| ARTICLE III MEMBERS; UNITS; CAPITAL CONTRIBUTIONS | ARTICLE III MEMBERS; UNITS; CAPITAL CONTRIBUTIONS | 17 |
| Section 3.01. | Members | 17 |
| Section 3.02. | Units | 18 |
| Section 3.03. | Capital Contributions; Preemptive Rights | 18 |
| Section 3.04. | Capital Accounts | 21 |
| Section 3.05. | Predecessor and Successor Members | 21 |
| Section 3.06. | Withdrawal or Return of Capital | 21 |
| Section 3.07. | No Other Contributions | 22 |
| Section 3.08. | Title to Company Property | 22 |
| Section 3.09. | Liability to Third Parties | 22 |
| Section 3.10. | Subsidiaries | 22 |
| Section 3.11. | Project Financing | 22 |
| ARTICLE IV DISPOSITIONS OF INTERESTS | ARTICLE IV DISPOSITIONS OF INTERESTS | 22 |
| Section 4.01. | Transfers of Units | 22 |
| Section 4.02. | Investment Exit Terms | 24 |
| Section 4.03. | Internal Restructuring | 25 |
| Section 4.04. | Non-Accredited Investors | 25 |
| Section 4.05. | Representations and Warranties | 25 |
| Section 4.06. | Securityholders Agreement | 26 |
| Section 4.07. | Buyout Rights | 27 |
| Section 4.08. | Royalty Payments | 28 |
| Section 4.09. | Third Flip Date | 29 |
| ARTICLE V DISTRIBUTIONS AND ALLOCATIONS | ARTICLE V DISTRIBUTIONS AND ALLOCATIONS | 29 |
| Section 5.01. | Distributions | 29 |
| Section 5.02. | Allocations | 29 |
| Section 5.03. | Taxes Paid on Behalf of a Member; Entity-Level Taxes | 33 |

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-i-

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**<u>**TABLE OF CONTENTS**</u>**

(Continued)

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| | | |
|:---|:---|:---|
| | | <u>Page</u> |
| ARTICLE VI MANAGEMENT | ARTICLE VI MANAGEMENT | 34 |
| Section 6.01. | Management | 34 |
| Section 6.02. | Board of Managers | 34 |
| Section 6.03. | Transactions with Affiliates | 38 |
| Section 6.04. | Officers | 39 |
| Section 6.05. | Waiver of Fiduciary Duties; Indemnification; Limitation of Liability | 39 |
| Section 6.06. | Company as Indemnitor of First Resort | 41 |
| Section 6.07. | Managers' and Officers' Insurance | 42 |
| Section 6.08. | Other Activities | 42 |
| Section 6.09. | No Recourse Against Nonparty Affiliates | 42 |
| Section 6.10. | Step-In Rights | 43 |
| Section 6.11. | Repayment of XRC Debt | 43 |
| ARTICLE VII RIGHTS OF MEMBERS; CONFIDENTIALITY; BOOKS AND RECORDS | ARTICLE VII RIGHTS OF MEMBERS; CONFIDENTIALITY; BOOKS AND RECORDS | 43 |
| Section 7.01. | Access to Information | 43 |
| Section 7.02. | Financial Reports | 43 |
| Section 7.03. | Confidentiality | 44 |
| Section 7.04. | Press Releases | 44 |
| Section 7.05. | Maintenance of Books and Records | 45 |
| Section 7.06. | Bank Accounts | 45 |
| Section 7.07. | Conflicts of Interest | 45 |
| ARTICLE VIII TAXES | ARTICLE VIII TAXES | 45 |
| Section 8.01. | Tax Returns | 45 |
| Section 8.02. | Tax Elections | 45 |
| Section 8.03. | Partnership Representative | 47 |
| Section 8.04. | Additional ITC Matters | 48 |
| ARTICLE IX DISSOLUTION, LIQUIDATION AND TERMINATION | ARTICLE IX DISSOLUTION, LIQUIDATION AND TERMINATION | 49 |
| Section 9.01. | Dissolution | 49 |
| Section 9.02. | Liquidation and Termination | 49 |
| Section 9.03. | Cancellation of Filing | 50 |
| ARTICLE X GENERAL TERMS | ARTICLE X GENERAL TERMS | 50 |
| Section 10.01. | Notices | 50 |
| Section 10.02. | Entire Agreement; Supersedure; Third-Party Beneficiaries | 51 |
| Section 10.03. | Effect of Waiver or Consent | 51 |
| Section 10.04. | Amendment or Modification | 51 |
| Section 10.05. | Survivability of Terms | 52 |
| Section 10.06. | Binding Effect | 52 |
| Section 10.07. | Governing Law; Severability | 52 |
| Section 10.08. | Dispute Resolution; Consent to Jurisdiction; Waiver of Jury Trial | 52 |
| Section 10.09. | Specific Performance | 53 |
| Section 10.10. | Offset | 54 |

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-ii-

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**<u>**TABLE OF CONTENTS**</u>**

(Continued)

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| | | |
|:---|:---|:---|
| | | <u>Page</u> |
| Section 10.11. | Further Assurances | 54 |
| Section 10.12. | Waiver of Certain Rights | 54 |
| Section 10.13. | Counterparts | 54 |
| Section 10.14. | Electronic Transmissions | 54 |

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-iii-

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**<u>Schedules & Exhibits</u>**

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| | |
|:---|:---|
| Schedule 1 | Members, Classes, Capital Contributions, and Units |
| Schedule 2 | Sharing Ratios |
| Exhibit A | Distributions |
| Exhibit B | Form of Adoption Agreement |
| Exhibit C | Project Budget |
| Exhibit D | Base Case Model |
| Exhibit E | Buyout Model Principles |

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-iv-

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**SECOND AMENDED AND RESTATED**

**LIMITED LIABILITY COMPANY AGREEMENT**

**OF**

**CAPE PHASE 1 INTERMEDIATE HOLDCO LLC**

This Second Amended and Restated Limited Liability Company Agreement (this "<u>Agreement</u>") of Cape Phase 1 Intermediate HoldCo LLC, a Delaware limited liability company (the "<u>Company</u>"), is made and entered into as of February 6, 2026 (the "<u>Effective Date</u>") by and among the undersigned Members (as defined below) and the Company, and each other Person that becomes a Member hereunder in accordance with the terms hereof. Capitalized terms used herein but not otherwise defined herein shall have the respective meanings given to them set forth in <u>Section 1.01</u>.

**RECITALS**

WHEREAS, the Company was formed by the filing of a certificate of formation with the Secretary of State of the State of Delaware on September 3, 2025;

WHEREAS, Cape HoldCo LLC, a Delaware limited liability company, as the initial sole member of the Company ("<u>Fervo</u>"), entered into that certain Limited Liability Company Agreement, dated as of September 11, 2025 (the "<u>Original Agreement</u>");

WHEREAS, on October 6, 2025, the Company issued to Centaurus Capital LP, a Texas limited partnership ("<u>Investor</u>"), 7,500 Class A Units of the Company, Investor was admitted to the Company as a Member, and Fervo and Investor entered into that certain Amended and Restated Limited Liability Company Agreement (the "<u>A&R Agreement</u>"), which amended and restated the Original Agreement in its entirety;

WHEREAS, pursuant to that certain Transfer Agreement, dated February 6, 2026 (the "<u>Assignment Agreement</u>"), by and between Investor and Keith Holst ("<u>Holst</u>"), Investor assigned 150 Class A Units of the Company to Holst;

WHEREAS, Holst is a Member of the Company in his individual capacity and is also professionally affiliated with Investor, and in such capacity has been designated by Investor to receive certain information; and

WHEREAS, Fervo, Investor and Holst desire to amend and restate the A&R Agreement to reflect the admission of Holst as a Member, their agreement as Members to the terms, provisions and conditions with respect to the regulation and management of the Company set forth herein, and provide for the relative rights and obligations of the Members with respect to the Company as hereinafter provided.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

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**ARTICLE I**

**DEFINITIONS**

Section 1.01.&nbsp;&nbsp;&nbsp;&nbsp;**Definitions**. As used in this Agreement, the following terms have the following meanings; *provided*, that capitalized terms used in this Agreement but not otherwise defined in this <u>Section 1.01</u> shall have the meanings given to them in <u>Exhibit A</u> hereto:

"<u>A&R Agreement</u>" has the meaning set forth in the recitals hereto.

"<u>Accredited Investor</u>" has the meaning set forth in Regulation D promulgated under the Securities Act.

"<u>Act</u>" means the Delaware Limited Liability Company Act.

"<u>Action</u>" has the meaning set forth in <u>Section 6.02(o)(i)(G)</u>.

"<u>Adjusted Base Case Model</u>" means the financial model determined at Final Completion in accordance with <u>Schedule 2</u>.

"<u>Adjusted Capital Account</u>" means, with respect to any Member, the balance, if any, in such Member's Capital Account as of the end of the relevant Fiscal Year or portion thereof, after giving effect to the following adjustments:

&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)&nbsp;&nbsp;&nbsp;&nbsp;add to such Capital Account any amounts which such Member is obligated to restore pursuant to this Agreement or is deemed to be obligated to restore to the Company pursuant to Treasury Regulations Section 1.704-1(b)(2)(ii)(c) or the penultimate sentence of each of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;subtract from such Capital Account such Member's share of the items described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5), and (6).

This definition is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

"<u>Adoption Agreement</u>" means an Adoption Agreement substantially in the form of <u>Exhibit B</u>.

"<u>Affiliate</u>" means, with respect to a Person, any other Person Controlling, Controlled by, or under common Control with the first Person. For purposes of this Agreement, (a) the Members and their respective Affiliates (other than the Company Group) shall be deemed not to be Affiliates of the Company Group and (b) each Company Group member shall be deemed not to be an Affiliate of any Member or its Affiliates (other than the Company Group).

"<u>Agreement</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Anti-Corruption Laws</u>" means any and all Laws concerning or relating to the prevention or prohibition of bribery or corruption, including, but not limited to, (i) the U.S. Foreign Corrupt Practices Act 1977, as amended, (ii) the UK Bribery Act 2010, as amended, and (iii) principles described in the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed in Paris on December 17, 1997, which entered into force on February 15, 1999, and such Convention's Commentaries.

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"<u>Anti-Money Laundering Laws</u>" means any Law relating to the prevention or prohibition of money laundering or terrorism financing, including the USA PATRIOT Act of 2001, as amended.

"<u>Assignment Agreement</u>" has the meaning set forth in the recitals hereto.

"<u>Available Cash</u>" means an amount equal to, (i) the sum of all unrestricted cash and cash equivalents of the Company Group from (a) the proceeds from any transfer of Utah PTCs by any member of the Company Group, (b) the proceeds from any transfer of PTCs by any member of the Company Group and (c) cash flows for operations, *less* (ii) the amount of any cash reserves that are necessary or appropriate in the reasonable discretion of the Board as determined in good faith (a) for debt service and the payment of all fees and expenses related to any indebtedness and/or preferred equity of the Company Group (including any distributions to Breakthrough Catalyst or payments to any other Project Financing), (b) to provide for the proper conduct of the business of the Company subsequent to such period, including reserves for the payment of costs and expenses, including capital costs and expenses, operating costs and expenses (including Makeup Capital Expenditures and other expenses related to scheduled maintenance on the Project), administrative costs and expenses and Taxes, (c) to perform its obligations under any contract to which any member of the Company Group is a party or by which it is bound or its assets are subject or (d) to comply with applicable Law.

"<u>Bankruptcy</u>" means, with respect to any Person, that (a) such Person (i) makes a general assignment for the benefit of creditors; (ii) files a voluntary bankruptcy petition; (iii) becomes the subject of an order for relief or is declared insolvent in any federal or state bankruptcy or insolvency proceedings; (iv) files a petition or answer seeking for such Person a reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any Law; (v) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against such Person in a proceeding of the type described in subclauses (i) through (iv) of this clause (a); or (vi) seeks, consents to, or acquiesces in the appointment of a trustee, receiver or liquidator of such Person or of all or any substantial part of such Person's properties; or (b) against such Person, a proceeding seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any Law has been commenced and one hundred twenty (120) days have expired without dismissal thereof or with respect to which, without such Person's consent or acquiescence, a trustee, receiver or liquidator of such Person or of all or any substantial part of such Person's properties has been appointed and ninety (90) days have expired without the appointment's having been vacated or stayed, or ninety (90) days have expired after the date of expiration of a stay, if the appointment has not previously been vacated.

"<u>Base Case Model</u>" means the financial model attached as <u>Exhibit D</u> to this Agreement.

"<u>Blocker</u>" has the meaning set forth in <u>Section 8.04(a)</u>.

"<u>Board</u>" has the meaning set forth in <u>Section 6.01</u>.

"<u>Breakthrough Catalyst</u>" means Granite Energy InvestCo, LLC and its Affiliates.

"<u>Business Day</u>" means any day other than a Saturday, Sunday, or legal holiday on which banks in New York, New York or Houston, Texas are authorized or obligated by Law to close.

"<u>Buyout Model</u>" has the meaning set forth in <u>Section 4.07(b)</u>.

"<u>Buyout Notice</u>" has the meaning set forth in <u>Section 4.07(a)</u>.

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"<u>Buyout Price</u>" means an (A) amount equal to the net present value as of the date of the COC Closing of projected distributions to the Class A Members between the COC Closing and the projected Third Flip Date as set forth in the Buyout Model, *plus* (B) in the event the Company has exercised the Call Right, any tax liability imposed on the Class A Members as a result of the recapture of ITCs claimed by the Company pursuant to Section 50 of the Code and Treasury Regulations Section 1.47-6(a)(2) solely as a result of the Buyout Transaction; *provided*, that, if the Company exercises its Call Right, then the component of the Buyout Price calculated under clause (A) shall not be less than the Minimum Call Price. For the avoidance of doubt, if the Class A Members exercise their Put Right, then the Minimum Call Price will not be applicable.

"<u>Buyout Rights</u>" has the meaning set forth in <u>Section 4.07(a)</u>.

"<u>Buyout Transaction</u>" has the meaning set forth in <u>Section 4.07(e)</u>.

"<u>Call Right</u>" has the meaning set forth in <u>Section 4.07(a)</u>.

"<u>Cape Phase 1 WellCo</u>" means Phase 1 WellCo, LLC, a Delaware limited liability company.

"<u>Capital Account</u>" means an account established and maintained for each Member on the Company's books and records in compliance with Treasury Regulations Sections 1.704-1(b)(2)(iv) and 1.704-2, as amended, and <u>Section 3.04</u>.

"<u>Capital Call</u>" has the meaning set forth in <u>Section 3.03(b)(ii)</u>.

"<u>Capital Contribution</u>" means the amount of cash and property (based on the Fair Market Value thereof, net of any liabilities assumed or taken subject to by the Company) contributed or deemed contributed to the Company by a Member pursuant to this Agreement.

"<u>Certificate</u>" has the meaning set forth in <u>Section 2.01</u>.

"<u>CGS 3</u>" means Cape Generating Station 3 LLC, a Delaware limited liability company.

"<u>CGS 5</u>" means Cape Generating Station 5 LLC, a Delaware limited liability company.

"<u>Class A Capital Contributions</u>" means, for any Class A Unit at any time, the sum of the Capital Contributions attributable to the acquisition of such Class A Unit.

"<u>Class A Members</u>" means any Member owning Class A Units, in such capacity.

"<u>Class A Shortfall</u>" means the amount by which the cumulative amount of cash actually distributed to the Class A Members by the Company from the Effective Date through the end of the Fiscal Year in question is less than the cash that the Adjusted Base Case Model projected the Class A Members to have received through the end of such Fiscal Year; *provided that*, for the avoidance of doubt, the Class A Shortfall shall not include or be increased in respect of any amounts attributable to any Tax liability of the Class A Members (or their respective beneficial owners) resulting from their investment in the Company, including any Tax liabilities imposed on the Class A Members or their respective beneficial owners (and not the Company) arising as a result of the recapture of ITCs or any loss or reduction of, or a limitation imposed on, any losses or deductions allocated by the Company to the Class A Members.

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"<u>Class A Units</u>" means the Class A Units issued to those Persons listed as Class A Members on <u>Schedule 1</u> as of the Effective Date and any other Units issued after the Effective Date and designated by the Board as Class A Units.

"<u>Class B Member</u>" means any Member owning Class B Units, in such capacity.

"<u>Class B Units</u>" means the Class B Units issued to those Persons listed as Class B Members on <u>Schedule 1</u> as of the Effective Date and any other Units issued after the Effective Date and designated by the Board as Class B Units.

"<u>COC Closing</u>" has the meaning set forth in <u>Section 4.07(a)</u>.

"<u>COC Transaction</u>" has the meaning set forth in <u>Section 4.07(a)</u>.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time. All references herein to sections of the Code shall include any corresponding provision or provisions of succeeding Law.

"<u>Committee</u>" has the meaning set forth in <u>Section 6.02(n)</u>.

"<u>Company</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Company Group</u>" means the Company, the Project Company, Cape Phase 1 WellCo and any other Subsidiary of the Company from time to time.

"<u>Company Minimum Gain</u>" has the meaning set forth in Treasury Regulations Sections 1.704-2(b)(2) and 1.704-2(d)(1) for the phrase "partnership minimum gain."

"<u>Competitor</u>" means a Person engaged, directly or indirectly (including through any partnership, limited liability company, corporation, joint venture or similar arrangement (whether now existing or formed hereafter)), in a business that utilizes enhanced geothermal system technology or techniques in connection with the development, construction or operation of electric generation facilities.

"<u>Contribution Value</u>" means the Fair Market Value of a Company asset contributed (for U.S. federal and applicable state and local income tax purposes) by a Member to the Company (net of liabilities secured by such contributed asset that the Company is treated as assuming or taking subject to).

"<u>Control</u>" as to any Entity means (a) the possession, directly or indirectly, through one or more intermediaries, of the right to more than 50% of the distributions therefrom (including liquidating distributions) or (b) the power or authority, directly or indirectly, through one or more intermediaries, through ownership of voting securities, by contract, or otherwise, to direct the management, activities or policies of such Entity. For the avoidance of doubt, a change of Control of the Company will be deemed to occur upon (among other occurrences) Fervo and its Affiliates' loss of the right to appoint and/or control the appointment of at least a majority of the Managers on the Board other than pursuant to <u>Section 3.03(c)</u> or <u>Section 6.10</u>.

"<u>Default</u>" has the meaning set forth in <u>Section 3.03(c)</u>.

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"<u>Default Rate</u>" means a rate per annum equal to the lesser of (a) the sum of (i) the prime rate published in *The Wall Street Journal, plus* five (5) percentage points per annum and (b) the maximum rate permitted by Law.

"<u>Depreciation</u>" means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for such Fiscal Year or other period, except that (a) with respect to any property the Gross Asset Value of which differs from its adjusted tax basis for federal income tax purposes and which difference is being eliminated by use of the "remedial allocation method" pursuant to Treasury Regulations Section 1.704-3(d), Depreciation for such Fiscal Year or other period will be the amount of book basis recovered for such Fiscal Year or other period under the rules prescribed by Treasury Regulations Section 1.704-3(d)(2) and (b) with respect to any other property the Gross Asset Value of which differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year or other period, Depreciation for such Fiscal Year or other period will be an amount that bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year or other period bears to such beginning adjusted tax basis. Notwithstanding the foregoing, if the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year or other period is zero, then, for the purposes of clause (b) above, Depreciation will be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Board.

"<u>Designated Engineer</u>" means Black & Veatch or, if Black &Veatch has a conflict of interest, a business relationship with the Class A Members, the Class B Member, or any of their Affiliates, or if the Members otherwise determine to select a different firm, such other experienced independent engineer that is mutually selected by the Members.

"<u>Designated Firm</u>" means Ernst & Young LLP or, if Ernst & Young LLP has a conflict of interest, a business relationship with the Class A Members, the Class B Member, or any of their Affiliates, or if the Members otherwise determine to select a different firm, such other nationally recognized valuation firm that is mutually selected by the Members.

"<u>Designated Individual</u>" has the meaning set forth in <u>Section 8.03(a)</u>.

"<u>Dispute</u>" has the meaning set forth in <u>Section 10.08(a)</u>.

"<u>Dispute Notice</u>" has the meaning set forth in <u>Section 4.07(c)</u>.

"<u>Effective Date</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Eligible Purchaser</u>" means any Member that certifies to the Board's reasonable satisfaction that such Member is an Accredited Investor.

"<u>Eligible Purchaser Persons</u>" has the meaning set forth in <u>Section 3.03(c)(iv)</u>.

"<u>Enforceability Exceptions</u>" has the meaning set forth in <u>Section 4.05(c)</u>.

"<u>Entity</u>" means any corporation, limited liability company, general partnership, limited partnership, venture, trust, business trust, plan, unincorporated association, estate, or other entity.

"<u>Escalante</u>" means Escalante Desert Resources LLC, a Delaware limited liability company.

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"<u>Escalante Sale</u>" has the meaning set forth in <u>Section 4.07(a)</u>.

"<u>Excluded Entities</u>" has the meaning set forth in <u>Section 7.03</u>.

"<u>Exclusion</u>" has the meaning set forth in <u>Section 7.07</u>.

"<u>Export Control Laws</u>" means any Law governing the export or transfer of goods, technology, software, technical data or defense services, including (a) the U.S. Export Administration Act, (b) U.S. Export Administration Regulations (15 C.F.R. § 730 et seq.), U.S. Arms Export Control Act, and the U.S. International Traffic in Arms Regulations (22 C.F.R. § 120 et seq.), and (c) Laws governing the importation of goods, including Laws administered by U.S. Customs and Border Protection.

"<u>Fair Market Value</u>" means, with respect to an item at any time, the value (expressed in U.S. dollars) as reasonably determined by the Board in good faith that would be obtained at such time in a sale of such item to an unaffiliated buyer on arms'-length terms.

"<u>Fervo</u>" has the meaning set forth in the recitals hereto.

"<u>Fervo Construction Capital Commitment</u>" has the meaning set forth in <u>Section</u> <u>3.03(b)(i)</u>.

"<u>Fervo Maintenance Capital Commitment</u>" has the meaning set forth in <u>Section</u> <u>3.03(b)(i)</u>.

"<u>Final Buyout Price</u>" has the meaning set forth in <u>Section 4.07(e)</u>.

"<u>Final Completion</u>" means the later to occur of the Commercial Operation Date (as that term is defined in the SCE PPA) and the Commercial Operation Date (as that term is defined in the Shell PPA).

"<u>Fiscal Year</u>" has the meaning set forth in <u>Section 2.06</u>.

"<u>GAAP</u>" means United States generally accepted accounting principles.

"<u>Governmental Authority</u>" means any (a) national, federal, provincial, territorial, state, regional, municipal, local, or other government, (b) governmental or public department, court, tribunal, arbitral body, statutory body, commission, board, bureau, or agency, (c) self-regulatory organization, regulatory authority, administrative tribunal, or authority, (d) subdivision, agent, commission, board, or authority of any of the foregoing or (e) quasi-governmental or private body exercising any regulatory, expropriation, or Taxing authority under or for the account of any of the foregoing.

"<u>Gross Asset Value</u>" means, with respect to any asset, the asset's adjusted basis for federal income tax purposes, except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The initial Gross Asset Value of any asset contributed (or deemed contributed) by a Member to the Company is the gross Fair Market Value of such asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Gross Asset Value of all Company assets may be adjusted to equal their respective gross Fair Market Values (taking Code Section 7701(g) into account), as determined by the Board using such reasonable method of valuation as it may adopt, as of immediately prior to (or immediately after, in the case of the exercise of a non-compensatory option described below) the occurrence of

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any event described in clauses (i) through (iv) below (and at such other times as the Board may determine to be necessary or advisable to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2) and taking into account the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)(f):

&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)&nbsp;&nbsp;&nbsp;&nbsp;the acquisition of additional Units in the Company by a new or existing Member in exchange for more than a *de minimis* Capital Contribution, if the Board determines that such adjustment is necessary or appropriate to reflect the relative interests of the Members in 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)&nbsp;&nbsp;&nbsp;&nbsp;the distribution by the Company to a Member of more than a *de minimis* amount of Company assets as consideration for Units in the Company, if the Board determines that such adjustment is necessary or appropriate to reflect the relative interests of the Members in 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the Company's liquidation or dissolution within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g); 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)&nbsp;&nbsp;&nbsp;&nbsp;the grant of an interest in the Company (other than a *de minimis* interest) as consideration for the provision of services to or for the Company's benefit by an existing Member acting in his capacity as a Member, or by a new Member acting in his capacity as a Member or in anticipation of becoming a Member, if the Board determines that such adjustment is necessary or appropriate to reflect the relative interests of the Members in the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Gross Asset Value of any Company asset distributed to a Member shall be adjusted to equal the gross Fair Market Value of such asset (taking Code Section 7701(g) into account) on the date of distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Gross Asset Values of Company assets will be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 732(d), 734(b) or 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m), except that Gross Asset Values shall not be adjusted pursuant to this clause (d) to the extent that an adjustment pursuant to clause (b) above is made in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (d); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;If the Gross Asset Value of a Company asset has been determined or adjusted pursuant to clause (a), (b), or (d) above, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect such asset for purposes of computing Capital Account balances.

"<u>Gross Liability Value</u>" means, with respect to any Company liability described in Treasury Regulations Section 1.752-7(b)(3)(i), and subject to the provisions of Treasury Regulations Section 1.752-7(c), the amount of cash that a willing assignor would pay to a willing assignee to assume such liability in an arms'-length transaction, as determined by the Board. The Gross Liability Value of each such Company liability described in Treasury Regulations Section 1.752-7(b)(3)(i) shall be adjusted at such times as provided in this Agreement for an adjustment to Gross Asset Values.

"<u>Holst</u>" has the meaning set forth in the recitals hereto.

"<u>Holst Maintenance Capital Commitment</u>" has the meaning set forth in <u>Section</u> <u>3.03(b)(i)</u>.

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"<u>Indemnified Losses</u>" has the meaning set forth in <u>Section 6.05(c)</u>.

"<u>Indemnitee</u>" has the meaning set forth in <u>Section 6.05(c)</u>.

"<u>Initial Capital Contributions</u>" has the meaning set forth in <u>Section 3.03(a)</u>.

"<u>Internal Restructuring</u>" means, with respect to the Company Group, any re-formation, conversion, transfer of assets, Transfer by Members of their Units, merger, incorporation, liquidation, recapitalization, reorganization, contribution, or exchange of Units into other equity interests or other transaction undertaken (a) in a manner that does not result in any adverse change to the relative economic interests of any Member in the Company's assets, (b) in connection with a Public Offering in accordance with this Agreement, or (c) as the Board determines, acting reasonably and in good faith, appropriate to comply with changes in Law; provided, in each case, the Class A Members are not disproportionately affected compared to the Class B Members.

"<u>Investment Exit</u>" means (a) any event or transaction resulting in the liquidation of all or substantially all of the value of the assets of the Company Group (other than pursuant to an Internal Restructuring), whether pursuant to (i) a sale of assets, (ii) a merger, consolidation, tender offer or other business combination, (iii) a sale of Units, or (iv) any other transaction similar to the foregoing or (b) a Public Offering.

"<u>Investor</u>" has the meaning set forth in the recitals hereto.

"<u>Investor Maintenance Capital Commitment</u>" has the meaning set forth in <u>Section</u> <u>3.03(b)(i)</u>.

"<u>Investor Subscription Agreement</u>" means that certain Subscription Agreement, dated as of October 3, 2025, by and between Investor and the Company.

"<u>IPO</u>" means Topco's first underwritten public offering of its common stock under the Securities Act.

"<u>IRS</u>" means the Internal Revenue Service and any successor Governmental Authority.

"<u>ITC</u>" means the investment tax credits provided for under Section 48 of the Code.

"<u>ITC Recapture Period</u>" means the five full years following the date that the assets of Cape Phase 1 WellCo are placed in service.

"<u>Law</u>" means (a) all applicable laws, regulations, statutes, codes, rules, Permits, licenses, certifications, decrees, or standards imposed by any Governmental Authority and (b) all applicable orders, injunctions, judgments, decrees, rulings, writs, assessments, awards, subpoenas, verdicts, settlements, or findings from any Governmental Authority.

"<u>Makeup Capital Expenditures</u>" means capital expenditures incurred in connection with drilling and completing makeup wells and connecting such makeup wells to ORCs and/or any related surface activities.

"<u>Manager</u>" has the meaning set forth in <u>Section 6.01</u>.

"<u>Member</u>" means any Person owning Units as permitted under this Agreement.

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"<u>Member Minimum Gain</u>" means an amount, with respect to each Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulations Section 1.704-2(i) with respect to "partner nonrecourse debt minimum gain."

"<u>Member Nonrecourse Debt</u>" has the meaning set forth in Treasury Regulations Section 1.704-2(b)(4) for the phrase "partner nonrecourse debt."

"<u>Member Nonrecourse Deductions</u>" has the meaning set forth in Treasury Regulations Section 1.704-2(i) for the phrase "partner nonrecourse deductions."

"<u>Membership Interest</u>" means with respect to any Member at any time, the entire equity interest (or "limited liability company interest" as that term is used in the Act) of such Member in the Company and all rights and liabilities associated therewith, which shall be represented by such Member's Units.

"<u>Minimum Call Price</u>" means the sum of (A) the positive difference, if any, between (i) the total aggregate amount of projected distributions to the Class A Members during the period commencing on the projected date (as set forth in the Adjusted Base Case Model) of Final Completion and ending on the COC Closing, as set forth in the Adjusted Base Case Model, *minus* (ii) the total aggregate amount of distributions, if any, made in respect of the Class A Units during such period; *plus* (B) the present value of distributions that the Adjusted Base Case Model projects would be made in respect of the Class A Units after the period described in clause (A)(i) and through the fifteenth (15<sup>th</sup>) anniversary of Final Completion; *provided that*, for the avoidance of doubt, the Minimum Call Price shall not include or be increased in respect of any amounts attributable to any Tax liability of the Class A Members (or their respective beneficial owners) resulting from their investment in the Company, including any Tax liabilities imposed on the Class A Members or their respective beneficial owners (and not the Company) arising as a result of the recapture of ITCs or any loss or reduction of, or a limitation imposed on, any losses or deductions allocated by the Company to the Class A Members.

"<u>Non-Contributing Member</u>" has the meaning set forth in <u>Section 3.03(c)</u>.

"<u>Nonrecourse Deductions</u>" has the meaning set forth in Treasury Regulations Sections 1.704-2(b)(1) and 1.704-2(c).

"<u>Nonrecourse Liability</u>" has the meaning set forth in Treasury Regulations Sections 1.704-2(b)(3) and 1.752-1(a)(2).

"<u>Original Agreement</u>" has the meaning set forth in the recitals hereto.

"<u>Other Indemnitor</u>" has the meaning set forth in <u>Section 6.06(a)</u>.

"<u>Other Material Project Agreements</u>" means (a) the Construction Services Agreement, dated as of October 4, 2024, by and between CGS 3 and Industrial Builders, Inc., an Idaho corporation, (b) the Contract for the Sale of Turboden Products, dated as of February 27, 2024, by and among CGS 1, CGS 3 and Turboden S.p.A., (c) the LGIA, (d) the Long-Term Point-to-Point Transmission Service Agreement, dated as of June 12, 2024, by and between Milford Gen Lead, LLC and Cape TransCo, (e) the Engineering, Procurement and Construction Agreement, dated as of December 16, 2024, by and between Expanse Electrical Company, LLC and Cape TransCo, (f) the XRC Loan Agreement

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and (g) the Operation and Maintenance Agreement, dated as of May 28, 2025, by and among FEC Operations, LLC, a Delaware limited liability company, CGS 1, CGS 2, CGS 3, CGS 4 and CGS 5, and Cape TransCo, in each case, as amended, supplemented or otherwise modified from time to time.

"<u>Over-Allotment Amount</u>" has the meaning set forth in <u>Section 3.03(c)(ii)</u>.

"<u>Partially Adjusted Capital Account</u>" means, with respect to each Fiscal Year or other period and with respect to each Person who was a Member during such Fiscal Year or other period, the Capital Account balance of such Person at the beginning of such Fiscal Year or other period, adjusted as set forth in the definition of Capital Account for all contributions and distributions during such Fiscal Year or other period, and after all special allocations pursuant to <u>Section 5.02(a)(ii)</u> made to such Person for such Fiscal Year or other period, but before giving effect to any allocations of Profits or Losses (or items thereof).

"<u>Partnership Representative</u>" means the partnership representative of the Company within the meaning of Code Section 6223(a) (and any similar provision of state, local or foreign law).

"<u>Permit</u>" has the meaning set forth in the Investor Subscription Agreement.

"<u>Permitted Transfer</u>" means, with respect to any Member, any Transfer of Units by such Member to a Permitted Transferee.

"<u>Permitted Transferee</u>" means, with respect to (a) a Member who is an individual, (i) a trust for estate planning purposes solely for the benefit of a Member or such Member's Relatives of which the Transferring Member is the trustee or (ii) an Entity that is wholly owned by such Member or such Member's Relatives or trusts for the sole benefit of such Member's Relatives and Controlled (through voting rights) by such Transferring Member, (b) any Member which is an Entity, (i) any Person which is an Affiliate of such Member and (ii) any existing lender (or refinancing lender thereof) to such Member who takes a pledge of some or all of such Member's Units for collateral security purposes, (c) Fervo, any third party transferee(s) so long as Fervo and its Affiliates hold more than 50% of the Class B Units as of immediately following such transfer and such Transfer does not result in a change of Control of Fervo, and (d) Investor after the expiration of the ITC Recapture Period, the Laura and John Arnold Foundation, any other not-for-profit Entities or foundations established by Laura Arnold and/or John D. Arnold, or any public charity or public charities that receive other assets of Investor and/or the Laura and John Arnold Foundation.

"<u>Person</u>" means any natural person or Entity.

"<u>Potential COC Notice</u>" has the meaning set forth in <u>Section 4.07(a)</u>.

"<u>PPA</u>" means, individually or collectively, (a) the Midterm Reliability Energy Resource Purchase and Sale Agreement, dated as of October 30, 2023, by and between Southern California Edison Company, a California corporation, and CGS 3, as amended by Amendment No. 1, dated as of January 9, 2025 and as may be further amended, supplemented or otherwise modified from time to time (the "<u>SCE PPA</u>") and (b) the Renewable Power Purchase Agreement, dated as of April 1, 2025, by and between CGS 5 and Shell Energy North America (US), L.P., a Delaware limited partnership (the "<u>Shell PPA</u>").

"<u>Preemptive Notice</u>" has the meaning set forth in <u>Section 3.03(c)(i)</u>.

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"<u>Pro Rata Share</u>" has the meaning set forth in <u>Section 3.03(c)(ii)</u>.

"<u>Profits</u>" and "<u>Losses</u>" means, respectively, for each Fiscal Year or other period, as determined in accordance with the method of accounting followed by the Company for U.S. federal income tax purposes, an amount equal to the Company's Taxable income or loss for such year or period determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, deduction, or credit required to be stated separately pursuant to Code Section 703(a)(1) will be included in Taxable income or loss), with the following adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any Company income that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this definition will increase the amount of such income or decrease the amount of such loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any Company expenditure described in Code Section 705(a)(2)(B) or treated as a Code Section 705(a)(2)(B) expenditure pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses pursuant to this definition, will decrease the amount of such income or increase the amount of such loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;gain or loss resulting from any disposition of Company assets where such gain or loss is recognized for federal income tax purposes will be computed by reference to the Gross Asset Value of the Company assets disposed of, notwithstanding that the adjusted tax basis of such Company assets differs from its Gross Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;in lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such income or loss, Depreciation will be taken into account for such Fiscal Year or other period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;if the Gross Asset Value of any Company asset is adjusted in accordance with clause (b) or (c) of the definition of Gross Asset Value, the amount of such adjustment will be taken into account in the Fiscal Year of such adjustment as gain or loss from the disposition of such asset for purposes of computing Profits or Losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;if the Gross Liability Value of any Company asset described in Treasury Regulations Section 1.752-7(b)(3)(i) is adjusted as required by this Agreement, the amount of such adjustment will be treated as an item of loss (if the adjustment increases the Gross Liability Value of such Company liability) or an item of gain (if the adjustment decreases the Gross Liability Value of such Company liability) and will be taken into account for purposes of computing Profits or Losses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;notwithstanding any other term of this definition, any items that are specially allocated pursuant to <u>Section 5.02(b)</u> will not be taken into account in computing Profits or Losses. The amounts of the items of Company income, gain, loss, or deduction available to be specially allocated pursuant to <u>Section 5.02(b)</u> will be determined by applying rules analogous to those set forth in this definition.

"<u>Project</u>" means the approximately 97 MW Cape Phase I geothermal electric generation facility under development by the Project Company in Milford, Utah.

"<u>Project Budget</u>" means the capital budget covering the development (including permitting), design, construction, installation and commissioning of the Project through the date the Project achieves Final Completion, which is attached to this Agreement as <u>Exhibit C</u>.

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"<u>Project Company</u>" means Cape Phase I Holdco LLC, a Delaware limited liability company.

"<u>Project Company LLCA</u>" means the Amended and Restated Limited Liability Company Agreement of Cape Phase I Holdco, LLC, dated as of May 28, 2025, by and between the Project Company, Breakthrough Catalyst and Fervo, as amended or restated from time to time.

"<u>Project Financing</u>" has the meaning set forth in <u>Section 3.03(b)(v)</u>.

"<u>PTCs</u>" means the renewable energy production tax credits provided for pursuant to Section 45 of the Code.

"<u>Public Offering</u>" means any sale in a (a) firm underwritten public offering registered under the Securities Act of any class of equity securities of the Project Company (or any successor thereto), or (b) a two-step transaction in which any class of equity securities of the Project Company (or any successor thereto) is issued in a private placement effected pursuant to an exemption from the registration requirements of the Securities Act coupled with a subsequent public offering registered under the Securities Act of any class of equity securities of the Project Company (or any successor thereto).

"<u>Put Right</u>" has the meaning set forth in <u>Section 4.07(a)</u>.

"<u>Relatives</u>" means, with respect to any individual, such individual's spouse, children (including stepchildren and children by adoption), parents, and the lineal descendants of such individual's parents (including stepchildren and children by adoption).

"<u>Requesting Purchaser</u>" has the meaning set forth in <u>Section 3.03(c)(ii)</u>.

"<u>Restricted Party</u>" means any Person that (a) is designated on any Sanctions-related list of proscribed Persons, (b) is domiciled in or organized under the Laws of any country or territory that is the subject of country- or territory-wide Sanctions, (c) is owned (50% or greater) or controlled by or acting on behalf of, a Person or Persons described in clause (a) or clause (b) or (d) is otherwise the subject or target of Sanctions.

"<u>Revised Partnership Audit Rules</u>" has the meaning set forth in <u>Section 8.03(a)</u>.

"<u>Royalty Payments</u>" means cash royalty payments equal to $5.00 per MWh delivered under the then applicable power purchase agreements of the Project, payable only following Project Company's (or its successor in interest's) receipt of payment pursuant to such power purchase agreements.

"<u>Sale of the Company</u>" means either (a) a transaction or series of transactions in which a Person, or group of related Persons, acquires from the stockholders of Topco the shares representing more than fifty percent of the outstanding voting power of Topco outstanding as of immediately prior to such transaction or series of related transactions, or (b) a transaction that qualifies as a "Deemed Liquidation Event" as defined in the Amended and Restated Certificate of Incorporation of Topco, dated as of February 6, 2024.

"<u>Sanctions</u>" means those applicable trade, economic and financial sanctions Laws, regulations, embargoes, and restrictive measures (in each case having the force of Law) administered, enacted or enforced from time to time by (a) the United States (including the Department of the

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Treasury, Office of Foreign Assets Control), (b) the European Union and enforced by its member states, (c) the United Nations, (d) His Majesty's Treasury, or (e) other similar Governmental Authorities with regulatory authority over the Company Group, the Members or their respective operations from time to time.

"<u>SCE PPA</u>" has the meaning set forth in the definition of "PPA."

"<u>Securities Act</u>" means the Securities Act of 1933.

"<u>Shell PPA</u>" has the meaning set forth in the definition of "PPA."

"<u>Step-In Event</u>" means (a) Shell or SCE has a right to terminate the Shell PPA or SCE PPA, respectively, (b) any Bankruptcy of Topco, or (c) if (i) the Project's production after Final Completion continuously falls below the thresholds required by any PPA for a period of more than one year and (ii) the Company Group or Topco fail to finalize a credible remediation plan to address such production decline, as determined by the Investor in its sole discretion.

"<u>Subsidiary</u>" means any Entity of which (a) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more Subsidiaries, or a combination thereof, or (b) if a limited liability company, partnership, association, or other business entity (other than a corporation), a majority of membership, partnership, or other similar ownership interest thereof or the power to elect or appoint a majority of the managers or governing body thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more Subsidiaries, or a combination thereof.

"<u>Target Capital Accounts</u>" means, with respect to each Fiscal Year or other period and with respect to each Person who was a Member during such Fiscal Year or other period, the amount (which may be either a positive or a deficit balance) equal to the difference between (a) the amount of the hypothetical distribution (if any) that such Person would receive if, on the last day of such Fiscal Year or other period, (i) all Company assets, including cash, were sold for cash equal to their Gross Asset Values, taking into account any adjustments thereto for such Fiscal Year or other period, (ii) all Company liabilities were satisfied in cash according to their terms (limited, with respect to each Nonrecourse Liability or Member Nonrecourse Debt, to the Gross Asset Values of the assets securing such liability), and (iii) the net proceeds thereof (after satisfaction of such liabilities) were distributed in full pursuant to <u>Section 9.02(c)(iii)</u> and, if applicable, <u>Section 4.08</u> and (b) the sum of (i) the amount, if any, without duplication, that such Person would be obligated to contribute to the Company's capital pursuant to this Agreement, if applicable, computed immediately after the hypothetical sale described in clause (a) above, (ii) such Person's share of Company Minimum Gain determined pursuant to Treasury Regulations Section 1.704 2(g), and (iii) such Person's share of Member Minimum Gain determined pursuant to Treasury Regulations Section 1.704 2(i)(5), clauses (ii) and (iii) to be computed immediately prior to the hypothetical sale described in clause (a) above.

"<u>Tax</u>" means any federal, state, local, or foreign income, gross receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, registration, value added, excise, natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, fines, penalties or additions to tax, or additional amounts in respect of the foregoing.

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"<u>Tax-Exempt Entity</u>" shall mean (i) an organization that is exempt from tax imposed by Chapter 1 of the Code; (ii) the United States or any possession thereof, any State (including the District of Columbia) or political subdivision thereof, any international organization (as defined in Section 7701(a)(18) of the Code), or any agency or instrumentality of the foregoing, (iii) any non-United States person or entity; (iv) any Indian tribal government described in Section 7701(a)(40) of the Code; (v) any "tax-exempt controlled entity" as defined in Section 168(h)(6)(F)(iii) of the Code (except to the extent a valid election under Section 168(h)(g)(F)(ii) of the Code has been made for such entity not to be treated as a "tax-exempt entity"); (vi) any successor organization as defined in Section 168(h)(2)(E)(iii) of the Code; or (vii) pass-through entity for U.S. federal income tax purposes whose direct or indirect owners are described in <u>clause (i)</u>, <u>(ii)</u>, <u>(iii)</u>, <u>(iv)</u>, <u>(v)</u> or <u>(vi)</u>.

"<u>Term Debt</u>" means with respect to the Company and each of its Subsidiaries, at any date and without duplication (a) all indebtedness of such Person for borrowed money (i) that is evidenced by bonds, debentures, notes, or other similar instruments, with a specific principal amount(s), (ii) that accrues interest at stated rates or pursuant to stated formulas, (iii) the proceeds of which are advanced on the date of issuance or in tranches, (iv) the proceeds of which are not subject to re-borrowing after repayment (i.e., not a revolving credit facility), and (v) with a specified maturity date of more than one year, (b) Project Financing, to the extent not repaid or refinanced with Term Debt upon Final Completion, (c) the financing(s) referenced in the definition of "Debt Recap," and/or (d) all obligations under guaranties by such Person in respect of obligations of the kind described in the immediately preceding clauses (a) through (c).

"<u>Topco</u>" means Fervo Energy Company, a Delaware corporation.

"<u>Transfer</u>" means, with respect to a Person, a direct or indirect disposition, sale, assignment, transfer, gift, surrender for cancellation, exchange, pledge, or grant of a security interest, in each case whether voluntary or involuntary, including the issuance of equity interests in any such Person that is an Entity.

"<u>Treasury Regulations</u>" means temporary and final Treasury Regulations promulgated under the Code.

"<u>Units</u>" means units representing the Membership Interests in the Company, including the Class A Units, the Class B Units, and any other class or series of units or other equity securities of the Company issued in accordance with the terms of this Agreement after the Effective Date.

"<u>Utah PTCs</u>" means any corporate, franchise or income production tax credit available under the applicable Laws relating to Taxes in the State of Utah.

"<u>XRC Loan Agreement</u>" means, collectively, the Loan Agreement, dated as of August 13, 2024, by and among CGS 3 and CGS 5, as borrowers, and XRL ALC, LLC, a Delaware limited liability company, as lender, and all other Loan Documents (as defined therein), together with any refinancing, replacement or extension thereof.

Section 1.02.&nbsp;&nbsp;&nbsp;&nbsp;**Construction**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Whenever the context requires, the gender of all words used in this Agreement includes the masculine, feminine, and neuter. If a term is defined as one part of speech (such as a noun), it shall have a corresponding meaning when used as another part of speech (such as a verb).

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If a term is not defined herein but is an accounting term, it shall have the meaning accorded it in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;References herein to: (i) any Law shall be deemed to also refer to all rules and regulations promulgated thereunder unless the context requires otherwise, (ii) any agreement, instrument or Law means such agreement, instrument, or Law as from time to time amended, modified or supplemented, including, in the case of agreements or instruments, by waiver or consent and, in the case of Law, by succession of comparable successor Law, (iii) the employment, death, disability, spouse, Relative, heir, legatee, or Permitted Transferee of a Member that received its Units pursuant to a Permitted Transfer shall be deemed to be references to the employment, death, disability, spouse, Relative, heir, legatee, or Permitted Transferee of the Person from whom or in respect of whom such Member received such Units, and (iv) a breach, default, other action, debt, or liability of a Member shall be deemed to include a breach, default, other action, debt, or liability by any Permitted Transferee that has received Units from such Member pursuant to a Permitted Transfer and a breach, default, other action, debt, or liability by any Person from whom or in respect of whom such Member received such Units pursuant to a Permitted Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise expressly specified: (i) all accounting determinations will be made in accordance with GAAP in effect from time to time, (ii) the words "includes" or "including" shall mean "including without limitation", (iii) all references to Articles and Sections refer to articles and sections of this Agreement, (iv) all references to Exhibits and Schedules are to exhibits and schedules attached hereto, each of which is made a part hereof for all purposes, (v) the word "or" shall not be applied in its exclusive sense, and (vi) requirements for the consent or approval of a Person shall require that such consent or approval be in writing and delivered in advance of the action, agreement, or matter that is consented to or approved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Each Member acknowledges that it and its attorneys and advisers have been given an equal opportunity to negotiate the terms of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party or any similar rule operating against the drafter of an agreement shall not be applicable to the construction or interpretation of this Agreement.

**ARTICLE II**

**ORGANIZATION**

Section 2.01.&nbsp;&nbsp;&nbsp;&nbsp;**Formation**. The Company was organized as a Delaware limited liability company by the filing of the Company's certificate of formation (the "<u>Certificate</u>") in the office of the Secretary of State of the State of Delaware pursuant to the Act on September 3, 2025. The rights, powers, duties, obligations, and liabilities of the Members shall be determined pursuant to the Act and this Agreement. To the extent that the rights, powers, duties, obligations, and liabilities of any Member are different by reason of any provision of this Agreement than they would be under the Act in the absence of such provision, this Agreement shall, to the extent permitted by the Act, control.

Section 2.02.&nbsp;&nbsp;&nbsp;&nbsp;**Name**. The Company's name is Cape Phase 1 Intermediate HoldCo, LLC. Company business will be conducted in such name or such other names that comply with Law as the Board may select from time to time.

Section 2.03.&nbsp;&nbsp;&nbsp;&nbsp;**Registered Office; Registered Agent**. The Company's registered office in the State of Delaware will be the initial registered office designated in the Certificate or such other

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office (which need not be a place of business of the Company) as the Board may designate from time to time in the manner provided by Law. The Company's registered agent in the State of Delaware will be the initial registered agent designated in the Certificate or such other Person or Persons as the Board may designate from time to time in the manner provided by Law.

Section 2.04.&nbsp;&nbsp;&nbsp;&nbsp;**Principal Office**. The Company's principal office will be at 910 Louisiana Street, Suite 4400, Houston, Texas 77002, or such other location (which need not be in the State of Delaware) as the Board may designate from time to time. The Company may have such other offices as the Board may determine appropriate.

Section 2.05.&nbsp;&nbsp;&nbsp;&nbsp;**Purpose; Powers**. The Company is organized for the purposes of (a) holding the equity interests in the Project Company and any other Subsidiary that may be formed from time to time after the Effective Date in accordance with this Agreement to carry out any other purpose of the Company described in this <u>Section 2.05</u>, (b) engaging through other members of the Company Group in the ownership, development, construction, financing, operation and maintenance of the Project and (c) engaging in any other activities directly or indirectly relating to the foregoing. The Company will have all powers permitted to be exercised by a limited liability company organized in the State of Delaware.

Section 2.06.&nbsp;&nbsp;&nbsp;&nbsp;**Fiscal Year**. The Company's fiscal year (the "<u>Fiscal Year</u>") for financial statement purposes will end on December 31 except as otherwise determined by the Board.

Section 2.07.&nbsp;&nbsp;&nbsp;&nbsp;**Filing of Certificates**. Each of the Managers is hereby designated as an "authorized person" within the meaning of the Act to have the authority to execute, deliver and file, or to cause the execution, delivery, and filing of, any amendments or restatements of the Certificate and any other certificates, notices, statements, or other instruments (and any amendments or restatements thereof) necessary or advisable for the Company's formation or operation in all jurisdictions where the Company may elect to do business.

Section 2.08.&nbsp;&nbsp;&nbsp;&nbsp;**Term**. The Company will continue in existence until terminated pursuant to this Agreement or the Act.

Section 2.09.&nbsp;&nbsp;&nbsp;&nbsp;**Amendment and Restatement**. The Members hereby amend and restate the A&R Agreement, which is replaced and superseded in its entirety by this Agreement.

**ARTICLE III**

**MEMBERS; UNITS; CAPITAL CONTRIBUTIONS**

Section 3.01.&nbsp;&nbsp;&nbsp;&nbsp;**Members**. The names, addresses, Capital Contributions and number and class of Units of the Members as of the Effective Date are set forth on <u>Schedule 1</u>. Additional Persons may be admitted as Members (a) upon fulfillment of the conditions set forth in <u>Section 4.01</u> or (b) upon issuance of Units to such Persons on such terms as determined by the Board (subject to <u>Section 3.02</u>, <u>Section 3.03(c)</u> and <u>Section 6.02(o)</u>) so long as the applicable Person has agreed to be bound by this Agreement by executing and delivering a counterpart signature page to this Agreement or an Adoption Agreement, as applicable. The Board is hereby authorized to amend <u>Schedule 1</u> to reflect any changes to information called for by <u>Schedule 1</u>; *provided*, *however*, that the failure by the Board to timely amend <u>Schedule 1</u> shall have no effect on the validity of any event necessitating such amendment. Unless admitted to the Company as a Member as provided in this Agreement, no Person (including an assignee of rights with respect to Units or a transferee of Units, whether voluntary, by

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operation of Law or otherwise) will be, or will be considered, a Member. The Company may elect to deal only with Persons admitted as Members as provided in this Agreement (including their duly authorized representatives). Any distribution made by the Company to a Person shown on the Company's records as a Member or to its legal representatives will relieve the Company of all liability to any other Person who may have an interest in such distribution by reason of any Transfer by such Member or for any other reason.

Section 3.02.&nbsp;&nbsp;&nbsp;&nbsp;**Units**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Member's Membership Interest in the Company will initially be represented by its Units and its Capital Account. Initially, there shall be two classes of Units, the Class A Units and the Class B Units. Except as otherwise required by Law or set forth in this Agreement, neither the Class A Units nor the Class B Units shall have any voting rights or confer the right to vote on matters related to the Company or otherwise. Subject to <u>Section 3.03(c)</u> and <u>Section 6.02(o)</u>, (i) the Company is hereby authorized to issue such number of additional Class A Units or Class B Units as the Board may determine from time to time and (ii) the Board may create additional series or classes of Units having such rights, powers and duties as determined by the Board, including through subdivision or by authorization of Units of such class or series. No Units shall be certificated except as otherwise determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Member and the Company hereby irrevocably elect that all Units, whether evidenced by a certificate or otherwise, shall be securities governed by Article 8 and all other provisions of the Uniform Commercial Code and, pursuant to Section 103(c) of the Uniform Commercial Code, such interests shall be "securities" for all purposes under such Article 8 and under all other provisions of the Uniform Commercial Code.

Section 3.03.&nbsp;&nbsp;&nbsp;&nbsp;**Capital Contributions; Preemptive Rights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Initial Capital Contributions</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)&nbsp;&nbsp;&nbsp;&nbsp;In exchange for making Capital Contributions on October 6, 2025 and after giving effect to the Assignment Agreement, each Member shall be deemed to have made Capital Contributions in the amount of the "Initial Capital Contribution" set forth opposite such Member's name on <u>Schedule 1</u> (the "<u>Initial Capital Contributions</u>") and shall own the Units set forth opposite such Member's name on <u>Schedule 1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsequent Capital Contributions</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)&nbsp;&nbsp;&nbsp;&nbsp;Fervo hereby agrees and commits to make Capital Contributions to the Company in accordance with this <u>Section 3.03(b)</u> to the extent necessary for the Project Company to achieve Final Completion; provided that Fervo shall not be required to make aggregate Capital Contributions pursuant to this sentence that exceed Fervo's "Construction Capital Commitment" set forth opposite its name on <u>Schedule</u> 1 (the "<u>Fervo Construction Capital Commitment</u>"). Following Final Completion, each of Investor, Holst and Fervo agrees to make additional Capital Contributions in accordance with this <u>Section 3.03(b)</u> in proportion to its Cash Sharing Ratio then in effect, to the extent such Capital Contributions are required to fund Makeup Capital Expenditures that are required pursuant to either PPA; provided that no Member shall be required to make aggregate Capital Contributions pursuant to this sentence that exceed the "Maintenance Capital Commitment" amount set forth opposite such

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Member's name on <u>Schedule 1</u> (such amount set forth opposite Fervo's name on <u>Schedule 1</u> being referred to as the "<u>Fervo Maintenance Capital Commitment</u>", such amount set forth opposite Investor's name on <u>Schedule 1</u> being referred to as the "<u>Investor Maintenance Capital Commitment</u>" and such amount set forth opposite Holst's name on <u>Schedule 1</u> being referred to as the "<u>Holst Maintenance Capital Commitment</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 3.03(b)(iii)</u>, the Board shall issue written capital call notices (each a "<u>Capital Call</u>") to Fervo, Investor and Holst for their respective Capital Contributions that are required pursuant to <u>Section 3.03(b)(i)</u>. Each Capital Call shall be provided to the respective Members at least 10 Business Days in advance of the required Capital Contribution and shall specify the respective amounts of the Members' required Capital Contributions, a reasonably detailed description of the Company's use thereof, and the Members' respective unfunded Fervo Construction Capital Commitment, Fervo Maintenance Capital Commitment, Investor Maintenance Capital Commitment and Holst Maintenance Capital Commitment immediately after such Capital Contributions.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in <u>Sections 3.03(b)(i)-(ii)</u>, no Member shall be required to make any Capital Contribution. The Board may call for voluntary Capital Contributions pursuant to this <u>Section 3.03(b)(iii)</u> on such terms and conditions determined by the Board and agreed by the Member or Members making such additional Capital Contributions. To call for any additional Capital Contributions pursuant to this <u>Section 3.03(b)(iii)</u>, the Board shall issue a written request to the applicable Member or Members setting forth (A) the aggregate amount of Capital Contributions required by the Company and the Subsidiaries, (B) the portion of such amount that may be contributed by such Member to the Company, (C) the purpose for which the funds are to be applied in such reasonable detail as may be reasonably requested by a Member and (D) the date on which payments of the Capital Contributions shall be made, which date shall not be less than 15 Business Days following the date such written request is made.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Member agrees that it shall make payments of the Capital Contributions that it is required to make pursuant to Capital Calls issued under <u>Section 3.03(b)(ii)</u>. Capital Contributions shall be made to the Company in immediately available funds or, subject to <u>Section 6.02(o)</u> and to the extent provided in the applicable Capital Call, in kind. All Capital Contributions received by the Company pursuant to this <u>Section 3.03(b)</u> shall be credited to the applicable Member's Capital Account as of the date each of its Capital Contributions are made. Upon receipt by the Company of a Capital Contribution in accordance with this <u>Section 3.03(b)</u>, the Company shall issue to the Member who made such Capital Contribution one Unit of the same class as those held by the Member making such Capital Contribution immediately after the Effective Date for each U.S. dollar so contributed.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Fervo Construction Capital Commitment shall be reduced by the committed principal amount (*less* any financing costs, fees or expenses that increase the Project Budget) of any limited recourse project finance indebtedness from a reputable third party lender obtained by any member of the Company Group after the Effective Date relating to the construction of the Project in accordance with this Agreement ("<u>Project Financing</u>"), solely to the extent the proceeds of such Project Financing (A) are for the purpose of funding amounts set forth in the Project Budget and (B) are drawn by the borrower pursuant to the terms thereof. Promptly following each draw-down of such Project Financing, the Board shall

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amend <u>Schedule 1</u> to reflect the corresponding reduction in the Fervo Construction Capital Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Capital Contribution Defaults</u>. If any Member fails to make a mandatory Capital Contribution that such Member is required to make pursuant to the terms of this Agreement (such Member, a "<u>Non-Contributing Member</u>"), and such failure continues for more than thirty (30) days, such Member shall be in default hereunder (such failure, a "<u>Default</u>"). During any period commencing at such time as a Member is a Non-Contributing Member and an uncured Default exists until such time as such Default is cured by the Non-Contributing Member's making of a payment to the Company in an amount equal to the amount of the applicable default Capital Contribution, plus interest accruing at the Default Rate:

&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)&nbsp;&nbsp;&nbsp;&nbsp;notwithstanding anything to the contrary in this Agreement, if Investor is the Non-Contributing Member, then the Class A Members' consent rights under <u>Section 6.02(o)</u> shall be suspended until the related Default is cured in accordance with this <u>Section 3.03(c)</u>; provided that if such Default is not cured by Investor within 20 Business Days of its occurrence, then such suspension of the Class A Members' consent rights under <u>Section 6.02(o)</u> shall become permanent;

&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)&nbsp;&nbsp;&nbsp;&nbsp;notwithstanding anything to the contrary in this Agreement, if the Class B Member is the Non-Contributing Member, then the Class B Member's rights to designate the Managers shall be suspended, and Investor shall have the right to remove and replace such Managers on the Board with Managers designated by Investor, in its sole discretion, until the related Default is cured in accordance with this <u>Section 3.03(c)</u>; provided that if such Default is not cured by the Class B Member within 20 Business Days of its occurrence, then the Class B Member's right to designate any Manager under <u>Section 6.02(a)</u> shall permanently terminate and all the Managers on the Board will thereafter be designated solely by Investor;

&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)&nbsp;&nbsp;&nbsp;&nbsp;notwithstanding anything to the contrary in this Agreement, if Holst is the Non-Contributing Member, then Investor shall be obligated, upon written notice from the Company, to cure a Default by Holst within 20 Business Days of receiving such notice from the Company; provided that if Investor fails to cure such Default by Holst within such 20 Business Day period, then Investor shall be treated as the Non-Contributing Member with respect to such Default and the provisions of <u>Section 3.03(c)(i)</u> shall apply. Any such amount funded by the Investor to cure a Default by Holst shall be treated hereunder as a Capital Contribution by the Investor;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the Non-Contributing Member shall not Transfer any of its Units or all or any of portion of its Membership Interest; 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;(v)&nbsp;&nbsp;&nbsp;&nbsp;if Investor or the Class B Member is not a Non-Contributing Member, Investor or the Class B Member, as applicable, may cause the Company to draw on any credit support provided by or on behalf of the Non-Contributing Member.

The rights of the Members (other than the Non-Contributing Member) set forth in this <u>Section 3.03(c)</u> shall be in addition to such other rights and remedies that may exist at Law, in equity or under Contract on account of such default.

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Section 3.04.&nbsp;&nbsp;&nbsp;&nbsp;**Capital Accounts**. Subject to compliance with Treasury Regulations Sections 1.704-1(b)(2)(iv) and 1.704-2, each Member's Capital Account balance shall initially equal the amount of cash and the Contribution Value of any other property contributed (or deemed contributed) by such Member to the Company; *provided*, *however*, that if a Member acquired its Unit by Transfer, then such Member's Capital Account balance shall initially equal the Capital Account balance of the Transferring Member that was attributable to the Units that are Transferred in accordance with this Agreement (other than by pledge of, or grant of a security interest in, such Units), as described in Treasury Regulations Section 1.704-1(b)(2)(iv)(l). Throughout the term of the Company, each Member's Capital Account shall be maintained in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;To each Member's Capital Account there will be added (i) the amount of cash and the Gross Asset Value of any other asset subsequently contributed or deemed contributed by such Member to the Company pursuant to this Agreement, (ii) such Member's allocable share of Profits and any items in the nature of income or gain that are specially allocated to such Member pursuant to <u>Section 5.02(a)</u> and <u>Section 5.02(b)</u> or other terms of this Agreement, (iii) the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member and (iv) any other item required to be credited for proper maintenance of Capital Accounts by Treasury Regulations under Code Section 704(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;From each Member's Capital Account there will be subtracted (i) the amount of cash and the Gross Asset Value of any other Company assets distributed to such Member pursuant to this Agreement, (ii) such Member's allocable share of Losses and any other items in the nature of expenses or losses that are specially allocated to such Member pursuant to <u>Section 5.02(a)</u> and <u>Section 5.02(b)</u> or other terms of this Agreement, (iii) liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the Company, (iv) an allocation of downward basis adjustment to such Member as described in Treasury Regulations Section 1.704-1(b)(2)(iv)(j) and (v) any other item required to be debited for proper maintenance of Capital Accounts by the Treasury Regulations under Code Section 704(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Determination of the amount of any liability for purposes of this <u>Section 3.04</u>, will take into account Code Section 752(c) and any other applicable provisions of the Code and Treasury Regulations.

The foregoing terms and the other terms of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2 and shall be interpreted and applied consistently therewith.

Section 3.05.&nbsp;&nbsp;&nbsp;&nbsp;**Predecessor and Successor Members**. For purposes of this Agreement: (a) the Capital Contributions of and distributions to a Member in respect of specified Units shall include the Capital Contributions of and distributions to a predecessor holder of such Units (which shall continue to be deemed made or distributed at the time made or distributed), and the Capital Contributions of and distributions to such predecessor Member shall not include such Capital Contributions and distributions, and (b) except as otherwise set forth in this Agreement, any Person admitted to the Company as a Member following a Transfer of Units shall succeed to all rights, duties and obligations of its Transferring Member with respect to such Units under this Agreement.

Section 3.06.&nbsp;&nbsp;&nbsp;&nbsp;**Withdrawal or Return of Capital**. Except as otherwise set forth in this Agreement or any other agreement between the Company or any of its Affiliates, on the one hand, and a Member or any of its Affiliates, on the other hand: (a) no Member is entitled to the return of or

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has the right to withdraw any part of its Capital Contribution from the Company prior to the Company's liquidation and dissolution pursuant to <u>Article IX</u>, (b) no Member is entitled to be paid interest in respect of either its Capital Account or its Capital Contributions, (c) any unreturned Capital Contribution is not a liability of the Company or of the other Members, (d) no Member is required to contribute or to lend any cash or property to the Company to enable the Company to return any other Member's Capital Contributions, and (e) no Member is required to restore any deficit balance in such Member's Capital Account.

Section 3.07.&nbsp;&nbsp;&nbsp;&nbsp;**No Other Contributions**. Except as otherwise set forth in this <u>Article III</u>, no Member will be permitted to make Capital Contributions to the Company without the approval of the Board or required to make Capital Contributions to the Company without the consent of such Member.

Section 3.08.&nbsp;&nbsp;&nbsp;&nbsp;**Title to Company Property**. All Company assets shall be deemed to be owned by the Company as an Entity, and no Member, individually, shall have any ownership of such property.

Section 3.09.&nbsp;&nbsp;&nbsp;&nbsp;**Liability to Third Parties**. No Member or Manager will have any personal liability for any of the Company's obligations or liabilities, whether such liabilities arise in contract, tort, or otherwise, except to the extent that any such liabilities or obligations are expressly assumed in writing by such Member or Manager.

Section 3.10.&nbsp;&nbsp;&nbsp;&nbsp;**Subsidiaries**. Unless otherwise approved by the Board and subject to <u>Section 6.02(o)</u>, each Subsidiary shall be wholly owned by the Company, managed, directly or indirectly, at the direction of the Board and otherwise subject to the terms, conditions, and agreements set forth in this Agreement.

Section 3.11.&nbsp;&nbsp;&nbsp;&nbsp;**Project Financing**. The Members shall, and shall cause their respective Affiliates to, reasonably cooperate with respect to Fervo's efforts to (a) determine the material terms on which the Company Group would be willing to procure or incur Project Financing, (b) identify one or more lenders to provide such Project Financing, (c) negotiate the terms and conditions of such Project Financing and all definitive documentation related thereto and (d) execute, and/or cause the Company Group to execute, as applicable, all such definitive documentation. The Board and the Class B Member shall provide Investor reasonably timely and detailed updates of the status of Project Financing and proposed Project Financing and terms thereof and shall reasonably consult with Investor regarding the proposed terms of any Project Financing. Notwithstanding anything to the contrary, the Class A Members shall not be required to provide any prospective lender with any financial or non-public information regarding such Class A Member or any of its Affiliates (other than an acknowledgement of its interest in the Company, the amount of its Capital Commitment, and the aggregate amount of its Capital Contributions) or to guarantee or provide other credit support with respect to any Project Financing or other indebtedness of any member of the Company Group.

**ARTICLE IV**

**DISPOSITIONS OF INTERESTS**

Section 4.01.&nbsp;&nbsp;&nbsp;&nbsp;**Transfers of Units**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. No Member shall Transfer any Units except in accordance with this <u>Article IV</u>. Any purported Transfer of Units in violation of the terms of this <u>Article IV</u> shall be null

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and void *ab initio*. Notwithstanding anything herein to the contrary other than and subject to <u>Section 4.01(c)</u>, in no event shall any of the following be deemed a Transfer of Units with respect to Fervo or any holder of Units which is an Affiliate of Fervo or Topco, or otherwise be restricted in any way by the terms of this Agreement: (i) any transfer or issuance of any equity or debt securities or rights of Topco, or (ii) any change of Control of Topco; *provided*, *however*, that, subject to <u>Section 6.02(o)</u>, no direct or indirect transfer of Units (including any transfer of equity interests in, or change of Control of, any Member or any of its Affiliates) shall be permitted without the prior written consent of all Managers if such transfer or change of Control would cause (with or without notice or lapse of time or both) a default or event of default under any PPA or in respect of the Project Financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Lock-Up</u>. Prior to the second anniversary of the date on which the Project achieves Final Completion, neither Fervo, Investor nor Holst shall Transfer any of its Units except to a Permitted Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Restrictions on Transfer</u>. No Transfer of Units shall be made (i) if such Transfer would violate the federal or state securities Laws or rules and regulations of the United States Securities and Exchange Commission, any state securities commission or any other Governmental Authority (and, if requested by the Board, the Transferring Member shall deliver to the Company an opinion of counsel, in form and substance reasonably satisfactory to the Company, to the effect that such Transfer is either exempt from the registration requirements of federal or state Securities Laws or that such registration requirements have been complied with); (ii) if such Transfer would violate any other applicable Law or cause any member of the Company Group to default on any of its obligations under any material contract to which it is a party (including all financing documents); (iii) if such Transfer would cause the Company to be treated as an association or "publicly traded partnership" treated as a corporation for U.S. federal income tax purposes or would make the Company ineligible for "safe harbor" treatment under Code Section 7704 and the Treasury Regulations promulgated thereunder; (iv) unless the Transferee (and if it is a disregarded entity for U.S. federal income tax purposes, both its regarded owner and the Transferee (if it were not disregarded)) is a United States person within the meaning of Code Section 7701(a)(30); (v) prior to the expiration of the ITC Recapture Period, if the Transferee is a Tax-Exempt Entity; and (vi) unless the Transferee thereof executes and delivers (together with such Person's spouse, if applicable) an Adoption Agreement and such other documents as the Board may reasonably request; *provided*, *however*, that notwithstanding any failure by such Person to execute an Adoption Agreement (whether such Transfer resulted by operation of Law or otherwise), such Transferee and such Units shall be subject to this Agreement in the same manner as when held by the Transferring Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Permitted Transfers</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)&nbsp;&nbsp;&nbsp;&nbsp;Subject to compliance with <u>Section 4.01(c)</u>, any Member may Transfer all or a portion of its Units to a Permitted Transferee of such Member, without the approval of any other Member or the Board, subject to the provisions of this <u>Section 4.01(d)</u>; *provided*, that such Permitted Transferee shall not be entitled to make any further Transfers in reliance upon this <u>Section 4.01(d)</u>, except for a Transfer of such acquired Units back to such original holder or to another Permitted Transferee of such original holder or pursuant to clause (d) of the definition of "Permitted Transferee." A Member (or its Permitted Transferee) shall provide prompt written notice to the Board following any Transfer pursuant to this <u>Section 4.01(d)</u>.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this <u>Section 4.01(d)</u>, a Member shall not Transfer any Units to a Permitted Transferee of such Member if such Transfer has as a purpose the avoidance of or is otherwise undertaken in contemplation of avoiding the restrictions on Transfers in this Agreement (it being understood that the purpose of this <u>Section 4.01(d)(ii)</u> is to prohibit the Transfer of Units to a Permitted Transferee followed by a change in the relationship between the transferor and the Permitted Transferee, or a change of Control of such transferor or Permitted Transferee, after the Transfer, in either case that was agreed to, planned, or otherwise contemplated at the time of such Transfer with the result and effect that the transferor has indirectly made a Transfer of Units by using a Permitted Transferee, which Transfer would not have been directly permitted under this <u>Section 4.01(d)</u> had such change in such relationship occurred prior to such 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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this <u>Article IV</u>, no Transfers of any Units shall be made to any Person (A) directly or indirectly engaged in any transaction or other business with a Restricted Party in violation of applicable Sanctions, (B) who has been or is the subject of any enforcement action or proceeding by any Governmental Authority concerning violations of applicable Anti-Corruption Laws, Anti-Money Laundering Laws, Export Control Laws or Sanctions, (C) who is organized or resident in any country, region or territory that is the subject of comprehensive Sanctions, (D) who is, or is owned, directly or indirectly, beneficially or of record, by, a Restricted Party, or (E) prior to the expiration of the ITC Recapture Period, who is a Tax-Exempt Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Invalidity of a Transfer</u>. Any attempted Transfer of any Units by a Member other than in accordance with this <u>Article IV</u> is void, will not be recognized by the Company.

Section 4.02.&nbsp;&nbsp;&nbsp;&nbsp;**Investment Exit Terms**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Allocation of Consideration</u>. With respect to any Investment Exit, the Board shall allocate the aggregate consideration payable in respect of Units in connection therewith, or received by the Company as consideration therefor, among the Members and distribute such consideration in accordance with <u>Article V</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Terms of Sale</u>. In connection with any Investment Exit, each Member receiving consideration or Transferring Units shall execute such documents and make such representations, warranties, covenants, and indemnities as are reasonably requested by the Board in connection therewith. Additionally, any indemnification or other similar obligation assumed in connection with such transaction shall be several and not joint and shall be allocated among the Members receiving consideration or Transferring Units in the same proportion as the aggregate consideration payable in such transaction is allocated pursuant to <u>Section 4.02(a)</u>, other than with respect to representations made individually by each Member receiving consideration or Transferring Units (*e.g.*, representations as to such Member's title or authority or representations qualified by the individual knowledge of such Member making the representation), for which such Member shall be solely liable. To the extent that any Member receives equity interests in another Person as consideration in any Investment Exit, each Member recognizes and agrees that the rights and obligations of such Member as an equity holder in such other Person will be passive and accordingly are likely to differ materially from those under this Agreement. Notwithstanding anything to the contrary in <u>Section 10.04</u>, the entry into a limited liability company agreement, shareholders' agreement, partnership agreement, or other similar organizational document by a Member receiving equity in another Person pursuant to

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an Investment Exit shall not constitute an amendment of the terms of this Agreement and, for the avoidance of doubt, shall not be subject to the terms of <u>Section 10.04</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Costs</u>. With respect to any Investment Exit (other than a Public Offering), to the extent that the costs of such transaction are not borne by the Company Group (out of the Company Group's assets) or the Transferee but are incurred on behalf of the Company for the benefit of all Members receiving consideration or Transferring Units, each Member receiving consideration in such transaction shall bear its pro rata share (based on the amount of consideration received or receivable in such transaction) of the costs of such transaction. With respect to an Investment Exit that is a Public Offering, the Company shall be responsible for its own costs, fees, and expenses and shall reimburse the Members and their Affiliates for the reasonable out-of-pocket costs, fees, and expenses (excluding underwriting discounts, selling commissions, and similar fees) incurred by them in connection with a Public Offering, including the reasonable costs, fees, and expenses of one outside counsel for the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Release</u>. As a condition to the receipt of consideration from any Investment Exit, each Member shall, if requested by the Board, provide the Company Group with, and shall receive from the Company Group, a release of claims (other than with respect to enforcing the terms of this Agreement) in a form reasonably satisfactory by the Board.

Section 4.03.&nbsp;&nbsp;&nbsp;&nbsp;**Internal Restructuring**. Subject to <u>Section 6.02(o)</u>, the Board may cause the Company to effect an Internal Restructuring on such terms as the Board deems advisable, including in connection with an Investment Exit. In connection with any such Internal Restructuring, each Member agrees that it will, and will cause its Affiliates to, and the Company shall, do all things reasonably requested by the Board in connection therewith.

Section 4.04.&nbsp;&nbsp;&nbsp;&nbsp;**Non-Accredited Investors**. Notwithstanding anything herein to the contrary, in connection with any Investment Exit or Internal Restructuring, if any Member is not then an Accredited Investor and (a) the consideration with respect to such transaction includes equity securities that are not issued with respect to a Public Offering pursuant to an effective registration statement under the Securities Act or (b) such transaction would otherwise require under securities Law the registration of the offer and sale of any equity securities, then such Member shall not have a right to participate in such transaction. In such case, if the acquirer or surviving entity in such transaction, as applicable, desires to pay cash equal to the Fair Market Value of such Member's Units, then such Member shall accept the cash payment in exchange for his, her, or its Units.

Section 4.05.&nbsp;&nbsp;&nbsp;&nbsp;**Representations and Warranties**. Each Member (as of the Effective Date or, if admitted to the Company as a Member after the Effective Date, as of the date of such admission) hereby represents and warrants to the Company and each other Member that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;such Member is duly incorporated, organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation, organization or formation, and is duly qualified and in good standing in the jurisdiction of its principal place of business, if different from its jurisdiction of incorporation, organization or formation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent such Member is an individual, such Member has the capacity to enter into this Agreement and to perform such Member's obligations hereunder or (ii) to the extent such Member is an Entity, such Member has full power and authority to enter into this Agreement and to

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perform its obligations hereunder, and in either case all actions necessary for the due authorization, execution, delivery and performance of this Agreement by such Member have been duly taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;such Member has duly executed and delivered this Agreement and the other documents that this Agreement contemplates that such Member will execute, and they each constitute the valid and binding obligation of such Member, enforceable against it in accordance with their respective terms (except as may be limited by bankruptcy, insolvency or similar Laws of general application and by the effect of general principles of equity, regardless of whether considered at Law or in equity, the "<u>Enforceability Exceptions</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the execution, delivery and performance of this Agreement by such Member does not and will not conflict with or result in a breach, default or violation of (i) the organizational documents of such Member, (ii) any other material agreement or arrangement to which such Member is a party or by which it is or its assets are bound or (iii) any Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;such Member is in compliance in all material respects with all applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;such Member is and will be acquiring its Units in the Company for investment purposes only for such Member's own account and not with a view to the distribution, reoffer, resale, or other disposition not in compliance with the Securities Act and state securities Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;such Member alone or together with such Member's representatives, possesses such expertise, knowledge, and sophistication in financial and business matters generally, and in the type of transactions in which the Company proposes to engage in particular, that such Member is capable of evaluating the merits and economic risks of acquiring and holding Units, and that such Member is able to bear all such economic risks now and in the future and such Member has had access to all information with respect to his interests in the Company that such Member deems necessary to make a complete evaluation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;such Member is aware that the Units have not been registered under the Securities Act or under the securities Law of any state, and, therefore, the Units cannot be sold unless they are subsequently registered under the Securities Act and any state securities Law or an exemption from registration is available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;such Member is an Accredited Investor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;neither such Member nor any of its Affiliates has employed or retained any broker, agent, or finder in connection with this Agreement or the transactions contemplated herein, or paid or agreed to pay any brokerage fee, finder's fee, success fee, commission, or similar payment to any Person on account of this Agreement or the transactions provided for herein that will or could constitute an obligation payable by any member of the Company Group.

Section 4.06.&nbsp;&nbsp;&nbsp;&nbsp;**Securityholders Agreement**. To the extent that units or other equity securities of any Subsidiary are distributed to any Members, unless otherwise agreed to by the Board, such Members hereby agree to enter into a securityholders agreement with such Subsidiary and each other Member which contains restrictions on the Transfer of such equity securities and other provisions (including with respect to the governance and control of such Subsidiary) in form and substance similar to the provisions and restrictions set forth herein.

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Section 4.07.&nbsp;&nbsp;&nbsp;&nbsp;**Buyout Rights.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of this <u>Section 4.07</u>, the Company shall have the right to redeem (the "<u>Call Right</u>"), and Investor (on behalf of the Class A Members) shall have the right to require the Company to redeem (the "<u>Put Right</u>", and together with the Call Right, the "<u>Buyout Rights</u>"), in each case, all (and not less than all) of the Class A Units held by the Class A Members on the date of the closing (the "<u>COC Closing</u>") of a transaction or series of transactions intended to result in a Sale of the Company, or other change of Control of the Company or the Company Group, a sale of substantially all the assets of the Company and/or its subsidiaries in one or a series of transactions (a "<u>COC Transaction</u>") for a cash amount equal to the Buyout Price, in each case, conditioned only upon the closing of the COC Transaction. Notwithstanding anything to the contrary, (i) the Put Right of Investor (on behalf of the Class A Members) (but, for the avoidance of doubt, not the Call Right of the Company) shall also be exercisable upon a change of Control or sale of substantially all the assets of Escalante or its Subsidiaries in one or a series of transactions (in each case, an "<u>Escalante Sale</u>") and (ii) the Call Right of the Company (but, for the avoidance of doubt, not the Put Right of Investor (on behalf of the Class A Members)) shall also be exercisable upon an IPO, and the terms "<u>COC Transaction</u>" and "<u>COC Closing</u>" shall include any such transaction(s) and the closing of such transaction(s), respectively. On October 6, 2025, Topco executed and delivered to Investor a guaranty<sup>1</sup> pursuant to which Topco guaranteed all the payment obligations of the Company pursuant to this <u>Section 4.07</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall promptly notify Investor (on behalf of the Class A Members) of the entry into a definitive agreement or written term sheet (each, a "<u>Potential COC Notice</u>") for a COC Transaction expected to be at least 90 days prior to the anticipated COC Closing. The Company shall indicate in the Potential COC Notice whether it intends to exercise the Call Right. If the Company does not include its intention to exercise the Call Right in the Potential COC Notice or, in the case of an Escalante Sale, following the Company's delivery of the Potential COC Notice, Investor shall have 10 days after delivery of such Potential COC Notice to notify the Company of its intent to exercise the Put Right (a "<u>Buyout Notice</u>"). The Company will provide the Investor with reasonable access to any data room (including all financial projections) that is provided to prospective buyers in the proposed COC Transaction, subject to the confidentiality obligations set forth in <u>Section 7.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;No later than seven days following the delivery of (i) a Potential COC Notice in which the Company indicates its intent to exercise the Call Right or (ii) a Buyout Notice, the Company shall prepare and deliver to Investor (on behalf of the Class A Members) a financial model for determining the Buyout Price (the "<u>Buyout Model</u>") in accordance with the valuation principles set forth in the demonstrative valuation model in <u>Exhibit E</u> attached hereto. Investor (on behalf of the Class A Members) may dispute some or all of the figures set forth in such Buyout Model by delivering to the Company a written notice setting forth the basis for such dispute(s) in reasonable detail and the Investor's resulting calculation of the figures in the Buyout Model (a "<u>Dispute Notice</u>") no later than fourteen (14) days following receipt of the Buyout Model from the Company. Upon delivery of a Dispute Notice, the Company and Investor (on behalf of the Class A Members) shall seek in good faith to agree on the final calculation of the figures set forth in such Buyout Model, no later than seven (7) days after delivery of a Dispute Notice.

<sup>1</sup> Note to Centaurus: The guaranty of the Buyout Price is already for the benefit of all Class A Members and Fervo does not expect to amend and restate it.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If the Company and Investor (on behalf of the Class A Members) do not reach agreement on the Buyout Price within seven days after delivery of a Dispute Notice to the Company, the Company and the Investor shall engage (i) the Designated Firm, in the event of any valuation- related disputes, and/or (ii) the Designated Engineer, in the event of any technical disputes, and the Designated Firm and/or Designated Engineer shall, each acting as an expert and not an arbiter, resolve any dispute regarding the Buyout Model, and absent fraud or manifest error, such determinations shall be binding on the Company and the Class A Members. Within three days of engaging the Designated Firm, the Company and Investor (on behalf of the Class A Members) shall each submit their calculation of the figures set forth in the Buyout Model, and the Designated Firm shall be limited to selecting either the Buyout Model proposed by the Company or the Buyout Model proposed by the Investor. The fees and expenses of the Designated Firm incurred in resolving any disputed matter shall be paid by the non-prevailing party. The fees and expenses of the Designated Engineer incurred in resolving any disputed matter shall be equitably apportioned by the Designated Engineer, as applicable, based on the extent to which the Company, on the one hand, or Investor, on the other hand, is determined to be the prevailing party in the resolution of such disputed matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;In the event the final determination of the Buyout Price in accordance with this <u>Section 4.07</u> (such amount, the "<u>Final Buyout Price</u>") is completed before the COC Closing, the transaction contemplated under the Buyout Rights (the "<u>Buyout Transaction</u>") shall close simultaneously with the COC Closing (and in no case later than sixty (60) days after the final determination of the Buyout Price), and the Company and the Class A Members shall execute and deliver all related documentation and take such other actions in support of the Buyout Transaction as shall reasonably be requested by the Company in order to carry out the terms and provisions of this <u>Section 4.07</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;In the event the COC Closing occurs before the final determination of the Final Buyout Price, at the COC Closing, the Company shall escrow the lower of the Buyout Price proposed by the Company and the Investor with a third party escrow agent, subject to an escrow agreement, in each case reasonably acceptable to the Investor. Within two Business Days following final determination of the Final Buyout Price, the Company and the Investor shall deliver joint written instructions to the escrow agent to wire transfer the escrow amount to the account(s) specified in writing by the Class A Members on the date of the closing of the Buyout Transaction. Within five Business Days following final determination of the Final Buyout Price, the closing of the Buyout Transaction shall occur, and the Company and the Investor shall execute and deliver all related documentation and take such other actions in support of the Buyout Transaction as shall reasonably be requested by the Company in order to carry out the terms and provisions of this <u>Section 4.07</u>. In the event the escrow amount is less than the Final Buyout Price, the Company shall wire transfer immediately available funds in an amount equal to such difference to the account(s) specified in writing by the Class A Members at the closing of the Buyout Transaction.

Section 4.08.&nbsp;&nbsp;&nbsp;&nbsp;**Royalty Payments**. Following the earlier to occur of (i) the exercise of any Buyout Rights pursuant to <u>Section 4.07</u>, or (ii) the Third Flip Date, the Company shall become obligated to pay the Class A Members the Royalty Payments. The Royalty Payments shall commence on a monthly basis on the date that is 15 years after Final Completion (such later date the "<u>Royalty Commencement Date</u>"). The Royalty Payments shall be paid no later than 45 days after the end of each calendar month following the Royalty Commencement Date. Notwithstanding anything herein to the contrary, the Company may not, and shall not permit of any its Subsidiaries to, assign, transfer, or dispose of all or a majority of the assets comprising the Project to a third party without such third

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party's entry into an agreement to assume in full the Royalty Payment and the obligations under this <u>Section 4.08</u>.

Section 4.09.&nbsp;&nbsp;&nbsp;&nbsp;**Third Flip Date**. After (a) the occurrence of the Third Flip Date and (b) distributions of all Available Cash with respect to the period before achieving the Third Flip Date, all remaining Available Cash with respect to the period after the Third Flip Date shall be solely distributed pursuant to Section 1 of <u>Exhibit A</u> and, notwithstanding anything in this Agreement to the contrary, thereafter the sole remaining right of the Class A Members under this Agreement shall be the satisfaction of the obligations set forth in <u>Section 4.08</u>.

**ARTICLE V**

**DISTRIBUTIONS AND ALLOCATIONS**

Section 5.01.&nbsp;&nbsp;&nbsp;&nbsp;**Distributions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Distributions</u>. Subject to <u>Section 5.01(b)</u>-<u>(c)</u>, (i) all Available Cash shall be distributed to the Members on a quarterly basis in accordance with <u>Section 1</u> of <u>Exhibit A</u>, (ii) if a Debt Recap occurs prior to Final Completion, Distributable DR Proceeds shall be distributed to the Members in accordance with <u>Section 2</u> of <u>Exhibit A</u>, and (iii) Distributable ITC Transfer Proceeds shall be distributed to the Members in accordance with <u>Section 3</u> of <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Distributions in Error</u>. Any distributions pursuant to this <u>Section 5.01</u> made in error or in violation of the Act will be returned to the Company upon demand by the Board and redistributed in accordance with this <u>Section 5.01</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Distributions In Kind</u>. The Board may permit the Company to make distributions in kind with the prior written consent of the Members holding a majority of the Class B Units and the Members holding a majority of the Class A Units. Each asset distributed in kind will be valued at its Fair Market Value as of the time of such distribution. Except as otherwise set forth in this Agreement, no Member or other Person with an interest in the Company has the right to require the Company to make a distribution in kind.

Section 5.02.&nbsp;&nbsp;&nbsp;&nbsp;**Allocations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Profits and Losses</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>General Application</u>. For each Fiscal Year or other period, after giving effect to <u>Section 5.02(b)</u> and <u>Section 8.02(f)</u>, the rules set forth below in this <u>Section 5.02(a)</u> shall apply for the purpose of determining each Member's allocable share of Profits or Losses of the Company for such Fiscal Year or other period.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Hypothetical Liquidation</u>. Profits or Losses (or any items thereof) for a Fiscal Year or other period shall be allocated among the Persons who were Members during such Fiscal Year or other period in a manner that will reduce, proportionately, the differences between their respective Partially Adjusted Capital Accounts and Target Capital Accounts for such Fiscal Year or other period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulatory Allocations</u>. Notwithstanding <u>Section 5.02(a)</u>, the following special allocations will be made in the following order of priority:

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Gain Chargeback</u>. If there is a net decrease in Company Minimum Gain during a Fiscal Year or other period, then each Member will be allocated items of Company income and gain for such a Fiscal Year or other period (and, if necessary, for subsequent years or periods) in an amount equal to such Member's share of the net decrease in Company Minimum Gain, determined in accordance with Treasury Regulations Section 1.704-2(g)(2). This <u>Section 5.02(b)(i)</u> is intended to comply with the minimum gain chargeback requirement of Treasury Regulations Section 1.704-2(f) and will be interpreted consistently therewith.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Member Minimum Gain Chargeback</u>. If there is a net decrease in Member Minimum Gain attributable to a Member Nonrecourse Debt during any Fiscal Year or other period, each Member who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Treasury Regulations Section 1.704-2(i)(5), will be specially allocated items of Company income and gain for such Fiscal Year or other period (and, if necessary, subsequent years or periods) in an amount equal to such Member's share of the net decrease in Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in a manner consistent with the provisions of Treasury Regulations Sections 1.704-2(g)(2) and (j)(2)(ii). This <u>Section 5.02(b)(ii)</u> is intended to comply with the partner nonrecourse debt minimum gain chargeback requirement of Treasury Regulations Section 1.704-2(i)(4) and will be interpreted consistently therewith.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Qualified Income Offset</u>. If any Member unexpectedly receives an adjustment, allocation, or distribution of the type contemplated by Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5), or (6), items of income and gain will be allocated to all such Members (in proportion to the amounts of their respective deficit Adjusted Capital Accounts) in an amount and manner sufficient to eliminate the deficit balance in the Adjusted Capital Account of such Member as quickly as possible, *provided* that an allocation pursuant to this <u>Section 5.02(b)(iii)</u> shall be made if and only to the extent that such Member would have an Adjusted Capital Account deficit after all other allocations provided for in this <u>Article V</u> have been tentatively made as if this <u>Section 5.02(b)(iii)</u> were not in this Agreement. It is intended that this <u>Section 5.02(b)(iii)</u> qualify and be construed as a "qualified income offset" within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(d).

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Gross Income Allocation</u>. In the event that a Member has a Capital Account deficit at the end of any Fiscal Year or other period, such Member shall be specially allocated items of Company gross income and gain in an amount of such deficit as quickly as possible, *provided* that any allocation under this <u>Section 5.02(b)(iv)</u> shall be made only if and to the extent that a Member would have a Capital Account deficit after all allocations provided for in this <u>Section 5.02</u> have been tentatively made as if <u>Section 5.02(b)(iii)</u> and this <u>Section 5.02(b)(iv)</u> were not in 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;(v)&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Allocation of Net Loss</u>. If the allocation of Losses to a Member as provided in <u>Section 5.02(a)</u> would create or increase an Adjusted Capital Account deficit, there will be allocated to such Member only that amount of Losses as will not create or increase an Adjusted Capital Account deficit. The Losses that would, absent the application of the preceding sentence, otherwise be allocated to such Member will be allocated to the

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other Members in accordance with their relative proportion of Units, subject to the limitations of this <u>Section 5.02(b)(v)</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;(vi)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Additional Adjustments</u>. To the extent that an adjustment to the adjusted tax basis of any Company asset pursuant to Code Section 732(d), 734(b) or Code Section 743(b) is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts as the result of a distribution to a Member in complete liquidation of its Units, the amount of such adjustment to the Capital Accounts will be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss will be specially allocated to the Members in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(m).

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Nonrecourse Deductions</u>. The Nonrecourse Deductions for each Fiscal Year or other period of the Company will be allocated to the Members as determined by the Board (subject to the consent of the Class A Majority) and permitted by the Treasury Regulations.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Member Nonrecourse Deductions</u>. The Member Nonrecourse Deductions will be allocated each year to the Member that bears the economic risk of loss (within the meaning of Treasury Regulations Section 1.752-2) for the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable.

&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)&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any item of income, gain, loss or deduction has been specially allocated pursuant to <u>Section 5.02(b)(i)-(viii)</u> and such allocation is inconsistent with the way in which the same amount otherwise would have been allocated under <u>Section 5.02(a)</u>, subsequent allocations under this <u>Section 5.02(b)(ix)</u> shall be made, to the extent possible and without duplication, in a manner consistent with <u>Section 5.02(a)</u> and taking into account future allocations under <u>Section 5.02(b)(i)-(viii)</u> that, although not yet made, are likely to offset other allocations previously made under <u>Section 5.02(b)(i)-(viii)</u>, which negate as rapidly as possible the effect of all such inconsistent allocations under <u>Section 5.02(b)(i)-(viii)</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;(x)&nbsp;&nbsp;&nbsp;&nbsp;Any "imputed underpayment" within the meaning of Code Section 6225 (or any similar provision of state or local law) paid (or payable) by the Company as a result of an adjustment with respect to any Company item, including any interest or penalties with respect to any such adjustment, or any state or local income tax paid (or payable) by the Company that (as reasonably determined by the Board based upon this Agreement) is attributable or allocable to one or more Members, shall be allocated to the Members in a manner consistent with applicable Treasury Regulations (or comparable provisions of applicable state or local law) and <u>Section 8.03(c)</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;(xi)&nbsp;&nbsp;&nbsp;&nbsp;Any tax exempt income described in Section 6417(c)(l)(C) or Section 6418(c)(l)(A) of the Code shall be allocated among the Members in accordance with Section 6417(c)(l)(D) and Section 6418(c)(l)(B) of the Code, respectively, and the applicable Treasury Regulations promulgated thereunder, including, to the extent determined necessary or appropriate by the Board, any proposed Treasury Regulations, rulings, guidance or other administrative pronouncements.

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These provisions shall be applied as if all distributions and allocations were made at the end of the Fiscal Year or other taxable period. Where any provision depends on the balance of a Capital Account of any Member, such Capital Account shall be determined after the operation of all preceding provisions for the period. These allocations shall be made consistently with the requirements of Treasury Regulations Section 1.704-2(j).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Allocations</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)&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in <u>Section 5.02(c)(ii)</u>, <u>Section 5.02(c)(iii)</u> or <u>Section 5.02(d)</u>, for income tax purposes under the Code and the Treasury Regulations, each Company item of income, gain, loss, deduction and credit shall be allocated between the Members in the same manner as the correlative item of "book" income, gain, loss, deduction, or credit is allocated pursuant to this <u>Article V</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Tax items with respect to Company assets that are contributed to the Company with a Gross Asset Value that varies from its basis in the hands of the contributing Member immediately preceding the date of contribution shall be allocated between the Members for federal income tax purposes pursuant to Treasury Regulations promulgated under Code Section 704(c) so as to take into account the difference between such Company asset's Code Section 704(b) book basis and its tax basis. The Company shall account for such variation using such method or methods as determined by the Board (subject to the consent of the Class A Majority) to be appropriate and in accordance with the applicable Treasury Regulations. If the Gross Asset Value of any Company asset is adjusted pursuant to the definition of Gross Asset Value, subsequent allocations of income, gain, loss, deduction, and credit with respect to such Company asset shall take account of any variation between the adjusted basis of such Company asset for federal income tax purposes and its Gross Asset Value in a manner consistent with Code Section 704(c) and the Treasury Regulations promulgated thereunder using such method or methods as determined by the Board (subject to the consent of the Class A Majority) to be appropriate and in accordance with the applicable Treasury Regulations.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Allocations pursuant to this <u>Section 5.02(c)</u> are solely for purposes of Taxes and will not affect, or in any way be taken into account in computing, any Member's Capital Account or share of net Profits, net Losses and any other items or distributions pursuant to any term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Terms</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)&nbsp;&nbsp;&nbsp;&nbsp;For any Fiscal Year or other period during which any Units are Transferred between the Members or to another Person (other than by pledge of, or grant of a security interest in, such Units), the portion of the Profits, Losses and other items of income, gain, loss, deduction, and credit that are allocable with respect to such Units will be apportioned between the Transferring Member and the Transferee Member under any method allowed pursuant to Code Section 706 and the applicable Treasury Regulations as determined by the Board.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Solely for purposes of determining a Member's proportional share of the Company's "excess nonrecourse liabilities" within the meaning of Treasury Regulations Section 1.752-3(a)(3), each Member's interest in Profits shall be in the same proportion as Nonrecourse Deductions are allocated to such Member, as provided in <u>Section 5.02(b)(vii)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Valuation; Revaluation</u>. Except as otherwise set forth in this Agreement, valuations will be made by the Board or, at the direction of the Board, by independent third parties appointed by the Board and deemed qualified by the Board to render an opinion as to the value of the Company's assets, using such methods and considering such information relating to the Company's investments, assets, and liabilities as the Board or independent third party, as the case may be, may determine at the option of the Board. The Board shall consult in good faith with the Class A Majority in connection with any distribution to any Member that is allocable to the proceeds of any nonrecourse liability of the Company or in connection with an event for which the Gross Asset Values of the Company are permitted to be adjusted as provided in the "Gross Asset Value" definition herein to (i) determine whether an adjustment to the Gross Asset Values of the Company's assets are permitted to be made in connection with such event under the Treasury Regulations and (ii) if so permitted, whether to make such adjustments, taking into account equitably the interests of Investor, Holst, the other Members and the Company as a whole.

Section 5.03.&nbsp;&nbsp;&nbsp;&nbsp;**Taxes Paid on Behalf of a Member; Entity-Level Taxes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company shall (i) comply with withholding requirements under U.S. federal, state, local and non-U.S. Law, (ii) withhold distributions or portions thereof if it is required to do so under any Law and (iii) remit amounts withheld to, and file required forms with, the applicable jurisdictions. Each Member hereby authorizes the Company to withhold from or pay on behalf of or with respect to such Member (including, for the avoidance of doubt, after such Member withdraws or otherwise ceases to be a Member) any amount of Taxes that the Board determines that the Company is required to withhold or pay with respect to such Member, including with respect to any amount distributable or allocable to such Member pursuant to this Agreement and including any amounts payable by the Company pursuant to Subchapter C of Chapter 63 of the Code that the Board determines are attributable to such Member. Any amounts withheld or paid pursuant to this <u>Section 5.03</u> will be treated as having been distributed to such Member and shall be credited against and reduce any amount of distributions to which such Member is then entitled pursuant to <u>Section 5.01</u>. To the extent that the cumulative amount of such Tax payments or withholding exceeds the distributions to which such Member is entitled pursuant to <u>Section 5.01</u>, the amount of such excess will be considered a loan from the Company to such Member with interest accruing at 8%. Such loan may, at the option of the Board, be satisfied (A) out of distributions to which such Member would otherwise be subsequently entitled or (B) by the immediate payment in cash to the Company of such excess amount (or any combination of the foregoing). The Board may cause the Company to take any other action it determines to be necessary or appropriate in connection with any obligation or possible obligation to impose withholding pursuant to any Law or to pay any Tax with respect to a Member. Each Member hereby unconditionally and irrevocably grants to the Company a security interest in such Member's Units to secure such Member's obligation to pay to the Company any amounts required to be paid pursuant to this <u>Section 5.03</u>. Each Member will take such actions as the Company may request to perfect or enforce the security interest created hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the Company, the Board, or any of their respective Affiliates, or any of their respective officers, directors, managers, members, partners, shareholders, employees, consultants, agents or advisors becomes liable as a result of a failure to withhold and remit taxes in respect of any Member (or former Member) hereunder, then such Member (or former Member) shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, the Board, or any of their respective Affiliates, or any of their respective officers, directors, managers, members, partners, shareholders, employees, consultants, agents or advisors, as the case may be, in respect of all taxes,

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including interest and penalties, and any expenses incurred in any examination, determination, resolution and payment of such liability (and any such indemnity with respect to any withholding taxes imposed pursuant to Code Section 1446(f)(4) and any interest, penalties and expenses in connection therewith shall be provided jointly and severally by the transferor Member (or former Member) and transferee Member (or former Member) of any Membership Interest), except with respect to any penalties or expenses that arise as a result of any act or omission with respect to which a court of competent jurisdiction has issued a final, nonappealable judgment that the Company, the Board, or any of their respective Affiliates, or any of their respective officers, directors, employees, managers, members, partners, shareholders, and, as determined by the Board in its sole and absolute discretion, consultants, agents or advisors was grossly negligent or engaged in willful misconduct or fraud. Additionally, each Member (and each former Member) shall indemnify the Company against any losses and liabilities (including interest and penalties) related to any income Tax payable by the Company that (as reasonably determined by the Board based upon this Agreement) is attributable or allocable to such Member (or former Member). Notwithstanding any other provision of this Agreement, the obligations of each Member under this <u>Section 5.03</u> shall survive such Member's ceasing to be a Member and/or the termination, dissolution, liquidation, and winding up of the Company.

**ARTICLE VI**

**MANAGEMENT**

Section 6.01.&nbsp;&nbsp;&nbsp;&nbsp;**Management**. Except as otherwise required by Law or set forth in this Agreement (including <u>Section 6.02(o)</u>), the business and affairs of the Company shall be managed and controlled by a board of managers (the "<u>Board</u>," and each member of the Board, a "<u>Manager</u>"), and the Board shall have full and complete discretion to manage and conduct the business and affairs of the Company, to make all decisions affecting the business and affairs of the Company and to take all actions as it deems necessary, advisable, or appropriate to accomplish the purposes of the Company as set forth in <u>Section 2.05</u>. Notwithstanding the foregoing, no Manager in his or her individual capacity shall have the authority to manage the Company or approve matters relating to, or otherwise bind, the Company, such powers being reserved to all of the Managers acting pursuant to <u>Section 6.02(f)</u> through the Board and such agents of the Company as may be designated by the Board.

Section 6.02.&nbsp;&nbsp;&nbsp;&nbsp;**Board of Managers**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Composition; Manager</u>. The Board shall initially consist of three (3) Managers designated by the Class B Members acting as a class; *provided* that, for so long as Fervo holds a majority of the Class B Units and subject to <u>Section 3.03(c)</u> and <u>Section 6.10</u>, Fervo shall be entitled to designate the Managers. The initial Managers designated by the Class B Members hereunder shall be Timothy Latimer, David Ulrey, and Gustavo Torres.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Size of Board</u>. The number of Managers serving on the Board may not be increased or decreased except upon unanimous consent of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal and Resignation</u>. Except as otherwise set forth herein, a Manager will continue to serve on the Board until his or her death, disability, resignation, or removal. Any Manager may be removed from the Board, with or without cause, by the Member(s) who designated such Manager to serve on the Board, subject to <u>Section 6.10</u>. A Manager may resign upon written notice to the Company. Such resignation shall take effect at the time specified in the notice of resignation

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or, if no time is specified, at the time of its receipt by the Company. The acceptance of a resignation shall not be necessary to make it effective unless expressly so provided in the resignation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Vacancies</u>. If a vacancy is created on the Board at any time by the death, disability, resignation, or removal of a Manager, the Member(s) that had designated such Manager to serve on the Board shall have the sole and exclusive right to designate a replacement therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement and Remuneration</u>. The Managers shall not be compensated separately for serving as a Manager. A Manager shall be reimbursed for reasonable out-of-pocket expenses incurred in connection with attending any meeting of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Votes per Manager; Quorum; Required Vote for Board Action</u>. Each Manager shall have one vote. Unless otherwise required by this Agreement, the presence of Managers having at least a majority of the votes then entitled to be cast by the total number of Managers then entitled to be appointed to the Board and shall constitute a quorum for the transaction of business at a meeting of the Board. Except as otherwise set forth in this Agreement, approval of matters by the Board will require the affirmative vote or consent of at least a majority of the votes cast on such matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Place of Meetings; Order of Business</u>. The Board may hold its meetings, except as otherwise provided by Law, in such place or places, within or without the State of Delaware, as the Board may from time to time determine by resolution. At all meetings of the Board, business shall be transacted in such order as shall from time to time be determined by the resolution of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;<u>Regular Meetings</u>. Regular meetings of the Board shall be held on at least a quarterly basis at such times and places as shall be designated from time to time by resolution of the Board. Notice of such regular meetings shall not be required if held at the times and places set forth in the relevant resolution and such resolution has been provided to each Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Special Meetings</u>. Special meetings of the Board may be called by any Manager on at least forty-eight (48) hours' prior notice, which notice must include appropriate dial-in information to permit each Manager to participate in such meeting by means of telephone conference, video conference, or similar means. Notice of a special meeting need not state the purpose or purposes of such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Action Without a Meeting</u>. Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by a majority of the Managers. The writing or writings evidencing any action by written consent shall be filed with the minutes of proceedings of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;<u>Telephonic Conference Meeting</u>. Subject to the requirement for notice of meetings, Managers may participate in a meeting of the Board by means of a conference telephone, video conference, or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in such a meeting shall constitute presence in person at such meeting, except where a Manager participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Notice Through Attendance</u>. Attendance of a Manager at any meeting of the Board (including by telephone) shall constitute a waiver of notice of such meeting, except where

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such Manager attends the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened and notifies the other Managers at such meeting of such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reliance on Books, Reports and Records</u>. Each Manager shall, in the performance of his or her duties, be fully protected in relying in good faith upon the books of account or reports made to the Company by any of its Officers or by an independent certified public accountant or by an appraiser selected with reasonable care by the Board, or in relying in good faith upon other records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;<u>Committees</u>. The Board may establish by resolution committees of the Board (each a "<u>Committee</u>"), with each such Committee being composed of two or more Managers. Any such Committee shall have and may exercise such of the powers and authority of the Board in the management of the business and affairs of the Company as shall be delegated to such Committee from time to time by resolution of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;<u>Investor</u> <u>Consent Requirements</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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Agreement to the contrary (other than <u>Section 8.04(a)</u>), the Company shall not (and the Board shall cause the Company and each other member of the Company Group not to) take any of the following actions without the prior written consent of Class A Members who hold a majority of the issued and outstanding Class A Units (the "<u>Class A Majority</u>") (and, solely with respect to the matters set forth in subclauses (B), (G), (H) and (O) of this <u>Section 6.02(o)(i)</u>, such consent not to be unreasonably withheld, conditioned or delayed); provided, however, that to the extent (i) Breakthrough Catalyst has the right to consent to any of the following actions pursuant to <u>Section 6.02(o)(i)</u> of the Project Company LLCA, (ii) Breakthrough Catalyst has actually consented to such action, and (iii) such action is not materially adverse to the Class A Majority, the Company may take such action without the consent of the Class A Majority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;engaging in any business or activity that is not within the purpose of the Company as set forth in <u>Section 2.05</u> or changing any such purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;forming or otherwise acquiring any Subsidiary that is not wholly- owned by the Company or a wholly-owned Subsidiary of any 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;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;entering into, amending (other than any ministerial or administrative amendment), renewing, terminating or providing any consent or waiving any material right under (1) any PPA or any other power purchase or other offtake agreement to which any member of the Company Group is a party, (2) any Other Material Project Agreement or (3) any other contract or agreement (or series of related contracts or agreements) reasonably expected to require any payments to or from any member of the Company Group which are not contemplated by the Project Budget and are in excess of $5,000,000 in any calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;amending any previously approved version of the Project Budget, or making or incurring any expenditure that would exceed the amount set forth in the Project Budget (such amount to include any agreed-upon contingency amount) by

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more than 5% (*provided*, that the Class A Members shall not unreasonably withhold, condition or delay their consent pursuant to this clause (D) if the Company shall have demonstrated to the reasonable satisfaction of the Class A Members that the Company Group has access to a sufficient amount of capital to fund any such excess amount when it is required to be funded pursuant to the Project Budget or applicable contract);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;incurring, or entering into or amending any documentation evidencing, new indebtedness for borrowed money (1) after the Effective Date and prior to the date any assets of Cape Phase 1 WellCo of the Company is placed in service that result in the Company Group's cumulative Term Debt exceeding $400 million (such amount, the "Term Debt Amount"), (2) after the date any assets of Cape Phase 1 WellCo are placed in service the cumulative amounts of indebtedness for borrowed money of the Company Group shall not be increased by more than $5,000,000; provided that any increase of total indebtedness in excess of $5,000,000 that is incurred after the date any assets of Cape Phase 1 WellCo of the Company is placed in service shall be permitted without consent of the Class A Majority if the closing of such indebtedness is accompanied by a Debt Recap and the Distributable DR Proceeds are distributed to the Class A Members (a) in an amount sufficient to satisfy the Class A Members' MOIC projected to be earned by the Third Flip Date (taking into account any ITC recapture event), as set forth in the Adjusted Base Case Model or (b) in such a manner that does not adversely affect the Class A Members' applicable Cash Sharing Ratio as of the date of distribution or the flip date mechanics set forth in the Adjusted Base Case Model (including, at the Company's sole discretion, by disproportionate distribution to the Class A Members);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;amending any documentation evidencing indebtedness of the Company or any other member of the Company Group after any ITC Assets are Placed in Service to the extent such amendment increases the cost of such indebtedness in a way that is materially adverse to the Class A Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;initiating, settling, releasing or compromising any pending or threatened litigation, suit or proceeding (including any administrative or arbitration proceeding) (each, an "<u>Action</u>") with an amount in controversy in excess of $1,000,000, other than with respect to any Action initiated by or against any Class A Member or Affiliates thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;except as expressly contemplated by the Project Budget, or any other budget or business plan approved in accordance with this Agreement, acquiring or disposing of any assets (other than dispositions of obsolete, damaged or worn out assets in the ordinary course of business) with a Fair Market Value in excess of $500,000 individually, or $1,500,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;entering into, amending, suspending, terminating, enforcing or providing any consent or waiver with respect to, any material contract, arrangement, understanding or other transaction between or among any Member or any Affiliate thereof, on the one hand, and any member of the Company Group, on the other hand, other than any such contract, arrangement, understanding or other transaction that (i) contemplates annual payments not exceeding $500,000 and (ii) is on arms' length terms; *provided*, that, for the avoidance of doubt, the entry by any member of the

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Company Group into any contract in effect as of the date hereof and disclosed in the disclosure schedules to the Investor Subscription Agreement shall not require the consent of the Class A Members under this <u>Section 6.02(o)(i)(I)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J)&nbsp;&nbsp;&nbsp;&nbsp;approving any Bankruptcy or dissolution of the Company or any Bankruptcy of any other member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;issuing any equity interests that rank (or are structurally) senior to or *pari passu* with the Class A Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;subject to the provisions of <u>Section 8.04</u>, (1) filing or otherwise causing any member of the Company Group to file any entity classification election to treat any member of the Company Group other than as a partnership or a disregarded entity for United States federal income tax purposes (including by electing under Treasury Regulations Section 301.7701-3 to be classified as an association taxable as a corporation), (2) making any material Tax election for any member of the Company Group, except as provided herein, or (3) making any change to any material Tax or accounting method, except as would not have a disproportionate adverse effect on Investor or Holst as compared to the other Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;loaning any funds of any member of the Company Group to any Person (other than another member of the Company Group) other than extensions of trade credit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;permanently ceasing construction, development or operation of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing any member of the Company Group to (1) hire any employees, (2) enter into or adopt any bonus, profit sharing, thrift, compensation, option, pension, retirement, savings, welfare, deferred compensation, employment, termination, severance or other employee benefit plan, or (3) enter into any agreement, trust, fund, policy, or arrangement for the benefit or welfare of any directors (other than any customary director indemnification agreement), officers, or employees of any member of the Company Group, other than as expressly permitted pursuant to <u>Section 6.07</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(P)&nbsp;&nbsp;&nbsp;&nbsp;accepting any Capital Contribution in-kind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;during the ITC Recapture Period (1) the admission of any Tax-Exempt Entity as a Member of the Company or a member of any other member of the Company Group that would impair ITC eligibility under Section 50 of the Code, or (ii) any Transfer (including any indirect Transfer) of a Membership Interest to a Tax-Exempt Entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;any direct or indirect transfer of Units pursuant to the proviso in <u>Section 4.01(a)</u>; 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;(S)&nbsp;&nbsp;&nbsp;&nbsp;agreeing or committing to take any of the foregoing actions.

Section 6.03.&nbsp;&nbsp;&nbsp;&nbsp;**Transactions with Affiliates**. To the extent permitted by Law and approved by the Board, but subject to <u>Section 6.02(o)(i)(D),</u> each Member, whether acting for itself or on behalf

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of the Company, is hereby permitted to purchase property from, sell property to, enter into transactions with, loan money to, or otherwise deal with the Company Group, directly or indirectly through an Affiliate; *provided*, *however*, that any such dealing (including any issuance of Units other than pursuant to <u>Section 3.03(b)(iv)</u>) that is not either (x) at Fair Market Value or (y) on arms' length terms, shall also require the consent of each disinterested Member. For the avoidance of doubt, neither the Company nor any other Member acting through the Company will have any rights in or to any income or profits received by a Member or any of its Affiliates (other than the Company Group) in any transaction permitted under this <u>Section 6.03</u>. The Company shall notify the Investor in writing in advance of any member of the Company Group entering into any transaction with any Member or any Affiliate of any Member, or any officer, employee, director, member, partner, shareholder, or representative of any Member or any Affiliate of any Member, which written notice shall include reasonable details regarding the terms and conditions of such transaction, including payments or compensation terms thereof.

Section 6.04.&nbsp;&nbsp;&nbsp;&nbsp;**Officers**. The Board may from time to time designate one or more Persons to be Company officers with such titles as the Board may assign to such Persons. The Board may grant authority to any officer to take actions on behalf of the Company pursuant to a written delegation of authority matrix or other written delegation of authority that has been approved by the Board, and upon the approval of such delegation of authority, the applicable officer shall be entitled to take any such actions with the authority granted to him or her in such delegation of authority notwithstanding any provision to the contrary in this <u>Article VI</u> and until such time as such delegation of authority expires pursuant to its terms or is revoked by the Board. The salaries or other compensation, if any, of the Company's officers and other agents will be fixed from time to time by the Board. Any officer may resign as such at any time. Such resignation will be made in writing and delivered to the Board and will take effect at the time specified therein or, if no time be specified, at the time of its receipt by the Board. Any officer may be removed as such, either with or without cause, by the Board, without prejudice to any contractual rights of such officer under any agreement with the Company Group. Any vacancy occurring in any Company office may be filled by the Board.

Section 6.05.&nbsp;&nbsp;&nbsp;&nbsp;**Waiver of Fiduciary Duties; Indemnification; Limitation of Liability**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except for the express obligations set forth in this Agreement or in any other agreement, to the maximum extent permitted by Law, no Member or Manager shall have any fiduciary or other duty to the Company, any other Member or Manager or any other Person other than the implied contractual covenant of good faith and fair dealing, and no Member or Manager shall be liable in damages to the Company, any other Member or Manager or any other Person by reason of, or arising from or relating to the business and affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent that it is determined by a final, non-appealable order of a court of competent jurisdiction that any of the foregoing was caused by a willful breach of this Agreement or actual fraud, gross negligence, willful misconducts, or bad faith of such Member, Manager or other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;To the fullest extent permitted by law and notwithstanding any provision of this Agreement or in any agreement contemplated herein or applicable provisions of law or equity or otherwise, whenever in this Agreement the Board or a Manager is permitted or required to make a decision in its "discretion" or "sole discretion," such Person shall be entitled to consider any appropriate interests and factors as it desires; provided, that such Person shall in each case act or omit to act in good faith; and provided further, that such Person shall in each case act or omit to act in a

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manner reasonably believed by such Person to be in or not opposed to the best interests of the Company and otherwise in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;To the maximum extent permitted by Law but subject to this <u>Section 6.05</u>, each Member (including in its capacity as the Partnership Representative, if applicable) and each Manager (each an "<u>Indemnitee</u>") will be indemnified and held harmless by the Company against, all claims, actions, demands, losses, damages, liabilities, costs, or expenses, including attorney's fees, court costs, and costs of investigation, and including expenses incurred in successfully enforcing this right to indemnification, actually and reasonably incurred by any such Indemnitee (collectively, "<u>Indemnified Losses</u>") arising from any civil, criminal, or administrative proceedings in which such Indemnitee may be involved, as a party or otherwise, by reason of its being a Member (including in its capacity as the Partnership Representative, if applicable), or a Manager, or by reason of its involvement in the management of the Company's business and affairs, whether or not it continues to be such at the time any such Indemnified Loss is paid or incurred, except to the extent that any of the foregoing is determined by a final, non-appealable order of a court of competent jurisdiction (i) to have been caused by a willful breach of this Agreement or the actual fraud, gross negligence, willful misconduct, or bad faith of such persons or (ii) with respect to criminal matters, that an Indemnitee had reason to believe that his or her conduct was unlawful. IT IS THE EXPRESS INTENT OF THE PARTIES HERETO THAT THE FOREGOING INDEMNITY SHALL BE APPLICABLE TO ANY LOSS THAT HAS RESULTED FROM OR IS ALLEGED TO HAVE RESULTED FROM THE ACTIVE OR PASSIVE OR THE SOLE, JOINT, OR CONCURRENT ORDINARY NEGLIGENCE OF, THE INDEMNITEE. Nothing in this <u>Section 6.05(c)</u> shall limit the waiver of duties with respect to Members and Managers provided in <u>Section 6.06(a)</u> and <u>Section 6.06(b)</u>, or otherwise impose a standard of care or liability with respect to Managers or Members that is more stringent than that expressed in <u>Section 6.06(a)</u> and <u>Section 6.06(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;To the maximum extent permitted by Law, expenses incurred by an Indemnitee in defending any proceeding (except a proceeding by or in the right of the Company or brought by any Member against such Indemnitee), will be paid by the Company in advance of the final disposition of the proceeding upon receipt of a written undertaking by or on behalf of such Indemnitee to repay such amount if such Indemnitee is determined pursuant to this <u>Section 6.05</u> or adjudicated to be ineligible for indemnification, which undertaking will be an unlimited general obligation of the Indemnitee but need not be secured except as otherwise determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The indemnification provided by this <u>Section 6.05</u> will inure to the benefit of the heirs and personal representatives of each Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Any indemnification pursuant to this <u>Section 6.05</u> will be made only out of the Company's assets and will in no event cause any Member to incur any personal liability nor shall it result in any liability of the Members to any third party. The Company shall not be required to make a capital call to fund any indemnification obligation hereunder nor shall any Member be required to make any Capital Contribution for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The rights of indemnification provided in this <u>Section 6.05</u> are in addition to any rights to which an Indemnitee may otherwise be entitled by contract (including advancement of expenses) or as a matter of law. Notwithstanding the foregoing, if any fact, circumstance or condition forming a basis for a claim for indemnification by Investor under Section 8.2 of the Investor Subscription Agreement shall overlap with any fact, circumstance, condition, agreement or event forming the basis

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of any other claim for indemnification by the Investor under this <u>Section 6.05</u>, there shall be no duplication in the calculation or recovery of the amount of the Indemnified Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other term of this Agreement, but subject to <u>Section 6.05(b),</u> to the extent that any term of this Agreement purports or is interpreted (i) to have the effect of replacing, restricting, or eliminating the duties that might otherwise, as a result of Delaware or other Law, be owed by a Member or a Manager to the Company, the other Members or Managers, any other Person who acquires an interest in the Company or any other Person who is bound by this Agreement, or (ii) to constitute a waiver of such duties by the Company, the Members, the Managers, any other Person who acquires an interest in the Company or any other Person who is bound by this Agreement or a consent by any of the foregoing to any such replacement, restriction, or elimination, such term shall be deemed to have been approved by the Company, all the Members, the Managers, each other Person who acquires an interest in the Company and each other Person who is bound by or seeks to exercise rights under this Agreement.

Section 6.06.&nbsp;&nbsp;&nbsp;&nbsp;**Company as Indemnitor of First Resort**. The Company hereby agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;it is the indemnitor of first resort under this Agreement or any other indemnification agreement, arrangement, or undertaking with respect to any Indemnitee and, as a result, the Company's obligations to any such Indemnitee under this Agreement or any other agreement, arrangement, or undertaking to provide advancement of expenses and indemnification to such Indemnitee are primary without regard to any rights such Indemnitee may have to seek or obtain indemnification or advancement of expenses from any other Person or any of its Affiliates ("<u>Other Indemnitor</u>") or from any insurance policy for the benefit of such Indemnitee (other than any directors' or managers' and officers' insurance policy for the benefit of such Indemnitee maintained or paid for by the Company Group), and any obligation of any Other Indemnitor to provide advancement or indemnification for all or any portion of the same expenses, liabilities, judgments, penalties, fines, and amounts paid in settlement (including all interest, assessments, and other charges paid or payable in connection with or in respect of such expenses, liabilities, judgments, penalties, fines, and amounts paid in settlement) incurred by such Indemnitee and any rights of recovery of such Indemnitee under any insurance policy for the benefit of such Indemnitee (other than any directors' and officers' insurance policy for the benefit of such Indemnitee maintained or paid for by the Company Group) are secondary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) if any Indemnitee pays or causes to be paid, for any reason, any amounts otherwise payable or indemnifiable under <u>Section 6.05(a)</u>, then such Indemnitee shall be indemnified therefor pursuant to <u>Section 6.05(a)</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;if any other Person pays or causes to be paid on behalf of an Indemnitee, for any reason, any amounts otherwise payable or indemnifiable hereunder or under any other indemnification agreement, arrangement, or undertaking (whether pursuant to contract, organizational document, or otherwise) with such Indemnitee, then (A) such Person shall be fully subrogated to all rights of an Indemnitee with respect to such payment and (B) the Company shall fully indemnify, reimburse, and hold harmless such Person for all such payments actually made by such Person; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;if any Indemnitee collects under any insurance policy for the benefit of such Indemnitee (other than any directors' and officers' insurance policy for the benefit of such

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Indemnitee maintained or paid for by the Company Group), any amounts otherwise payable or indemnifiable hereunder or under any other indemnification agreement, arrangement, or undertaking (whether pursuant to contract, organizational document, or otherwise) with such Indemnitee, then (A) such insurer shall be fully subrogated to all rights of such Indemnitee with respect to such payment and (B) the Company shall fully indemnify, reimburse, and hold harmless such insurer for all such payments actually made by such insurer.

Section 6.07.&nbsp;&nbsp;&nbsp;&nbsp;**Managers' and Officers' Insurance**. The Company will purchase and maintain managers' and officers' liability insurance in the amount approved by the Board, if any, on behalf of any Person who is or was a Member, a Manager, or a Company Group officer against any liability asserted against him or her or incurred by him or her in any capacity identified in <u>Section 6.05</u> or arising out of his or her status as an Indemnitee, whether or not the Company would have the power to indemnify him or her against that liability under <u>Section 6.05</u>.

Section 6.08.&nbsp;&nbsp;&nbsp;&nbsp;**Other Activities**. Notwithstanding anything to the contrary in this Agreement but subject to <u>Section 7.03</u> and any other agreement entered into by the Members, the Members, the Managers and their respective Affiliates may engage or invest in, and devote their time to, any other business venture or activity of any nature and description, whether or not such activities are considered competitive with the Company Group or its business, and neither the Company Group nor any other Member will have any right by virtue of this Agreement or the relationship created hereby in or to such other venture or activity (or to the income or proceeds derived therefrom), and the pursuit of such other venture or activity will not be deemed wrongful or improper. Such right of the Members, the Managers, and their respective Affiliates does not require notice to, approval from, or other sharing with, any other Member or member of the Company Group. The legal doctrines of "corporate opportunity," "business opportunity," and similar doctrines will not be applied to any such competitive venture or activity of the Members, the Managers, and their respective Affiliates. Except as described herein, none of the Members, the Managers, or their respective Affiliates will have any obligation to the Company Group or any other Member with respect to any opportunity to expand the Company Group's business or affairs, whether geographically or otherwise.

Section 6.09.&nbsp;&nbsp;&nbsp;&nbsp;**No Recourse Against Nonparty Affiliates**. This Agreement may only be enforced against, and any claim based upon, arising out of, or related to this Agreement or the negotiation, execution, or performance of this Agreement may only be brought against, the Persons expressly party hereto, and then only with respect to the specific obligations set forth herein or therein with respect to such Persons. For further clarity, no past, present, or future director, officer, employee, incorporator, manager, member, partner, equityholder, Affiliate, agent, attorney, or other representative (in each case, in their capacities as such) of any Person party hereto or of any Affiliate of any Person party hereto, or any of their successors or permitted assigns, shall have any liability for any obligations or liabilities of any Member under this Agreement or for any claim based on, in respect of or by reason of the transactions contemplated hereby or thereby. Without limiting the foregoing, to the extent permitted by Law, (a) each Person party hereto hereby waives and releases all rights, claims, demands, or causes of action that may otherwise be available at Law or in equity, or granted by statute, to avoid or disregard the Entity form of any Person party hereto or otherwise impose liability of any Person party hereto on any other Person, whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham, single business enterprise, piercing the veil, unfairness, undercapitalization, or otherwise and (b) each Person party hereto disclaims any reliance upon any other Person not party hereto with respect to the performance

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of this Agreement or any representation or warranty made in, in connection with, or as an inducement to this Agreement.

Section 6.10.&nbsp;&nbsp;&nbsp;&nbsp;**Step-In Rights**. In the event of the occurrence of any Step-In Event, the Company shall deliver to Investor (on behalf of the Class A Members) prompt notice in writing of such event along with a proposed plan outlining the actions (and timeline) that the Company and/or Topco proposes to take to remedy such Step-In Event, which plan and timeline shall be subject to the Investor's written approval. If the Investor approves any remedial plan and timeline with respect to a Step-In Event, each Manager and other key personnel identified by the Investor shall, at the Investor's request at any time and from time to time, hold meetings with Investor to review the progress made in achieving the milestones and meeting the timeline set forth in the remedial plan and timeline approved by the Investor. In the event the Company is in material breach of its obligations under this Agreement which constitutes an intentional repudiation of its status as operator of the Project, then the Investor may remove any or all of the Managers from the Board and other positions held with the Company and any Subsidiary of the Company, and the Investor shall thereafter have the right, power and authority to designate any or replace all the Managers during the continuation of such repudiation.

Section 6.11.&nbsp;&nbsp;&nbsp;&nbsp;**Repayment of XRC Debt**. The Company shall, and the Board shall cause the Company to, use any Available Cash, Distributable Debt Proceeds (including net proceeds from any ITC bridge loan), and Distributable ITC Transfer Proceeds to repay all indebtedness under or pursuant to the XRC Loan Agreement in full before the end of the calendar year in which the assets of Cape Phase 1 WellCo are placed in service.

**ARTICLE VII**

**RIGHTS OF MEMBERS; CONFIDENTIALITY; BOOKS AND RECORDS**

Section 7.01.&nbsp;&nbsp;&nbsp;&nbsp;**Access to Information**. In addition to the other rights specifically set forth in this Agreement, the Investor, the Class B Member, and Holst (for so long as he remains professionally affiliated with Investor) will have access to all information to which a member of a limited liability company is entitled to have access pursuant to non-waivable provisions of the Act.

Section 7.02.&nbsp;&nbsp;&nbsp;&nbsp;**Financial Reports**. The Company will cause to be prepared or delivered such reports as the Board may request. Additionally, the Company shall furnish the following to the Investor, the Class B Member, and Holst (for so long as he remains professionally affiliated with Investor):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;within one hundred twenty (120) days after the end of each Fiscal Year: (i) a consolidated balance sheet of the Company and its Subsidiaries as of the end of such Fiscal Year and the related consolidated income statement, statement of Members' equity and statement of cash flows for such Fiscal Year, in each case, prepared in accordance with GAAP, (ii) an audited consolidated balance sheet of the Company and its Subsidiaries as of the end of such Fiscal Year and the related consolidated income statement, statement of Members' equity and statement of cash flows for such Fiscal Year, in each case, prepared in accordance with GAAP and a signed audit letter from the Company's auditors; and (iii) a copy of the reports from the Company's auditors pursuant to Statements of Auditing Standards 114 and 115 for such Fiscal Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;within forty-five (45) calendar days after the end of each fiscal quarter, an unaudited, consolidated balance sheet of the Company and its Subsidiaries as of the end of such quarter and an

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unaudited related statement of operations and statement of cash flows of the Company and its Subsidiaries for such quarter prepared in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;within forty-five (45) calendar days after the end of each month, consolidated monthly financial statements, including an unaudited balance sheet as of the end of the prior month and an unaudited related consolidated income statement, statement of cash flows and statement of members' equity of the Company and its Subsidiaries for such month prepared in accordance GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;promptly after the occurrence of any event that has had or could reasonably be expected to have a material adverse effect on the Company's business, operating results, or financial condition, notice of such event together with a summary describing the nature of the event and its impact on the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any other information that a Member may reasonably request.

Section 7.03.&nbsp;&nbsp;&nbsp;&nbsp;**Confidentiality**. Each Member, on behalf of itself, its Affiliates and its advisors, agrees that this Agreement, all understandings, agreements and other arrangements between and among the Members, and all other non-public information received from or otherwise relating to the Company Group or its business and affairs will be confidential, and will not be disclosed or otherwise released to any other Person (other than another Member), without Board approval, unless such disclosure or release is otherwise permitted pursuant to the terms of a separate agreement between the Company Group, on the one hand, and such Member, on the other; *provided*, *however*, that Investor, Holst or Fervo may disclose any of the above confidential information to its Affiliates and its and their potential and actual Transferees, lenders, investors, and representatives who are bound by confidentiality duties or obligations with respect thereto. The obligations of the Members hereunder will not apply to the extent that the disclosure of information otherwise determined to be confidential is required by Law; *provided*, *however*, that prior to disclosing such confidential information, to the extent practicable a Member must notify the Company thereof, which notice will include the basis upon which such Member believes the information is required to be disclosed. Each Member agrees that it will not use any such confidential information (x) in any way that would be reasonably expected to benefit any Competitor or (y) for any other purpose except in connection with its investment in the Company, including a potential sale or acquisition of its Units. Furthermore, Members and the Company acknowledge that Investor and its Affiliates' employees, directors, officers, and principals, including Holst, serve, or may in the future serve, as directors of direct or indirect portfolio companies (which will be deemed to include entities in which Investor or its Affiliates own any equity interests) of investment funds advised or managed by Investor or any of its Affiliates or any of their respective direct or indirect investors (collectively, the "<u>Excluded Entities</u>"), and that such employees, directors, officers, principals, and Excluded Entities will not be deemed to have used confidential information solely due to the dual roles of any such employee, director, officer, or principal, including Holst, or the use by such employee, director, officer, or principal, including Holst, of general industry information that is confidential information.

Section 7.04.&nbsp;&nbsp;&nbsp;&nbsp;**Press Releases**. No member of the Company Group nor any Member or Manager shall issue, or authorize to be issued, any press release, interview, article, or other media release (including an internet posting, web blog, or other electronic publication) that makes reference to this Agreement, the Members, Affiliates of the Members, or the transactions contemplated herein without the prior written consent of the Board and the Investor.

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Section 7.05.&nbsp;&nbsp;&nbsp;&nbsp;**Maintenance of Books and Records**. The books of account for the Company and other Company records will be located at the Company's principal office or such other place as the Board may deem appropriate, and will be maintained on an accrual basis in accordance with this Agreement, except that the Capital Accounts of the Members will be maintained in accordance with the definition of Capital Account.

Section 7.06.&nbsp;&nbsp;&nbsp;&nbsp;**Bank Accounts**. The Board will cause the Company to establish and maintain one or more separate bank or investment accounts for Company funds in the Company name with such financial institutions and firms as the Board may select and with such signatories thereon as the Board may designate.

Section 7.07.&nbsp;&nbsp;&nbsp;&nbsp;**Conflicts of Interest**. Notwithstanding anything to the contrary in this Agreement, the Company, as reasonably determined by a majority of the Managers, reserves the right to withhold any information from any Member and exclude any Manager from any meeting or portion thereof (collectively, an "<u>Exclusion</u>") if such Member's access to such information or attendance at such meeting could adversely affect the attorney-client privilege between the Company and its counsel or result in disclosure of trade secrets or a conflict of interest; *provided*, that the Company shall limit such Exclusion (including by use of redaction, executive sessions or similar techniques) as may be reasonably practicable in lieu of wholesale withholding of materials and/or exclusion from meetings.

**ARTICLE VIII**

**TAXES**

Section 8.01.&nbsp;&nbsp;&nbsp;&nbsp;**Tax Returns**. The Board will cause to be prepared and filed all necessary federal, state, and local income tax returns for the Company, and the Board will engage a nationally recognized accounting firm, or such other accounting firm as Investor (on behalf of the Class A Members) and the Class B Members mutually agree, to prepare the Company's federal and state income tax returns. Each Member will furnish to the Board all pertinent information in its possession relating to Company operations that is necessary to enable the Company's tax returns to be prepared and filed. The Company shall furnish to each Member an estimated IRS Form 1065, Schedule K-1 with respect to such Member no later than February 15th following each Fiscal Year and a final IRS Form 1065, Schedule K-1 with respect to such Member no later than August 15<sup>th</sup> following each Fiscal Year and will use commercially reasonable efforts to provide Members with the information necessary for each Member to calculate its obligation to make estimated payments of income taxes related to the ownership of such Member's Units on a timely basis.

Section 8.02.&nbsp;&nbsp;&nbsp;&nbsp;**Tax Elections; Tax Credit Transfers; Begin Construction**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Elections by the Company</u>. The Company will make the following elections in the appropriate manner:

&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)&nbsp;&nbsp;&nbsp;&nbsp;to adopt the Company's Fiscal Year set forth in <u>Section 2.06</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;to adopt the accrual method of accounting;

&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)&nbsp;&nbsp;&nbsp;&nbsp;to elect to amortize the Company's start-up expenses under Code Section 195 ratably over a period of one hundred eighty (180) months as permitted by Code Section 195(b);

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&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)&nbsp;&nbsp;&nbsp;&nbsp;to elect to amortize the Company's organization expenses under Code Section 709 ratably as permitted by Code Section 709(b);

&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)&nbsp;&nbsp;&nbsp;&nbsp;to claim the ITC in respect of the relevant assets of Cape Phase 1 WellCo; *provided that*, to the extent any structuring contemplated pursuant to <u>Section 8.04(a)</u> is implemented, the Blocker shall make such election rather than 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;(vi)&nbsp;&nbsp;&nbsp;&nbsp;to cause the Project Company to claim the PTC with respect to its applicable assets; 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)&nbsp;&nbsp;&nbsp;&nbsp;subject to <u>Section 6.02(o)</u> and Section 8.02(b), any other election the Board may deem appropriate and in the best interests of the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Credit Transfers</u>. The Company hereby covenants and agrees to use commercially reasonable efforts to transfer (and cause the Blocker or Project Company to transfer, as applicable) any "eligible credits" (as defined in Section 6418(f)(1) of the Code) generated by the Company (or, if applicable, the Blocker) and the Project Company, respectively, with respect to their respective assets and operations pursuant to Section 6418 of the Code, and to use commercially reasonable efforts to take (and cause the Blocker or Project Company to take) any and all reasonable actions, and make (and cause the Project Company to make), any and all elections required of the Company (or the Blocker or Project Company, as applicable) in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Begin Construction</u>. The Company and Fervo represent and warrant to Investor and Holst that the "safe harbor" "begin construction" date with respect to the ITC and PTCs that will be claimed in respect of the Project is prior to January 1, 2025, but no earlier than January 1, 2023, and the Company covenants and agrees to take (and cause the Project Company to take) any and all commercially reasonable actions necessary to preserve such "safe harbor" "begin construction" date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Elections by Members</u>. If any Member makes any Tax election that requires the Company to furnish information to such Member to enable such Member to compute its own Tax liability, or requires the Company to file any Tax return or report with any Taxing authority, in either case, that would not be required in the absence of such election made by such Member, the Company may, as a condition to furnishing such information or filing of such return or report, require such Member to pay to the Company any reasonable incremental expenses incurred in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Status of the Company</u>. It is the intent of the Members that the Company be treated as a partnership, and Cape Phase 1 WellCo, be treated as an entity disregarded as separate from the Company, for federal income tax purposes and, to the extent permitted by Law, for state and local franchise and income tax purposes. Except in connection with a conversion of the Company as contemplated by <u>Section 4.03</u> (but subject to <u>Section 6.02(o))</u> or otherwise contemplated by <u>Section 8.04</u>, neither the Company nor any Member may make an election for the Company, Cape Phase 1 WellCo or any other Subsidiary to be treated as a corporation, and no term of this Agreement will be construed to sanction or approve such an election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Treatment of Royalty Payments</u>.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto acknowledge and agree that solely for federal and state income tax purposes, Investor and Holst shall continue to be treated as a partner of the Company until it has received the last payment to which it is entitled pursuant to <u>Section 4.08</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Any amount paid to the Investor or Holst pursuant to <u>Section 4.08</u> shall be treated as a distributive share of items of the Company's Profit pursuant to Section 736(a)(1) of the Code (and not as a guaranteed payment pursuant to Section 736(a)(2) of the Code, as determined under Treasury Regulations Section 1.707-1(c)), unless otherwise required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 754 Election</u>. To the extent an election under Code Section 754 is not already in effect for the Company, the Company shall make the election provided by Code Section 754 in accordance with Treasury Regulations Section 1.754-1(b) for its taxable year that includes the Effective Date or whenever requested by any Member.

Section 8.03.&nbsp;&nbsp;&nbsp;&nbsp;**Partnership Representative**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;From time to time, the Board shall designate a Person to act as the Partnership Representative within the meaning of Code Section 6223 and in a similar capacity under any other applicable Tax Law; *provided*, *however*, that Fervo shall be designated as the Partnership Representative as of and after the Effective Date, unless otherwise determined by the Board, and for each taxable year of the Company, the Company shall appoint an individual subject to the control of the Partnership Representative (the "<u>Designated Individual</u>") meeting the requirements of Treasury Regulations Section 301.6223-1(b)(3) as the person authorized to represent the Partnership Representative in audits and other proceedings governed by the partnership audit procedures set forth in Subchapter C of Chapter 63 of the Code as amended by the Bipartisan Budget Act of 2015 (the "<u>Revised Partnership Audit Rules</u>") and shall revoke such appointment if such individual ceases to be subject to the control of the Partnership Representative. The Partnership Representative and Designated Individual shall have all rights, authority, and power, and shall be subject to all obligations, of a partnership representative to the extent provided in the Code and the Treasury Regulations or other Law and shall represent the Company in all Tax matters to the extent determined by the Board and allowed by Law. Each of the Partnership Representative and Designated Individual shall use its commercially reasonable efforts to minimize the financial burden of any partnership adjustment to each Member and former Member holding Membership Interests during the reviewed fiscal year, to the extent allowed by Law, through the application of the procedures established pursuant to Section 6225(c) of the Code, and/or through an election and the furnishing of statements pursuant to Section 6226 of the Code, and each Member (and each former Member) agrees to use commercially reasonable efforts to cooperate with the Partnership Representative and Designated Individual and do or refrain from doing any or all things reasonably requested by the Partnership Representative or Designated Individual (including paying such Member's allocable share of any and all resulting taxes, additions to tax, penalties and interest in a timely fashion) in connection with any audit or examination of the Company's affairs by any federal, state or local tax authorities, including resulting administrative and judicial proceedings; *provided*, *however*, that no Member shall have an obligation to file any amended tax return. The Partnership Representative and Designated Individual shall use commercially reasonable efforts to (i) comply with any reasonable request of a Member to modify any adjustment by any taxing authority of any item of income, gain, loss, deduction or credit of the Company under Section 6225(a) of the Code (or any similar provision of state or local law) attributable to such Member by application of Section 6225(c) of the Code (or any similar provision

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of state or local law) and (ii) to allocate the benefit of any such modification to the appropriate Member; *provided*, *however*, that such Member provide all information reasonably requested by the Partnership Representative and Designated Individual in connection therewith. Expenses incurred by the Partnership Representative or a Person acting in a similar capacity as set forth in this <u>Section 8.03</u> shall be borne by the Company. Such expenses shall include fees of attorneys and other Tax professionals, accountants, appraisers, and experts, filing fees, and reasonable out-of-pocket costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 8.03(c)</u>, the Partnership Representative and Designated Individual shall not (i) settle any material Tax matter that disproportionately adversely impacts the Investor or Holst, (ii) extend the period of limitations for the assessment or collection of any Tax or (iii) choose or change the forum for such contest, without the prior written consent of the Investor, which consent shall not be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Partnership Representative and Designated Individual shall keep the Members fully informed of any material federal, state or local Tax inquiry, examination or proceeding, including promptly notifying the Members of the beginning and completion of a material federal, state or local Tax administrative or judicial proceeding involving the Company and promptly informing the Members of any tax deficiencies assessed by any taxing authority against the Company or the Members, in each case, promptly upon such notice being received by the Partnership Representative or Designated Individual. Each Member does hereby agree to indemnify and hold harmless the Company from and against any liability with respect to its share of any tax deficiency paid or payable by the Company that is allocable to the Member (as reasonably determined by the Board) with respect to an audited or reviewed taxable year for which such Member was a Member (for the avoidance of doubt, but subject to <u>Section 6.05(a)</u> hereof, including any applicable interest and penalties); such obligation will survive such Member's ceasing to be a Member and/or the termination, dissolution, liquidation and winding up of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The provisions contained in this <u>Section 8.03</u> shall survive the termination of the Company and the Transfer of any Membership Interest.

Section 8.04.&nbsp;&nbsp;&nbsp;&nbsp;**Additional ITC Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If, prior to the date on which the applicable assets of Cape Phase 1 WellCo are placed in service, (i) the Company determines in good faith, based on written advice of its tax return preparer (that Investor determines in good faith is reasonably satisfactory to Investor), that it is reasonably likely that the ITCs generated by such assets will be reduced or subject to a material risk of recapture absent a material change to the agreed economics reflected in this Agreement or (ii) any lender or potential lender requires or otherwise conditions the full receipt of loan proceeds or the entry into definitive loan documents on the use of a Blocker, the Company shall be permitted to cause the applicable assets of Cape Phase 1 WellCo to be held by the Company through an entity that is classified as a corporation for U.S. federal income tax purposes, including by interposing an intermediate entity or causing Cape Phase 1 WellCo to elect to be taxed as a corporation for U.S. federal income tax purposes) (a "<u>Blocker</u>"); subject to consulting in good faith with Investor (on behalf of the Class A Members) and lender or potential lender, as applicable, regarding and considering reasonable alternative arrangements that minimize the overall financial impact (including tax liability) to each Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;During the ITC Recapture Period (unless a determination under Section 8.04(a) has been made to interpose a Blocker, neither the Company nor any Subsidiary shall issue any new

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nonrecourse debt with respect to the assets of Cape Phase 1 WellCo (which, for the avoidance of doubt, shall not include any ITC bridge loan or construction loan entered into prior to Final Completion) unless the Company determines in good faith, that the lender of such nonrecourse debt is a "qualified person" as such term is defined in Section 49(a)(1)(D)(iv) of the Code; *provided that* the Investor and Holst shall provide to the Company any representations required to confirm that such lender and the Investor and Holst are not related as contemplated by Section 49(a)(1)(D)(iv)(I) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Prior to the date that the assets of Cape Phase 1 WellCo are placed in service (unless a determination under <u>Section 8.04(a)</u> has been made to interpose a Blocker), Fervo and the Investor (on behalf of the Class A Members) agree to use good faith efforts to work with their applicable tax advisors to agree on revisions to this Agreement (including by making appropriate adjustments to allocations of Profits and Losses, Capital Accounts and liquidating distributions) in a manner that (i) preserves the Class A Members' intended economic entitlements hereunder, (ii) minimizes the risk of a material amount of recapture of ITCs to any Member (or its direct or indirect owners), and (iii) to extent permitted by applicable Law, that minimizes any discrepancy between the allocation of items described in <u>Section 5.02(b)(xi)</u> hereof to a Member and the economic entitlements of such Member pursuant to this Agreement giving rise to such items.

**ARTICLE IX**

**DISSOLUTION, LIQUIDATION AND TERMINATION**

Section 9.01.&nbsp;&nbsp;&nbsp;&nbsp;**Dissolution**. Subject to <u>Section 6.02(o)</u>, the Company will dissolve and its affairs will be wound up upon the first to occur of either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;approval of all the Managers; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any other event causing dissolution of the Company under the Act;

*provided*, *however*, that, upon dissolution pursuant to <u>Section 9.01(b)</u>, any remaining Members may elect to continue the Company's business within ninety (90) days after the occurrence of the event causing such dissolution. The death, resignation, withdrawal, bankruptcy, insolvency, or expulsion of any Member will not dissolve the Company.

Section 9.02.&nbsp;&nbsp;&nbsp;&nbsp;**Liquidation and Termination**. On dissolution of the Company, the Board may appoint one or more Persons as liquidator(s). The liquidator will proceed diligently to wind up the Company's affairs and make final distributions as provided herein. The costs of liquidation will be borne as a Company expense. Until final distribution, the liquidator will continue to operate the Company properties with all power and authority of the Members. The steps to be accomplished by the liquidator are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;as promptly as possible after dissolution and again after final liquidation, the liquidator will cause a proper accounting to be made by a recognized firm of certified public accountants of the Company's assets, liabilities, and operations through the last day of the calendar month in which the dissolution occurs or the final liquidation is completed, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the liquidator will pay from Company funds all of the Company's debts and liabilities (including all expenses incurred in liquidation) or otherwise make adequate provision therefor

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(including the establishment of a cash escrow fund for contingent liabilities in such amount and for such term as the liquidator may reasonably determine); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Company will dispose of all remaining assets 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)&nbsp;&nbsp;&nbsp;&nbsp;the liquidator may sell any Company property, and any resulting gain or loss from each sale will be computed and allocated to the Members pursuant to <u>Section 5.02</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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;without duplication of the adjustments required pursuant to the definition of Gross Asset Value, with respect to all Company property that has not been sold, the Fair Market Value of that property will be determined and the Capital Accounts of the Members will be adjusted to reflect the manner in which the unrealized income, gain, loss, and deduction inherent in such property that has not been reflected in the Capital Accounts previously would be allocated among the Members if there were a Taxable sale of such property for the Fair Market Value of such property on the date of distribution; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;thereafter, Company property will be distributed among the Members in accordance with <u>Section 5.01(a)</u>. All distributions made pursuant to this <u>Section 9.02(c)(iii)</u> will be made, to the extent reasonably practicable, by the end of such Fiscal Year (or, if later, within ninety (90) days after the date of such liquidation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;All distributions in kind to the Members will be valued at Fair Market Value, as determined by the liquidator, and made subject to the liability of each distributee for its allocable share of costs, expenses, and liabilities theretofore incurred or for which the Company has committed prior to the date of termination and those costs, expenses, and liabilities will be allocated to the distributee pursuant to this <u>Section 9.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, each Member will receive an undivided interest in any Company property distributed in kind to the Members, and each Member's proportionate interest in such distributed property will be determined based upon the proportionate amount of cash distributions such Member would receive in liquidation of the Company, if the liquidator (i) sold all Company properties for cash (in amounts equal to their respective Fair Market Values), (ii) satisfied all Company liabilities (limited with respect to any Company nonrecourse liabilities to the Fair Market Value of the property securing such liabilities), and (iii) distributed the proceeds from such sale and any other cash on hand to the Members pursuant to <u>Section 5.01(a)</u>.

Section 9.03.&nbsp;&nbsp;&nbsp;&nbsp;**Cancellation of Filing**. On completion of the distribution of Company assets as provided herein, the Company will be terminated and the Board (or such other Person or Persons as may be authorized or required) will cause the cancellation of any other filings previously made on behalf of the Company and will take such other actions as may be necessary to terminate the Company.

**ARTICLE X**

**GENERAL TERMS**

Section 10.01.&nbsp;&nbsp;&nbsp;&nbsp;**Notices**. All notices, requests, or consents provided for or permitted to be given under this Agreement will be in writing (including writing transmitted as provided in <u>Section 10.14</u>) and will be given (a) by depositing such writing with a reputable overnight courier for next day delivery, or (b) by delivering such writing to the recipient in person, by courier or

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by email transmission. A notice, request or consent given under this Agreement will be effective on receipt by the Person to receive it except that a notice, request, or consent given by email transmission will be effective when sent. All notices, requests, and consents to be sent to a Member will be sent to or made at the addresses given for that Member on the list on <u>Schedule 1</u> or such other address as that Member may specify by notice to the other Members.

Section 10.02.&nbsp;&nbsp;&nbsp;&nbsp;**Entire Agreement; Supersedure; Third-Party Beneficiaries**. This Agreement, together with the agreements entered into in connection herewith, constitutes the entire agreement of the Members relating to the Company and supersedes all prior contracts or agreements with respect to the Company, whether oral or written. Notwithstanding any other term of this Agreement, the Company may, upon approval of the Board, enter into agreements or other writings with any Member in respect of the Units of such Member, and the rights of the Company and obligations of such Member set forth in any such agreement or writing may establish rights in favor of the Company or such Member or limit the rights of the Company or such Member. Nothing in this Agreement, express or implied, is intended to confer upon any Person other than the parties hereto and their respective successors, personal representatives, and permitted assigns, any rights or remedies under or by reason of this Agreement; *provided*, *however*, that (a) the Board, Company Group officers, and former Managers and Company Group officers are intended to be third-party beneficiaries of <u>Sections 6.05</u>, <u>6.06</u>, <u>6.07</u>, <u>6.08</u>, and <u>6.09</u>, with rights to enforce such terms as though a party to this Agreement and (b) the Persons described in <u>Section 6.09</u> are intended to be third-party beneficiaries with rights to enforce <u>Section 6.09</u> as though a party to this Agreement.

Section 10.03.&nbsp;&nbsp;&nbsp;&nbsp;**Effect of Waiver or Consent**. A waiver or consent, express or implied, to or of any breach or default by any Person in the performance by such Person of its obligations with respect to the Company will not constitute a consent or waiver to or of any other breach or default in the performance by that Person of the same or any other obligations of that Person with respect to the Company. Failure on the part of a Person to complain of any act of any Person or to determine any Person to be in default with respect to the Company, irrespective of how long such failure continues, will not constitute a waiver by that Person of its rights with respect to that default until the applicable limitations period has expired.

Section 10.04.&nbsp;&nbsp;&nbsp;&nbsp;**Amendment or Modification**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise set forth in this Agreement, this Agreement may be amended or modified from time to time only by a written instrument that is adopted by Fervo and the Members holding a majority of the Class A Units; *provided*, *however*, that, subject to <u>Section 10.04(b)</u>, (i) any such amendment that materially and disproportionately adversely affects any Class A Member as compared to the impact of such amendment on other Members will require the consent of such Class A Member, (ii) any such amendment that requires any Member to make a Capital Contribution to the Company not contemplated by <u>Section 3.03(b)</u> or to which such Member has not otherwise agreed in writing will require the consent of such Member, and (iii) any such amendment that alters <u>Section 4.02</u>, <u>Section 6.02(o)</u>, <u>8.02(a)</u>-<u>(c)</u> or <u>Section 9.01</u>, this <u>Section 10.04</u> or any other provision of this Agreement that provides an express consent right to Investor (or any Manager appointed by Investor) will require the consent of Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, no Member approval is required for any amendment made by the Board (i) to <u>Schedule 1</u> in accordance with <u>Section 3.01</u> or <u>Section 3.03(b)(v)</u>, (ii) in connection with the creation and issuance of additional or different classes or series of Units approved in accordance with this Agreement or (iii) in connection with an Internal

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Restructuring approved in accordance with this Agreement and effected in accordance with <u>Section 4.03</u>.

Section 10.05.&nbsp;&nbsp;&nbsp;&nbsp;**Survivability of Terms**. <u>Sections 3.09</u>, <u>5.03</u>, <u>6.05</u>, <u>6.06</u>, <u>6.07</u>, <u>6.08</u>, <u>6.09</u>, and <u>7.03</u>, and <u>Articles VIII</u> and <u>X</u> shall survive any termination of this Agreement (and the withdrawal of any Member) and will be construed as agreements independent of any other terms of this Agreement.

Section 10.06.&nbsp;&nbsp;&nbsp;&nbsp;**Binding Effect**. Except in accordance with a Transfer of Units permitted hereunder, this Agreement may not be assigned by any party hereto, and any purported assignment that is not pursuant to a Transfer of Units permitted hereunder shall be void and of no force and effect. Subject to the restrictions on Transfer set forth in this Agreement, this Agreement will be binding on and inure to the benefit of the Members and their respective heirs, legal representatives, trustees, successors, and assigns.

Section 10.07.&nbsp;&nbsp;&nbsp;&nbsp;**Governing Law; Severability**. This Agreement is governed by and will be construed in accordance with the Laws of the State of Delaware, excluding any conflict-of-Laws rule or principle (whether under the Laws of Delaware or any other jurisdiction) that might refer the governance or the construction of this Agreement to the Laws of another jurisdiction. If any term of this Agreement or its application to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of such term to other Persons or circumstances will not be affected thereby, and such term will be enforced to the extent permitted by applicable Law.

Section 10.08.&nbsp;&nbsp;&nbsp;&nbsp;**Dispute Resolution; Consent to Jurisdiction; Waiver of Jury Trial**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Any controversy, dispute or claim, whether based on contract, tort, statute or other legal or equitable theory (including any claim of fraud, misrepresentation or fraudulent inducement or any question of validity or effect of this Agreement) between the Members arising out of or related to or in connection with this Agreement, any transactions arising under this Agreement or the breach of this Agreement (each a "<u>Dispute</u>") shall be exclusively and finally settled in accordance with this <u>Section 10.08</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The parties to any Dispute shall first attempt in good faith to resolve such Dispute by mutual discussion and agreement within thirty (30) days after the date that one party to the Dispute gives written notice of such Dispute to the Company and each other party to the Dispute. If the Dispute is not resolved within thirty (30) days after receipt of such notice, it may be submitted to the state and federal courts of the State of Delaware in accordance with <u>Section 10.08(c)-(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;EACH PARTY HERETO VOLUNTARILY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE LOCATED IN WILMINGTON, DELAWARE (OR IF SUCH COURTS SHALL NOT HAVE JURISDICTION, ANY UNITED STATES STATE OR FEDERAL COURT SITTING IN THE STATE OF DELAWARE) FOR ANY DISPUTE, AND HEREBY IRREVOCABLY AGREES THAT SUCH DISPUTE MAY BE HEARD AND DETERMINED IN SUCH DELAWARE STATE OR U.S. FEDERAL COURT. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO VENUE OR ANY DEFENSE OF INCONVENIENT FORUM FOR THE MAINTENANCE OF ANY ACTION WITH RESPECT TO SUCH DISPUTE. EACH PARTY

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HERETO FURTHER AGREES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THAT A FINAL AND NONAPPEALABLE JUDGMENT AGAINST ANY PARTY HERETO IN ANY ACTION WITH RESPECT TO ANY DISPUTE SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION WITHIN OR OUTSIDE THE UNITED STATES BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW, A CERTIFIED COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE OF THE FACT AND AMOUNT OF SUCH JUDGMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;EACH PARTY HERETO HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION WITH RESPECT TO ANY DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY HERETO CERTIFIES THAT HIS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH IN THIS <u>Section 10.09</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;IT IS THE INTENT OF THE PARTIES THAT IN THE EVENT ANY PARTY HAS THE RIGHT TO BRING OR TO PARTICIPATE IN ANY LAWSUIT BROUGHT AS A CLASS ACTION, COLLECTIVE ACTION OR IN A REPRESENTATIVE CAPACITY AGAINST EACH OTHER OR THE COMPANY IN CONNECTION WITH ANY CLAIM ARISING OUT OF, CONNECTED WITH OR RELATING IN ANY WAY TO THE COMPANY'S BUSINESS OR AFFAIRS OR TO THIS AGREEMENT, THE RIGHT TO BRING OR PARTICIPATE IN THE CLASS ACTION LAWSUIT IS EXPRESSLY WAIVED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any party hereto (including assignees of any party's rights or obligations under this Agreement) may be entitled, in any jurisdiction, to claim for itself or its revenues, assets, or properties, immunity from service of process, from suit, from the jurisdiction of any court, from an interlocutory order or injunction or the enforcement of the same against its property in such court, from attachment prior to judgment, from attachment in aid of execution of an arbitral award or judgment (interlocutory or final), or from any other legal process, and to the extent that, in any such jurisdiction there may be attributed such immunity (whether claimed or not), each party hereto hereby irrevocably agrees not to claim, and hereby irrevocably waives, such immunity.

Section 10.09.&nbsp;&nbsp;&nbsp;&nbsp;**Specific Performance**. The Members understand and agree that (a) irreparable damage would occur in the event that any provision of this Agreement were not performed in accordance with its specific terms, (b) although monetary damages may be available for the breach of such covenants and agreements, such monetary damages are not intended to and do not adequately compensate for the harm that would result from a breach of this Agreement, would be an inadequate remedy therefor and shall not be construed to diminish or otherwise impair in any respect any Member's or the Company's right to specific performance and (c) the right of specific performance is an integral part of the transactions contemplated by this Agreement and without that right none of the Members would have entered into this Agreement. It is accordingly agreed that, in addition to any other remedy that may be available to it, including monetary damages, each of the Members and the Company shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement. Each of the Members further agrees that no Member nor the Company shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this

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<u>Section 10.09</u>, and each Member waives any objection to the imposition of such relief or any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

Section 10.10.&nbsp;&nbsp;&nbsp;&nbsp;**Offset**. Whenever the Company is to pay any sum to any Member or its Affiliates, any debts, liabilities, or amounts as determined by the Board in good faith to be owed by such Member or its Affiliates to the Company Group may be deducted from such sum before payment and applied to offset such debts liabilities or amounts.

Section 10.11.&nbsp;&nbsp;&nbsp;&nbsp;**Further Assurances**. In connection with this Agreement and the transactions contemplated hereby, each Member will execute and deliver any additional agreements, documents, and instruments and perform any additional acts that may be necessary, appropriate or desirable to effectuate and perform the terms of this Agreement and such transactions, including voting for, consenting to, and raising no objections to any transaction contemplated hereby and waiving any dissenters' rights, appraisal rights, or similar rights in connection therewith.

Section 10.12.&nbsp;&nbsp;&nbsp;&nbsp;**Waiver of Certain Rights**. To the extent permitted by Law, each Member irrevocably waives any right it might have to maintain any action for dissolution of the Company or to maintain any action for partition of the Company's property.

Section 10.13.&nbsp;&nbsp;&nbsp;&nbsp;**Counterparts**. This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts will be construed together and constitute the same instrument.

Section 10.14.&nbsp;&nbsp;&nbsp;&nbsp;**Electronic Transmissions**. Each of the parties hereto agrees that (a) any signed document transmitted by electronic transmission shall be treated in all manner and respects as an original written document, (b) any such document shall be considered to have the same binding and legal effect as an original document, and (c) at the request of any party hereto, any such document shall be re-delivered or re-executed, as appropriate, by the relevant party or parties in its original form. Each of the parties hereto further agrees that they will not raise the transmission of a document by electronic transmission as a defense in any proceeding or action in which the validity of such consent or document is at issue and hereby forever waives such defense. For purposes of this Agreement, the term "electronic transmission" means any form of communication not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process. The use of an electronic signature to conduct a transaction, indicate the execution of an agreement or provide notice or other form of communication is expressly authorized.

[*Signature Pages Follow*]

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IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of the Effective Date.

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| | |
|:---|:---|
| COMPANY: | COMPANY: |
| CAPE PHASE 1 INTERMEDIATE HOLDCO,<br>LLC | CAPE PHASE 1 INTERMEDIATE HOLDCO,<br>LLC |
| By: | /s/ Timothy Latimer |
| Name: | Timothy Latimer |
| Title: | Manager |
| MEMBERS: | MEMBERS: |
| CAPE HOLDCO LLC | CAPE HOLDCO LLC |
| By: | /s/ Timothy Latimer |
| Name: | Timothy Latimer |
| Title: | Manager |

---

(*Signature Page to Second Amended and Restated Limited Liability Company Agreement*

*of Cape Phase 1 Intermediate HoldCo LLC*)

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---

| | |
|:---|:---|
| CENTAURUS CAPITAL LP | CENTAURUS CAPITAL LP |
| By: Centaurus Holdings, LLC, its general partner | By: Centaurus Holdings, LLC, its general partner |
| By: | /s/ John D. Arnold |
| Name: | John D. Arnold |
| Title: | Manager |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Keith Holst | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Keith Holst |
| KEITH HOLST | KEITH HOLST |

---

(*Signature Page to Second Amended and Restated Limited Liability Company Agreement*

*of Cape Phase 1 Intermediate HoldCo LLC*)

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**<u>Schedule 1</u>**

[\*\*\*]

Schedule 1

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**<u>Schedule 2</u>**

**Sharing Ratios**

[\*\*\*]

Schedule 2

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**<u>Exhibit A</u>**

**<u>Distributions</u>**

<u>Section 1</u>.&nbsp;&nbsp;&nbsp;&nbsp;**Distributions of Available Cash**. All distributions of Available Cash shall be distributed on a quarterly basis to the Members 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)&nbsp;&nbsp;&nbsp;&nbsp;In the case that, as of the date that the ITC Assets have been Placed in Service, the Company Group has not raised Term Debt, then (x) from the Effective Date until June 30, 2028 (the "<u>Date of Determination</u>"), if the Transmission Condition has not been satisfied by the Date of Determination, otherwise (y) from the Effective Date until the Third Flip 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;*first*, in respect of any distributions to be made by the Company prior to the First Flip Date, (A) the percentage equal to the CC First Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; provided that if there was a Class A Shortfall on the last day of a Fiscal Year, then Available Cash in the next Fiscal Year will be distributed 100% to the Class A Members *pro rata* in accordance with their respective Class A Units as of such time until the Class A Shortfall has been eliminated, after which distributions will resume in the then applicable cash sharing ratios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;*second*, in respect of any distributions to be made by the Company on or after the First Flip Date and prior to the Second Flip Date, (A) the percentage equal to the CC Second Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; provided that if there was a Class A Shortfall on the last day of a Fiscal Year, then Available Cash in the next Fiscal Year will be distributed 100% to the Class A Members *pro rata* in accordance with their respective Class A Units as of such time until the Class A Shortfall has been eliminated, after which distributions will resume in the then applicable cash sharing ratios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;*third*, in respect of any distributions to be made by the Company on or after the Second Flip Date and prior to the Third Flip Date, (A) the percentage equal to the CC Third Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; 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;(D)&nbsp;&nbsp;&nbsp;&nbsp;*thereafter*, in respect of any distributions to be made by the Company on or after the Third Flip Date, to the Members, other than the Class A Members, *pro rata* in accordance with the number of Units (other than Class A Units) held by each such Member.

Exhibit A - 1

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&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)&nbsp;&nbsp;&nbsp;&nbsp;In the case that, as of the date that the ITC Assets have been Placed in Service, the Company Group has (x) raised Term Debt in an amount of at least $200,000,000, or (y) raised Term Debt in an amount less than $200,000,000 and the Transmission Condition has been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;*first*, in respect of any distributions to be made by the Company prior to the First Flip Date, (A) the percentage equal to the CC First Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; provided that if there was a Class A Shortfall on the last day of a Fiscal Year, then Available Cash in the next Fiscal Year will be distributed 100% to the Class A Members *pro rata* in accordance with their respective Class A Units as of such time until the Class A Shortfall has been eliminated, after which distributions will resume in the then applicable cash sharing ratios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;*second*, in respect of any distributions to be made by the Company on or after the First Flip Date and prior to the Second Flip Date, (A) the percentage equal to the CC Second Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; provided that if there was a Class A Shortfall on the last day of a Fiscal Year, then Available Cash in the next Fiscal Year will be distributed 100% to the Class A Members *pro rata* in accordance with their respective Class A Units as of such time until the Class A Shortfall has been eliminated, after which distributions will resume in the then applicable cash sharing ratios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;*third*, in respect of any distributions to be made by the Company on or after the Second Flip Date and prior to the Third Flip Date, (A) the percentage equal to the CC Third Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; 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;(D)&nbsp;&nbsp;&nbsp;&nbsp;*thereafter*, in respect of any distributions to be made by the Company on or after the Third Flip Date, to the Members, other than the Class A Members, *pro rata* in accordance with the number of Units (other than Class A Units) held by each such Member.

&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)&nbsp;&nbsp;&nbsp;&nbsp;After the Date of Determination, in the case that, as of the Date of Determination, both (x) the Company Group has not raised Term Debt in an amount of at least $200,000,000 and (y) the Transmission Condition has not been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;*first*, in respect of any distributions to be made by the Company prior to the First Flip Date, (A) the percentage equal to the CC First Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A

Exhibit A - 2

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Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; provided that if there was a Class A Shortfall on the last day of a Fiscal Year, then Available Cash in the next Fiscal Year will be distributed 100% to the Class A Members *pro rata* in accordance with their respective Class A Units as of such time until the Class A Shortfall has been eliminated, after which distributions will resume in the then applicable cash sharing ratios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;*second*, in respect of any distributions to be made by the Company on or after the First Flip Date and prior to the Second Flip Date, (A) the percentage equal to the CC Second Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; provided that if there was a Class A Shortfall on the last day of a Fiscal Year, then Available Cash in the next Fiscal Year will be distributed 100% to the Class A Members *pro rata* in accordance with their respective Class A Units as of such time until the Class A Shortfall has been eliminated, after which distributions will resume in the then applicable cash sharing ratios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;*third*, in respect of any distributions to be made by the Company on or after the Second Flip Date and prior to the Third Flip Date, (A) the percentage equal to the CC Third Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time and (B) the percentage equal to the Fervo Cash Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time; 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;(D)&nbsp;&nbsp;&nbsp;&nbsp;*thereafter*, in respect of any distributions to be made by the Company on or after the Third Flip Date, to the Members, other than the Class A Members, *pro rata* in accordance with the number of Units (other than Class A Units) held by each such Member.

<u>Section 2</u>.&nbsp;&nbsp;&nbsp;&nbsp;**Distributions of Distributable DR Proceeds**. Notwithstanding <u>Section 1</u> of this <u>Exhibit A</u>, in the event that a Debt Recap occurs prior to Final Completion, the Board shall cause the Company to distribute all Distributable DR Proceeds to the Members as follows: (A) the percentage equal to the CC Debt Recap Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time (the total amount distributed to the Class A Members pursuant to this <u>Section 2</u> of this <u>Exhibit A</u>, the "<u>CC DR Distribution</u>") and (B) the percentage equal to the Fervo Debt Recap Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time. The CC DR Distribution shall be subdivided into a DR MOIC Distribution and Base DR Distribution.

<u>Section 3</u>.&nbsp;&nbsp;&nbsp;&nbsp;**Distributions of Distributable ITC Transfer Proceeds**. Notwithstanding <u>Section 1</u> of this <u>Exhibit A</u>, the Board shall cause the Company to distribute all Distributable ITC Transfer Proceeds to the Members as follows: (A) the percentage equal to the CC ITC Transfer Sharing Ratio to each holder of Class A Units *pro rata* in accordance with their respective Class A Units as of such time (the total amount distributed to the Class A Members pursuant to this

Exhibit A - 3

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<u>Section 3</u> of this <u>Exhibit A</u>, the "<u>CC ITC Distribution</u>") and (B) the percentage equal to the Fervo ITC Transfer Sharing Ratio to each holder of Class B Units *pro rata* in accordance with their respective Class B Units as of such time. The CC ITC Distribution shall be subdivided into a ITC MOIC Distribution and Base ITC Distribution.

<u>Section 4</u>.&nbsp;&nbsp;&nbsp;&nbsp;**Definitions**. As used in this <u>Exhibit A</u>, the following terms have the following meanings; provided that capitalized terms used in this <u>Exhibit A</u> but not otherwise defined in this <u>Section 4</u> shall have the meanings given to them in the Agreement.

"<u>Accumulation Factor</u>" means the amount determined in accordance with the following formula: (1 + Second Flip IRR)^(Payment Date – Effective Date) ÷ 365.

"<u>Base DR Distribution</u>" means an amount equal to (i) the CC DR Distribution, *minus* (ii) the DR MOIC Distribution.

"<u>Base ITC Distribution</u>" means an amount equal to (i) the CC ITC Distribution, *minus* (ii) the ITC MOIC Distribution.

"<u>Cash Sharing Ratio</u>" means (a) with respect to the Class A Members, the applicable CC Cash Sharing Ratio, and (b) with respect to the Class B Members, the Fervo Cash Sharing Ratio.

"<u>CC Cash Sharing Ratio</u>" means (i) prior to the First Flip Date, the CC First Sharing Ratio; (ii) after the First Flip Date and prior to the Second Flip Date, the CC Second Sharing Ratio; (iii) after the Second Flip Date and prior to the Third Flip Date, the CC Third Sharing Ratio; and (iv) after the Third Flip Date, 0%.

"<u>CC Debt Recap Sharing Ratio</u>" means the CC First Sharing Ratio.

"<u>CC DR Distribution</u>" has the meaning set forth in <u>Section 2</u> of this <u>Exhibit A</u>.

"<u>CC First Sharing Ratio</u>" means the applicable percentage determined in accordance with <u>Schedule 2</u> of the Agreement.

"<u>CC ITC Distribution</u>" has the meaning set forth in <u>Section 3</u> of this <u>Exhibit A</u> .

"<u>CC ITC Transfer Sharing Ratio</u>" means the CC First Sharing Ratio.

"<u>CC Second Sharing Ratio</u>" means the applicable percentage determined in accordance with <u>Schedule 2</u> of the Agreement.

"<u>CC Third Sharing Ratio</u>" means the applicable percentage determined in accordance with <u>Schedule 2</u> of the Agreement.

"<u>Class A Unpaid Capital Amount</u>" means, for any Class A Unit at any time, the amount of Class A Capital Contributions attributable to the acquisition of such Class A Unit, reduced by the aggregate amount of all distributions (exclusive of any DR MOIC Distribution and/or ITC MOIC Distribution by the Company, which shall not be included as distributions by the Company for

Exhibit A - 4

------

purposes of this definition) made by the Company in respect of such Class A Unit prior to such time.

"<u>Debt Recap</u>" means the entry by the Company or the Project Company into one or more Term Loan financing agreements that (i) closes on or after the Effective Date and prior to Final Completion, and (ii) involves an aggregate principal amount of indebtedness that exceeds $245,600,000 (or, if greater, the aggregate outstanding balance under the XRC Loan Agreement and Project Company LLCA).

"<u>Distributable DR Proceeds</u>" means an amount equal to the sum of (A) the net proceeds received by the Company (after deducting closing fees and required cash reserves) from any Debt Recap; *minus* (B) any amounts applied to repay outstanding obligations under the XRC Loan Agreement; *minus* (C) any due and payable capital expenditures of the Company Group.

"<u>Distributable ITC Transfer Proceeds</u>" means an amount equal to the sum of (i) the total aggregate amount of proceeds from any ITC Transfer received by the Company, *minus* (ii) any amounts applied to repay outstanding obligations under the XRC Loan Agreement.

"<u>DR MOIC Distribution</u>" means the amount determined in accordance with the following formula: CC DR Distribution x Max(0,(1.2 – Accumulation Factor)).

"<u>Fervo Cash Sharing Ratio</u>" means the percentage that is equal to (i) 100%, *minus* (ii) the then applicable CC Cash Sharing Ratio.

"<u>Fervo Debt Recap Sharing Ratio</u>" means the percentage equal to (i) 100%, *minus* (ii) the CC Debt Recap Sharing Ratio.

"<u>Fervo ITC Transfer Sharing Ratio</u>" means the percentage equal to (i) 100%, *minus* (ii) the CC ITC Transfer Sharing Ratio.

"<u>First Flip Date</u>" means the date on which (i) the Class A Unpaid Capital Amount has been reduced to zero dollars ($0.00), and (ii) the First Flip IRR has been achieved.

"<u>First Flip IRR</u>" means, in respect of any Class A Unit, as of any time of determination, an IRR of 0% with respect to such Class A Unit.

"<u>IRR</u>" means, with respect to any Class A Unit, the internal rate of return on the aggregate amount of Capital Contributions made in respect of such Class A Unit, computed using the Microsoft Excel XIRR function, where all Capital Contributions made in respect of such Class A Unit are recorded as negative values and all distributions made by the Company in respect of such Class A Unit (exclusive of any DR MOIC Distribution and/or ITC MOIC Distribution by the Company) are recorded as positive values, and using the actual dates of such Capital Contributions and distributions. For the avoidance of doubt, "IRR" shall be calculated without taking into account any Taxes payable by a Class A Member with respect to any distributions by the Company or any costs or expenses of a Class A Member.

"<u>ITC MOIC Distribution</u>" means the amount determined in accordance with the following formula: Max(0,(CC ITC Distribution – $10,000,000)) x Max(0,(1.2 – Accumulation Factor)).

Exhibit A - 5

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"<u>ITCs</u>" means the investment tax credits provided for pursuant to Section 48 of the Code.

"<u>ITC Transfer</u>" means any transfer of ITCs pursuant to a federal income tax election pursuant to Section 6418 of the Code.

"<u>Payment Date</u>" means the date that either the CC ITC Distribution or the CC DR Distribution, as applicable, is paid to the Class A Members.

"<u>Second Flip Date</u>" means the date on which (i) the Class A Unpaid Capital Amount has been reduced to zero dollars ($0.00), and (ii) the Second Flip IRR has been achieved.

"<u>Second Flip IRR</u>" means, in respect of any Class A Unit, as of any time of determination, (i) if any member of the Company Group has issued Term Debt (or equivalent) as of the time of determination, an IRR of 12.5% with respect to such Class A Unit, or (ii) if no member of the Company Group has issued Term Debt (or equivalent) as of the time of determination, an IRR of 12% with respect to such Class A Unit.

"<u>Third Flip Date</u>" means (i) if any member of the Company Group has issued Term Debt (or equivalent) as of the date of determination, the later of (A) the Second Flip Date (as defined in Exhibit A) and (B) the fifteenth (15<sup>th</sup>) anniversary of the date of Final Completion; or (ii) if no member of the Company Group has issued Term Debt (or equivalent) as of the date of determination, the Second Flip Date.

"<u>Transmission Condition</u>" means the entry by CGS 3 and CGS 5, as applicable, into one or more transmission service agreements that collectively either (i) provide 15 years of firm transmission service sufficient to meet the delivery obligations for the contracted MWs of power under the PPAs or (ii) provide firm transmission service (for any amount of time) sufficient to meet the delivery obligations for the contracted MWs under the PPAs or equivalent transmission agreements, if such agreement(s) include an explicit auto-renewal clause.

Exhibit A - 6

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**<u>Exhibit B</u>**

**Form of Adoption Agreement**

This adoption agreement (this "<u>Adoption Agreement</u>") is executed as of ___________ pursuant to the terms of the Amended and Restated Limited Liability Company Agreement of Cape Phase 1 Intermediate HoldCo, LLC, dated October 6, 2025, and the Schedules and Exhibits thereto, as amended or restated from time to time, a copy of which is attached hereto (the "<u>LLC Agreement</u>"), by the transferee ("<u>Transferee</u>") executing this Adoption Agreement. Initially capitalized terms not defined herein shall have the meanings assigned to such terms in the LLC Agreement. By the execution of this Adoption Agreement, the Transferee agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgment**. Transferee acknowledges that Transferee is acquiring [___] [Class A/Class B] Units, subject to the terms of the LLC Agreement. Transferee further acknowledges that until Transferee is admitted to the Company as a Member that Transferee has only the rights described in the LLC Agreement pertaining to Transferees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.&nbsp;&nbsp;&nbsp;&nbsp;Agreement**. Transferee (a) agrees that the [Class A/Class B] Units acquired by Transferee shall be bound by and subject to the terms of the LLC Agreement and (b) hereby joins in, and agrees to be bound by, the LLC Agreement (including the Exhibits and Schedules) with the same force and effect as if the Transferee were originally a party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.&nbsp;&nbsp;&nbsp;&nbsp;Notice**. Any notice required by the LLC Agreement shall be given to Transferee at the address listed below Transferee's signature below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.&nbsp;&nbsp;&nbsp;&nbsp;Joinder**. The spouse of the undersigned Transferee, if applicable, executes this Adoption Agreement to acknowledge that he/she is fully aware of, understands, and consents, for himself/herself and his/her heirs, assigns, and legal representatives, to the terms of the LLC Agreement, as amended from time to time in accordance with its terms, and its binding effect upon any community property interest or marital settlement awards he/she may now or hereafter own or receive, and agrees that the termination of his/her marital relationship with such Transferee for any reason shall not have the effect of removing any Unit in the Company subject to the LLC Agreement from the coverage thereof and that his/her awareness, understanding, consent, and agreement is evidenced by his/her signature below.

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| |
|:---|
| TRANSFEREE: |
| By: |
| Name: |
| <u>Information for Notices</u>: |
| Email: |

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Exhibit B - 1

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**<u>Exhibit C</u>**

**Project Budget**

[\*\*\*]

Exhibit C - 1

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**<u>Exhibit D</u>**

**Base Case Model**

[\*\*\*]

Exhibit D - 1

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**<u>Exhibit E</u>**

**Buyout Model Principles**

[\*\*\*]

Exhibit E - 1

## Exhibit 10.15

**Exhibit 10.15**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**LOAN AGREEMENT**

**among**

**CAPE GENERATING STATION 1 LLC, CAPE GENERATING STATION 3 LLC**

**and**

**XRL ALC, LLC**

**August 13, 2024**

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**LOAN AGREEMENT**

This Loan Agreement, dated as of August 13, 2024, is made by and among **CAPE GENERATING STATION 1 LLC**, a Delaware limited liability company <u>("Cape 1"),</u> **CAPE GENERATING STATION 3 LLC**, a Delaware limited liability company <u>("Cape 3",</u> and together with Cape 1, each a <u>"Borrower"</u>and collectively, the <u>"Borrowers",</u> and **XRL ALC, LLC**, a Delaware limited liability company (the <u>"Lender").</u>

**W I T N E S S E T H:**

WHEREAS, Escalante has obtained record title and working interests in a geothermal field located in Beaver County, Utah, that is expected to provide Geothermal Substances sufficient to power one or more power generation stations with a capacity of approximately 90 MW;

WHEREAS, Escalante has entered into the Unit Agreement with FEC E&P for the development and operation of the Site, establishing the Project and covering the Site;

WHEREAS, the Borrowers are obligated pursuant to the UODA to reimburse Escalante for the costs associated with the Sub-Surface Facilities;

WHEREAS, Borrowers intend to enter into certain Construction Contracts with certain Construction Contractors for purposes of developing, designing, procuring, constructing and installing the System and the other Surface Facilities;

WHEREAS, the Borrowers have requested that the Lender provide (i) the Tranche A Commitment, to finance the construction and development of the Sub-Surface Facilities and (ii) the Tranche B Commitment, to finance construction and development of the Surface Facilities; and

WHEREAS, the Lender is willing to extend such credit upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, the patties hereto, in consideration of the mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows:

ARTICLE I

DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions.</u> In addition to words and terms defined elsewhere in this Agreement, the following terms shall have the meanings provided below:

<u>"Additional Capital Sources"</u> means funds (net of all reasonable and customary transaction costs) raised by the Sponsor after the Closing Date for the purpose of funding the completion of the Surface Facilities through commercial operation of the System which may include but is not limited to: (i) a sale of Equity Interests of a Borrower, Borrower Parent, any Project Affiliate or any other Subsidiary of Sponsor with a direct or indirect interest in the Project, (ii) a Tax Credit Purchase Transaction or third party investment for the purpose of receiving Tax Credits available with respect to the Project, or (iii) Third Patty Financing.

<u>"Additional Key Project Document"</u> means any agreement relating to the Projects entered into by a Borrower subsequent to the Closing Date (a) pursuant to which such Borrower reasonably expects for it to receive annual payments or have annual obligations in excess of $1,000,000 with respect to any one

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contract, (b) the termination of which could reasonably be expected to have a Material Adverse Effect, or (c) that replaces or substitutes for any Key Project Document; provided that for the purpose of this definition, any series of related agreements shall be considered as one agreement.

<u>"Advance"</u> means the Loan proceeds advanced under any Commitment and any protective advances made by Lender to a Borrower in accordance with this Agreement and/or the other Loan Documents.

<u>"Affiliate"</u> means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Controls with the Person specified.

<u>"Agreement"</u> means this Loan Agreement, including all schedules and exhibits hereto.

<u>"Anti-Corruption Laws"</u> shall mean all applicable laws, rules and regulations relating to bribery or corruption, including the U.S. Foreign Corrupt Practices Act of 1977 and any other similar applicable anti-corruption laws.

<u>"Anti-Money Laundering Laws"</u> means any laws or regulations relating to money laundering or terrorist financing, including the Bank Secrecy Act, 31 U.S.C. sections 5301 et seq.; the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107 56 (a/k/a the USA Patriot Act) (the <u>"Patriot Act");</u> Laundering of Monetary Instruments, 18 U.S.C. section 1956; Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, 18 U.S.C. section 1957; the Financial Recordkeeping and Reporting of Currency and Foreign Transactions Regulations, 31 C.F.R. Part 103; and any similar laws or regulations currently in force or hereafter enacted.

<u>"Anti-Terrorism Laws"</u> means (a) the anti-money laundering provisions of the Patriot Act, (b) any of the foreign asset control regulations of the U.S. Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto and (c) Executive Order No. 13,224, 66 Fed. Reg. 49,079 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism).

<u>"Asset Management Agreement"</u> means any agreement entered into from time to time by a Borrower providing for asset management services for the Project.

<u>"Assignment"</u> is defined in <u>Section 9.11.</u>

<u>"Authorized Officer"</u> of a Person means (a) with respect to a corporation, the Chief Executive Officer, the President, the Chief Financial Officer, the Chief Operating Officer, any Senior Vice President, any Vice President or the Treasurer of such Person and (b) with respect to a limited liability company, any officer, manager or managing member of such Person (if an individual) or one of the foregoing officers of the manager or managing member of such Person (if such manager or managing member is an entity).

<u>"Base Case Projections"</u> means a financial model that is a projection of operating results for the System showing at a minimum Borrower's reasonable good faith estimates, as of the date of such financial model, of revenue, operating expenses, debt service coverage ratios and sources and uses of revenues over the projection period.

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<u>"Borrower"</u> and <u>"Borrowers"</u> have the meaning set forth in the opening paragraph of this Agreement.

<u>"Borrower Agent"</u> is defined in Section 9.20(e).

<u>"Borrower Parent"</u> means Cape Phase I Holdco LLC, a Delaware limited liability company.

<u>"Business Day"</u> means a day of the year on which commercial banks in the State of New York are required to be open for business or are not authorized to close.

<u>"Cape TransCo"</u> means Cape TransCo LLC, a Delaware limited liability company.

<u>"Change in Law"</u> means the occurrence of any of the following after the date hereof: the adoption of any law or regulation, any change in any law or regulation or the application or requirements thereof, any change in the interpretation or administration of any law or regulation by any Governmental Authority, or compliance by the Lender or Borrower with any request or directive (whether or not having the force of law) of any Governmental Authority whether or not retroactively applied that shall make it unlawful or impossible for Lender to make or maintain any portion of the Loan. Notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines and directives thereunder or issued in connection therewith and (y) all requests, rules. guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law<u>"</u> in all instances under this Agreement and the other Loan Documents. regardless of the date enacted, adopted or issued (even if such date is prior to the date hereof).

<u>"Change of Control"</u> means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the failure of Sponsor to own and control legally and beneficially more than 50% of the combined voting power of all Equity Interests entitled to vote for members of the board of directors or equivalent governing body of each Project Affiliate, Borrower Parent and each Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the failure of Sponsor or an Affiliate of Sponsor, as applicable, to Control each Project Party (other than Sponsor) and each Project Affiliate.

<u>"Charges"</u> is defined in Section 9.13.

<u>"Closing Date"</u> means the date on which all conditions precedent specified in Section 4.01 are satisfied (or waived by the Lender in accordance with Section 9.05).

<u>"Code"</u> means the United States Internal Revenue Code of 1986, as amended from time to time and any successor statute, and the regulations promulgated and the rulings issued thereunder.

<u>"Collateral"</u> means all real and personal property in which the Lender is granted a Lien in any Security Document or that may constitute security for the Obligations, including without limitation the Equity Collateral and the "Collateral" as defined in the Security Agreement.

<u>"Collateral Assignment"</u> means that certain Collateral Assignment of Dedication made by the Borrowers to the Lender with respect to the "Dedication" as defined in the UODA.

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<u>"Commitment"</u> means, as the context so requires, the Tranche A Commitment or the Tranche B Commitment.

<u>"Committed Equity"</u> means, at any time with respect to the Tranche A Commitment (i) unrestricted cash on the balance sheet of the Sponsor as of the date of the most recent balance sheet delivered to Lender and (ii) binding commitments from third-party investors to contribute cash equity for the purpose of paying Project costs described in the Construction Budget with respect to the Tranche A Commitment, and subject to no conditions other than the achievement of commercially reasonable construction milestones in accordance with the construction schedule made available to and approved by the Lender.

<u>"Consent to Assignment of Project Documents"</u> means that certain Consent to Assignment of Project Documents dated the Closing Date made by the Project Affiliates in favor of the Lender.

<u>"Construction Budget"</u> means (a) prior to the Initial Tranche B Funding Date, the complete construction budget for the Sub-Surface Facilities, containing a draw schedule and a line-item breakdown of all estimated costs of construction for the Sub-Surface Facilities, financing costs, marketing costs and other items of cost incidental to construction of the Sub-Surface Facilities, and (b) on and after the Initial Tranche B Funding Date, the complete construction budget for the Project, containing a draw schedule and a line-item breakdown of all estimated costs of construction for the Project, financing costs, marketing costs and other items of cost incidental to construction of the Project, in each case in a form reasonably satisfactory to the Lender.

<u>"Construction Completion Guaranty"</u> means that certain Construction Completion Guaranty. dated as of the date hereof, from Sponsor to Lender.

<u>"Construction Contractors"</u> means individually or collectively as the context shall require any EPC Contractor and each other third party that is party to a Construction Contract.

<u>"Construction Contracts"</u> means any EPC Contract and any other contract or agreement between a Borrower and a vendor or supplier to the Project in connection with the development and construction of the Sub-Surface Facilities, the Surface Facilities and the System, including the contracts more specifically described on <u>Schedule 2.</u>

<u>"Construction Due Diligence Items"</u> means, without limiting the other requirements set forth in this Agreement, the documents, materials and other information described on <u>Exhibit E.</u>

<u>"Construction Monitoring Fee"</u> means the Tranche A Construction Monitoring Fee or the Tranche B Construction Monitoring Fee, as the context shall require.

<u>"Control"</u> means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting shares or partnership interests, or of the ability to exercise voting power, by contract or otherwise. <u>"Controlling".</u> <u>"Controlled by</u>" and <u>"under common Control with"</u> have meanings correlative thereto.

<u>"Default"</u> means any event that, with notice or lapse of time or both, would constitute an Event of Default.

<u>"Dollars"</u> and the sign "<u>$</u>" means lawful money of the United States of America.

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<u>"Energy Management Services Agreement"</u> means any energy management services or qualified scheduling entity agreement entered into from time to time by and between a Borrower and an energy manager qualified to manage the scheduling, dispatch and delivery of electrical output from the Project.

<u>"Environmental Laws"</u> means any applicable current or future legal requirement of any Governmental Authority pertaining to (a) the protection of health, safety and the indoor or outdoor environment; (b) the conservation, management or use of natural resources and wildlife; (c) the protection or use of surface water and groundwater; (d) the management, manufacture, possession, presence, use, generation, transportation, treatment, storage, disposal, release, threatened release, abatement, removal, remediation or handling of, or exposure to, any hazardous or toxic substance or material; or (e) pollution (including any release to land surface water and groundwater) and includes, without limitation, any analogous implementing or successor law to such legal requirements, and any amendment, rule, regulation, order or directive issued thereunder.

<u>"EPC Contract"</u> means each engineering, procurement and construction agreements (including any schedules or exhibits thereto) to be entered into prior to the Initial Tranche B Funding Date between a Borrower as "owner" and the relevant EPC Contractor as "contractor", which constitutes the primary Construction Contract(s) for the construction of the Surface Facilities.

<u>"EPC Contractor"</u> means individually or collectively as the context shall require each independent, third party contractor party to an EPC Contract.

<u>"Equity Collateral"</u> means the Equity Interests of Borrower in which a Lien has been granted the Lender under the applicable Security Document.

<u>"Equity Interests"</u> means shares of capital stock. partnership interests, membership or ownership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person.

<u>"ERISA"</u> means the Employee Retirement Income Security Act of 1974, as amended from time to time.

<u>"ERISA Affiliate"</u> means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of Section 4 l 4(b) or (c) of the Code.

<u>"Escalante"</u> means Escalante Desert Resources LLC, a Delaware limited liability company.

<u>"Event of Default"</u> is defined in Section 7.01.

<u>"Excess Capital Proceeds"</u> means the cash proceeds of Additional Capital Sources that exceed the amount required to achieve the completion, commissioning and commercial operation of the Surface Facilities, as reasonably determined by the Lender and based on the most recent Construction Budget, as updated by the Sponsor on or about the date of the consummation of any transaction providing Additional Capital Sources.

<u>"FEC E&P"</u> means FEC E&P Management LLC, a Delaware limited liability company.

<u>"FERC"</u> means the Federal Energy Regulatory Commission or its successor.

<u>"Financial Statements"</u> means with respect to any Person, the balance sheets, statements of income or operations, shareholders' equity and cash flows for the subject Person's applicable reporting

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period together with year-to-date figures and comparative figures for the corresponding periods of the prior year.

<u>"First Extended Maturity Date"</u> is defined in Section 2.03(a).

<u>"Force Majeure Event"</u> means an event or circumstance that (a) is beyond the reasonable control of the affected Person, (b) was not foreseeable, or if foreseeable, could not have been avoided or overcome by the affected Person through the exercise of commercially reasonable diligence and (c) prevents or delays the affected Person in its performance of any (or any part) of its obligations under this Agreement. The delay or failure in performance due to the Force Majeure Event will be of no longer duration and no greater scope than is required by the Force Majeure Event. Force Majeure Events may include, *provided* that the criteria in the first two sentences are met, acts of God, earthquakes, hurricanes, tornadoes and other natural disasters, terrorism, war, riots, embargos, labor strikes and lock-outs, epidemic or pandemic (including, COVID-19, but only to the extent of direct impacts of COVID-19 (including but not limited to travel restrictions, quarantine restrictions, supply chain disruptions and labor force disruptions) of which the affected Person was not aware, and should not reasonably have been aware, as of the Closing Date) and orders, demands or requirements of any Governmental Authority. Under no circumstances will the following events constitute a Force Majeure Event: (i) any acts or omissions of any third party, including, without limitation, any vendor, materialman, customer or supplier of the Borrower, unless such acts or omissions are themselves result from Force Majeure Events; (ii) changes in economic or market conditions that affect the cost of the Borrower's supplies, or that affect demand or price for any of Borrower's products, or that otherwise affect the cost or benefits of the Borrower's performance or availability of funds to make payments due hereunder, unless such impacts and conditions themselves result from Force Majeure Events; (iii) delays, defects or non-performance of suppliers, vendors or other third parties with whom a Project Party has contracted, except to the extent that such delays or non-performances are themselves resulting from Force Majeure Events; (iv) equipment defects, including serial defects, except to the extent that such defects are themselves resulting from Force Majeure Events; or (v) any delay in providing, or cancellation of, any approvals or permits by the issuing Governmental Authority, unless such delay or cancellation is the result of a force majeure claimed by the Governmental Authority or would otherwise constitute a force majeure under applicable Project Documents.

<u>"Funds Control Procedures"</u> means the Lender Engineer's Funds Control Procedures attached hereto as <u>Exhibit C-1</u> and <u>C-2.</u>

<u>"GAAP"</u> means generally accepted accounting principles in the United States of America applied on a consistent basis and subject to the terms of Section 1.02.

<u>"Governing Documents"</u> means, with respect to any Person other than an individual Person, such Person's articles of incorporation, articles of organization, bylaws, operating agreement and other documents governing the formation and operation of such Person.

<u>"Governmental Authority"</u> means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,

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judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including but not limited to FERC, NERC and any System Regulatory Agency.

<u>"Guarantor"</u> means each of Sponsor and Borrower Parent.

<u>"Guaranty"</u> means, individually and collectively as the context shall require, (i) that certain Guaranty, dated the date hereof, from Guarantors to Lender and (ii) the Construction Completion Guaranty.

<u>"Hazardous Materials"</u> means any substances, materials or wastes which are or become regulated as hazardous or toxic under any applicable Environmental Law, or which are classified or defined as hazardous or toxic under any Environmental Law, or which are known to cause disease or toxicity in humans, as published pursuant to applicable Environmental Laws, in such amounts or concentrations as to give rise to any investigations, or any remedial, monitoring or removal obligations required under applicable Environmental Laws or regulations.

<u>"Indebtedness"</u> of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind; (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments; (c) all obligations of such Person upon which interest charges are customarily paid; (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person; (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding accounts payable incurred in the ordinary course of business); (f) all liabilities, obligations and other indebtedness of others secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not such indebtedness secured thereby has been assumed; (g) all guaranties by and contingent liabilities of such Person with respect to indebtedness of others; and (h) subject to Section 1.02, all capital lease obligations of such Person. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person's Equity Interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

<u>"Independent Engineer"</u> means any qualified third-party engineer as may be engaged by Sponsor from time to time to serve as the "independent engineer" for the Surface Facility or Sub-Surface Facility so long as such person is approved by the Lender (such approval not to be unreasonably withheld or delayed).

<u>"Indemnified Patties"</u> is defined in Section 9.10.

<u>"Initial Tranche B Funding Date"</u> means the date of the first Advance of the Tranche B Loan.

<u>"Interconnection Agreement"</u> means that certain Large Generator Interconnection Agreement between Cape TransCo and Milford Gen Lead, LLC dated June 12, 2024, including all attachments, exhibits, riders and schedules thereto.

<u>"Key Project Documents"</u> means (a) each Construction Contract, (b) the Shared Facilities Agreement, (c) each Power Purchase Agreement, (d) the UODA, (e) the Supply Agreement (f) the Turbine Supply Agreement, (g) the Transmission Services Agreement, (h) the Energy Management Services Agreement, (i) the O&M Agreement (if any), and (j) the Asset Management Agreement (if any), in each case, solely to the extent it relates to the Project.

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<u>"Knowledge"</u> of a Person at any time means the actual knowledge of any Authorized Officer of such Person at such time.

<u>"Lender Engineer"</u> means Partner Engineering and Science, Inc. or such other Person as the Lender may designate from time to time in accordance with this Agreement to inspect construction of the Project and perform other services with respect thereto on behalf of the Lender.

<u>"Lien"</u> means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge, option or security interest in, on or of such asset; (b) the interest of a vendor or a lessor under any conditional sale agreement. capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset; and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

<u>"Loan"</u> means, individually or collectively as the context may require, the Tranche A Loan and the Tranche B Loan.

<u>"Loan Fee"</u> means the Tranche A Loan Fee or the Tranche B Loan Fee, as the context shall require.

<u>"Loan Documents"</u> means this Agreement, the Note, the Security Documents, the Guaranty, each Site Landlord Agreement, the Consent to Assignment of Project Documents, and all other instruments, agreements, documents and writings contemplated hereby or thereby or executed in connection herewith or therewith.

<u>"Material Adverse Effect"</u> means, with respect to any event, act, condition or occurrence of whatever nature (including any adverse determination in any litigation, arbitration or Governmental Authority investigation or proceeding), whether singularly or in conjunction with any other event or events, act or acts, condition or conditions, occurrence or occurrences whether or not related, a material adverse change in, or a material adverse effect on: (i) the business. results of operations, management, financial condition, assets or liabilities of the Project Parties taken as a whole; (ii) the ability of any Project Party to perform any of its respective obligations under any Loan Document to which it is a party; (iii) the rights and remedies of the Lender under any of the Loan Documents; or (iv) the legality, validity or enforceability of any of the Loan Documents.

<u>"Maturity Date"</u> means, individually or collectively, as the context so requires, the Tranche A Maturity Date and the Tranche B Maturity Date.

<u>"Maximum Rate"</u> is defined in Section 9.13.

<u>"Monthly Construction Update"</u> is defined in Section 5.0l(f).

<u>"NERC"</u> means the North American Electric Reliability Corporation, any Regional Entity thereunder and any successor thereto.

<u>"Note"</u> means, individually or collectively, as the context so requires, the Tranche A Note and the Tranche B Note.

<u>"Notices"</u> is defined in Section 9.01.

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<u>"O&M Agreement"</u> means any agreement entered into from time to time by a Borrower providing for operations and maintenance services for the Project.

<u>"Obligations"</u> means (i) all Indebtedness, liabilities, obligations and other amounts owing by the Borrower to the Lender pursuant to the terms of this Agreement or any other Loan Document, including without limitation the Loan, all principal and interest payments due thereunder, and all fees, expenses, indemnification and reimbursement payments due thereunder; (ii) all obligations under or in connection with any deposit account, lockbox, overdraft protection, automated clearing house service, corporate, purchasing, merchant and other multi-card services, or other cash management service or product provided by Lender to Borrower in connection with the Loan; (iii) all fees, costs and expenses arising hereunder or under another Loan Document including, without limitation, to the extent permitted by law, reasonable attorneys' fees and legal expenses incurred by the Lender in the collection of any of the Indebtedness referred to in clauses (i) and (ii) above in amounts due and owing to the Lender under this Agreement or another Loan Document; and (iv) any Advances made by the Lender for the inspection, repossession, maintenance, preservation, protection, storage, disposal or enforcement of, or realization upon, any property or assets now or hereafter made subject to a Lien granted pursuant to this Agreement, the other Loan Documents or pursuant to any agreement, instrument or promissory note relating to any of the Obligations, including, without limitation, Advances for taxes, insurance, repairs and the like, and fees, costs and expenses which the Lender pays or incurs in discharge of obligations of the Borrower, in each case whether or not now due or hereafter becoming due, direct or indirect, and whether from time to time reduced or entirely extinguished and thereafter reincurred, together with any and all extensions, renewals, refinancings or refundings thereof in whole or in part.

<u>"OFAC"</u> means the United States Department of Treasury Office of Foreign Assets Control.

<u>"Patriot Act"</u> is defined in the definition of "Anti-Money Laundering Laws."

<u>"PBGC"</u> means the Pension Benefit Guaranty Corporation.

<u>"Permitted Dispositions"</u> means (a) the sales by the Borrower of electric energy and capacity and renewable energy credits under the Power Purchase Agreements; (b) the sale, disposal or distribution of assets which are obsolete or not used or useful in the operation or maintenance of the System; (c) casualty and condemnation events that do not result in an Event of Default under Section 7.0l(n); (d) the sale of the Tax Credits pursuant to the Tax Credit Purchase Transaction; and (e) any sale, transfer, lease or disposition of goods acquired with the proceeds of Indebtedness contemplated by clauses (i) and (k) of the definition of "Permitted Encumbrance."

<u>"Permitted Encumbrances"</u> means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Liens imposed by law for taxes (other than Liens imposed pursuant to ERISA or Environmental Laws) that are not delinquent or are being contested in compliance with Section 5.05(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;carriers', warehousemen's, mechanics', materialmen's, repairmen's and other like Liens imposed by law, arising in the ordinary course of business or incident to the exploration, development and production of Geothermal Substances and seeming obligations that are not overdue by more than sixty (60) days and that have not been recorded or are being contested in compliance with Section 5.05(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;pledges and deposits made in the ordinary course of business in compliance with workers' compensation, unemployment insurance and other employee benefit or social security laws or regulations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;judgment Liens in respect of judgments that do not constitute an Event of Default under Section 7.0l(m); <u>provided</u> that (i) such Liens are paid in full and discharged within thirty (30) days after the entry of such judgment or (ii) an appeal or proceeding for review of such Lien is being prosecuted in good faith and the enforcement of such Lien is stayed during such appeal or proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;(i) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business and minor imperfections in title that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrower, (ii) contractual Liens which arise in the ordinary course of business under operating agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, deferred production agreements, injection, replacement, repressuring and recycling covenants and agreements (including with respect to water, water rights, water diversion works, water wells and water supplies), salt water or other disposal agreements, seismic or other geophysical permits or agreements, and other covenants and agreements which are (or after the Closing Date become) usual and customary in the geothermal business, including the exploration, development and production of Geothermal Substances and (iii) Liens and other title exceptions set forth in the Title Examination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Liens arising by virtue of statutory or common law provisions relating to banker's Liens, rights of setoff or similar rights with respect to deposit accounts that are maintained with depository institutions other than the Lender in accordance with the applicable provisions of the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;Liens created pursuant to the Loan Documents and any other Lien in favor of Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;purchase money security interests in real property, improvements thereto or equipment hereafter acquired (or, in the case of improvements, constructed) by a Borrower not exceeding $1,000,000 in the aggregate at any one time outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Liens created pursuant to any loan, collateral or security documents under any Third-Party Financing in favor of the secured parties thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;Liens securing obligations (other than for borrowed money) not exceeding $750,000 in the aggregate at any one time outstanding.

<u>"Permitted Indebtedness"</u> means Indebtedness consisting solely of (i) the Loan and any other Indebtedness owed to Lender, (ii) amounts due in the ordinary course under the Project Documents, (iii) accounts payable and other expenses incurred in the ordinary course of Borrower's business in each case to the extent not past due for more than ninety (90) days, (iv) any Indebtedness that constitutes any Additional Capital Sources and (v) other Indebtedness secured by a Permitted Encumbrance.

<u>"Permitting Certificate"</u> means a certificate substantially in the form of <u>Exhibit F</u> attached hereto, as may be updated from time to time in accordance with <u>Section 4.02(h)</u> or <u>Section 4.03(r).</u>

<u>"Person"</u> means an individual, partnership, corporation (including a business trust), nonprofit corporation, limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a Governmental Authority.

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<u>"Plan"</u> means any retirement plan (including without limitation any money purchase plan, defined benefit retirement plan or profit sharing plan) intended to qualify under Section 40l(a) of the Code maintained or contributed to by any Project Parties or any ERISA Affiliate, including any multiemployer plan within the meaning of Section 400l(a)(3) of ERISA.

<u>"Plans and Specifications"</u> means prior to the Initial Tranche B Funding Date, the basis of design documents for the Sub-Surface Facilities prepared by Jacobs Engineering and on and after the Initial Tranche B Funding Date, the plans and specifications for the Project, in each case as approved by the applicable regulatory and municipal Governmental Authorities, including complete and final design specifications, site, architectural, structural, mechanical and electrical drawings (including "as built" plans and drawings), bounds specifications and all other working and shop drawings prepared for use in connection therewith, and test reports (including performance test reports and commissioning documents), together with all supplements, amendments and modifications thereof made by approved change orders or as otherwise permitted under this Agreement, and certified by the Independent Engineer and approved by Lender.

<u>"Pledge Agreement"</u> means that certain Pledge and Security Agreement, dated the date hereof, from the Borrower Parent to Lender granting Lender a Lien upon the Equity Interests issued by the Borrowers as Collateral for the Obligations.

<u>"Power Purchase Agreements"</u> means each power purchase agreement or other similar revenue contract entered into by a Borrower with respect to sale of energy, including all attachments, exhibits. riders and schedules thereto. As of the Closing Date, all Power Purchase Agreements are described on <u>Schedule 3.</u>

<u>"Project"</u> means (a) the development and operation of the Site and the Sub-Surface Facilities under the Unit Agreement with the intent to obtain sufficient Geothermal Substances to power the System at full capacity. including exploration, drilling and siting of the Surface Facilities, in accordance with the Project Documents and all applicable laws in connection therewith; and (b) the design, manufacture, delivery, construction. installation, commissioning and operation of the Surface Facilities and the System, in accordance with the Project Documents and all applicable laws in connection therewith.

<u>"Project Affiliate"</u> means each of (i) Escalante, (ii) FEC E&P and (iii) Cape TransCo.

<u>"Project Documents"</u> means (solely to the extent relating to the Project and existing and in effect on any date) (a) the Interconnection Agreement, (b) the Power Purchase Agreements, (c) the Construction Contracts, (d) the Unit Agreement, (e) the UODA, (f) the Supply Agreement, (g) the Shared Facilities Agreement, (h) each Site Lease, (i) each other document listed in <u>Schedule 2</u> and <u>Schedule 3</u> and (j) to the extent not set forth in the preceding clauses (a) through (i), all Key Project Documents and all other material documents, contracts and agreements to which any Project Party is a party for the ownership, construction, installation, testing, maintenance, repair, operation or use of the Project or the sale of power or other assets generated by or related to the Project.

<u>"Project Equipment"</u> means all now owned and hereafter acquired rights, title and interests of Borrowers in and to the System and any and all components, equipment and other tangible assets comprising the Surface Facilities.

<u>"Project Parties"</u> means the Borrower and the Guarantors, and <u>"Project Party"</u> means any of them, as the context shall require.

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<u>"PUHCA"</u> means the Public Utility Holding Company Act of 2005, as amended, and FERC's implementing regulations related thereto.

<u>"Regional Entity"</u> means an entity with authority delegated to it by NERC to monitor and enforce NERC reliability standards.

<u>"Request for Advance"</u> means a request for an Advance substantially in the form of <u>Exhibit B.</u>

<u>"Sanctioned Country"</u> shall mean, at any time, a country, region or territory which is the subject or target of any Sanctions broadly restricting or prohibiting dealings with, in or involving such country or territory (currently, Cuba, Iran, North Korea, Syria and the Crimea region of Ukraine).

<u>"Sanctioned Person"</u> shall mean any Person (a) listed in any Sanctions-related list of designated Persons, including the Specially Designated Nationals and Blocked Persons List maintained by OFAC; (b) organized, operating, domiciled or resident in, or any Governmental Authority of, a Sanctioned Country; (c) owned or controlled by, or acting for or on behalf of, any Person described in clause (a) or (b) above; or (d) otherwise the subject or target of any comprehensive Sanctions.

<u>"Sanctions"</u> shall mean any economic or financial sanctions or trade embargoes enacted, imposed, administered or enforced from time to time by the U.S. government, including those administered by OFAC or the U.S. Department of State.

<u>"SCE PPA"</u> is defined on <u>Schedule 3.</u>

<u>"Second Extended Maturity Date"</u> is defined in Section 2.03(b).

<u>"Security Agreement"</u> means that certain Security Agreement, dated the date hereof, executed by Borrower in favor of the Lender.

<u>"Security Documents"</u> means the Security Agreement, the Pledge Agreement, the Collateral Assignment, the collateral assignment of the UODA Collateral Instruments, any UCC financing statement filed in connection with the Collateral and all other documents evidencing, granting or perfecting Liens of Lender in any Collateral.

<u>"Servicer"</u> has the meaning given to such term in <u>Section 9.19.</u>

<u>"Shared Facilities Agreement"</u> means the Shared Facilities Agreement between Cape TransCo and the Borrowers to be dated on or prior to the Initial Tranche B Funding Date with respect to certain aspects of the Surface Facilities and the Interconnection Agreement.

<u>"Site"</u> means (i) with respect to the Sub-Surface Facilities, the "Geothermal Resource Production" sites designated on <u>Exhibit A</u> and (ii) with respect to the Surface Facilities, the "Surface Facilities" sites designated on <u>Exhibit A.</u> The Site is intended to provide Geothermal Substances sufficient to power the System at its full capacity. A drawing of the Site is also attached to <u>Exhibit A</u> and designated as the "90 MW Boundary."

<u>"Site Landlord"</u> means "Surface Owner" or "Management Agency" designated on <u>Exhibit A.</u>

<u>"Site Landlord Agreement"</u> means individually and collectively as the context shall require each Site Landlord's Release and Waiver Agreement or comparable document made by any Site Landlord in favor of the Lender.

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<u>"Site Lease"</u> means, individually or collectively as the context shall require: (i) that certain Geothermal Lease Agreement between Sean O'Neill, as trustee of the Marla Machris Hooker Trust and the Robert Lee Machris Trust, as lessor, and Escalante, as lessee, dated September 7, 2023, (ii) that certain Geothermal Lease Agreement between Murphy-Brown LLC, as lessor, and Escalante, as lessee, dated August 15, 2022, (iii) that certain Lease Agreement between United States Department of the Interior Bureau of Land Management ("BLM"), as lessor, and Escalante, as lessee, dated February 1, 2021, and (iv) each right of way, surface use agreement, easement, license or other instrument granting a real property right in favor of Escalante for the benefit of the Project, including the right of way to be provided by BLM prior to the Initial Tranche B Funding Date.

<u>"Solvency Certificate"</u> means a certificate of the chief financial officer or equivalent officer of the Sponsor stating that (a) the sum of the debt (including contingent liabilities) of the Sponsor and its subsidiaries, taken as a whole, does not exceed the fair salable value (on a going concern basis) of the assets of the Sponsor and its subsidiaries, taken as a whole; (b) the capital of the Sponsor and its subsidiaries, taken as a whole, is not unreasonably small in relation to the business of the Sponsor or its subsidiaries, taken as a whole, contemplated as of the date hereof; and (c) the Sponsor and its subsidiaries, taken as a whole, do not intend to incur, or believe that they will incur, debts (including current obligations) beyond their ability to pay such debt as they mature in the ordinary course of business, and for purposes of which the amount of any contingent liability at any time is computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability, without duplication.

<u>"Soils Consultant"</u> means any qualified third-party consultant as may be engaged by Sponsor from time to time to provide a geotechnical report or study with respect to the Project so long as such person is approved by the Lender (such approval not to be unreasonably withheld or delayed).

<u>"Sponsor"</u> means Fervo Energy Company, a Delaware corporation.

<u>"Sub-Surface Facilities"</u> means the geothermal wells, pads and roads to the extent relating to the Project.

<u>"Supply Agreement"</u> means, individually and collectively as the context shall require, (i) that certain Geothermal Substances Supply Agreement between Escalante, as the geothermal supplier, and Cape 1, as the purchaser, dated on or about the Closing Date and (ii) that certain Geothermal Substances Supply Agreement between Escalante, as the geothermal supplier, and Cape 3, as the purchaser, dated on or about the Closing Date.

<u>"Surface Facilities"</u> means the power generating and interconnection facilities with a rated generation capacity of approximately 90 MW and associated energy collection and distribution infrastructure.

<u>"System"</u> means the turbines with a rated generating capacity of not less than 90 MW and related facilities constructed and operated at the Site.

<u>"System Regulatory Agency"</u> means, collectively, (a) the public utilities commission or other similar regulatory agency of the state in which the Site is located or which otherwise has jurisdiction over the System, and (b) where applicable, the Transmission Provider or other regional transmission operator or independent system operator.

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<u>"Tax Credit Documents"</u> means the definitive documents evidencing the purchase by the Tax Credit Purchaser of the Tax Credits, including without limitation as any of the following may be applicable: (i) the Tax Credit Purchase Agreement and (ii) all other agreements and other documents contemplated thereby or in connection therewith.

<u>"Tax Credit Proceeds"</u> means the aggregate amount of the proceeds, net of transaction costs and expenses, of the payments to be made by the Tax Credit Purchaser pursuant to the Tax Credit Purchase Agreement.

<u>"Tax Credit Purchase Agreement"</u> means any Tax Credit purchase agreement or similar agreement to be entered into in connection with the Permitted Tax Credit Purchase Transaction.

<u>"Tax Credit Purchase Transaction"</u> means (a) the sale of Tax Credits generated by the Project pursuant to and in accordance with a Tax Credit Purchase Agreement and (b) the execution and delivery of the definitive Tax Credit Documents in form and content satisfactory to the Lender.

<u>"Tax Credit Purchaser"</u> means the buyer or purchaser of the Tax Credits pursuant to the Tax Credit Purchase Agreement.

<u>"Tax Credits"</u> means the federal renewable energy income tax credits allocated to the System in accordance with the Code.

<u>"Third-Party Financing"</u> means any debt financing provided by any third-party lender entered into in accordance with <u>Section 8.05.</u>

<u>"Title Examination"</u> means the title examinations contemplated by Article 19 of the UODA.

<u>"Tranche A Commitment"</u> is defined in Section 2.0l(a).

<u>"Tranche A Construction Monitoring Fee"</u> is defined in Section 2.02(b)(i).

<u>"Tranche A Funding Date"</u> means each date on Tranche A Loans are funded pursuant to Section 2.0l(a).

<u>"Tranche A Loans"</u> means the Advances to be made by the Lender to the Borrower pursuant to Section 2.0l(a) of this Agreement, as evidenced by the Tranche A Note.

<u>"Tranche A Loan Fee"</u> is defined in Section 2.02(a)(i).

<u>"Tranche A Maturity Date"</u> has the meaning assigned to the term "Maturity Date" in the Tranche A Note.

<u>"Tranche A Note"</u> means the promissory note in the amount of the Tranche A Commitment dated the date hereof made by the Borrower and payable to the order of the Lender, evidencing the Tranche A Loan.

<u>"Tranche B Commitment"</u> is defined in Section 2.0l(b).

<u>"Tranche B Construction Monitoring Fee"</u> is defined in Section 2.02(b)(ii).

<u>"Tranche B Funding Date"</u> means each date on which Tranche B Loans are funded pursuant to Section 2.0l(a).

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<u>"Tranche B Loans"</u> means the Advances to be made by the Lender to the Borrower pursuant to Section 2.0l(b) of this Agreement, as evidenced by the Tranche B Note.

<u>"Tranche B Loan Fee"</u> is defined in Section 2.02(a)(ii).

<u>"Tranche B Maturity Date"</u> has the meaning assigned to the term "Maturity Date" in the Tranche A Note.

<u>"Tranche B Note"</u> means the promissory note in the amount of the Tranche B Commitment dated the date hereof made by the Borrower and payable to the order of the Lender, evidencing the Tranche B Loan.

<u>"Transmission Provider"</u> means the utility providing interconnection, transmission and distribution services to the System pursuant to the Interconnection Agreement.

<u>"Transmission Services Agreement"</u> means any agreement entered into from time to time by and between a Borrower providing transmission capacity services to the Project.

<u>"Turbine Supply Agreement"</u> means any agreement entered into from time to time by a Borrower for the supply of electric energy generating turbines for the System.

<u>"UCC"</u> means the Uniform Commercial Code in effect from time to time in the State of New York; <u>provided</u> that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the Liens in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, "UCC" shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection.

<u>"Unit Agreement"</u> means that certain Cape Unit Agreement to be entered into after the Closing Date between FEC E&P and Escalante and approved by the Bureau of Land Management for the development and operation of the "Cape Unit Area" in Beaver County, Utah.

<u>"UODA"</u> means the Unit Operating and Dedication Agreement among FEC E&P, Escalante and the Borrowers dated on or about the Closing Date.

<u>"UODA Collateral Instruments"</u> means (i) that certain Deed of Trust, Security Agreement and Fixture Filing, dated as of the Closing Date, by Escalante to the trustee named therein for the benefit of the Borrowers, (ii) all financing statements in connection therewith, and (iii) the collateral assignments thereof by the Borrowers in favor of the Lender.

<u>"Warranties"</u> means all equipment warranties, warranties of workmanship and other warranties or guaranties (including product and performance warranties or guaranties) related to the Project Equipment and the construction, operation and maintenance of the System, including the. turbine warranties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounting Terms and Determination.</u> Unless otherwise defined or specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made and all Financial Statements required to be delivered hereunder shall be prepared, in accordance with GAAP as in effect from time to time, applied on a basis consistent (except for such changes approved or required by the Borrower's independent public accountants) with the most recent Financial Statements delivered pursuant to Section 5.01. Notwithstanding the foregoing, a lease that would not be considered a capital lease pursuant to GAAP prior to the effectiveness of ASC 842 (whether or not such lease was in

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effect on such date) shall not be deemed to constitute a capital lease and the obligations under such lease shall not be deemed to constitute Indebtedness, for purposes of this Agreement regardless of any change in GAAP following December 31, 2017 that would otherwise require such lease to be characterized or re-characterized (on a prospective or retroactive basis or otherwise) as a capital lease or otherwise reflected on the balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.03&nbsp;&nbsp;&nbsp;&nbsp;<u>Terms Generally.</u> The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The word "or" shall be deemed to include "and/or," and the words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". In the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including" and the word "to" means "to but excluding". Unless the context requires otherwise, (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as it was originally executed or as it may from time to time be amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein); (b) references to statutes are to be construed as including all statutory provisions consolidating, amending or replacing the statute referred to; (c) any reference herein to any Person shall be construed to include such Person's successors and permitted assigns; (d) the words "hereof", "herein"and "hereunder" and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provision hereof; (e) all references to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles, Sections, Exhibits and Schedules to this Agreement unless otherwise indicated; (f) all references to a specific time shall be construed to refer to the time in the city and state of the Lender's principal office, unless otherwise indicated and (g) all references to "Borrower" in the singular shall be construed to refer to the Borrowers, collectively. Section headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.04&nbsp;&nbsp;&nbsp;&nbsp;<u>Reinstatement.</u> To the fullest extent permitted by applicable law, the Obligations shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part, of any of the payments to the Lender is rescinded or must otherwise be restored or returned, or is repaid in good faith settlement of a pending or threatened avoidance claim, following the insolvency, bankruptcy, dissolution, liquidation or reorganization of Borrower, Guarantor or any other Person, or upon or as a result of the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to Borrower, Guarantor or any other Person or any substantial part of its property, or otherwise. to the extent such payment has been so rescinded, restored, returned or repaid.

ARTICLE II

LOAN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Loans: Notes.</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tranche A Loan.</u> Subject to the terms and conditions hereinafter set forth, the Lender agrees to make Tranche A Loans to the Borrower from the Closing Date to and including the Tranche A Maturity Date in an aggregate principal amount not to exceed the lesser of (i) $64,000,000.00 (the <u>"Tranche A Commitment")</u> or (ii) so much as is to be Advanced pursuant to Article IV hereof. The Tranche A Loan shall be evidenced by the Tranche A Note. Borrower shall not be entitled to reborrow any amounts repaid with respect to the Tranche A Loan.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tranche B Loan.</u> Subject to the terms and conditions hereinafter set forth, the Lender agrees to make Tranche B Loans to the Borrower from the Initial Tranche B Funding Date to and including the Tranche B Maturity Date in an aggregate principal amount not to exceed the lesser of (i) $36,000,000.00 (the <u>"Tranche B Commitment")</u> or (ii) so much as is to be Advanced pursuant to Article IV hereof. The Tranche B Loan shall be evidenced by the Tranche B Note. Borrower shall not be entitled to reborrow any amounts repaid with respect to the Tranche B Loan.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notes; Payments.</u> The Borrower's obligation to pay the principal of and interest on the Loans shall be evidenced by the records of the Lender and by the Notes. In each case, the Notes shall set forth the interest rate, repayment and other provisions, the terms of which are incorporated into this Agreement. The entries made in such records and/or on the schedule annexed to the Notes shall be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided that the failure or delay of the Lender in maintaining or making entries into any such record or on such schedule or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans (both principal and unpaid accrued interest) in accordance with the terms of this Agreement. Notwithstanding anything in this Agreement or any Note to the contrary, each payment received by the Lender with respect to the Loans shall applied on a pro rata basis to the outstanding Obligations under each 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;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Advances.</u> Advances shall be made in accordance with the provisions of <u>Article IV.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Loan Fee.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;On or before the Closing Date, the Borrower will pay to the Lender a non- refundable construction loan fee (the <u>"Tranche A Loan Fee")</u> in the amount of $1,280,000 with respect to the Tranche A Loan, irrespective of the total amount of any Tranche A Loan Advanced hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;On or before the Initial Tranche B Funding Date, the Borrower will pay to the Lender a non-refundable construction loan fee (the <u>"Tranche B Loan Fee"</u> and, together with the Tranche A Loan Fee, the <u>"Loan Fee")</u> in the amount of $720,000.00 with respect to the Tranche B Loan, irrespective of the total amount of any Tranche B Loan Advanced hereunder.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Monitoring Fee.</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;On or before the Closing Date, the Borrower shall pay to the Lender a construction monitoring fee in an amount equal to $64,000.00 (the <u>"Tranche A Construction</u> <u>Monitoring Fee").</u> The Tranche A Construction Monitoring Fee shall be deemed fully earned and non-refundable on the Closing Date and shall be exclusive of any Title Company disbursing charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;On or before the Initial Tranche B Funding Date, the Borrower shall pay to the Lender a construction monitoring fee in an amount equal to $36,000.00 (the <u>"Tranche B</u> <u>Construction Monitoring Fee"</u> and, together with the Tranche A Construction Monitoring Fee, the <u>"Construction Monitoring Fee").</u> The Tranche B Construction Monitoring Fee shall be deemed fully earned and non-refundable on the Initial Tranche B Funding Date and shall be exclusive of any Title Company disbursing charges.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.03&nbsp;&nbsp;&nbsp;&nbsp;<u>Option to Extend Maturity Date.</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)&nbsp;&nbsp;&nbsp;&nbsp;<u>First Extension of Maturity Date.</u> The Borrower may elect to extend the Maturity Date to the date that is twelve (12) months following the then-current Maturity Date (the <u>"First Extended</u> <u>Maturity Date"),</u> upon and subject to the following 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall request the extension, if at all, by written notice to the Lender not more than sixty (60) days, and not less than thirty (30) days, prior to the Maturity 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Construction of the Project shall have been completed, as reasonably determined by the Lender and the Lender Engineer, subject to any Force Majeure Events or other events outside the reasonable control of the Project Parties as reasonably approved by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;At the time of the request there shall not exist any Event of Default, and on the effective date of any such extension, there shall not exist any Default or Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Whether or not such extension becomes effective, the Borrower shall pay all out-of-pocket costs and expenses incurred by the Lender in connection with the proposed extension (pre- and post-closing), including, without limitation, appraisal fees, environmental audit and legal fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Not later than the Maturity Date, (A) such extension shall have been consented to and documented to the Lender's satisfaction by the Borrower, the Guarantors and all other Persons deemed necessary by the Lender and (B) the Lender shall have been provided with an updated title report for the Project and judgment and lien searches on the Borrower and the Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have delivered reasonably acceptable estoppels or amendments from counterparties to certain Project Documents as may be reasonably requested by Lender, including but not limited to acceptable extensions of any operational deadlines in the Power Purchase Agreements, as reasonably determined by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have paid to the Lender a non-refundable extension fee in the amount of $500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have deposited, reserved or otherwise committed in a manner acceptable to the Lender in its sole discretion sufficient funds for the payment of interest during the term of such extension.

If any of the foregoing conditions are not satisfied strictly in accordance with their terms, the extension shall not be or become effective.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Second Extension of Maturity Date.</u> Assuming the First Extended Maturity Date has become effective, the Borrower may elect to extend the First Extended Maturity Date to the date that is twelve (12) months following the First Extended Maturity Date (the <u>"Second Extended Maturity</u> <u>Date"),</u> upon and subject to the following 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall request the extension, if at all, by written notice to the Lender not more than sixty (60) days, and not less than thirty (30) days, prior to the First Extended Maturity Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Construction of the Project shall have been completed, as reasonably determined by the Lender and the Lender Engineer, subject to any Force Majeure Events or other events outside the reasonable control of the Project Parties as reasonably approved by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;At the time of the request, and at the time of the extension, there shall not exist any Default or Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Whether or not such extension becomes effective, the Borrower shall pay all out-of-pocket costs and expenses incurred by the Lender in connection with the proposed extension (pre- and post-closing), including, without limitation, appraisal fees, environmental audit and legal fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Not later than the First Extended Maturity Date, (A) such extension shall have been consented to and documented to the Lender's satisfaction by the Borrower, the Guarantors and all other Persons deemed necessary by the Lender and (B) the Lender shall have been provided with an updated title report for the Project and judgment and lien searches on the Borrower and the Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have delivered reasonably acceptable estoppels or amendments from counterparties to certain Project Documents as may be reasonably requested by Lender, including but not limited to acceptable extensions of any operational deadlines in the Project Documents, as reasonably determined by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have paid to the Lender a non-refundable extension fee in the amount of $500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have deposited, reserved or otherwise committed in a manner acceptable to the Lender in its sole discretion sufficient funds for the payment of interest during the term of such extension.

If any of the foregoing conditions are not satisfied strictly in accordance with their terms, the extension shall not be or become effective.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Changes in Loan Terms.</u> All terms and conditions of the Loan Documents shall continue to apply to each extended term.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Borrower hereby represents and warrants to the Lender as of the Closing Date, each Tranche A Funding Date, and as of the Initial Tranche B Funding Date, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Existence, Power and Authority.</u> Each Project Party is duly organized, validly existing and in good standing under the laws of the State of its incorporation, organization or formation and has the power and authority (i) with respect to the Borrowers, to develop, construct, own and operate the System in accordance with the Project Documents; (ii) to execute, deliver and perform its obligations under the Loan Documents and Project Documents to which it is a party; (iii) to own and operate its assets; and (iv) to conduct its business as now or proposed to be carried on, and is duly qualified, licensed and in good standing to do business in all jurisdictions where its ownership of property or the nature of its business requires such qualification or licensing, other than to the extent any such failure to do so could not reasonably be expected to result in a Material Adverse Effect. Each Project Party is duly authorized to

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execute and deliver the Loan Documents and the Project Documents to which it is a party and all necessary action to authorize the execution and delivery of the Loan Documents and the Project Documents to which it is a party has been properly taken, and each Borrower is and will continue to be duly authorized to borrow under this Agreement, and each Project Party is and will continue to be duly authorized to perform all of the terms and provisions of the Loan Documents and the Project Documents to which it is a party. Except as set forth on <u>Schedule 3.01,</u> there are no outstanding options to purchase, or any rights or warrants to subscribe for, or any commitments or agreements to issue or sell, or any Equity Interests or obligations convertible into, or any powers of attorney relating to, Equity Interests of any Borrower or the Borrower Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Binding Obligations.</u> The Loan Documents and the Project Documents to which it is a party, when executed and delivered by the Project Parties party thereto, will constitute the legal, valid and binding obligations of such Project Patty enforceable in accordance with their terms, except as enforceability may be limited by the application of any law relating to bankruptcy, insolvency, relief of debtors or protection of creditors and by general principles of equity, whether considered in a proceeding, at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.04&nbsp;&nbsp;&nbsp;&nbsp;<u>Authorizations and Filings.</u> No authorization, consent, approval, license, exemption or other action by, and no registration, qualification, designation, declaration or filing with, any Governmental Authority is or will be necessary or advisable in connection with the execution and delivery of this Agreement or the other Loan Documents or the Project Documents to which any Project Party is a party, the consummation of the transactions contemplated herein or therein, or the performance of or compliance with the terms and conditions hereof or thereof that has not been obtained or made on or prior to the date hereof, except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements: No Material Adverse Change: Projections; Construction Budget.</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)&nbsp;&nbsp;&nbsp;&nbsp;Sponsor and each Borrower has delivered or caused to be delivered to the Lender its most recent Financial Statements. The Financial Statements at·true, complete and accurate in all material respects and fairly present the financial condition, assets and liabilities, whether accrued, absolute, contingent or otherwise and the results of such Person's operations for the period specified therein. The Financial Statements have been prepared in accordance with GAAP consistently applied from period to period subject in the case of interim statements to normal year-end adjustments and to any comments and notes acceptable to the Lender in its 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;Since the date of the Financial Statements, neither Sponsor nor any Borrower has at any time suffered any damage, destruction or loss, and no event or condition has occurred or exists, which has resulted or could reasonably be expected to result in a Material Adverse Effect. No Borrower is party to any agreement or instrument or subject to any court order, governmental decree or any charter or other corporate restriction which adversely affects its business, assets, operations or condition (financial or otherwise), and Sponsor is not subject to any agreement or instrument or subject to any court order,

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governmental decree or any charter or other corporate restriction which materially and adversely affects the continued development and construction of the Project substantially in accordance with the Construction Budget.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Neither the business nor the properties of any Borrower nor, to the Borrower's Knowledge, any other party to any Project Document are·currently affected by any Force Majeure Event.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Borrower has prepared, or caused to be prepared, the Base Case Projections and is responsible for developing or providing the assumptions on which the Base Case Projections are based. The Base Case Projections are (i) to the Borrower's Knowledge, based on reasonable assumptions (when made) as to all legal and factual matters material to the estimates set forth therein and (ii) are consistent in all material respects with the provisions of the Project Documents. There are no statements or conclusions in the Base Case Projections which are based upon or include materially misleading information or fail to take into account material information regarding the matters reported therein, it being understood that projections concerning volumes attributable to the Geothermal Substances and production and cost estimates contained in the Base Case Projections are necessarily based upon professional opinions, estimates and projections and that the Borrower does not warrant that such opinions, estimates and projections will ultimately prove to have been accurate.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Construction Budget includes a breakdown of Borrowers' good-faith estimate of all costs and expenses for the, development of the Project (including reimbursement of development costs to Affiliates of Sponsor, and residual payments due to such Persons), the acquisition and leasing of the Site, the development of the Project and the construction of the Project through completion thereof, the furnishing of all personalty in connection therewith, all development costs, utility interconnection costs, Site Lease payments, required reserves and legal and accounting costs as well as each source of funds allocated to the payment for all such costs and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.06&nbsp;&nbsp;&nbsp;&nbsp;<u>Laws and Taxes.</u> Each Project Party is in compliance in all material respects with all laws, regulations, rulings, orders, injunctions, decrees, conditions or other requirements applicable to or imposed upon such Person by any law or by any Governmental Authority. Each Project Party has filed all required tax returns and reports that are now required to be filed by such Person in connection with any federal, state and local tax, duty or charge levied, assessed or imposed upon such Person or its assets, including unemployment, social security and real estate taxes. Each Project Party has paid all taxes which are now due and payable, except where (i) the validity or amount thereof is being contested in good faith by appropriate proceedings, (ii) such Project Party has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (iii) the failure to make payment pending such contest could not reasonably be expected to have a Material Adverse Effect. No taxing authority has asserted or assessed any additional tax liabilities against any Project Party which are outstanding on this date, and no Project Party has filed for any extension of time for the payment of any tax or the filing of any tax return or report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.07&nbsp;&nbsp;&nbsp;&nbsp;<u>Litigation: Judgments.</u> Except as set forth on <u>Schedule 3.07,</u> there are no suits or proceedings pending or, to the Knowledge of Borrower, threatened against or affecting any Project Party, and no proceedings before any Governmental Authority are pending or, to the Knowledge of Borrower, threatened against any Project Party which could reasonably be expected to result in a Material Adverse Effect. None of the Borrowers, the Borrower Parent or any of their respective assets are subject to any unpaid judgment (whether or not stayed) or any judgment Lien.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.08&nbsp;&nbsp;&nbsp;&nbsp;<u>Plans and Specifications: Governmental Approvals.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;As of the Closing Date, with respect to the Sub-Surface Facilities, (i) the Plans and Specifications are satisfactory to the Borrower and, to the extent required by applicable law or the Project Documents, have been approved by all applicable Governmental Authorities and counterparties to such Project Documents; (ii) all authorizations, certificates, permits and approvals required by any applicable Governmental Authority for the Project Sub-Surface Facilities (including without limitation the ownership, operation, and maintenance thereof) have been obtained and are valid and in full force and effect (except to the extent the same are of a nature so as not to be obtainable until a later stage of construction) and not subject to any Current legal proceeding or any unsatisfied condition that could reasonably be expected to result in a material modification or revocation of such authorization, certificate, permit or approval, and all applicable appeal periods with respect thereto have expired or the period for bringing challenges thereto has expired under the applicable statute of limitations; and (iii) the anticipated use of the Site complies with all applicable zoning ordinances . regulations and restrictive covenants affecting the Site and all other governmental requirements for such use have been satisfied. Solely with respect to the Sub-Surface Facilities, other than final inspections as may be required by the relevant Governmental Authority prior to commissioning, there is no inspection or approval required to be obtained from any Governmental Authority with respect to the Project or any Project Equipment that has not been received prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;As of the Initial Tranche B Funding Date, with respect to the Project, (i) the Plans and Specifications are satisfactory to the Borrower and, to the extent required by applicable law or the Project Documents, have been approved by all applicable Governmental Authorities and counterparties to such Project Documents; (ii) all authorizations, certificates, permits and approvals required by any applicable Governmental Authority for the Project (including without limitation the ownership, operation, and maintenance thereof) have been obtained and are valid and in full force and effect (except to the extent the same are of a nature so as not to be obtainable until a later stage of construction) and not subject to any current legal proceeding or any unsatisfied condition that could reasonably be expected to result in a material modification or revocation of such authorization, certificate, permit or approval, and all applicable appeal periods with respect thereto have expired or the period for bringing challenges thereto has expired under the applicable statute of limitations; and (iii) the anticipated use of the Site complies with all applicable zoning ordinances, regulations and restrictive covenants affecting the Site and all other governmental requirements for such use have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.09&nbsp;&nbsp;&nbsp;&nbsp;<u>Access: Utilities.</u> The Borrowers and Escalante have been granted or have rights to all real property interests appropriate for its proposed use of the Sub-Surface Facilities and the Surface Facilities. Each Site Lease is a legally binding and enforceable lease agreement, right of way or surface use agreement for the portion of the Site subject thereto and all rights of way necessary for the full utilization of the Site exist and are accessible. All utility services necessary for the Project, and the use and operation thereof for its intended purpose, including electricity and water, are available or will be available as needed at the boundaries of the Site upon commercially reasonable terms consistent with the Construction Budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Title to Assets.</u> Each Project Party has good and marketable title to the Collateral owned by it, free and clear of all Liens except for Permitted Encumbrances. As of the Closing Date, the ownership of the Project Parties, the Project Affiliates and certain other subsidiaries of Sponsor is as set forth on <u>Schedule 1.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Information.</u> The Borrower has delivered to the Lender a true and correct copy of the Project Documents then in existence and any amendments, waivers or modifications executed thereunder,

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and there have been no other amendments, waivers or modifications thereof. To Borrowers' Knowledge, all surveys, plat plans and similar documents furnished by the Borrower to the Lender are accurate and complete in all material respects as of their respective dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Project Documents.</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)&nbsp;&nbsp;&nbsp;&nbsp;No Project Party is party to any contract or agreements relating to the construction, ownership, use, management or operation of the Project, except the Project Documents heretofore delivered to the Lender, all of which are true and correct. Neither Borrower nor any Project Affiliate is in material default or breach of any Project Document, and to Borrower's Knowledge, no other party to any Project Document has materially breached or defaulted under any provision thereof to which it is a party. Each Project Document is in full force and effect, and, to Borrower's Knowledge, no event, condition or circumstance has occurred or exists which currently or with the giving of notice or lapse of time or both would provide any party to any Project Document with a right to terminate such document. To Borrower's Knowledge, all representations and warranties of all other parties to any Project Document are true and correct (if of a continuing nature) or were true and correct in all material respects when made.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth on <u>Schedule 3.12(b).</u> the services to be performed, the materials to be supplied and the real property interests and other rights granted pursuant to the Project Documents (i) comprise all of the property interests necessary to secure any right material to the development, construction, installation, completion, operation and maintenance of the Project and the conduct of the Borrower's business in accordance with all applicable laws, regulations, permits and similar requirements of any Governmental Authority and the Project Documents and (ii) are sufficient to enable the Project to be located, constructed and operated on the Site.

&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)&nbsp;&nbsp;&nbsp;&nbsp;[Reserved].

&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)&nbsp;&nbsp;&nbsp;&nbsp;To Borrower's Knowledge, the Borrower reasonably expects that the Transmission Provider will have completed all necessary work to allow for interconnection at the location described in the Interconnection Agreement prior to the System's "substantial completion" under the relevant Construction Contracts.

&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)&nbsp;&nbsp;&nbsp;&nbsp;As of the Closing Date, <u>Schedules 2</u> and <u>3</u> are correct and complete lists of all Project Documents required to be set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13&nbsp;&nbsp;&nbsp;&nbsp;<u>ERISA.</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)&nbsp;&nbsp;&nbsp;&nbsp;As of the Closing Date, the Borrower is not and will not be (i) an employee benefit plan subject to Part 4 of Subtitle B of Title I of ERISA, (ii) a plan or account subject to Section 4975 of the Code, (iii) an entity deemed to hold "plan assets" of any such plans or accounts for purposes of ERISA or the Code, as determined pursuant to Section 3(42) of ERISA, or (iv) a "governmental plan" within the meaning of Section 3(32) of ERISA.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Plan (other than a multiemployer plan) is in compliance with the applicable provisions of ERISA, the Code and other federal or state law. Each Plan has received a favorable determination letter from the IRS and, to the best Knowledge of the Borrowers, nothing has occurred which would cause the loss of such qualification. Each Borrower has fulfilled its obligations, if any, under the minimum funding standards of ERISA and the Code with respect to each Plan and has not incurred any liability with respect to any Plan under Title IV of ERISA.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;There are no claims, lawsuits or actions (including by any Governmental Authority), and there has been no prohibited transaction or violation of the fiduciary responsibility rules, with respect to any 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;(d)&nbsp;&nbsp;&nbsp;&nbsp;With respect to any Plan subject to Title IV of ERISA: (i) no reportable event has occurred under Section 4043(c) of ERISA for which the PBGC requires thirty (30)-day notice: (ii) no action by any Borrower or any ERISA Affiliate to terminate or withdraw from any Plan has been taken, and no notice of intent to terminate a Plan has been filed under Section 4041 of ERISA; and (iii) no termination proceeding has been commenced with respect to a Plan under Section 4042 of ERISA, and no event has occurred or condition exists which might constitute grounds for the commencement of such a proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Governmental Regulation.</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)&nbsp;&nbsp;&nbsp;&nbsp;Borrower will not, solely as a result of the development, construction, ownership or operation of the System; the generation, transmission or sale of electricity from the System; or the entering into of any Project Document or any transaction contemplated hereby or thereby, become subject to, or not exempt from, state laws or regulations respecting the rates of electric utilities and the financial or organizational regulation of electric utilities.

&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)&nbsp;&nbsp;&nbsp;&nbsp;There is no complaint or administrative proceeding pending with respect to any Borrower under any applicable law governing rate regulation or financial or organizational regulation by any Governmental Authority, and no Borrower has any Knowledge of any facts or circumstances that could reasonably be expected to give rise to such a complaint or administrative proceeding in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Solvency.</u> As of the date hereof and after giving effect to the transactions contemplated by the Loan Documents, (i) the aggregate value of the Project Parties' assets, taken as a whole, will exceed their liabilities (including contingent, subordinated, unmatured and unliquidated liabilities), taken as a whole, (ii) the Project Parties, taken as a whole, will have sufficient assets and cash flow to enable it to pay its debts as they become due and (iii) the Borrower will not have unreasonably small capital for the business in which it is engaged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Margin Stock: Governmental Regulation.</u> The Borrower will not borrow under this Agreement for the purpose of buying or carrying any "margin stock", as such term is used in Regulation U and related regulations of the Board of Governors of the Federal Reserve System, as amended from time to time. The Borrower does not own any "margin stock". The Borrower is not engaged in the business of extending credit to others for such purpose, and no part of the proceeds of any borrowing under this Agreement will be used to purchase or cany any "margin stock" or to extend credit to others for the purpose of purchasing or carrying any "margin stock". The Borrower is not subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act or the Investment Company Act of 1940 or to any federal or state statute or regulation limiting its ability to incur Indebtedness for borrowed money.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Licenses. Intellectual Property. etc.</u> Except as set forth in <u>Schedule 3.17,</u> (a) Borrowers and the Project Affiliates have obtained any and all material licenses, permits, franchises, governmental authorizations, patents, trademarks, copyrights or other rights necessary for the ownership of its properties and the advantageous conduct of its business: Borrowers and Project Affiliates possess adequate licenses, patents, patent applications, copyrights, trademarks, trademark applications and trade names to continue to conduct their business as heretofore conducted by them, without any conflict with the rights of any

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other Person; and (b) all of the foregoing are in full force and effect and none of the foregoing are in known conflict with the rights of others in a material manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Environmental Matters.</u> Each of the Borrower and Escalante is in compliance, in all material respects, with all Environmental Laws, including, without limitation, all Environmental Laws in jurisdictions in which such Person owns or operates, or has owned or operated, a facility or site, stores Collateral, arranges or has arranged for disposal or treatment of Hazardous Materials, accepts or has accepted for transport any Hazardous Materials or holds or has held any interest in real property or otherwise. No litigation or proceeding arising under, relating to or in connection with any Environmental Law is pending or, to the best of the Borrower's Knowledge, threatened against the Borrower, Escalante, any real property which the Borrower or Escalante holds or has held an interest or any past or present operation of such Person. No release, threatened release or disposal of Hazardous Materials is occurring, or, to the best of the Borrower's Knowledge, has occurred, on, under or to any real property in which the Borrower or Escalante holds or has held any interest or performs or has performed any of its operations, in violation of any Environmental Law. As used in this Section, "litigation or proceeding" means any demand, claim notice, suit, suit in equity, action, administrative action, investigation or inquiry whether brought by a Governmental Authority or other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Anti-Corruption: Sanctions.</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)&nbsp;&nbsp;&nbsp;&nbsp;Neither any Project Party nor any officer, director, or to the Knowledge of Borrower, agent or employee acting on behalf of any Project Party is aware of or has taken any action that would result in a violation by any such Person of any Anti-Corruption Laws. Furthermore, each such Project Party has conducted its business in compliance with the Anti-Corruption Laws and has instituted and maintains policies and procedures reasonably designed to promote and achieve, continued compliance therewith.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Neither any Project Party nor any of the directors or officers of any Project Party, or to the Knowledge of Borrower, employees, Affiliates or agents, of any Project Party (i) is a Sanctioned Person or (ii) has been, in the past five (5) years, subject to any action, proceeding, litigation, claim or investigation with regard to any actual or alleged violation of Sanctions. No Project Party has conducted or initiated any internal investigation or made a voluntary, directed, or involuntary disclosure to OFAC with respect to any alleged act relating to any noncompliance with any applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure.</u> The Borrowers have disclosed to the Lender all agreements, instruments and corporate or other restrictions to which it or any of its subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the reports, Financial Statements, certificates or other information furnished (whether in writing or orally) by or on behalf of the Borrower to the Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case as modified or supplemented by other information so furnished), taken as a whole, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading; <u>provided</u> that, with respect to projected financial information, each Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time (it being recognized by the Lender, however, that projections as to future events are not to be viewed as facts and that results during the period(s) covered by such projections may differ from the projected results and that such differences may be material and that the Borrowers makes no representation that such projections will be realized).

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ARTICLE IV

CONDITIONS PRECEDENT TO CLOSING AND ADVANCES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions for Closing.</u> The occurrence of the Closing Date, the effectiveness of this Agreement and the obligations of the Lender to make Advances hereunder are subject to the receipt by the Lender (except as set forth otherwise below) of each of the following documents, and the satisfaction of the conditions precedent set forth below, at the Borrower's own cost and expense, each of which must be satisfied to the satisfaction of the Lender (unless waived in writing by Lender):

&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)&nbsp;&nbsp;&nbsp;&nbsp;(i) The Loan Documents duly executed by each Project Party that is a party thereto, along with evidence that all filings contemplated thereby have been made or will be made contemporaneously with closing; and (ii) the Security Documents to be placed of record or filed and all UCC financing statements necessary to perfect the Lender's Lien in any Collateral shall have been duly executed and acknowledged (as applicable) and recorded or filed or will be recorded and filed contemporaneously with closing in all appropriate offices and shall constitute a first and prior perfected Lien on the Collateral, subject only to Permitted Encumbrances.

&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)&nbsp;&nbsp;&nbsp;&nbsp;(i) An environmental report and NEPA assessment; (ii) a feasibility study prepared by the Independent Engineer and addressed to the Lender or subject to a reliance letter in favor of the Lender; and (iii) such other assessments (including a Phase II assessment if recommended by such Phase I environmental assessment), seismic reports, inspections and other information with respect to the Site, including any of the foregoing submitted to or conducted by a Governmental Authority, with Lender listed as recipient or subject to a reasonably acceptable reliance letter, and all in form and substance reasonably satisfactory to the Lender.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Certification that the Site is not located in a flood or natural hazard area as defined under applicable law and, if the Site is located in such a hazard area, evidence of appropriate insurance coverage.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Evidence reasonably satisfactory to the Lender of (i) zoning of the Site and the System for its intended use, (ii) the issuance and availability of all necessary permits and licenses. as of the Closing Date, for the Project, (iii) the availability to the Site of all utility and municipal services reasonably required by the Lender and (iv) compliance by the Project Parties and the Project with all Governmental Authority requirements pertaining to zoning, subdivision, building, environmental, safety, historical, certificate of need and archeological preservation and other requirements applicable to the Site and/or the System.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Evidence, in form and substance satisfactory to the Lender, that the business and all assets of the Borrower are adequately insured as required by Section 5.07.

&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)&nbsp;&nbsp;&nbsp;&nbsp;If the Title Examination shall disclose a mortgage or deed of trust Lien or other Lien against any portion of the Site that impairs the rights of Borrowers and is not reasonably acceptable to the Lender, then the Site Landlord, the applicable Borrower and the holder of such Lien shall have entered into a reasonably acceptable non-disturbance and attornment agreement with respect to the applicable Site Lease.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Copies of all Project Documents in effect as of the Closing Date, which shall be in form and content reasonably acceptable to the Lender.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;Copies of architectural drawings, stamped by the local municipality, as the Lender shall require.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Construction Budget certified by the Borrower to be true, correct and complete and in form, scope and content reasonably acceptable to and approved in writing by the Lender and containing a breakdown of Borrower's good-faith estimate of all costs of construction of the Project, financing costs, marketing costs and other items of cost incidental to construction of the Project, which breakdown shall be in form and content reasonably acceptable to the Lender, which is the basis upon which Advances shall be made on account of each of the categories set forth in the Construction Budget. To the extent not expressly described in the Construction Budget, the Borrower shall also provide to the Lender a construction draw schedule showing the estimated timing of construction payments and pro forma allocation to the various sources of funds described therein or updates to such construction draw schedule to reflect historical and projected future uses of such sources of funds.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Payment of the Tranche A Loan Fee, the Tranche A Construction Monitoring Fee and all reimbursable costs and expenses pursuant to the Loan Documents, including, without limitation, (i) a site visit fee for the Project; (ii) costs of the Lender Engineer and Lender's insurance consultant, which may include the estimated costs for site visits to occur through the period of time required to fully Advance all Loans to the extent not already contemplated in the Construction Budget; and (iii) all reasonable fees, charges and disbursements of counsel to the Lender (directly to such counsel if requested by the Lender) to the extent invoiced prior to or on the Closing Date, plus such additional amounts of fees, charges and disbursements as shall constitute Lender's reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Lender), all of which payments may be paid from any Advance made on the Closing 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;(k)&nbsp;&nbsp;&nbsp;&nbsp;Lien searches (including UCC, judgments, bankruptcy and taxes) with respect to each Project Party and each Project Affiliate (including fictitious trade names, if any) at the state and county level from the jurisdiction of its organization and the jurisdiction of the Site (i) showing no existing Liens on the property of such Persons except as permitted hereunder or reasonably acceptable to Lender or (ii) accompanied by necessary termination statements, release statements and any other types of release in connection with any impermissible or unacceptable Liens disclosed by such searches that have been filed or for which satisfactory arrangements have been made for such filing on the Closing 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;(l)&nbsp;&nbsp;&nbsp;&nbsp;The Base Case Projections, certified by Borrower to be prepared in accordance with Section 3.05(d), and including such additional information related thereto as the Lender shall reasonably 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;(m)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have provided evidence of Project costs expended prior to the Closing Date in such form and detail as the Lender shall reasonably 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;(n)&nbsp;&nbsp;&nbsp;&nbsp;A certificate in form and substance reasonably satisfactory to Lender from each Project Party, dated the Closing Date and signed on behalf of such Project Party by an Authorized Officer of such Project Party certifying as to and attaching (i) true copies of the Governing Documents of such Person and any amendments thereto; (ii) the resolutions of the directors/managers, partners and/or shareholders/members (as the case may be) of such Person authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party; (iii) a good standing certificate (or its equivalent) of each Project Party from the Secretary of State of such Person's jurisdiction of incorporation/formation/organization; and (iv) the names, true signatures and incumbency of the Authorized Officers of such Project Party authorized to execute and deliver the Loan Documents and

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Project Documents to which it is a party. The Lender may conclusively rely on such certification unless and until a later certificate revising the prior certificate has been furnished to the Lender.

&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)&nbsp;&nbsp;&nbsp;&nbsp;(i) A Certification of the Borrower, as required by the Bank Secrecy Act (31 C.F.R. §1010.230 et. seq.), as amended from time to time, the regulations promulgated thereunder, and any successor statute and (ii) all such documentation and information requested by Lender that are necessary (including the name, address, taxpayer identification, Form W-9, Governing Documents, copies of government issued identification and names of officers of the Borrower and any Guarantor) for Lender to identify such Person in accordance with any applicable Anti-Terrorism Laws, the requirements of the Patriot Act (including the "know your customer" and similar regulations thereunder), and the rules and regulations promulgated thereunder.

&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)&nbsp;&nbsp;&nbsp;&nbsp;An opinion of counsel on behalf of the Project Parties, dated as of the Closing Date and addressed to the Lender.

&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)&nbsp;&nbsp;&nbsp;&nbsp;All required consents and approvals for each Project Party's execution and delivery of the Loan Documents to which it is a party and the performance of its obligations thereunder shall have been obtained and delivered to Lender.

&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)&nbsp;&nbsp;&nbsp;&nbsp;A closing statement, flow of funds memo or similar document as of the Closing Date in form and substance reasonably acceptable to the Lender shall have been executed by all parties thereto and shall reflect (i) the payment of all transaction costs and fees in connection with the transactions contemplated hereby through the Closing Date (unless alternative arrangements acceptable to Lender have been made) and (ii) to the extent applicable, the making of an Advance permitted hereunder.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Evidence, in a form reasonably satisfactory to Lender, that the Project Affiliates have delivered the duly executed UODA Collateral Instruments to the Borrowers in form and substance satisfactory to Lender, and that all UODA Collateral Instruments which require recording in the real property records have been recorded.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Such other instruments, documents, certificates, assurances and opinions as may be set forth in the closing checklist delivered to the Borrower in connection with this Agreement or as the Lender shall reasonably require to evidence and secure the Obligations, to comply with the provisions hereof and the requirements of regulatory authorities to which the Lender is subject, all of which, including those referred to above in this Section 4.01, shall be reasonably satisfactory in form, content and substance to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Advances of the Tranche A Loan.</u> The occurrence of a Tranche A Funding Date and the Lender's obligations to make Tranche A Loans pursuant to Section 2.01(a) are subject to the receipt by the Lender of each of the following documents and the satisfaction of the conditions precedent set forth below, each of which must be satisfied to the reasonable satisfaction of the Lender (unless waived in accordance with Section 9.05):

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Closing Date shall have occurred or will occur contemporaneously with such funding.

&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)&nbsp;&nbsp;&nbsp;&nbsp;All items required by Section 4.05(a), including a Request for Advance, completion of all required exhibits and attachment of all necessary documents and information to support such requested Advance and that such Advance relates to the Sub-Surface Facilities.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;All requirements of the Funds Control Procedures shall have been satisfied with regard to the requested Advance.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received Lien waivers from FEC E&P in respect of all construction and development work performed by FEC E&P preceding the requested Tranche A Funding Date, conditioned only upon payment in connection with such Tranche A Funding 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;All construction and development milestones set forth in any Construction Contract preceding the requested Tranche A Funding Date shall have been achieved, and the Lender shall be satisfied that the progress of construction is in accordance with the current construction schedule.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers shall have certified to the Lender that the Monthly Construction Update delivered immediately prior to such Tranche A Funding Date pursuant to <u>Section 5.0l(f)</u> is true, accurate and correct in all material respects.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Except to the extent any such site inspection is not completed for any reason outside of the control of the Borrowers or any of their affiliates, and if Lender shall elect to undertake such site inspection in its sole discretion, the Lender shall have completed a site inspection of the Project (with or without its consultants or the Independent Engineer) in accordance with <u>Section 8.01</u> and confirmed that the progress of construction invoiced through the current payment application is complete, of workmanlike quality and in conformance with the Plans and Specifications and the construction schedule.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers shall have delivered a duly executed Permitting Certificate, as may be updated to the extent needed to reflect the status of any permit, license or approval obtained since the date of the prior Advance, together with copies of each permit, license or approval certified to therein as being in full force and effect, and Lender shall be satisfied that all permits and approvals necessary or reasonably required for the current stage of development or construction of the Project have been obtained and remain in full force and effect.

&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)&nbsp;&nbsp;&nbsp;&nbsp;If requested by the Lender, commercially reasonable evidence that the requirements of Section 4.05(b) are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.03&nbsp;&nbsp;&nbsp;&nbsp;<u>Advances of the Tranche B Loan.</u> The occurrence of a Tranche B Funding Date and the Lender's obligations to make Tranche B Loans pursuant to Section 2.01 (b) are subject to the receipt by the Lender of each of the following documents and the satisfaction of the conditions precedent set forth below, each of which must be satisfied to the reasonable satisfaction of the Lender (unless waived in accordance with Section 9.05):

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Closing Date shall have occurrence, and the Borrowers shall have complied with the following provisions of Section 4.01 (in each case to the extent not delivered in connection with a prior Tranche B Funding 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;4.01(a) with respect to any Loan Documents that the Lender agrees to delay until the Initial Tranche B Funding Date, including consents to or acknowledgments of the collateral assignment of Key Project Documents from the third parties that are party to such Key Project 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;4.0l(b) with respect to an environmental report and NEPA assessment with respect to the Surface Facilities (and A Finding of No Significant Impact (FONSI) or other resolution of the NEPA process with respect to the Surface Facilities in form and substance

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reasonably acceptable to the Lender shall have been received), and such other assessments (including a Phase II assessment if recommended by such Phase I environmental assessment), seismic reports, inspections and other information with respect to the Surface Facilities, including any of the foregoing submitted to or conducted by a Governmental Authority, with Lender listed as recipient or subject to a reasonably acceptable reliance letter, and all in form and substance reasonably satisfactory to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;4.0l(c) with respect to the Site of the Surface Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;4.0l(d) with respect to the Site of the Surface Facilities and the System (and clause (ii) shall be determined as of the Initial Tranche B Funding 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;4.0l(e);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;4.0l(f) with respect to the Site of the Surface Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;4.0l(g) with respect to those Project Documents entered into after the Closing Date or applicable to the Surface Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;4.01(h) with respect to any architectural drawings for the Surface Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;An updated Construction Budget and Section 4.0l(i) and reflecting all necessary changes from the Closing Date to the Initial Tranche B Funding 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;4.01(I), to the extent of any necessary updates to the Base Case Projections to maintain the accuracy thereof in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall have delivered or caused to be delivered (i) the Construction Due Diligence Items with respect to the Surface Facilities, including approval of <u>Exhibit C-2</u> as mutually agreed with Lender and Lender Engineer (which shall be deemed incorporated herein on the Initial Tranche B Funding Date), and (ii) a "Funds Control Services Agreement" among the Lender, the Borrowers and Lender Engineer, reasonably acceptable to all parties, and the Lender shall have received an independent engineer's report with respect to the Surface Facilities from the Lender Engineer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;A geotechnical report or study by the Soils Consultant verifying that the conditions and constituents of the soils at the Site are acceptable for the Project in form and substance reasonably satisfactory to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Site Landlord with respect to the Surface Facilities shall have delivered to the Lender a reasonably acceptable Site Landlord 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;&nbsp;&nbsp;&nbsp;The Shared Facilities Agreement and the Interconnection Agreement shall each be in full force and effect and shall be in form and substance reasonably acceptable to the Lender, and BLM shall have provided the right of way agreement necessary for the placement of power lines benefitting the Surface Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received a copy of the final IFC civil, electrical and structural plans in form and substance reasonably acceptable to the Lender;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received a copy of the "Notice to Proceed" delivered under and in accordance with the primary Construction Contract for the Surface Facilities; 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;(xvii)&nbsp;&nbsp;&nbsp;&nbsp;Evidence, in a form reasonably satisfactory to Lender, that the Project Affiliates and the Borrowers have delivered duly executed amendments to the UODA Collateral Instruments to include the Shared Facilities Agreement as a secured obligation, the right of way to be provided by BLM as collateral, and such other matters as the Lender shall reasonably request, in form and substance satisfactory to Lender, and that all such amendments which require recording in the real property records have been recorded.

&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)&nbsp;&nbsp;&nbsp;&nbsp;All items required by Section 4.05(a), including a Request for Advance, completion of all required exhibits and attachment of all necessary documents and information to support such requested Advance and that such Advance relates to the Surface Facilities.

&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)&nbsp;&nbsp;&nbsp;&nbsp;All requirements of the Funds Control Procedures shall have been satisfied with regard to the requested Advance.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Lender shall have received and approved Lien waivers from each Construction Contractor and all other contractors, subcontractors, vendors and suppliers to the Project for invoices over $50,000 consisting of (i) unconditional Lien waivers from any such Person who has provided materials or labor in connection with the Project having received payment, acknowledging receipt of and release and waiver of any Lien, stop notice or other right with respect to amounts equal to any prior payments made for such materials or labor and (ii) conditional Lien waivers to similar effect from any such Person with respect to the requested payment, conditioned only upon 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;All construction and development milestones set forth in any Construction Contract preceding the requested Tranche B Funding Date shall have been achieved, and the Lender shall be satisfied that the progress of construction is in accordance with the current construction schedule.

&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)&nbsp;&nbsp;&nbsp;&nbsp;A Borrowers shall have certified to the Lender that the Monthly Construction Update delivered immediately prior to such Tranche B Funding Date pursuant to <u>Section 5.0l(f)</u> is true, accurate and correct in all material respects.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Except to the extent any such site inspection is not completed for any reason outside of the control of the Borrowers or any of their affiliates, and if Lender shall elect to undertake such site inspection in its sole discretion, the Lender shall have completed a site inspection of the Project (with or without its consultants or the Independent Engineer) in accordance with <u>Section 8.01</u> and confirmed that the progress of construction invoiced through the current payment application is complete, of workmanlike quality and in conformance with the Plans and Specifications and the construction schedule.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Payment of the Tranche B Loan Fee, the Tranche B Construction Monitoring Fee and all reimbursable costs and expenses pursuant to the Loan Documents, consistent with the requirements of Section 4.0l(j).

&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)&nbsp;&nbsp;&nbsp;&nbsp;A closing statement, flow of funds memo or similar document as of the Initial Tranche B Funding Date in form and substance reasonably acceptable to the Lender shall have been executed by all parties thereto and shall reflect (i) the payment of all transaction costs and fees in connection with the transactions contemplated hereby through the Initial tranche B Funding Date (to the

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extent not previously paid and unless alternative arrangements acceptable to Lender have been made) and (ii) to the extent applicable, the making of an Advance permitted hereunder.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Sponsor shall have delivered (i) a Solvency Certificate dated as of such Tranche B Funding Date and (ii) a written update as to the Sponsor's efforts to obtain Additional Capital Sources.

&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)&nbsp;&nbsp;&nbsp;&nbsp;If requested by the Lender, the Schedules to this Agreement shall be updated as needed to reflect the accuracy of the information required to be disclosed thereon.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Sponsor shall have delivered a duly executed Permitting Certificate, as may be updated to the extent needed to reflect the status of any permit, license or approval obtained since the date of the prior Advance, together with copies of each permit, license or approval certified to therein as being in full force and effect, and Lender shall be satisfied that all permits and approvals necessary or reasonably required for the current stage of development or construction of the Project have been obtained and remain in full force and effect.

&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)&nbsp;&nbsp;&nbsp;&nbsp;If any request for a Tranche B Loan includes an amount for shipping of Project Equipment or that satisfies a payment milestone which requires the recipient of such payment to ship any Project Equipment, in each case with a fair market value over $100,000, the Borrower shall also have delivered to the Lender commercially reasonable evidence that such Project Equipment is adequately insured during transit (which may be evidence of the insurance of the supplier of such Project Equipment or that such supplier bears the risk of loss of such Project Equipment prior to delivery to the Site).

&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)&nbsp;&nbsp;&nbsp;&nbsp;All requirements herein for an initial Advance under the Tranche B Loan shall be satisfied by March 31, 2025 or such later date that the Lender and the Borrowers may agree to in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.04&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties: Events of Default and Potential Defaults.</u> The obligation of the Lender to make any Advance is subject to the satisfaction of the following 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;(a)&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties contained in Article III shall be true and correct in all material respects on and as of the date of each Advance with the same effect as though made on and as of each such date, except that, for purposes of this Section, the representations and warranties contained in Section 3.05 shall be deemed to refer to the most recent Financial Statements furnished pursuant to Section 5.01.

&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)&nbsp;&nbsp;&nbsp;&nbsp;On the date of any Advance, no Default or Event of Default shall have occurred and be continuing.

Each request by the Borrower for an Advance shall constitute a representation and warranty by the Borrower that the conditions set forth in this Section 4.04 have been satisfied as of the date of such request. The failure of the Lender to receive notice from the Borrower to the contrary before such Advance is made shall constitute a further representation and warranty by the Borrower that the conditions referred to in this Section have been satisfied as of the date such Advance is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.05&nbsp;&nbsp;&nbsp;&nbsp;<u>Borrowing Limitations and Procedure for Advances.</u> Subject to Section 5.08 and the other terms and conditions hereof, the Lender shall undertake to make Advances from time to time for payment of construction costs of the Project and other development costs, all as described in the Construction Budget, as such construction is completed and as the other development costs all are incurred as the Lender or its Lender Engineer shall determine. The Lender's obligation to make any Advance is conditioned upon a request of the Borrower, delivery by the Borrower and approval by the

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Lender of the items required pursuant to Sections 4.01 through 4.04, satisfaction of all other conditions to Advances set forth herein, delivery of the items specified below and the performance by the Project Parties of all of their respective covenants, agreements and obligations under this Agreement and the other Loan Documents. Unless such modification has been consented to by Lender, Lender has the right to reject and require to be replaced or repaired any equipment, material or work that does not comply with the Plans and Specifications or with industry standards, to the extent available, and no Advance shall be made for such rejected work until such time as the material or work complies with the Plans and Specifications for the applicable generally accepted industry standards. The Borrower shall furnish to Lender from time to time, whenever requested, itemized statements showing prospective expenditures, expenditures due and unpaid, and items necessary for completion and will support such statements with receipted bills, affidavits, Lien waivers and/or evidence reasonably satisfactory to Lender. Notwithstanding anything in the Loan Documents to the contrary, Lender will not make any Advance or authorize any Advance that exceeds the Borrower's cost with respect to the particular line item in the Construction Budget.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Request for Advance.</u> At least fifteen (15) Business Days prior to the date on which the Borrower desires an Advance, the Borrower shall submit to the Lender (i) a Request for Advance in such form and substance as the Lender shall reasonably require; (ii) a revised Construction Budget showing the total Project costs to date and the balance of each category of construction costs; and (iii) a requisition using AIA Form G702/G703 or such other form as the Lender may request signed by the applicable Construction Contractor, subcontractors and the Independent Engineer and notarized, accompanied by original lien waivers for the prior period and original change orders, and copies of all invoices for all constructions costs requested to be paid with such Advance, the accuracy of which may at the Lender's option be certified by the Lender Engineer, and such other information and documentation required hereunder. The Lender shall not be required to Advance funds until five (5) days after the last required item is received. The Lender shall not be required to Advance funds for any line item in excess of the amount allocated to such line item as set forth in the Construction Budget. Requests for Advances shall not be made more often than once a month. Prior to each Advance, at the Borrower's expense, the Lender may request that the Lender Engineer inspect the Project to verify the accuracy in all material respects of all other reports, requests or documents submitted by the Borrower.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Tranche A Equity Requirements.</u> Notwithstanding anything in the Loan Documents to the contrary, if at any time the remaining availability under the Tranche A Commitment and the Committed Equity shall, in the reasonable and good faith judgment of the Lender, be insufficient to pay all costs set forth in the Construction Budget with respect to the Sub-Surface Facilities or reasonably identified by the Lender as being necessary or reasonably required to complete the Sub-Surface Facilities, the Borrower shall, at the request of the Lender, either (i) make a cash deposit with the Lender in an amount equal to the deficiency or (ii) deliver additional commitments in replacement of the Committed Equity which has been revoked, rescinded or terminated, if applicable. Failure of the Borrower to correct such deficiencies as aforesaid within thirty (30) days after Lender's request therefor shall, at the Lender's option, constitute an Event of Default under this Agreement. At Lender's option and notwithstanding anything in this Agreement to the contrary, Lender shall not be obligated to make any Advance until such deficiency shall have been corrected.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Advances.</u> The Lender shall make Advances through the Lender Engineer, in each case, as set forth in this Section. Upon approval of a Request for Advance by Lender and Lender Engineer as set forth in Article IV and satisfaction of the applicable conditions set forth in Article IV, the Borrower hereby authorizes (i) the Lender to make available the proceeds of each Loan in respect of such Request for Advance by transferring such proceeds to the account of Lender Engineer designated for the

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Project for further disbursement by Lender Engineer to the applicable Construction Contractor and such other parties as are designated in the Request for Advance and substantiating documentation; and (ii) the Lender Engineer to disburse such proceeds to the applicable Construction Contractor and such other parties as are designated in the Request for Advance and substantiating documentation: <u>provided</u> that Lender Engineer shall make disbursements directly to such other parties if so designated in such Request for Advance as well as to the applicable Construction Contractor. Notwithstanding the foregoing, disbursements from the Lender Engineer may be made via a joint-payee check with the applicable Construction Contractor or directly to the title company, vendors, subcontractors and other Persons furnishing labor, materials and/or equipment to the Site and/or the Project. The Borrower will complete such documentation as is necessary for Lender Engineer to manage disbursements under the Loan and monitor construction of the Project. The Borrower agrees to pay all normal and customary charges of the Lender for the Lender Engineer's 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;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest Advances.</u> The Lender shall have the right to pay itself interest when due by making an Advance of the applicable Loan without any written request for such Advance by the Borrower. Upon Advance of such interest payment, the amount Advanced shall be added to the outstanding principal sum of the applicable Loan, shall beat· interest at the rate set forth in the applicable Note and shall be secured by the Security Documents. Upon the occurrence and during the continuance of an Event of Default, the Lender shall have the right, but not the obligation, to continue to Advance payments of monthly interest installments. If the estimated interest amount budgeted in the Construction Budget is exhausted, or if the Lender determines, in its sole discretion, that the estimated interest amount budgeted in the Construction Budget will be insufficient to pay in full the then due and payable monthly interest installment or any portion thereof, then upon five (5) Business Days written notice from the Lender, the Borrower shall commence the payment of monthly interest installments in the amount that will eliminate the shortfall. Establishment of an interest reserve in the Construction Budget shall in no way relieve Borrower of its obligation to pay interest under the Notes once the interest reserve is depleted.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Change Orders: Contingency.</u> Notwithstanding anything in the Loan Documents to the contrary, (i) Lender will not make any Advance or authorize any Advance that exceeds the Borrower's cost or applicable Project Affiliate's cost with respect to the particular line item in the Construction Budget and (ii) any contingency in the Construction Budget greater than 15% of any budgeted line item set forth therein shall not be used or released without the prior written consent of the Lender (in consultation with the Lender's Engineer), which consent shall not be unreasonably withheld, conditioned or delayed.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Maximum. Amount Per Advance.</u> Unless otherwise approved by the Lender in its sole discretion, the Borrower shall not request, and the Lender shall not be required to make, any Advance that exceeds the amount of $12,800,000.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding of Advances.</u> Notwithstanding anything in the Loan Documents to the contrary, the Lender shall not be obligated to make any Advance (i) at any time that the progress of construction has become delayed in any material respect, unless Lender shall have approved an updated construction schedule, (ii) at any time that that equity requirements of Section 4.05(b) are not satisfied, (iii) if the Lender determines that any work or material does not comply in any material respect with the Plans and Specifications or sound building practice or otherwise departs from the requirements of this Agreement or any Construction Contract or (iv) if the construction of the Project shall require the written consent of any Person as a condition precedent to the construction of all or any material portion of the Project, until all such written consents shall have been delivered to the Lender.

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ARTICLE V

AFFIRMATIVE COVENANTS

Until the Obligations (other than contingent indemnity Obligations for which no claim has been asserted) shall have been repaid in full, the Borrower covenants and agrees with the Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Reporting Requirements.</u> The Borrower shall deliver or shall cause to be delivered the following documents to the Lender in such detail as reasonably requested by the Lender:

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual (CPA) Financial Statements - Borrower.</u> As soon as practicable, and in any event within thirty (30) days after completion (commencing with the fiscal year ending December 31, 2024), the Borrower shall furnish to the Lender its Financial Statements for such fiscal year. and the notes thereto, all in reasonable detail. All such Financial Statements shall be prepared on an audited basis and certified without qualification by a certified public accountant reasonably acceptable to the Lender and that such Financial Statements have been prepared in conformity with GAAP consistently applied.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual (CPA) Financial Statements - Guarantor.</u> As soon as practicable, and in any event within thirty (30) days after completion (commencing with the fiscal year ending December 31, 2024), each Guarantor shall furnish to the Lender its Financial Statements for such fiscal year, and the notes thereto, all in reasonable detail. All such Financial Statements shall be prepared on an audited basis and certified without qualification by a certified public accountant reasonably acceptable to the Lender and that such Financial Statements have been prepared in conformity with GAAP consistently applied.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Annual (Internal) Financial Statements - Borrower.</u> As soon as practicable, and in any event within ninety (90) days after the close of each fiscal year of the Borrower (commencing with the fiscal year ending December 31, 2024), the Borrower shall furnish to the Lender its Financial Statements for such fiscal year, and the notes thereto, all in reasonable detail. All such Financial Statements shall be certified by an Authorized Officer of the Borrower as presenting fairly the financial position of the Borrower in accordance with GAAP consistently applied from period to period.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Interim Financial Statements - Borrower.</u> As soon as practicable, and in any event within forty-five (45) days after the end of each fiscal quarter of the Borrower, the Borrower shall furnish to the Lender its Financial Statements for such fiscal quarter, all in reasonable detail and certified by an Authorized Officer of the Borrower as presenting fairly in all material respects the financial position of the Borrower in accordance with GAAP consistently applied from period to period.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Interim Financial Statements - Guarantor.</u> As soon as practicable, and in any event within forty-five (45) days after the end of each fiscal quarter of each Guarantor, each Guarantor shall furnish to the Lender its Financial Statements for such fiscal quarter, all in reasonable detail and certified by an Authorized Officer of such Guarantor as presenting fairly in all material respects the financial position of such Guarantor in accordance with GAAP consistently applied from period to period.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Monthly Construction Update.</u> Within fifteen (15) days after the end of each month, the Borrower will provide Lender with monthly updates on construction progress containing the items set forth on <u>Exhibit D</u> and the Construction Budget as well as the status of the Borrower's receipt of all required Governmental Approvals, to the extent not delivered on or prior to the Closing Date (and if not obtainable until a later stage of construction, the anticipated date of receipt thereof) (each such monthly update, a <u>"Monthly Construction Update").</u>

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&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Litigation.</u> Borrower will also provide a status report in detail reasonably acceptable to Lender with respect to any environmental, health and safety or other claim (pending or threatened in writing) against the Borrower or the Project that could result reasonably be expected to result in a material liability to a Project Party or material delay to completion of the Project's construction and operation.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Certain Project Payments.</u> Promptly, but in any event within fifteen (15) days after receipt by Borrower thereof, the Borrower shall provide the Lender with evidence requested by Lender (in form and substance satisfactory to the Lender) of all fees, costs and expenses paid by the Construction Contractors to their subcontractors, suppliers and vendors for the Project.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Auditor's Management Letters.</u> Promptly upon receipt thereof, copies of each report submitted to a Project party by independent public accountants in connection with any annual, interim or special audit made by them of the books of such Person including, without limitation, each report submitted to such Person concerning its accounting practices and systems and any final comment letter submitted by such accountants.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Income Tax Returns.</u> As soon as practicable, and in any event within thirty (30) days of the filing thereof, the Borrower shall annually furnish and shall cause the Guarantor to annually furnish to the Lender copies of the federal income tax returns of such Person, including all schedules and attachments filed with such returns.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Governmental Reports.</u> Promptly, but in any event within thirty (30) days after receipt by a Project Party, the Borrower shall deliver to the Lender with a copy of any site visit report or other reviews or notices issued by any Governmental Authority.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Promptly, and in any event within thirty (30) days following any request therefor, such other information regarding the operations, business affairs and financial condition of any Project Party or compliance with the terms of this Agreement, the other Loan Documents and the Project Documents as the Lender may reasonably 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;(m)&nbsp;&nbsp;&nbsp;&nbsp;Promptly, and in any event within ten (10) Business Days after the receipt thereof by any Project Party, copies of all material notices, progress reports, status reports, inspection reports, annual reports, requests, correspondence and other communications relating to the Project Documents and/or the Project.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Information.</u> The Borrower will promptly furnish to the Lender such other financial information, and in such form, as the Lender may reasonably request from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.02&nbsp;&nbsp;&nbsp;&nbsp; <u>Books and Records: Inspection Rights.</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)&nbsp;&nbsp;&nbsp;&nbsp;Each Project Party shall maintain proper books of accounts and records and enter therein complete and accurate entries and records of all of its transactions in accordance with GAAP and give representatives of the Lender access thereto at all reasonable times and upon reasonable prior notice, including permission to (a) examine, copy and make abstracts from any such books and records and such other information which might be helpful to Lender in evaluating the status of the Obligations as it may reasonably request from time to time and (b) communicate directly with any Project Party's officers, employees, agents, accountants or other financial advisors with respect to the business, financial conditions and other affairs of any Project Patty with no more frequency than is reasonable unless an Event of Default shall then exist. Without limiting the generality of the foregoing, so long as no Event of

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Default has occurred, the Lender or such Persons as the Lender may designate shall conduct field examinations of any Project Party on an annual basis, at the Borrower's expense, subject to reasonable prior notice and at reasonable times. Upon the occurrence of an Event of Default, the Lender may conduct any and all audits it deems necessary at the cost and expense of the Borrower.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the generality of the foregoing, promptly after receipt of a request from Lender, the Borrower shall provide copies of invoices and proof of payment thereof with respect to all line items in the Construction Budget and sufficient in the Lender's reasonable determination to verify the completion and commercial operation of the System.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.03&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction of the Project.</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)&nbsp;&nbsp;&nbsp;&nbsp;Promptly after the Closing Date, the Borrower shall commence (or cause the applicable Project Affiliate to commence) or continue development and construction of the Sub-Surface Facilities. Promptly after the Initial Tranche B Funding Date, the Borrower shall continue development and commence (or cause the applicable Project Affiliate or Construction Contractors to commence) construction of the Surface Facilities on or before the date set forth therefor in the Construction Budget. Subject to the foregoing, the Borrower will cause the construction of the Project to be carried forward with commercially reasonable diligence and continuity for completion by the Maturity Date. The Borrower shall cause the Project to be constructed in all material respects in accordance with the applicable Project Documents, Plans and Specifications and all applicable laws, statutes, codes, ordinances, rules and regulations, requirements of Governmental Authorities, permits, manufacturers' specifications and warranties, requirements of the Interconnection Agreement (if applicable), requirements of all applicable tariffs, and all other applicable agreements, covenants and restrictions within the boundaries of the Site, and otherwise in accordance with practices, standards and procedures customary in the geothermal power generation industry with respect to similar geothermal facilities. The Borrower shall utilize only the Project Affiliates, Construction Contractors and the other contractors, subcontractors, suppliers and vendors reasonably approved by the Lender to complete the Project. The Borrower and the Project Affiliates shall construct and maintain the Project in material compliance with the maintenance procedures prescribed by or recommended by and sufficient to keep in effect the warranties of manufacturers and vendors of the Project Equipment.

&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)&nbsp;&nbsp;&nbsp;&nbsp;In the event of the filing of any mechanics' or materialmen's Lien affecting the Project, the Borrower shall within thirty (30) days after the filing thereof or, if earlier, prior to the next Advance, cause such Lien to be subordinated, removed by bonding or otherwise, or insured over by the title company, in each case to the Lender's satisfaction.

&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)&nbsp;&nbsp;&nbsp;&nbsp;In the event that previously unreported cultural resources are encountered dming ground disturbing activities, the Borrower shall, to the extent required by applicable law, immediately cease all work within 100 feet until a qualified archaeologist has documented the discovery and evaluated its eligibility for the National Register of Historic Places (NRHP), as appropriate, in consultation with other Governmental Authorities, as appropriate.

&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)&nbsp;&nbsp;&nbsp;&nbsp;If human remains are encountered during ground disturbing activities, the Borrower shall, to the extent required by applicable law, immediately cease all work. The Borrower shall notify other Governmental Authorities, as appropriate, of the discovery within twenty-four (24) hours. The Borrower shall not resume work in the subject area without proper authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.04&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Damage.</u> Notwithstanding any provision of this Agreement to the contrary, if the Site shall have suffered any material damage or destruction, the Lender shall have the right to withhold

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any further Advance until the Borrower shall have submitted a plan to restore or replace such damaged or destroyed portion in a manner reasonably acceptable to the Lender (including but not limited to commercially reasonable evidence of available funds needed to pay for the cost of such restoration or replacement) and without cost to the Lender together with an update to the Construction Budget in connection therewith to the extent reasonably requested by Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.05&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Existence, Operation and Assets: Payment of Taxes and Other Charges.</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)&nbsp;&nbsp;&nbsp;&nbsp;Each of the Borrowers and the Borrower Parent (and the Sponsor with respect to the following clauses (i), (ii) and (iii)) shall do all commercially reasonable things necessary to (i) maintain, renew and keep in full force and effect its organizational existence and all authorizations, tights, trade names. patents, trademarks, permits, licenses and franchises necessary to enable it to continue its business as currently conducted; (ii) continue its business in the same manner in which it is currently conducted; (iii) keep its assets in good working order, operating condition and repair; and (iv) make all necessary and proper repairs, renewals, replacements, additions and Project thereto. Without limiting the generality of the foregoing, each of the Borrowers and the Borrower Parent shall obtain and maintain any and all material licenses, permits, franchises, governmental authorizations, patents, trademarks, copyrights or other rights necessary for the ownership of its assets and properties and the advantageous conduct of its business and as may be required from time to time by applicable law.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Project Party shall pay and discharge, as the same shall become due and payable (after giving effect to any applicable grace period), all its material obligations and liabilities, including (a) all material tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same ai·e being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by such Person; (b) all lawful claims which, if unpaid, would by law become a Lien upon its property, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by such Person; and (c) all material Indebtedness, subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Covenants. Agreements and Laws Affecting the Project.</u> Each of the Borrowers and the Borrower Parent shall comply in all material respects with all applicable laws, regulations and orders applicable to its assets, including all Environmental Laws, Anti-Corruption Laws, Anti-Money Laundering Laws and any laws, covenants and restrictions now of record affecting all or any part of the Project. Each of the Borrowers and the Borrower Parent shall comply with the Project Documents and all other material obligations under other contracts, instruments and agreements to which it is a party or to which any of its properties or assets may be subject and pay when due all bills for services or labor performed and materials supplied in connection with the construction of the Project, except where the failure to so comply could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.07&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance.</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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will (i) keep and maintain the Site, the System and all other property material to the conduct of the Borrower's business in good working order and condition, ordinary wear and tear excepted, and (ii) make necessary and proper repairs, renewals and replacements so that the Borrower's business carried on in connection therewith may be properly conducted at all times.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;At its own cost, the Borrower shall obtain and maintain at all times insurance against (i) loss, destruction or damage to its assets, properties and business of the kinds and in the amounts customarily insured against by Persons with established reputations engaged in the same or similar business as such Person and, in any event, sufficient to fully protect the Lender's interest in the Collateral and in an amount not less than the full replacement cost of the System and (ii) insurance against public liability and third party property damage of the kinds and in the amounts customarily insured against by Persons with established reputations engaged in the same or similar business as such Person. The Borrower shall further cause each contractor, vendor or supplier to the Project and/or at the Site to maintain reasonably acceptable general liability and workers compensation insurance.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall also cause the Guarantors and the Project Affiliates to maintain at all times insurance against (i) loss, destruction or damage to its assets, properties and business of the kinds and in the amounts customarily insured against by Persons with established reputations engaged in the same or similar business as such Person and (ii) insurance against public liability and third party property damage of the kinds and in the amounts customarily insured against by Persons with established reputations engaged in the same or similar business as such Person, in each case to the extent such insurance can be obtained and maintained on commercially reasonable terms.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Following the Initial Tranche B Funding Date, the Borrower or the applicable Construction Contractors shall obtain and maintain such builder's risk insurance over all applicable aspects of the Project as the Lender shall reasonably require and, upon request, provide Lender with reasonably acceptable evidence thereof

&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)&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall arrange for all installers to maintain reasonably acceptable general liability insurance, and, to the extent not covered by builder's risk insurance, Borrower, or the applicable Construction Contractors, shall maintain hazard insurance coverage for all Project Equipment and other materials while located off-Site or in transit to a Site, and, upon request, provide Lender with reasonably acceptable evidence thereof

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall arrange for all engineers for the System to maintain errors and omissions insurance coverage in reasonable amounts until the System has been completed and is fully operational and, upon request, provide Lender with reasonably acceptable evidence thereof.

&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)&nbsp;&nbsp;&nbsp;&nbsp;All insurance required to be maintained hereunder shall in each case be issued by insurers with ratings from the A.M. Best Company of at least A and otherwise acceptable to Lender, such insurance to (i) indicate Lender as additional insured, mortgagee and lender's loss payee, as applicable, and (ii) provide that Lender shall have thirty (30) days' written notice of any termination or material modification of such insurance; provided, however, that the foregoing clauses (i) and (ii) shall only be applicable to Construction Contractors or other contractors, vendors or suppliers to any System and/or at any Site to the extent that the cost of work in any particular Construction Contract or other applicable agreement is greater than $100,000.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the generality of any provision of this Section 5.07, the Borrower shall obtain and maintain such insurance as is described on <u>Schedule 5.07.</u> At any time upon the reasonable request of Lender, the Borrower shall provide reasonable evidence of any of the insurance required to be maintained pursuant to this Section 5.07.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.08&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Proceeds.</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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower acknowledges and agrees that the Lender will Advance the Tranche A Loan only for the payment of or reimbursement for the actual costs, fees and expenses incurred by the Borrower, or by Escalante and subject to reimbursement by the Borrower pursuant to the UODA, for (a) the construction and development of the Sub-Surface Facilities, as set forth in the Construction Budget; (b) interest carry, as set forth in the Construction Budget; and (c) the payment of a pro rata portion of the Loan Fee, any commitment fee and other closing costs and fees, as set forth in the Construction Budget or as approved by the Lender, and otherwise in accordance with the terms and subject to the conditions set forth in this Agreement including but not limited to Section 4.05.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower acknowledges and agrees that the Lender will Advance the Tranche B Loan only for the payment of or reimbursement for the actual costs, fees and expenses incurred by the Borrower for (a) the construction, development and commissioning the System and the Surface Facilities, as set forth in the Construction Budget; (b) interest carry, as set forth in the Construction Budget: and (c) the payment of a pro rata portion of the Loan Fee, any commitment fee and other closing costs and fees. as set forth in the Construction Budget or as approved by the Lender, and otherwise in accordance with the terms and subject to the conditions set forth in this Agreement including but not limited to Section 4.05.

&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)&nbsp;&nbsp;&nbsp;&nbsp;No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any rule or regulation of the Board of Governors of the Federal Reserve System, including Regulations T, U or X. The Borrower shall not use any part of any proceeds of the Loan (i) to fund or facilitate any activities or business of, with or involving any Sanctioned Person or (ii) in any manner that would constitute or give rise to a violation of Sanctions by any party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.09&nbsp;&nbsp;&nbsp;&nbsp;<u>Access to Site: Right to Stop Work: Correction of Defective Work.</u> The Borrower will allow the Lender, through the Lender Engineer and the Lender's officers, agents or employees, at all reasonable times and with reasonable prior notice, the right of entry and free access to the Site and the right to inspect all work done, labor performed and materials furnished or to be furnished in furtherance of the Project. If the Lender determines that any work or material does not comply in any material respect with the Plans and Specifications or sound building practice or otherwise departs from the requirements of this Agreement or the Project Documents, then the Lender may require the work to be stopped and may withhold Advances until the matter is corrected to the Lender's reasonable satisfaction. The Lender shall also have the right to require that the work be stopped upon the occurrence of a Default or an Event of Default. If the construction of the Project shall require, in the Lender's reasonable judgment, the written consent of any Person as a condition precedent to any aspect of the construction of the Project, the Lender may require the work to be stopped and may withhold further Advances of the Loan until all such written consents, in writing shall have been delivered to the Lender. The Borrower shall promptly correct or cause to be corrected any non-conforming work or materials. No such action by the Lender will affect the Borrower's obligation to complete the Project on or before the Maturity Date. The Lender shall be under no duty to examine, supervise or inspect the Plans and Specifications or the construction of the Project. Any inspection or examination by the Lender or the Lender Engineer is for the sole purpose of protecting the Lender's Liens and security interests and preserving its rights hereunder. No default or breach of the Borrower will be waived by any inspection by the Lender, nor shall any such inspections constitute a representation that there has been or will be compliance with the Plans and Specifications or that the construction is free from defective materials or workmanship. The Lender Engineer's services are for the sole benefit of the Lender and the Lender shall not be liable in any manner as a result of any inspection.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices of Materials Events.</u> The Borrower will furnish to the Lender prompt written notice upon an authorized Officer becoming aware of any of the following:

&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)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any Default or Event of Default;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any breach or default by any Person under any Project Document or of Escalante under any UODA Collateral Instrument the that remains in effect after the lapse of all applicable cure periods and which, to the Knowledge of the Borrowers, could reasonably be expected to result in a termination of such Project Document, an event of default under such UODA Collateral Instrument or a Material Adverse Effect;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting (i) any Borrower, the Borrower Parent or any counterparty to a Project Document that that, if adversely determined, could reasonably be expected to have a Material Adverse Effect or (ii) Sponsor or any Project Affiliate that, if adversely determined, could reasonably be expected to have a Material Adverse Effect with respect to any Borrower or the Project;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the execution and delivery of any Project Document (or material amendment or modification thereto) or any material permit, authorization, right or license (or amendment or modification thereto) entered into or obtained (i) after the Closing Date with respect to the Sub-Surface Facilities or (ii) after the Tranche B Funding Date with respect to the Surface Facilities, in each case together with a copy thereof and, if required by Lender, the written consent of any other party to such Project Document that is an Additional Key Project Document to the collateral assignment thereof to the extent not previously delivered to the Lender; 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;any other development, event or occurrence that results in, or could reasonably be expected to have, a Material Adverse Effect.

Each notice delivered under this Section 5.10 shall be accompanied by a statement of an Authorized Officer of the applicable Person setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11&nbsp;&nbsp;&nbsp;&nbsp;<u>ERISA.</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)&nbsp;&nbsp;&nbsp;&nbsp;Promptly during each year, each Borrower shall (i) pay and cause any subsidiaries to pay contributions adequate to meet at least the minimum funding standards under ERISA with respect to each and every Plan; (ii) file each annual report required to be filed pursuant to ERISA in connection with each Plan for each year; and (iii) notify the Lender within ten (10) days of the occurrence of any "Reportable Event" (as defined in ERISA) that might constitute grounds for termination of any capital Plan by the Pension Benefit Guaranty Corporation or for the appointment by the appropriate United States District Court of a trustee to administer any 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;With respect to a Plan subject to Title IV of ERISA, the Borrower shall promptly notify the Lender in writing of: (i) the occurrence of any reportable event under Section 4043(c) of ERISA for which the PBGC requires thirty (30)-day notice; (ii) any action by any Borrower to terminate or withdraw from a Plan or the filing of any notice of intent to terminate under Section 4041 of ERISA; or (iii) the commencement of any proceeding with respect to a Plan under Section 4042 of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Warranties.</u> The Borrower shall take or cause the Construction Contractors to take all such actions as are required by the terms of each Warranty to be in material

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compliance with the Warranty. The Borrower shall immediately notify Lender of any not.ice from any Warranty provider of any materials adverse change to any Warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Storage of Materials.</u> The Borrower shall cause all materials supplied for or intended to be utilized in the construction of the Project, but not yet affixed to or incorporated into the Project or Site, to be stored on the Site with adequate safeguards to prevent loss, theft, damage or commingling with materials for other projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Collateral.</u> Concurrently with the closing of any sale of any Equity Collateral by the Borrower Parent, the Borrowers will cause the purchaser of such Equity Collateral to execute and deliver to the Lender a joinder and amendment to the existing Pledge Agreement to effect the pledge of all Equity Collateral so transferred, and such other documents and agreements reasonably related thereto, with the understanding being that the Lender shall at all times have a perfected security interest in 100% of the membership interests issued by each Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Reserved.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Assurances.</u> The Borrower will and will cause each other Project Party to cure promptly any defects in the execution and delivery of the Loan Documents, including, with respect to the Borrower, this Agreement. The Borrower will, at its own expense, and will cause each other Project Party to promptly execute and deliver to Lender upon request all such other and further documents, agreements, instruments, notices or releases as may be necessary or appropriate in the reasonable judgment of the Lender to carry out the provisions and purposes of this Agreement and the other Loan Documents, including any amendments or modifications to such Person's Governing Documents as may be necessary or reasonably desirable to effectuate the Lender's tights hereunder.

ARTICLE VI

NEGATIVE COVENANTS

Until the Obligations (other than contingent indemnity Obligations for which no claim has been asserted) have been repaid in full, the Borrower covenants and agrees with the Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Liens.</u> Neither Borrower nor Borrower Parent will create, incur, assume or permit to exist any Lien on the Collateral other than Permitted Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Indebtedness.</u> Neither Borrower nor Borrower Parent will incur or enter into any agreement to incur any Indebtedness other than Permitted Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.03&nbsp;&nbsp;&nbsp;&nbsp;<u>Activities.</u> Borrower shall not engage in any business or activity other than (a) maintaining its corporate existence; (b) participating in tax, accounting and other administrative activities as part of the Sponsor's consolidated group of companies; (c) the execution, delivery and performance of the Loan Documents and Project Documents to which it is a party; and (d) such other activities reasonably necessary or desirable in furtherance of the purposes set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.04&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Payments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not and will ensure that the Borrower Parent will not pay dividends or make distributions to its owners, shareholders, members, partners or other holders of Equity Interests in such Persons, other than in connection with the contemporaneous repayment of the Obligations then due and payable in full.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;After the occurrence and during the continuance of an Event of Default, Sponsor will not pay dividends or make distributions to its owners, shareholders, members, partners or other holders of Equity Interests in Sponsor, other than in connection with the contemporaneous repayment of the Obligations then due and payable in full; provided, however, notwithstanding the foregoing, all Additional Capital Sources other than Excess Capital Proceeds shall be required to remain in Borrowers, Borrower Parent or Sponsor (as applicable to the particular transaction and reasonably determined by Sponsor) until used for the payment of costs and expenses incurred in the completion of the Surface Facilities (including commissioning and start-up costs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this Section 6.04 to the contrary, (i) the Borrower will be permitted to make payments to Affiliates in accordance with any Project Documents and (ii) the Sponsor will be permitted to make distributions to its shareholders in an aggregate amount equal to the additional federal, state or local taxes assumed to be payable by a shareholder of Sponsor as a result of Sponsor's status as a limited liability company, subchapter S corporation or any other entity that is disregarded for federal and state income tax purposes (as applicable), but only so long as Sponsor has elected to be treated as a pass though entity for federal and state income tax purposes and such election has not been rescinded or withdrawn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.05&nbsp;&nbsp;&nbsp;&nbsp;<u>Fundamental Changes.</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)&nbsp;&nbsp;&nbsp;&nbsp;No Change of Control shall occur, and no Project Patty (other than Sponsor, if not resulting in a Change of Control) shall merge or consolidate with any Person; provided, that with respect to any merger or consolidation of Sponsor, Sponsor shall be the survivor thereof or the survivor thereof shall expressly assume Sponsor's obligations under the Loan Documents to which Sponsor is a party pursuant to documentation reasonably acceptable in form and substance to Lender.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not and will ensure that each other Project Patty (other than Sponsor with respect to the following clauses (ii) through (v)) does not (i) liquidate or dissolve, (ii) except in connection with the consummation of the Tax Credit Purchase Transaction or third party investment for the purpose of receiving Tax Credits available with respect to the Project, make any material amendment or modification (including by waiver or consent) to its Governing Documents, including without limitation a change of name or jurisdiction of organization; (iii) change its principal place of business; (iv) "opt in" or take any other action that would subject the Equity Collateral to be subject to Article 8 of the UCC or permit or cause the Equity Collateral to be represented by a certificate or to otherwise constitute a security which must be registered with any Governmental Authority or may be traded on any public or private exchange or winch may be governed by Article 8 of the UCC; or (v) enter into or permit to exist any document or agreement (other than this Agreement or any Tax Credit Document) that limits the ability of the such Person to create, incur, assume or suffer to exist Liens on its property or requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not and will ensure that each other Project Party (other than Sponsor with respect to the following clauses (iii) and (iv)) does not (i) engage to any material extent in any business other than businesses of the type conducted by such Person on the Closing Date and businesses reasonably related thereto; (ii) cease conducting business: (iii) acquire by purchase, lease or otherwise all or any material portion of the assets of (including Equity Interests issued by) any Person; or (iv) purchase or hold any Equity Interests, securities, evidence of Indebtedness of or make or have outstanding any loan or advance to or otherwise extend credit to or make any investment or acquire any Equity Interest in any Person, other than Equity Interests in subsidiaries and affiliates as of the Closing Date and as described in the information made available to the Lender prior to the Closing Date.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Borrower nor the Borrower Parent shall have any 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;(e)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Borrower nor the Borrower Parent shall change its accounting policies or reporting practices, other than to the extent required by GAAP, or change its fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.06&nbsp;&nbsp;&nbsp;&nbsp;<u>Sale of Property.</u> The Borrower will not sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) any Collateral (whether now owned or hereafter acquired), other than Permitted Dispositions, and neither the Borrower nor any Project Affiliate shall sell, transfer, lease or otherwise dispose of any material assets necessary for or reasonably required for the continued development and construction of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.07&nbsp;&nbsp;&nbsp;&nbsp;<u>Project Documents.</u> The Borrower will not and will ensure that each other Project Party does not make or agree to any material alterations, amendments or other modifications (including by waiver or consent) to any material Project Document, whether at the time of renewal of such agreement or otherwise, that (i) has or could reasonably be expected to result in an adverse economic impact on a Project Party or Project Affiliate, (ii) shortens the term of such contract, (iii) imposes on such Person obligations in excess of those existing before such modification or (iv) could reasonably be expected to be materially adverse to the Lender. Notwithstanding the foregoing, the Borrower shall be permitted, upon notice to Lender, to terminate a Power Purchase Agreement (other than the SCE PPA) in connection with a contemporaneous amendment to the SCE PPA or entry into an additional power purchase agreement with Southern California Edison Company which provides for a full replacement of the revenue forecasted to be provided by the terminated Power Purchase Agreement as set forth in the Base Case Projections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.08&nbsp;&nbsp;&nbsp;&nbsp;<u>Transactions with Affiliates.</u> None of the Borrowers or the Borrower Parent will (a) enter into any contract with an Affiliate (other than a Project Party) for the purchase or provision of goods or services, (b) make any transfer of such Person's property or the proceeds of the Project to an Affiliate, or (c) in any other manner enter into a material transaction with any Affiliate (other than a Project Party), in each case except (i) Governing Documents, as applicable, (ii) applicable Project Documents that have been made available to the Lender prior to the Closing Date, (iii) the Shared Facilities Agreement, Supply Agreement, Unit Agreement, UODA and UODA Collateral Instruments or (iv) any other Project Documents entered into from time to time between a Borrower and any Affiliate pursuant to which the Borrowers reasonably expect to have annual obligations in an aggregate amount of $1,000,000 or less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.09&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Agreements.</u> Neither any Borrower nor the Borrower Parent will enter into or permit to exist any material agreement (other than this Agreement or any other Loan Document) that (a) limits the ability of such Person to create, incur, assume or suffer to exist Liens on its property or (b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person.

ARTICLE VII

DEFAULTS AND REMEDIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Events of Default.</u> The occurrence of one or more of the following events shall constitute an <u>"Event of Default"</u> hereunder:

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower fails to pay when due (i) any payment of principal of the Loan or (ii) any interest due on the Loan or other sum payable hereunder and with respect to this clause (ii) such nonpayment continues five (5) Business Days beyond the date on which such payment was due or the

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Borrower fails to comply with the provisions requiting mandatory prepayment of the Loan under the terms of any Note; 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;Any "Event of Default" (as so defined therein) occurs and is continuing under any of the other Loan Documents and such "Event of Default" remains uncured (as so defined therein); 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;(c)&nbsp;&nbsp;&nbsp;&nbsp;Any representation or warranty made by any Project Party under this Agreement or any of the other Loan Documents or deemed to have been made hereunder or thereunder or made by or furnished on behalf of any Project Party in connection with the transactions contemplated hereby or thereby shall prove to have been false or misleading in any material respect as of the time made or deemed to have been made; provided that no Event of Default shall occur if, within thirty (30) days after the earlier of such Project Party having Knowledge or receiving written notice that such false or misleading representation or warranty has been made, the applicable Project Party shall have eliminated or otherwise cured the impact of such default; 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;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except as consented to by Lender, any Security Document shall for any reason (other than pursuant to the terms thereof or as a direct result of the action or inaction of the Lender) cease to create a valid and perfected first priority Lien on the Collateral purported to be covered thereby, subject only to Permitted Encumbrances; 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)&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower or any other Project Party fails to perform or observe any term, covenant or agreement contained in any of Section 5.01, 5.03, 5.05 (regarding maintaining its existence), 5.08, 5.14 or Article VI or (ii) the Borrower or any other Project Party shall default in the performance or observance of any covenant, agreement or duty under this Agreement or any other Loan Document (not constituting an Event of Default under any other provision of this Section 7.01) and such default under this clause (ii) continues for thirty (30) days after the earlier of such Project Party having Knowledge thereof or receiving written notice from Lender of such failure; 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;(f)&nbsp;&nbsp;&nbsp;&nbsp;A proceeding shall be instituted in respect of any Project Party or any Project Affiliate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;seeking to have an order for relief entered in respect of such Person, or seeking a declaration or entailing a finding that such Person is insolvent or a similar· declaration or finding, or seeking dissolution, winding-up, charter revocation or forfeiture, liquidation, termination of operations, reorganization, arrangement, adjustment, composition or other similar relief with respect to such Person, its/his/her assets or debts under any law relating to bankruptcy, insolvency, relief of debtors or protection of creditors, termination of legal entities or any other similar law now or hereinafter in effect which shall not have been dismissed or stayed within thirty (30) days after such proceedings were instituted, or an order, order for relief, judgment or decree in respect thereof shall be entered; 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;seeking appointment of a receiver, trustee, custodian, liquidator, assignee, sequestrator or other similar official for such Person or for all or any substantial part of its/his/her property which shall not have been dismissed or stayed within thirty (30) days after such proceedings were instituted; 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;(g)&nbsp;&nbsp;&nbsp;&nbsp;Any Project Party or any Project Affiliate shall become insolvent, shall admit in writing its inability or become generally unable to pay its/his/her debts as they become due, shall voluntarily suspend transaction of its business, shall make a general assignment for the benefit of creditors, shall institute a proceeding described in Section 7.0l(f)(i) or shall consent to any order for relief,

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declaration, finding or relief described in Section 7.0l(f)(i), shall institute a proceeding described in Section 7.0l(f)(ii) or shall consent to the appointment or to the taking of possession by any such official of all or any substantial part of its/his/her property whether or not any proceeding is instituted, dissolve, wind-up or liquidate itself or any substantial part of its/his/her property, or shall take any action in furtherance of any of the foregoing; 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;(h)&nbsp;&nbsp;&nbsp;&nbsp;Any Project Party or any Project Affiliate defaults beyond all applicable cure periods under any Project Document to which it is a party, and such default terminates or permits the counterparty to such Project Document, to terminate such Project Document, or an un-Affiliated third party defaults beyond all applicable cure periods under any Project Document to which it is a party, and such default has or could reasonably be expected to have a Material Adverse Effect, or the Interconnection Agreement or the SCE PPA shall fail to be in foll force and effect, or any party thereto shall so assert, and such assertion shall fail to be favorably resolved within ninety (90) days, or the counterparty to the Interconnection Agreement or the SCE PPA shall take any action in furtherance of any of the events described in the foregoing sub-sections (f) or (g); 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;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower or any other Project Party or Project Affiliate (A) defaults beyond all applicable cure periods in any payment of principal or interest on any Indebtedness (other than the Obligations) in an original principal amount in excess of (x) $1,000,000 or (y) with respect to the Sponsor, $5,000,000, or (B) breaches any other agreement, material term or condition contained in any agreement related to any such Indebtedness beyond all applicable cure periods or if any other event shall occur and be continuing thereunder and such default, breach or other event causes or permits the holder or holders of such Indebtedness (or a trustee on behalf of such holder or holders) to cause such obligation to become due prior to any stated maturity; 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;(j)&nbsp;&nbsp;&nbsp;&nbsp;Any Person shall obtain an order or decree in any court of competent jurisdiction enjoining or delaying the construction of the Project or enjoining or prohibiting the carrying out of the terms and conditions hereof or of any other Loan Document and such proceedings are not discontinued or such order or decree is not vacated or appealed within thirty (30) days and as a result thereof, work on the Site has stopped; 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;(k)&nbsp;&nbsp;&nbsp;&nbsp;Any Project Party or any Project Affiliate shall have concealed, removed or permitted to be concealed or removed any part of its property, with intent to hinder, delay or defraud its creditors or any of them, or made or suffered a transfer of any of its property which may be fraudulent under any bankruptcy, fraudulent conveyance or similar· law; or shall have made any transfer of its property to or for the benefit of a creditor at a time when other creditors similarly situated have not been paid while such Project Patty or Project Affiliate is insolvent; or shall have suffered or permitted, while insolvent, any creditor to obtain a Lien upon any of its property through legal proceedings; 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;(l)&nbsp;&nbsp;&nbsp;&nbsp;Other than pursuant to the terms thereof, any Loan Document shall fail to be in full force and effect, or any Project Party shall so assert or deny further liability or obligation thereunder; 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;(m)&nbsp;&nbsp;&nbsp;&nbsp;A final, nonappealable judgment or order for the payment of money in an amount in excess of (x) $1,000,000 or (y) with respect to the Sponsor, $5,000,000, in excess of applicable insurance coverages (where the insurer has admitted coverage) is entered against any Project Party, or any other judgment or order (including any writ or warrant of attachment, garnishment, execution, distraint, levy or other seizure or similar process) is entered that has or could reasonably be expected to have a Material Adverse Effect against any Project Party or Project Affiliate, and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall

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be any period of thirty (30) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; unless there is a reserve in accordance with GAAP; 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;(n)&nbsp;&nbsp;&nbsp;&nbsp;Any part of the Project, the Sub-Surface Facilities, the Surface Facilities or the System is so demolished, destroyed or damaged that, in the reasonable opinion of the Lender, it cannot be promptly (and in any event prior to the Maturity Date) restored or rebuilt with available funds to a condition substantially similar to that which existed immediately prior to such event, or any assets of a Project Patty or a Project Affiliate shall be condemned, confiscated or seized and cannot be promptly (and in any event prior to the Maturity Date) replaced with like assets from available funds; 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;(o)&nbsp;&nbsp;&nbsp;&nbsp;Following the Initial Tranche B Funding Date, (i) any EPC Contractor shall fail to be the contractor under its EPC Contract unless the Borrower secures an alternative general contractor acceptable to Lender (such acceptance not be unreasonably withheld, denied or delayed) within ninety (90) days after such failure or (ii) any EPC Contractor shall transfer or assign (or take any action to transfer or assign) any of its rights or obligations under the primary Construction Contract for the construction of the Surface Facility to any Person (other than an alternative general contractor acceptable to Lender (such acceptance not be unreasonably withheld, denied or delayed)) without the prior written consent of Lender (such consent not be unreasonably withheld, denied or delayed); 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;(p)&nbsp;&nbsp;&nbsp;&nbsp;The equipment and materials used in connection with the construction of the System shall fail in any material respect to be in accordance with the Plans and Specifications and are not repaired or replaced within thirty (30) days after the Borrower's Knowledge of such failure or, if such materials cannot be repaired or replaced within such thirty (30)-day period, the Borrower has commenced to repair or replace such materials, diligently pursues such repair or replacement and repairs or replaces such materials within the earlier of (i) the thirtieth (30<sup>th</sup>) day after the expiration of the initial thirty (30)- day period and (ii) ten (10) days prior to the Maturity Date; 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;(q)&nbsp;&nbsp;&nbsp;&nbsp;Any Lien or other defect in the title to the leasehold estate in the Site not a Permitted Encumbrance shall be created, arise or otherwise come into existence, and the Borrower fails to have such Lien or other defect in title removed, released or fully bonded within thirty (30) days after the earlier to occur of (i) the Borrower's Knowledge thereof or (ii) written notice from Lender to the Borrower thereof; 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;(r)&nbsp;&nbsp;&nbsp;&nbsp;Any Project Party or any Project Affiliate shall neglect, refuse or fail to keep in full force and effect any permit or approval issued by any Governmental Authority or agency which is required for the Project, the Sub-Surface Facilities, the Surface Facilities or the System and such failure shall continue for a period in excess of thirty (30) Business Days after the earlier to occur of (i) such Person's Knowledge of such failure or (ii) written notice from Lender to the Borrower of such failure; 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;(s)&nbsp;&nbsp;&nbsp;&nbsp;A Project Party shall abandon the construction of the Project, the Sub-Sm-face Facilities, the Surface Facilities or the System for a period of thirty (30) consecutive days or any Project Party shall publicly announce such abandonment; <u>provided, however,</u> that a Force Majeure Event shall not constitute abandonment provided the Project Parties and the Project Affiliates are taking reasonable measures to commence and/or continue construction and development of the affected asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Remedies.</u> If any Default shall occur and be continuing, Lender may, at its option and without notice to Borrower, withhold further Advances and other extensions of credit to Borrower. Upon the occurrence and during the continuance of any one or more of the Events of Default, at the Lender's option, all obligations on the Lender's part to make the Loan, or to make any further Advances hereunder

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shall cease and terminate, and the Loan and all sums then or thereafter due under any and all of the Loan Documents shall thereupon become immediately due and payable. Without limitation of the foregoing, upon the occurrence of an Event of Default described in subsections (f) or (g) of Section 7.01, the Lender's obligation to make Advances shall automatically terminate and the Loan and all other Obligations of the Borrower hereunder and under the other Loan Documents shall immediately and automatically become due and payable, without presentment, demand, protest, notice of protest, declaration or notice of acceleration or intention to accelerate, and the Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other Loan Document to the contrary notwithstanding. Upon the occurrence and during the continuation of an Event of Default, Lender may (a) set off the amounts due Lender under the Loan Documents against any and all accounts, credits, money, securities or other property of Borrower now or hereafter on deposit with, held by or in the possession of Lender to the credit or for the account of Borrower, without notice to or the consent of Borrower and (b) bring suit against Borrower or Guarantor to collect the Obligations and enforce any or all of its rights hereunder or under any other Loan Documents, or at law or in equity, and, in addition, the Lender, at its option, may apply any or all funds on deposit with Lender to the payment of outstanding invoices and to the completion of the Project, with the right and power in such event to enter upon and take possession of the Site, to make such changes in the Plans and Specifications or the Project Documents as may seem desirable, and to do all things reasonably necessary in the Lender's opinion to complete or partially complete the Project. The Lender shall not be responsible for the workmanship or materials in such completion of construction. The Borrower irrevocably appoints the Lender as its attorney-in-fact, with full power of substitution, to complete the Project in the Borrower's name or the Lender may elect to complete construction in the Lender's name.

ARTICLE VIII

SPECIAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Nature of Inspections and Approvals.</u> From and after the Closing Date and until the date that all Obligations are paid or otherwise discharged in full, Lender shall at its option have the right to make inspections, subject to <u>Section 5.02,</u> of the Site with reasonable prior notice and to approve, among other things, the Plans and Specifications, the other Project Documents and any other contracts related to the Project, such approval not to be unreasonably withheld, conditioned or delayed. No right of inspection or approval contained herein shall be deemed to impose upon Lender any duty or obligation whatsoever to undertake any inspection or to make any approval. No inspection made or approval given by Lender shall be deemed to impose upon Lender any duty or obligation whatsoever to correct any defects in the Project, the System, the Plans and Specifications, or any other Project Document or any other contracts, documents or properties, or to notify any person with respect thereto, and provided, further, that no liability shall be imposed upon Lender, and no warranties (either express or implied) are made by Lender as to the quality or fitness of any Project Equipment constituting all or part of the System or the Plans and Specifications, and no such liability or warranty shall be deemed or construed to arise by reason of any inspection of the Site or approval by Lender, its agents, employees or representatives, any such inspections and approvals being made solely for the benefit of Lender. So long as no Event of Default has occurred and is continuing, (a) there shall not be more than one (1) site inspection described under this <u>Section 8.01</u> in any calendar· month, and (b) any such site inspection, other than to the extent prepaid on the Closing Date or included as an approved cost in the Construction Budget, shall be at Lender's sole expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.02&nbsp;&nbsp;&nbsp;&nbsp;<u>No Third-Party Beneficiaries.</u> The terms, provisions, conditions and requirements made and set forth herein are for the benefit of the parties hereto and to better define the terms of the Loan, in no event shall Lender be construed to be Borrower's agent and in no event is Lender assuming the

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Borrower's responsibility for proper payments to contractors or others. It is specifically further intended that no Person shall be a third-party beneficiary hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.03&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance and Protective Advances by Lender.</u> At any time (i) upon the occurrence and during the continuation of an Event of Default or (ii) after ten (10) Business Days have passed from the date that Lender delivers a written notice to Borrower that Borrower or a Project Affiliate has failed to pay, maintain, discharge, or comply with any liability or obligation set forth below and such failure is continuing, the Lender, at its sole option and in its sole discretion, may perform or cause to be performed the same and in so doing may expend such sums as the Lender may deem necessary or advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, assessments, governmental charges or levies, a payment to obtain a discharge or release of a Lien or to prevent the imposition of a Lien, expenditures made in defending against any adverse claim or other legal obligation and all other expenditures that the Lender may make for the protection of the Collateral or the value of any Collateral or which it may be compelled to make by operation of law. All such sums and amounts so expended shall be considered an Advance (on a pro rata basis to each Loan) and shall be repayable by the Borrower upon demand, shall constitute additional Obligations hereunder and under the other Loan Documents and shall be secured by the Collateral. The Lender shall promptly notify the Borrower of any amounts so expended. No such performance of any covenant or agreement by the Lender on behalf of the Borrower, and no such Advance or expenditure therefor, shall relieve the Borrower of any default under the terms of this Agreement or any other Loan Document. The Lender may make any payment hereby authorized in accordance with any bill, statement or estimate procured from the appropriate public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent the Borrower has provided written notice to the Lender that such payment is being contested in good faith by the Borrower in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.04&nbsp;&nbsp;&nbsp;&nbsp;<u>Project Affiliate Contracts.</u> Each Borrower shall preserve, protect and defend its material tights, in each case to the extent relating to the Project, under the Shared Facilities Agreement, Supply Agreement, Unit Agreement, UODA and UODA Collateral Instruments, as applicable, including prosecution of suits to enforce any of its rights thereunder and enforcement of any claims with respect thereto. Without limiting any other obligation herein, the Borrowers shall keep the Lender fully informed of the status of any such enforcement proceedings and provide to the Lender all documentation and information reasonably related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.05&nbsp;&nbsp;&nbsp;&nbsp;<u>Third-Party Financings.</u> The Borrowers and the Lender acknowledge that (a) subsequent to the Closing Date and prior to the full discharge of the Obligations, the Sponsor and the Borrowers may receive offers from third-party lenders providing for additional financing of the Project terms requiring the Lender to subordinate its interest in the Collateral to such third-party lenders and (b) to the extent the Borrowers wish to pursue any such additional financing, the Borrowers and Lender agree to negotiate in good faith mutually agreeable amendments to the Loan Documents and other agreements as may be needed to facilitate the closing of such additional financing; provided, that nothing contained in this <u>Section 8.05</u> shall obligate the Lender to enter into any such amendment or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.06&nbsp;&nbsp;&nbsp;&nbsp;<u>Confirmation of Completion.</u> If the Loans are prepaid in full and the Loan Documents terminated prior to completion of the construction of the Project (including commissioning and commencement of commercial operations), the Borrowers shall (promptly after receipt of a written request of Lender and at Lender's reasonable cost) provide reasonable, non-confidential evidence of such completion of construction to Lender. The obligation of the Borrowers contained in this Section 8.06 shall survive the termination of this Agreement, payment of any Loan and assignment of any tights hereunder.

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ARTICLE IX

MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.01&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices.</u> All notices, demands, requests, consents, approvals and other communications required or permitted hereunder (the <u>"Notices")</u> must be in writing and will be effective upon receipt. Notices may be given in any manner to which the patties may separately agree, including electronic mail. Without limiting the foregoing, first-class mail, facsimile transmission and commercial cornier service are hereby agreed to as acceptable methods for giving the Notices. Regardless of the manner in which provided, the Notices may be sent to a patty's address set forth below or to such other address as any patty may give to the other for such purpose in accordance with this Section:

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| | |
|:---|:---|
| To the Borrower: | Cape Generating Station 1, LLC |
|  | Cape Generating Station 3, LLC |
|  | c/o Fervo Energy Company |
|  | 910 Louisiana Street, Suite 4400 |
|  | Houston, TX 77002 |
|  | Attention: CEO |
| To the Lender: | XRL ALC, LLC |
|  | 3 W. Main Street, Suite 103 |
|  | Irvington, NY 10533 |
|  | Attention: Loan Servicing/Fervo Energy Company |
|  | Telephone: [\*\*\*] |

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The Borrower or the Lender may change its address for notice purposes by notice to the other parties in the manner provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.02&nbsp;&nbsp;&nbsp;&nbsp;<u>Expenses.</u> The Borrower agrees to pay or cause to be paid and to save the Lender harmless against liability and reimburse the Lender for the payment of (i) all reasonable out-of-pocket costs and expenses whatsoever paid or incurred by the Lender (including the fees, charges and disbursements of any counsel for Lender) in connection with or arising from the Loan and the transactions contemplated by this Agreement and the other Loan Documents at any time, in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents, or any amendments, modifications or waivers of the provisions hereof or thereof, and (ii) all out of pocket costs and expenses whatsoever paid or included by the Lender (including the fees, charges and disbursements of any counsel for Lender) in connection with the enforcement or protection of its tights under this Agreement and under the other Loan Documents, including all such out-of-pocket expenses included during any workout, restructuring or negotiations in respect of such Loan, all of which the Lender is authorized to Advance (on a pro rata basis from each Loan) or deduct from the proceeds of any disbursement of all or any portion of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.03&nbsp;&nbsp;&nbsp;&nbsp;<u>Preservation of Rights.</u> No delay or omission on the Lender's part to exercise any right or power arising hereunder will impair any such right or power or be considered a waiver of any such tight or power, nor will the Lender's action or inaction impair any such right or power. The Lender's tights and remedies hereunder am cumulative and not exclusive of any other tights or remedies which the Lender may have under other agreements, at law or in equity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.04&nbsp;&nbsp;&nbsp;&nbsp;<u>Illegality.</u> If any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, it shall not affect or impair the validity, legality and enforceability of the remaining provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.05&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments.</u> No modification, amendment or waiver of, or consent to any departure by the Borrower from, any provision of this Agreement will be effective unless made in a writing signed by the Lender (and, with respect to modifications and amendments, the Borrower), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on the Borrower will entitle the Borrower to any other or further notice or demand in the same, similar or other circumstance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.06&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement.</u> This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement and supersedes all other prior agreements and understandings, both written and oral, between the patties with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.07&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts.</u> This Agreement may be executed in any number of counterpart copies and by the patties hereto on separate counterparts, each of which shall be deemed to be an Original and all of which, taken together, shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission or electronically in ".pdf." format shall be effective as delivery of a manually executed counterpart. Any party so executing this Agreement by facsimile transmission or electronically in ".pdf" format shall promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile transmission or electronically in ".pdf" format.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.08&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns.</u> lb.is Agreement will be binding upon and inure to the benefit of the Borrower and the Lender and their respective heirs, executors, administrators, successors and assigns; provided, however, that the Borrower may not assign this Agreement in whole or in part without the Lender's prior written consent, and the Lender at any time may assign this Agreement in whole or in part in accordance with Section 9.11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.09&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Waivers.</u> The Borrower hereby relieves and discharges the Lender from any and all liability and responsibility whatsoever arising out of any Advance and agrees and acknowledges that the Lender does not assume any responsibility whatsoever for the method of disbursement, the application or use of Advances or as to any Liens or claims whatsoever which might attach to or be filed against the Site; provided, however, that the foregoing shall not apply to any liabilities or responsibilities solely attributable to Lender's gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnity.</u> The Borrower agrees to indemnify each of the Lender, each Person, if any, who Controls the Lender and each of their respective directors, officers and employees (the <u>"Indemnified Patties"),</u> and to hold each Indemnified Party harmless from and against, any and all claims, damages, losses, liabilities and expenses (including all fees and changes of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation therefor) which any Indemnified Patty may incur, or which may be asserted against any Indemnified Patty by any Person or Governmental Authority (including any Person claiming derivatively on behalf of the Borrower), in connection with or arising out of or relating to the matters referred to in this Agreement or in the other Loan Documents or the use of the proceeds of the Loan, whether (a) arising from or included in connection with any breach of a representation, warranty or covenant by the Borrower or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or contract or otherwise, before any Governmental Authority; provided, however, that the foregoing indemnity agreement shall not apply to

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any claims, damages, losses, liabilities and expenses solely attributable to an Indemnified Party's gross negligence or willful misconduct. The indemnity agreement contained in this Section 9.10 shall survive the termination of this Agreement, payment of any Loan and assignment of any tights hereunder. The Borrower may participate at its expense in the defense of any such action or claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignments and Participations.</u> At any time, without prior written consent of the Borrower, the Lender may sell, assign, transfer, negotiate or otherwise dispose of (any such foregoing action, an <u>"Assignment")</u> all or any part of the Lender's interest in the Loan; provided, that (a) if Lender desires to make an Assignment which transfers all servicing lights and obligations of the Lender with respect to the Loan, other than after the occurrence and during the continuance of any Event of Default, then the Lender shall have first obtained the prior written consent of the Borrower to such Assignment, such consent not to be unreasonably withheld, conditioned or delayed; and (b) notwithstanding anything to the contrary contained in the foregoing, Lender may from time to time from sell participations in its Commitment (and Loans made thereunder) in any amounts and without the prior written consent of Borrower; *provided,* that in the case of this <u>clause (d):</u> (i) the Lender's obligations under this Agreement shall remain unchanged, (ii) the Lender shall remain solely responsible to the other patties hereto for the performance of its obligations hereunder, and (iii) the Borrower and the Lender shall continue to deal solely and directly with each other in connection with the Lender's and the Borrower's tights and obligations under this Agreement and the other Loan Documents. The Borrower hereby authorizes the Lender to provide, without any notice to the Borrower, any information concerning the Borrower, including information remaining to the Borrower's :financial condition, business operations or general creditworthiness, to any Person which may succeed to or participate in all or any part of the Lender's interest in the Loan. Notwithstanding anything to the continue, but only so long as no Event of Default then exists, Lender may not sell, assign, transfer, negotiate, grant participations in or otherwise dispose of all or any part of the Lender's interest in the Loan to any Person who is engaged in the geothermal business or who, at such time, holds a similar evidence of Indebtedness in other geothermal companies, other geothermal projects or other geothermal assets. In connection with any Assignment for which the Borrower's prior written consent is required, the Lender shall provide such information regarding the names and addresses of the assignee of the Loan as the Borrower shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law and Jurisdiction.</u> This Agreement will be interpreted and the rights and liabilities of the patties hereto determined in accordance with the laws of the State of New York without regard to conflicts of law or choice of law principles (other than sections 5-1401 and 5-1402 of the New York General Obligations Law). The Borrower hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district where the Lender's office indicated above is located; provided that nothing contained in this Agreement will prevent the Lender from bringing any action, enforcing any award or judgment or exercising any tights against the Borrower individually, against any security or against any property of the Borrower within any other county, state or other foreign or domestic jurisdiction. The Lender and the Borrower agree that the venue provided above is the most convenient forum for both the Lender and the Borrower. The Borrower waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest Rate Limitation.</u> Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which may be treated as interest on such Loan under applicable law (collectively, the <u>"Charges"),</u> shall exceed the maximum lawful rate of interest (the <u>"Maximum Rate")</u> which may be contracted for, charged, taken, received or reserved by the Lender in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and (i) the amount which would be excessive interest shall be deemed applied to the

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reduction of the principal balance of the Obligations and not to the payment of interest, and (ii) if the Loan has been or is thereby paid in full, the excess shall be returned to the patty paying the same, such application to the principal balance of the Obligations or the refunding of excess to be a complete settlement and acquittance thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Right of Setoff.</u> In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such tights, the Lender shall have the right, at any time or from time to time upon the occurrence and dming the continuance of an Event of Default, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, to set off and apply against all deposits (general or special, time or demand, provisional or final) of the Borrower at any time held or other obligations at any time owing by the Lender to or for the credit or the account of the Borrower against any and all Obligations held by the Lender, irrespective of whether the Lender shall have made demand hereunder and although such Obligations may be unmatured. The Lender agrees promptly to notify the Borrower after any such set-off and any application made by the Lender; <u>provided</u> that the failure to give such notice shall not affect the validity of such set-off and application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15&nbsp;&nbsp;&nbsp;&nbsp;<u>WAIVER OF JURY TRIAL.</u> EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation of Liability.</u> To the fullest extent permitted by law, no claim may be made by the Borrower, any of its subsidiaries or any Guarantor against the Lender or any Affiliate, director, officer, employee, attorney or agent of the Lender for any special, incidental, consequential or punitive damages in respect of any claim arising from or relating to this Agreement or any other Loan Document or any statement, course of conduct, act, omission or event occurring in connection herewith or therewith (whether for breach of contract, tort or any other theory of liability). The Borrower for itself and each of its subsidiaries and any Guarantor hereby waives, releases and agrees not to sue upon any claim for any such damages, whether such claim presently exists or arises hereafter and whether or not such claim is known or is suspected to exist in its favor. This Section shall not limit any rights of any of the Borrower, its subsidiaries or any Guarantor arising solely out of gross negligence or willful misconduct of any such indemnitee as finally determined by a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Time Is of the Essence.</u> Time is of the essence in interpreting and performing this Agreement and all other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Publicity.</u> Lender may use the Borrower's and its Affiliates' names and a general description of this Agreement in its marketing materials; provided that the substance of such marketing materials as they relate to Borrower, the Project or this Agreement shall be subject to Borrower's prior consent, not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Retention of Servicer.</u> The Lender reserves the light to retain a servicer to act as its agent hereunder (the <u>"Servicer")</u> with such powers as ai·e specifically delegated to the Servicer by Lender, whether pursuant to the terms of this Agreement, any pooling and servicing agreement or similar agreement entered into as a result of a secondary market transaction or otherwise, together with such other powers as are reasonably incidental thereto. The Borrower shall pay any reasonable fees and expenses of the Servicer (i) in connection with a release of the Collateral (or any portion thereof), (ii)

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from and after a transfer of the Loan to any "master servicer" or "special servicer" for any reason, (iii) in connection with an assumption or modification of the Loan, (iv) in connection with the enforcement of the Loan Documents or (v) in connection with any other action or approval taken by the Servicer hereunder on behalf of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Joint and Several Liability.</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)&nbsp;&nbsp;&nbsp;&nbsp;Each and every reference to and any and all representations, warranties, covenants and undertakings of the Borrower herein, including but not limited to the Events of Default, shall be deemed to apply to all Borrowers, jointly and separately.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Obligations of each Borrower under, and all representations, warranties and covenants in, this Loan Agreement and the Loan Documents shall be direct and primary and joint and several in all respects whatsoever.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Lender may deal with any Borrower as if it were the sole obligor, without impairing in any way the Obligations of any other Borrower. Without limiting the generality of that tight, Lender may in particular release, impair or fail to perfect an interest in any Collateral, waive def<sup>a</sup>ults by any of them or extend or compromise the Obligations without the consent of any other Borrower.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Borrower represents that it has carefully considered the alternatives to and the legal consequences of incurring joint and several liability under this Agreement and has determined that by such arrangement it is able to obtain financing on terms more favorable than otherwise and that under a joint and several facility each Borrower will realize substantial interest savings over alternative financing arrangements.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Cape Generating Station 1, LLC hereby irrevocably appoints Cape Generating Station 3, LLC, acting independently or on behalf of any Borrower (the <u>"Borrower Agent",</u> as its agent representative to deal with the Lender on its behalf in all respects in connection with this Agreement, the other Loan Documents and the transactions contemplated herein and therein. Each Borrower agrees to be bound by all actions of the Borrower Agent in all such respects.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Lender may bring a separate action or actions under this Agreement against each or any Borrower, whether such action is brought against any other Borrower or any other Borrower is not joined therein. Each Borrower agrees that any release which may be given to any other Borrower shall not release any other Borrower from the Obligations. Each Borrower hereby waives any tight to assert against Lender any defense (legal or equitable), set off, cou<sup>n</sup>terclaim, or claims which any of them individually may now or any time hereafter have against any other Borrower.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Any and all present and future debt and other liabilities of any Borrower to another Borrower is hereby subordinated to the full payment and performance of all Obligations.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Borrower is presently informed as to the financial condition of each other Borrower and all other circumstances of each other Borrower relating to the Loan Documents that a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations. Each Borrower hereby covenants that it will continue to keep itself informed as to the financial condition of each other Borrower, the status of each other Borrower and all circumstances that bear upon the risk of nonpayment. Each Borrower hereby waives any and all tights it may have to require Lender to disclose to such Borrower any information that Lender may now or hereafter acquire concerning the condition or circumstances of each other Borrower.

------

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Borrower waives, to the extent permitted by applicable law, all rights to notices of default, existence, creation or incurring of new or additional Indebtedness and all other notices of formalities to which such Borrower may, as joint and several obligor, be entitled.

&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)&nbsp;&nbsp;&nbsp;&nbsp;With respect to any other Borrower, all Obligations shall survive any discharge or compromise of any Borrower's debts in bankruptcy or 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;(k)&nbsp;&nbsp;&nbsp;&nbsp;Each Borrower hereby waives, to the extent permitted by applicable law, all defenses, counterclaims and off-sets of any kind or nature, whether legal or equitable, that may arise (i) directly or indirectly from the present or future lack of validity, binding effect or enforceability of this Agreement, any other Loan Document or any other document or instrument evidencing, seeming or otherwise relating to the Obligations; (ii) from Lender's impairment of any Collateral, including the failure to record or perfect the Lender's interest in any Collateral; or (iii) by reason of any claim or defense based upon an election of remedies by Lender in the event such election may, in any manner, impair, affect, reduce, release, destroy or extinguish any tight of contribution or reimbursement of any Borrower or any other tights of any Borrower to proceed against any other Borrower, Guarantor or any other Person or any Collateral.

[SIGNATURES ON THE FOLLOWING PAGE]

------

WITNESS the due execution hereof as a document under seal, as of the date first written above.

**CAPE GENERATION STATION 1 LLC**

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| | |
|:---|:---|
| By: | /s/ Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President |

---

**CAPE GENERATION STATION 3 LLC**

---

| | |
|:---|:---|
| By: | /s/&nbsp;&nbsp;&nbsp;&nbsp;Timothy Latimer |
| Name: Timothy Latimer | Name: Timothy Latimer |
| Title: President | Title: President |

---

(signatures continue on next page)

SIGNATURE PAGE TO LOAN AGREEMENT (FERVO)

------

**<u>LENDER:</u>**

**XRL ALC, LLC**

---

| | | |
|:---|:---|:---|
| By: | /s/ Jordan Blanchard | (SEAL) |
| Name: Jordan Blanchard | Name: Jordan Blanchard |  |
| Title: Executive Manager | Title: Executive Manager |  |

---

SIGNATURE PAGE TO LOAN AGREEMENT (FERVO)

------

**<u>SCHEDULE 1</u>**

[\*\*\*]

------

**<u>SCHEDULE 2</u>**

[\*\*\*]

------

**<u>SCHEDULE 3</u>**

[\*\*\*]

------

**<u>SCHEDULE 3.01</u>**

[\*\*\*]

------

**<u>SCHEDULE 3.07</u>**

[\*\*\*]

------

**<u>SCHEDULE 3.12(B)</u>**

[\*\*\*]

------

**<u>SCHEDULE 3.17</u>**

[\*\*\*]

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**<u>SCHEDULE 5.07</u>**

[\*\*\*]

------

**<u>EXHIBIT A</u>**

[\*\*\*]

------

**<u>EXHIBIT B</u>**

[\*\*\*]

------

**<u>EXHIBIT C-1</u>**

[\*\*\*]

------

**<u>EXHIBIT C-2</u>**

[\*\*\*]

------

**<u>EXHIBIT D</u>**

[\*\*\*]

------

**<u>EXHIBIT E</u>**

[\*\*\*]

------

**<u>EXHIBIT F</u>**

[\*\*\*]

## Exhibit 10.16

**Exhibit 10.16**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**Execution Version**

CREDIT AGREEMENT

dated as of March 6, 2026

by and among

CAPE PHASE 1 BORROWER LLC,

as the Cape Phase 1 Borrower,

PHASE 1 WELLCO, LLC,

as the WellCo Borrower

THE LENDERS FROM TIME TO TIME PARTY HERETO,

THE LC ISSUERS FROM TIME TO TIME PARTY HERETO,

and

MUFG BANK, LTD.,

as Administrative Agent

and

HSBC BANK USA, NATIONAL ASSOCIATION,

as Collateral Agent

BANCO BILBAO VIZCAYA ARGENTARIA, S.A., NEW YORK BRANCH, BARCLAYS

BANK PLC, HSBC BANK USA, NATIONAL ASSOCIATION, MUFG BANK, LTD.,

ROYAL BANK OF CANADA, AND SOCIÉTÉ GÉNÉRALE

as Coordinating Lead Arrangers

and

BANCO BILBAO VIZCAYA ARGENTARIA, S.A.,

as a Hedging Coordinator

------

**<u>**TABLE OF CONTENTS**</u>**

---

| | | |
|:---|:---|:---|
| **<u>Page</u>** | **<u>Page</u>** | **<u>Page</u>** |
| ARTICLE I DEFINITIONS AND ACCOUNTING TERMS | ARTICLE I DEFINITIONS AND ACCOUNTING TERMS | 8 |
| SECTION 1.1 | Defined Terms | 8 |
| SECTION 1.2 | Use of Defined Terms | 70 |
| SECTION 1.3 | Cross-References | 70 |
| SECTION 1.4 | Accounting and Financial Determinations; Time | 70 |
| SECTION 1.5 | Use of Certain Terms | 71 |
| SECTION 1.6 | Divisions | 72 |
| SECTION 1.7 | Rates | 72 |
| ARTICLE II COMMITMENTS, BORROWING AND ISSUANCE PROCEDURES, NOTES AND LETTERS OF CREDIT | ARTICLE II COMMITMENTS, BORROWING AND ISSUANCE PROCEDURES, NOTES AND LETTERS OF CREDIT | 73 |
| SECTION 2.1 | Commitments | 73 |
| SECTION 2.2 | Reduction of the Commitment Amounts | 78 |
| SECTION 2.3 | Borrowing Procedures; Funding Reliance | 80 |
| SECTION 2.4 | Continuation and Conversion Elections | 83 |
| SECTION 2.5 | Funding | 83 |
| SECTION 2.6 | Letters of Credit Issuance Procedures | 83 |
| SECTION 2.7 | Register; Notes | 89 |
| ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES | ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES | 91 |
| SECTION 3.1 | Repayments and Prepayments; Application | 91 |
| SECTION 3.2 | Interest Provisions | 96 |
| SECTION 3.3 | Fees | 97 |
| ARTICLE IV CERTAIN SOFR AND OTHER PROVISIONS | ARTICLE IV CERTAIN SOFR AND OTHER PROVISIONS | 99 |
| SECTION 4.1 | Inability to Determine Rates; SOFR Lending Unlawful | 99 |
| SECTION 4.2 | Benchmark Replacement Setting | 100 |
| SECTION 4.3 | Increased Costs, etc | 102 |
| SECTION 4.4 | Funding Losses | 103 |
| SECTION 4.5 | Increased Capital Costs | 104 |
| SECTION 4.6 | Taxes | 105 |
| SECTION 4.7 | Payments, Computations, etc | 109 |
| SECTION 4.8 | Sharing of Payments | 110 |
| SECTION 4.9 | Setoff | 111 |
| SECTION 4.10 | Central Lending Office | 111 |
| SECTION 4.11 | Replacement of Lenders | 112 |
| SECTION 4.12 | Defaulting Lenders | 113 |
| ARTICLE V CONDITIONS PRECEDENT | ARTICLE V CONDITIONS PRECEDENT | 117 |

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*Project Granite – Credit Agreement*

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| | | |
|:---|:---|:---|
| SECTION 5.1 | Closing Date | 117 |
| SECTION 5.2 | Term Conversion | 122 |
| SECTION 5.3 | Conditions Precedent to All Credit Extensions | 127 |
| SECTION 5.4 | Determinations Under Article V | 136 |
| ARTICLE VI REPRESENTATIONS AND WARRANTIES | ARTICLE VI REPRESENTATIONS AND WARRANTIES | 136 |
| SECTION 6.1 | Organization, etc | 136 |
| SECTION 6.2 | Due Execution, Delivery and Authorization, Non-Contravention, etc | 136 |
| SECTION 6.3 | Government Approval, Regulation, etc | 137 |
| SECTION 6.4 | Validity, etc | 137 |
| SECTION 6.5 | Transfer Agreements | 137 |
| SECTION 6.6 | No Material Adverse Effect | 138 |
| SECTION 6.7 | Litigation | 138 |
| SECTION 6.8 | Subsidiaries | 138 |
| SECTION 6.9 | Ownership of Properties | 138 |
| SECTION 6.10 | Intellectual Property | 139 |
| SECTION 6.11 | Taxes; Other Laws | 140 |
| SECTION 6.12 | Pension and Welfare Plans | 140 |
| SECTION 6.13 | Environmental Warranties | 140 |
| SECTION 6.14 | Financial Statements; Accuracy of Information; Projections | 141 |
| SECTION 6.15 | Regulations T, U and X; Investment Company Act | 142 |
| SECTION 6.16 | Energy Regulatory Matters | 143 |
| SECTION 6.17 | Solvency | 144 |
| SECTION 6.18 | Deposit Account and Security Accounts | 144 |
| SECTION 6.19 | Labor Matters | 144 |
| SECTION 6.20 | Easements; Utilities; Services | 144 |
| SECTION 6.21 | Insurance | 144 |
| SECTION 6.22 | Permits | 145 |
| SECTION 6.23 | Security Interests and Liens | 145 |
| SECTION 6.24 | Sanctions; Anti-Corruption Anti-Money Laundering; International Trade Compliance | 146 |
| SECTION 6.25 | Certain Fees | 146 |
| SECTION 6.26 | Material Project Documents | 147 |
| SECTION 6.27 | Tax Credit Matters | 147 |
| SECTION 6.28 | No Default | 148 |
| SECTION 6.29 | Section 49 of the Code | 148 |
| SECTION 6.30 | Non-ECP Guarantor | 148 |
| SECTION 6.31 | Equator Principles and ESG Action Plan | 148 |
| SECTION 6.32 | Green Loan Principles | 148 |
| ARTICLE VII AFFIRMATIVE COVENANTS | ARTICLE VII AFFIRMATIVE COVENANTS | 149 |
| SECTION 7.1 | Financial Information, Reports, Notices, etc | 149 |
| SECTION 7.2 | Maintenance of Existence; Compliance with Contracts, Laws, etc | 155 |

---

 2 *Project Granite – Credit Agreement*

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| | | |
|:---|:---|:---|
| SECTION 7.3 | Operation of Properties in Accordance with Industry Practices | 155 |
| SECTION 7.4 | Maintenance | 156 |
| SECTION 7.5 | Maintenance of Insurance | 156 |
| SECTION 7.6 | Books and Records; Inspection | 156 |
| SECTION 7.7 | Environmental Laws | 156 |
| SECTION 7.8 | Use of Proceeds | 157 |
| SECTION 7.9 | Security and Further Assurance, etc | 157 |
| SECTION 7.10 | Maintenance of Corporate Separateness | 158 |
| SECTION 7.11 | Cash Management | 158 |
| SECTION 7.12 | Accounts | 158 |
| SECTION 7.13 | Secured Interest Rate Hedge Agreements | 158 |
| SECTION 7.14 | Performance of Material Project Documents | 159 |
| SECTION 7.15 | Maintenance of EWG Status and Other Energy Regulatory Matters | 159 |
| SECTION 7.16 | Additional Project Documents | 160 |
| SECTION 7.17 | As Built Survey | 160 |
| SECTION 7.18 | Performance Tests | 160 |
| SECTION 7.19 | Taxes | 161 |
| SECTION 7.20 | Subordination Agreements | 161 |
| SECTION 7.21 | Green Loan Principles | 161 |
| SECTION 7.22 | Post-Closing Covenants | 162 |
| SECTION 7.23 | Water Leases | 162 |
| ARTICLE VIII NEGATIVE COVENANTS | ARTICLE VIII NEGATIVE COVENANTS | 162 |
| SECTION 8.1 | Business Activities | 163 |
| SECTION 8.2 | Indebtedness | 163 |
| SECTION 8.3 | Liens | 164 |
| SECTION 8.4 | Investments | 167 |
| SECTION 8.5 | Restricted Payments, etc | 167 |
| SECTION 8.6 | Capital Expenditures | 168 |
| SECTION 8.7 | Issuance of Capital Securities | 169 |
| SECTION 8.8 | Consolidation, Merger; etc | 169 |
| SECTION 8.9 | Permitted Dispositions | 169 |
| SECTION 8.10 | Modification of Certain Agreements | 170 |
| SECTION 8.11 | Transactions with Affiliates | 172 |
| SECTION 8.12 | Restrictive Agreements, etc | 172 |
| SECTION 8.13 | Accounting Changes; Name and Location; Fiscal Year | 173 |
| SECTION 8.14 | [Reserved] | 173 |
| SECTION 8.15 | Subsidiaries | 173 |
| SECTION 8.16 | Partnerships, etc | 173 |
| SECTION 8.17 | Speculative Transactions | 173 |
| SECTION 8.18 | Accounts; Depositary Agreement | 174 |
| SECTION 8.19 | Sales and Lease-Backs | 174 |
| SECTION 8.20 | Restrictions on Subsidiary Distributions | 174 |
| SECTION 8.21 | Sanctions; Anti-Corruption; Use of Proceeds | 174 |
| SECTION 8.22 | Construction Budget; Construction Schedule | 174 |

---

 3 *Project Granite – Credit Agreement*

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---

| | | |
|:---|:---|:---|
| SECTION 8.23 | ITCs and PTCs | 175 |
| SECTION 8.24 | Regulations | 176 |
| SECTION 8.25 | Tax Status | 176 |
| ARTICLE IX EVENTS OF DEFAULT | ARTICLE IX EVENTS OF DEFAULT | 176 |
| SECTION 9.1 | Listing of Events of Default | 176 |
| SECTION 9.2 | Action if Bankruptcy | 181 |
| SECTION 9.3 | Action if Other Event of Default | 182 |
| ARTICLE X THE AGENTS | ARTICLE X THE AGENTS | 182 |
| SECTION 10.1 | Actions, Appointment; Powers and Duties | 182 |
| SECTION 10.2 | Exculpation; Notice of Default | 185 |
| SECTION 10.3 | Successor | 186 |
| SECTION 10.4 | Credit Extensions by the Administrative Agent and Each LC Issuer | 187 |
| SECTION 10.5 | Credit Decisions | 188 |
| SECTION 10.6 | Copies, etc | 188 |
| SECTION 10.7 | Reliance by the Administrative Agent and the LC Issuers | 188 |
| SECTION 10.8 | The Administrative Agent and the LC Issuers | 189 |
| SECTION 10.9 | Appointment of Sub-Agent; etc | 189 |
| SECTION 10.10 | Other Agents | 191 |
| SECTION 10.11 | Collateral Agent | 191 |
| SECTION 10.12 | Posting of Approved Electronic Communications; Non-Public Information | 192 |
| SECTION 10.13 | Withholding Tax | 193 |
| SECTION 10.14 | Administrative Agent May File Bankruptcy Disclosure and Proofs of Claim | 194 |
| SECTION 10.15 | Erroneous Payment | 195 |
| ARTICLE XI MISCELLANEOUS PROVISIONS | ARTICLE XI MISCELLANEOUS PROVISIONS | 198 |
| SECTION 11.1 | Waivers, Amendments, etc | 198 |
| SECTION 11.2 | Notices; Time | 202 |
| SECTION 11.3 | Payment of Costs and Expenses | 202 |
| SECTION 11.4 | Indemnification | 203 |
| SECTION 11.5 | Survival | 205 |
| SECTION 11.6 | Severability | 205 |
| SECTION 11.7 | Headings | 205 |
| SECTION 11.8 | Execution in Counterparts, Effectiveness, etc | 205 |
| SECTION 11.9 | Governing Law; Entire Agreement | 206 |
| SECTION 11.10 | Successors and Assigns | 206 |
| SECTION 11.11 | Sale and Transfer of Credit Extensions; Participations in Credit Extensions; Notes | 206 |
| SECTION 11.12 | Other Transactions | 210 |
| SECTION 11.13 | Independence of Covenants and Default Provisions | 210 |

---

 4 *Project Granite – Credit Agreement*

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---

| | | |
|:---|:---|:---|
| SECTION 11.14 | Confidentiality | 210 |
| SECTION 11.15 | Forum Selection and Consent to Jurisdiction | 212 |
| SECTION 11.16 | Waiver of Jury Trial | 213 |
| SECTION 11.17 | Counsel Representation | 213 |
| SECTION 11.18 | PATRIOT Act | 214 |
| SECTION 11.19 | Scope of Liability | 214 |
| SECTION 11.20 | Obligations Several; Independent Nature of Lenders' Rights | 214 |
| SECTION 11.21 | No Fiduciary Obligation | 215 |
| SECTION 11.22 | Acknowledgment and Consent to Bail-In of Affected Financial Institutions | 215 |
| SECTION 11.23 | Collateral Agent and Depositary Bank | 216 |
| SECTION 11.24 | Acknowledgment Regarding Any Supported QFCs | 216 |
| SECTION 11.25 | Electronic Communications | 217 |
| SECTION 11.26 | Keepwell | 217 |
| SECTION 11.27 | Joint and Several Liability | 218 |
| SECTION 11.28 | Independent Consultants | 218 |
| SECTION 11.29 | Certain ERISA Matters | 219 |

---

SCHEDULES AND EXHIBITS

---

| | | |
|:---|:---|:---|
| SCHEDULE I | - | Disclosure Schedule |
| SCHEDULE II | - | Commitments |
| SCHEDULE IIA | - | Amortization Schedule |
| SCHEDULE III | - | Permits |
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PART A - Part A Permits |
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PART B - Part B Permits |
| SCHEDULE IV | - | Required Insurance |
| SCHEDULE V | - | Material Project Documents |
| SCHEDULE VI | - | Consent to Collateral Assignment |
| SCHEDULE VII | - | Title Endorsements |
| SCHEDULE VIII | - | Notice and Address Information |
| SCHEDULE IX | - | Performance Tests |
| SCHEDULE X | - | EDR Leases |

---

---

| | |
|:---|:---|
| EXHIBIT A-l | Form of Construction Loan Note / Term Loan Note |
| EXHIBIT A-2 | Form of TRABL Loan Note |
| EXHIBIT A-3 | Form of Material Construction Contract LC Note |
| EXHIBIT A-4 | Form of Shell PPA LC Note |
| EXHIBIT A-5 | Form of DSR LC Note |
| EXHIBIT A-6 | Form of SCE PPA LC Note |
| EXHIBIT B-l | Form of Borrowing Request |
| EXHIBIT B-2 | Form of Issuance Request |
| EXHIBIT B-3 | Form of Term Conversion Request |
| EXHIBIT C | Form of Continuation/Conversion Notice |
| EXHIBIT D | Form of Lender Assignment Agreement |
| EXHIBIT E | Form of Compliance Certificate |

---

 5 *Project Granite – Credit Agreement*

------

---

| | |
|:---|:---|
| EXHIBIT F | Form of Green Loan Report |
| EXHIBIT G | Form of Closing Date Certificate |
| EXHIBIT H | Major Maintenance Reserve Requirements |
| EXHIBIT I | Separateness Provisions |
| EXHIBIT J | Form of Solvency Certificate |
| EXHIBIT K-1 | Form of U.S. Tax Compliance Certificate (Non-U.S. Persons) |
| EXHIBIT K-2 | Form of U.S. Tax Compliance Certificate (Non-U.S. Participants) |
| EXHIBIT K-3 | Form of U.S. Tax Compliance Certificate (Foreign Participants) |
| EXHIBIT K-4 | Form of U.S. Tax Compliance Certificate (Non-U.S.<br>Participants/Partnerships) |
| EXHIBIT L | Form of Consent to Collateral Assignment |
| EXHIBIT M | Form of Construction Drawdown Certificate |
| EXHIBIT N | Form of Drawdown Certificate of Independent Engineer |
| EXHIBIT O-1 | Form of Construction Budget |
| EXHIBIT O-2 | Form of Operating Budget |
| EXHIBIT P | Form of Construction Schedule |
| EXHIBIT Q-1 | Form of Conversion Date Certificate |
| EXHIBIT Q-2 | Form of Conversion Date Certificate of Independent Engineer |
| EXHIBIT Q-3 | Drilling and Completion Testing Program |
| EXHIBIT R | Form of Construction Report |
| EXHIBIT S | Form of Quarterly Operating Report |
| EXHIBIT T-1 | Form of DSR Letter of Credit |
| EXHIBIT T-2 | Forms of Material Construction Contract Letters of Credit |
| EXHIBIT T-3 | Form of Shell PPA Letter of Credit |
| EXHIBIT T-4 | Form of SCE PPA Letter of Credit |
| EXHIBIT U | Form of XRC Payoff Letter |
| EXHIBIT V-1 | Form of Guarantee and Collateral Agreement |
| EXHIBIT V-2 | Form of Cape Phase I Pledgor Pledge and Security Agreement |
| EXHIBIT V-3 | Form of WellCo Pledgor Pledge Agreement |
| EXHIBIT W | [Reserved] |
| EXHIBIT X-1 | Form of Mortgage (CGS 3) |
| EXHIBIT X-2 | Form of Mortgage (CGS 5) |
| EXHIBIT X-3 | Form of Mortgage (WellCo Borrower) |
| EXHIBIT Y-1 | Form of White & Case LLP Opinion |
| EXHIBIT Y-2 | Form of Sheppard, Mullin, Richter & Hampton LLP Opinions |
| EXHIBIT Y-3 | Form of Parr Brown Gee & Loveless LLP Opinions |
| EXHIBIT Z-1 | Form of Subordination Agreement (Equipment Supplier) |
| EXHIBIT Z-2 | Form of Subordination Agreement (Contractor) |
| EXHIBIT AA-1 | Form of Confirmatory Sublease (WellCo) |
| EXHIBIT AA-2 | Form of Confirmatory Sublease (CGS 3) |
| EXHIBIT AA-3 | Form of Confirmatory Sublease (CGS 5) |
| EXHIBIT BB-1 | Form of GSSA Amendment (CGS 3) |
| EXHIBIT BB-2 | Form of GSSA Amendment (CGS 5) |
| EXHIBIT CC | Form of UODA Amendment |
| EXHIBIT DD | Form of Assignment Amendment |

---

 6 *Project Granite – Credit Agreement*

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**<u>CREDIT AGREEMENT</u>**

This CREDIT AGREEMENT, dated as of March 6, 2026, is made by and among CAPE PHASE 1 BORROWER LLC, a Delaware limited liability company ("<u>Cape Phase 1 Borrower</u>"), PHASE 1 WELLCO, LLC, a Delaware limited liability company ("<u>WellCo Borrower</u>" and, collectively with Cape Phase 1 Borrower, the "<u>Borrowers</u>" and each a "<u>Borrower</u>"), the LENDERS FROM TIME TO TIME PARTY HERETO (the "<u>Lenders</u>"), THE MATERIAL CONSTRUCTION CONTRACT LC ISSUERS FROM TIME TO TIME PARTY HERETO, THE SHELL PPA LC ISSUERS FROM TIME TO TIME PARTY HERETO, THE SCE PPA LC ISSUERS FROM TIME TO TIME PARTY HERETO, THE DSR LC ISSUERS FROM TIME TO TIME PARTY HERETO, MUFG BANK, LTD., as administrative agent (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>Administrative</u> <u>Agent</u>") and as green loan coordinator (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>Green Loan Coordinator</u>"), HSBC BANK USA, NATIONAL ASSOCIATION, as collateral agent (in such capacity, together with its successors and permitted assigns in such capacity, the "<u>Collateral Agent</u>"), BANCO BILBAO VIZCAYA ARGENTARIA, S.A., NEW YORK BRANCH, BARCLAYS BANK PLC, HSBC BANK USA, NATIONAL ASSOCIATION, MUFG BANK, LTD., ROYAL BANK OF CANADA, AND SOCIÉTÉ GÉNÉRALE, as coordinating lead arrangers (each, a "<u>Coordinating Lead Arranger</u>" and collectively, the "<u>Coordinating Lead Arrangers</u>") and BANCO BILBAO VIZCAYA ARGENTARIA, S.A., as a Hedging Coordinator.

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, as of the date hereof, (i) Cape Phase I Pledgor owns one hundred percent (100%) of the membership interests in Cape Phase 1 Borrower; (ii) WellCo Pledgor owns one hundred percent (100%) of the membership interests in WellCo Borrower; and (iii) Cape Phase 1 Borrower owns one hundred percent (100%) of the membership interests in each Project Company.

WHEREAS, the Borrowers wish to finance the Development of the Project;

WHEREAS, each Borrower has requested that the Lenders and LC Issuers extend, and the Lenders and LC Issuers have agreed to extend, on the terms and conditions set forth in this Agreement and the other Loan Documents, certain credit facilities to the Borrowers in an aggregate amount up to $421,419,488.65, consisting of (a) a construction loan facility in an aggregate principal amount up to $308,676,861.46, (b) an ITC Transfer bridge loan facility in an aggregate principal amount up to $61,489,673.73, (c) letter of credit facilities in an aggregate principal amount up to $51,252,953.46, and (d) a term loan facility to repay the Construction Loans (as defined below) (together with all fees, interest, and other Obligations accrued with respect thereto), subject to the limitations set forth herein; and

WHEREAS, the Lenders and LC Issuers are willing to extend the credit described above on the terms and subject to the conditions set forth herein.

 7 *Project Granite – Credit Agreement*

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NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, the parties hereto agree as follows:

**ARTICLE I**

**<u>DEFINITIONS AND ACCOUNTING TERMS</u>**

SECTION 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. The following terms (whether or not underscored) when used in this Agreement, including its preamble and recitals, shall, except where the context otherwise requires, have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof):

"<u>Acceptable Bank</u>" means any commercial bank or financial institution having the following ratings of its long-term indebtedness from at least two of the following rating agencies: (i) "A-" or higher from S&P, (ii) "A3" or higher from Moody's or (iii) "A-" or higher by Fitch.

"<u>Account</u>" is defined in the Depositary Agreement.

"<u>AD/CVD</u>" means any antidumping or countervailing duties or related cash deposits, bonds, or collateral imposed by the United States Department of Commerce and payable by a Loan Party on imports into the United States of material equipment or any other imported items to be utilized for the Project.

"<u>Additional Drilling Contracts</u>" means any contract entered into by, or assigned to, a Loan Party after the Closing Date, for the provision of well drilling, fracking and completion works and related services or the provision of goods, equipment or services in connection therewith.

"<u>Additional Project Document</u>" means each Project Document entered into by, or assigned to, a Loan Party subsequent to the Closing Date, solely in each case (a) that is an ITC Transfer Agreement or a PTC Transfer Agreement or (b) pursuant to which such Loan Party could reasonably be expected to have payment obligations in excess of $500,000 individually or $1,000,000 in the aggregate in any Fiscal Year, but excluding any agreement, document and instrument (i) providing for, governing or evidencing any Permitted Indebtedness and any related Permitted Lien for such Permitted Indebtedness, (ii) entered into to consummate any (x) sale, lease, transfer or disposal allowed under<u>[Section 8.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) (y) Investments permitted under Section 8.4, (iii) that is an Additional Drilling Contract reasonably expected to have total payment obligations not exceeding $2,000,000, which payment obligations are not reflected in the then current Operating Budget; or (iv) contracts for the transfer of wellbore interests to any Loan Party to the extent substantially in the form of any wellbore assignments entered into by the WellCo Borrower prior to the Closing Date.

"<u>Adjusted Base Rate</u>" means, for any day, a rate per annum equal to the greatest of (a) the Base Rate in effect on such day, (b) the Federal Funds Rate in effect on such day *plus* ½ of 1%, and (c) Daily Compounded SOFR in effect on such day <u>plus</u> 1.00%. Any change in the Adjusted Base Rate due to a change in the Base Rate, the Daily Compounded SOFR or the Federal Funds Rate shall be effective from and including the effective date of such change in the Base Rate, Daily Compounded SOFR or the Federal Funds Rate, respectively; <u>provided</u>,

 8 *Project Granite – Credit Agreement*

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<u>however</u>, that if the rate *per annum* obtained shall be less than 1.00%, the "Adjusted Base Rate" shall be deemed to be 1.00% *per annum* for purposes of this Agreement.

"<u>Administrative Agent</u>" is defined in the <u>preamble</u> and includes each other Person appointed as the successor Administrative Agent pursuant to Section 10.3.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Affected Lender</u>" is defined in Section 4.11.

"<u>Affiliate</u>" of any Person means any other Person which, directly or indirectly, Controls, is Controlled by or is under common Control with such Person.

"<u>Agents</u>" means, collectively, the Administrative Agent, the Collateral Agent and, solely for purposes of Article X, Section 4.6(d), Section 4.6(g), Section 4.7, Section 11.1 and <u>Section</u> 11.4 hereof and the definitions of "Secured Parties," "Other Connection Taxes" and "Excluded Taxes", the Depositary Bank.

"<u>Agreement</u>" means, on any date, this credit agreement, as the same may be amended, supplemented, amended and restated or otherwise modified from time to time.

"<u>Amortization Schedule</u>" means the amortization schedule as set forth in <u>Schedule IIA,</u> as such schedule may be amended from time to time pursuant to the terms hereof.

"<u>Anti-Corruption Laws</u>" means (a) the U.S. Foreign Corrupt Practices Act of 1977, as amended (15 U.S.C. §§ 78dd-1, et seq.); and (b) all other applicable laws, rules and regulations of any jurisdiction concerning the prevention or prohibition of bribery or corruption, including the UK Bribery Act 2010.

"<u>Anti-Money Laundering Laws</u>" means any U.S. law or regulation relating to the prevention or prohibition of terrorism financing or money laundering, including (a) Section 1 of Executive Order 13224 of September 24, 2001, Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (Title 12, Part 595 of the US Code of Federal Regulations), (b) the Terrorism Sanctions Regulations (Title 31 Part 595 of the US Code of Federal Regulations), (c) the Terrorism List Governments Sanctions Regulations (Title 31 Part 596 of the US Code of Federal Regulations), (d) the Foreign Terrorist Organizations Sanctions Regulations (Title 31 Part 597 of the US Code of Federal Regulations), (e) the USA Patriot Act of 2001 (Pub. L. No. 107-56), (f) the U.S. Money Laundering Control Act of 1986, as amended, (g) the Bank Secrecy Act, 31 U.S.C. sections 5301 et seq., (h) Laundering of Monetary Instruments, 18 U.S.C. section 1956, (i) Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, 18 U.S.C. section 1957, (j) the Financial Recordkeeping and Reporting of Currency and Foreign Transactions Regulations (Title 31 Part 103 of the US Code of Federal Regulations), and (k) any regulations promulgated under any of the foregoing.

"<u>Applicable Law</u>" means, collectively, as to any Person or the Project, any and all laws, ordinances, codes, rules or regulations, including any Governmental Rule, and any determination

 9 *Project Granite – Credit Agreement*

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of any Governmental Authority, in each case applicable to or binding upon such Person, any of its properties or the Project, or to which such Person or any of its property or the Project is subject.

"<u>Applicable Margin</u>" means:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Loans | Period | Loans | Loans |
| | Loans | Period | Loans | Loans |
| | | | SOFR Loans | Base Rate Loans |
| (a) | Construction Loans, Material Construction Contract LC Loans, Shell PPA LC Loans and SCE PPA LC Loans | From the Closing Date to (but excluding) the applicable Stated Maturity Date. | 3.00% | 2.00% |
| (b) | TRABL Loans | From the Closing Date to (but excluding) the TRABL Maturity Date. | 2.375% | 1.375% |
| (c) | Shell PPA LC Loans, SCE PPA LC Loans, DSR LC Loans and Term Loans | From the Conversion Date to (but excluding) the third anniversary of the Closing Date. | 3.00% | 2.00% |
| (d) | Shell PPA LC Loans, SCE PPA LC Loans, DSR LC Loans and Term Loans | From the third anniversary of the Closing Date to (but excluding) the fourth anniversary of the Closing Date. | 3.125% | 2.125% |
| (e) | Shell PPA LC Loans, SCE PPA LC Loans, DSR LC Loans and Term Loans | From the fourth anniversary of the Closing Date until the applicable Stated Maturity Date. | 3.25% | 2.25% |

---

"<u>Application to Appropriate</u>" means that certain Application to Appropriate identified as Water Right No. 71-5995 (A84679) submitted by EDR and FEC E&P Management, LLC to the Utah State Engineer on May 21, 2025.

"<u>Approved Fund</u>" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"<u>Assignment Amendment</u>" means that certain First Amendment and Partial Release of Assignment and Transfer of Tangible Personal Property, dated effective as of October 3, 2025, by and between EDR and WellCo Borrower, in the form of <u>Exhibit DD</u>.

"<u>Audit Tail Insurance Expenses</u>" is defined in the Depositary Agreement.

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"<u>Audit Tail Insurance Reserve Account</u>" is defined in the Depositary Agreement.

"<u>Authorized Financial Officer</u>" means, relative to any Obligor, an Authorized Officer that is the Chief Executive Officer, Chief Financial Officer or other individual officer with equivalent responsibilities to any of the foregoing, as the case may be, of such Obligor or such Obligor's general partner, manager or managing member (as applicable).

"<u>Authorized Officer</u>" means, relative to any Obligor, those of its authorized signatories, officers, general partners, managers or managing members (as applicable) whose signatures and incumbency shall have been certified to the Administrative Agent pursuant to <u>Section 5.1.2(b)(ii)</u> or pursuant to a certificate delivered to the Administrative Agent and the Lenders after the Closing Date in form and substance reasonably satisfactory to the Administrative Agent. For the avoidance of doubt, each authorized signatory or officer of the general partner, manager or managing member (as applicable) of any Obligor, in each case, whose signatures and incumbency shall have been certified pursuant to the foregoing sentence, shall be deemed to be an "Authorized Officer."

"<u>Available Construction Funds</u>" means, at any time, the sum of (a) the aggregate of the Available Construction Loan Commitment and the Available TRABL Commitment, *plus* (b) any amounts on deposit at such time in the Construction Account that are available for payment of Total Project Costs, *plus* (c) any Revenues received by the Loan Parties and deposited in the Construction Account prior to the Conversion Date.

"<u>Available Material Construction Contract LC Loan Commitment</u>" means (i) as of the Closing Date and from time to time prior to the Material Construction Contract LC Loan Commitment Termination Date, the Material Construction Contract LC Issuing Commitment Amount *minus* the aggregate Material Construction Contract LC Outstandings, and (ii) at any time after the Material Construction Contract LC Loan Commitment Termination Date, zero.

"<u>Available Construction Loan Commitment</u>" means (a) at any time on or prior to the Construction Loan Maturity Date, the Construction Loan Commitment Amount at such time *minus* the aggregate Construction Loans outstanding at such time and (b) at any time after the Construction Loan Commitment Termination Date, zero.

"<u>Available DSR LC Loan Commitment</u>" means (i) as of the Closing Date and prior to the DSR LC Loan Commitment Termination Date, the DSR LC Issuing Commitment Amount *minus* the aggregate DSR LC Outstandings, and (ii) at any time after the applicable DSR LC Commitment Termination Date, zero.

"<u>Available LC Loan Commitment</u>" means the Available DSR LC Loan Commitment, the Available Material Construction Contract LC Loan Commitment, the Available SCE PPA LC Loan Commitment or the Available Shell PPA LC Loan Commitment, as applicable.

"<u>Available SCE PPA LC Loan Commitment</u>" means (i) as of the Closing Date and prior to the SCE PPA LC Loan Commitment Termination Date, the SCE PPA LC Issuing Commitment Amount *minus* the aggregate SCE PPA LC Outstandings, and (ii) at any time after the SCE PPA LC Loan Commitment Termination Date, zero.

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"<u>Available Shell PPA LC Loan Commitment</u>" means (i) as of the Closing Date and prior to the Shell PPA LC Loan Commitment Termination Date, the Shell PPA LC Issuing Commitment Amount *minus* the aggregate Shell PPA LC Outstandings, and (ii) at any time after the Shell PPA LC Loan Commitment Termination Date, zero.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to Section 4.2(d).

"<u>Available Term Loan Capacity</u>" is defined in the definition of "CTL Debt Sizing Criteria."

"<u>Available TRABL Loan Commitment</u>" means (a) at any time on or prior to the TRABL Commitment Termination Date, the TRABL Commitment Amount at such time *minus* the aggregate TRABL Loans outstanding at such time and (b) at any time after the TRABL Commitment Termination Date, zero.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>Bankruptcy Code</u>" means Title 11 of the United States Code entitled "Bankruptcy," as now and hereafter in effect, or any successor statute.

"<u>Base Rate</u>" means, at any time, the rate of interest last quoted by The Wall Street Journal as the "Prime Rate" in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15(519) (Selected Interest Rates) as the "bank prime loan" rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by Administrative Agent).

"<u>Base Rate Loan</u>" means a Loan bearing interest at a fluctuating rate determined by reference to the Adjusted Base Rate.

"<u>Bearskin Crossflow Test Results Review</u>" means the Bearskin Crossflow Test Results Review report, dated as of October 23, 2025, as prepared by the Subsurface Consultant.

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"<u>Benchmark</u>" means, initially, Daily Compounded SOFR; <u>provided</u> that if a Benchmark Transition Event has occurred with respect to Daily Compounded SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to<u>[Section 4.2(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Benchmark Replacement</u>" means with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrowers giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment; <u>provided</u> that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrowers giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (a) or (b) of the definition of "Benchmark Transition Event", the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (c) of the definition of "Benchmark Transition Event", the first date on which all Available Tenors of such Benchmark (or the published component used in the calculation thereof) has been or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) have been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; <u>provided</u> that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

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For the avoidance of doubt, if such Benchmark is a term rate, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;a public statement or publication of information by of the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, if such Benchmark is a term rate, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Start Date</u>" means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the

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ninetieth (90<sup>th</sup>) day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than ninety (90) days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>" means, the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with<u>[Section 4.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with<u>[Section 4.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

"<u>Board</u>" means the Board of Governors of the Federal Reserve System of the United States.

"<u>Borrowers</u>" is defined in the <u>preamble</u>.

"<u>Borrower Materials</u>" is defined in <u>Section 10.12(e)</u>.

"<u>Borrower Model</u>" means the financial model with the file name "3.1.6 Project Heat - Lender Financial Model 02.19.2026", dated as of February 19, 2026, delivered to the Administrative Agent on or prior to the Closing Date pursuant to<u>[Section 5.1.7(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and as may be updated from time to time pursuant to<u>[Section 3.1.4(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 5.2.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) or<u>[Section 5.3.1(f)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Borrower Notice</u>" is defined in <u>Section 5.1.31(a)</u>.

"<u>Borrowing</u>" means Loans of the same Type made by the Lenders on the same Business Day and pursuant to the same Borrowing Request in accordance with <u>Section 2.3</u>.

"<u>Borrowing Request</u>" means a Loan request and certificate duly executed and delivered by an Authorized Officer of the applicable Borrower substantially in the form of <u>Exhibit B-1</u>.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

"<u>Cape Phase 1 Borrower</u>" is defined in the <u>preamble</u>.

"<u>Cape Phase I Pledgor</u>" means Cape Phase I HoldCo LLC, a Delaware limited liability company.

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"<u>Cape Phase I Pledgor Pledge and Security Agreement</u>" means the Pledge and Security Agreement, dated as of the date of the second Credit Extension, between Cape Phase I Pledgor and the Collateral Agent, substantially in the form of <u>Exhibit V-2</u>.

"<u>Capital Expenditures</u>" means, for any period, the sum of (a) the aggregate amount of all expenditures of the Loan Parties payable during such period which, in accordance with GAAP, would be classified as capital expenditures, and (b) the aggregate amount of the principal component of all capitalized lease liabilities payable during such period by the Loan Parties; <u>provided</u> that Capital Expenditures shall not include (i) any such expenditures or principal component funded with (A) any Net Casualty Proceeds, as permitted under the Depositary Agreement, (B) the net proceeds received from any Disposition of used, worn out, surplus or obsolete equipment permitted under<u>[Section 8.9(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) (C) the proceeds of capital contributions made substantially concurrently with and for purposes of such expenditures, or (D) expenses under the Long-Term Service Agreement or other long-term service agreements or spare parts agreements, (ii) expenditures made in connection with the replacement, substitution, restoration or repair of property to the extent financed with insurance proceeds or other cash paid to the Obligors on account of the Casualty Event, Title Event or Event of Loss in respect of the property being replaced, restored or repaired in accordance with the terms of the Loan Documents, (iii) Maintenance and Drilling Expenses, (iv) Operation and Maintenance Expenses, or (v) Audit Tail Insurance Expenses.

"<u>Capital Securities</u>" means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation), including, without limitation, any limited or general partnership interests and any limited liability company membership interests, and any and all warrants, rights or options to purchase any of the foregoing, whether now outstanding or issued after the Closing Date.

"<u>Cash</u>" means money, currency or a credit balance in any demand account or deposit account (as such term is defined in the UCC).

"<u>Cash Collateralize</u>" means with respect to any Letter of Credit or any other Obligation, to pledge and deposit of immediately available funds into a cash collateral account (any such account, an "<u>LC Cash Collateral Account</u>") maintained with (or on behalf of) the Administrative Agent (for the benefit of the applicable LC Issuers) on terms reasonably satisfactory to such LC Issuer in an amount equal to one hundred and two percent (102%) of the Stated Amount of such Letter of Credit or such other Obligation. "<u>Cash Collateral</u>" and "<u>Cash Collateralization</u>" shall have correlative meanings.

"<u>Cash Debt Service</u>" is defined in the Depositary Agreement.

"<u>Cash Equivalent Investment</u>" means, at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any marketable direct obligation of (or unconditionally guaranteed by) the United States (or any agency or political subdivision thereof, to the extent such obligations are supported by the full faith and credit of the United States) maturing not more than one year from the date of acquisition thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;commercial paper maturing not more than 365 days from the date of creation thereof and currently having the highest rating obtainable from either S&P or Moody's (or, if at any time either S&P or Moody's are not rating such fund, an equivalent Credit Rating from another Rating Agency);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any certificate of deposit, time deposit, or bankers' acceptance, maturing not more than one year after its date of acquisition, or any demand deposit account which, in any case, is issued by or established at any bank or trust company organized under the laws of the United States (or any state thereof) and which has (i) a long-term debt credit rating of A2 or higher from Moody's or A or higher from S&P and (ii) a combined capital and surplus greater than $500,000,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;money market funds that (i) comply with the criteria set forth in Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated A or higher by S&P and A2 or higher by Moody's and (iii) have portfolio assets of at least $5,000,000,000.

"<u>Cash Flow Available for Debt Service</u>" means, for any period, (a) (i) all revenue generated under the Power Purchase Agreements during such period, (ii) all proceeds from sales of PTCs deposited into the Revenue Account during such period and (iii) all other revenues deposited into the Revenue Account during such period, *plus* (b) the amount released from the Major Maintenance Reserve Account in excess of the then-applicable Required Major Maintenance Reserve Amount during such period, *plus* (c) delay liquidated damages, delay in start-up and business interruption insurance proceeds, *plus* (d) all interest standing on balance of the Accounts, *plus* (e) any proceeds of Investments permitted pursuant to <u>Section 8.4</u> or the Depositary Agreement, *plus* (f) the amount released from the Audit Tail Insurance Reserve Account in excess of the then-applicable Required Audit Tail Insurance Reserve Amount during such period, *minus* (g) (i) Operation and Maintenance Expenses paid by a Borrower during such period and (ii) Capital Expenditures paid during such period from (without duplication) the Revenue Account or the Operating Account, *minus* (h) (i) the amount required to fund the Major Maintenance Reserve Account with the then-applicable Required Major Maintenance Reserve Amount during such period and (ii) the amount required to fund the Audit Tail Insurance Reserve Account with the then-applicable Required Audit Tail Insurance Reserve Amount during such period.

"<u>Casualty Event</u>" means the damage, destruction or condemnation, as the case may be, of any property of any Loan Party, but in any event shall exclude any losses due to business interruption and any Title Event or Event of Loss.

"<u>CERCLA</u>" means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended.

"<u>CGS 3</u>" is defined in the definition of "Project Companies."

"<u>CGS 5</u>" is defined in the definition of "Project Companies."

"<u>Change in Control</u>" means the consummation of any transaction or series of related transactions, the result of which is that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;if occurring prior to the Conversion Date, the Sponsor fails to own or Control, directly or indirectly, with the exception of the "Class A" membership interests in each of Cape Phase I Pledgor and Intermediate HoldCo, the Capital Securities (including all Voting Securities) representing one hundred percent (100%) of the aggregate ordinary voting power and economic interest represented, in each case, by the issued and outstanding Capital Securities (including all Voting Securities) of the Loan Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;if occurring on or after the Conversion Date, the Sponsor fails to own or Control, directly or indirectly, with the exception of the "Class A" membership interests in each of Cape Phase I Pledgor and Intermediate HoldCo, the Capital Securities (including all Voting Securities) representing at least fifty-one percent (51%) of the aggregate ordinary voting power and economic interest represented, in each case, by the issued and outstanding Capital Securities (including all Voting Securities) of the Loan Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;Cape Phase I Pledgor fails to directly own or Control one hundred percent (100%) of the Capital Securities (including all Voting Securities) of the Cape Phase 1 Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;WellCo Pledgor fails to directly own or Control one hundred percent (100%) of the Capital Securities (including all Voting Securities) of WellCo Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;Cape Phase 1 Borrower fails to directly own or Control one hundred percent (100%) of the Capital Securities (including all Voting Securities) of each Subsidiary Guarantor.

"<u>Change in Law</u>" is defined in<u>[Section 4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Change in Tax Law</u>" (a) any change in or amendment to the Code or another applicable U.S. federal income tax statute, (b) any change in, or issuance of, or promulgation of any temporary or final Treasury Regulations, (c) any guidance from the IRS published or to be published in the Internal Revenue Bulletin or Cumulative Bulletin, or other IRS notice, announcement, revenue ruling, private letter ruling, revenue procedure, technical advice memorandum, examination directive or similar authority issued by the IRS, and any advice, advisory, or legal memorandum issued by IRS Chief Counsel that applies, advances or articulates a new or different interpretation or analysis of any provision of the Code, any other applicable federal tax statute, or any Treasury Regulations promulgated thereunder, or (d) any change in the interpretation of the Code or Treasury Regulations by any judicial decision by the U.S. Tax Court, a U.S. District Court, the U.S. Court of Federal Claims, a U.S. Court of Appeals or the U.S. Supreme Court, in each case, that applies, advances or articulates a new or different interpretation or analysis of U.S. federal income tax law, in each case with respect to clause (a) through (d) above which (i) has been enacted, promulgated or issued, as applicable, after the date hereof and (ii) would likely cause a material loss, disallowance, reduction or recapture of ITCs from the WellCo Facilities or PTCs from the GenCo Facilities or would prohibit, restrict, or limit the ability to sell ITCs from the WellCo Facilities or PTCs from the GenCo Facilities.

"<u>Closing Date</u>" means the date on which the Borrowers satisfy the conditions precedent set forth in<u>[Section 5.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(or such conditions precedent are waived in accordance herewith).

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"<u>Closing Date Certificate</u>" means the certificate, dated as of the Closing Date, duly executed and delivered by an Authorized Officer of the Borrowers substantially in the form of <u>Exhibit G</u>.

"<u>Closing Date Funds Flow Memorandum</u>" means the memorandum setting forth the flow of funds on the Closing Date, which shall be in form and substance acceptable to all Lenders.

"<u>Code</u>" means the Internal Revenue Code of 1986, and the regulations thereunder, in each case as amended.

"<u>Collateral</u>" means all properties and assets of the Obligors, now owned or hereafter acquired, in which Liens have been granted (or are purported to have been granted) to the Collateral Agent pursuant to the Security Documents to secure all the Obligations and shall exclude the ITCs generated by the WellCo Facilities (without any exclusion of the ITC Transfer Proceeds) and any properties and assets in which the Collateral Agent is required to release its Liens, pursuant to the terms of the Loan Documents.

"<u>Collateral Agent</u>" is defined in the preamble and includes each other Person appointed as the successor Collateral Agent.

"<u>Commercial Operation</u>" means the occurrence of each of (a) "Initial Delivery Date" (as defined in the SCE PPA), (b) "Commercial Operation Date" (as defined in the Shell PPA), and (c) "Commercial Operation Date" (as defined in the Interconnection Agreement, or equivalent term).

"<u>Commitment</u>" means, as the context may require, the Construction Loan Commitment, the Term Loan Commitment, the TRABL Commitment, the Material Construction Contract LC Issuing Commitment, the Material Construction Contract LC Loan Commitment, the Shell PPA LC Issuing Commitment, the Shell PPA LC Loan Commitment, the SCE PPA LC Issuing Commitment, the SCE PPA LC Loan Commitment, the DSR LC Issuing Commitment or the DSR LC Loan Commitment.

"<u>Commitment Amount</u>" means, as the context may require, the Construction Loan Commitment Amount, the Term Loan Commitment, the TRABL Commitment Amount, the Material Construction Contract LC Loan Commitment Amount, the Material Construction Contract LC Issuing Commitment Amount, the Shell PPA LC Loan Commitment Amount, the Shell PPA LC Issuing Commitment Amount, the SCE PPA LC Loan Commitment Amount, the SCE PPA LC Issuing Commitment Amount, the DSR LC Loan Commitment Amount or the DSR LC Issuing Commitment Amount.

"<u>Commitment Termination Date</u>" means, as the context may require, the Construction Loan Commitment Termination Date, the TRABL Commitment Termination Date, the Material Construction Contract LC Loan Commitment Termination Date, the Shell PPA LC Loan Commitment Termination Date, the SCE PPA LC Loan Commitment Termination Date or the DSR LC Loan Commitment Termination Date.

"<u>Commitment Termination Event</u>" means:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence of any Event of Default described in <u>Sections[9.1.9(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>through<u>[(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) with respect to any Loan Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the occurrence and continuance of any other Event of Default and either (i) the declaration of all or any portion of the Loans to be due and payable pursuant to <u>[Section 9.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) or (ii) the giving of notice by the Administrative Agent, acting at the direction of the Required Lenders, to the Borrowers that the Commitments have been terminated.

"<u>Communications</u>" is defined in <u>Section 10.12(a)</u>.

"<u>Compliance Certificate</u>" means a certificate duly completed and executed by an Authorized Financial Officer of the Borrowers, substantially in the form of <u>Exhibit E</u>.

"<u>Confirmatory Subleases</u>" means, collectively, (a) that certain Confirmatory Sublease (WellCo) dated as of February 6, 2026 and effective as of October 3, 2025, by and between EDR and WellCo Borrower, (b) that certain Confirmatory Sublease (CGS 3) dated as of February 2, 2026 and effective as of August 6, 2024, by and between EDR and CGS 3, and (c) that certain Confirmatory Sublease (CGS 5) dated as of February 2, 2026 and effective as of August 6, 2024, by and between EDR and CGS 5, in each case, in the form of <u>Exhibits AA-1</u> through <u>AA-3</u> respectively.

"<u>Confirmed Contributed Amounts</u>" means, with respect to each Project Company and the WellCo Borrower, without duplication, amounts contributed directly or indirectly to a Project Company or the WellCo Borrower by any Person who is not a Loan Party (and not previously reimbursed pursuant to this Agreement) for payments of, or amounts paid directly by or on behalf of such Project Company or the WellCo Borrower to another Person for, the applicable Total Project Costs or that are on deposit in the Construction Account to the extent not yet applied for such purpose, in respect of which, in the case of such amounts that have been applied to the payment of such Total Project Costs in excess of $100,000 individually, the Borrowers shall have delivered to the Administrative Agent substantiating materials reasonably satisfactory to the Administrative Agent (in consultation with the Independent Engineer) and a certificate of Borrowers setting forth such Confirmed Contributed Amounts, as verified in writing by the Independent Engineer.

"<u>Conforming Changes</u>" means, with respect to either the use or administration of Daily Compounded SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Adjusted Base Rate," the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition (or the addition of a concept of "interest period"), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of <u>Section 4.4</u> and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that

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adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Consent to Collateral Assignment</u>" means each consent and agreement to be executed with regard to certain Material Project Documents listed in <u>Schedule VI</u> and each Additional Project Document to the extent required pursuant to<u>[Section 7.16](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) among the counterparty to such specified Material Project Document, the Collateral Agent and the applicable Loan Party, which shall be substantially in the form of <u>Exhibit L</u>, any form agreed to by the Administrative Agent prior to the Closing Date, or such other form as reasonably agreed to by the Administrative Agent, pursuant to which such counterparty acknowledges or consents to (as applicable in accordance with the requirements of the respective Material Project Document), *inter alia*, the Collateral Agent's security interest in the applicable Loan Party's rights under such Material Project Document, on behalf of the Secured Parties.

"<u>Construction Account</u>" is defined in the Depositary Agreement.

"<u>Construction Budget</u>" is defined in<u>[Section 5.1.17](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Construction Date Certain</u>" means the date that is ninety (90) days prior to the *earlier of* (x) "Outside Commercial Operation Date" (as defined in the Shell PPA) (as such date may be extended under the Shell PPA no more than once and by no more than 30 days); <u>provided</u> that if the "Commercial Operation Date" has occurred under the Shell PPA and the Conversion Date has not occurred as of such date, the "Outside Commercial Operation Date" (as defined in the Shell PPA) shall be disregarded for purposes of determining the Construction Date Certain, (y) the "Delivery Deadline Date" (as defined in the SCE PPA) (as such date may be extended under the SCE PPA no more than once and by no more than 30 days); and (z) the Commitment Expiration Date (as defined in the PTC Transfer Agreement) (however such term is defined in the PTC Transfer Agreement) (as such date may be extended under the PTC Transfer Agreement no more than once and by no more than 30 days).

"<u>Construction Drawdown Certificate</u>" means a certificate substantially in the form of <u>Exhibit M</u>.

"<u>Construction Loan Commitment</u>" means, relative to any Construction Loan Lender, such Lender's obligation to make Construction Loans pursuant to <u>Section 2.1.1</u>. The amount of each Lender's Construction Loan Commitment, if any, is set forth on <u>Schedule II</u> or in the applicable Lender Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof.

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"<u>Construction Loan Commitment Amount</u>" means $308,747,196.07; as such amounts may be reduced from time to time pursuant to <u>Section 2.2</u> or<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Construction Loan Commitment Termination Date</u>" means the earliest of (a) the Conversion Date, (b) the Term Conversion Deadline, and (c) the date on which any Commitment Termination Event occurs.

"<u>Construction Loan Exposure</u>" means, with respect to any Construction Loan Lender, as of any date of determination, (a) prior to the termination of all Construction Loan Commitments of such Construction Loan Lender, the sum of the (i) the aggregate amount of Construction Loans of such Construction Loan Lender then outstanding plus (ii) aggregate amount of all available Construction Loan Commitments of such Construction Loan Lender then outstanding and (b) after the termination of all Construction Loan Commitments of such Construction Loan Lender, the aggregate outstanding principal amount of all Construction Loans of such Construction Loan Lender.

"<u>Construction Loan Facility</u>" means the Construction Loan Commitments and the Construction Loans made hereunder.

"<u>Construction Loan Lender</u>" is defined in <u>Section 2.1.1</u>.

"<u>Construction Loan Maturity Date</u>" means the earliest of (a) the Conversion Date, (b) the date on which any Commitment Termination Event occurs, (c) the Construction Date Certain, and (d) the Second Credit Extension Deadline, if the second Credit Extension shall not have occurred on or prior to such date.

"<u>Construction Loan Percentage</u>" means, with respect to all payments, computations and other matters relating to the Construction Loan of any Lender, the percentage obtained by dividing (a) the Construction Loan Exposure of that Lender by (b) the aggregate Construction Loan Exposure of all Lenders.

"<u>Construction Loans</u>" is defined in <u>Section 2.1.1</u>.

"<u>Construction Loan Note</u>" means a promissory note of the Cape Phase 1 Borrower payable to any Lender, in the form of <u>Exhibit A-1</u> hereto (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the Cape Phase 1 Borrower to such Lender resulting from outstanding Construction Loans and also means all other promissory notes accepted from time to time in substitution therefor or renewal thereof.

"<u>Construction Period</u>" means the period from the Closing Date until the earlier of (i) the Conversion Date and (ii) the Construction Date Certain.

"<u>Construction Report</u>" means a report substantially in the form of <u>Exhibit R</u> or otherwise in form and substance reasonably satisfactory to the Administrative Agent.

"<u>Construction Schedule</u>" is defined in <u>Section 5.1.18</u>.

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"<u>Contingent Liability</u>" means any agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the Indebtedness of any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of dividends or other distributions upon the Capital Securities of any other Person. The amount of any Person's obligation under any Contingent Liability shall be deemed to be the outstanding principal amount of the debt, obligation or other liability guaranteed thereby (reduced to the extent that such Person's obligation thereunder is reduced by Applicable Law or valid contractual agreement).

"<u>Continuation/Conversion Notice</u>" means a notice of continuation or conversion and certificate duly executed and delivered by an Authorized Officer of the applicable Borrower, substantially in the form of <u>Exhibit C</u>.

"<u>Contractor</u>" means the Material Project Party party to the Material Construction Contract.

"<u>Control</u>" of a Person means the (a) the possession, directly or indirectly, of fifty point one percent (50.1%) or more of the Capital Securities (on a fully diluted basis) of such Person, (b) the power, directly or indirectly, to vote (under ordinary circumstances) fifty point one percent (50.1%) or more of the Capital Securities (on a fully diluted basis) of such Person for the election of directors, managers, managing members or general partners (as applicable) or (c) the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person (whether by contract or otherwise).

"<u>Controlled Group</u>" means, with respect to any entity, all members of a controlled group of corporations and all members of a controlled group of trades or businesses (whether or not incorporated) under common Control which, together with such entity, are treated as a single employer under Section 414(b) or 414(c) of the Code or Section 4001 of ERISA.

"<u>Conversion Date</u>" means the date on which Term Conversion occurs.

"<u>Conversion Date Borrower Model</u>" is defined in<u>[Section 5.2.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Coordinating Lead Arranger</u>" is defined in the <u>preamble</u>.

"<u>Cost Segregation Report</u>" means the independent cost segregation report, to be prepared by KPMG LLP or some other nationally recognized third party auditor as may be engaged by the WellCo Borrower, in respect of the WellCo Facilities.

"<u>Covered Entity</u>" means any of the following: (a) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (c) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"<u>Covered Party</u>" is defined in <u>Section 11.24</u>.

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"<u>Credit Extension</u>" means, as the context may require,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the making of a Loan by a Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the issuance of any Letter of Credit, the increase of the Stated Amount of any existing Letter of Credit or the extension of any Stated Expiry Date of any existing Letter of Credit, by any LC Issuer (whether automatically by its terms or upon request of a Borrower).

"<u>Credit Parties</u>" means, collectively, the Lenders, the LC Issuers, the Collateral Agent, the Administrative Agent, the Depositary Bank and each of their respective successors and permitted assigns.

"<u>Credit Rating</u>" means, with respect to a Person, the rating assigned by a Rating Agency to the senior long-term unsecured debt obligations of such Person or, if such Person does not have senior long-term unsecured debt obligations that are rated by a Rating Agency, the rating assigned by a Rating Agency as the corporate credit rating or issuer rating of such Person (in each case not supported by any third-party credit enhancement). In the event more than one Rating Agency has assigned such Person a Credit Rating, the applicable Credit Rating shall be the lowest of the Credit Ratings assigned by any such Rating Agency.

"<u>Current GAAP Financials</u>" is defined in<u>[Section 1.4(](#i918c83e63c6d41b4b3424c701423fa52_1)b)</u>.

"<u>CTL Debt Sizing Criteria</u>" means, as of any date, the *lesser* of (a) the amount of Term Loans that would be fully repaid assuming a post-Term Conversion Date amortization profile that achieves a minimum Debt Service Coverage Ratio of 1.50x using the P90 Production Forecast set forth in the then current Borrower Model prior to the Conversion Date or the Conversion Date Borrower Model (whichever is the latest to be delivered by the Borrowers) based on Cash Flow Available for Debt Service (other than with respect to clauses (a)(iii), (c), (d) and (e) of the definition of "Cash Flow Available for Debt Service") (such amount, the "<u>Available Term Loan Capacity</u>"), and (b) 75% of the Total Project Costs (including Total Project Costs incurred prior to the Closing Date and verified by the Independent Engineer, and contingency) *minus* the TRABL Commitments.

"<u>Customs Duties</u>" means AD/CVD or any import taxes, customs duties or tariffs, or other import-related charges that have been imposed, assessed or levied on imported material equipment or any other imported items to be utilized for the Project or, if material to the financial viability of the Project, formally announced and that are applicable to the imported material equipment or any other imported items to be utilized for the Project under any applicable law including, but not limited to, Section 122, Section 201 or Section 301 of the Trade Act of 1974, as amended, Section 232 of the Trade Expansion Act of 1962, as amended, the Tariff Act of 1930, as amended, or the International Emergency Economic Powers Act.

"<u>Daily Compounded SOFR</u>" means, for any day (a "<u>SOFR Rate Day</u>"), a rate per annum equal to the greater of (a) SOFR for the day (such day, a "<u>SOFR Determination Day</u>") that is five (5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day

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immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator's Website, and (b) the Floor. If by 5:00 p.m. (New York City time) on the second (2<sup>nd</sup>) U.S. Government Securities Business Day immediately following any SOFR Determination Day, SOFR in respect of such SOFR Determination Day has not been published on the SOFR Administrator's Website and a Benchmark Replacement Date with respect to the Daily Compounded SOFR has not occurred, then SOFR for such SOFR Determination Day will be SOFR as published in respect of the first preceding U.S. Government Securities Business Day for which such SOFR was published on the SOFR Administrator's Website; <u>provided</u> that any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Compounded SOFR for no more than three (3) consecutive SOFR Rate Days. Any change in Daily Compounded SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Borrower.

"<u>Debt Service Coverage Ratio</u>" means, for any Measurement Period (or such other period as contemplated by <u>Section[8.5(d)(v)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1), the ratio of (a) Cash Flow Available for Debt Service for such Measurement Period (or such other period as contemplated by <u>Section[8.5(d)(v)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1) to (b) Cash Debt Service for such Measurement Period (or such other period as contemplated by <u>Section[8.5(d)(v)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1).

"<u>Debtor Relief Laws</u>" means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect.

"<u>Default</u>" means any Event of Default or any condition, occurrence or event which, after notice or lapse of time or both, would constitute an Event of Default.

"<u>Default Right</u>" is defined in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"<u>Defaulting Lender</u>" means, subject to<u>[Section 4.12(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent, any applicable LC Issuer with Fronting Exposure to such Defaulting Lender and the Borrowers in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default shall be specifically identified in such writing) has not been satisfied or waived in accordance with the terms and conditions hereof, or (ii) pay to the Administrative Agent, any applicable LC Issuer with Fronting Exposure to such Defaulting Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit, to the extent any applicable LC Issuer has Fronting Exposure to such Defaulting Lender) within two (2) Business Days of the date when due, (b) has notified the Borrowers, any applicable LC Issuer with Fronting Exposure to such Defaulting Lender or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's

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determination that a condition precedent to funding (which condition precedent, together with any applicable default shall be specifically identified in such writing or public statement) cannot be satisfied and has not been waived in accordance with the terms and conditions hereof), (c) has failed, within three (3) Business Days after written request by the Administrative Agent, any applicable LC Issuer with Fronting Exposure to such Defaulting Lender or any Borrowers, to confirm in writing to the Administrative Agent and the Borrowers that it will comply with its prospective funding obligations hereunder (<u>provided</u> that such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c)</u> upon receipt of such written confirmation by the Administrative Agent and Borrowers) or (d) has, or has a direct or indirect parent company that has (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state, federal or national regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-In Action; <u>provided</u> that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Capital Securities in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses (a)</u> through <u>(d)</u> above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 4.12(b)) upon delivery of written notice of such determination to the Borrowers, any applicable LC Issuer with Fronting Exposure to such Defaulting Lender and each other Lender.

"<u>Deposit Account</u>" means a "deposit account" as that term is defined in Section 9-102(a) of the UCC.

"<u>Depositary Agreement</u>" means the Depositary Agreement, dated as of the Closing Date, duly executed and delivered by the Borrowers, the Administrative Agent, the Collateral Agent and the Depositary Bank, as amended, supplemented, amended and restated or otherwise modified from time to time.

"<u>Depositary Bank</u>" means HSBC Bank USA, National Association and includes each other Person appointed as the successor Depositary Bank pursuant to the terms of the Depositary Agreement.

"<u>Development</u>" means the development, acquisition, ownership, financing, leasing, occupation, remediation, construction, equipping, testing, start-up, alteration, reconstruction, repair, operation, maintenance and use of the Project and any activity reasonably related to or incidental to the foregoing.

"<u>Development Agreement</u>" means the contract listed under the heading "Development Agreement" in <u>Schedule V</u>.

"<u>Disbursement</u>" is defined in <u>Section 2.6.3(a)</u>.

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"<u>Disbursement Date</u>" is defined in <u>Section 2.6.3(a)</u>.

"<u>Disclosure Schedule</u>" means the Disclosure Schedule attached hereto as <u>Schedule I</u>, as it may be amended, supplemented, amended and restated or otherwise modified from time to time by the Borrowers with the written consent of the Required Lenders.

"<u>Disposition</u>" (or similar words such as "<u>Dispose</u>") means, with respect to any Person, any sale, transfer, lease, contribution or other conveyance (including by way of merger) of, or the granting of options, warrants or other rights to, any of such Person's or its Subsidiaries' assets (including accounts receivables and Capital Securities of Subsidiaries) to any other Person in a single transaction or series of related transactions.

"<u>Disqualified Owner</u>" means any Person that, when such Person acquires Control of the Sponsor, is a Sanctioned Person; <u>provided</u>, however, that a Person shall not be a Disqualified Owner if, prior to the date that such Person first acquires Control of the Sponsor: (i) the Borrowers provide or cause to be provided to the Administrative Agent (or any Credit Party through the Administrative Agent) all documentation and other written information reasonably requested under applicable "know your customer" provisions of Anti-Money Laundering Laws, including the PATRIOT Act, in respect of such Person, as consistently applied; and (ii) such Person or the Borrowers have certified to the Administrative Agent that the foregoing criterion is not applicable to such Person.

"<u>Disqualified Person</u>" means (a) a "tax-exempt entity" as defined in Section 168(h)(2) of the Code (unless such Person would be subject to tax under Section 511 of the Code on all income of the applicable Person or unless the exception under Section 168(h)(1)(D) or Section 168(h)(2)(B) of the Code applies) or "tax-exempt controlled entity" as defined in Section 168(h)(6)(F)(iii) of the Code (unless an election is in effect under Section 168(h)(6)(F)(ii) of the Code); (b) a Person described in Section 50(b)(3) (unless such Person would be subject to tax under Section 511 of the Code on all income from the applicable Person) or Section 50(b)(4) of the Code; <u>provided</u> that if any such Person owns its interest indirectly through a domestic corporation that is subject to tax under Section 11 of the Code, other than any such corporation that is a "tax exempt controlled entity" (as defined in Section 168(h)(6)(F)(iii) of the Code), then such Person will not be deemed to be a Disqualified Person; or (c) any other Person (including any partnership, disregarded entity, or other pass-through entity with any direct owner described in <u>clauses (a)</u> or <u>(b)</u> or this <u>clause (c)</u>) whose ownership of a membership interest in the WellCo Borrower would result in a recapture or disallowance of, or inability to claim, the ITCs.

"<u>Distribution Conditions (Post Conversion Date)</u>" is defined in the Depositary Agreement.

"<u>Distribution Suspense Account</u>" is defined in the Depositary Agreement.

"<u>Dollar</u>" and the sign "<u>$</u>" mean lawful currency of the United States.

"<u>Drilling and Completions Plan</u>" means the drilling and completions plan set forth in <u>Exhibit Q-3</u>.

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"<u>Drilling License Agreement</u>" means a license agreement providing for the grant by the Sponsor to the WellCo Borrower of a non-exclusive, fully-paid, royalty-free, perpetual, irrevocable, transferable (including the right to assign its rights without consent to any purchaser of (x) all the membership interests of WellCo Borrower, (y) the ITC Facilities or (z) the Project) license and right to use drilling process intellectual property (including all applicable patents, patent applications, trade secrets, know-how and software) held by the Sponsor to the extent necessary to design, engineer, procure, finance, construct, commission, operate, repair, maintain, augment and upgrade the WellCo Facilities for the Project and for no other purpose or project, in form and substance reasonably satisfactory to the Required Lenders.

"<u>DSR Account</u>" is defined in the Depositary Agreement.

"<u>DSR LC Commitments</u>" means the DSR LC Loan Commitments and the DSR LC Issuing Commitments.

"<u>DSR LC Facility</u>" means the DSR LC Loan Commitments and the DSR LC Loans made hereunder.

"<u>DSR LC Issuers</u>" means the Persons listed under the heading "DSR LC Issuing Commitments" on <u>Schedule II</u>, each in its capacity as an issuer under the applicable DSR LC Tranche hereunder. In the event that there is more than one DSR LC Issuer at any time, references herein and in the other Loan Documents to the DSR LC Issuer shall be deemed to refer to the DSR LC Issuer in respect of the applicable DSR Letter of Credit or to all DSR LC Issuers, as the context requires.

"<u>DSR LC Issuing Commitment</u>" means a DSR LC Issuer's obligation to issue DSR Letters of Credit pursuant to <u>Section 2.1.4(b)</u> and "<u>DSR LC Issuing Commitments</u>" means such commitments of all DSR LC Issuers. The amount of each DSR LC Issuer's DSR LC Issuing Commitment in respect of the applicable DSR LC Tranche is the amount set forth in each case on <u>Schedule II</u>, subject to any assignment, adjustment or reduction pursuant to the terms and conditions hereof.

"<u>DSR LC Issuing Commitment Amount</u>" means, as of the Closing Date, a maximum amount of $44,277,953.46, as such amount may be reduced from time to time pursuant to <u>Section 2.2</u>.

"<u>DSR LC Loan</u>" means an LC Loan advanced in respect of a Disbursement under a DSR Letter of Credit pursuant to <u>Section 2.6.3(b)</u>.

"<u>DSR LC Loan Commitment</u>" means, as the context may require, relative to any Lender, such Lender's obligation (if any) to make DSR LC Loans pursuant to <u>Section 2.6.2(b)</u> and the obligation of each DSR LC Loan Lender to participate in DSR Letters of Credit under the applicable DSR LC Tranche in which it is a participant hereunder, as applicable, and "<u>DSR LC</u> <u>Loan Commitments</u>" means such commitments of all Lenders. The amount of each Lender's DSR LC Loan Commitment, if any, is the amount set forth in each case on <u>Schedule II</u> with respect to the applicable DSR LC Tranche or in the applicable Lender Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The

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aggregate amount of the DSR LC Loan Commitments shall not exceed the DSR LC Loan Commitment Amount.

"<u>DSR LC Loan Commitment Amount</u>" means, as of the Closing Date, $44,277,953.46 as such amount may be reduced from time to time pursuant to <u>Section 2.2</u> or<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>provided</u> that the DSR LC Loan Commitment Amount shall not exceed the DSR LC Issuing Commitment Amount.

"<u>DSR LC Loan Commitment Termination Date</u>" means, the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the DSR LC Loan Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the date on which the DSR LC Loan Commitment Amount is terminated in full or permanently reduced to zero pursuant to the terms of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the date on which any Commitment Termination Event occurs.

Upon the occurrence of any event described above, the DSR LC Loan Commitments shall terminate automatically and without any further action.

"<u>DSR LC Loan Exposure</u>" means, as of any date of determination with respect to a DSR LC Loan Lender, (a) prior to the termination of the DSR LC Loan Commitments, the sum of (i) the aggregate amount of the Available DSR LC Loan Commitments of such DSR LC Loan Lender, (ii) all DSR LC Outstandings of such DSR LC Loan Lender, and (iii) the aggregate outstanding principal amount of all DSR LC Loans of such DSR LC Loan Lender, and (b) after the termination of the DSR LC Loan Commitments, the sum of (i) the aggregate outstanding principal amount of all DSR LC Loans of such DSR LC Loan Lender and (ii) all DSR LC Outstandings of such DSR LC Loan Lender.

"<u>DSR LC Loan Lender</u>" means each Lender that has a DSR LC Loan Commitment.

"<u>DSR LC Loan Maturity Date</u>" means the Term Loan Maturity Date.

"<u>DSR LC Loan Percentage</u>" means with respect to all payments, computations and other matters relating to the DSR LC Loan Commitment or DSR LC Loans of any DSR LC Loan Lender or any DSR Letters of Credit issued or participations acquired therein by any DSR LC Loan Lender at any time, the percentage obtained by dividing (a) the DSR LC Loan Exposure of that DSR LC Loan Lender by (b) the aggregate DSR LC Loan Exposure of all DSR LC Loan Lenders at such time.

"<u>DSR LC Note</u>" means a promissory note of the applicable Borrower payable to any Lender, in the form of <u>Exhibit A-5</u> (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the applicable Borrower to such Lender resulting from outstanding DSR LC Loans and also means all other promissory notes accepted from time to time in substitution therefor or renewal thereof.

"<u>DSR LC Outstandings</u>" means, at any time of determination, the sum of (a) the aggregate Stated Amount of all issued and outstanding DSR Letters of Credit <u>plus</u> (b) all

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outstanding and unreimbursed Reimbursement Obligations, and, as to each DSR LC Loan Lender, such Lender's share of the DSR LC Outstandings.

"<u>DSR LC Percentage</u>" means, as to any DSR LC Loan Lender at any given time, the percentage which such Lender's DSR LC Loan Commitment under the applicable DSR LC Tranche in which it is a participant then constitutes of the aggregate DSR LC Loan Commitments under such DSR LC Tranche.

"<u>DSR LC Tranche</u>" means each DSR LC Issuer's DSR LC Issuing Commitment and the applicable DSR LC Loan Lender's DSR LC Loan Commitment in respect of such DSR LC Issuing Commitment, as the context may require.

"<u>DSR Letter of Credit</u>" is defined in <u>Section 2.1.4(b)(i)</u>.

"<u>DSR Requirement</u>" is defined in the Depositary Agreement.

"<u>E&S Obligations</u>" means the obligations of any Loan Party to (a) comply with any applicable Environmental Law in all material respects, and (b) comply with the ESG Action Plan.

"<u>E&S Self-Monitoring Reports</u>" means a report in form and substance reasonably acceptable to the Required Lenders, containing (a) a statement that (and description of how) all E&S Obligations of the Loan Parties have been fulfilled since the Closing Date; (b) to the extent that the statement in <u>clause (a)</u> cannot be delivered by the Borrowers, a disclosure of the E&S Obligations that have not been fulfilled and a description of any planned mitigation in respect thereof; (c) details of any Environmental Claim subsisting as of the date of the second Credit Extension; and (d) any other material matter pertaining to compliance with Environmental Laws in respect of the Project.

"<u>EDR</u>" means Escalante Desert Resources LLC, a Delaware limited liability company.

"<u>EDR Leases</u>" means each of the contracts listed under the heading "EDR Leases" in <u>Schedule X</u>.

"<u>EDR Permitted Encumbrances</u>" means (a) encumbrances imposed by any Governmental Authority for Taxes (i) that are not yet due and payable, or (ii) that are being contested in good faith through appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of EDR in accordance with GAAP, (b) mechanics', materialmen's, repairmen's and other similar liens arising in the ordinary course of business and incident to the construction, improvement or restoration of the Project in respect of obligations that are not yet due or that are being contested in good faith by appropriate proceedings, (c) minor defects, easements, rights-of- way, restrictions and other similar encumbrances incurred in the ordinary course of business and encumbrances, licenses, crossing agreements, restrictions on the use of property or minor imperfections in title, in each case that do not materially interfere with the construction, operation or maintenance of the Project, (d) encumbrances permitted by or created pursuant to (i) the Loan Documents or (ii) the Project Documents, (e) any Schedule B exceptions listed on the Title Policy and any date down endorsement thereof, (f) award or judgment encumbrances that, in the reasonable determination of the Administrative Agent (acting at the direction of the

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Required Lenders), do not involve any risk of forfeiture, sale, foreclosure, or other loss of the Project or any material portion thereof, so long as (i) the Loan Parties have provided written notice to the Administrative Agent of such award or judgment within five (5) Business Days of receipt thereof, together with a description of the basis for contesting such award or judgment, (ii) such award or judgment is being contested in good faith by appropriate proceedings, and (iii) the payment of such award or judgment does not exceed $500,000 individually or $1,500,000 in the aggregate for all such awards and judgments at any time outstanding, unless in each case is covered by a valid binding policy of insurance or by a surety bond between the defendant and the insurer covering payment thereof or other security reasonably acceptable to the Administrative Agent (acting at the direction of the Required Lenders), and (g) zoning, entitlement, conservation restrictions and other land use and environmental regulations by Governmental Authorities.

"<u>EDR Project Pledge</u>" means the consummation of any transaction or series of related transactions, the result of which is that EDR has created or permitted to exist any Lien on the Capital Securities of EDR or on any assets of EDR relating to the Project, except for EDR Permitted Encumbrances.

"<u>EEA Financial Institution</u>" means (a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in <u>clause (a)</u> of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution described in <u>clauses (a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Eligible Assignee</u>" means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund or (d) any other Eligible Person; <u>provided</u> that an Eligible Assignee shall not be (i) the Sponsor, (ii) any Borrower, (iii) a Defaulting Lender or (iv) any Affiliate of the Sponsor or a Borrower.

"<u>Eligible Person</u>" means (a) any commercial bank, insurance company or other Person (other than a natural person) that is an "accredited investor" (as defined in Regulation D under the Securities Act of 1933, as amended) and which extends credit or buys loans in the ordinary course of business and (c) any trust or other entity that is funded by one or more Persons meeting the requirements of <u>clause (a)</u>.

"<u>Environmental Claims</u>" means any and all administrative, regulatory or judicial actions, suits, demands, decrees, claims, liens, judgments, obligations, liabilities, losses, warning notices, notices of noncompliance or violation, written notices of potential liability, regulatory investigations, inquiries, proceedings, removal or remedial actions or orders, or damages (foreseeable and unforeseeable, including punitive damages), penalties, fees, out of pocket costs,

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expenses, disbursements, attorneys' or consultants' fees, in each case, arising under any Environmental Law or any Permit issued under any such Environmental Law, contingent or otherwise, including without limitation (a) any and all claims or actions by Governmental Authorities or any other Person for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any applicable Environmental Law, (b) any claims or actions by any third party challenging any Permit issued under any Environmental Law or seeking damages, penalties, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from or otherwise related to the presence or Release of Hazardous Materials or arising from actual or alleged injury or threat of injury to natural resources, protected species, or the environment, and (c) any contract, agreement or other binding consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

"<u>Environmental Consultants</u>" means each of (a) Environmental Resources Management, Inc. and (b) Groundwater & Environmental Services, Inc.

"<u>Environmental Consultant Reports</u>" mean each of (a) the Equator Principals Gap Assessment, dated as of August 25, 2025, issued by Environmental Resources Management, Inc. and (b) the Phase I Environmental Site Assessment of Cape Station, issued by Groundwater & Environmental Services, Inc., dated October 27, 2025.

"<u>Environmental Laws</u>" means any and all Applicable Laws (including common law) pertaining to, regulating or otherwise relating to pollution or protection of the environment, human health and safety (to the extent relating to Hazardous Materials), flora and fauna and related habitat, or natural resources, including without limitation (a) Applicable Laws relating to any actual or threatened Release, manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of any Hazardous Materials, and (b) the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. §§ 9601 et seq.) ("CERCLA"), the Federal Water Pollution Control Act (33 U.S.C. §§ 1251 et seq.), Resource Conservation and Recovery Act of 1976 ("RCRA") (42 U.S.C. §6901 et seq.), the Safe Drinking Water Act (42 U.S.C. §300f et seq.), the Toxic Substances Control Act (15 U.S.C. §2601 et seq.), Section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. § 403), the Migratory Bird Treaty Act (16 U.S.C. §§ 701 et seq.), the Bald and Golden Eagle Protection Act (16 U.S.C. §§ 668 et seq.) and the Endangered Species Act of 1973 (16 U.S.C. §§ 1531 et seq.), all along with any amendments or reauthorization thereto or thereof, and all analogous state and local counterparts or equivalents, and any and all regulations promulgated thereunder any of the foregoing, as amended from time to time.

"<u>Equator Principles</u>" means the principles named "Equator Principles – A financial industry benchmark for determining, assessing and managing environmental and social risk in projects" adopted by various financial institutions in the form dated July 2020 and available at: <u>https://equator-principles.com/wp-content/uploads/2021/02/The-Equator-Principles-July-</u> <u>2020.pdf</u>., as adopted in such form by certain financial institutions and as applicable to borrowers with respect to projects of the applicable category of the Project, and any successor principles thereto when the same shall come into effect.

"<u>Equipment Supplier</u>" means each Material Project Party to a Material Equipment Supply Contract.

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"<u>Equity Commitment Letter</u>" means the Contingent Equity Commitment Letter, dated as of the Closing Date, issued by the Sponsor and accepted by the Borrowers.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto of similar import, together with the regulations thereunder, in each case as in effect from time to time. References to Sections of ERISA also refer to any successor Sections thereto.

"<u>ERISA Event</u>" means (a) a "reportable event" within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to a Pension Plan (other than an event for which the provision for 30-day notice to the PBGC has been waived); (b) a withdrawal by any Loan Party or any member of its Controlled Group from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA or the termination of a Pension Plan resulting in liability to any Loan Party or any member of its controlled group under Section 4063 of ERISA; (c) a complete or partial withdrawal by any Loan Party or any member of its Controlled Group from a Multiemployer Plan or notification that a Multiemployer Plan is in "insolvency" (within the meaning of Section 4245 of ERISA) or "endangered", "critical" or "critical and declining" status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (d) the filing of a notice of intent to terminate, the treatment of a Pension Plan or Multiemployer Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon any Loan Party or any member of its Controlled Group; (g) the failure by any Loan Party or a member of its Controlled Group to meet the funding requirements of Section 412 and 430 of the Code or Sections 302 and 303 of ERISA with respect to any Pension Plan, whether or not waived, the failure to make by its due date a required installment under Section 430(j) of the Code or Section 303(j) of ERISA with respect to any Pension Plan or the failure to make any required contribution to a Multiemployer Plan; (h) the filing pursuant to Section 412(c) of the Code or Section 303(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Pension Plan or (i) a determination that any Pension Plan is, or is expected to be in, "at-risk" status (as defined in Section 303(i) of ERISA or Section 430(i) of the Code).

"<u>Erroneous Payment</u>" is defined in <u>Section 10.15(a)</u>.

"<u>Erroneous Payment Deficiency Assignment</u>" is defined in <u>Section 10.15(d)</u>.

"<u>Erroneous Payment Impacted Class</u>" is defined in <u>Section 10.15(d)</u>.

"<u>Erroneous Payment Return Deficiency</u>" is defined in <u>Section 10.15(d)</u>.

"<u>Erroneous Payment Subrogation Rights</u>" is defined in <u>Section 10.15(e)</u>.

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"<u>ESG Action Plan</u>" means the Environmental and Social Action Plan – Project Obsidian, dated as of October 23, 2025.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

"<u>Event of Default</u>" is defined in<u>[Section 9.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Event of Loss</u>" is defined in<u>[Section 9.1.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>EWG</u>" means an "exempt wholesale generator," as defined in Section 1262(6) of PUHCA and FERC's regulations at 18 C.F.R. § 366.1.

"<u>Excluded Communications</u>" is defined in <u>Section 10.12(b)</u>.

"<u>Excluded Swap Obligation</u>" means, with respect to any Non-ECP Guarantor, any Swap Obligation of such Non-ECP Guarantor if, and to the extent that such Swap Obligation is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof). If a Swap Obligation of a Non-ECP Guarantor arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is or becomes illegal.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to a Credit Party or required to be withheld or deducted from a payment to a Credit Party, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Credit Party being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrowers under<u>[Section 4.11](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to<u>[Section 4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Credit Party's failure to comply with<u>[Section 4.6(g)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and (d) any withholding Taxes imposed under FATCA.

"<u>Expected Tax Credit Purchase Price</u>" means (a) in respect of the ITC Transfer Agreement, no less than $0.87 per $1.00 of ITC and (b) in respect of the PTC Transfer Agreement, no less than $0.91 per $1.00 of PTC.

"<u>Facilities</u>" means the Construction Loan Facility, the Term Loan Facility, the TRABL Facility, the Material Construction Contract LC Facility, the DSR LC Facility, the SCE PPA LC Facility and the Shell PPA LC Facility, as the context may require.

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"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation or rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such sections of the Code.

"<u>Federal Funds Rate</u>" means, for any day, the greater of (a) the rate calculated by the Federal Reserve Bank of New York based on such day's Federal funds transactions by depositary institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the Federal Funds Rate and (b) 0%.

"<u>Fee Letter</u>" means any fee letter entered into by the Borrowers or Sponsor and an Agent, Coordinating Lead Arranger, and/or Lender on or prior to the Closing Date, expressly designated as a "Fee Letter" hereunder by the parties thereto.

"<u>FERC</u>" means the Federal Energy Regulatory Commission, and any successor thereto.

"<u>Filing Statements</u>" is defined in <u>Section 5.3.9(b)</u>.

"<u>Fiscal Quarter</u>" means any fiscal quarter of a Fiscal Year.

"<u>Fiscal Year</u>" means a fiscal year of a Borrower; references to a Fiscal Year with a number corresponding to any calendar year (e.g., "Fiscal Year 2025") refer to the Fiscal Year ending on or about December 31 of such calendar year.

"<u>Fitch</u>" means Fitch Investor's Service, Inc., or its successor.

"<u>Flood Insurance Requirements</u>" is defined in <u>Section 5.1.31</u>.

"<u>Floor</u>" means a rate of interest equal to zero percent (0%).

"<u>Forced Outage</u>" means any complete or partial outage of greater than ten percent (10%) of site capacity at the Project caused by equipment failure or required maintenance within the point of common coupling (PCC) (in accordance with Prudent Industry Practices) that is not scheduled or planned by any Loan Party.

"<u>FPA</u>" means the Federal Power Act, 16 U.S.C. §§ 791a, et seq., as amended, and the rules and regulations adopted by FERC.

"<u>Fronting Exposure</u>" means, at any time there is a Defaulting Lender in respect of any LC Tranche, such Defaulting Lender's LC Percentage of the outstanding Obligations with respect to Letters of Credit issued by the LC Issuer under the applicable LC Tranche, other than such Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

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"<u>Fund</u>" means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities.

"<u>GAAP</u>" means generally accepted accounting principles in effect from time to time in the United States, applied on a consistent basis, subject to the provisions of<u>[Section 1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and <u>[Section 1.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>GenCo Facilities</u>" means the three 31 MW organic rankine cycle technology turbine facilities and associated equipment that will utilize geothermal energy to produce electricity, in each case, forming part of the Project.

"<u>Generator Injection Rights Agreement</u>" means the contract listed under the heading "Generator Injection Rights Agreement" in <u>Schedule V</u>.

"<u>Governmental Authority</u>" means the government of the United States, any other nation or any political subdivision thereof, whether state or local, including any supra-national bodies (such as the European Union or the European Central Bank), and any agency, authority, instrumentality, regulatory body, court, central bank, the NAIC or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including, as applicable to the Project, FERC, NERC, United States Department of the Interior, Bureau of Land Management, the Utah PSC, Utah Department of Environmental Quality, Utah Department of Natural Resources, Utah Division of Water Rights, Utah Division of Wildlife Resources, the Los Angeles Department of Water and Power, and the California Independent System Operator Corporation.

"<u>Governmental Rule</u>" means, with respect to any Person or the Project, any statute, law, rule, regulation, ordinance, rule of common law, order or binding interpretation, code, treaty, judgment, decree, including any form of decision of any Governmental Authority, in each case, binding upon such Person or any of its properties or the Project or to which such Person or any of its property is subject, including any Environmental Law.

"<u>Green Loan Coordinator</u>" is defined in the <u>preamble</u>.

"<u>Green Loan Principles</u>" means the voluntary recommended guidelines for categorizing loans as "green" published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndication and Trading Association in March 2025 in relation to promoting the development and integrity of green loan products in effect on the Closing Date.

"<u>Green Loan Report</u>" is defined in <u>Section 7.21(b)</u>.

"<u>GSSAs</u>" means the contracts listed under the heading "GSSAs" in <u>Schedule V</u>.

"<u>GSSA Amendments</u>" means, collectively, (a) that certain Second Amendment to Geothermal Substances Supply Agreement (CGS3) by and among EDR, the WellCo Borrower, and CGS 3 and (b) that certain Second Amendment to Geothermal Substances Supply Agreement (CGS5) by and among EDR, the WellCo Borrower, and CGS 5, in each case, to be

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executed as of the date of the second Credit Extension, in the form of <u>Exhibits BB-1</u> and <u>BB-2</u> respectively.

"<u>Guarantee and Collateral Agreement</u>" means the Guarantee and Collateral Agreement, to be dated as of the date of the second Credit Extension, among the Loan Parties and the Collateral Agent, substantially in the form of <u>Exhibit V-1</u>.

"<u>Hazardous Material</u>" means any (a) chemical, compound, material, mixture or substance that is now or hereafter defined or listed in, or otherwise classified pursuant to, any Environmental Law as a "hazardous substance," "hazardous material," "hazardous waste," "extremely hazardous waste," "acutely hazardous waste," "restricted hazardous waste," "radioactive waste," "infectious waste," "biohazardous waste," "toxic substance," "pollutant," "toxic pollutant," or "contaminant" or words of similar import intended to define, list, or classify substances by reason of environmentally deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, "EP Toxicity," or "TCLP toxicity" under applicable Environmental Law; (b) petroleum, natural gas, natural gas liquids, liquefied natural gas, synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas) and ash produced by a resource recovery facility utilizing a municipal solid waste stream, and drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, natural gas, or geothermal resources; (c) any flammable substances or explosives; (d) radioactive materials; (e) asbestos in any form; (f) urea formaldehyde foam insulation; (g) polychlorinated biphenyls (PCBs) or PCB containing materials or fluids; (h) radon; (i) per- and polyfluoroalkyl substances, perfluorooctanoic acid, or perfluorooctane sulfonate or any similar substances and (j) any other chemical, material, or substance that, because of its quantity, concentration, or physical or chemical characteristics, exposure to which is limited or regulated for health and safety reasons by any Governmental Authority under any applicable Environmental Law, which poses a present or potential hazard to human health and safety or to the environment if Released into the workplace or the environment or which could give rise to liability or standards of conduct under any applicable Environmental Law.

"<u>Hedge Agreements</u>" means Interest Rate Hedge Agreements and all other agreements or arrangements designed to protect a Person against fluctuations in interest rates or commodity prices, in each case entered into in the ordinary course of business and not for speculative purposes.

"<u>Hedging Coordinator</u>" is defined in the <u>preamble</u>.

"<u>Hedging Obligations</u>" means, with respect to any Person, all net scheduled amounts and early termination amounts payable by such Person under Hedge Agreements to which it is a party, in each case calculated in accordance with the terms of such Hedge Agreements, together with any default interest thereon and, if relevant, fees and expenses permitted under the Hedge Agreement.

"<u>Illegality Notice</u>" is defined in <u>Section 4.1(b)</u>.

"<u>Impermissible Qualification</u>" means, relative to the opinion or certification of the Independent Public Accountant as to any financial statement of a Borrower, any qualification or

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exception to such opinion or certification (a) which is of a "going concern" or similar nature (other than any such exception or explanatory paragraph that is expressly solely with respect to, or expressly resulting solely from, an upcoming maturity date under the Loans that is scheduled to occur within one (1) year from the time such opinion or certification is delivered) or (b) which relates to the limited scope of examination of matters relevant to such financial statement (except, in the case of matters relating to any acquired business or assets permitted under this Agreement, in respect of the period prior to the acquisition by the applicable Borrower of such business or assets).

"<u>Indebtedness</u>" of any Person means, without duplication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)all obligations of such Person for borrowed money or advances and all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the principal component of all obligations, contingent or otherwise, relative to the face amount of all letters of credit, whether or not drawn, and banker's acceptances issued for the account of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)all Hedging Obligations of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)whether or not so included as liabilities in accordance with GAAP, all obligations of another Person secured by any Lien on any property or assets owned or held by that Person regardless of whether the obligations secured thereby shall have been assumed by that Person or is nonrecourse to the credit of that Person; <u>provided</u> that the amount of any Indebtedness of others that constitutes Indebtedness of such Person solely by reason of this <u>clause[(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall, in the event that such Indebtedness is limited recourse to such property (without recourse to such Person), for purposes of this Agreement, be equal to the lesser of the amount of such obligation and the fair market value of the property or assets to which the Lien attaches, determined in good faith by such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)whether or not so included as liabilities in accordance with GAAP, all obligations of such Person to pay the deferred purchase price of property or services (excluding trade accounts payable in the ordinary course of business which are not overdue for a period of more than ninety (90) days or, if overdue for more than ninety (90) days, as to which a dispute exists and adequate reserves in conformity with GAAP have been established on the books of such Person);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)obligations arising under Synthetic Leases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Redeemable Capital Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)all Contingent Liabilities of such Person in respect of any of the foregoing.

The Indebtedness of any Person shall include the Indebtedness of any other Person (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person's ownership interest in or other relationship with such

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Person, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

"<u>Indemnified Liabilities</u>" is defined in <u>Section 11.4</u>.

"<u>Indemnified Parties</u>" is defined in <u>Section 11.4</u>.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of a Borrower under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

"<u>Independent Consultants</u>" means the Independent Engineer, the Insurance Consultant, the Subsurface Consultant, the Transmission Consultant and the Environmental Consultants.

"<u>Independent Engineer</u>" means Black & Veatch Management Consulting, LLC.

"<u>Independent Engineer Report</u>" means the Technical Due Diligence Report for Cape Station Phase I Geothermal Project dated as of January 7, 2026, issued by the Independent Engineer.

"<u>Independent Public Accountants</u>" means Deloitte & Touche LLC and any other nationally recognized firm of independent public accountants reasonably acceptable to the Administrative Agent.

"<u>Initial Borrowing Date</u>" means the date on which each of the conditions specified in <u>[Section 5.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>are initially satisfied (or waived in accordance with <u>Section 11.1</u>).

"<u>Insurance Consultant</u>" means Mandy McNeil International Limited.

"<u>Insurance Consultant Report</u>" means the Insurance Report on Cape Station Phase I, issued as of March 6, 2026, prepared by the Insurance Consultant.

"<u>Interconnection Agreement</u>" means the contracts listed under the heading "Interconnection Agreement" in <u>Schedule V</u>.

"<u>Interconnection Counterparty</u>" means the Material Project Party party to the Interconnection Agreement.

"<u>Interest Rate Hedge Agreements</u>" means any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate floor agreement, interest rate option agreement or interest rate hedging agreement or other similar agreement or arrangement (including any combination of the foregoing), each of which is for the purpose of hedging the interest rate exposure associated with the Borrowers' operations and not for speculative purposes.

"<u>Intermediate HoldCo</u>" means Cape Phase I Intermediate HoldCo LLC, a Delaware limited liability company.

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"<u>International Trade Laws</u>" means all export control, import, customs and trade, and anti-boycott laws and regulations, including (i) the Tariff Act of 1930, as amended, and other laws and regulations administered and enforced by U.S. Customs and Border Protection, (ii) the Export Administration Regulations administered by the Bureau of Industry and Security of the U.S. Department of Commerce, (iii) the International Traffic in Arms Regulations administered by the U.S. Department of State, and (iv) the anti-boycott laws and regulations administered by the U.S. Department of Commerce and the U.S. Department of the Treasury.

"<u>Investment</u>" means, relative to any Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)any loan, advance or extension of credit (excluding any extensions of credit made in connection with sales by any Loan Party in the ordinary course of business) made by such Person to any other Person, including the purchase by such Person of any bonds, notes, debentures or other debt securities of any other Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)any Capital Securities acquired by such Person in any other Person.

The amount of any Investment shall be the original principal or capital amount thereof less all returns of principal or equity thereon and shall, if made by the transfer or exchange of property other than cash, be deemed to have been made in an original principal or capital amount equal to the fair market value of such property at the time of such Investment.

"<u>Investment Grade Rating</u>" means, in respect of any Person, that such Person has a Credit Rating of at least BBB- by S&P or Fitch and at least Baa3 by Moody's, or the equivalent of the foregoing if the Rating Agency is any other Rating Agency.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>ISP Rules</u>" is defined in <u>Section 11.9</u>.

"<u>Issuance Request</u>" means a Letter of Credit request and certificate duly executed by an Authorized Officer of the applicable Borrower, substantially in the form of <u>Exhibit B-2</u>.

"<u>ITC</u>" means the investment tax credit provided for by and within the meaning of Section 48 of the Code or any successor to such section.

"<u>ITC Loss Insurance Policy</u>" means a tax liability insurance policy in respect of the ITCs to be claimed with respect to the WellCo Facilities, in form and substance reasonably satisfactory to the TRABL Lenders.

"<u>ITC Transfer</u>" means a transfer of all or a portion of the ITCs with respect to the WellCo Facilities from the WellCo Borrower to an ITC Transferee pursuant to Section 6418 of the Code.

"<u>ITC Transfer Agreement</u>" means an ITC Transfer agreement, in form and substance reasonably satisfactory to the TRABL Lenders (other than with respect to the Proposed Tax Credit Transferee and the applicable Expected Tax Credit Purchase Price aspects thereof, which are hereby deemed reasonably satisfactory).

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"<u>ITC Transfer Effective Date</u>" means the date of execution of the ITC Transfer Agreement.

"<u>ITC Transfer Funding Date</u>" means the date on which the ITC Transfer Proceeds are received by or on behalf of the WellCo Borrower.

"<u>ITC Transferee</u>" means the purchaser of ITCs with respect to the WellCo Facilities pursuant to the ITC Transfer Agreement.

"<u>ITC Transferee Consent</u>" means the Consent and Agreement, to be executed by and among the WellCo Borrower, the ITC Transferee and the Collateral Agent in connection with the ITC Transfer Agreement, in form and substance reasonably satisfactory to the TRABL Lenders.

"<u>ITC Transfer Proceeds</u>" means, with respect to the ITC Transfer Agreement, the payment to WellCo Borrower by the ITC Transferee pursuant to the ITC Transfer Agreement.

"<u>Key Project Documents</u>" means each of (a) the Engineering, Procurement and Construction Agreement between Expanse Electrical Company, LLC and Cape TransCo LLC, dated as of December 16, 2024, (b) the Management Services Agreement between FEC E&P Management LLC and Sponsor, dated as of August 13, 2024 and (c) the EDR Leases.

"<u>LC Cash Collateral Account</u>" is defined in the definition of "Cash Collateralize."

"<u>LC Issuer</u>" means a Material Construction Contract LC Issuer, a DSR LC Issuer, an SCE PPA LC Issuer or a Shell PPA LC Issuer, as the context may require.

"<u>LC Issuing Commitments</u>" means the Material Construction Contract LC Issuing Commitments, the DSR LC Issuing Commitments, the SCE PPA LC Issuing Commitments, or the Shell PPA LC Issuing Commitments, as the context may require.

"<u>LC Loan</u>" is defined in <u>Section 2.6.3(b)</u>.

"<u>LC Loan Commitment Termination Date</u>" means the Material Construction Contract LC Loan Commitment Termination Date, the DSR LC Loan Commitment Termination Date, the SCE PPA LC Loan Commitment Termination Date, or the Shell PPA LC Loan Commitment Termination Date, as the context may require.

"<u>LC Loan Commitments</u>" means the Material Construction Contract LC Loan Commitments, the DSR LC Loan Commitments, the SCE PPA LC Loan Commitments, or the Shell PPA LC Loan Commitments, as the context may require.

"<u>LC Loan Lender</u>" means a Material Construction Contract LC Loan Lender, DSR LC Loan Lender, SCE PPA LC Loan Lender or Shell PPA LC Loan Lender, as the context may require.

"<u>LC Loan Maturity Date</u>" means the Material Construction Contract LC Loan Maturity Date, the DSR LC Loan Maturity Date, the SCE PPA LC Loan Maturity Date or the Shell PPA LC Loan Maturity Date, as the context may require.

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"<u>LC Percentage</u>" means any LC Loan Lender's DSR LC Percentage, Material Construction Contract LC Percentage, SCE PPA LC Percentage or Shell PPA LC Percentage, as the context may require.

"<u>LC Tranche</u>" means any DSR LC Tranche, Material Construction Contract LC Tranche, SCE PPA LC Tranche or Shell PPA LC Tranche, as the context may require.

"<u>Lender Assignment Agreement</u>" means an assignment and assumption agreement substantially in the form of <u>Exhibit D</u>.

"<u>Lender Group</u>" is defined in <u>Section 11.21</u>.

"<u>Lenders</u>" is defined in the <u>preamble</u> and includes each Construction Loan Lender, Term Loan Lender, each TRABL Lender, each Material Construction Contract LC Loan Lender, each DSR LC Loan Lender, each SCE PPA LC Loan Lender, each Shell PPA LC Loan Lender and any Person that becomes one of them pursuant to <u>Section 11.11</u>.

"<u>Letter of Credit</u>" means a Material Construction Contract Letter of Credit, a DSR Letter of Credit, an SCE PPA Letter of Credit or a Shell PPA Letter of Credit, as the context may require.

"<u>Letter of Credit Application</u>" means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by an LC Issuer.

"<u>Lien</u>" means any mortgage, deed of trust, pledge, security interest, hypothecation, collateral assignment, deposit arrangement, lien (statutory or other) or similar encumbrance of any kind or nature whatsoever, and any easement, right-of-way, license, restriction (including zoning restrictions), defect, exception or irregularity in title or similar charge or encumbrance of any kind whatsoever, including in each case any agreement to give any of the foregoing, any conditional sale or other title retention agreement or any lease in the nature thereof.

"<u>Loan Documents</u>" means, collectively, this Agreement, the Depositary Agreement, the Letters of Credit, the Notes, the Security Documents, each Consent to Collateral Assignment, the ITC Transferee Consent, the PTC Transferee Consent, the Secured Interest Rate Hedge Agreements, the Fee Letters, the Equity Commitment Letter, the Sponsor Guaranty and any other agreement, document or instrument delivered in connection with any of the foregoing and executed by a Loan Party, which is specifically designated therein to be a "<u>Loan Document</u>."

"<u>Loan Parties</u>" means, collectively, the Borrowers and the Subsidiary Guarantors.

"<u>Loans</u>" means, as the context may require, a Material Construction Contract LC Loan, a TRABL Loan, a DSR LC Loan, an SCE PPA LC Loan, a Shell PPA LC Loan, a Construction Loan or a Term Loan.

"<u>Long-Term Service Agreement</u>" means the contract listed under the heading "Long-Term Service Agreement" in <u>Schedule V</u>.

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"<u>Long Term Servicer</u>" means Material Project Party party to the Long-Term Service Agreement.

"<u>Maintenance and Drilling Expenses</u>" means, collectively, the expenditures the Loan Parties expect to incur in respect the works identified in any Maintenance and Drilling Projection.

"<u>Maintenance and Drilling Projection</u>" means a projection setting forth (a) the major maintenance of the geothermal wells, gathering systems and power plant, (b) the drilling of Make-Up Wells (including injection wells), (c) the workovers of geothermal wells, and (d) well completions, equipping and tie-ins, in each case, which the Borrowers expect to undertake or procure in connection with the Project during at least the four (4) years following the date of such projection.

"<u>Major Maintenance Reserve Account</u>" is defined in the Depositary Agreement.

"<u>Make-Up Well</u>" means any well drilled for the purposes of making up any shortfall of production or injection capacity in respect of the Project.

"<u>Material Adverse Effect</u>" means a material adverse change in, or material adverse effect on, (a) the business, assets, properties, operations or condition (financial or otherwise) of the Loan Parties, taken as a whole, (b) the ability of the Loan Parties, taken as a whole, to fully and timely perform the Obligations or (c) the rights or remedies of the Administrative Agent, the Collateral Agent, the Depositary Bank, any LC Issuer or any Lender under any Loan Document.

"<u>Material Construction Contract</u>" means each of the contracts listed under the heading "Material Construction Contract" in <u>Schedule V</u>.

"<u>Material Construction Contract LC Commitments</u>" means the Material Construction Contract LC Loan Commitments and the Material Construction Contract LC Issuing Commitments.

"<u>Material Construction Contract LC Facility</u>" means the Material Construction Contract LC Loan Commitments and the Material Construction Contract LC Loans made hereunder.

"<u>Material Construction Contract LC Issuer</u>" means the Persons listed under the heading "Material Construction Contract LC Issuing Commitments" on <u>Schedule II</u>, each in its capacity as an issuer of a Material Construction Contract Letter of Credit in respect of the applicable Material Construction Contract LC Tranche. In the event that there is more than one Material Construction Contract LC Issuer at any time, references herein and in the other Loan Documents to the Material Construction Contract LC Issuer shall be deemed to refer to the Material Construction Contract LC Issuer in respect of the applicable Material Construction Contract Letter of Credit or to all Material Construction Contract LC Issuers, as the context requires.

"<u>Material Construction Contract LC Issuing Commitment</u>" means a Material Construction Contract LC Issuer's obligation to issue a Material Construction Contract Letter of Credit pursuant to <u>Section 2.1.4(a)</u> and "<u>Material Construction Contract LC Issuing</u> <u>Commitments</u>" means such commitments of all Material Construction Contract LC Issuers. The

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amount of each Material Construction Contract LC Issuer's Material Construction Contract LC Issuing Commitment in respect of the applicable Material Construction Contract LC Tranche is set forth on <u>Schedule II</u>, subject to any assignment, adjustment or reduction pursuant to the terms and conditions hereof.

"<u>Material Construction Contract LC Issuing Commitment Amount</u>" means, on any date, a maximum amount of ($10,000,000), as such amount may be permanently reduced from time to time pursuant to <u>Section 2.2</u>.

"<u>Material Construction Contract LC Loan</u>" means an LC Loan advanced in respect of a Disbursement under a Material Construction Contract Letter of Credit pursuant to <u>Section</u> <u>2.6.3(b)</u>.

"<u>Material Construction Contract LC Loan Commitment</u>" means, as the context may require, relative to any Lender, such Lender's obligation (if any) to make Material Construction Contract LC Loans pursuant to <u>Section 2.1.4(a)</u> and the obligation of each Material Construction Contract LC Loan Lender to participate in the Material Construction Contract Letter of Credit under the Material Construction Contract LC Tranche in which it is a participant hereunder, as applicable, and "<u>Material Construction Contract LC Loan Commitments</u>" means such commitments of all Lenders. The amount of each Lender's Material Construction Contract LC Loan Commitment, if any, in respect of the Material Construction Contract LC Tranche is set forth in each case on <u>Schedule II</u> with respect to the applicable Material Construction Contract LC Tranche or in the applicable Lender Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the Material Construction Contract LC Loan Commitments shall not exceed the Material Construction Contract LC Loan Commitment Amount.

"<u>Material Construction Contract LC Loan Commitment Amount</u>" means, on any date, $10,000,000, as such amount may be reduced from time to time pursuant to <u>Section 2.2</u> or <u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>provided</u> that the aggregate Material Construction Contract LC Loan Commitment Amount shall not exceed the Material Construction Contract LC Issuing Commitment Amount.

"<u>Material Construction Contract LC Loan Commitment Termination Date</u>" means the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Material Construction Contract LC Loan Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the date on which the Material Construction Contract LC Loan Commitment Amount is terminated in full or permanently reduced to zero pursuant to the terms of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the date on which any Commitment Termination Event occurs.

Upon the occurrence of any event described above, the Material Construction Contract LC Loan Commitments shall terminate automatically and without any further action.

"<u>Material Construction Contract LC Loan Exposure</u>" means, as of any date of determination with respect to a Material Construction Contract LC Loan Lender, (a) prior to the

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termination of the Material Construction Contract LC Loan Commitments, the sum of (i) the Available Material Construction Contract LC Loan Commitments of such Material Construction Contract LC Loan Lender, (ii) all Material Construction Contract LC Outstandings of such Material Construction Contract LC Loan Lender, and (iii) the aggregate outstanding principal amount of all Material Construction Contract LC Loans of such Material Construction Contract LC Loan Lender, and (b) after the termination of the Material Construction Contract LC Loan Commitments, the sum of (i) the aggregate outstanding principal amount of all Material Construction Contract LC Loans of such Material Construction Contract LC Loan Lender and (ii) all Material Construction Contract LC Outstandings of such Material Construction Contract LC Loan Lender.

"<u>Material Construction Contract LC Loan Lender</u>" means each Lender that has a Material Construction Contract LC Loan Commitment.

"<u>Material Construction Contract LC Loan Maturity Date</u>" means the earlier to occur of (a) the Conversion Date and (b) the Construction Loan Maturity Date.

"<u>Material Construction Contract LC Loan Percentage</u>" means with respect to all payments, computations and other matters relating to the Material Construction Contract LC Loan Commitment or Material Construction Contract LC Loans of any Material Construction Contract LC Loan Lender or the Material Construction Contract Letter of Credit issued or participations acquired therein by any Material Construction Contract LC Loan Lender at any time, the percentage obtained by dividing (a) the Material Construction Contract LC Loan Exposure of that Material Construction Contract LC Loan Lender by (b) the aggregate Material Construction Contract LC Loan Exposure of all Material Construction Contract LC Loan Lenders at such time.

"<u>Material Construction Contract LC Note</u>" means a promissory note of the applicable Borrower payable to any Lender, in the form of <u>Exhibit A-3</u> hereto (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the applicable Borrower to such Lender resulting from outstanding Material Construction Contract LC Loans and also means all other promissory notes accepted from time to time in substitution therefor or renewal thereof.

"<u>Material Construction Contract LC Outstandings</u>" means, at any time of determination, the sum of (a) the Stated Amount of the issued and outstanding Material Construction Contract Letter of Credit <u>plus</u> (b) all outstanding and unreimbursed Reimbursement Obligations and, as to each Material Construction Contract LC Loan Lender, such Lender's share of the Material Construction Contract LC Outstandings.

"<u>Material Construction Contract LC Percentage</u>" means, as to any Material Construction Contract LC Loan Lender at any given time, the percentage which such Lender's Material Construction Contract LC Loan Commitment under the Material Construction Contract LC Tranche in which it is a participant then constitutes of the aggregate Material Construction Contract LC Loan Commitment under such Material Construction Contract LC Tranche.

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"<u>Material Construction Contract LC Tranche</u>" means each Material Construction Contract LC Issuer's Material Construction Contract LC Issuing Commitment and the applicable Material Construction Contract LC Loan Lender's Material Construction Contract LC Loan Commitment in respect of such Material Construction Contract LC Issuing Commitment, as the context may require.

"<u>Material Construction Contract Letter of Credit</u>" is defined in <u>Section 2.1.4(a)(i)</u>.

"<u>Material Equipment Supply Contracts</u>" means each of the contracts listed under the heading "Material Equipment Supply Contracts" in <u>Schedule V</u>.

"<u>Material Non-Public Information</u>" means information that is (a) of the type that would not be publicly available if the applicable Borrower were a public reporting company and (b) material with respect to the Obligors or any of their respective securities for purposes of foreign, United States Federal and state securities laws.

"<u>Material Project Documents</u>" means each of (a) the Interconnection Agreement, (b) the Power Purchase Agreements, (c) the Material Construction Contract, (d) the Material Equipment Supply Contracts, (e) the O&M Agreement, (f) the Long-Term Service Agreement, (g) the ITC Transfer Agreement, (h) the PTC Transfer Agreement, (i) the Transmission Service Agreements, (j) the Generator Injection Rights Agreement; (k) the Real Property Documents, (l) the UODA, (m) the GSSAs, (n) the Shared Facilities Agreement, (o) the Development Agreement, (p) the Additional Project Documents and (q) the Replacement Material Project Documents; <u>provided</u> that, any such Material Project Document shall cease to be a Material Project Document when all material obligations under such Material Project Document have been indefeasibly performed and/or paid in full and all warranty periods, if applicable, have expired.

"<u>Material Project Party</u>" means each party (other than any Loan Party) to a Material Project Document and each guarantor in respect of any such party's obligations under such Material Project Document.

"<u>MBR Authority</u>" means authorization granted by FERC pursuant to Section 205 of the FPA to sell wholesale electric energy, capacity and/or certain ancillary services at negotiated rates pursuant to a tariff filed with FERC providing for such sales, and such regulatory waivers and blanket authorizations as are customarily granted by FERC to companies authorized to sell electric energy, capacity and ancillary services at market-based rates, including blanket authorization to issue securities and assume liabilities pursuant to Section 204 of the FPA; provided that such order from FERC shall be deemed to be final and non-appealable upon issuance in the event that no third party intervenes in the proceeding.

"<u>Measurement Period</u>" means, as of any date of determination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;for the purpose of determining the Debt Service Coverage Ratio for the first four (4) Quarterly Payment Dates after the Conversion Date, the period commencing on the Conversion Date and ending on such Quarterly Payment Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;for all other purposes, means each period of four consecutive Fiscal Quarters, taken as one accounting period.

 46 *Project Granite – Credit Agreement*

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"<u>Minimum Equity Requirement</u>" means an amount equal to the greater of (a) twenty-five percent (25%) of the total estimated Total Project Costs set forth in the Borrower Model as of the Closing Date and (b) the amount equal to the Total Project Costs projected to be required to achieve Substantial Completion as of the applicable calculation date *minus* the aggregate Commitments.

"<u>Moody's</u>" means Moody's Investors Service, Inc. or its successor.

"<u>Mortgaged Property</u>" means the real property described in the Mortgages.

"<u>Mortgages</u>" means (a) that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement, and Fixture Filing between CGS 3, as grantor, and the Collateral Agent, as beneficiary, (b) that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement, and Fixture Filing between CGS 5, as grantor, and the Collateral Agent, as beneficiary; and (c) that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement, and Fixture Filing between the WellCo Borrower, as grantor, and the Collateral Agent, as beneficiary, in each case, to be executed as of the date of the second Credit Extension, in the form of <u>Exhibits</u> <u>X-1</u> through <u>X-3</u> respectively.

"<u>Multiemployer Plan</u>" means a "multiemployer plan" within the meaning of Section 4001(a)(3) or Section 3(37) of ERISA (a) to which any Loan Party or any member of its Controlled Group is then making or accruing an obligation to make contributions; (b) to which any Loan Party or any member of its Controlled Group has within the preceding five plan years made contributions and with respect to which such Loan Party would incur liability; or (c) with respect to which any Loan Party could reasonably be expected to incur liability.

"<u>NAIC</u>" means the National Association of Insurance Commissioners.

"<u>NERC</u>" means the North American Electric Reliability Corporation or any successor certified by FERC as the electric reliability organization for the United States, and any regional entity exercising delegated authority thereunder.

"<u>Net Casualty Proceeds</u>" means, with respect to any Casualty Event, Title Event or Event of Loss, the cash amount of any insurance proceeds under any casualty insurance policy (other than any insurance proceeds in respect of or arising under any casualty insurance policy relating to liability, business interruption or Forced Outage) or title insurance policy or condemnation awards received by any Loan Party in connection therewith, but excluding any proceeds or awards required to be paid to a creditor (other than the Lenders) which holds a Lien on the property which is the subject of such Casualty Event, Title Event or Event of Loss which Lien (a) is a Permitted Lien and (b) has priority over the Liens securing the Obligations, <u>less</u> amounts expended by such Loan Party on legal, accounting and other professional fees, expenses and charges incurred in connection with collecting such insurance proceeds or condemnation awards.

"<u>Net Debt Proceeds</u>" means with respect to the incurrence, sale or issuance by any Loan Party of any Indebtedness (other than any Permitted Indebtedness permitted by<u>[Section 8.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1), the <u>excess</u> of:

 47 *Project Granite – Credit Agreement*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the gross cash proceeds received by such Person from such incurrence, sale or issuance (including any proceeds received as a result of unwinding any related Interest Rate Hedge Agreement in connection with such related transaction),

*less*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)all reasonable and customary underwriting commissions and legal, investment banking, brokerage and accounting and other professional fees, sales commissions and disbursements and all other reasonable fees, expenses and charges, in each case actually incurred in connection with such incurrence, sale or issuance.

"<u>Net Disposition Proceeds</u>" means, with respect to any Disposition of any assets or property of any Loan Party (other than as permitted by <u>Sections[8.9(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[(f)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[(g)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1), the excess of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the gross cash proceeds received by such Loan Party from any such Disposition and any cash payments when received in respect of promissory notes or other non-cash consideration delivered to such Loan Party in respect thereof,

*less*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the sum of (i) all reasonable and documented fees and expenses with respect to legal, investment banking, brokerage and accounting and other professional fees, sales commissions and disbursements and all other reasonable fees, expenses and charges, in each case actually incurred in connection with such Disposition, (ii) all Taxes and other governmental costs and expenses actually paid or estimated by the applicable Borrower (in good faith) to be payable in cash in connection with such Disposition, (iii) payments made by any Loan Party to retire Indebtedness (other than the Credit Extensions) where payment of such Indebtedness is required in connection with such Disposition, (iv) reserves for purchase price adjustments and retained fixed liabilities that are payable by such Loan Party in cash to the extent required under GAAP in connection with such Disposition and (v) a reasonable reserve or escrow amount determined by an Authorized Financial Officer of the applicable Borrower in his or her reasonable business judgment and to the extent required under the applicable purchase agreement, in each case, for any purchase price adjustments (including working capital adjustments or adjustments attributable to seller's indemnities and representations and warranties to purchaser in respect of such asset sale) expressly contemplated by the purchase agreement relating to such asset sale;

<u>provided</u>, <u>however</u>, that if, after the payment of all Taxes, purchase price adjustments and retained fixed liabilities with respect to such Disposition, the amount of estimated Taxes, purchase price adjustments, and retained fixed liabilities, if any, pursuant to <u>clause (b)(ii)</u> or <u>(b)(iv)</u> above exceeded the amount of Taxes, purchase price adjustments, and retained fixed liabilities amount actually paid in cash in respect of such Disposition, the aggregate amount of such excess shall, at such time, constitute Net Disposition Proceeds.

"<u>NFIP</u>" is defined in <u>Section 5.1.31</u>.

 48 *Project Granite – Credit Agreement*

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"<u>Non-Defaulting Lender</u>" means, at any time, each Lender that is not a Defaulting Lender at such time.

"<u>Non-ECP Guarantor</u>" means any guarantor or grantor that, at the time such guarantor becomes obligated to pay or perform, or such grantor's grant of any Lien becomes effective in respect of any Swap Obligation, does not constitute an "eligible contract participant" as defined in the Commodity Exchange Act and the regulations thereunder.

"<u>Non-ECP Swap Obligation</u>" means, with respect to any Non-ECP Guarantor, any obligation of such Non-ECP Guarantor to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of Section 1a(47) of the Commodity Exchange Act and regulations thereunder.

"<u>Non-Recourse Persons</u>" is defined in <u>Section 11.19</u>.

"<u>Non-U.S. Lender</u>" means a Lender that is not a U.S. Person.

"<u>Note</u>" means, as the context may require, a DSR LC Note, a Material Construction Contract LC Note, a Shell PPA LC Note, an SCE PPA LC Note, a TRABL Loan Note, a Construction Loan Note or a Term Loan Note.

"<u>O&M Agreement</u>" means the Operation and Maintenance Agreement among the Subsidiary Guarantors, and Cape TransCo LLC and the O&M Provider, effective as of May 28, 2025.

"<u>O&M Provider</u>" means FEC Operations LLC, a Delaware limited liability company.

"<u>Obligations</u>" means all obligations (monetary or otherwise, whether absolute or contingent, matured or unmatured) of each Loan Party arising under or in connection with a Loan Document, and interest (including interest accruing during the pendency of any proceeding of the type described in<u>[Section 9.1.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) whether or not allowed in such proceeding) on the Loans, all Reimbursement Obligations, any obligations of the Borrowers in respect of Erroneous Payment Subrogation Rights, and any Hedging Obligations and other obligations of the Borrowers arising under the Secured Interest Rate Hedge Agreements.

"<u>Obligor</u>" means, as the context may require, the Pledgors and the Loan Parties.

"<u>Operating Account</u>" is defined in the Depositary Agreement.

"<u>Operating Budget</u>" is defined in<u>[Section 7.1(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Operation and Maintenance Expenses</u>" is defined in the Depositary Agreement.

"<u>Organic Document</u>" means, relative to any Person, as applicable, its certificate of incorporation, by laws, certificate of partnership, partnership agreement, certificate of formation, limited liability agreement and all shareholder agreements, voting trusts and similar arrangements applicable to any of such Person's partnership interests, limited liability company interests or authorized shares of Capital Securities.

 49 *Project Granite – Credit Agreement*

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"<u>Other Connection Taxes</u>" means, with respect to a Credit Party, Taxes imposed as a result of a present or former connection between a Credit Party and the jurisdiction imposing such Tax (other than connections arising from such Credit Party having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to, or enforced any Loan Document, or sold or assigned an interest in any Loan, Letter of Credit or Loan Document).

"<u>Other Person</u>" is defined in the definition of "Subsidiary".

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to<u>[Section 4.11](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1).

"<u>P90 Production Forecast</u>" means the annual energy production level of the Project that has a probability of exceedance of ninety percent (90%) over a one-year average of forecast conditions, according to the energy production forecasts set forth in the Borrower Model or Conversion Date Borrower Model (and any update in respect thereof).

"<u>Part A Permits</u>" is defined in<u>[Section 6.22(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Part B Permits</u>" is defined in<u>[Section 6.22(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Participant</u>" is defined in <u>Section 11.11(d)</u>.

"<u>Participant Register</u>" is defined in <u>Section 11.11(e)</u>.

"<u>PATRIOT Act</u>" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended or otherwise modified from time to time.

"<u>PATRIOT Act Disclosures</u>" means all documentation and other information required by regulatory authorities under applicable "know-your-customer" rules and Anti-Money Laundering Laws, including without limitation the PATRIOT Act.

"<u>Payment Recipient</u>" is defined in <u>Section 10.15(a)</u>.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

"<u>Pension Plan</u>" means any "employee pension benefit plan" (as defined in Section 3(2) of ERISA) (other than a Multiemployer Plan) that is subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and to which any Loan Party or any member of its Controlled Group could reasonably be expected to have liability, including any

 50 *Project Granite – Credit Agreement*

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liability by reason of having been a "substantial employer" within the meaning of Section 4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be a "contributing sponsor" under Section 4069 of ERISA.

"<u>Percentage</u>" means, as the context may require, any Lender's DSR LC Loan Percentage, Material Construction Contract LC Loan Percentage, Shell PPA LC Loan Percentage, SCE PPA LC Loan Percentage, TRABL Percentage, Construction Loan Percentage or Term Loan Percentage.

"<u>Performance Tests</u>" means the performance tests specified in <u>Schedule IX</u>.

"<u>Permit</u>" means any permit, authorization, registration, consent, approval, waiver, exception, variance, order, license, exemption, and declaration of or with, or required by, any Governmental Authority for the ownership, development, construction, installation, maintenance and operation of a Project.

"<u>Permitted Indebtedness</u>" is defined in<u>[Section 8.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Permitted Lien</u>" is defined in<u>[Section 8.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Permitted Tax Distributions</u>" means any distribution made by a Borrower to its equity holders in an amount which is sufficient to permit its direct or indirect equity holders to pay all federal, state and local income taxes (or franchise taxes imposed in lieu of income taxes) which arise solely and directly as a result of their direct or indirect ownership interest in such Borrower or another Subsidiary, in an aggregate annual amount not to exceed $5,000,000.

"<u>Person</u>" means any natural person, corporation, limited liability company, partnership, joint venture, association, cooperative, trust or unincorporated organization, Governmental Authority or any other legal entity, whether acting in an individual, fiduciary or other capacity.

"<u>Placed in Service</u>" shall mean that the applicable facilities have been placed in service for U.S. federal income tax purposes.

"<u>Placed in Service Date</u>" means the date on which the applicable facility is Placed in Service.

"<u>Plan</u>" means any employee benefit plan within the meaning of Section 3(3) of ERISA, maintained for employees of a Loan Party, or any such plan to which a Loan Party is required to contribute on behalf of any of its employees or with respect to which a Loan Party has any liability.

"<u>Platform</u>" is defined in <u>Section 10.12(b)</u>.

"<u>Pledgors</u>" means (a) the Cape Phase I Pledgor and (b) WellCo Pledgor.

"<u>Power Purchase Agreements</u>" means each of the contracts listed under the heading "Power Purchase Agreements" in <u>Schedule V</u>.

 51 *Project Granite – Credit Agreement*

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"<u>Power Purchasers</u>" means each of (a) Shell Energy North America (US), L.P. and (b) Southern California Edison Company.

"<u>Prior GAAP Financials</u>" is defined in <u>Section 1.4(b)</u>.

"<u>Pro Forma Balance Sheet</u>" is defined in <u>Section 6.14(b)</u>.

"<u>Project</u>" means the approximately 93 MW enhanced geothermal power generation facility, and geothermal wellfield assets with associated delivery systems, to be located in Millard and Beaver Counties, Utah and owned or leased by the Loan Parties, together with all auxiliary equipment, ancillary and associated facilities and equipment, electrical transformers and electrical interconnection and metering facilities (whether owned or leased) used for the delivery of the electrical output of said geothermal power generation facility, and all other improvements related to the ownership, construction, operation and maintenance of said geothermal power generation facility and associated equipment.

"<u>Project Assets</u>" means all property, rights and assets of each Subsidiary Guarantor and the Borrowers, whether real or personal and whether tangible or intangible, including the Project, the Project site, the Part A Permits, the Part B Permits and the Project Documents.

"<u>Project Companies</u>" means (a) Cape Generating Station 3 LLC, a Delaware limited liability company ("<u>CGS 3</u>"), and (b) Cape Generating Station 5 LLC, a Delaware limited liability company ("<u>CGS 5</u>").

"<u>Project Document Claim</u>" means any payment under any Material Project Document to any Loan Party in respect of liquidated damages for performance or performance guarantees, to the extent not required to be applied by a Loan Party to pay any corresponding liquidated damages payable under another Material Project Document, as applicable, due to the applicable Major Project Party's failure to meet the relevant performance obligations or performance guarantees under the first Material Project Document, as applicable, excluding any delay liquidated damages.

"<u>Project Documents</u>" means the Material Project Documents and each other written contract or agreement related to the Development of the Project, entered into by a Loan Party and any other Person, or assigned to a Loan Party; <u>provided</u> that, any such Project Document shall cease to be a Project Document when all material obligations under such Project Document have been indefeasibly performed and/or paid in full and all warranty periods, if applicable, have expired.

"<u>Projections</u>" is defined in <u>Section[6.14(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Proposed Change in Tax Law</u>" means (a) any proposed change in, or amendment to, the Code or another U.S. federal income tax statute or other tax legislation that, (i) is passed by either chamber of the United States Congress, or (ii) reported out of the House Ways and Means Committee or the Senate Finance Committee, (iii) is in a bill or mark reported, released or discharged by either the House Ways and Means Committee (or the Chairman thereof) or the Senate Finance Committee (or the Chairman thereof) or leadership bill, (b) proposed Treasury Regulations (taking into account the proposed effective date), or (c) included in an official

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proposal related to U.S. federal income tax legislation released by the Administration, such as the General Explanations of the Administration's Fiscal Year Revenue Proposals, a proposed budget, or other detailed and substantive proposal delivered through official channels; that in the case of a statutory change or administrative proposal is reasonably likely to be enacted into law; and that if enacted would be a Change in Tax Law.

"<u>Proposed Tax Credit Transferee</u>" means Liberty Mutual Insurance Company, a Massachusetts corporation.

"<u>Prudent Industry Practices</u>" means any of the practices, methods and acts engaged in or approved by a significant portion of the geothermal industry in the United States during the relevant time period, with respect to projects that are similar in size and type to the Project, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, sound engineering practices, reliability, safety and expedition. "Prudent Industry Practices" is not intended to be limited to the optimum practice, method or act to the exclusion of all others, but rather to be acceptable principles, methods and acts generally accepted in the United States, having due regard for, among other things, the requirements or guidance of Governmental Authorities, Applicable Laws, applicable interconnection operating guidelines and rules for the Project, transmission provider rules and the requirements of insurers.

"<u>PTC</u>" means the production tax credit provided for pursuant to Section 45 of the Code.

"<u>PTC Loss Insurance Policy</u>" means a tax liability insurance policy in respect of the PTCs to be generated by the GenCo Facilities, in form and substance reasonably satisfactory to the Construction Loan Lenders.

"<u>PTC Transfer</u>" means a transfer of all or a portion of the PTCs with respect to the GenCo Facilities from the Cape Phase I Pledgor to a PTC Transferee pursuant to Section 6418 of the Code.

"<u>PTC Transfer Agreement</u>" means a PTC Transfer agreement, in form and substance reasonably satisfactory to the Construction Loan Lenders (other than with respect to the Proposed Tax Credit Transferee and the applicable Expected Tax Credit Purchase Price aspects thereof, which are hereby deemed reasonably satisfactory).

"<u>PTC Transfer Funding Date</u>" means each date on which any or all PTC Transfer Proceeds are received by or on behalf of the Cape Phase I Pledgor.

"<u>PTC Transfer Proceeds</u>" means the payment by the PTC Transferee to Cape Phase I Pledgor pursuant to the PTC Transfer Agreement.

"<u>PTC Transferee</u>" means the purchaser of PTCs with respect to the GenCo Facilities pursuant to the PTC Transfer Agreement.

"<u>PTC Transferee Consent</u>" means the Consent and Agreement, to be executed by and among the Cape Phase I Pledgor, the PTC Transferee and the Collateral Agent in connection

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with the PTC Transfer Agreement, in form and substance reasonably satisfactory to the Construction Loan Lenders.

<u>"PTE</u>" shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>Public Lender</u>" is defined in <u>Section 10.12(e)</u>.

"<u>PUHCA</u>" means the Public Utility Holding Company Act of 2005, 42 U.S.C. §§ 16451 *et seq.*, and FERC's implementing regulations thereunder.

"<u>Punch List Reserve</u>" means the reserve contemplated in Section 3.01(b)(ii)(B) of the Depositary Agreement.

"<u>Punch List Reserve Required Amount</u>" means an amount equal to the remaining costs for the Project to reach Final Completion (or any equivalent term, as defined in the Material Construction Contract) or, solely to the extent that "Final Completion" (or an equivalent defined term) is not an applicable milestone under the Material Construction Contract, the remaining costs required for the Project to achieve final completion and close-out of the Project.

"<u>QFC</u>" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

"<u>QFC Credit Support</u>" is defined in <u>Section 11.24</u>.

"<u>Qualifying Facilities</u>" means a qualifying small power production facilities or qualifying cogeneration facilities pursuant to FERC's regulations in 18 C.F.R. Part 292.

"<u>Quarterly Operating Report</u>" is defined in<u>[Section 7.1(f)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Quarterly Payment Date</u>" means the last Business Day of March, June, September and December.

"<u>Rating Agency</u>" means (a) S&P, Fitch or Moody's or (b) any other rating agency that, at the time, is designated as a nationally recognized statistical rating organization by the U.S. Securities and Exchange Commission and has had its ratings accepted by the National Association of Insurance Commissioners in determining its equivalent rating designations for reporting and reserving purposes and that is acceptable to the Required Lenders (acting reasonably) and the Borrower.

"<u>Real Property Documents</u>" means each of the contracts listed under the heading "Real Property Documents" in <u>Schedule V</u>.

"<u>Redeemable Capital Securities</u>" means, with respect to any Person, Capital Securities of such Person that, either by their terms, by the terms of any security into which they are convertible or exchangeable or otherwise, (a) are, or upon the happening of an event or passage of time would be, required to be redeemed in whole or in part (except for consideration comprised of Capital Securities of such Person which are not Redeemable Capital Securities) on

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or prior to ninety (90) days after the latest Stated Maturity Date, (b) are redeemable in whole or in part at the option of the holder thereof (except for consideration comprised of Capital Securities of such Person which are not Redeemable Capital Securities) at any time prior to such date or (c) are convertible into or exchangeable (in whole or in part) for Indebtedness of such Person or any of its Subsidiaries at any time prior to such date.

"<u>Reduction Amount</u>" is defined in<u>[Section 3.1.4(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Register</u>" is defined in <u>Section 2.7(b)</u>.

"<u>Regulation H</u>" means Regulation H issued by the Board of Governors of the Federal Reserve System under 12 U.S.C. 24.

"<u>Reimbursement Obligation</u>" is defined in <u>Section 2.6.4</u>.

"<u>Release</u>" means, with respect to Hazardous Materials, any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching, migration or movement of any Hazardous Material into, upon or through the indoor or outdoor environment (including the abandonment, disposal or discarding of any barrels, containers or other receptacles containing any Hazardous Material).

"<u>Relevant Governmental Body</u>" means the Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Relevant Lenders</u>" is defined in <u>Section 10.2(e)</u>.

"<u>Replacement Lender</u>" is defined in<u>[Section 4.11](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Replacement Material Project Document</u>" means any contract entered into in replacement of an existing Material Project Document, (a) which has economic terms (including pricing, payment provisions and the term thereof) which are substantially no less favorable to the Loan Party thereto, as applicable, and substantially no less favorable non-economic terms (taken as a whole) as the Material Project Document being replaced, in each case, to the reasonable satisfaction of the Required Lenders or (b) which has terms reasonably acceptable to the Required Lenders.

"<u>Replacement Notice</u>" is defined in<u>[Section 4.11](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Required Audit Tail Insurance Reserve Amount</u>" is defined in the Depositary Agreement.

"<u>Required Insurance</u>" is defined in<u>[Section 7.5(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

"<u>Required Lenders</u>" means, at any time, Lenders holding more than fifty percent (50%) of the Total Exposure Amount; <u>provided</u> that, with respect to any Defaulting Lender, the Total Exposure Amount of such Defaulting Lender shall be disregarded; and <u>provided further</u> that, in no event shall the Required Lenders comprise fewer than two Lenders.

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"<u>Required Major Maintenance Reserve Amount</u>" is defined in <u>Exhibit H</u>.

"<u>Resolution Authority</u>" means (a) EEA Resolution Authority or (b) UK Resolution Authority.

"<u>Restricted Payment</u>" means (a) the declaration or payment of any dividend (other than dividends to be paid or in fact paid in Capital Securities of a Borrower or any of its Subsidiaries (other than Redeemable Capital Securities) or by an increase in the liquidation preference of any Capital Securities of a Borrower or any of its Subsidiaries) on, or the making of any payment or distribution on account of, or setting apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of any class of Capital Securities of any Borrower or any of its Subsidiaries or any warrants or options to purchase any such Capital Securities, whether now or hereafter outstanding, or the making of any other payment or distribution (other than in Capital Securities (other than Redeemable Capital Securities) of a Borrower or any of its Subsidiaries or by an increase in the liquidation preference of any Capital Securities of a Borrower or any of its Subsidiaries) in respect thereof, either directly or indirectly, whether in cash or property, obligations of any such Loan Parties or otherwise, (b) any management fee or similar payment (but not, for the avoidance of doubt, reimbursement of costs and expenses) payable to an Affiliate other than a Loan Party (other than payments to an Affiliate of the Loan Parties pursuant to the terms of a Material Project Document), and (c) any payments on Indebtedness owed to Affiliates of any Borrower that is subordinated to the Obligations.

"<u>Revenue</u>" is defined in the Depositary Agreement.

"<u>Revenue Account</u>" is defined in the Depositary Agreement.

"<u>S&P</u>" means Standard & Poor's Rating Services, a division of The McGraw-Hill Companies, Inc., or its successor.

"<u>Sanctioned Jurisdiction</u>" means a country, region or territory that is itself, or whose government is, the subject or the target of any comprehensive Sanctions (as of the date of this Agreement, Cuba, Iran, North Korea, Crimea, the so-called "Donetsk People's Republic," and the so-called "Luhansk People's Republic" regions of Ukraine).

"<u>Sanctioned Person</u>" means: (a) any Person listed in or a target of any relevant Sanctions- related list; (b) any Person domiciled, organized, or ordinarily resident in, or any Governmental Authority of, a Sanctioned Jurisdiction; (c) any Person owned or controlled, directly or indirectly, by any Person described in <u>clauses (a)</u> or <u>(b)</u> hereof.

"<u>Sanctions</u>" means any economic or financial sanctions or trade embargoes imposed, administered, or enforced from time to time by (a) the United States (including by the U.S. Department of State or the U.S. Department of the Treasury's Office of Foreign Assets Control), or (b) other applicable Governmental Authority that imposes or administers sanctions, including Japan, His Majesty's Treasury, the United Nations, and the European Union and the members states thereof.

"<u>SCE PPA</u>" means the contract listed under the heading "SCE PPA" in <u>Schedule V</u>.

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"<u>SCE PPA LC Commitments</u>" means the SCE PPA LC Loan Commitments and the SCE PPA LC Issuing Commitments.

"<u>SCE PPA LC Facility</u>" means the SCE PPA LC Loan Commitments and the SCE PPA LC Loans made hereunder.

"<u>SCE PPA LC Issuer</u>" means the Persons listed under the heading "SCE PPA LC Issuing Commitments" on <u>Schedule II</u>, each in its capacity as an issuer of a SCE PPA Letter of Credit in respect of the applicable SCE PPA LC Tranche. In the event that there is more than one SCE PPA LC Issuer at any time, references herein and in the other Loan Documents to the SCE PPA LC Issuer shall be deemed to refer to the SCE PPA LC Issuer in respect of the applicable SCE PPA Letter of Credit or to all SCE PPA LC Issuers, as the context requires.

"<u>SCE PPA LC Issuing Commitment</u>" means a SCE PPA LC Issuer's obligation to issue a SCE PPA Letter of Credit pursuant to <u>Section 2.1.4(a)</u> and "<u>SCE PPA LC Issuing</u> <u>Commitments</u>" means such commitments of all SCE PPA LC Issuers. The amount of each SCE PPA LC Issuer's SCE PPA LC Issuing Commitment in respect of the applicable SCE PPA LC Tranche is set forth on <u>Schedule II</u>, subject to any assignment, adjustment or reduction pursuant to the terms and conditions hereof.

"<u>SCE PPA LC Issuing Commitment Amount</u>" means, (a) prior to the Conversion Date, a maximum amount of $4,030,000.00, and (b) on and after the Conversion Date, a maximum amount of $3,100,000, as such amounts may be permanently reduced from time to time pursuant to <u>Section 2.2</u>.

"<u>SCE PPA LC Loan</u>" means an LC Loan advanced in respect of a Disbursement under a SCE PPA Letter of Credit pursuant to <u>Section 2.6.3(b)</u>.

"<u>SCE PPA LC Loan Commitment</u>" means, as the context may require, relative to any Lender, such Lender's obligation (if any) to make SCE PPA LC Loans pursuant to <u>Section</u> <u>2.1.4(a)</u> and the obligation of each SCE PPA LC Loan Lender to participate in the SCE PPA Letter of Credit under the SCE PPA LC Tranche in which it is a participant hereunder, as applicable, and "<u>SCE PPA LC Loan Commitments</u>" means such commitments of all Lenders. The amount of each Lender's SCE PPA LC Loan Commitment, if any, in respect of the SCE PPA LC Tranche is set forth in each case on <u>Schedule II</u> with respect to the applicable SCE PPA LC Tranche or in the applicable Lender Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the SCE PPA LC Loan Commitments shall not exceed the SCE PPA LC Loan Commitment Amount.

"<u>SCE PPA LC Loan Commitment Amount</u>" means, (a) prior to the Conversion Date, $4,030,000.00, and (b) on and after the Conversion Date, $3,100,000, as such amounts may be reduced from time to time pursuant to <u>Section 2.2</u> or<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>provided</u> that the aggregate SCE PPA LC Loan Commitment Amount shall not exceed the SCE PPA LC Issuing Commitment Amount.

"<u>SCE PPA LC Loan Commitment Termination Date</u>" means the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the SCE PPA LC Loan Maturity Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;the date on which the SCE PPA LC Loan Commitment Amount is terminated in full or permanently reduced to zero pursuant to the terms of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the date on which any Commitment Termination Event occurs.

Upon the occurrence of any event described above, the SCE PPA LC Loan Commitments shall terminate automatically and without any further action.

"<u>SCE PPA LC Loan Exposure</u>" means, as of any date of determination with respect to a SCE PPA LC Loan Lender, (a) prior to the termination of the SCE PPA LC Loan Commitments, the sum of (i) the Available SCE PPA LC Loan Commitments of such SCE PPA LC Loan Lender, (ii) all SCE PPA LC Outstandings of such SCE PPA LC Loan Lender, and (iii) the aggregate outstanding principal amount of all SCE PPA LC Loans of such SCE PPA LC Loan Lender, and (b) after the termination of the SCE PPA LC Loan Commitments, the sum of (i) the aggregate outstanding principal amount of all SCE PPA LC Loans of such SCE PPA LC Loan Lender and (ii) all SCE PPA LC Outstandings of such SCE PPA LC Loan Lender.

"<u>SCE PPA LC Loan Lender</u>" means each Lender that has a SCE PPA LC Loan Commitment.

"<u>SCE PPA LC Loan Maturity Date</u>" means the Term Loan Maturity Date.

"<u>SCE PPA LC Loan Percentage</u>" means with respect to all payments, computations and other matters relating to the SCE PPA LC Loan Commitment or SCE PPA LC Loans of any SCE PPA LC Loan Lender or the SCE PPA Letter of Credit issued or participations acquired therein by any SCE PPA LC Loan Lender at any time, the percentage obtained by dividing (a) the SCE PPA LC Loan Exposure of that SCE PPA LC Loan Lender by (b) the aggregate SCE PPA LC Loan Exposure of all SCE PPA LC Loan Lenders at such time.

"<u>SCE PPA LC Note</u>" means a promissory note of the applicable Borrower payable to any Lender, in the form of <u>Exhibit A-3</u> hereto (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the applicable Borrower to such Lender resulting from outstanding SCE PPA LC Loans and also means all other promissory notes accepted from time to time in substitution therefor or renewal thereof.

"<u>SCE PPA LC Outstandings</u>" means, at any time of determination, the sum of (a) the Stated Amount of the issued and outstanding SCE PPA Letter of Credit <u>plus</u> (b) all outstanding and unreimbursed Reimbursement Obligations and, as to each SCE PPA LC Loan Lender, such Lender's share of the SCE PPA LC Outstandings.

"<u>SCE PPA LC Percentage</u>" means, as to any SCE PPA LC Loan Lender at any given time, the percentage which such Lender's SCE PPA LC Loan Commitment under the SCE PPA LC Tranche in which it is a participant then constitutes of the aggregate SCE PPA LC Loan Commitment under such SCE PPA LC Tranche.

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"<u>SCE PPA LC Tranche</u>" means each SCE PPA LC Issuer's SCE PPA LC Issuing Commitment and the applicable SCE PPA LC Loan Lender's SCE PPA LC Loan Commitment in respect of such SCE PPA LC Issuing Commitment, as the context may require.

"<u>SCE PPA Letter of Credit</u>" is defined in <u>Section 2.1.4(d)(i)</u>.

"<u>Second Credit Extension Deadline</u>" is defined in <u>Section 7.22(b)</u>.

"<u>Second Credit Extension Funds Flow Memorandum</u>" means the memorandum setting forth the flow of funds on the date of the second Credit Extension, which shall be in form and substance acceptable to all Lenders.

"<u>Secured Interest Rate Hedge Agreement</u>" means an Interest Rate Hedge Agreement that is entered into between the Cape Phase 1 Borrower and a Secured Interest Rate Hedge Provider for the purpose of hedging interest rate exposure associated with the Term Loans.

"<u>Secured Interest Rate Hedge Provider</u>" means, with respect to any Secured Interest Rate Hedge Agreement, any Person who at the time such Secured Interest Rate Hedge Agreement is entered into (including by novation), is a Lender or an Affiliate of the Lender.

"<u>Secured Parties</u>" means, collectively, the Lenders, the LC Issuers, the Collateral Agent, the Administrative Agent, the Depositary Bank, and the Secured Interest Rate Hedge Providers and each of their respective successors and permitted assigns.

"<u>Securities Account</u>" means a "securities account" as that term is defined in Section 8-501 of the UCC.

"<u>Security Documents</u>" means the Guarantee and Collateral Agreement, WellCo Pledgor Pledge Agreement, the Cape Phase I Pledgor Pledge and Security Agreement, and each other agreement, document or instrument granting or purporting to grant a security interest or Lien to secure the Obligations.

"<u>Separateness Provisions</u>" is defined in <u>Exhibit I</u>.

"<u>Shared Facilities Agreement</u>" means the contract listed under the heading "Shared Facilities Agreement" in <u>Schedule V</u>.

"<u>Shell PPA</u>" means the contract listed under the heading "Shell PPA" in <u>Schedule V</u>.

"<u>Shell PPA LC Commitments</u>" means the Shell PPA LC Loan Commitments and the Shell PPA LC Issuing Commitments.

"<u>Shell PPA LC Facility</u>" means the Shell PPA LC Loan Commitments and the Shell PPA LC Loans made hereunder.

"<u>Shell PPA LC Issuer</u>" means the Persons listed under the heading "Shell PPA LC Issuing Commitments" on <u>Schedule II</u>, each in its capacity as an issuer of a Shell PPA Letter of Credit in respect of the applicable Shell PPA LC Tranche. In the event that there is more than

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one Shell PPA LC Issuer at any time, references herein and in the other Loan Documents to the Shell PPA LC Issuer shall be deemed to refer to the Shell PPA LC Issuer in respect of the applicable Shell PPA Letter of Credit or to all Shell PPA LC Issuers, as the context requires.

"<u>Shell PPA LC Issuing Commitment</u>" means a Shell PPA LC Issuer's obligation to issue a Shell PPA Letter of Credit pursuant to <u>Section 2.1.4(a)</u> and "<u>Shell PPA LC Issuing</u> <u>Commitments</u>" means such commitments of all Shell PPA LC Issuers. The amount of each Shell PPA LC Issuer's Shell PPA LC Issuing Commitment in respect of the applicable Shell PPA LC Tranche is set forth on <u>Schedule II</u>, subject to any assignment, adjustment or reduction pursuant to the terms and conditions hereof.

"<u>Shell PPA LC Issuing Commitment Amount</u>" means, on any date, a maximum amount of $3,875,000, as such amount may be permanently reduced from time to time pursuant to <u>Section 2.2</u>.

"<u>Shell PPA LC Loan</u>" means an LC Loan advanced in respect of a Disbursement under a Shell PPA Letter of Credit pursuant to <u>Section 2.6.3(b)</u>.

"<u>Shell PPA LC Loan Commitment</u>" means, as the context may require, relative to any Lender, such Lender's obligation (if any) to make Shell PPA LC Loans pursuant to <u>Section</u> <u>2.1.4(a)</u> and the obligation of each Shell PPA LC Loan Lender to participate in the Shell PPA Letter of Credit under the Shell PPA LC Tranche in which it is a participant hereunder, as applicable, and "<u>Shell PPA LC Loan Commitments</u>" means such commitments of all Lenders. The amount of each Lender's Shell PPA LC Loan Commitment, if any, in respect of the Shell PPA LC Tranche is set forth in each case on <u>Schedule II</u> with respect to the applicable Shell PPA LC Tranche or in the applicable Lender Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the Shell PPA LC Loan Commitments shall not exceed the Shell PPA LC Loan Commitment Amount.

"<u>Shell PPA LC Loan Commitment Amount</u>" means, on any date, $3,875,000, as such amount may be reduced from time to time pursuant to <u>Section 2.2</u> or<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>provided</u> that the aggregate Shell PPA LC Loan Commitment Amount shall not exceed the Shell PPA LC Issuing Commitment Amount.

"<u>Shell PPA LC Loan Commitment Termination Date</u>" means the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;the Shell PPA LC Loan Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;the date on which the Shell PPA LC Loan Commitment Amount is terminated in full or permanently reduced to zero pursuant to the terms of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the date on which any Commitment Termination Event occurs.

Upon the occurrence of any event described above, the Shell PPA LC Loan Commitments shall terminate automatically and without any further action.

"<u>Shell PPA LC Loan Exposure</u>" means, as of any date of determination with respect to a Shell PPA LC Loan Lender, (a) prior to the termination of the Shell PPA LC Loan

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Commitments, the sum of (i) the Available Shell PPA LC Loan Commitments of such Shell PPA LC Loan Lender, (ii) all Shell PPA LC Outstandings of such Shell PPA LC Loan Lender, and (iii) the aggregate outstanding principal amount of all Shell PPA LC Loans of such Shell PPA LC Loan Lender, and (b) after the termination of the Shell PPA LC Loan Commitments, the sum of (i) the aggregate outstanding principal amount of all Shell PPA LC Loans of such Shell PPA LC Loan Lender and (ii) all Shell PPA LC Outstandings of such Shell PPA LC Loan Lender.

"<u>Shell PPA LC Loan Lender</u>" means each Lender that has a Shell PPA LC Loan Commitment.

"<u>Shell PPA LC Loan Maturity Date</u>" means the Term Loan Maturity Date.

"<u>Shell PPA LC Loan Percentage</u>" means with respect to all payments, computations and other matters relating to the Shell PPA LC Loan Commitment or Shell PPA LC Loans of any Shell PPA LC Loan Lender or the Shell PPA Letter of Credit issued or participations acquired therein by any Shell PPA LC Loan Lender at any time, the percentage obtained by dividing (a) the Shell PPA LC Loan Exposure of that Shell PPA LC Loan Lender by (b) the aggregate Shell PPA LC Loan Exposure of all Shell PPA LC Loan Lenders at such time.

"<u>Shell PPA LC Note</u>" means a promissory note of the applicable Borrower payable to any Lender, in the form of <u>Exhibit A-3</u> hereto (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the applicable Borrower to such Lender resulting from outstanding Shell PPA LC Loans and also means all other promissory notes accepted from time to time in substitution therefor or renewal thereof.

"<u>Shell PPA LC Outstandings</u>" means, at any time of determination, the sum of (a) the Stated Amount of the issued and outstanding Shell PPA Letter of Credit <u>plus</u> (b) all outstanding and unreimbursed Reimbursement Obligations and, as to each Shell PPA LC Loan Lender, such Lender's share of the Shell PPA LC Outstandings.

"<u>Shell PPA LC Percentage</u>" means, as to any Shell PPA LC Loan Lender at any given time, the percentage which such Lender's Shell PPA LC Loan Commitment under the Shell PPA LC Tranche in which it is a participant then constitutes of the aggregate Shell PPA LC Loan Commitment under such Shell PPA LC Tranche.

"<u>Shell PPA LC Tranche</u>" means each Shell PPA LC Issuer's Shell PPA LC Issuing Commitment and the applicable Shell PPA LC Loan Lender's Shell PPA LC Loan Commitment in respect of such Shell PPA LC Issuing Commitment, as the context may require.

"<u>Shell PPA Letter of Credit</u>" is defined in <u>Section 2.1.4(c)(i)</u>.

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"<u>SOFR Administrator</u>" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

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"<u>SOFR Administrator's Website</u>" means the website of the Federal Reserve Bank of New York, currently at <u>http://www.newyorkfed.org</u>, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"<u>SOFR Borrowing</u>" means, as to any Borrowing, the applicable SOFR Loans comprising such Borrowing.

"<u>SOFR Determination Day</u>" is defined in the definition of "Daily Compounded SOFR."

"<u>SOFR Loan</u>" means a Loan that bears interest at a rate based on Daily Compounded SOFR, other than pursuant to clause (c) of the definition of "Adjusted Base Rate."

"<u>SOFR Rate Day</u>" is defined in the definition of "Daily Compounded SOFR."

"<u>Solvent</u>" means, with respect to any Person on a particular date, that on such date (a) the fair value of the assets of such Person exceeds the debts and liabilities, subordinated, contingent or otherwise, of such Person, (b) the present fair saleable value of the property of such Person is greater than the amount that will be required to pay the probable liability of such Person on its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured, (c) such Person is able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured and (d) such Person is not engaged in business, and such Person is not about to engage in business, for which such Person has an unreasonably small capital. The amount of contingent liabilities at any time shall be computed as the amount that can reasonably be expected to become an actual and matured liability.

"<u>Specified LC Purpose</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;with respect to the Material Construction Contract Letter of Credit, satisfaction of the Project Companies' obligation to deliver the Fervo Energy Credit Security (as defined in the Material Construction Contract) in accordance with the terms of the Material Construction Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;with respect to the SCE PPA Letter of Credit, satisfaction of CGS 3's obligation to deliver Development Security (as defined in the SCE PPA) and Performance Assurance (as defined in the SCE PPA) in accordance with the terms of the SCE PPA; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;with respect to the Shell PPA Letter of Credit, satisfaction of CGS 5's obligation to deliver Development Security (as defined in the Shell PPA) and Performance Security (as defined in the Shell PPA) in accordance with the terms of the Shell PPA.

"<u>Sponsor</u>" means Fervo Energy Company, a Delaware corporation.

"<u>Sponsor Guaranty</u>" means the Guaranty, dated as of the Closing Date, delivered by the Sponsor for the benefit of the Collateral Agent (on behalf of the Secured Parties).

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"<u>Sponsor LC</u>" means each Letter of Credit issued by an Acceptable Bank in favor of the Collateral Agent for the benefit of the Secured Parties as a backstop to all or a portion of the DSR Requirement or the Required Major Maintenance Reserve Amount, as applicable, which Letter of Credit shall be in a form reasonably acceptable to the Lenders and shall not include any Obligor or Subsidiary thereof, as the account party thereof.

"<u>Stated Amount</u>" means, on any date and with respect to any Material Construction Contract Letter of Credit, any Shell PPA Letter of Credit, any SCE PPA Letter of Credit or any DSR Letter of Credit, the total amount then available to be drawn under such Material Construction Contract Letter of Credit, such Shell PPA Letter of Credit, such SCE PPA Letter of Credit or such DSR Letter of Credit, respectively.

"<u>Stated Expiry Date</u>" means, with respect to any Material Construction Contract Letter of Credit, SCE PPA Letter of Credit, Shell PPA Letter of Credit or any DSR Letter of Credit, its date of expiration.

"<u>Stated Maturity Date</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;with respect to all Construction Loans, the Construction Loan Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;with respect to all Term Loans, the Term Loan Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;with respect to all TRABL Loans, the TRABL Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;with respect to all Material Construction Contract LC Loans, the Material Construction Contract LC Loan Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;with respect to all SCE PPA LC Loans, the Shell PPA LC Loan Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;with respect to all Shell PPA LC Loans, the Shell PPA LC Loan Maturity Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;with respect to all DSR LC Loans, the DSR LC Loan Maturity Date.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, limited liability company, partnership or other entity ("<u>Other Person</u>") of which more than fifty percent (50%) of the Voting Securities of such Other Person (irrespective of whether at the time Capital Securities of any other class or classes of such Other Person shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more other Subsidiaries of such Person, or by one or more other Subsidiaries of such Person; provided that, in determining the percentage of ownership interests of any Person controlled by, or constituting the total voting power of the total shares or stock or other ownership interest of, another Person, (x) no ownership interest in the nature of a "qualifying share" of the former Person shall be deemed to be outstanding and (y) no passive ownership interest (including tax equity ownership interest of the former Person) shall be deemed to be voting power of shares or stock or other ownership interest. Unless the context expressly provides otherwise, the term "Subsidiary" means a Subsidiary of a Borrower.

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"<u>Subsidiary Guarantors</u>" means the Project Companies.

"<u>Substantial Completion</u>" means the satisfaction of each of the following conditions: the Project has been installed and has achieved (a) Commercial Operation, (b) "Mechanical Completion" (as defined in the Material Construction Contract), (c) "Acceptance" (as defined in the Material Equipment Supply Contracts), and (d) completion of all the Performance Tests as evidenced by delivery of test results supporting the results of such tests in accordance with <u>Section 7.18</u>.

"<u>Substantial Completion Date</u>" means the date Substantial Completion is achieved.

"<u>Subsurface Consultant</u>" means Jacobs Engineering Group Inc.

"<u>Subsurface Consultant Report</u>" means the Project Cape Phase 1 Summary Report, Milford, Utah, dated as of September 4, 2025, as prepared by the Subsurface Consultant.

"<u>Supplemental Collateral Agent</u>" is defined in <u>Section 10.9(a)(i)</u>.

"<u>Supported QFC</u>" is defined in <u>Section 11.24</u>.

"<u>Surface Property</u>" means the real property described in Schedule A of the Title Policy.

"<u>Swap Obligation</u>" means, with respect to any Person, any obligation of such Person to pay or perform under or in respect of any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1(a)(47) of the Commodity Exchange Act, including guarantee obligations in respect of and obligations arising under any Secured Interest Hedge Rate Agreement.

"<u>Synthetic Lease</u>" means, as applied to any Person, any lease (including leases that may be terminated by the lessee at any time) of any property (whether real, personal or mixed) (a) that is not a capital lease in accordance with GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased for income tax purposes, other than any such lease under which that Person is the lessor.

"<u>Tax Credit Policy Proceeds</u>" means, with respect to any claim arising in connection with any ITC Loss Insurance Policy or PTC Loss Insurance Policy, the cash amount of any insurance proceeds received by any Loan Party in connection therewith, but excluding any proceeds or awards required to be paid to a creditor (other than the Lenders) that is an ITC Transferee or PTC Transferee, *less* amounts expended by such Loan Party on legal, accounting and other professional fees, expenses and charges incurred in connection with collecting such insurance proceeds.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees, or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term Conversion</u>" is defined in<u>[Section 5.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

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"<u>Term Conversion Deadline</u>" means the date that is the earlier of (a) six (6) months after the Substantial Completion Date and (b) the Construction Date Certain.

"<u>Term Conversion Request</u>" is defined in <u>Section 2.1.2(c)</u>.

"<u>Term Loan Commitment</u>" means, relative to any Term Loan Lender, such Lender's obligation to make Term Loans pursuant to <u>Section 2.1.2</u>, subject to any adjustment or reduction pursuant to the terms and conditions hereof.

"<u>Term Loan Exposure</u>" means, with respect to any Term Loan Lender, as of any date of determination, (a) prior to the termination of all Term Loan Commitments of such Term Loan Lender, the sum of the (i) the aggregate amount of Term Loans of such Term Loan Lender then outstanding plus (ii) aggregate amount of all available Term Loan Commitments of such Term Loan Lender then outstanding and (b) after the termination of all Term Loan Commitments of such Term Loan Lender, the aggregate outstanding principal amount of all Term Loans of such Term Loan Lender.

"<u>Term Loan Facility</u>" means the Term Loan Commitments and the Term Loans made hereunder.

"<u>Term Loan Lender</u>" is defined in <u>Section 2.1.2(a)</u>.

"<u>Term Loan Maturity Date</u>" means the earlier of (a) the date that is the fifth (5<sup>th</sup>) anniversary of the Closing Date and (b) the Second Credit Extension Deadline, if the second Credit Extension shall not have occurred on or prior to such date.

"<u>Term Loan Note</u>" means a promissory note of the Cape Phase 1 Borrower payable to any Lender, in the form of <u>Exhibit A-1</u> hereto (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the Cape Phase 1 Borrower to such Lender resulting from outstanding Term Loans and also means all other promissory notes accepted from time to time in substitution therefor or renewal thereof.

"<u>Term Loans</u>" is defined in <u>Section 2.1.2(a)</u>.

"<u>Term Loan Percentage</u>" means, with respect to all payments, computations and other matters relating to the Term Loan of any Lender, the percentage obtained by dividing (a) the Term Loan Exposure of that Lender by (b) the aggregate Term Loan Exposure of all Lenders.

"<u>Term Loan Principal Payment Date</u>" means each Quarterly Payment Date occurring from and after the Conversion Date.

"<u>Termination Date</u>" means the date on which all Obligations have been paid in full (other than indemnity and other contingent obligations not yet due and payable) in cash, all Material Construction Contract Letters of Credit, SCE PPA Letters of Credit, Shell PPA Letters of Credit and DSR Letters of Credit have been terminated, expired or Cash Collateralized, all Commitments shall have terminated, and all Secured Interest Rate Hedge Agreements shall have been terminated, liquidated or unwound and all Hedging Obligations in respect thereof shall have been paid in full in cash (unless the relevant Secured Interest Rate Hedge Provider agrees in

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writing with the Cape Phase 1 Borrower to the contrary or the relevant Secured Interest Rate Hedge Agreement shall have been transferred to a refinancing lender in accordance with the terms thereof and all amounts owing to such Secured Interest Rate Hedge Provider under such relevant Secured Interest Rate Hedge Agreement shall have been paid in full in cash).

"<u>Title Company</u>" means First American Financial Corporation.

"<u>Title Endorsement Limitations</u>" is defined in <u>Section 5.3.9(d)(ii)</u>.

"<u>Title Event</u>" means any event arising from a defect in title with respect to real property for which proceeds of title insurance are received by any Loan Party.

"<u>Title Opinions</u>" mean (a) that certain Opinion of Title dated October 14, 2023, prepared by Rammell Law PLLC, covering Section 31, Township 26 South, Range 9 West, SLM&B, Beaver County, Utah, (b) that certain Opinion of Title dated March 6, 2023, prepared by Rammell Law PLLC, covering Section 6, Township 27 South, Range 9 West, SLM&B, Beaver County, Utah, and (c) that certain Drilling Title Opinion dated July 19, 2024, prepared by Rammell law PLLC, as amended by Drilling Title Opinion – Update dated September 30, 2024, prepared by Rammell Law, PLLC, covering Section 36, Township 26 South, Range 10 West, SLM&B, Beaver County, Utah.

"<u>Title Policy</u>" is defined in <u>Section 5.3.9(d)(ii)</u>.

"<u>Total Exposure Amount</u>" means, on any date of determination, the sum of (a) the Construction Loan Exposure of all Construction Loan Lenders, *plus* (b) the Term Loan Exposure of all Term Loan Lenders, *plus* (c) the Shell PPA LC Loan Exposure of all Shell PPA LC Loan Lenders, *plus* (d) the TRABL Exposure of all TRABL Lenders, *plus* (e) the Material Construction Contract LC Loan Exposure of the Material Construction Contract LC Loan Lender, *plus* (f) the SCE PPA LC Loan Exposure of all SCE PPA LC Loan Lenders, *plus* (g) the DSR LC Loan Exposure of all DSR LC Loan Lenders.

"<u>Total Project Costs</u>" means all costs, fees, Taxes and expenses incurred or payable by the Loan Parties on or prior to the Conversion Date in connection with the ownership, development, acquisition, construction, financing and completion of the Project as contemplated by the Construction Budget (including the contingency allowance identified in the Construction Budget), the Construction Schedule and the Project Documents, including the costs incurred in connection with design, engineering, remediation, procurement, construction, testing, commissioning, equipping, assembly, installation, inspection, start-up, interconnection, permitting, drilling in respect of, well completion, and financing of the Project, costs of insurance, initial working capital requirements and operating costs of the Project incurred prior to the Conversion Date as set forth in the Projections, cost of equipment, materials, spare parts, and labor for the Project, costs of acquiring real property, leases, easements and other real property interests and Permits related to the Project, Cash Debt Service and other fees owing to the Secured Parties arising prior to the Conversion Date, funding of the DSR Requirement (to the extent funded with Cash) and the Punch List Reserve Required Amount on the Conversion Date, any development fee set forth in the Construction Budget, Restricted Payments permitted under <u>[Section 8.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) any premiums, brokerage and other fees payable in connection with the ITC Loss

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Insurance Policy and the PTC Loss Insurance Policy; and all other legal, accounting, advisory, administrative, closing, finance and other costs and expenses (including Cash Debt Service prior to Term Conversion) incurred and payable by the Loan Parties under the Project Documents or otherwise in connection with the Project on or prior to the Conversion Date.

"<u>TRABL Commitment</u>" means, relative to any TRABL Lender, such Lender's obligation to make TRABL Loans pursuant to <u>Section 2.1.3</u>. The amount of each Lender's TRABL Commitment, if any, is set forth on <u>Schedule II</u> or in the applicable Lender Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The aggregate amount of the TRABL Commitments shall not exceed the TRABL Commitment Amount.

"<u>TRABL Commitment Amount</u>" means $61,489,673.73, as such amount may be permanently reduced from time to time pursuant to <u>Section 2.2</u>; <u>provided</u> that the TRABL Commitment Amount shall at all times not exceed ninety-eight percent (98%) of the projected ITC Transfer Proceeds as set forth in the Borrower Model.

"<u>TRABL Commitment Termination Date</u>" means the earlier of (a) the TRABL Maturity Date, and (b) the date on which any Commitment Termination Event occurs.

"<u>TRABL Date Certain</u>" means the date that is 90 days prior to the Commitment Expiration Date (as defined in the ITC Transfer Agreement) (as such date may be extended pursuant the ITC Transfer Agreement).

"<u>TRABL Exposure</u>" means, with respect to any TRABL Lender, as of any date of determination, (a) prior to the termination of all TRABL Commitments of such TRABL Lender, the sum of the (i) the aggregate amount of TRABL Loans of such TRABL Lender then outstanding *plus* (ii) the aggregate amount of all available TRABL Commitments of such TRABL Lender then outstanding and (b) after the termination of all TRABL Commitments of such TRABL Lender, the aggregate outstanding principal amount of all TRABL Loans of such TRABL Lender.

"<u>TRABL Facility</u>" means the TRABL Commitments and the TRABL Loans made hereunder.

"<u>TRABL Lender</u>" is defined in <u>Section 2.1.3</u>.

"<u>TRABL Loan Note</u>" means a promissory note of the WellCo Borrower payable to any TRABL Lender, in the form of <u>Exhibit A-2</u> hereto (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the WellCo Borrower to such TRABL Lender resulting from outstanding TRABL Loans and also means all other promissory notes accepted from time to time in substitution therefor or renewal thereof.

"<u>TRABL Loans</u>" is defined in <u>Section 2.1.3</u>.

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"<u>TRABL Maturity Date</u>" means the earlier of (a) the TRABL Date Certain, (b) the final date of payment pursuant to the ITC Transfer Agreement, and (c) the Second Credit Extension Deadline, if the second Credit Extension shall not have occurred on or prior to such date.

"<u>TRABL Percentage</u>" means, with respect to all payments, computations and other matters relating to the TRABL Loan of any TRABL Lender, the percentage obtained by dividing (a) the TRABL Exposure of that TRABL Lender by (b) the aggregate TRABL Exposure of all TRABL Lenders.

"<u>Transaction Documents</u>" means the Loan Documents and the Material Project Documents.

"<u>Transactions</u>" means, collectively, (a) the execution, delivery and performance by the Obligors of the Loan Documents to which each such Obligor and Credit Party is a party, (b) the Borrowings hereunder, the issuance of the Letters of Credit and the use of proceeds of each of the foregoing, and (c) the granting of the Liens pursuant to the Security Documents.

"<u>Transfer Quarter</u>" is defined in <u>Section 3.1.3(l)</u>.

"<u>Transmission Consultant</u>" means nFront Consulting LLC.

"<u>Transmission Consultant Report</u>" means the Transmission Consultant Report for the Cape Phase I Geothermal Project dated as of December 19, 2025, issued by the Transmission Consultant.

"<u>Transmission Service Agreements</u>" means each of the contracts listed under the heading "Transmission Service Agreements" in <u>Schedule V</u>.

"<u>Transmission Service Provider</u>" means each of Milford Gen Lead, LLC and the Los Angeles Department of Water and Power.

"<u>Type</u>" means, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to Daily Compounded SOFR or the Adjusted Base Rate.

"<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York; <u>provided</u> that if, with respect to any Filing Statement or by reason of any provisions of law, the perfection or the effect of perfection or non-perfection of the security interests granted to the Collateral Agent pursuant to the applicable Loan Document is governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States other than New York, UCC means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions of each Loan Document and any Filing Statement relating to such perfection or effect of perfection or non-perfection.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct

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Authority, which includes certain credit institutions and investment firms, and certain Affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>United States</u>" or "<u>U.S.</u>" means the United States of America, its fifty states and the District of Columbia.

"<u>UODA</u>" means the contract listed under the heading "UODA" in <u>Schedule V</u>.

"<u>UODA Amendment</u>" means that certain Third Amendment to the UODA by and among EDR, WellCo Borrower, and each other Person party thereto, to be executed as of the date of the second Credit Extension in the form of <u>Exhibit CC</u>.

"<u>U.S. Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>U.S. Person</u>" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

"<u>U.S. Special Resolution Regimes</u>" is defined in <u>Section 11.24</u>.

"<u>U.S. Tax Compliance Certificate</u>" is defined in <u>Section 4.6(g)(ii)(B)(3)</u>.

"<u>Utah PSC</u>" means the Utah Public Service Commission and any successors thereto.

"<u>Utah State Engineer</u>" means the Utah State Engineer, who is the director of the Utah Division of Water Rights, Department of Natural Resources.

"<u>Voting Securities</u>" means, with respect to any Person, Capital Securities of any class or kind ordinarily having the power to vote (that is, not contingent on the happening of any event) for the election of directors, managers or other voting members of the governing body of such Person.

"<u>Water Appropriation Permit</u>" means the Order of the Utah State Engineer dated as of March 3, 2026 approving Application to Appropriate Water Number 71-5995 (A84679) for the Project.

"<u>Water Appropriation Permit Appeal</u>" is defined in <u>Section 5.3.25</u>.

"<u>WellCo Borrower</u>" is defined in the <u>preamble</u>.

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"<u>WellCo Facilities</u>" means the wellbore interests and associated rights and interests in respect thereof and other facilities forming part of the Project, owned by the WellCo Borrower, comprising assets or property that is described in Section 48(a)(2)(A)(i)(II) of the Code.

"<u>WellCo Pledgor</u>" means Cape PIWP LLC, a Delaware limited liability company.

"<u>WellCo Pledgor Pledge Agreement</u>" means the Pledge Agreement, dated as of the date of the second Credit Extension, between WellCo Pledgor and the Collateral Agent, substantially in the form of <u>Exhibit V-3</u>.

"<u>Withholding Agent</u>" means a Borrower or the Administrative Agent.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

"<u>XRC Facility</u>" means the aggregate unpaid principal amount of the loans, together with all accrued and unpaid interest, fees and costs, and all other Indebtedness and obligations outstanding under the XRC Facility Loan Agreement.

"<u>XRC Facility Loan Agreement</u>" means that certain Loan Agreement, dated as of August 13, 2024 (as may have been amended, amended and restated, supplemented or otherwise modified as of the Closing Date), by and among the Subsidiary Guarantors and XRL ALC, LLC, a Delaware limited liability company.

"<u>XRC Facility Payoff Letter</u>" is defined in <u>Section 5.3.16</u>.

SECTION 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Defined Terms</u>. Unless otherwise defined or the context otherwise requires, terms for which meanings are provided in this Agreement shall have such meanings when used in each other Loan Document and the Disclosure Schedule, and each notice and other communication delivered from time to time in connection with any Loan Document.

SECTION 1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Cross-References</u>. Unless otherwise specified, references in a Loan Document to any Article, Section, Schedule or Exhibit are references to such Article, Section, Schedule or Exhibit of such Loan Document, and references in any Article, Section or definition to any clause are references to such clause of such Article, Section or definition.

SECTION 1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounting and Financial Determinations; Time</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified, all accounting terms used in each Loan Document shall be interpreted, and all accounting determinations and computations thereunder shall be made, in accordance with GAAP. Unless otherwise expressly provided, all defined financial terms shall be computed on a consolidated basis for the Loan Parties, in each case without duplication. Unless otherwise indicated, all references to the time of a day in a Loan Document shall refer to New York, New York time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If Borrowers notify the Administrative Agent that the Administrative Borrower wishes to amend any covenant in <u>Article VII</u> or<u>[Article VIII](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or any related definition to eliminate the effect of any change in GAAP occurring after the date of this Agreement on the operation of such covenant (or if the Administrative Agent notifies the Borrowers that the Required Lenders wish to amend <u>Article VII</u> or<u>[Article VIII](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or any related definition for such purpose), then the Loan Parties' compliance with such covenant shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is amended in a manner reasonably satisfactory to the Borrowers and the Required Lenders. The Borrowers, the Administrative Agent and the Lenders shall negotiate in good faith to amend any such covenant on mutually agreeable terms. In the event of any such notification from the Borrowers or the Administrative Agent and until such notice is withdrawn or such covenant is so amended, the Borrowers will furnish to the Administrative Agent, in addition to the financial statements required to be furnished pursuant to <u>Section 7.1(a)</u> and<u>[Section 7.1(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(the "<u>Current GAAP Financials</u>"), (i) the financial statements described in such Section based upon GAAP as in effect at the time such covenant was agreed to (the "<u>Prior</u> <u>GAAP Financials</u>") and (ii) a reconciliation between the Prior GAAP Financials and the Current GAAP Financials.

SECTION 1.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Certain Terms</u>. (a) Unless otherwise specified, references herein to any Article, Section, Schedule or Exhibit are references to such Article, Section, Schedule or Exhibit of this Agreement, and references in any Article, Section, or definition to any clause are references to such clause of such Article, Section or definition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;As used herein and in the other Loan Documents, and any certificate or other document made or delivered pursuant hereto or thereto:

&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)&nbsp;&nbsp;&nbsp;&nbsp;in any computation of periods of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" each means "to but excluding" and the word "through" means "to and 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the words "<u>including</u>" and "<u>include</u>" shall mean including without limiting the generality of any description preceding such term, and, for purposes of each Loan Document, the parties hereto agree that the rule of ejusdem generis shall not be applicable to limit a general statement, which is followed by or referable to an enumeration of specific matters, to matters similar to the matters specifically mentioned;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the word "renewal" and variations thereof as used herein with respect to a Letter of Credit means to extend the term of such Letter of Credit or to reinstate an amount drawn under such Letter of Credit or both;

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&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)&nbsp;&nbsp;&nbsp;&nbsp;the word "incur" shall be construed to mean incur, create, issue, assume, become liable in respect of or suffer to exist (and the words "incurred" and "incurrence" shall have correlative meanings);

&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)&nbsp;&nbsp;&nbsp;&nbsp;the expressions "payment in full," "paid in full" and any other similar terms or phrases when used herein with respect to the Obligations shall mean the payment in full, in immediately available funds, of all the Obligations (other than contingent obligations not then due);

&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)&nbsp;&nbsp;&nbsp;&nbsp;the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties (whether real or personal), including cash, Capital Securities, securities, revenues, accounts, leasehold interests and contract 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;(vii)&nbsp;&nbsp;&nbsp;&nbsp;any reference herein to any Person shall be construed to include such Person's successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The words "hereof," "herein," and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Article, Schedule, Annex, Exhibit and analogous references are to this Agreement unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining compliance with any Section of<u>[Article VIII](#i918c83e63c6d41b4b3424c701423fa52_1)</u>at any time, in the event that any Indebtedness (whether at the time of incurrence or upon application of all or a portion of the proceeds thereof), Lien, Investment, Restricted Payment, Disposition, Affiliate transaction or prepayment of Indebtedness meets the criteria of one or more than one of the categories of transactions permitted pursuant to any clause of each of<u>[Section 8.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>[Section](#i918c83e63c6d41b4b3424c701423fa52_1)</u> <u>[8.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 8.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 8.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 8.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 8.11](#i918c83e63c6d41b4b3424c701423fa52_1)</u>respectively (and not any other Section), such transaction (or portion thereof) at any time shall be permitted under one or more of such clauses of such individual Section as determined by the Borrowers in their sole discretion at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;References to agreements or other contractual obligations shall, unless otherwise specified, be deemed to refer to such agreements or contractual obligations as amended, supplemented, restated or otherwise modified from time to time (subject to any applicable restrictions herein).

SECTION 1.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Divisions</u>. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Capital Securities at such time.

SECTION 1.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Rates</u>. The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to the Adjusted Base

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Rate, the Benchmark, any component definition thereof or rates referred to in the definition thereof or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Adjusted Base Rate, the Benchmark or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of the Adjusted Base Rate, the Benchmark, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrowers. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain the Adjusted Base Rate or the Benchmark, or any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrowers, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

**ARTICLE II**

**<u>COMMITMENTS, BORROWING AND ISSUANCE</u>**

**<u>PROCEDURES, NOTES AND LETTERS OF CREDIT</u>**

SECTION 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Commitments</u>. On the terms and subject to the conditions of this Agreement, the Lenders and the LC Issuers severally agree to make Credit Extensions as set forth below.

SECTION 2.1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Loan Commitments</u>. Subject to the terms and conditions hereof, including<u>[Article V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(to the extent applicable), each Lender that has a Construction Loan Commitment (referred to as a "<u>Construction Loan Lender</u>") severally agrees that it will make loans as the Cape Phase 1 Borrower may request under this <u>Section 2.1.1</u> (relative to such Lender, its "<u>Construction Loans</u>") to the Cape Phase 1 Borrower from time to time prior to the Construction Loan Commitment Termination Date, but solely in the case of a Borrowing under this <u>Section 2.1.1</u>, not more than two (2) times in any calendar month, in an aggregate principal amount that will not result in such Lender's Construction Loans exceeding its Construction Loan Commitment. No amounts paid or prepaid with respect to Construction Loans may be reborrowed. Each Lender's remaining Construction Loan Commitment shall be reduced to zero and thereafter terminated on the Construction Loan Commitment Termination Date. Each Lender's Construction Loan Commitment shall be irrevocably reduced by the amount of each Construction Loan made by such Lender hereunder. Construction Loans may be Base Rate Loans or SOFR Loans, as further provided herein.

SECTION 2.1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Term Loan Commitments</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof, including<u>[Section 5.2](#i918c83e63c6d41b4b3424c701423fa52_1)and[Section 5.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u> (to the extent applicable), each Lender that has a Term Loan Commitment (referred to as a "<u>Term Loan Lender</u>") severally agrees that it will make loans as the Cape Phase 1 Borrower may request under this <u>Section 2.1.2</u> (relative to such Lender, its "<u>Term Loans</u>") to the Cape Phase 1 Borrower, in a single Borrowing for the conversion of the Construction Loan then outstanding (together with all fees, interest, and other Obligations accrued with respect thereto) into Term Loans. The conversion of Construction Loans into Term Loans shall occur by a deemed funding of Term Loans to the Cape Phase 1 Borrower by the Term Loan Lenders holding a Term Loan Commitment, which amount the Cape Phase 1 Borrower shall be deemed to use to repay the Construction Loans. Each Lender's Term Loan Commitment shall be irrevocably reduced by the amount of each Term Loan made by such Lender hereunder and any Term Loan Commitments shall expire on the Construction Loan Maturity Date. Notwithstanding the foregoing, the aggregate amount of Term Loans borrowed (or requested to be borrowed on such date) shall not exceed the amount of Term Loans supported in the Conversion Date Borrower Model delivered pursuant to<u>[Section 5.2.1(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;On the Conversion Date, each Term Loan Lender severally agrees to make Term Loans to the Cape Phase 1 Borrower, up to the amount of the portion of the Term Loan Commitment that has not been utilized to convert Construction Loans into Term Loans as of such date, to be applied in accordance with <u>Section 3.01(b)(ii)</u> (*Conversion Date Waterfall*)] of the Depositary Agreement; <u>provided</u> that, after giving effect to any such Term Loans on the Conversion Date, the Conversion Date Borrower Model delivered pursuant to<u>[Section 5.2.1(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u> shall demonstrate compliance with clause (a) of the definition of "CTL Debt Sizing Criteria."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof, including <u>Article[V](#i918c83e63c6d41b4b3424c701423fa52_1)(to the extent</u> <u>applicable)</u>, the Cape Phase 1 Borrower may request Term Conversion by delivering an irrevocable written request to the Administrative Agent in the form of <u>Exhibit B-3</u>, appropriately completed and executed by the Cape Phase 1 Borrower (the "<u>Term Conversion Request</u>"), no later than five (5) Business Days prior to the projected Conversion Date; <u>provided</u> that Term Conversion may not occur more than once.

SECTION 2.1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>TRABL Loan Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions hereof, including<u>[Article V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(to the extent applicable), each Lender that has a TRABL Commitment (referred to as a "<u>TRABL Lender</u>") severally agrees that it will make ITC transfer bridge loans as the WellCo Borrower may request under this <u>Section 2.1.3</u> (relative to such Lender, its "<u>TRABL Loans</u>") to the WellCo Borrower from time to time prior to the TRABL Commitment Termination Date, but solely in the case of a Borrowing under this <u>Section 2.1.3</u>, not more than two (2) times in any calendar month, in an aggregate principal amount that will not result in such Lender's TRABL Loans exceeding its TRABL Commitment. No amounts paid or prepaid with respect to TRABL Loans may be reborrowed. Each Lender's remaining TRABL Commitment shall be reduced to zero and thereafter terminated on the TRABL Commitment Termination Date. Each Lender's TRABL Commitment shall be irrevocably reduced by the amount of each TRABL Loan made by such Lender hereunder.

SECTION 2.1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Letters of Credit</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof, including<u>[Article V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(to the extent applicable), from time to time on any Business Day occurring after the Closing Date until the date that is five (5) Business Days prior to the Material Construction Contract LC Loan Commitment Termination Date (but not to exceed, in the case of an amendment to a Material Construction Contract Letter of Credit, once in any given fourteen (14) days, or as otherwise agreed by the applicable Material Construction Contract LC Issuer), the Material Construction Contract LC Issuer agrees that it will, to the extent requested by the Cape Phase 1 Borrower:

&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)&nbsp;&nbsp;&nbsp;&nbsp;issue one or more standby letters of credit to be utilized for the Specified LC Purpose substantially in the applicable form set forth in <u>Exhibit T-2</u> or in such other form reasonably acceptable to the applicable Material Construction Contract LC Issuer, the Cape Phase 1 Borrower and the applicable beneficiary (each such standby letter of credit, a "<u>Material Construction Contract Letter of Credit</u>"), and thereafter maintain each such Material Construction Contract Letter of Credit in accordance with its terms until the Stated Expiry Date applicable to such Material Construction Contract Letter of Credit, for the account of the applicable Loan Party, in the Stated Amount requested by the Cape Phase 1 Borrower on such day;

&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)&nbsp;&nbsp;&nbsp;&nbsp;amend or increase the Stated Amount of an existing Material Construction Contract Letter of Credit previously issued hereunder; <u>provided</u> the Cape Phase 1 Borrower shall deliver to the Material Construction Contract LC Issuer an amendment request substantially in the form set forth in <u>Exhibit B-2</u>; 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)&nbsp;&nbsp;&nbsp;&nbsp;extend the Stated Expiry Date of an existing Material Construction Contract Letter of Credit previously issued hereunder;

<u>provided</u>, such Material Construction Contract LC Issuer shall not issue or extend the Stated Expiry Date of any such Material Construction Contract Letter of Credit if the conditions in<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>have not been satisfied or waived in accordance with the terms of this Agreement; <u>provided further</u>, if any Material Construction Contract LC Loan Lender (other than such Material Construction Contract LC Issuer or its Affiliate) is a Defaulting Lender, to the extent such Material Construction Contract LC Issuer has Fronting Exposure in respect of such Letter of Credit, such Material Construction Contract LC Issuer shall not be required to issue a Material Construction Contract Letter of Credit unless (A) the Defaulting Lender's participation in the Material Construction Contract Letter of Credit requested to be issued or extended and related Material Construction Contract LC Loans have been reallocated among the Non-Defaulting Lenders in accordance with<u>[Section 4.12(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) (B) the Cape Phase 1 Borrower has Cash Collateralized such Material Construction Contract LC Loan Lender's Material Construction Contract LC Loan Percentage of the Material Construction Contract Letter of Credit requested to be issued or extended (including by transfer of funds available in the Revenue Account but excluding by funding of a Material Construction Contract LC Loan) or (C) such Material Construction Contract LC Issuer has entered into arrangements reasonably satisfactory to it and the Cape Phase 1 Borrower to reduce such Material Construction Contract LC Issuer's risk with respect to the participation in such Material Construction Contract Letter of Credit of the Defaulting Lender to the same extent as would have existed were such Material Construction Contract LC Loan Lender

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not a Defaulting Lender; <u>provided still further</u> that after giving effect to any such issuance or extension, in no event shall any Lender's Material Construction Contract LC Outstandings exceed its Material Construction Contract LC Loan Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof, including<u>[Article V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(to the extent applicable), from time to time on any Business Day occurring on or after the Conversion Date until the DSR LC Loan Commitment Termination Date (but not to exceed once in any given month or as otherwise agreed by the applicable DSR LC Issuer), each DSR LC Issuer agrees that it will, to the extent requested by the Borrowers:

&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)&nbsp;&nbsp;&nbsp;&nbsp;issue one or more standby letters of credit substantially in the form of <u>Exhibit T-1</u> (each such standby letters of credit, a "<u>DSR Letter of Credit</u>") and thereafter maintain each such DSR Letter of Credit in accordance with its terms until the Stated Expiry Date applicable to such DSR Letter of Credit, for the account of the Borrowers, in the Stated Amount requested by the Borrowers on such day; 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)&nbsp;&nbsp;&nbsp;&nbsp;extend the Stated Expiry Date of an existing DSR Letter of Credit previously issued hereunder;

<u>provided</u>, such DSR LC Issuer shall not issue or extend any such DSR Letter of Credit if the conditions in<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>have not been satisfied or waived in accordance with the terms of this Agreement; <u>provided</u>, <u>further</u>, if any DSR LC Loan Lender (other than such DSR LC Issuer or its Affiliate) is a Defaulting Lender, to the extent such DSR LC Issuer has Fronting Exposure in respect of such DSR Letter of Credit, such DSR LC Issuer shall not be required to issue any DSR Letter of Credit unless (A) the Defaulting Lender's participation in the DSR Letters of Credit requested to be issued or extended and related DSR LC Loans have been reallocated among the Non-Defaulting Lenders in accordance with<u>[Section 4.12(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) (B) the Borrowers have Cash Collateralized such DSR LC Loan Lender's DSR LC Loan Percentage of the DSR Letter of Credit requested to be issued or extended (including by transfer of funds available in the Revenue Account but excluding by funding of a DSR LC Loan) or (C) such DSR LC Issuer has entered into arrangements reasonably satisfactory to it and the Borrowers to reduce such DSR LC Issuer's risk with respect to the participation in DSR Letters of Credit of the Defaulting Lender to the same extent as would have existed were such DSR LC Loan Lender not a Defaulting Lender; <u>provided still further</u> that after giving effect to any such issuance or extension, in no event shall any Lender's DSR LC Outstandings exceed its DSR LC Loan Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof, including<u>[Article V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(to the extent applicable), from time to time on any Business Day occurring after the Conversion Date until the Shell PPA LC Loan Commitment Termination Date (but not to exceed, in the case of an amendment to the Shell PPA Letter of Credit, once in any given fourteen (14) days, or as otherwise agreed by the applicable Shell PPA LC Issuer), the Shell PPA LC Issuer agrees that it will, to the extent requested by the Cape Phase 1 Borrower:

&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)&nbsp;&nbsp;&nbsp;&nbsp;Issue one or more standby letters of credit to be utilized for the Specified LC Purpose substantially in the applicable form set forth in <u>Exhibit T-3</u> or in such other form reasonably acceptable to the applicable Shell PPA LC Issuer, the Cape Phase 1

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Borrower and the applicable beneficiary (each such standby letters of credit, a "<u>Shell</u> <u>PPA Letters of Credit</u>") and thereafter maintain each such Shell PPA Letter of Credit in accordance with its terms until the Stated Expiry Date applicable to such Shell PPA Letter of Credit, for the account of the applicable Loan Party in the Stated Amount requested by the Cape Phase 1 Borrower on such day;

&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)&nbsp;&nbsp;&nbsp;&nbsp;amend or increase the Stated Amount of an existing Shell PPA Letter of Credit previously issued hereunder; <u>provided</u> the Cape Phase 1 Borrower shall deliver to the Shell PPA LC Issuer an amendment request substantially in the form set forth on <u>Exhibit B-2</u>; 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)&nbsp;&nbsp;&nbsp;&nbsp;extend the Stated Expiry Date of an existing Shell PPA Letter of Credit previously issued hereunder;

<u>provided</u>, such Shell PPA LC Issuer shall not issue or extend the Stated Expiry Date of any such Shell PPA Letter of Credit if the conditions in<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>have not been satisfied or waived in accordance with the terms of this Agreement; <u>provided further</u>, if any Shell PPA LC Loan Lender (other than such Shell PPA LC Issuer or its Affiliate) is a Defaulting Lender, to the extent such Shell PPA LC Issuer has Fronting Exposure in respect of such Letter of Credit, such Shell PPA LC Issuer shall not be required to issue a Shell PPA Letter of Credit unless (A) the Defaulting Lender's participation in the Shell PPA Letter of Credit requested to be issued or extended and related Shell PPA LC Loans have been reallocated among the Non-Defaulting Lenders in accordance with<u>[Section 4.12(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) (B) the Cape Phase 1 Borrower has Cash Collateralized such Shell PPA LC Loan Lender's Shell PPA LC Loan Percentage of the Shell PPA Letter of Credit requested to be issued or extended (including by transfer of funds available in the Revenue Account but excluding by funding of a Shell PPA LC Loan) or (C) such Shell PPA LC Issuer has entered into arrangements reasonably satisfactory to it and the Cape Phase 1 Borrower to reduce such Shell PPA LC Issuer's risk with respect to the participation in such Shell PPA Letter of Credit of the Defaulting Lender to the same extent as would have existed were such Shell PPA LC Loan Lender not a Defaulting Lender; <u>provided still further</u> that after giving effect to any such issuance or extension, in no event shall any Lender's Shell PPA LC Outstandings exceed its Shell PPA LC Loan Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof, including<u>[Article V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(to the extent applicable), from time to time on any Business Day occurring after the Closing Date until the date that is five (5) Business Days prior to the SCE PPA LC Loan Commitment Termination Date (but not to exceed, in the case of an amendment to a SCE PPA Letter of Credit, once in any given fourteen (14) days, or as otherwise agreed by the applicable SCE PPA LC Issuer), the SCE PPA LC Issuer agrees that it will, to the extent requested by the Cape Phase 1 Borrower:

&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)&nbsp;&nbsp;&nbsp;&nbsp;issue one or more standby letters of credit to be utilized for the Specified LC Purpose substantially in the applicable form set forth in <u>Exhibit T-4</u> or in such other form reasonably acceptable to the applicable SCE PPA LC Issuer, the Cape Phase 1 Borrower and the applicable beneficiary (each such standby letter of credit, a "<u>SCE PPA</u> <u>Letter of Credit</u>"), and thereafter maintain each such SCE PPA Letter of Credit in accordance with its terms until the Stated Expiry Date applicable to such SCE PPA Letter

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of Credit, for the account of the applicable Loan Party, in the Stated Amount requested by the Cape Phase 1 Borrower on such day;

&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)&nbsp;&nbsp;&nbsp;&nbsp;amend or increase the Stated Amount of an existing SCE PPA Letter of Credit previously issued hereunder; <u>provided</u> the Cape Phase 1 Borrower shall deliver to the SCE PPA LC Issuer an amendment request substantially in the form set forth in <u>Exhibit B-2</u>; 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)&nbsp;&nbsp;&nbsp;&nbsp;extend the Stated Expiry Date of an existing SCE PPA Letter of Credit previously issued hereunder;

<u>provided</u>, such SCE PPA LC Issuer shall not issue or extend the Stated Expiry Date of any such SCE PPA Letter of Credit if the conditions in<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>have not been satisfied or waived in accordance with the terms of this Agreement; <u>provided further</u>, if any SCE PPA LC Loan Lender (other than such SCE PPA LC Issuer or its Affiliate) is a Defaulting Lender, to the extent such SCE PPA LC Issuer has Fronting Exposure in respect of such Letter of Credit, such SCE PPA LC Issuer shall not be required to issue a SCE PPA Letter of Credit unless (A) the Defaulting Lender's participation in the SCE PPA Letter of Credit requested to be issued or extended and related SCE PPA LC Loans have been reallocated among the Non-Defaulting Lenders in accordance with<u>[Section 4.12(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) (B) the Cape Phase 1 Borrower has Cash Collateralized such SCE PPA LC Loan Lender's SCE PPA LC Loan Percentage of the SCE PPA Letter of Credit requested to be issued or extended (including by transfer of funds available in the Revenue Account but excluding by funding of a SCE PPA LC Loan) or (C) such SCE PPA LC Issuer has entered into arrangements reasonably satisfactory to it and the Cape Phase 1 Borrower to reduce such SCE PPA LC Issuer's risk with respect to the participation in such SCE PPA Letter of Credit of the Defaulting Lender to the same extent as would have existed were such SCE PPA LC Loan Lender not a Defaulting Lender; <u>provided still further</u> that after giving effect to any such issuance or extension, in no event shall any Lender's SCE PPA LC Outstandings exceed its SCE PPA LC Loan Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;No LC Issuer shall be under any obligation to issue any Letter of Credit if any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such LC Issuer from issuing the Letter of Credit, or any law applicable to such LC Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such LC Issuer shall prohibit, or request that such LC Issuer refrain from, the issuance of letters of credit generally or the applicable Letter of Credit in particular or shall impose upon such LC Issuer with respect to the applicable Letter of Credit any restriction, reserve or capital requirement (for which such LC Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon such LC Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which such LC Issuer in good faith deems material to it (for which such LC Issuer is not otherwise reimbursed hereunder).

SECTION 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Reduction of the Commitment Amounts</u>. The Borrowers may, from time to time on any Business Day occurring on and after the Closing Date, subject to the terms of this <u>Section 2.2</u>, voluntarily reduce the amount of any Commitment Amount on the Business Day so specified by the Borrowers; <u>provided</u> that all such reductions shall require at least three (3)

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Business Days' prior written notice to the Administrative Agent and be permanent, and any partial reduction of any Commitment Amount shall be in a minimum amount of One Hundred Thousand Dollars ($100,000) and in an integral multiple of Fifty Thousand Dollars ($50,000); <u>provided</u>, <u>however</u>, that if such notice is conditioned upon the effectiveness of other credit facilities or any incurrence or issuance of debt or equity, such notice may be revoked by the Borrowers (by notice to the Administrative Agent) if such credit facilities do not become effective or such other transaction does not close. Any optional or mandatory reduction of the Material Construction Contract LC Loan Commitment Amount, Shell PPA LC Loan Commitment, SCE PPA LC Loan Commitment or DSR LC Loan Commitment Amount pursuant to the terms of this Agreement which reduces the Material Construction Contract LC Loan Commitment Amount, Shell PPA LC Loan Commitment, SCE PPA LC Loan Commitment or DSR LC Loan Commitment Amount below the Material Construction Contract LC Issuing Commitment Amount, Shell PPA LC Issuing Commitment Amount, SCE PPA LC Issuing Commitment Amount or DSR LC Issuing Commitment Amount, respectively, shall result in an automatic and corresponding reduction of the Material Construction Contract LC Issuing Commitment Amount, Shell PPA LC Issuing Commitment Amount, SCE PPA LC Issuing Commitment Amount and/or DSR LC Issuing Commitment Amount, as applicable, to an aggregate amount not in excess of the Material Construction Contract LC Loan Commitment Amount, Shell PPA LC Loan Commitment Amount, SCE PPA LC Loan Commitment Amount and/or DSR LC Loan Commitment Amount, as applicable, as so reduced; <u>provided further</u>, <u>however</u>, that (a) in no event shall a Borrower be permitted to reduce the Material Construction Contract LC Loan Commitments, Shell PPA LC Loan Commitments, SCE PPA LC Loan Commitments and DSR LC Loan Commitments below the sum of (i) with respect to Material Construction Contract LC Loan Commitments, the aggregate outstanding principal amount of all Material Construction Contract LC Loans of all Material Construction Contract LC Loan Lenders plus the aggregate Material Construction Contract LC Outstandings of all Material Construction Contract LC Loan Lenders, (ii) with respect to Shell PPA LC Loan Commitments, the aggregate outstanding principal amount of all Shell PPA LC Loans of all Shell PPA LC Loan Lenders plus the aggregate Shell PPA LC Outstandings of all Shell PPA LC Loan Lenders, (iii) (iii) with respect to SCE PPA LC Loan Commitments, the aggregate outstanding principal amount of all SCE PPA LC Loans of all SCE PPA LC Loan Lenders plus the aggregate SCE PPA LC Outstandings of all SCE PPA LC Loan Lenders and (iv) with respect to DSR LC Loan Commitments, the aggregate outstanding principal amount of all DSR LC Loans of all DSR LC Loan Lenders plus the aggregate DSR LC Outstandings of all DSR LC Loan Lenders, and (b) any such reduction of Material Construction Contract LC Commitments, Shell PPA LC Commitments, SCE PPA LC Commitments or DSR LC Commitments requires the written confirmation from an Authorized Officer of the applicable Borrower addressed to the Administrative Agent that such commitments or letter of credit is no longer required in accordance with the terms of the Material Project Documents, or because the DSR Requirement has otherwise been met, as applicable. In connection with any reduction or termination of any Commitment Amount hereunder, in the case of a reduction or termination of the Construction Loan Commitment or the TRABL Commitment, the applicable Borrower shall deliver a certificate of an Authorized Officer of the applicable Borrower addressed to the Administrative Agent certifying that, after giving effect to such reduction or termination of such Commitment Amount, the remaining Available Construction Loan Commitment and the Available TRABL Loan Commitment, together with funds on deposit in the Construction Account, are sufficient to

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pay the estimated remaining Total Project Costs and to achieve Term Conversion prior to the Term Conversion Deadline, which such certification shall be confirmed by the Independent Engineer.

SECTION 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Borrowing Procedures; Funding Reliance</u>.

SECTION 2.3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Loans and Term Loans</u>. (a) Subject to<u>[Section 2.1.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>[Section 5.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) by delivering a Borrowing Request to the Administrative Agent on or before 12:00 p.m. on a Business Day (for Base Rate Loans) or a U.S. Government Securities Business Day (for SOFR Loans) occurring prior to the Construction Loan Commitment Termination Date, the Cape Phase 1 Borrower may from time to time irrevocably request that a Borrowing be made, in a minimum amount of One Million Dollars ($1,000,000) and an integral multiple of One Hundred Thousand Dollars ($100,000) or in the unused amount of the Construction Loan Commitment; <u>provided</u> that the Administrative Agent has received such request not later than 12:00 p.m. (i) not less than three (3) Business Days prior to the date of the requested Borrowing in the case of Base Rate Loans, or (ii) three (3) U.S. Government Securities Business Days prior to the date of the requested Borrowing in the case of SOFR Loans (or one (1) U.S. Government Securities Business Day prior to the date of the requested Borrowing in the case of a Borrowing on the Closing Date). Each such irrevocable request shall be made in the form of a Borrowing Request. On the terms and subject to the conditions of this Agreement, each Borrowing shall be comprised of the Type of Loans requested by the Cape Phase 1 Borrower, and shall be made on the Business Day, in each case as specified in such Borrowing Request. If no election as to the Type of a Borrowing is specified in the applicable Borrowing Request, then the requested Borrowing shall be a Borrowing for SOFR Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the case of Construction Loans, as soon as reasonably practicable (but in no event later than 11:00 a.m.) on such Business Day specified in the Borrowing Request, each Lender that has a Construction Loan Commitment shall deposit with the Administrative Agent same day funds in an amount equal to such Lender's Construction Loan Percentage *multiplied by* the amount of the requested Borrowing. Such deposit will be made to an account which the Administrative Agent shall specify from time to time by notice to the Lenders. To the extent funds are received from the Lenders, the Administrative Agent shall, on or prior to 3:00 p.m. on such Business Day specified in the Borrowing Request, make such funds available to, or at the direction of, the Cape Phase 1 Borrower by wire transfer to the account that the Cape Phase 1 Borrower shall have specified in the Borrowing Request. No Lender's obligation to make any Loan shall be affected by any other Lender's failure to make any Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Unless the Administrative Agent shall have been notified in writing by any Lender prior to 3:00 p.m. on the Business Day prior to the Borrowing that such Lender does not intend to make available to the Administrative Agent the amount of such Lender's Construction Loan requested on the date of the applicable Borrowing, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date and the Administrative Agent may (acting at the direction of the Required Lenders), in its discretion, but shall not be obligated to, make available to the Cape Phase 1 Borrower a corresponding amount on such date. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender and the Administrative Agent has made available to the

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Cape Phase 1 Borrower a corresponding amount, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender together with interest thereon, for each day from such date until the date such amount is paid to the Administrative Agent, at the greater of (x) the Federal Funds Rate and (y) the customary rate set by the Administrative Agent for the correction of errors among banks. In the event that (i) the Administrative Agent declines to make a requested amount available to the Cape Phase 1 Borrower until such time as all applicable Lenders have made payment to the Administrative Agent, (ii) a Lender fails to fund to the Administrative Agent all or any portion of the Loans required to be funded by such Lender hereunder prior to the time specified in this Agreement, and (iii) such Lender's failure results in the Administrative Agent failing to make a corresponding amount available to the Cape Phase 1 Borrower on the date of such Borrowing, at the Administrative Agent's (acting at the direction of the Required Lenders) option, such Lender shall not receive interest hereunder with respect to the requested amount of such Lender's Loans for the period commencing with the time specified in this Agreement for receipt of payment by the Cape Phase 1 Borrower through and including the time of the Cape Phase 1 Borrower's receipt of the requested amount. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent's demand therefor (and the Administrative Agent has made available to the Cape Phase 1 Borrower a corresponding amount), the Administrative Agent shall promptly notify the Cape Phase 1 Borrower and the Cape Phase 1 Borrower shall immediately pay such corresponding amount to the Administrative Agent together with interest thereon, for each day from the date of such Borrowing until the date such amount is paid to the Administrative Agent, at the greater of (x) the Federal Funds Rate and (y) the customary rate set by the Administrative Agent for the correction of errors among banks. Nothing in this <u>Section 2.3</u> shall be deemed to relieve any Lender from its obligation to fulfill its Commitments hereunder or to prejudice any rights that the Cape Phase 1 Borrower may have against any Lender as a result of any default by such Lender hereunder.

SECTION 2.3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

SECTION 2.3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>TRABL Loans</u>. (a) Subject to <u>Section 2.1.3</u> and<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) by delivering a Borrowing Request to the Administrative Agent on or before 12:00 p.m. on a Business Day (for Base Rate Loans) or a U.S. Government Securities Business Day (for SOFR Loans) prior to the TRABL Commitment Termination Date, the WellCo Borrower may from time to time irrevocably request that a Borrowing be made, in a minimum amount of One Million Dollars ($1,000,000) and an integral multiple of One Hundred Thousand Dollars ($100,000) or in the unused amount of the TRABL Commitment; <u>provided</u> that the Administrative Agent has received such request not later than 12:00 p.m. (i) not less than three (3) Business Days prior to the date of the requested Borrowing in the case of Base Rate Loans, or (ii) three (3) U.S. Government Securities Business Days prior to the date of the requested Borrowing in the case of SOFR Loans (or one (1) U.S. Government Securities Business Day prior to the date of the requested Borrowing in the case of a Borrowing on the Closing Date); and provided further that the WellCo Borrower shall not be permitted to make a Borrowing Request for any TRABL Loan until the entire Construction Loan Commitment Amount has been borrowed. Each such irrevocable request shall be made in the form of a Borrowing Request. On the terms and subject to the conditions of this Agreement, each Borrowing shall be comprised of the Type of Loans requested by the WellCo Borrower and shall be made on the Business Day or U.S. Government Securities Business Day, in each case as specified in such Borrowing Request. If no election as to the Type of a Borrowing is specified in the

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applicable Borrowing Request, then the requested Borrowing shall be a Borrowing for Base Rate Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the case of TRABL Loans, as soon as reasonably practicable (but in no event later than 11:00 a.m.) on such Business Day or U.S. Government Securities Business Day specified in the Borrowing Request, each Lender that has a TRABL Loan Commitment shall deposit with the Administrative Agent same day funds in an amount equal to such Lender's TRABL Percentage *multiplied by* the amount of the requested Borrowing. Such deposit will be made to an account which the Administrative Agent shall specify from time to time by notice to the Lenders. To the extent funds are received from the Lenders, the Administrative Agent shall, on or prior to 3:00 p.m. on such Business Day or U.S. Government Securities Business Day specified in the Borrowing Request, make such funds available to, or at the direction of, the WellCo Borrower by wire transfer to the account that the WellCo Borrower shall have specified in the Borrowing Request. No Lender's obligation to make any TRABL Loan shall be affected by any other Lender's failure to make any TRABL Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Unless the Administrative Agent shall have been notified in writing by any Lender prior to 3:00 p.m. on the Business Day prior to the Borrowing that such Lender does not intend to make available to the Administrative Agent the amount of such Lender's TRABL Loan requested on the date of the applicable Borrowing, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date and the Administrative Agent may (acting at the direction of the Required Lenders), in its discretion, but shall not be obligated to, make available to the WellCo Borrower a corresponding amount on such date. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender and the Administrative Agent has made available to the WellCo Borrower a corresponding amount, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender together with interest thereon, for each day from such date until the date such amount is paid to the Administrative Agent, at the greater of (x) the Federal Funds Rate and (y) the customary rate set by the Administrative Agent for the correction of errors among banks. In the event that (i) the Administrative Agent declines to make a requested amount available to the WellCo Borrower until such time as all applicable Lenders have made payment to the Administrative Agent, (ii) a Lender fails to fund to the Administrative Agent all or any portion of the TRABL Loans required to be funded by such Lender hereunder prior to the time specified in this Agreement, and (iii) such Lender's failure results in the Administrative Agent failing to make a corresponding amount available to the WellCo Borrower on the date of such Borrowing, at the Administrative Agent's option, such Lender shall not receive interest hereunder with respect to the requested amount of such Lender's TRABL Loans for the period commencing with the time specified in this Agreement for receipt of payment by the WellCo Borrower through and including the time of the WellCo Borrower's receipt of the requested amount. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent's demand therefor (and the Administrative Agent has made available to the WellCo Borrower a corresponding amount), the Administrative Agent shall promptly notify the WellCo Borrower and the WellCo Borrower shall immediately pay such corresponding amount to the Administrative Agent together with interest thereon, for each day from the date of such Borrowing until the date such amount is paid to the Administrative Agent, at the greater of (x) the Federal Funds Rate and (y) the customary rate set by the Administrative Agent for the correction of errors among banks. Nothing in this <u>Section 2.3</u> shall be deemed to relieve any

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Lender from its obligation to fulfill its Commitments hereunder or to prejudice any rights that the WellCo Borrower may have against any Lender as a result of any default by such Lender hereunder.

SECTION 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Continuation and Conversion Elections</u>. By delivering a Continuation/Conversion Notice to the Administrative Agent on or before 12:00 p.m. on a Business Day, a Borrower may from time to time irrevocably elect, on not less than one (1) Business Day's notice in the case of Base Rate Loans, or three (3) U.S. Government Securities Business Days' notice in the case of SOFR Loans, that all, or any portion be, in the case of Base Rate Loans, converted into SOFR Loans, or be, in the case of SOFR Loans, converted into Base Rate Loans or continued as SOFR Loans; <u>provided</u> that no SOFR Loan may be converted into a Base Rate Loan on any date other than the Quarterly Payment Date of such SOFR Loan. In the absence of the delivery of a Continuation/Conversion Notice with respect to any SOFR Loan, at least three (3) U.S. Government Securities Business Days before the Quarterly Payment Date with respect thereto, any such SOFR Loan shall, on such last day, automatically be continued as a SOFR Loan; <u>provided</u>, <u>however</u>, that (a) each such conversion or continuation shall be prorated among the applicable outstanding Loans of all Lenders that have made such Loans, and (b) no portion of the outstanding principal amount of any Loans may be continued as, or be converted into, SOFR Loans when any Event of Default has occurred and is continuing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the applicable Borrower, then, so long as such Event of Default is continuing, unless repaid as provided herein, each SOFR Loan shall automatically be converted to a Base Rate Loan immediately.

SECTION 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Letters of Credit Issuance Procedures</u>.

SECTION 2.6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Issuance Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;By delivering to the Administrative Agent and the applicable LC Issuer an Issuance Request and to the extent required by the applicable LC Issuer, delivering to the applicable LC Issuer (with a copy to the Administrative Agent) a completed Letter of Credit Application, appropriately completed and signed by an Authorized Officer of the applicable Borrower, on or before 1:00 p.m. on a Business Day, the applicable Borrower, for itself or on behalf of its applicable Subsidiary, may from time to time irrevocably request on not less than five (5) (or, in the case of a Letter of Credit to be issued on the Closing Date, two (2)) Business Days' notice, in the case of an initial issuance of a Letter of Credit, and not less than five (5) Business Days' prior notice, in the case of a request for the extension of the Stated Expiry Date of a Letter of Credit (in each case, unless a shorter notice period is agreed to by the applicable LC Issuer, in its sole discretion), that an LC Issuer issue, or extend the Stated Expiry Date of,

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Letters of Credit, solely for the purposes described in<u>[Section 7.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>provided</u> the applicable Borrower shall, in such Issuance Request, request each LC Issuer to issue each applicable Letter of Credit *pro rata* with such LC Issuer's applicable LC Issuing Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each such Letter of Credit issued in accordance with this <u>Section 2.6</u> shall have (i) an expiry date that is the earlier of (x) twelve (12) months from the date of issuance of such Letter of Credit or such longer period as may be agreed to by the applicable LC Issuer and (y) the earlier of (A) in the case of each Material Construction Contract Letter of Credit issued by an Material Construction Contract LC Issuer, the Material Construction Contract LC Loan Commitment Termination Date, (B) in the case of each Shell PPA Letter of Credit issued by a Shell PPA LC Issuer, the Shell PPA LC Loan Commitment Termination Date, (C) in the case of each SCE PPA Letter of Credit issued by an SCE PPA LC Issuer, the SCE PPA LC Loan Commitment Termination Date and (D) in the case of DSR Letters of Credit issued by each DSR LC Issuer, the DSR LC Loan Commitment Termination Date; and (ii) automatic extension provisions (if requested by a Borrower) for additional periods of up to twelve (12) months or such longer period as agreed to by the applicable LC Issuer; <u>provided</u> that any such Letter of Credit must permit the applicable LC Issuer to prevent any such extension at least once per annum (commencing with the date of issuance of such Letter of Credit) by giving notice to the beneficiary (with a copy to the applicable Borrower and the Administrative Agent, if requested to do so by the Borrower or the Administrative Agent) thereof in accordance with such Letter of Credit; <u>provided further</u> that notwithstanding the foregoing, the final expiry date of any such Letter of Credit shall not occur after (w) in the case of the Material Construction Contract Letters of Credit issued by each Material Construction Contract LC Issuer, the date that is five (5) Business Days prior to the earlier of the Material Construction Contract LC Loan Maturity Date and the Material Construction Contract LC Loan Commitment Termination Date, (x) in the case of the Shell PPA Letters of Credit issued by each Shell PPA LC Issuer, the date that is five (5) Business Days prior to the earlier of the Shell PPA LC Loan Maturity Date and the Shell PPA LC Loan Commitment Termination Date, (y) in the case of the SCE PPA Letters of Credit issued by each SCE PPA LC Issuer, the date that is five (5) Business Days prior to the earlier of the SCE PPA LC Loan Maturity Date and the SCE PPA LC Loan Commitment Termination Date, and (z) in the case of DSR Letters of Credit issued by each DSR LC Issuer, the date that is five (5) Business Days prior to the earlier of the DSR LC Loan Maturity Date and the DSR LC Loan Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this <u>Section 2.6</u>, (i) any Letter of Credit may expire after the date referred to in <u>paragraph (b)</u> above to the extent cash collateralized or backstopped pursuant to arrangements reasonably acceptable to the applicable LC Issuer and (ii) no LC Loan Lender shall be required to fund participations in any Letter of Credit after its applicable LC Loan Maturity Date. Any automatic extension provided under <u>paragraph (b)</u> above shall not be considered a Borrowing hereunder or otherwise be subject to the conditions set forth in<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) Notwithstanding anything herein to the contrary, no LC Issuer shall be required to permit any automatic renewal of any applicable Letter of Credit if a Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Each LC Issuer will use reasonable efforts to issue Letters of Credit in substantially the form provided by the beneficiary of such Letter of Credit to the extent such form is consistent with such LC Issuer's customary practices and internal policies and

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procedures, consistently applied. Unless otherwise expressly agreed by the applicable LC Issuer and the applicable Borrower, when a Letter of Credit is issued, the ISP Rules shall apply to each standby Letter of Credit and as to all matters not governed thereby, the laws of the State of New York shall apply to such matters. Notwithstanding the foregoing, no LC Issuer shall be responsible to a Borrower for, and such LC Issuer's rights and remedies against the Borrowers shall not be impaired by, any action or inaction of such LC Issuer required or permitted under any law, order, or practice that is required or permitted to be applied to any Letter of Credit or this Agreement, including the Applicable Laws or any order of a jurisdiction where such LC Issuer or the beneficiary is located, the practice stated in the ISP or UCP, as applicable, or in the decisions, opinions, practice statements, or official commentary of the International Chamber of Commerce Banking Commission, the Bankers Association for Finance and Trade (BAFT), or the Institute of International Banking Law & Practice, whether or not any Letter of Credit chooses such Applicable Laws or practice rules. Each LC Issuer will make available to the beneficiary thereof the original of the Letter of Credit which it issues. No LC Issuer will be required to issue a Letter of Credit if the issuance of such Letter of Credit would violate one or more policies of such LC Issuer applicable to letters of credit generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in this <u>Section 2.6</u> to the contrary, each LC Issuer or any of its Affiliates: (i) shall not be obligated to issue any commercial trade or direct pay (as opposed to standby) Letter of Credit, (ii) shall only be required to issue Letters of Credit in Dollars, (iii) shall not be required to issue a Letter of Credit without a final expiry date, which final expiry date shall be determined in accordance with the preceding <u>clause (b)</u>, and (iv) shall not be obligated to issue any letters of credit to Persons outside of the United States.

SECTION 2.6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Participations</u>. Immediately upon the issuance of each Letter of Credit (or an increase in the Stated Amount thereof) by the relevant LC Issuer, and without further action, (a) each Material Construction Contract LC Loan Lender that has committed to participate in such Letter of Credit shall be deemed to have irrevocably and unconditionally purchased, and hereby agrees to irrevocably and unconditionally purchase, from the applicable Material Construction Contract LC Issuer, a participation in the Material Construction Contract Letter of Credit issued by such Material Construction Contract LC Issuer under its Material Construction Contract LC Tranche and any drawings honored thereunder in an amount equal to such Material Construction Contract LC Loan Lender's Material Construction Contract LC Percentage of the Stated Amount under such Material Construction Contract Letter of Credit, (b) each Shell PPA LC Loan Lender that has committed to participate in such Letter of Credit shall be deemed to have irrevocably and unconditionally purchased, and hereby agrees to irrevocably and unconditionally purchase, from the applicable Shell PPA LC Issuer, a participation in the Shell PPA Letter of Credit issued by such Shell PPA LC Issuer under its Shell PPA LC Tranche and any drawings honored thereunder in an amount equal to such Shell PPA LC Loan Lender's Shell PPA LC Percentage of the Stated Amount under such Shell PPA Letter of Credit, (c) each SCE PPA LC Loan Lender that has committed to participate in such Letter of Credit shall be deemed to have irrevocably and unconditionally purchased, and hereby agrees to irrevocably and unconditionally purchase, from the applicable SCE PPA LC Issuer, a participation in the SCE PPA Letter of Credit issued by such SCE PPA LC Issuer under its SCE PPA LC Tranche and any drawings honored thereunder in an amount equal to such SCE PPA LC Loan Lender's SCE PPA LC Percentage of the Stated Amount under such SCE PPA Letter of Credit and (d) each DSR LC Loan Lender that has committed to participate

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in such Letter of Credit shall be deemed to have irrevocably and unconditionally purchased, and hereby agrees to irrevocably and unconditionally purchase, from the applicable DSR LC Issuer, a participation in the DSR Letter of Credit issued by such DSR LC Issuer under its respective DSR LC Tranche and any drawings honored thereunder in an amount equal to such DSR LC Loan Lender's DSR LC Percentage of the Stated Amount under such DSR Letter of Credit.

SECTION 2.6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Disbursements</u>. (a) The applicable LC Issuer will notify the applicable Borrower and the Administrative Agent promptly of the presentment for payment of any Letter of Credit issued by such LC Issuer, together with notice of the date (the "<u>Disbursement Date</u>") such payment shall be made (each such payment, a "<u>Disbursement</u>"). Subject to the terms and provisions of such Letter of Credit and this Agreement, the applicable LC Issuer shall make such payment to the beneficiary (or its designee) of such Letter of Credit and shall notify the applicable Borrower of the making of such payment. Prior to 1:00 p.m. on the Business Day immediately following the Disbursement Date, the applicable Borrower will reimburse such LC Issuer, for all amounts which such LC Issuer has disbursed under such Letter of Credit. Without limiting in any way the foregoing or the provisions of <u>clause (b)</u> below, and notwithstanding anything to the contrary contained herein or in any separate application for any Letter of Credit, the applicable Borrower hereby acknowledges and agrees that it shall be obligated to reimburse each LC Issuer upon each Disbursement of a Letter of Credit, and it shall be deemed to be the obligor for purposes of each such Letter of Credit issued hereunder, regardless of whether or not the notice of payment by the applicable LC Issuer is delivered as described above, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to<u>[Section 2.6.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) in the event a Disbursement with respect to a Letter of Credit is not reimbursed by the applicable Borrower in accordance with the terms of <u>clause (a)</u>, (i) unless the applicable Borrower shall have notified the Administrative Agent and the applicable LC Issuer prior to 10:00 a.m. (New York City time) on the Business Day immediately following the applicable Disbursement Date that such Borrower intends to reimburse such LC Issuer for such Disbursement with funds other than the proceeds of LC Loans (as defined below), such Borrower shall be deemed to have given a timely Borrowing Request to the Administrative Agent requesting the LC Loan Lenders with LC Loan Commitments under the applicable LC Tranche to make Base Rate Loans (each, an "<u>LC Loan</u>") on the date of such Disbursement in an amount in Dollars equal to the amount of such Disbursement (subject to a Borrower's right under <u>Section 2.4</u> to convert Base Rate Loans to SOFR Loans), which unless an Event of Default under <u>[Section 9.1.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(applicable to the Borrowers) has occurred and is continuing, shall be deemed to be funded by the applicable LC Loan Lenders on the date such Disbursement is made in Base Rate Loans corresponding to the amount of the Disbursement and (ii) to the extent such LC Issuer has potential Fronting Exposure with respect to such Letter of Credit, unless an Event of Default under<u>[Section 9.1.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(applicable to the Borrowers) has occurred and is continuing and notwithstanding anything to the contrary contained in <u>Section 2.3</u>, each LC Loan Lender with LC Loan Commitments under the applicable LC Tranche shall, on the date of such Disbursement in satisfaction of its participation therein, make LC Loans on a *pro rata* basis, that are Base Rate Loans in the amount of the Disbursement, the proceeds of which shall be paid directly to such LC Issuer; <u>provided</u> that, if for any reason proceeds of LC Loans are not received by such LC Issuer on the date of such Disbursement in an amount equal to the amount of the Disbursement, the applicable Borrower shall reimburse such LC Issuer, on demand, in an amount in same day

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funds equal to the excess of the amount of such Disbursement over the aggregate amount of such LC Loans, if any, which are so received.

SECTION 2.6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement</u>. The obligation (a "<u>Reimbursement Obligation</u>") of a Borrower under<u>[Section 2.6.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>to reimburse an LC Issuer with respect to each Disbursement (including interest thereon) and each applicable LC Loan Lender's obligation under [Section 2.6.2](#i918c83e63c6d41b4b3424c701423fa52_1)to pay to the applicable LC Issuer its applicable LC Percentage of any drawing under a Letter of Credit shall be absolute, irrevocable and unconditional under any and all circumstances, including any of the following circumstances: (a) any lack of validity or enforceability of any Letter of Credit or this Agreement or any of the other Loan Documents, or any term or provision therein, (b) any documents presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (c) payment by an LC Issuer under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, (d) any amendment or waiver of or any consent to departure from all or any terms of any of the relevant Transaction Documents, (e) the occurrence of a Default or Event of Default, (f) the existence of any claim of setoff, counterclaim or defense to payment which a Borrower or such Lender may have or have had against such LC Issuer or any other Lender or any other Person, including any defense based upon the failure of any Disbursement to conform to the terms of the applicable Letter of Credit or any non-application or misapplication by the beneficiary of the proceeds of such Letter of Credit or any discharge of a Borrower or any other Loan Party, (g) any breach of contract or dispute among or between a Borrower, an LC Loan Lender, the Administrative Agent, any Lender or any other Person, (h) any non-application or misapplication by the beneficiary of a Letter of Credit of the proceeds of any Disbursement or any other act or omission of such beneficiary in connection with such Letter of Credit, (i) any failure to preserve or protect any Collateral, any failure to perfect or preserve the perfection of any Lien thereon, or the release of any of the Collateral securing the performance or observance of the terms of this Agreement or any of the other Loan Documents, or (j) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this<u>[Section 2.6.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) constitute a legal or equitable discharge of, or provide a right of setoff against, a Borrower's obligations hereunder or an LC Loan Lender's obligation hereunder; <u>provided</u>, <u>however</u>, that after paying in full its Reimbursement Obligation hereunder or paying its applicable Percentage of any drawing under a Letter of Credit, as the case may be, nothing herein shall adversely affect the right of a Borrower or such LC Loan Lender, as the case may be, to commence any proceeding against such LC Issuer for any direct damages resulting from any wrongful Disbursement made by such LC Issuer under a Letter of Credit as a result of acts or omissions constituting gross negligence or willful misconduct on the part of such LC Issuer (as determined by a final and non-appealable decision of a court of competent jurisdiction). The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the applicable LC Issuer (as determined by a final and non-appealable decision of a court of competent jurisdiction), such LC Issuer shall be deemed to have exercised care in each such determination and each refusal to issue a Letter of Credit. In furtherance of the foregoing and without limiting the generality thereof, the parties hereto agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the applicable LC Issuer may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, or refuse to accept and

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make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Article 29(a) of the UCP or Rule 3.13 or Rule 3.14 of the ISP or similar terms of the Letter of Credit itself, or if compliant documents have been presented but not yet honored, such Letter of Credit shall be deemed to be "outstanding" and "undrawn" in the amount so remaining available to be paid, and the obligations of the applicable Borrower and each LC Loan Lender shall remain in full force and effect until the LC Issuer and the LC Loan Lenders shall have no further obligations to make any payments or disbursements under any circumstances with respect to such Letter of Credit.

SECTION 2.6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Deemed Disbursements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(x) Upon the occurrence and during the continuation of any Default or Event of Default under<u>[Section 9.1.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or (y) at the direction of the Required Lenders, by written notice to the Borrowers pursuant to <u>Section 9.3</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)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate Stated Amount of all Letters of Credit shall, without demand upon or notice to the Borrowers or any other Person, be deemed to have been paid or disbursed by the LC Issuers of such Letters of Credit (notwithstanding that such amount may not in fact have been paid or disbursed);

&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)&nbsp;&nbsp;&nbsp;&nbsp;the Borrowers shall be immediately obligated to reimburse each applicable LC Issuer for the amount in fact paid or disbursed by such LC Issuer; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the Borrowers shall be immediately obligated to deposit with (or for the benefit of) each LC Issuer an amount equal to one hundred and two percent (102%) of the amount deemed to have been paid or disbursed (and not in fact paid or disbursed) by such LC Issuer pursuant to the preceding <u>clause (i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Amounts payable by a Borrower pursuant to<u>[Section 2.6.5(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall be deposited in immediately available funds with the Administrative Agent and held as collateral security for the Reimbursement Obligations. When all Defaults giving rise to the deemed disbursements under this Section have been cured or waived, the Administrative Agent shall return to the Borrowers all amounts then on deposit with the Administrative Agent pursuant to this Section (together with any interest accrued thereon) which have not been applied to the satisfaction of the Reimbursement Obligations.

SECTION 2.6.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Nature of Reimbursement Obligations</u>. The Borrowers, each other Obligor and, to the extent set forth in<u>[Section 2.6.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) each LC Loan Lender, as applicable, shall assume all risks of the acts, omissions or misuse of any applicable Letter of Credit by the beneficiary thereof. No LC Issuer shall be responsible for, and the Reimbursement Obligations of the Borrowers, each other Loan Party and the LC Loan Lenders shall not be affected by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the form, validity, sufficiency, accuracy, genuineness or legal effect of any Letter of Credit or any document submitted by any party in connection with the application for and issuance of a Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the form, validity, sufficiency, accuracy, genuineness or legal effect of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or the proceeds thereof in whole or in part, which may prove to be invalid or ineffective for any reason;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;failure of the beneficiary to comply fully with conditions required in order to demand payment under a Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any loss or delay in the transmission or otherwise of any document or draft required in order to make a Disbursement under a Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;any adverse change in the business, operations, properties, assets, conditions (financial or otherwise) or prospects of a Borrower or any other Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any circumstance that might otherwise constitute a defense available to, or a discharge of, a Borrower or any other Loan Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;the fact that an Event of Default or Default shall have occurred and be continuing.

None of the foregoing shall affect, impair or prevent the vesting of any of the rights or powers granted to any LC Issuer or any LC Loan Lender hereunder. In furtherance and not in limitation or derogation of any of the foregoing, any action taken or omitted to be taken by any LC Issuer in good faith (and not constituting gross negligence or willful misconduct (as determined by a final and non-appealable decision of a court of competent jurisdiction)) shall not put any LC Issuer under any resulting liability to any Loan Party or any Credit Party, as the case may be.

SECTION 2.6.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Separate Treatment of each LC Tranche</u>. Each LC Tranche of LC Issuing Commitments shall be separate and independent of each other LC Tranche of LC Issuing Commitments and no LC Issuer or LC Loan Lender shall have any commitment, exposure or other obligation in respect of any LC Tranche other than the LC Tranches identified in respect thereof in <u>Schedule II</u>, subject to any assignment, adjustment or reduction pursuant to the terms and conditions hereof.

SECTION 2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Register; Notes</u>. The Register shall be maintained on the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Lender may maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrowers to such Lender resulting from each Loan made by such Lender, including the amounts of principal, interest and fees payable and paid to such Lender from time to time hereunder. In the case of a Lender that does not request, pursuant to <u>clause (c)</u> below, execution and delivery of a Note evidencing the Loans made by such Lender to a Borrower, such account or accounts shall, to the extent not inconsistent with the notations made by the Administrative Agent in the Register, be conclusive and binding on the Borrowers

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absent manifest error; <u>provided</u>, <u>however</u>, that the failure of any Lender to maintain such account or accounts or any error in any such account shall not limit or otherwise affect any Obligations of any Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Borrower hereby designates the Administrative Agent to serve as the Borrowers' agent, solely for the purpose of this clause, to maintain, and the Administrative Agent shall maintain at one of its offices in the United States, a register (the "<u>Register</u>") on which the Administrative Agent will record each Lender's Commitments, the principal amounts (and stated interest) of the Loans made by each Lender and each repayment in respect of the principal amount of the Loans of each Lender and annexed to which the Administrative Agent shall retain a copy of each Lender Assignment Agreement delivered to the Administrative Agent pursuant to <u>Section 11.11</u>. Failure to make any recordation, or any error in such recordation, shall not affect a Borrower's obligation in respect of such Loans. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrowers, the Administrative Agent and the Lenders shall treat each Person in whose name a Loan (and as provided in <u>clause (c)</u> below the Note evidencing such Loan, if any) is registered as the owner thereof for all purposes of this Agreement, notwithstanding notice or any provision herein to the contrary. A Lender's Commitment and the Loans made pursuant thereto may be assigned or otherwise transferred in whole or in part only by registration of such assignment or transfer in the Register. Any assignment or transfer of a Lender's Commitment or the Loans made pursuant thereto shall be registered in the Register only upon delivery to the Administrative Agent of a Lender Assignment Agreement duly executed by the assignor thereof and the compliance by the parties thereto with the other applicable requirements of <u>Section 11.11</u>. No assignment or transfer of a Lender's Commitment or the Loans made pursuant thereto shall be effective unless such assignment or transfer shall have been recorded in the Register by the Administrative Agent as provided in this <u>Section 2.7(b)</u>. The Register shall be available for inspection by the Borrowers and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each applicable Borrower agrees that, upon the written request of the Administrative Agent (at the direction of any Lender), the applicable Borrower will execute and deliver to such Lender, as applicable, a Construction Loan Note evidencing the Construction Loans, a TRABL Loan Note evidencing the TRABL Loans, a Term Loan Note evidencing the Term Loans, a Material Construction Contract LC Note evidencing Material Construction Contract LC Loans, a Shell PPA LC Note evidencing Shell PPA LC Loans, an SCE PPA LC Note evidencing SCE PPA LC Loans or a DSR LC Note evidencing DSR LC Loans made by such Lender. Each applicable Borrower hereby irrevocably authorizes each Lender to make (or cause to be made) appropriate notations on the grid attached to such Lender's Notes (or on any continuation of such grid), which notations, if made, shall evidence, <u>inter alia</u>, the date of, the outstanding principal amount of, and the interest rate and the Quarterly Payment Date applicable to the Loans evidenced thereby. Such notations shall, to the extent not inconsistent with the notations made by the Administrative Agent in the Register, be conclusive and binding on the Borrowers absent manifest error; <u>provided</u>, <u>however</u>, that the failure of any Lender to make any such notations or any error in any such notations shall not limit or otherwise affect any Obligations of any Loan Party. A Note and the Obligations evidenced thereby may be assigned or otherwise transferred in whole or in part only in accordance with <u>Section 11.11</u>.

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**ARTICLE III**

**<u>REPAYMENTS, PREPAYMENTS, INTEREST AND FEES</u>**

SECTION 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Repayments and Prepayments; Application</u>. Each Borrower agrees that the Loans shall be repaid and prepaid pursuant to the following terms.

SECTION 3.1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Repayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Loans</u>. The Cape Phase 1 Borrower shall repay to the Administrative Agent (for the ratable account of the Construction Loan Lenders) in full the then outstanding principal amount of the Construction Loans on the Construction Loan Maturity Date (including through conversion to Term Loans in accordance with <u>Section 2.1.2(a)</u>), together with all interest, fees, and all other Obligations then accrued in respect of the Construction Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>TRABL Loans</u>. The WellCo Borrower shall repay to the Administrative Agent (for the ratable account of the TRABL Lenders) in full the then outstanding principal amount of the TRABL Loans on the TRABL Maturity Date, together with all interest, fees, and all other Obligations then accrued in respect of the TRABL Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>LC Loans</u>. Each applicable Borrower shall repay to the Administrative Agent (for the ratable account of the LC Loan Lenders) in full the unpaid principal amount of each LC Loan upon the applicable Stated Maturity Date therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Term Loans</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)&nbsp;&nbsp;&nbsp;&nbsp;On each Term Loan Principal Payment Date, the Cape Phase 1 Borrower shall repay an amount equal to the applicable principal amount of the Term Loans set forth opposite such Term Loan Principal Payment Date on the Amortization Schedule.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Any remaining interest, fees, and all other Obligations then accrued in respect of the Term Loans, if any, shall be due and payable on the Term Loan Maturity Date.

SECTION 3.1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Voluntary Prepayments</u>. Voluntary prepayments of the Loans may be made as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;From time to time on any Business Day, the Borrowers may make a voluntary prepayment, in whole or in part, of the outstanding principal amount of any Loans; <u>provided</u> 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;(i)&nbsp;&nbsp;&nbsp;&nbsp;any prepayment of Construction Loans is to be applied pro rata among the Construction Loans so prepaid of the same Type of all Lenders that have made such Construction Loans (to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1);

&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)&nbsp;&nbsp;&nbsp;&nbsp;any prepayment of TRABL Loans is to be applied pro rata among the TRABL Loans so prepaid of the same Type of all Lenders that have made such TRABL Loans (to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1);

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&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)&nbsp;&nbsp;&nbsp;&nbsp;any prepayment of Material Construction Contract LC Loans is to be applied pro rata among the Material Construction Contract LC Loans so prepaid of the same Type of all Material Construction Contract LC Loan Lenders that have made such Material Construction Contract LC Loans (to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1);

&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)&nbsp;&nbsp;&nbsp;&nbsp;any prepayment of Shell PPA LC Loans is to be applied pro rata among the Shell PPA LC Loans so prepaid of the same Type of all Shell PPA LC Loan Lenders that have made such Shell PPA LC Loans (to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1);

&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)&nbsp;&nbsp;&nbsp;&nbsp;any prepayment of SCE PPA LC Loans is to be applied pro rata among the SCE PPA LC Loans so prepaid of the same Type of all SCE PPA LC Loan Lenders that have made such SCE PPA LC Loans (to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1);

&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)&nbsp;&nbsp;&nbsp;&nbsp;any prepayment of DSR LC Loans is to be applied pro rata among the DSR LC Loans so prepaid of the same Type of all DSR LC Loan Lenders that have made such DSR LC Loans (to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1); 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)&nbsp;&nbsp;&nbsp;&nbsp;any prepayment of Term Loans is to be applied pro rata among the Term Loans so prepaid of the same Type of all Lenders that have made such Term Loans (to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;All such voluntary prepayments shall require at least one (1) Business Day (and at least three (3) U.S. Government Securities Business Days in the case of SOFR Loans) irrevocable prior written notice to the Administrative Agent (provided that, if a notice is conditioned upon the effectiveness of other credit facilities or any incurrence or issuance of debt or equity, such notice may be revoked by a Borrower (by written notice to the Administrative Agent) if such credit facilities do not become effective or such other transaction does not close, subject to the obligations of the Borrowers under<u>[Section 4.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Voluntary prepayments of any Loans shall be in an aggregate minimum amount of One Million Dollars ($1,000,000) and, in each case, an integral multiple of One Hundred Thousand Dollars ($100,000).

SECTION 3.1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Mandatory Prepayments</u>. Mandatory prepayments of the Loans shall be made as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;As of the date when the sum of (i) the aggregate outstanding principal amount of all Material Construction Contract LC Loans and (ii) the aggregate amount of all Material Construction Contract LC Outstandings exceeds the Material Construction Contract LC Loan Commitment Amount, the applicable Borrower shall make a mandatory prepayment of Material Construction Contract LC Loans and, if required under <u>Section 2.6.5</u>, Cash Collateralize all Material Construction Contract LC Outstandings, in an amount equal to such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;As of the date when the sum of (i) the aggregate outstanding principal amount of all Shell PPA LC Loans and (ii) the aggregate amount of all Shell PPA LC Outstandings exceeds the Shell PPA LC Loan Commitment Amount, the applicable Borrower shall make a mandatory prepayment of Shell PPA LC Loans and, if required under <u>Section 2.6.5</u>, Cash Collateralize all Shell PPA LC Outstandings, in an amount equal to such excess.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;As of the date when the sum of (i) the aggregate outstanding principal amount of all DSR LC Loans and (ii) the aggregate amount of all DSR LC Outstandings exceeds the DSR LC Loan Commitment Amount, the applicable Borrower shall make a mandatory prepayment of DSR LC Loans and, if required under <u>Section 2.6.5</u>, Cash Collateralize all DSR LC Outstandings, in an amount equal to such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;No later than ten (10) Business Days following the receipt by any Loan Party of any Net Debt Proceeds, the applicable Borrower shall deliver to the Administrative Agent a calculation of the amount of such Net Debt Proceeds available, and make a mandatory prepayment of the Loans in an amount equal to such Net Debt Proceeds, to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The applicable Borrower shall make a mandatory prepayment with proceeds available pursuant to <u>Section 3.05</u> (Extraordinary Proceeds Account) of the Depositary Agreement to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;No later than ten (10) Business Days following the receipt by any Loan Party of the proceeds of any Project Document Claim in excess of $300,000, the applicable Borrower shall deliver to the Administrative Agent a calculation of the amount of such Project Document Claim proceeds and make a mandatory prepayment of the Loans in an amount equal to such Project Document Claim proceeds, to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;No later than ten (10) Business Days following the receipt by any Obligor of any Tax Credit Policy Proceeds, the applicable Borrower shall deliver to the Administrative Agent a calculation of the amount of such proceeds available, and the applicable Borrower shall make a mandatory prepayment of the Loans in an amount equal to such Tax Credit Policy Proceeds, to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;No later than ten (10) Business Days following the receipt by any Loan Party of any Net Disposition Proceeds, the applicable Borrower shall deliver to the Administrative Agent a calculation of the amount of such proceeds available, and the applicable Borrower shall make a mandatory prepayment of the Loans in an amount equal to such Net Disposition Proceeds, to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;No later than one (1) Business Day following the receipt by any Loan Party of any distribution of ITC Transfer Proceeds on an ITC Transfer Funding Date, the WellCo Borrower shall make a mandatory prepayment of the TRABL Loans in an amount equal to one hundred percent (100%) of the ITC Transfer Proceeds received by any Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;On a Term Loan Principal Payment Date, if the Cape Phase 1 Borrower fails to satisfy the Distribution Conditions (Post Conversion Date) for the Measurement Period (other than as determined in accordance with clause (a) of the definition of "Measurement Period") immediately preceding such Term Loan Principal Payment Date, the Cape Phase 1 Borrower shall prepay the Loans with amounts that have been on deposit in the Distribution Suspense Account for such Measurement Period, to be applied as set forth in<u>[Section 3.1.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;On the Conversion Date, the Borrowers shall make a mandatory prepayment of the Construction Loans, if the Conversion Date Borrower Model demonstrates that the aggregate

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principal amount of the outstanding Construction Loans exceeds the Available Term Loan Capacity, the Borrowers shall prepay the Loans, on a pro rata basis, in an amount that causes the aggregate principal amount of such Loans to be less than or equal to the Available Term Loan Capacity calculated as of the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;In the event that no PTCs are sold during any calendar quarter after the Conversion Date (such period, a "<u>Transfer Quarter</u>") or fewer PTCs are sold in any Transfer Year (as defined in the PTC Transfer Agreement) than the Annual PTC Floor (as defined in the PTC Transfer Agreement) for such Transfer Year) by the date that is sixty (60) days following the expiration of such period, in each case solely due to any failure by the Cape Phase I Pledgor to achieve the applicable conditions precedent required for the PTC Transferee to pay the PTC Transfer Proceeds for the PTCs generated by the GenCo Facilities during such period (other than the condition precedent set forth in Section 2.4(j)(v) of the PTC Transfer Agreement), then no later than five (5) Business Days thereafter, the Cape Phase 1 Borrower shall update the then-current Borrower Model, to the reasonable satisfaction of the Required Lenders to account for such reduced PTC Transfer Proceeds going forward, and shall make a mandatory prepayment of the Term Loans in an amount that causes the aggregate principal amount of the Term Loans to be less than or equal to the Available Term Loan Capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Annual PTC Floor (as defined in the PTC Transfer Agreement) is reduced pursuant to the proviso in Section 2.1 of the PTC Transfer Agreement, then no later than five (5) Business Days thereafter, the Cape Phase 1 Borrower shall update the then-current Borrower Model, to the reasonable satisfaction of the Required Lenders, to account for such reduced PTC Transfer Proceeds going forward, and shall make a mandatory prepayment of the Loans in an amount that causes the aggregate principal amount of the Term Loans to be less than or equal to the Available Term Loan Capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;As of the date when the sum of (i) the aggregate outstanding principal amount of all SCE PPA LC Loans and (ii) the aggregate amount of all SCE PPA LC Outstandings exceeds the SCE PPA LC Loan Commitment Amount, the applicable Borrower shall make a mandatory prepayment of SCE PPA LC Loans and, if required under <u>Section 2.6.5</u>, Cash Collateralize all SCE PPA LC Outstandings, in an amount equal to such excess.

Each prepayment of any Loans made by the Borrowers pursuant to<u>[Section 3.1.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and this <u>[Section 3.1.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall be made together with (x) accrued and unpaid interest to the date of such prepayment on the principal amount prepaid if any such prepayment is a full prepayment of the Loans; <u>provided</u> that accrued and unpaid interest for any partial prepayment of the Loans shall be paid on the next Quarterly Payment Date following the applicable date of prepayment, and (y) any amounts owing pursuant to<u>[Section 4.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) For the avoidance of doubt, no premium or penalty shall be required in connection with the mandatory prepayment of any Loans. The Borrowers shall give prior written notice of any mandatory prepayment required under<u>[Section 3.1.3(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>[(f)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>(g),[(h)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) and<u>[(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>provided</u> that the failure to give such notice shall not relieve a Borrower of its obligation to make such mandatory prepayments on or prior to the dates set forth in such <u>clauses[(d), (e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[(f)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>(g),[(h)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) and<u>[(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) and the Borrower shall be permitted to make such mandatory prepayments on or prior to such dates. No amounts paid or prepaid with respect to TRABL Loans, Construction Loans or Term Loans may be reborrowed.

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SECTION 3.1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Application</u>. Amounts prepaid pursuant to <u>Section 3.1.2</u>, and <u>Section 3.1.3</u> shall be applied as set forth in this <u>Section 3.1.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each prepayment of Construction Loans and Term Loans made pursuant to <u>[Section 3.1.2(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall be applied to the remaining amortization payments (including, for the avoidance of doubt, the final payments on the Construction Loan Maturity Date or Term Loan Maturity Date, as applicable) of the Construction Loan and the Term Loans in inverse order of maturity or pro rata, at the applicable Borrower's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each prepayment of the Loans made pursuant to <u>Section 3.1.3(d)</u>, <u>Section</u> <u>3.1.3(e)</u>, <u>Section 3.1.3(f)</u>, <u>Section 3.1.3(g)</u> (solely to the extent such Tax Credit Policy Proceeds were received in respect of a claim arising in connection with the PTC Loss Insurance Policy), <u>Section 3.1.3(h)</u>, <u>Section 3.1.3(j)</u>, <u>Section 3.1.3(k)</u>, <u>Section 3.1.3(l)</u> and <u>Section 3.1.3(m)</u>, shall be applied (i) *first*, pro rata to the prepayment of the outstanding principal amount of all Construction Loans or Term Loans, as applicable, regardless of what Type (with the amount of such prepayment of Construction Loans or Term Loans, as applicable, being applied to the remaining amortization payments (including, for the avoidance of doubt, the final payment on the Construction Loan Maturity Date or Term Loan Maturity Date, as applicable) of the Construction Loans or the Term Loans, as applicable, on a pro rata basis), (ii) *second*, pro rata to the ratable prepayment of all outstanding Material Construction Contract LC Loans, Shell PPA LC Loans, SCE PPA LC Loans and DSR LC Loans regardless of what Type (with a corresponding reduction of Material Construction Contract LC Commitments, Shell PPA LC Commitments, SCE PPA LC Commitments and DSR LC Commitments, respectively), (iii) *third*, pro rata to the ratable prepayment of all outstanding TRABL Loans regardless of what Type, (iv) *fourth*, to the Cash Collateralization of any outstanding Letters of Credit (and thereafter the Material Construction Contract LC Commitments, Shell PPA LC Commitments, SCE PPA LC Commitments and the DSR LC Commitments shall be permanently reduced in an amount equal to any proceeds remaining after giving effect to the foregoing) and (vi) *fifth*, any amount remaining (the "<u>Reduction Amount</u>") may be retained by the applicable Borrower; <u>provided</u> that each prepayment of the Loans made pursuant to <u>Section 3.1.3(i)</u> and <u>Section 3.1.3(g)</u> (solely to the extent such Tax Credit Policy Proceeds were received in respect of a claim arising in connection with the ITC Loss Insurance Policy) shall be applied pro rata solely to the ratable prepayment of all outstanding TRABL Loans regardless of the Type of such Loans, <u>provided</u> <u>further</u> that prior to the repayment in full of the Construction Loans or the Term Loans, as applicable, no reduction shall be required in respect of the LC Loan Commitments as a result of any prepayment pursuant to<u>[Section 3.1.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[Section 3.1.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) For the avoidance of doubt, proceeds so applied to prepay the principal amount of a Loan shall also be used for the payment of (x) accrued and unpaid interest to the date of such prepayment on the principal amount prepaid if any such prepayment is a full prepayment of the Loans; <u>provided</u> that accrued and unpaid interest for any partial prepayment of the Loans shall be paid on the next Quarterly Payment Date following the applicable date of prepayment, and (y) any amounts owing pursuant to<u>[Section 4.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If a Borrower makes any prepayment of the Loans pursuant to <u>Section 3.1.2(a)</u>, <u>Section 3.1.3(d)</u>, <u>Section 3.1.3(e)</u>, <u>Section 3.1.3(f)</u>, <u>Section 3.1.3(h)</u>, <u>Section 3.1.3(g)</u>, <u>Section</u> <u>3.1.3(i)</u>, <u>Section 3.1.3(j)</u>, or <u>Section 3.1.3(k)</u>, within five (5) Business Days of such prepayment, such Borrower shall update the then-current Borrower Model or Conversion Date Borrower

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Model, as applicable, to reflect the prepayment of such Loans, in form and substance reasonably satisfactory to the Administrative Agent.

SECTION 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest Provisions</u>. Interest on the outstanding principal amount of the Loans and Reimbursement Obligations shall accrue and be payable in accordance with the terms set forth below.

SECTION 3.2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Rates; Fees</u>. (a) The Loans comprising a Borrowing shall accrue interest at a rate per annum:

&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)&nbsp;&nbsp;&nbsp;&nbsp;on that portion of any Borrowing maintained from time to time as a Base Rate Loan, equal to the sum of the Adjusted Base Rate from time to time in effect *plus* the Applicable Margin; 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)&nbsp;&nbsp;&nbsp;&nbsp;on that portion of any Borrowing maintained as a SOFR Loan, equal to the sum of Daily Compounded SOFR *plus* the Applicable Margin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers agree to pay to the LC Issuers, with respect to any Reimbursement Obligations, interest on such Reimbursement Obligations in respect of each honored drawing under a Letter of Credit from the date such drawing is honored to but excluding the date such Reimbursement Obligation is reimbursed by or on behalf of a Borrower at a rate equal to, for the period from the date such drawing is honored to but excluding the applicable date of reimbursement of such Reimbursement Obligation, the rate of interest otherwise payable hereunder with respect to Material Construction Contract LC Loans, Shell PPA LC Loans, SCE PPA LC Loans and DSR LC Loans, as applicable, that are Base Rate Loans; <u>provided</u> that, if a drawing under a Letter of Credit is not reimbursed by a Borrower when due or financed by an LC Loan pursuant to <u>Section 2.6.2(b)</u>, then such Borrower's Reimbursement Obligation with respect to such drawing shall be due and payable on demand (together with interest) and shall bear interest as provided in<u>[Section 3.2.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;If on any day a Loan is outstanding with respect to which a Borrowing Request or Continuation/Conversion Notice has not been delivered to the Administrative Agent in accordance with the terms hereof specifying the applicable basis for determining the rate of interest, then for that day such Loan shall be a Base Rate Loan.

SECTION 3.2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Post-Default Rates</u>. After the date any principal amount of any Loan is due and payable (whether on any Stated Maturity Date, upon acceleration or otherwise), or after any other monetary Obligation of a Borrower shall have become due and payable, such Borrower shall pay, but only to the extent permitted by law, interest (after as well as before judgment) on such amounts at a rate per annum equal to (a) in the case of overdue principal or overdue interest on any Loan, the rate of interest that otherwise would be applicable to such Loan <u>plus</u> two percent (2.00%) per annum; (b) in the case of overdue Reimbursement Obligations, the rate of interest that otherwise would be applicable to such Reimbursement Obligation <u>plus</u> two percent (2.00%) per annum; and (c) in the case of overdue fees, and other monetary Obligations (other than those covered by <u>clauses (a)</u> and <u>(b)</u> hereof), the Adjusted Base Rate, plus the Applicable Margin for Construction Loans or Term Loans accruing interest at the Adjusted Base Rate, <u>plus</u> two percent (2.00%) per annum.

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SECTION 3.2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment Dates</u>. Interest accrued on each Loan shall be payable in arrears, without duplication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;on the Stated Maturity Date therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;on the date of any payment or prepayment, in whole or in part, of the principal outstanding on any Loan, on the principal amount so paid or prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;with respect to Base Rate Loans and SOFR Loans, on each Quarterly Payment Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;with respect to any Base Rate Loans converted into SOFR Loans on a day when interest would not otherwise have been payable pursuant to <u>clause[(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) on the date of such conversion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;immediately upon a Commitment Termination Event.

Interest accrued on Loans or other monetary Obligations after the date such amount is due and payable (whether on the Stated Maturity Date, upon acceleration or otherwise) shall be payable upon demand.

SECTION 3.2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Interest Computation</u>. All interest hereunder shall be computed on the basis of a year of 360 days (or in the case of interest computed by reference to the Adjusted Base Rate at times when the Adjusted Base Rate is based on the Base Rate, such interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year)), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). All interest hereunder on any Loan, other than any Loan that bears interest based on Daily Compounded SOFR, shall be computed on a daily basis based upon the outstanding principal amount of such Loan as of the applicable date of determination. All interest hereunder on any Loan that bears interest based on Daily Compounded SOFR shall be computed as of any applicable date of determination on a daily basis based upon (x) the outstanding principal amount of such Loan as of such date of determination plus (y) the accrued, unpaid interest on such Loan attributable to Daily Compounded SOFR (and not, for the avoidance of doubt, attributable to the Applicable Margin) as of the immediately preceding U.S. Government Securities Business Day. The applicable Adjusted Base Rate or Daily Compounded SOFR shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

SECTION 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees</u>. Each Borrower agrees to pay the fees set forth below.

SECTION 3.3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Construction Contract LC Loan Lender Commitment Fees</u>. The Cape Phase 1 Borrower agrees to pay to the Administrative Agent for the ratable account of each Material Construction Contract LC Loan Lender, a commitment fee in a per annum amount equal to (a) thirty percent (30%) of the Applicable Margin for Material Construction Contract LC Loans *multiplied by* (b)(i) the unutilized portion of the Material Construction Contract LC Loan Commitments *minus* (ii) outstanding Material Construction Contract LC Outstandings, such fees being calculated on a year comprised of three hundred sixty (360) days and payable quarterly in arrears on each Quarterly Payment Date from and including the

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Closing Date to but excluding the Material Construction Contract LC Loan Commitment Termination Date; <u>provided</u> that the first payment of such fees shall be due and payable on the date of the second Credit Extension if the first Quarterly Payment Date occurs prior to such date.

SECTION 3.3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>DSR LC Loan Lender Commitment Fees</u>. Each Borrower agrees to pay to the Administrative Agent for the ratable account of each DSR LC Loan Lender, a commitment fee in a per annum amount equal to (a) thirty percent (30%) of the Applicable Margin for DSR LC Loans *multiplied by* (b)(i) the unutilized portion of the DSR LC Loan Commitments *minus* (ii) outstanding DSR LC Outstandings, such fees being calculated on a year comprised of three hundred sixty (360) days and payable quarterly in arrears on each Quarterly Payment Date from and including the Conversion Date to but excluding the DSR LC Loan Commitment Termination Date.

SECTION 3.3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Shell PPA LC Loan Lender Commitment Fees</u>. The Cape Phase 1 Borrower agrees to pay to the Administrative Agent for the ratable account of each Shell PPA LC Loan Lender, a commitment fee in a per annum amount equal to (a) thirty percent (30%) of the Applicable Margin for Shell PPA LC Loans *multiplied by* (b) the unutilized portion of the Shell PPA LC Loan Commitments, such fees being calculated on a year comprised of three hundred sixty (360) days and payable quarterly in arrears on each Quarterly Payment Date from and including the Conversion Date to but excluding the Shell PPA LC Loan Commitment Termination Date.

SECTION 3.3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>SCE PPA LC Loan Lender Commitment Fees</u>. The Cape Phase 1 Borrower agrees to pay to the Administrative Agent for the ratable account of each SCE PPA LC Loan Lender, a commitment fee in a per annum amount equal to (a) thirty percent (30%) of the Applicable Margin for SCE PPA LC Loans *multiplied by* (b) the unutilized portion of the SCE PPA LC Loan Commitments, such fees being calculated on a year comprised of three hundred sixty (360) days and payable quarterly in arrears on each Quarterly Payment Date from and including the Conversion Date to but excluding the SCE PPA LC Loan Commitment Termination Date.

SECTION 3.3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Loan Lender Commitment Fees</u>. The Cape Phase 1 Borrower agrees to pay to the Administrative Agent for the ratable account of each Construction Loan Lender, a commitment fee in a per annum amount equal to (a) thirty percent (30%) of the Applicable Margin for Construction Loans *multiplied by* (b) the unutilized Construction Loan Commitment, such fees being calculated on a year comprised of three hundred sixty (360) days and payable quarterly in arrears on each Quarterly Payment Date from and including the Closing Date to but excluding the Construction Loan Commitment Termination Date; <u>provided</u> that the first payment of such fees shall be due and payable on the date of the second Credit Extension if the first Quarterly Payment Date occurs prior to such date.

SECTION 3.3.6&nbsp;&nbsp;&nbsp;&nbsp;<u>TRABL Loan Lender Commitment Fees</u>. The WellCo Borrower agrees to pay to the Administrative Agent for the ratable account of each TRABL Lender, a commitment fee in a per annum amount equal to (a) thirty percent (30%) of the Applicable Margin for TRABL Loans *multiplied by* (b) the unutilized TRABL Commitments, such fees

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being calculated on a year comprised of three hundred sixty (360) days and payable quarterly in arrears on each Quarterly Payment Date from and including the Closing Date to but excluding the TRABL Commitment Termination Date; <u>provided</u> that the first payment of such fees shall be due and payable on the date of the second Credit Extension if the first Quarterly Payment Date occurs prior to such date.

SECTION 3.3.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Agents' Fees; Other Fees</u>. (a) The Borrowers agree to pay (i) to each of the Administrative Agent, the Collateral Agent and the Depositary Bank, for their own respective accounts, and (ii) in the case of the other fees payable to the Coordinating Lead Arrangers or the Lenders, to the Administrative Agent, for the account of the applicable Coordinating Lead Arranger or Lender, the respective fees payable to each of them in the amounts (without duplication) and on the dates set forth herein or in the applicable Fee Letter, as the case may be.

SECTION 3.3.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Letter of Credit Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers agree to pay to the Administrative Agent for the account of each LC Issuer, a Letter of Credit fee in a per annum amount equal to the Applicable Margin applicable to Construction Loans or Term Loans maintained as SOFR Loans then in effect on the face amount of each such Letter of Credit *multiplied by* the average daily Stated Amount of each such Letter of Credit, such fees being calculated on a year comprised of three hundred sixty (360) days and payable quarterly in arrears on each Quarterly Payment Date following the date of issuance of each such Letter of Credit to but excluding the applicable LC Loan Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The applicable Borrower agrees to pay to each applicable LC Issuer the usual and customary costs and charges for (i) the opening of any Letter of Credit, (ii) the negotiation of any drafts paid pursuant to a Letter of Credit, (iii) any amendments of any Letter of Credit, and (iv) any wire transfers as from time to time in effect and notified to the Borrowers in writing. Such customary costs and charges are due and payable on demand and are non-refundable.

All fees payable under this<u>[Section 3.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall be paid in immediately available funds and once paid, no such fees shall be refundable under any circumstances, absent manifest calculation error.

**ARTICLE IV**

**<u>CERTAIN SOFR AND OTHER PROVISIONS</u>**

SECTION 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Inability to Determine Rates; SOFR Lending Unlawful</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Inability to Determine Rates</u>. Subject to <u>Section[4.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) if, as of any date, (x) the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that "Daily Compounded SOFR" cannot be determined pursuant to the definition thereof or (y) the Required Lenders determine that for any reason in connection with any SOFR Loan, any request therefor or a conversion thereto or a continuation thereof that Daily Compounded SOFR does not adequately and fairly reflect the cost to such Lenders of making and maintaining such Loan, and the Required Lenders have provided notice of such

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determination to the Administrative Agent, then in each case, the Administrative Agent will promptly notify the Borrowers and each Lender. Upon notice thereof from the Administrative Agent to the Borrowers and the Lenders, the obligations of the Lenders to make or continue any Loans under <u>Section 2.3</u> and <u>Section 2.4</u>, or to convert any Loans into SOFR Loans, and any right of the Borrowers to continue SOFR Loans or to convert Base Rate Loans to SOFR Loans, shall in each case forthwith be suspended (to the extent of the affected SOFR Loans) until the Administrative Agent (with respect to <u>clause (y)</u>, at the instruction of the Required Lenders) shall notify the Borrowers and the Lenders that the circumstances causing such suspension no longer exist. Upon receipt of such notice, (i) the applicable Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans (to the extent of the affected SOFR Loans) or, failing that, the applicable Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans in the amount specified therein and (ii) any outstanding affected SOFR Loans will be deemed to have been converted into Base Rate Loans immediately. Following any such conversion, the Borrowers shall also pay accrued interest on the amount so converted on the next Quarterly Payment Date, together with any additional amounts required pursuant to <u>Section[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) If the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that "Daily Compounded SOFR" cannot be determined pursuant to the definition thereof on any given day, the interest rate on Base Rate Loans shall be determined by the Administrative Agent without reference to clause (c) of the definition of "Adjusted Base Rate" until the Administrative Agent revokes such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>SOFR Lending Unlawful</u>. If any Lender shall determine that any change in law or change in the interpretation of any law makes it unlawful, or that any Governmental Authority asserts that it is unlawful, for such Lender to make or continue any Loan as, or to convert any Loan into, a SOFR Loan, or any Loan bearing interest by reference to SOFR or Daily Compounded SOFR, then upon written notice thereof by such Lender to the Borrowers through the Administrative Agent (such notice, an "<u>Illegality Notice</u>"), (a) the obligations of such Lender to make, continue or convert any such Loan shall, after the determination thereof, forthwith be suspended, and (b) the interest rate on which Base Rate Loans shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (c) of the definition of "Adjusted Base Rate", in each case until each affected Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of an Illegality Notice, the Borrowers shall, if necessary to avoid such illegality, upon demand from any Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all SOFR Loans to Base Rate Loans (the interest rate on which Base Rate Loans shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (c) of the definition of "Adjusted Base Rate"), on the Quarterly Payment Date therefor, if all affected Lenders may lawfully continue to maintain such SOFR Loans to such day, or immediately, if any Lender may not lawfully continue to maintain such SOFR Loans to such day. Upon any such prepayment or conversion, the applicable Borrower shall also pay any additional amounts required pursuant to <u>Section 4.3</u>.

SECTION 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement Setting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement</u>.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, the Administrative Agent and the Borrowers may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (New York City time) on the fifth (5<sup>th</sup>) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrowers so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this<u>[Section 4.2(a)(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>will occur prior to the applicable Benchmark Transition Start 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)&nbsp;&nbsp;&nbsp;&nbsp;No Secured Interest Rate Hedge Agreement shall be deemed to be a "Loan Document" for purposes of this<u>[Section 4.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices; Standards for Decisions and Determinations</u>. The Administrative Agent will promptly notify the Borrowers and the Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will promptly notify the Borrowers of the removal or reinstatement of any tenor of a Benchmark pursuant to<u>[Section 4.2(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and the commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent (acting at the direction of the Required Lenders) or, if applicable, any Lender (or group of Lenders) pursuant to this<u>[Section 4.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this<u>[Section 4.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Unavailability of Tenor of Benchmark</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent (acting at the direction of the Required Lenders) in its reasonable discretion or (B) the administrator of such Benchmark or the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark

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settings at or after such time to remove such unavailable, non-representative, non-compliant or non-aligned tenor and (ii) if a tenor that was removed pursuant to <u>clause (i)</u> above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Benchmark Unavailability Period</u>. Upon the Borrowers' receipt of notice of the commencement of a Benchmark Unavailability Period, (i) the Borrowers may revoke any pending request for a SOFR Borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrowers will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans and (ii) any outstanding affected SOFR Loans will be deemed to have been converted to Base Rate Loans immediately. During a Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Adjusted Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Adjusted Base Rate.

SECTION 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Increased Costs, etc.</u>The Borrowers agree to reimburse each Lender and each LC Issuer for any increase in the cost to such Lender or such LC Issuer of, or any reduction in the amount of any sum receivable by such Lender or such LC Issuer (whether of principal, interest or any other amount) in respect of, such Lender or such LC Issuing Commitments and the making of any Credit Extensions hereunder (including the making, continuing or maintaining (or of its obligation to make or continue) any Loans as, or of converting (or of its obligation to convert) any Loans into, or SOFR Loans, as applicable), or the introduction, adoption, effectiveness, interpretation, reinterpretation or phase in after the Closing Date of, (a) the adoption of any law, rule, treaty or regulation by any Governmental Authority, (b) any change in law, rule, treaty or regulation or in the interpretation or application thereof by any Governmental Authority, or (c) any written directive, or request (whether or not having the force of law) of any Governmental Authority (which shall be deemed to include, for the avoidance of doubt, all requests, rules, guidelines or directives concerning liquidity and capital adequacy issued by any United States regulatory authority (i) under or in connection with the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act and (ii) in connection with the implementation of requests, rules, guidelines or directives promulgated by the Bank for International Settlements or the Basel Committee on Banking Regulations and Supervisory Practices (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, regardless of the date adopted, issued, promulgated or implemented) (each, a "<u>Change in Law</u>"), that (A) imposes, modifies or deems applicable any reserve (including pursuant to regulations issued from time to time by the Board for determining the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D)), special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated by any Lender or LC Issuer, (B) subjects any Lender, the Administrative Agent, or any LC Issuer to any Taxes on its Loans, Loan principal, Letters of

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Credit, Commitments, or other obligations under the Loan Documents, or its deposits, reserves, other liabilities or capital attributable thereto or (C) imposes on any Lender or any LC Issuer any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein, other than, in the case of <u>clause (B)</u>, (x) Indemnified Taxes, (y) Taxes that are described in <u>clauses (b)</u> through <u>(d)</u> of the definition of "Excluded Taxes" and (z) Connection Income Taxes. Each affected Lender or LC Issuer shall promptly notify the Administrative Agent and the Borrowers in writing of the occurrence of any such event, stating the reasons therefor and the additional amount required fully to compensate such Lender or such LC Issuer for such increased cost or reduced amount. Such additional amounts shall be payable by the Borrowers directly to such Lender or such LC Issuer within ten (10) days of its receipt of such notice, and such notice shall, in the absence of manifest error, be conclusive and binding on the Borrowers.

A certificate of an officer of a Lender or an LC Issuer setting forth the amount or amounts necessary to compensate such Lender or such LC Issuer as specified in this<u>[Section 4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u> shall be delivered to the Borrowers and shall be conclusive absent manifest error. The applicable Borrower shall pay such Lender or such LC Issuer, as applicable, the amount shown as due on any such certificate within ten (10) days after receipt thereof.

Promptly after any Lender or any LC Issuer has determined that it will make a request for increased compensation pursuant to this<u>[Section 4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) such Lender or such LC Issuer shall notify the applicable Borrower thereof. Failure or delay on the part of any Lender or any LC Issuer to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or such LC Issuer's right to demand such compensation; <u>provided</u> that the Borrowers shall not be required to compensate a Lender or any LC Issuer pursuant to this<u>[Section 4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>for any increased costs or reductions incurred more than two hundred seventy (270) days prior to the date that such Lender or LC Issuer, as applicable, notifies the applicable Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's or such LC Issuer's intention to claim compensation therefor; <u>provided further</u> that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the two hundred seventy (270)-day period referred to above shall be extended to include the period of retroactive effect thereof.

SECTION 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Funding Losses</u>. In the event any Lender shall incur any loss or expense (including any loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to make or continue any portion of the principal amount of any Loan as, or to convert any portion of the principal amount of any Loan into, a SOFR Loan) as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any conversion or repayment or prepayment of the principal amount of any SOFR Loan on a date other than on a Quarterly Payment Date (including as a result of an Event of Default);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any Loans not being continued as, or converted into, SOFR Loans in accordance with the Continuation/Conversion Notice therefor;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any SOFR Loans not being borrowed, converted or prepaid in accordance with any notice delivered pursuant to <u>Section 2.3.1</u> or<u>[Section 3.1.2(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) as applicable (as a result of a revocation of such notice or as a result of such payment not being made); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the assignment of any SOFR Loan other than on a Quarterly Payment Date as a result of a request by a Borrower pursuant to<u>[Section 4.11](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

but in each case other than due to such Lender's failure to fulfil its obligations hereunder, then, upon the written notice of such Lender to the applicable Borrower, the applicable Borrower shall, within ten (10) days of its receipt thereof, pay directly to such Lender such amount as will (in the reasonable determination of such Lender) reimburse such Lender for all losses or expenses (including any loss or expense arising from the liquidation or redeployment of funds but excluding any profit or margin) incurred by such Lender. Each Lender demanding payment under this<u>[Section 4.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall include in the written notice delivered to the applicable Borrower a certificate setting forth and reasonably accounting for the amount of costs and losses for which demand is made. Such written notice shall, in the absence of manifest error, be conclusive and binding on such Borrower.

SECTION 4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Increased Capital Costs</u>. If, after the Closing Date, any Change in Law affects or would affect the capital or liquidity requirements expected to be maintained by any Credit Party or any Person controlling such Credit Party, and such Credit Party determines (in good faith) that the rate of return on its or such controlling Person's capital as a consequence of the Commitments or the Credit Extensions made, or the Letters of Credit participated in, by such Credit Party is reduced to a level below that which such Credit Party or such controlling Person could have achieved but for the occurrence of any such Change in Law (taking into consideration such Lender's or Issuing Bank's policies and the policies of such Lender's or Issuing Bank's holding company with respect to capital adequacy), then upon notice from time to time by such Credit Party to applicable Borrower, the applicable Borrower shall within ten (10) days following receipt of such notice pay directly to such Credit Party additional amounts sufficient to compensate such Credit Party or such controlling Person for such reduction in rate of return (such additional amounts to be specified in such notice). A statement of such Credit Party as to any such additional amount or amounts shall, in the absence of manifest error, be conclusive and binding on such Borrower. In determining such amount, such Credit Party may use any reasonable method of averaging and attribution that it shall deem applicable.

A certificate of an officer of a Lender setting forth the amount or amounts necessary to compensate such Lender as specified in this<u>[Section 4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall be delivered to the applicable Borrower and shall be conclusive absent manifest error.

Promptly after any Lender has determined that it will make a request for increased compensation pursuant to this<u>[Section 4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) such Lender shall notify the applicable Borrower thereof. Failure or delay on the part of any Lender or any LC Issuer to demand compensation pursuant to this <u>Section 4.5</u> shall not constitute a waiver of such Lender's or such LC Issuer's right to demand such compensation; <u>provided</u> that the Borrowers shall not be required to compensate a Lender pursuant to this<u>[Section 4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>for any increased costs or reductions incurred more than two hundred seventy (270) days prior to the date that such Lender notifies the Borrowers of the Change in Law giving rise to such increased costs or reductions and of such

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Lender's intention to claim compensation therefor; <u>provided further</u> that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the two hundred seventy (270)-day period referred to above shall be extended to include the period of retroactive effect thereof.

SECTION 4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. For purposes of this Section, the term "Lender" includes any LC Issuer and the term "Applicable Law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of a Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by a Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Credit Party receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Other Taxes by Borrower</u>. The Borrowers shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by Borrowers</u>. The Borrowers shall indemnify the Credit Party, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Credit Party or required to be withheld or deducted from a payment to such Credit Party and any reasonable out-of-pocket expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; <u>provided</u> that the Borrowers shall not be obligated to indemnify any Credit Party for any penalties, interest or expenses relating to Indemnified Taxes arising from such Credit Party's gross negligence or willful misconduct (as determined by a final and non-appealable judgment of a court of competent jurisdiction) or arising from such Credit Party's failure to comply with its obligations under <u>Section 4.6(g)</u>. A certificate as to the amount of such payment or liability delivered to the Borrowers by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by the Lenders</u>. Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrowers have not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrowers to do so), (ii) any Taxes attributable to such Lender's failure to

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comply with the provisions of <u>Section 11.11(e)</u> relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this <u>paragraph[(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by a Borrower to a Governmental Authority pursuant to this<u>[Section 4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) such Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;<u>Status of Lenders</u>. (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrowers and the Administrative Agent, at the time or times reasonably requested by the Borrowers or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrowers or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrowers or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrowers or the Administrative Agent as will enable the Borrowers or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>paragraphs[4.6(g)(ii)(A)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.6(g)(ii)(B)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[4.6(g)(ii)(D)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of this Section) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;any Lender that is a U.S. Person shall deliver to the Borrowers and the Administrative Agent on or about the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrowers or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrowers and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or about the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time

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thereafter upon the reasonable request of the Borrowers or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;in the case of a Non-U.S. Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W- 8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;executed copies of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of <u>Exhibit K-1</u> to the effect that such Non-U.S. Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of a Borrower within the meaning of Section 871(h)(3)(B) of the Code, or a "controlled foreign corporation" related to a Borrower as described in Section 881(c)(3)(C) of the Code (a "<u>U.S. Tax</u> <u>Compliance Certificate</u>") and (y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E; 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;(4)&nbsp;&nbsp;&nbsp;&nbsp;to the extent a Non-U.S. Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit K-2</u> or <u>Exhibit K-3</u>, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Non-U.S. Lender is a partnership and one or more direct or indirect partners of such Non-U.S. Lender are claiming the portfolio interest exemption, such Non-U.S. Lender may provide a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit K-4</u> on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrowers and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or about the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrowers or the Administrative Agent), executed copies of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrowers or the Administrative Agent to determine the withholding or deduction required to be made; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrowers and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrowers or the Administrative Agent such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrowers or the Administrative Agent as may be necessary for the Borrowers and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this <u>clause[(D)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrowers and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the date the Administrative Agent becomes a party to this Agreement (and from time to time thereafter upon the request of the Borrowers), if the Administrative Agent (including any successor Administrative Agent) is not a U.S. Person, it shall deliver to the Borrowers properly completed and duly executed copies of IRS Form W- 8ECI (with respect to any payments to be received on its own behalf) and IRS Form W-8IMY (for all other payments) certifying that it is a "U.S. branch" and that the payments it receives for the account of other Credit Parties are not effectively connected with the conduct of its trade or business in the United States and that it is using such form as evidence of its agreement to be treated as a "U.S. person" with respect to such payments as contemplated by U.S. Treasury Regulations Section 1.1441-1(b)(2)(iv)(A), with the effect that the Loan Parties will be entitled to make payments hereunder to the Administrative Agent without withholding or deduction on account of any U.S. Federal Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;<u>Treatment of Certain Refunds</u>. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this<u>[Section 4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(including by the payment of additional amounts pursuant to this<u>[Section 4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this<u>[Section 4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this <u>paragraph[(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>paragraph[(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) in no

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event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>paragraph[(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This <u>paragraph[(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. Each party's obligations under this<u>[Section 4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments, the expiration or cancellation of all Letters of Credit and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 4.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Payments, Computations, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise expressly provided in a Loan Document, all payments by the Borrowers pursuant to each Loan Document shall be made by the Borrowers to the Administrative Agent for the pro rata account of the Credit Parties entitled to receive such payment. All payments shall be made without setoff, deduction or counterclaim not later than 3:00 p.m. on the date due in same day or immediately available funds to such account as the Administrative Agent shall specify from time to time by notice to the applicable Borrower; <u>provided</u> that, in the case of amounts due pursuant to <u>Sections[4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>11.3</u> or <u>11.4</u>, subject to any requirements therein, the applicable payee shall provide to the applicable Loan Party, any invoices or other supporting materials for such amounts due as reasonably requested by such Loan Party. Funds received after that time shall be deemed, in the Administrative Agent's (acting at the direction of the Required Lenders) discretion, to have been received by the Administrative Agent on the next succeeding Business Day. The Administrative Agent shall promptly remit in same day funds to each Credit Party its share, if any, of such payments received by the Administrative Agent for the account of such Credit Party. All interest (including interest on SOFR Loans) and fees shall be computed on the basis of the actual number of days (including the first day but excluding the last day) occurring during the period for which such interest or fee is payable over a year comprised of three hundred sixty (360) days (or, in the case of interest on a Base Rate Loan, three hundred sixty five (365) days or, if appropriate, three hundred sixty six (366) days). Except as otherwise set forth herein, payments due on a day other than a Business Day shall be made on the preceding Business Day. Except as otherwise set forth in any Loan Document, following an Event of Default, all payments made under any Loan Document (and allocable to the Credit Parties in accordance with the terms of the Depositary Agreement) shall be applied upon receipt (a) <u>first</u>, to the payment of all Obligations owing to the Agents, in their respective capacities as the Administrative Agent, the Collateral Agent, and the Depositary Bank, but not as a Lender (including the fees and expenses of counsel to the Agents); (b) <u>second</u>, after payment in full in cash of the amounts specified in <u>clause (a)</u>, to the payment of interest and fees on any portion (without duplication) of (i) Material Construction Contract LC Loans that the Administrative Agent may have advanced on behalf of any Material Construction Contract LC Loan Lender for which the Administrative Agent has not then been reimbursed by such Material Construction Contract LC Loan Lender or the Cape Phase 1 Borrower, (ii) Shell

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PPA LC Loans that the Administrative Agent may have advanced on behalf of any Shell PPA LC Loan Lender for which the Administrative Agent has not then been reimbursed by such Shell PPA LC Loan Lender or the Cape Phase 1 Borrower, (iii) SCE PPA LC Loans that the Administrative Agent may have advanced on behalf of any SCE PPA LC Loan Lender for which the Administrative Agent has not then been reimbursed by such SCE PPA LC Loan Lender or the Cape Phase 1 Borrower, (iv) DSR LC Loans that the Administrative Agent may have advanced on behalf of DSR LC Loan Lender for which the Administrative Agent has not then been reimbursed by such DSR LC Loan Lender and (v) payments that the Administrative Agent may have advanced to the Credit Parties in accordance with this<u>[Section 4.7](#i918c83e63c6d41b4b3424c701423fa52_1)</u>for which the Administrative Agent has not been reimbursed by a Borrower, any other Loan Party or the Credit Parties; (c) <u>third</u>, after payment in full in cash of the amounts specified in <u>clauses (a)</u> and <u>(b)</u>, to the ratable payment of interest and fees on any portion (without duplication) of the Loans and the Letters of Credit then outstanding and Reimbursement Obligations then owing; (d) <u>fourth</u>, after payment in full in cash of the amounts specified in <u>clauses (a)</u> through <u>(c)</u>, to the ratable payment of the principal amount of each of the Loans then outstanding and Reimbursement Obligations then owing and amounts required for purposes of Cash Collateralization for contingent liabilities under Material Construction Contract LC Outstandings, Shell PPA LC Outstandings, SCE PPA LC Outstandings and DSR LC Outstandings and all other costs and expenses owing to the Lenders pursuant to the terms of this Agreement; (e) <u>fifth</u>, after payment in full in cash of the amounts specified in <u>clauses (a)</u> through <u>(d)</u>, to the ratable payment of all other Obligations owing to the Credit Parties; and (f) <u>sixth</u>, after payment in full in cash of the amounts specified in <u>clauses (a)</u> through <u>(e)</u>, to each other Person lawfully entitled to receive such surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In connection with the use or administration of Daily Compounded SOFR, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. The Administrative Agent will promptly notify the Borrowers and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Daily Compounded SOFR.

SECTION 4.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Sharing of Payments</u>. If any Credit Party shall obtain any payment or other recovery (whether voluntary, involuntary, by application of setoff or otherwise) on account of any Credit Extension or Reimbursement Obligation (other than pursuant to the terms of <u>[Section 4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1) in excess of its pro rata share of payments obtained by all Credit Parties, such Credit Party shall promptly notify the Administrative Agent of such payment or recovery and shall thereafter as soon as practicable purchase from the other Credit Parties such participations in Credit Extensions made by them as shall be necessary to cause such purchasing Credit Party to share the excess payment or other recovery ratably (to the extent such other Credit Parties were entitled to receive a portion of such payment or recovery) with each of them; <u>provided</u>, <u>however</u>, that if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing Credit Party, the purchase shall be rescinded and each Credit Party which has sold a participation to the purchasing Credit Party shall repay to the purchasing Credit Party the purchase price to the ratable extent of such recovery together with an amount equal to such selling Credit Party's ratable share (according to the proportion of (a) the amount of such selling Credit Party's required repayment to the purchasing Credit Party to (b) total

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amount so recovered from the purchasing Credit Party) of any interest or other amount paid or payable by the purchasing Credit Party in respect of the total amount so recovered. The Borrowers agree that any Credit Party purchasing a participation from another Credit Party pursuant to this<u>[Section 4.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>may, to the fullest extent permitted by law, exercise all its rights of payment (including pursuant to<u>[Section 4.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1) with respect to such participation as fully as if such Credit Party were the direct creditor of the Borrowers in the amount of such participation; <u>provided</u> that the Borrowers shall have no liability to the Lenders hereunder to the extent that it has made all payments to the Lenders and the Administrative Agent required to be made by the Borrowers hereunder. If under any applicable bankruptcy, insolvency or other similar law any Credit Party receives a secured claim in lieu of a setoff to which this Section applies, such Credit Party shall, to the extent practicable, exercise its rights in respect of such secured claim in a manner consistent with the rights of the Credit Parties entitled under this Section to share in the benefits of any recovery on such secured claim. The provisions of this<u>[Section 4.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall not be construed to apply to (a) any payment made a Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender) or (b) any payment obtained by any Lender as consideration for the assignment or sale of a participation in any of its Loans or other Obligations owed to it.

SECTION 4.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Setoff</u>. Each Credit Party and each of their respecive branches and Affiliates shall, upon the occurrence and during the continuance of any Default described in <u>Sections[9.1.9(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>through<u>[(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or, upon the occurrence and during the continuance of any other Event of Default, have the right to appropriate and apply to the payment of the Obligations owing to it (whether or not then due), and (as security for such Obligations) each Borrowers hereby grants to each Credit Party a continuing security interest in, any and all deposits (general or special, time or demand, provisional or final, in whatever currency), accounts (other than any trust accounts comprised entirely of moneys held in trust for the benefit of Persons other than the Borrowers or their Affiliates) or moneys of the Borrowers then or thereafter maintained with such Credit Party or such Credit Party's branch or Affiliate; <u>provided</u>, <u>however</u>, that any such appropriation and application shall be subject to the provisions of<u>[Section 4.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) Each Credit Party agrees promptly to notify the Borrowers and the Administrative Agent after any such setoff and application made by such Credit Party, its branch or Affiliate; <u>provided</u>, <u>however</u>, that the failure to give such notice shall not affect the validity of such setoff and application. The rights of each Credit Party and its respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff under Applicable Law or otherwise) which such Credit Party may have; <u>provided</u> that, in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of<u>[Section 4.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the LC Issuers, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.

SECTION 4.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Central Lending Office</u>. Each Credit Party agrees that if it makes any demand for payment under<u>[Section 4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) or if any adoption or change of the type described in<u>[Section 4.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall occur with respect to it, it will, if requested by the Borrowers, file a certificate or document reasonably requested by the Borrowers and/or use reasonable efforts (in

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either case, consistent with its internal policy and legal and regulatory restrictions and so long as such efforts would not be disadvantageous to it, as determined in its sole discretion) to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if the filing of such certificate or document or the making of such a designation would reduce or obviate the need for the Borrowers to make payments under<u>[Section 4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) or would eliminate or materially reduce the effect of any adoption or change described in<u>[Section 4.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>provided</u>, <u>however</u>, that nothing in this Section shall affect or postpone any of the Obligations of a Borrower or the right of any Credit Party provided in<u>[Section 4.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

SECTION 4.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Replacement of Lenders</u>. If any Lender (an "<u>Affected Lender</u>"): (a) fails to consent to an election, consent, amendment, waiver or other modification to this Agreement or other Loan Document that requires the consent of all Lenders and such election, consent, amendment, waiver or other modification is otherwise consented to by the Required Lenders, (b) makes a demand upon a Borrower for (or if a Borrower is otherwise required to pay) amounts pursuant to<u>[Section 4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(and the payment of such amounts are, and are likely to continue to be, more onerous in the reasonable judgment of the Borrowers than with respect to the other Lenders), or gives notice pursuant to<u>[Section 4.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>requiring a conversion of such Affected Lender's SOFR Loans to Base Rate Loans or suspending such Lender's obligation to make Loans as, or to convert Loans into, SOFR Loans, or (c) shall become and continues to be a Defaulting Lender and shall have failed to cease being a Defaulting Lender pursuant to <u>[Section](#i918c83e63c6d41b4b3424c701423fa52_1)</u> <u>[4.12(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>within five (5) Business Days after Borrowers' request therefor; the Borrowers may (in the case of <u>clause (a)</u> only, within thirty (30) days of such consent of Required Lenders, or in the case of <u>clauses (b)</u> or <u>(c),</u> at any time) give notice (a "<u>Replacement Notice</u>") in writing to the Administrative Agent and such Affected Lender of its intention to cause such Affected Lender to sell all or any portion of its Loans, and/or Commitments to another financial institution or other Person in accordance with <u>Section 11.11</u> (a "<u>Replacement Lender</u>") designated in such Replacement Notice; <u>provided</u>, <u>however</u>, that no Replacement Notice may be given by the Borrowers if (i) such replacement conflicts with any Applicable Law or regulation, (ii) any Event of Default shall have occurred and be continuing at the time of such replacement, (iii) prior to any such replacement in connection with <u>clause (b)</u> above, such Lender shall have taken any necessary action under<u>[Section 4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(if applicable) so as to eliminate the continued need for payment of amounts owing pursuant to<u>[Section 4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or (iv) prior to any such replacement in connection with <u>clause (c)</u> above, such Lender shall have taken any necessary action under <u>[Section 4.12(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>to cease being a Defaulting Lender. If the Administrative Agent (acting at the direction of the Required Lenders) shall, in the exercise of its reasonable discretion and within ten (10) days of its receipt of such Replacement Notice, notify the Borrowers and such Affected Lender in writing that the Replacement Lender is reasonably satisfactory to the Administrative Agent (such consent not being required where the Replacement Lender is already a Lender), then such Affected Lender shall, subject to the payment of any amounts due pursuant to<u>[Section 4.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) assign, in accordance with <u>Section 11.11</u>, the portion of its Commitments and/or Loans, and other rights and obligations (including Reimbursement Obligations, if applicable) under this Agreement and all other Loan Documents (other than the Secured Interest Rate Hedge Agreements) designated in the Replacement Notice to such Replacement Lender; <u>provided</u>, <u>however</u>, that (A) such assignment shall be without recourse, representation or warranty (in accordance with and subject to the restrictions contained in <u>Section 11.11</u>) and shall be on terms and conditions reasonably satisfactory to such Affected Lender and such Replacement Lender,

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(B) the purchase price paid by such Replacement Lender shall be an amount equal to the sum of (w) the amount (at par) of such Affected Lender's Loans designated in the Replacement Notice, plus (x) such Affected Lender's Percentage of all unreimbursed Reimbursement Obligations (at par), plus (y) all accrued and unpaid interest and fees in respect thereof, plus (z) all other amounts (including the amounts demanded and unreimbursed under <u>Sections[4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1), owing to such Affected Lender hereunder, (C) in the case of an assignment and assumption from an event as described in <u>clause (a)</u> of the first sentence of this Section, the Replacement Lender shall consent, at the time of such assignment, to such event, and (D) the Borrowers shall pay to the Affected Lender and the Administrative Agent all reasonable out-of-pocket expenses incurred by the Affected Lender and the Administrative Agent in connection with such assignment and assumption (including the processing fees described in <u>Section 11.11</u>). Upon the effective date of an assignment described above, the Replacement Lender shall become a "Lender" for all purposes under the Loan Documents. Each Lender hereby grants to the Administrative Agent an irrevocable power of attorney (which power is coupled with an interest) to execute and deliver, on behalf of such Lender as assignor, any assignment agreement necessary to effectuate any assignment of such Lender's interests hereunder in the circumstances contemplated by this Section.

SECTION 4.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Defaulting Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defaulting Lender Adjustments</u>. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defaulting Lender Waterfall</u>. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to<u>[Article VII](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to <u>[Section 4.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall be applied at such time or times as may be determined by the Administrative Agent as follows: <u>first</u>, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; <u>second</u>, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any LC Issuer hereunder; <u>third</u>, to Cash Collateralize each LC Issuer's Fronting Exposure (if any) with respect to such Defaulting Lender in accordance with<u>[Section 4.12(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>fourth</u>, as the Borrowers may request (so long as no Default or Event of Default shall have occurred and be continuing), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; <u>fifth</u>, if so determined by the Administrative Agent and the Borrowers, to be held in a Deposit Account and released pro rata in order to (x) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize any LC Issuer's future Fronting Exposure (if any) with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with<u>[Section 4.12(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>sixth</u>, to the payment of any amounts owing to the Lenders, any LC Issuer or the LC Loan Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender, any LC Issuer or the LC Loan Lenders against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; <u>seventh</u>, so long as no Default

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or Event of Default shall have occurred and be continuing, to the payment of any amounts owing to a Borrower as a result of any judgment of a court of competent jurisdiction obtained by such Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and <u>eighth</u>, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; <u>provided</u> that if (x) such payment is a payment of the principal amount of any Loans or reimbursement obligations with respect to Letters of Credit in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>were satisfied and waived, such payment shall be applied solely to pay the Loans of, and reimbursement obligations with respect to Letters of Credit owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or reimbursement obligations with respect to Letters of Credit owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in Letters of Credit and LC Loans are held by the Lenders pro rata in accordance with the applicable LC Loan Commitments without giving effect to<u>[Section 4.12(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this<u>[Section 4.12(a)(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Fees</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;No Defaulting Lender shall be entitled to receive any fee pursuant to<u>[Section 3.3.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 3.3.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 3.3.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>Section 3.3.4</u>, <u>Section[3.3.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>Section</u> <u>3.3.6</u> or<u>[3.3.8(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>for any period during which that Lender is a Defaulting Lender; <u>provided</u> such Defaulting Lender shall be entitled to receive fees pursuant to <u>[Section 3.3.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 3.3.2 Section 3.3.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or <u>Section 3.3.4</u> for any period during which that Lender is a Defaulting Lender only to extent allocable to its DSR LC Loan Percentage, Shell PPA LC Loan Percentage, SCE PPA LC Loan Percentage or Material Construction Contract LC Loan Percentage, as applicable, of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to<u>[Section 4.12(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;With respect to any fees not required to be paid to any Defaulting Lender pursuant to <u>clause[(A)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>above, the Borrowers shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in Letters of Credit or LC Loans that has been reallocated to such Non-Defaulting Lender pursuant to <u>clause[(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>below, (y) pay to the applicable LC Issuer the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such LC Issuer's Fronting Exposure (if any) to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reallocation of Participations to Reduce Fronting Exposure</u>. All or any part of such Defaulting Lender's participation in Letters of Credit and LC Loans shall (subject to the prior consent of each such Non-Defaulting Lender) be reallocated among

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the Non-Defaulting Lenders of the applicable LC Tranche in accordance with their respective LC Percentage (calculated without regard to such Defaulting Lender's LC Loan Commitment) but only to the extent that (x) the conditions set forth in<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u> are satisfied at the time of such reallocation (and, unless the Borrowers shall have otherwise notified the Administrative Agent at such time, the Borrowers shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate outstanding principal amount of all LC Loans of such Non-Defaulting Lender under the applicable LC Tranche, together with such LC Loan Lender's LC Loan Percentage of the aggregate amount of all Material Construction Contract LC Outstandings, Shell PPA LC Outstandings, SCE PPA LC Outstandings or DSR LC Outstandings, as applicable, to exceed such Non-Defaulting Lender's LC Loan Commitment. Subject to <u>Section 11.22</u>, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Collateral</u>. If the reallocation described in <u>clause[(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>above cannot, or can only partially, be effected, the applicable Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, Cash Collateralize each LC Issuer's Fronting Exposure (other than the Fronting Exposure of any LC Issuer that is the Defaulting Lender or its Affiliate) in accordance with the procedures set forth in <u>[Section](#i918c83e63c6d41b4b3424c701423fa52_1)</u> <u>[4.12(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Defaulting Lender Cure</u>. If the Borrowers, the Administrative Agent and each LC Loan Lender and each LC Issuer agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Loans to be held pro rata by the Lenders in accordance with the applicable Commitments (without giving effect to<u>[Section 4.12(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1), whereupon such Lender will cease to be a Defaulting Lender; <u>provided</u> that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of a Borrowers while that Lender was a Defaulting Lender; and <u>provided further</u>, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender having been a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>New Letters of Credit</u>. So long as any Lender is a Defaulting Lender, no LC Issuer shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that the participations in any existing Letters of Credit as well as the new, extended, renewed or increased Letter of Credit has been fully allocated among the Non-Defaulting Lenders in a manner consistent with <u>clause[(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>above and such Defaulting Lender shall not participate therein except to the extent such Defaulting Lender's participation has been or will be fully Cash Collateralized in accordance with<u>[Section 4.12(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Collateral</u>. At any time that there shall exist a Defaulting Lender, within one (1) Business Day following the written request of the Administrative Agent or an LC Issuer (with a copy to the Administrative Agent) the applicable Borrower shall Cash Collateralize each LC Issuer's Fronting Exposure (other than the Fronting Exposure of any LC Issuer that is the Defaulting Lender or its Affiliate) with respect to such Defaulting Lender (determined after giving effect to<u>[Section 4.12(a)(iii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and any Cash Collateral provided by such Defaulting Lender).

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Grant of Security Interest</u>. The Borrowers, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grant to the Administrative Agent, for the benefit of the applicable LC Issuer, and agree to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lenders' obligation to fund participations in respect of Letters of Credit, to be applied pursuant to <u>clause[(ii)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and an LC Issuer as herein provided, or that the total amount of such cash collateral is less than one hundred and two percent (102%) of the Stated Amount of such Letter of Credit, the applicable Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Application</u>. Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this<u>[Section 4.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender's obligation to fund participations in respect of Letters of Credit (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

&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)&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Requirement</u>. Cash Collateral (or the appropriate portion thereof) provided to reduce the applicable LC Issuer's Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this<u>[Section 4.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>following (i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender) or (ii) the determination by the Administrative Agent and the applicable LC Issuer that there exists excess Cash Collateral; <u>provided</u> that, subject to the other provisions of this<u>[Section 4.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) the Person providing Cash Collateral and the applicable LC Issuer may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations; <u>provided further</u> that to the extent that such Cash Collateral was provided by a Borrower, such Cash Collateral shall remain subject to the security interest granted pursuant to the Loan Documents.

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**ARTICLE V**

**<u>CONDITIONS PRECEDENT</u>**

SECTION 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Date</u>. The occurrence of the Closing Date and the obligations of the Lenders and LC Issuers to make the initial Credit Extension on the Closing Date shall be subject to the prior or concurrent satisfaction or waiver of each of the conditions precedent set forth in this<u>[Section 5.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) each in form and substance reasonably acceptable to the Administrative Agent and the Lenders.

SECTION 5.1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Date Certificate</u>. The Administrative Agent shall have received the Closing Date Certificate, in which certificate the Borrowers shall confirm the matters described in<u>[Section 5.1.10(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>Section[5.1.17](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>Section[5.1.18](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[Section 5.1.24](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and such other matters as provided therein, together with all documents and agreements required to be appended to the Closing Date Certificate.

SECTION 5.1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Resolutions, Certificates, etc.</u> The Administrative Agent shall have received from each Borrower and the Sponsor: (a)(i) a copy of the certificate of formation or other formation document, as applicable, including all amendments thereto, of each such Person, and (ii) a copy of a good standing certificate, in each case dated a date reasonably close to the Closing Date for each such Person, and (b) a certificate, dated as of the Closing Date, duly executed and delivered by an Authorized Officer of such Person, as 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)&nbsp;&nbsp;&nbsp;&nbsp;resolutions of each such Person's board of directors (or other managing body, in the case of an entity other than a corporation) then in full force and effect authorizing the execution, delivery and performance of each Loan Document executed or to be executed by such Person and the transactions contemplated hereby and thereby;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the incumbency and signatures of those of its officers, managers, managing members or general partners, as applicable, authorized to act with respect to each Loan Document to be executed by such Person; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the accuracy and completeness of each Organic Document of such Person, in full force and effect on the Closing Date and at all times since the date of the resolutions described in <u>clause[(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>above, and copies thereof.

SECTION 5.1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Establishment of Accounts</u>. On the Closing Date, each of the Accounts shall have been established.

SECTION 5.1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Delivery of Notes</u>. The Administrative Agent shall have received, for the account of each Lender that has requested a Note in writing no later than three (3) Business Days prior to the Closing Date, such Lender's Notes duly executed and delivered by an Authorized Officer of the applicable Borrower.

SECTION 5.1.5&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

SECTION 5.1.6&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

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SECTION 5.1.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Information</u>. The Administrative Agent shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) audited consolidated balance sheets and related consolidated statements of operations, stockholders' equity and cash flows of the Sponsor and its Subsidiaries for the Fiscal Years ended December 31, 2024, December 31, 2023 and December 31, 2022 (ii) unaudited consolidated balance sheets and related consolidated statements of operations, stockholders' equity and cash flows of the Sponsor and its Subsidiaries for the Fiscal Quarters ended March 2025, June 2025 and September, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the Borrower Model;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;unaudited and consolidated balance sheets as of September 30, 2025 of each Borrower and its Subsidiaries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;to the extent available to the Borrowers and not publicly available (and in the case of the O&M Provider and Long Term Servicer, to the extent available using commercially reasonable efforts), (i) audited consolidated balance sheets and related consolidated statements of operations, stockholders' equity and cash flows of each of the O&M Provider, Power Purchasers, ITC Transferee(s), PTC Transferee(s) and EDR (or such Person's applicable guarantor, if the obligations of such Person under the applicable Material Project Document are guaranteed by a guarantor) for the Fiscal Year ended December 31, 2024 and (ii) unaudited consolidated balance sheets and related consolidated statements of operations, stockholders' equity and cash flows of each of the O&M Provider, Power Purchasers, ITC Transferee(s), PTC Transferee(s) and EDR (or such Person's applicable guarantor, if the obligations of such Person under the applicable Material Project Document are guaranteed by a guarantor) for the Fiscal Quarters ended September 2025 and December 2025.

SECTION 5.1.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Solvency, etc.</u> The Administrative Agent shall have received a certificate dated as of the Closing Date, substantially in the form of <u>Exhibit J</u> hereto from each Borrower duly executed and delivered by an Authorized Officer of each Borrower (in his or her capacity as such Authorized Officer), certifying that the Borrowers after giving effect to the transactions contemplated hereby, are Solvent.

SECTION 5.1.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Opinions of Counsel</u>. The Administrative Agent shall have received the following opinions, each dated as of the Closing Date and addressed to the Administrative Agent, the Collateral Agent and all other Secured Parties, each in form and substance (including a customary scope) reasonably acceptable to the Administrative Agent, from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;White & Case LLP, special New York counsel to the Obligors and Sponsor, addressing customary corporate and enforceability matters, and security matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Sheppard, Mullin, Richter & Hampton LLP, counsel to the Project Companies, addressing certain federal permitting matters and federal energy regulatory matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Parr Brown Gee & Loveless LLP, Utah counsel to the Project Companies, addressing (i) certain Utah state and local permitting matters and (ii) addressing Utah state energy regulatory matters.

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SECTION 5.1.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Transaction Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received duly executed copies of each Loan Document required to be in effect as of the Closing Date and to which an Obligor is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received, or the Borrowers shall have posted to the Platform, true and complete copies of each Material Project Document in effect as of the Closing Date and any existing supplements or amendments thereto (including any performance support then required to be delivered in connection therewith) and such documents shall have been duly executed and delivered by the parties thereto, and shall be in full force and effect on the Closing Date, and an Authorized Officer of the Borrowers shall certify that (i) such Material Project Documents are true, complete and correct copies, and in full force and effect as of the Closing Date, (ii) no Loan Party is in material breach of any material obligation under any Material Project Document and no event has occurred or circumstance exists that, with the passage of time or the giving of notice or both, would constitute a breach of any material obligation of a Loan Party under any Material Project Document, and (iii) to the Borrowers' knowledge, no Material Project Party is in material breach of any of such Material Project Party's material obligations under any Material Project Document and no event has occurred or circumstance exists that, with the passage of time or the giving of notice or both, would constitute a material breach under any Material Project Document by such Material Project Party.

SECTION 5.1.11&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

SECTION 5.1.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. Insurance complying with<u>[Section 7.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and <u>Schedule IV</u> shall be in full force and effect and the Administrative Agent shall have received (a) a certificate from the Insurance Consultant, dated as of the Closing Date and confirming, among other things, that each Loan Party has the Required Insurance, and otherwise in form and substance reasonably satisfactory to the Administrative Agent and (b) a certificate from the Borrowers' insurance broker dated as of the Closing Date confirming that all Required Insurance is in full force and effect and that all premiums then due thereon have been paid and providing copies of all policies evidencing such insurance (or a binder, commitment or certificates signed by the insurer or a broker authorized to bind the insurer).

SECTION 5.1.13&nbsp;&nbsp;&nbsp;&nbsp;<u>PATRIOT Act Disclosures</u>. Each Credit Party shall have received at least three (3) Business Days prior to the Closing Date (or such later date as the Administrative Agent may reasonably agree), (a) with respect to each Obligor, all PATRIOT Act Disclosures and any other documentation or information requested by the Administrative Agent that is necessary for the Credit Parties to identify such Persons in accordance with the requirements of the Patriot Act (including the "know your customer" and similar regulations thereunder); and (b) with respect to each Obligor, a Beneficial Ownership Certification, to the extent any such Obligor qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, in each case of <u>clauses (a)</u> and <u>(b)</u> provided such information has been reasonably requested by the Administrative Agent in writing to the Borrowers at least seven (7) days in advance of the Closing Date.

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SECTION 5.1.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Consultant Reports</u>. The Administrative Agent shall have received (a) the Independent Engineer Report, and if the Independent Engineer Report is not addressed to the Administrative Agent, a reliance letter from the Independent Engineer in form and substance reasonably satisfactory to the Administrative Agent, (b) the Bearskin Crossflow Test Results Review and the Subsurface Consultant Report, and if the Bearskin Crossflow Test Results Review or the Subsurface Consultant Report is not addressed to the Administrative Agent, a reliance letter from the Subsurface Consultant in form and substance reasonably satisfactory to the Administrative Agent, (c) the Environmental Consultant Reports, and if an Environmental Consultant Report is not addressed to the Administrative Agent, a reliance letter from the applicable Environmental Consultant in form and substance reasonably satisfactory to the Administrative Agent, (d) the Transmission Consultant Report, and if the Transmission Consultant Report is not addressed to the Administrative Agent, a reliance letter from the Transmission Consultant in form and substance reasonably satisfactory to the Administrative Agent, and (e) the Insurance Consultant Report, and if the Insurance Consultant Report is not addressed to the Administrative Agent, a reliance letter from the Insurance Consultant in form and substance reasonably satisfactory to the Administrative Agent; provided that, in the case of each reliance letter in the foregoing <u>clauses (a)</u> through <u>(d)</u>, such reliance letter is dated as of the Closing Date.

SECTION 5.1.15&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved</u>.]

SECTION 5.1.16&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

SECTION 5.1.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Budget</u>. The Administrative Agent shall have received a construction budget with respect to the Project, substantially in the form attached as <u>Exhibit</u> <u>O-1</u> (the "<u>Construction Budget</u>"), which shall have been reviewed by the Independent Engineer and shall be consistent in all material respects with the Material Project Documents, together with a certificate of an Authorized Officer of the Borrower stating that such Construction Budget was prepared in good faith and is based upon assumptions which the Borrowers believe to be reasonable; it being understood that such Construction Budget is subject to uncertainties and contingencies, many of which are beyond the control of the Borrowers, that no assurance can be given that the budget will be realized, that actual results may differ and such differences may be material.

SECTION 5.1.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Schedule</u>. The Administrative Agent shall have received a construction schedule with respect to the Project, substantially in the form attached as <u>Exhibit P</u> (the "<u>Construction Schedule</u>"), which shall have been reviewed by the Independent Engineer and shall be consistent in all material respects with the Material Project Documents, together with a certificate of an Authorized Officer of each Borrower stating that such Construction Schedule was prepared in good faith and is based upon assumptions which the Borrowers believe to be reasonable; it being understood that such schedule is subject to uncertainties and contingencies, many of which are beyond the control of the Borrowers, that no assurance can be given that the schedule will be realized, that actual results may differ and such differences may be material.

SECTION 5.1.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Permits</u>. The Loan Parties shall have delivered to the Administrative Agent true and complete copies of each Part A Permit. Each Loan Party shall have duly

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obtained or shall have obtained for its benefit each applicable Part A Permit and each such Part A Permit shall be in full force and effect in the name of the applicable Loan Party (or other holder as set forth in <u>Part A</u> of <u>Schedule III</u>), and not subject to any current legal proceeding or to any unsatisfied condition to its effectiveness required to be satisfied as of the Closing Date that could reasonably be expected to cause suspension, material modification or revocation of each such Part A Permit, and, except as set forth on <u>Part A</u> of <u>Schedule III</u>, all administrative and judicial appeal periods provided under the Governmental Rule under which such Part A Permit was issued with respect to such Part A Permit have expired.

SECTION 5.1.20&nbsp;&nbsp;&nbsp;&nbsp;<u>No Litigation</u>. There shall be no material enforcement or legal actions, suits, proceedings, investigations or similar actions pending or, to the knowledge of a Borrower, threatened (in writing) against any Loan Party or any of the material Project Assets on and as of the Closing Date, other than any such enforcement, legal actions, suits, proceedings, investigations or similar actions which is fully covered by insurance, bond or other security reasonably satisfactory to the Administrative Agent.

SECTION 5.1.21&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

SECTION 5.1.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Development Agreement Assignment of Rights</u>. The Administrative Agent shall have received a duly executed copy of the Assignment of Rights Agreement among Sponsor, Cape TransCo LLC and the Project Companies in respect of the Development Agreement.

SECTION 5.1.23&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

SECTION 5.1.24&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties; No Default or Event of Default</u>. (a) The representations and warranties of each Obligor set forth in each Loan Document shall be true and correct in all respects both at the time of and immediately after the Closing Date (or, if any such representation or warranty is expressly stated to have been made as of a specific prior date, such representation or warranty was true and correct in all respects as of such specific prior date) and (b) at the time of and immediately after the Closing Date, no Default or Event of Default shall have occurred and be continuing.

SECTION 5.1.25&nbsp;&nbsp;&nbsp;&nbsp;<u>Funds Flow Memorandum</u>. The Administrative Agent shall have received the Closing Date Funds Flow Memorandum, in form and substance acceptable to the Administrative Agent and all Lenders.

SECTION 5.1.26&nbsp;&nbsp;&nbsp;&nbsp;<u>Delivery of Plans</u>. The Administrative Agent shall have received each of (a) the ESG Action Plan, in form and substance satisfactory to the Administrative Agent and all Lenders, and (b) the Drilling and Completions Plan, in form and substance reasonably satisfactory to the Administrative Agent and all Lenders.

SECTION 5.1.27&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Credit Requirements</u>. The Administrative Agent shall have received the memorandum issued by Akin Gump Strauss Hauer & Feld regarding the PTC and ITC eligibility for the Project, dated as of October 3, 2025.

SECTION 5.1.28&nbsp;&nbsp;&nbsp;&nbsp;<u>Cost Segregation Report</u>. The Administrative Agent shall have received a draft copy of the Cost Segregation Report.

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SECTION 5.1.29&nbsp;&nbsp;&nbsp;&nbsp;<u>Customs Duties</u>. All Customs Duties, if any, that have been asserted and are due and payable as of the Closing Date shall have been paid.

SECTION 5.1.30&nbsp;&nbsp;&nbsp;&nbsp;<u>Lien Searches</u>. The Administrative Agent shall have received certified copies of UCC Requests for Information or Copies (Form UCC-11), or a similar search report certified by a party acceptable to the Administrative Agent, dated as of a date reasonably near to the Closing Date, listing effective financing statements and tax and judgment liens which name each of the Obligors and EDR (under its present name and certain of its previous names) as the debtor.

SECTION 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Term Conversion</u>. "<u>Term Conversion</u>" means each of the following conditions shall have been satisfied or waived by the Administrative Agent, on the instruction of the Required Lenders:

SECTION 5.2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Borrower Model</u>. The Cape Phase 1 Borrower shall have delivered to the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;an updated Borrower Model in form and substance reasonably satisfactory to the Required Lenders and prepared in consultation with the Independent Engineer, solely updated as of the Conversion Date to reflect (i) that the Project has achieved Substantial Completion, (ii) the actual capacity of the Project, as confirmed pursuant to all required testing results obtained in accordance with the applicable Material Construction Contract as of the Substantial Completion Date, (iii) the updated P90 Production Forecast delivered pursuant to <u>Section 5.2.19</u>, (iv) the updated Transmission Consultant Report delivered pursuant to <u>Section 5.2.22</u> and (iv) the execution of any relevant amendments, supplements or other modifications to the Material

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Project Documents and any Additional Project Documents that have a material impact on the assumptions in the Borrower Model in effect immediately prior thereto (such updated Borrower Model, the "<u>Conversion Date Borrower Model</u>"), which Conversion Date Borrower Model shall demonstrate compliance with clause (a) of the definition of "CTL Debt Sizing Criteria" after giving effect to the mandatory prepayments on such date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;an updated Amortization Schedule extracted from the Conversion Date Borrower Model that satisfies <u>clause[(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of the definition of "CTL Debt Sizing Criteria" and reasonably acceptable to the Administrative Agent, which updated Amortization Schedule shall automatically replace the Amortization Schedule attached hereto as <u>Schedule IIA</u>.

SECTION 5.2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Term Conversion Request</u>. The Administrative Agent shall have received a Term Conversion Request from the Cape Phase 1 Borrower at least five (5) Business Days prior to the Conversion Date.

SECTION 5.2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Engineer Certificate</u>. The Administrative Agent shall have received a certificate of the Independent Engineer, substantially in the form of <u>Exhibit Q-2</u>, together with all other attachments contemplated thereby.

SECTION 5.2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Project Documents</u>. The Administrative Agent shall have received a certificate from an Authorized Officer of the Cape Phase 1 Borrower, substantially in the form of <u>Exhibit Q-1</u>, certifying that (i) the Cape Phase 1 Borrower has provided (or is providing with such certificate) to the Administrative Agent copies of (A) each Additional Project Document, if any, that a Loan Party has entered into and that has not been delivered previously to the Administrative Agent, and solely to the extent required pursuant to<u>[Section 7.16](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) the Consents to Collateral Assignment, if any, relating thereto, each of which (1) shall have been duly executed and delivered by the Loan Parties party thereto, and to the knowledge of the Borrowers, by each other Person that is a party thereto and (2) shall be in full force and effect (unless it has expired in accordance with its terms, other than as a result of a default or has been replaced in accordance with this Agreement) and (B) each amendment or modification of a Material Project Document, if any, that a Loan Party has entered into and that has not been delivered previously to the Administrative Agent and (ii) each Material Project Document is in full force and effect (unless it has expired in accordance with its terms, other than as a result of a default or has been replaced in accordance with this Agreement).

SECTION 5.2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Permits</u>. All Part B Permits to the extent required as of the Conversion Date shall have been duly obtained and validly issued and shall be in full force and effect, no unsatisfied condition to its effectiveness required to be satisfied as of the Conversion Date exists that could reasonably be expected to allow material modification of any such Permit, and except as set forth on <u>Schedule III</u>, no such Permit shall be subject to any appeal and all administrative and judicial appeal periods provided under the Governmental Rule under which such Permit was issued with respect to such Permit shall have expired. The Administrative Agent shall have received a certificate from an Authorized Officer of the Cape Phase 1 Borrower, substantially in the form of <u>Exhibit Q-1</u>, certifying that the Cape Phase 1 Borrower has provided (or is providing with such certificate) to the Administrative Agent copies of each such Permit.

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SECTION 5.2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Funding of Reserves</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Major Maintenance Reserve Account is fully funded in accordance with Section 3.06(a) of the Depositary Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Punch List Reserve is fully funded in Cash in an amount at least equal to the Punch List Reserve Required Amount.

SECTION 5.2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Funding of DSR Account</u>. The DSR Account shall be fully funded in Cash, through a Sponsor LC or through the DSR Letter of Credit, at the Borrowers' sole discretion, in an amount at least equal to the DSR Requirement.

SECTION 5.2.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties; No Default or Event of Default</u>. (i) The representations and warranties of each Obligor set forth in each Loan Document shall be true and correct in all material respects on and as of the Conversion Date (or, if any such representation or warranty is expressly stated to have been made as of a specific prior date, such representation or warranty was true and correct in all material respects as of such specific prior date), both at the time of and immediately after Term Conversion; <u>provided</u>, <u>however</u>, that a representation or warranty that is qualified by materiality, Material Adverse Effect or any similar phrase shall be true and correct in all respects and (ii) at the time of and immediately after Term Conversion, no Default or Event of Default shall have occurred and be continuing.

SECTION 5.2.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Completion of Testing</u>. The Administrative Agent shall have received a certificate from the Independent Engineer, substantially in the form of <u>Exhibit Q-2</u>, confirming completion of all physical and operational drilling and completions program testing for the Project as set forth in the Drilling and Completions Plan (including all of such testing requirements required to be completed prior to Commercial Operation under the Material Project Documents).

SECTION 5.2.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Title Policy Endorsement</u>. The Administrative Agent and, if applicable, the Title Company, shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;to the extent required to be provided to a Loan Party under the applicable Material Project Document as of the Conversion Date, duly executed acknowledgements of payments, waivers and/or releases of mechanics' and materialmen's liens from each applicable Material Project Party (other than the Interconnection Counterparty) as of the date of its current invoices (other than work in progress for which amounts are not yet due or are being contested in good faith by appropriate proceedings and for which adequate reserves are in place), in each case, appropriately completed in the form attached to the applicable Material Project Document or in the required applicable statutory forms or otherwise to the reasonable satisfaction of the Administrative Agent and if required, the Title Company; <u>provided</u>, <u>however</u>, that if the foregoing lien waivers or releases cannot be obtained from the applicable Material Project Party, then the foregoing condition shall be satisfied if the Borrowers deliver to the Administrative Agent a bond or other acceptable security specific to such mechanics' or materialmen's Lien, in form and substance reasonably satisfactory to the Administrative Agent has been posted or provided in such manner and amount as to assure that any amounts owed to the relevant Material Project Party as to whom the filing periods for mechanics' and materialmen's Liens have not

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expired or who have filed Liens, and covering the applicable Loan Party's liability to such Material Project Party, will be promptly paid in full when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;with respect to the Title Policy, a date down endorsement from the Title Company showing no additional title exceptions or other matters except Permitted Liens and otherwise in form and substance reasonably acceptable to the Administrative Agent (subject to the Title Endorsement Limitations); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any documents reasonably required by the Title Company and any payments for all documented fees and out-of-pocket charges required by the Title Company, in each case, for the Title Company to issue Title Policy date down endorsement described in <u>clause[(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

SECTION 5.2.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Permission to Operate Evidence</u>. The Administrative Agent shall have received reasonably satisfactory evidence that the Project has received final authorization for interconnection and operation from the Interconnection Counterparty pursuant to the Interconnection Agreement, that the Project has EWG status, and that the Project has MBR Authority.

SECTION 5.2.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. (a) Each Loan Party shall have obtained the insurance complying with<u>[Section 7.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and <u>Schedule IV</u> to the extent required as of the Conversion Date, such insurance shall be in full force and effect, all premiums then due shall have been paid in full, and no event or circumstance shall have occurred, nor shall there have been any omission to disclose a fact, which would entitle an insurer to validly avoid or otherwise reduce any material portion of its liability under the relevant policy of insurance, as certified by an Authorized Officer of the Cape Phase 1 Borrower, substantially in the form of <u>Exhibit Q-1</u>; and (b) the Administrative Agent shall have received (i) a certificate from the Insurance Consultant, dated as of the Conversion Date and confirming, among other things, that each Loan Party has the Required Insurance, and otherwise in form and substance reasonably satisfactory to the Administrative Agent and (ii) a certificate from the Loan Party's insurance broker dated as of the Conversion Date confirming that all Required Insurance is in full force and effect and that all premiums then due thereon have been paid and providing copies of all policies evidencing such insurance (or a binder, commitment or certificates signed by the insurer or a broker authorized to bind the insurer).

SECTION 5.2.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Operating Budget</u>. The initial Operating Budget has been delivered in accordance with<u>[Section 7.1(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

SECTION 5.2.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees and Expenses</u>. The Borrowers shall have confirmed that they have paid or have arranged for payment of all fees and expenses of any Lender, the Coordinating Lead Arrangers, the Agents, the Depositary Bank, and any LC Issuer, then due and payable by the Borrowers pursuant to the Loan Documents.

SECTION 5.2.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Total Project Costs</u>. The Borrowers shall have paid all Total Project Costs then due and payable other than any Total Project Costs being contested in good faith and by appropriate proceedings and that are adequately bonded (and such bond names the Administrative Agent as dual obligee) or in respect of which adequate reserves are in place in form and substance reasonably acceptable to the Administrative Agent at the direction of the

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Required Lenders, and shall have funded the Punchlist Reserve with the Punchlist Reserve Required Amount.

SECTION 5.2.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Substantial Completion and Commercial Operation</u>. The Administrative Agent shall have received (a) copies of all "Certificates of Mechanical Completion" (or equivalent certificates) delivered by the Contractor pursuant to the Material Construction Contract and duly countersigned by the Project Companies, (b) copies of all test results evidencing successful completion of the Performance Tests, (c) the written notice (and certificate) issued by Cape Generating Station 5 LLC pursuant to Section 3.2 of the Shell PPA, and (d) evidence reasonably satisfactory to the Administrative Agent that the "Initial Delivery Date" has occurred under the SCE PPA.

SECTION 5.2.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Lien and Litigation Searches</u>. The Administrative Agent shall have received certified copies of UCC Requests for Information or Copies (Form UCC-11), or a similar search report certified by a party acceptable to the Administrative Agent, dated as of a date reasonably near to the Conversion Date, listing effective financing statements and tax and judgment liens which name each of the Obligors and EDR (under its present name and certain of its previous names) as the debtor and which are filed in certain of the jurisdictions in which filings are to be made pursuant to <u>Section 5.3.9(b)</u>, together with copies of such financing statements.

SECTION 5.2.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Loans Resizing.</u> The Cape Phase 1 Borrower shall have made any mandatory prepayment required pursuant to<u>[Section 3.1.3(k)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

SECTION 5.2.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Major Maintenance Reserve Reporting</u>. The Administrative Agent shall have received (a) an updated P90 Production Forecast, prepared in consultation with the Subsurface Consultant with respect to Project performance and certified by the Borrowers and (b) an updated Maintenance and Drilling Projection, as certified by the Borrowers.

SECTION 5.2.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Cost Segregation Report</u>. The Administrative Agent shall have received a final copy of the Cost Segregation Report.

SECTION 5.2.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Drilling License Agreement</u>. The Administrative Agent shall have received an executed copy of the Drilling License Agreement, in form and substance reasonably satisfactory to the Required Lenders.

SECTION 5.2.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Bring-Down and Final Reports</u>. The Administrative Agent shall have received bring-down copies of each of the following Independent Consultant Reports delivered pursuant to Section 5.1.14, in each case together with a reliance letter from the applicable Independent Consultant in form and substance reasonably satisfactory to the Administrative Agent, to the extent such Independent Consultant Report is not addressed to the Administrative Agent: (a) the Independent Engineer Report, (b) the Transmission Consultant Report, and (c) the Insurance Consultant Report.

SECTION 5.2.23&nbsp;&nbsp;&nbsp;&nbsp;<u>SCE PPA Letter of Credit Reduction</u>. The Cape Phase 1 Borrower shall have delivered an Issuance Request not less than five (5) Business Days prior to the Conversion Date, in order to reduce the Stated Amount of the SCE PPA Letter of Credit, in

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accordance with the SCE PPA LC Issuing Commitment Amount applicable as of the Conversion Date.

SECTION 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions Precedent to All Credit Extensions</u>. Subject to <u>Section</u> <u>2.6.3(b)</u>, the obligation of each Lender (or the Administrative Agent on its behalf) and each LC Issuer to make any Credit Extension shall be subject to the satisfaction or waiver by the Administrative Agent on (1) for the initial and second Credit Extensions, the instructions of all Lenders and (2) for each Credit Extension following the second Credit Extension, the instruction of the Required Lenders, of each of the conditions precedent set forth below; <u>provided</u> that (x) the provisions of this <u>Section 5.3</u> shall not apply to the initial Credit Extension, except for <u>Section 5.3.12</u> and <u>Section 5.3.14(f)</u> and (y) no Letter of Credit shall be requested on the date of the initial Credit Extension.

SECTION 5.3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Warranties, No Default, etc.</u> Subject to <u>Section</u> <u>2.6.3(b)</u>, which provides for the sole and exclusive conditions precedent to any Material Construction Contract LC Loan, Shell PPA LC Loan, SCE PPA LC Loan or DSR LC Loan, and <u>Section 2.1.4</u>, which provides for the sole and exclusive conditions precedent to any amendment or increase of the Stated Amount of any existing Material Construction Contract Letter of Credit, existing SCE PPA Letter of Credit, existing Shell PPA Letter of Credit or existing DSR Letter of Credit, both immediately before and immediately after giving effect to any Credit Extension, the following statements shall be true and correct:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;with respect to any Credit Extension to be made, the representations and warranties set forth in each Loan Document are, in each case, true and correct in all material respects (except to the extent any such representation and warranty itself is qualified by "materiality," "Material Adverse Effect" or similar qualifier, in which case, it shall be true and correct in all respects) (unless stated to relate solely to an earlier date, in which case such representations and warranties were true and correct as of such earlier date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;[Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;no event or circumstance having a Material Adverse Effect or that could reasonably be expected to have a Material Adverse Effect has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;(i) the Construction Loans to be funded by the Lenders on the date of such Credit

Extension shall not exceed the Available Construction Loan Commitment on such date; (ii) the TRABL Loans to be funded by the Lenders on the date of such Credit Extension shall not exceed the Available TRABL Loan Commitment on such date; (iii) the Term Loans to be funded by the Lenders on the Conversion Date shall not exceed the Available Term Loan Capacity; and (iv) the Stated Amount of any Letter of Credit being issued or amended as of the date of such Credit Extension shall not exceed the applicable Available LC Loan Commitment for such Letter of Credit on such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;no Default or Event of Default has occurred and is continuing or will result from the making of the requested Credit Extension; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;no Change in Tax Law, Proposed Change in Tax Law, or "Change in Tax Law" (as such term or any similar term is defined in any ITC Transfer Agreement or any PTC Transfer

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Agreement) has occurred, in each case other than as provided in the Borrower Model within thirty (30) days of such change or proposed change, which Borrower Model update shall be reasonably satisfactory to the Lenders.

SECTION 5.3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Credit Transfer Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received (i) (A) duly executed copies of the ITC Transfer Agreement, (B) the ITC Loss Insurance Policy, and (C) the ITC Transferee Consent; (ii) the memorandum issued by KPMG LLP regarding the eligibility of the WellCo Facilities for the domestic content bonus credit under Section 48(a)(12) of the Code; (iii) the memorandum issued by KPMG LLP regarding the WellCo Facilities' compliance with prevailing wage and apprenticeship requirements in Sections 45(b)(7), 45(b)(8), 48(a)(10) and 48(a)(11) of the Code; and (iv) an opinion from White & Case LLP, special New York counsel to the Obligors, on the enforceability of the ITC Transfer Agreement, in form and substance reasonably acceptable to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall have received (i) duly executed copies of (A) the PTC Transfer Agreement, (B) the PTC Loss Insurance Policy, and (C) the PTC Transferee Consent; (ii) the memorandum issued by KPMG LLP regarding the GenCo Facilities' compliance with prevailing wage and apprenticeship requirements in Sections 45(b)(7), 45(b)(8), 48(a)(10) and 48(a)(11)of the Code; and (iii) an opinion from White & Case LLP, special New York counsel to the Obligors, on the enforceability of the PTC Transfer Agreement, in form and substance reasonably acceptable to the Administrative Agent.

SECTION 5.3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Resolutions, Certificates, etc.</u> Solely with respect to the second Credit Extension, the Administrative Agent shall have received from each Obligor, as applicable: (a)(i) a copy of the certificate of formation or other formation document, as applicable, including all amendments thereto, of each such Person and (ii) a copy of a good standing certificate, in each case dated a date reasonably close to the date of the second Credit Extension for each such Person and (b) a certificate, dated as of the date of the second Credit Extension, duly executed and delivered by an Authorized Officer of such Person, as 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)&nbsp;&nbsp;&nbsp;&nbsp;resolutions of each such Person's board of directors (or other managing body, in the case of an entity other than a corporation) then in full force and effect authorizing the execution, delivery and performance of each Loan Document executed or to be executed by such Person and the transactions contemplated hereby and thereby;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the incumbency and signatures of those of its officers, managers, managing members or general partners, as applicable, authorized to act with respect to each Loan Document to be executed by such Person; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;the accuracy and completeness of each Organic Document of such Person, in full force and effect on the date of the second Credit Extension and at all times since the date of the resolutions described in <u>clause[(i)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>above, and copies thereof.

SECTION 5.3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Title</u>. Solely with respect to the second Credit Extension, all documents necessary to establish that the Project Companies have entered into or obtained all necessary real estate interests as to the Surface Property for the Title Company to issue the

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Title Policy and all documents necessary to establish that WellCo Borrower has entered into or obtained all necessary real estate interests as to the Mortgaged Property with no uncured requirements from the Title Opinions that could divest WellCo Borrower of said real estate interests.

SECTION 5.3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Information</u>. The Administrative Agent shall have received a duly executed Construction Account Withdrawal Certificate (as defined in the Depositary Agreement) from the Cape Phase 1 Borrower addressed to the Administrative Agent, on behalf of itself and the Credit Parties, directing the disbursement on the date of the second Credit Extension of the proceeds of the Borrowings made on such date; and

SECTION 5.3.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Solvency, etc.</u> Solely with respect to the second Credit Extension, the Administrative Agent shall have received a certificate dated as of the date of the second Credit Extension, substantially in the form of <u>Exhibit J</u> hereto from each Borrower duly executed and delivered by an Authorized Officer of each Borrower (in his or her capacity as such Authorized Officer), certifying that the Loan Parties on a consolidated basis after giving effect to the transactions contemplated hereby, are Solvent.

SECTION 5.3.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Opinions of Counsel</u>. Solely with respect to the second Credit Extension, the Administrative Agent shall have received (a) bringdowns of each opinion delivered as of the Closing Date pursuant to <u>Section 5.1.9</u> and (b) an opinion delivered by Parr Brown Gee & Loveless LLP, Utah counsel to the Project Companies, addressing enforceability matters, each substantially in the applicable form as set forth in <u>Exhibits Y-1</u> through <u>Y-3</u> or otherwise in form and substance reasonably acceptable to the Administrative Agent.

SECTION 5.3.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Transaction Documents</u>. The Administrative Agent shall have received duly executed copies of each Loan Document required to be in effect as of the date of the second Credit Extension to which an Obligor is a party, including, without limitation, the Guarantee and Collateral Agreement, the WellCo Pledgor Pledge Agreement, the Cape Phase I Pledgor Pledge and Security Agreement, the Mortgages and each Consent to Collateral Assignment.

SECTION 5.3.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Collateral</u>. The Collateral Agent and the Administrative Agent shall have been granted on the date of the second Credit Extension, for the benefit of the applicable Secured Parties, and upon the delivery and filing or recordation of the documents set forth on <u>Item[6.23(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of the Disclosure Schedule, first priority perfected Liens on the Collateral (subject only to Permitted Liens), and in that connection, shall have received or waived delivery requirements with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) the original membership interest certificates of each Loan Party evidencing all of the issued and outstanding shares of Capital Securities pledged pursuant to the Security Documents, which certificates shall be accompanied by undated instruments of transfer duly executed in blank and an irrevocable proxy with respect to such Capital Securities; and (ii) such other instruments and documents as shall be necessary or in the reasonable opinion of the Administrative Agent desirable under Applicable Law to perfect the first priority security interest (subject to certain Permitted Liens) of the Collateral Agent in all shares of Capital Securities and any instruments comprising Collateral;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;copies of UCC financing statements naming each such Obligor executing each applicable Security Document as a debtor and the Collateral Agent as the secured party, or other similar instruments or documents to be filed under the UCC of all jurisdictions as may be necessary or, in the reasonable opinion of the Administrative Agent, desirable to perfect the security interests of the Collateral Agent pursuant to the applicable Security Documents ("<u>Filing</u> <u>Statements</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;certified copies of UCC Requests for Information or Copies (Form UCC-11), or a similar search report certified by a party acceptable to the Administrative Agent, dated as of a date reasonably near to the date of the second Credit Extension, listing effective financing statements and tax and judgment liens which name each of the Obligors and EDR (under its present name and certain of its previous names) as the debtor and which are filed in certain of the jurisdictions in which filings are to be made pursuant to <u>clause (b)</u> above, together with copies of such financing statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;with respect to the Surface Property as of the date of the second Credit Extension:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;evidence of the payment of (or satisfactory arrangements for the payment of pursuant to a title closing letter reasonably approved by the Administrative Agent) all Title Policy premiums;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a pro forma loan policy of title insurance or signed commitment to issue such policy in favor of the Collateral Agent, issued by the Title Company, in form and substance reasonably acceptable to the Required Lenders, in an amount equal to Three Hundred and Seventy Million, Five Hundred Thousand Dollars ($370,500,000) (the "<u>Title</u> <u>Policy</u>"), and such Title Policy shall also include, and if applicable, the endorsements listed on <u>Schedule VII</u> attached hereto (in each case, only to the extent available and customarily obtainable from insurers in the applicable jurisdiction and, if available, in the form and substance promulgated in the applicable jurisdiction and in accordance with local title insurance regulations applicable thereto) (the limitations described in this <u>sub-clause (ii)</u> being the "<u>Title Endorsement Limitations</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;such other affidavits, certificates, approvals, opinions, or documents as the Title Company may require to issue the Title Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent and the Collateral Agent shall have received each Consent to Collateral Assignment and each landowner estoppel listed on <u>Schedule VI</u>, each of which shall be duly executed by each party thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers shall have delivered to the Interconnection Counterparty a duly executed notice of collateral assignment of the Interconnection Agreement as notification of the collateral assignment of such Interconnection Agreement to the Collateral Agent.

SECTION 5.3.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Subordination Agreements and Lien Waivers</u>. The Administrative Agent shall have received (a) duly executed, and if required, notarized subordination agreements in favor of the Collateral Agent from the Contractor and the Equipment Supplier, substantially in the forms attached hereto as <u>Exhibits Z-1</u> and <u>Z-2</u> or otherwise in form and substance reasonably satisfactory to the Administrative Agent and (b) to the extent required to

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be provided to a Loan Party under the applicable Material Project Document as of the date of the second Credit Extension, duly executed acknowledgements of payments, waivers and/or releases of mechanics' and materialmen's liens from each applicable Material Project Party (other than the Material Project Party party to the Interconnection Agreement) as of the date of its current invoices (other than work in progress for which amounts are not yet due or are being contested in good faith by appropriate proceedings and for which adequate reserves are in place), in each case, appropriately completed in the form attached to the applicable Material Project Document or in the required applicable statutory form or otherwise to the reasonable satisfaction of the Administrative Agent and if required, the Title Company.

SECTION 5.3.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure Schedules</u>. Solely in respect of the second Credit Extension, the Administrative Agent shall have received a supplement or amendment to the Disclosure Schedules, which such supplement or amendment shall be reasonably acceptable to the Administrative Agent; <u>provided</u>, however that any such supplement or amendment shall not cure any breach of a representation or warranty of the Borrowers made prior to the date such supplement or amendment is received.

SECTION 5.3.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Credit Extension Request, etc.</u> Subject to <u>Section 2.6.3(b)</u>, the Administrative Agent shall have received a Borrowing Request if Loans are being requested, or an Issuance Request if a Letter of Credit is being requested or extended or the Stated Amount thereof increased. Each of the delivery of a Borrowing Request or Issuance Request and the acceptance by the applicable Borrower of the proceeds or benefits of such Credit Extension shall constitute a representation and warranty by such Borrower that on the date of such Credit Extension (both immediately before and after giving effect to such Credit Extension and the application of the proceeds thereof) the statements required to be true and correct under<u>[Section 5.3.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>as a condition to such Credit Extension are true and correct in all material respects.

SECTION 5.3.13&nbsp;&nbsp;&nbsp;&nbsp;<u>DSR Letters of Credit</u>. In the case of an issuance of a DSR Letter of Credit, each of the conditions precedent to the Conversion Date set forth in<u>[Section 5.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall have been satisfied or waived in accordance with the terms hereof.

SECTION 5.3.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Loans and TRABL Loans</u>. In the case of the making of any Construction Loans and TRABL Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Drawdown Certificate; Construction Report; Independent Engineer</u> <u>Certificate</u>. Delivery 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)&nbsp;&nbsp;&nbsp;&nbsp;a Construction Drawdown Certificate to the Administrative Agent (and as subsequently delivered by the Administrative Agent to the Lenders on the same Business Day) and the Independent Engineer, dated not less than three (3) Business Days prior to the date of the proposed Borrowing substantially in the form of <u>Exhibit M</u>, certified by an Authorized Officer of the applicable Borrower with required attachments thereto, including (A) the most recent Construction Report delivered pursuant to <u>Section[7.1(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u> (except with respect to the Borrowing on the date of the second Credit Extension), (B) a description of Total Project Costs incurred to date, (C) an update of the status of the Construction Budget showing (1) the actual Total Project Costs, (2) the current draw

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request, (3) the estimated remaining Total Project Costs to complete the Project and (4) a summary of the sources for each of the foregoing <u>items (1)</u> through <u>(3)</u> that have been used and are available to cover the Total Project Costs, (D) in the case of payments to be made with the proceeds of the proposed Borrowing under the applicable Material Construction Contract and Material Equipment Supply Contracts, copies of all documentation related to such payments required to be provided by the Contractor or Equipment Supplier under such Material Construction Contract and Material Equipment Supply Contracts, (E) the most recent Project site visit report prepared by the Independent Engineer, to be dated within sixty (60) days of the requested Borrowing, and (F) otherwise, copies of all receipts, invoices (including third party invoices) and any other appropriate documentation or materials reasonably and promptly requested by the Administrative Agent or the Independent Engineer to enable the Borrowers to substantiate any individual Total Project Cost in excess of $100,000 to be paid (or reimbursed) with the amounts transferred, and certifying that the proceeds of such Borrowing will be used only as permitted by<u>[Section 7.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1)

&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)&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the Independent Engineer substantially in the form of <u>Exhibit N</u>, dated and delivered to the Administrative Agent no later than 12:00 noon New York time three (3) Business Days prior to the date of the proposed Borrowing, pursuant to which the Independent Engineer certifies (A) the Loan Parties are in material compliance with the Construction Budget and Construction Schedule, (B) that Term Conversion is reasonably likely to be achieved by the Term Conversion Deadline, (C) that the utilization of previous Borrowings is consistent with the purposes set forth in <u>[Section 7.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) and (D) that the sum of then Available Construction Funds shall not be less than the aggregate unpaid amount of the Total Project Costs required to achieve Term Conversion on or before the Term Conversion Deadline; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;<u>Title Policy Date-Down Endorsements</u>. The Administrative Agent, and, if applicable, the Title Company, shall have received prior to such Credit Extension:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;other than in the case of the initial Borrowing and any Borrowings which are advanced within thirty (30) Business Days after the Initial Borrowing Date, with respect to the Title Policy, a date-down endorsement from the Title Company showing no additional title exceptions or other matters except Permitted Liens and otherwise in form and substance reasonably acceptable to the Administrative Agent (subject to the Title Endorsement Limitations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;any documents reasonably required by the Title Company and any payments for all documented fees and out-of-pocket charges required by the Title Company, in each case, for the Title Company to issue Title Policy date-down endorsement described in <u>sub-clause[(A)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) 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;(C)&nbsp;&nbsp;&nbsp;&nbsp;to the extent required to be provided to a Loan Party under the applicable Material Project Document as of the applicable Borrowing date, duly executed acknowledgements of payments, waivers and/or releases of mechanics' and materialmen's liens from each applicable Material Project Party (other than the Interconnection Counterparty) as of the date of its current invoices (other than

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work in progress for which amounts are not yet due or are being contested in good faith by appropriate proceedings and for which adequate reserves are in place), in each case, appropriately completed in the form attached to the applicable Material Project Document, or if no applicable form is attached to the applicable Material Project Document, in the required statutory form, or otherwise in a form reasonably satisfactory to the Administrative Agent and, if required, the Title Company; <u>provided</u>, <u>however</u>, that if the foregoing lien waivers or releases cannot be obtained from the applicable Material Project Party, then the foregoing condition shall be satisfied if the Borrowers deliver to the Administrative Agent either a bond or other acceptable security specific to such mechanics' or materialmen's Lien, in form and substance reasonably satisfactory to the Administrative Agent has been posted or provided in such manner and amount as to assure that any amounts owed to the relevant Material Project Party as to whom the filing periods for mechanics' and materialmen's Liens have not expired or who have filed Liens, and covering the applicable Loan Party's liability to such Material Project Party, will be promptly paid in full when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Project Documents</u>. To the extent not previously delivered, Administrative Agent shall have received copies of the Material Project Documents in effect, which shall include the Material Project Documents listed on <u>Schedule V</u>. The Material Project Documents shall be duly executed and such Material Project Documents shall be certified by a Authorized Officer of the Borrowers as being true, complete and correct as of such date, which certificate shall include a certification that (A) all Material Project Documents are in full force and effect, (B) no Loan Party is in material breach of any material obligation under any Material Project Document and, to the Borrowers' knowledge, no event has occurred or circumstance exists that, with the passage of time or the giving of notice or both, would constitute a breach of any material obligation under any Material Project Document, (C) all conditions precedent to the effectiveness of the Development Agreement, the Interconnection Agreement and the Transmission Services Agreement shall have been satisfied, and (D) to the Borrowers' knowledge, no other party is in material breach of any of such other party's material obligations under any Material Project Document and no event has occurred or circumstance exists that, with the passage of time or the giving of notice or both, would constitute a material breach under any Material Project Document; and, if applicable, the Administrative Agent shall have received an updated <u>Schedule V</u> in form and substance reasonably satisfactory to Administrative Agent (whereupon such <u>Schedule V</u> shall be deemed to be amended).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Satisfactory Work</u>. All work that has been done on the Project has been done in a good and workmanlike manner and in accordance with the Material Construction Contract, the other Material Project Documents and Prudent Industry Practices, in each case, in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;<u>Permits</u>. All material Permits for the Project required to have been obtained by any Loan Party or for the benefit of such Loan Party under applicable Governmental Rule in light of the then current stage of siting, development, construction and operation of the Project as provided in the Construction Budget and Construction Schedule shall have been duly obtained and validly issued and shall be in full force and effect, no unsatisfied condition to its effectiveness required to be satisfied as of the Borrowing date exists that could reasonably be

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expected to allow material modification, and, except as set forth on <u>Schedule III</u>, all administrative and judicial appeal periods provided under the law under which such Permit was issued with respect to such Permit have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Equity Requirement</u>. Confirmed Contributed Amounts equal to or greater than the Minimum Equity Requirement shall have been fully funded in cash on or prior to the date of such Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;<u>Fees and Costs</u>. All amounts then required to be paid by any Borrower to the Administrative Agent or any Lender under the Fee Letters and any other Loan Documents, and all taxes and reasonable fees and other costs then due and payable by a Borrower in connection with the execution, delivery, recordation and filing of the documents and instruments required to be filed as a condition precedent in this <u>Section[5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>in respect of the requested Borrowing (to the extent such amounts have been invoiced no later than five (5) Business Days prior to the applicable Borrowing date), shall have been paid in full.

SECTION 5.3.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Customs Duties</u>. As of each Credit Extension, all Customs Duties, if any, that have been asserted and are due and payable have been paid.

SECTION 5.3.16&nbsp;&nbsp;&nbsp;&nbsp;<u>XRC Facility Payoff</u>. Solely with respect to the second Credit Extension, the Administrative Agent shall have received an executed payoff letter, substantially in the form attached hereto as <u>Exhibit U</u> (the "<u>XRC Facility Payoff Letter</u>"), together with applicable draft UCC-3 financing statements, confirming that all Liens related to the XRC Facility shall be discharged as of the date of the second Credit Extension.

SECTION 5.3.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Borrower Model</u>. Solely in respect of the second Credit Extension, the Administrative Agent shall have received an updated Borrower Model, in form and substance reasonably satisfactory to the Required Lenders.

SECTION 5.3.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Survey</u>. Solely in respect of the second Credit Extension and with respect to each Surface Property, the Administrative Agent shall have received a survey (A) prepared by a surveyor reasonably acceptable to the Administrative Agent, (B) dated not earlier than three (3) months prior to delivery of the Title Policy pursuant to this Section, (C) certified to the Administrative Agent, the Collateral Agent and the Title Company issuing the Title Policy pursuant to <u>Section 5.3.9(d)(ii)</u> above, which certification shall be reasonably acceptable to the Administrative Agent and the Collateral Agent, and (D) complying with the "Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys," jointly established and adopted by ALTA and NSPS and effective as of 2021, including items 1, 2, 3, 4, 8, 6(b), 11, 13, 14, 16, 17, 18 and 19 of Table A of the Minimum Standard Detail Requirements for ALTA/NSPS Surveys (except for (1) such deviations as are reasonably acceptable to the Administrative Agent and (2) the surveys of easement areas situated outside of the main Project site(s) may be dated earlier than three (3) months prior to the date of the second Credit Extension), or such other surveys along with affidavits of no change as may be reasonably accepted by the Administrative Agent and the Collateral Agent and the Title Company issuing the Title Policy pursuant to <u>Section 5.3.9(d)(ii)</u> above.

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SECTION 5.3.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Cost Segregation Report</u>. As of the date of second Credit Extension, the Administrative Agent shall have received an updated draft copy of the Cost Segregation Report, if such report has been updated since the Closing Date.

SECTION 5.3.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Project Company Ownership</u>. Solely in respect of the second Credit Extension, the Administrative Agent shall have received evidence that the membership interests of each Project Company have been transferred to Cape Phase 1 Borrower, pursuant to terms reasonably satisfactory to Administrative Agent, acting at the direction of the Required Lenders.

SECTION 5.3.21&nbsp;&nbsp;&nbsp;&nbsp;<u>E&S Self-Monitoring Report</u>. Solely in respect of the second Credit Extension, the Administrative Agent shall have received an E&S Self-Monitoring Report.

SECTION 5.3.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Funding of Major Maintenance Reserve Account</u>. As of the date of second Credit Extension and as of the date of each Credit Extension thereafter, the Major Maintenance Reserve Account is fully funded in accordance with Section 3.06(a) of the Depositary Agreement.

SECTION 5.3.23&nbsp;&nbsp;&nbsp;&nbsp;<u>Funds Flow Memorandum</u>. The Administrative Agent shall have received the Second Credit Extension Funds Flow Memorandum, in form and substance acceptable to the Administrative Agent and all Lenders.

SECTION 5.3.24&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Date</u>. The Closing Date shall have occurred (including concurrently on the date of such Credit Extension).

SECTION 5.3.25&nbsp;&nbsp;&nbsp;&nbsp;<u>Water Appropriation Permit</u>. The Water Appropriation Permit shall not have become subject to any administrative or judicial appeal, intervention, or similar proceeding, including any requests filed for reconsideration with the Utah State Engineer or an appeal with the Utah District Court of the Utah State Engineer's approval of the Application to Appropriate (any such occurrence, a "<u>Water Appropriation Permit Appeal</u>") and all such administrative and judicial appeal periods have expired; <u>provided</u> that the condition under this <u>Section 5.3.25</u> shall be deemed satisfied if (a) a request for reconsideration to the State Engineer of the Water Appropriation Permit has been filed and is denied or considered to be denied under the applicable Governmental Rule, no other Water Appropriation Permit Appeal has been filed or is otherwise pending, and all administrative and judicial appeal periods have expired, or (b) the applicable Loan Parties have entered into (i) amendments to existing water right leases (or an acquisition of new water right leases or purchased water rights) in an amount sufficient to supply the water required for the full operation of the Project, in each case with termination dates no earlier than the conclusion of the full amortization period set forth in the Borrower Model and that authorize the filing of permanent change applications on the leased water for geothermal use at the Project, in form and substance reasonably acceptable to all Lenders, and (ii) an approval by the Utah State Engineer of a permanent change application with respect to such water rights to permanently change the use of such water rights to geothermal use by the Project, in form and substance reasonably satisfactory to all Lenders, for which all administrative and judicial appeal periods have expired with no administrative or judicial appeal, intervention, or similar proceeding having been filed or pending.

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SECTION 5.3.26&nbsp;&nbsp;&nbsp;&nbsp;<u>Real Estate Documents</u>. Solely in respect of the second Credit Extension, the Administrative Agent shall have received duly executed copies of the Confirmatory Subleases, the UODA Amendment, the GSSA Amendments, and the Assignment Amendment.

SECTION 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Determinations Under[Article V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) For purposes of determining compliance with the conditions specified in <u>Section[5.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 5.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[Section 5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) each Lender (in the case of <u>Section[5.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1) and each Required Lender (in the case of <u>Sections[5.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and <u>[5.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1) shall be deemed to have consented to, approved or accepted or to be satisfied with each document or other matter required thereunder to be consented to or approved by or to be acceptable or satisfactory to such Lender unless an officer of the Administrative Agent responsible for the transactions contemplated by the Loan Documents shall have received notice from such Lender prior to the Closing Date or such other applicable date specifying its objection thereto and, to the extent applicable, such Lender shall not have made available to the Administrative Agent such Lender's ratable portion of such Borrowing.

**ARTICLE VI**

**<u>REPRESENTATIONS AND WARRANTIES</u>**

In order to induce the Credit Parties to enter into this Agreement and to make Credit Extensions hereunder, each Borrower represents and warrants as set forth in this Article, on the Closing Date, the date of any Credit Extension and the Conversion Date; <u>provided</u> that the representations and warranties set forth in this <u>Article VI</u> as they relate to the Cape Phase I Pledgor and the Project Companies (including the Capital Securities in the Project Companies) or the Loan Documents to which a Project Company or the Cape Phase I Pledgor is a party shall not take effect until the date of the second Credit Extension.

SECTION 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Organization, etc.</u> Each Loan Party (a) is validly organized and existing and in good standing under the laws of the state or jurisdiction of its incorporation or organization, (b) is duly qualified to do business and is in good standing as a foreign entity in each jurisdiction where the nature of its business requires such qualification (except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect) and (c) has full power and authority (i) to enter into and perform its Obligations under each Transaction Document and each other agreement or instrument contemplated thereby to which it is or will be a party, (ii) to own and hold under lease its property and (iii) to conduct its business substantially as currently conducted by it and as proposed to be conducted under the Transaction Documents to which it is a party.

SECTION 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Due Execution, Delivery and Authorization, Non-Contravention, etc.</u> Each Loan Party has duly executed and delivered each Loan Document to which it is a party. The execution, delivery and performance by each Loan Party of each Loan Document executed or to be executed by it, each such Loan Party's participation in the consummation of all aspects of the Transactions, and the execution, delivery and performance by the Borrowers or (if applicable) any other Loan Party of the agreements executed and delivered by it in connection with the Transactions are in each case within each such Person's powers, have been duly

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authorized by all necessary corporate, limited liability company or partnership action, as applicable, and do not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;contravene (i) any Loan Party's Organic Documents, (ii) any contractual restriction binding on or affecting any Loan Party in any material respect (other than any such contractual restriction that shall have been waived on or prior to the Closing Date or in the case of the Cape Phase I Pledgor and the Project Companies, the date of second Credit Extension) (except for any such contravention that could not reasonably be expected to have a Material Adverse Effect), (iii) any provision of any court decree or order binding on or affecting any Loan Party in any material respect or (iv) subject to the receipt of any necessary authorizations or approvals from, the taking of any other necessary actions by, or the submission of any necessary notice to or filing with, Governmental Authorities in connection with the exercise of certain foreclosure remedies under the Loan Documents, any provision of any law or governmental regulation binding on or affecting any Loan Party in any material respect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;result in, or require the creation or imposition of, any Lien on any Loan Party's properties or assets now owned or hereafter acquired by the applicable Loan Party (except Permitted Liens or otherwise as permitted or required by this Agreement).

SECTION 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Government Approval, Regulation, etc</u>. No material authorization or approval or other action by, and no material notice to or filing with, any Governmental Authority or other Person (other than those which have been, or on the Closing Date will be, duly obtained or made and which are, or on the Closing Date will be, in full force and effect) is required by any Obligor for the due execution, delivery or performance (including the valid granting of any security interest or the enforcement thereof) by any Loan Party of any Loan Document to which it is a party, except for (a) filings for the perfection of security interests which will not be made prior to the date of the second Credit Extension but which will have been delivered to the Administrative Agent (or its agents) on the date of the second Credit Extension for filing on the date of the second Credit Extension, (b) authorizations, approvals, actions, notices, and filings in connection with the exercise of certain foreclosure remedies under the Loan Documents, and (c) the authorizations, approvals, actions, notices and filings disclosed in <u>Item 6.3</u> of the Disclosure Schedule.

SECTION 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Validity, etc</u>. Assuming due execution and delivery by the other parties thereof, each Loan Document to which any Loan Party is a party constitutes the legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms (except, in any case, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally and by principles of equity (regardless of whether enforcement is sought in equity or at law)).

SECTION 6.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer Agreements</u>. Each of the representations and warranties of a Loan Party set forth in any ITC Transfer Agreement or PTC Transfer Agreement to which such Loan Party is a party, was, as of each date such representation and warranty was made, (i) true and correct in all material respects or (ii) if and to the extent such representations and warranties are qualified by the words "material," "Material Adverse Change" or similar qualifications, true and correct, as qualified.

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SECTION 6.6&nbsp;&nbsp;&nbsp;&nbsp;<u>No Material Adverse Effect.</u> Since December 31, 2024, there has been no event or occurrence which has had and is continuing to have, or could reasonably be expected to result in, individually or in the aggregate, any Material Adverse Effect.

SECTION 6.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Litigation</u>. There is no pending or, to the knowledge of any Loan Party, threatened (in writing) litigation, investigation, action or proceeding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;to which the Loan Parties are party or any of their respective properties, businesses, assets or revenues are bound that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;which purports to adversely affect the legality, validity or enforceability of any Loan Document or the Transactions.

SECTION 6.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Item[6.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of the Disclosure Schedule lists, as of the date of the second Credit Extension, with respect to each Loan Party, (i) the state or jurisdiction of such Loan Party's organization and legal entity type and (ii) the percentage of interests of the Capital Securities of such Loan Party owned by its parent(s). The Capital Securities of each Loan Party has been duly authorized and validly issued, are fully paid and non-assessable. There is no existing option, warrant, call, right, commitment or other agreement to which a Loan Party is a party requiring, and there is no membership interest or other Capital Securities of a Loan Party outstanding upon which conversion or exchange would require, the issuance by a Loan Party of any additional membership interests or other Capital Securities of such Loan Party or other Capital Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a membership interest or other Capital Securities of the Loan Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) Cape Phase I Pledgor owns one hundred percent (100%) of the membership interests in Cape Phase 1 Borrower; (ii) WellCo Pledgor owns one hundred percent (100%) of the membership interests in WellCo Borrower; and (iii) as of the date of the second Credit Extension, Cape Phase 1 Borrower owns one hundred (100%) of the membership interests in each Project Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) Cape Phase 1 Borrower and each Project Company is an entity disregarded as separate from its owner for U.S. federal income tax purposes and (ii) WellCo Borrower is treated as a corporation for U.S. federal income tax purposes other than if otherwise required by any ITC Transfer Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party (i) has conducted any business other than the business contemplated by the Transaction Documents, (ii) is a general partner or a limited partner in any general or limited partnership or a joint venture in any joint venture and (iii) has any Subsidiaries except as set forth in <u>Item[6.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of the Disclosure Schedule.

SECTION 6.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Ownership of Properties</u>. (a) Each Loan Party owns (i) in the case of owned real property, good and marketable fee title to, (ii) in the case of owned personal property, good and valid title to, or (iii) in the case of leased real or personal property, valid and enforceable leasehold and/or easement interests (as the case may be) in, all of its material

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properties and assets, real and personal, tangible and intangible, of any nature whatsoever, free and clear in each case of all Liens or claims, except for Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;With respect to each Real Property Document, no Loan Party is in material breach or default under such Real Property Document, and, to the knowledge of the Loan Parties, no event has occurred, or will occur with the recordation of a Mortgage against any such Real Property Document (to the extent a Mortgage can and is required to be recorded against such Real Property Document pursuant to the terms of the Loan Documents) or the interest granted thereunder or circumstance exists which, with the delivery of notice, the passage of time or both, would constitute such a material breach or default, or permit the termination, material modification or acceleration of rent (to the extent rent is payable thereunder) under such Real Property Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Other than as may constitute a Permitted Lien, the real property set forth on <u>Item</u> <u>[6.9(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of the Disclosure Schedule is not subject to any lease, sublease, license or other agreement granting to any Person, other than the WellCo Borrower and the Project Companies, any right to the use, occupancy, possession or enjoyment of such property or any portion thereof that would interfere in a material adverse respect with the construction and operation of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except (i) as could not reasonably be expected to have a Material Adverse Effect or (ii) for real property rights that are reasonably expected to be available as and when required, each Loan Party owns all real property interests (including but not limited to fee simple, easement, and leasehold estates), tangible personal property, intangible personal property, fixtures, water rights, contracts, agreements, permits, licenses, approvals, privileges, franchises and governmental authorizations reasonably necessary for the Development of the Project as contemplated by the Transaction Documents and in accordance with Applicable Laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Real Property Documents (i) are sufficient to enable the Project to be located, operated and maintained on the applicable Project site described therein in material compliance with Applicable Law, the applicable Project Documents and as contemplated in the Borrower Model; and (ii) provide adequate legal and practical ingress and egress for any purpose, including, to the extent any Real Property Document is a recorded instrument that grants a fee leasehold or easement interest, legal access from a public right of way to the Project, in connection with the operation and routine maintenance of the Project under the Project Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party has received any written notice of, nor has any knowledge of, (i) any pending Event of Loss or condemnation proceeding affecting any material parcel forming part of the Project site or any sale or disposition thereof in lieu of condemnation or (ii) any change in the zoning classification of any material portion of the Project site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party has created, incurred, assumed or permitted to exist any Indebtedness with respect to such Person, other than Permitted Indebtedness.

SECTION 6.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Intellectual Property</u>. Each Loan Party owns or has the right to use all patents, trademarks, service marks, trade names, domain names, copyrights, licenses and other

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rights which are necessary for the ownership, construction, and operation of the Project, except where the failure of such Loan Party to so own or have the right to use could not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Loan Parties, excluding the use of commercially available "off-the-shelf" software, no material product, process, method, substance, part or other material presently contemplated, as of the Closing Date, to be sold or employed by a Loan Party in connection with its business will infringe any patent, trademark, service mark, trade name, domain name, copyright, license or other right owned by any other Person in a manner that could reasonably be expected to have a Material Adverse Effect.

SECTION 6.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes; Other Laws</u>. (a) Except as would not reasonably be expected to be material and adverse to a Loan Party, (x) each Loan Party has timely and duly filed all federal, state, local and other tax returns and reports required by law to have been filed by it, and (y) each Loan Party has paid all material Taxes to the extent due, except any such Taxes which are being diligently contested in good faith by appropriate proceedings and for which adequate reserves are being maintained in accordance with GAAP. No material Tax Liens have been filed with respect to the assets of any Loan Party other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Loan Parties have complied with all Applicable Laws (other than (i) any such laws relating to the Taxes, which are covered in <u>clause[(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>above), (ii) any such laws relating to Environmental Laws, which is covered in<u>[Section 6.13](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) and (iii) Sanctions, Anti-Corruption Laws, Anti-Money Laundering Laws and International Trade Laws, which are covered in <u>[Section 6.24](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1), except to the extent such non-compliance, individually or in the aggregate, could not reasonably be expected to cause a Material Adverse Effect.

SECTION 6.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Pension and Welfare Plans</u>. No Loan Party sponsors, maintains or participates in any Plan, Pension Plan or Multiemployer Plan. No ERISA Event has occurred with respect to any Loan Party or, except as would not reasonably be expected to have a Material Adverse Effect, with respect to any member of the Controlled Group.

SECTION 6.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Environmental Warranties</u>. Except as set forth on <u>Item 6.13</u> of the Disclosure Schedules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Project and the Loan Parties are, and to the Borrowers' knowledge have been, in compliance in all material respects with all applicable Environmental Laws, including all Permits required thereunder, in respect of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;there are no pending, or to the knowledge of the Loan Parties, threatened (in writing) material Environmental Claims against or with respect to the Project, the Project site, or any Loan Party with respect to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;there have been no Releases or, to the knowledge of the Loan Parties, any threatened Releases of Hazardous Materials by any Loan Party or, to the knowledge of the Loan Parties, by any third party at, on, under or from any real property currently or, to the knowledge of the Loan Parties, formerly owned or operated by any Loan Party that could reasonably be expected to require any Loan Party to perform any material investigation, cleanup or remedial action pursuant to any Environmental Law or any applicable Permit issued thereunder, and no Loan Parties, nor, to the knowledge of any Borrower, any third party, has used, Released,

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generated, manufactured, produced, treated, handled or stored in, on, from or under the Project sites, the Project or any other real property that is the subject of the Real Property Documents, or transported thereto or therefrom, any Hazardous Materials in a manner that could reasonably be expected to subject the Administrative Agent or the Lenders to any Environmental Claim or liability under any Environmental Law, or otherwise could reasonably be expected to subject any Loan Party to any material Environmental Claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;no property currently or, to the knowledge of the Loan Parties, formerly owned or operated by the Loan Parties is listed on the National Priorities List pursuant to CERCLA, or on any similar state list;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;there are no underground tanks, whether operative or temporarily or permanently closed or abandoned, or any landfills or surface impoundments located on the Project sites or the real property that is the subject of the Real Property Documents that could reasonably be expected to result in a material Environmental Claim or in any material liability of any Loan Party under any Environmental Law or any Permit issued pursuant to any Environmental Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;to the knowledge of the Loan Parties, there is no condition, circumstance, action, activity, or event that could reasonably be expected to form the basis of any material violation of Environmental Law or any Permit issued pursuant to any Environmental Law, by any Loan Party, or any material liability under any Environmental Law to, or any material Environmental Claim against, the Administrative Agent, the Lenders, or any Loan Party.

SECTION 6.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statements; Accuracy of Information; Projections</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The financial statements delivered pursuant to<u>[Section 5.1.7(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[Section 7.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) as applicable, present fairly in all material respects the financial position of the Sponsor or the Borrowers, as applicable, as at the date of, or for the fiscal period covered by, such financial statements and have been prepared in accordance with GAAP as properly applied, subject, in the case of any such unaudited financial statements, to changes resulting from audit and normal year-end adjustments. Except for those liabilities (i) that have been disclosed or otherwise accounted for in such financial statements, (ii) created pursuant to the Transaction Documents, or (iii) otherwise disclosed in writing to the Administrative Agent and reasonably acceptable to the Administrative Agent, no Obligor has any liabilities, direct or contingent, which in each case could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The (i) unaudited pro forma consolidated balance sheet of the Cape Phase 1 Borrower and its Subsidiaries and (ii) unaudited pro forma balance sheet of WellCo Borrower, in each case, as at the Closing Date (the "<u>Pro Forma Balance Sheet</u>"), as delivered in accordance with<u>[Section 5.1.7(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) To the knowledge and best estimate of the Borrowers, the Pro Forma Balance Sheet has been prepared based on the best information available to the Borrowers as of the date of delivery thereof, and presents fairly in all material respects the estimated financial position of the Borrowers (and if applicable, their Subsidiaries) on a pro forma basis as at the Closing Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;As of Closing Date, all information (other than the Borrower Model and other projections, estimates, budgets, and pro forma or forward-looking information (collectively, the "<u>Projections</u>"), any report of an Independent Consultant or other consultant and general economic information or general industry information) concerning the Loan Parties, any Loan Document or any transaction contemplated hereby (including the Transactions) or otherwise which was furnished to any Credit Party by or on behalf of any Loan Party, the Sponsor or any of their representatives in connection with any Loan Document or any transaction contemplated hereby (including the Transactions), taken together as a whole with all supplements thereto and other information with which such Credit Party has been furnished by or on behalf of any Loan Parties, was true, complete and correct in all material respects as of the date such information was furnished and as of the Closing Date, and did not contain any untrue statement of a material fact or omit to state any material fact necessary to make such information (taken as a whole) not misleading in light of the circumstances under which it was furnished; <u>provided</u> that, other than with respect to <u>Section[6.14(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) no representation or warranty is made with regard to the Projections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;As of the Closing Date, the Projections have been prepared in good faith based upon, assumptions believed by the Borrowers to be reasonable at the time made and at the time so furnished; it being understood that the Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Obligors; no assurance can be given that the Projections will be realized, and actual results compared to the Projections may differ and such differences may be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;As of the date provided, the information included in the Beneficial Ownership Certification delivered pursuant to <u>Section 5.1.13</u> is, to the knowledge of the Borrowers, true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;As of the Conversion Date, the Conversion Date Borrower Model has been prepared in good faith based upon, assumptions believed by the Borrowers to be reasonable at the time made and at the time so furnished; it being understood that the Conversion Date Borrower Model is subject to significant uncertainties and contingencies, many of which are beyond the control of the Obligors; no assurance can be given that the project information in the Conversion Date Borrower Model will be realized, and actual results may differ and such differences may be material.

SECTION 6.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulations T, U and X; Investment Company Act</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party is engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock, or extending credit for the purpose of buying or carrying margin stock, and no proceeds of any Credit Extensions will be used to purchase or carry margin stock or otherwise for a purpose which violates, or would be inconsistent with, Board Regulation T, U or Regulation X. Terms for which meanings are provided in Board Regulation T, U or Regulation X or any regulations substituted therefor, as from time to time in effect, are used in this Section with such meanings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) No Loan Party is and, after giving effect to the transactions contemplated hereby, no Obligor will be, required to be registered as an "investment company" within the

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meaning of the Investment Company Act of 1940, as amended and (ii) no Borrower is a "covered fund" under the Volcker Rule (Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act).

SECTION 6.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Energy Regulatory Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Project Company will store, generate, sell and transmit, electricity solely at wholesale pursuant to the Power Purchase Agreements.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Each Project Company is eligible for status as an EWG and will obtain EWG status on or before the date that it commences sales of energy, capacity, or ancillary services. Upon achieving and maintaining EWG status, each Project Company will be exempt from regulation under the federal access to books and records provisions of PUHCA, as provided at 18 C.F.R. §366.7(e).

&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)&nbsp;&nbsp;&nbsp;&nbsp;On or before the date that it commences sales of energy, capacity, or ancillary services, including test energy, from the Project, each Project Company will obtain MBR Authority and will be in material compliance with all applicable FERC, NERC, and Utah PSC requirements and the Interconnection Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) No Borrower is or will be a "public utility" under the FPA, and (ii) each Loan Party either is not a "holding company" under PUHCA or is, or will be, a "holding company" that qualifies for exemption from regulation under the federal access to books and records provisions of PUHCA, as set forth in 18 C.F.R. § 366.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Except for those that may be required as the result of the exercise of remedies under the Loan Documents, as of the Closing Date, no prior authorization or approval by FERC is required for the execution and delivery of, the consummation of the transactions contemplated by, or the performance of obligations under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;None of the Borrowers is subject to regulation as a "public utility", "transmission and distribution utility," "retail electric provider," an "electric utility" or an "electrical corporation" (or any other similar utility or provider under Utah law) as those terms are defined in the FPA and the applicable Utah laws, including Utah Code Ann. §54-2-1 and corresponding Utah administrative rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;There are no pending, or to the Loan Parties' knowledge, anticipated, or threatened (in writing) complaints, investigations, audits, self-reports, enforcement actions, penalty assessments, show cause orders or similar proceedings (formal or informal, public or non-public) alleging (i) a violation by any of the Obligors of the FPA or PUHCA, (ii) a failure by any of the Obligors or the Project to comply with or satisfy the requirements of the FPA, PUHCA or any FERC regulations or orders thereunder, (iii) a failure by any of the Obligors to comply with or satisfy the requirements of the Utah PSC, the applicable Utah laws, including Utah Code Ann. §§ 54-1-1 *et seq*. and 63G-4-101 *et seq*. and corresponding Utah administrative rules, or any Utah PSC orders thereunder, or (iv) a failure by any of the Obligors to comply with

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any NERC reliability requirements, except to the extent that such violation or failure to comply could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Except for those already obtained as listed in Part A of <u>Schedule III</u>, or as may be required for the exercise of remedies under the Loan Documents, no prior authorization or approval by the Utah PSC is required for the execution and delivery of, the consummation of the transactions contemplated by, or the performance of obligations under the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Except as may result from the exercise of remedies under the Loan Documents, none of the Credit Parties or any "affiliate" (as that term is defined in PUHCA) of any of them will, solely as a result of (i) the execution and delivery of, the consummation of the transactions contemplated by or the performance of obligations under the Loan Documents, (ii) each Project Company's ownership, leasing or operation of the Project, or (iii) each Project Company's sale or transmission of electricity at wholesale from the Project, be or become subject to, or not exempt from, regulation under the FPA, PUHCA, or regulation as a "public utility", "transmission and "distribution utility", an "electric utility", a "retail electric provider" or "electrical corporation" (or any other similar terms under applicable Utah law) as those terms are defined in the applicable Utah laws, including Utah Code Ann. §54-2-1 and corresponding Utah administrative rules.

SECTION 6.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Solvency</u>. Each Borrower, on a consolidated basis with its Subsidiaries, both before and after giving effect to any Credit Extension, is Solvent.

SECTION 6.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Deposit Account and Security Accounts</u>. Other than accounts of the Loan Parties that are permitted to exist pursuant to<u>[Section 8.18](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) no Loan Party has any Deposit Accounts or Securities Accounts (each as defined in the UCC), except those accounts set forth in the Depositary Agreement or otherwise permitted hereunder.

SECTION 6.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Labor Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party has, or has ever had, any employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;There is no strike, work stoppage or labor dispute in existence or threatened (in writing) involving labor at any Project site and relating to the Project that could reasonably be expected to have a Material Adverse Effect.

SECTION 6.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Easements; Utilities; Services</u>. All easements, leasehold and other property interests, and all utility and other services, means of transportation, facilities (including, to the extent applicable, electrical, water and sewage services and facilities), other materials and other rights, that are reasonably necessary for the Development of the Project have been or will be acquired and will be so available to the Loan Parties under the Project Documents as and when reasonably required in accordance in all material respects with all Applicable Laws (subject to any Permitted Liens).

SECTION 6.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>. All Required Insurance has been obtained and is in full force and effect and all premiums then due thereon have been paid and are not in arrears in

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respect thereof. No Loan Party has received any notice from any insurance company as to any cancellation, or reduction or other material adverse change in coverage, of such insurance.

SECTION 6.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Permits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Schedule III</u> contains a list of all material Permits (other than any Permits which are ministerial or nondiscretionary in nature and able to be obtained in the ordinary course of business) that are required to be held by or for the benefit of a Loan Party or the Project for the construction, ownership, routine maintenance, and operation of the Project under Applicable Law (including Environmental Laws), including sales of electric capacity, energy and ancillary services in wholesale electricity markets. All Permits listed in <u>Part A</u> of <u>Schedule III</u> ("<u>Part A</u> <u>Permits</u>") are required based on the current stage of construction or development of the Project and the applicable Loan Party has duly obtained or obtained such Part A Permit for its benefit. Each such Part A Permit is in full force and effect in the name of a Loan Party (or other holder as set forth in <u>Part A</u> of <u>Schedule III</u>), and not subject to any current legal proceeding, or to any unsatisfied condition to its effectiveness that could reasonably be expected to cause suspension, material modification or revocation of each such Part A Permit required to be satisfied as of the Closing Date and, except as set forth on <u>Part A</u> of <u>Schedule III</u>, all administrative and judicial appeal periods provided under the Governmental Rule under which such Part A Permit was issued with respect to such Part A Permit have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Loan Party is in material compliance with all Part A Permits, and to the Borrowers' knowledge, all relevant third parties are in material compliance with Part A Permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;As of the Closing Date, none of the Permits listed in <u>Part B</u> of <u>Schedule III</u> ("<u>Part</u> <u>B Permits</u>") are yet required based on the current stage of construction or development of the Project and each such Part B Permit is of a type that is reasonably expected to be timely obtainable prior to the time that it would become required, and, to the Borrowers' knowledge, no facts or circumstances exist that make it reasonably likely that any such Permit would not be so obtainable in a manner to allow construction and operation to proceed in accordance with the Construction Budget and Construction Schedule in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Since the Closing Date, no Permit has been amended, modified or supplemented in a manner that could reasonably be expected to have a Material Adverse Effect.

SECTION 6.23&nbsp;&nbsp;&nbsp;&nbsp;<u>Security Interests and Liens</u>. (a) Upon the delivery and filing or recordation of the documents set forth on <u>Item 6.23(a)</u> of the Disclosure Schedule, the security interest in the Collateral created under the Security Documents (other than the Mortgages) will be perfected with respect to such delivery and filing or recordation, and each such delivery and filing or recordation has been made, taken or delivered to the Collateral Agent and is in full force and effect, subject to any release of Collateral to the extent expressly permitted by the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Upon the delivery and filing or recordation of the documents set forth on <u>Item</u> <u>6.23(b)</u> of the Disclosure Schedule, the security interest in the Collateral created under the Mortgages will be perfected with respect to such delivery and filing or recordation, and each such delivery and filing or recordation shall have been made, taken or delivered to the Collateral

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Agent and shall be in full force and effect, subject to any release of Collateral to the extent expressly permitted by the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Security Documents (other than the Mortgages) create in favor of the Collateral Agent, for the benefit of the Secured Parties, a valid and, together with the filings contemplated in <u>clause[(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>above and other actions, perfected first priority security interest in the Collateral (subject to Permitted Liens) securing the payment of the Obligations, subject to any release of Collateral to the extent expressly permitted by the Loan Documents. Upon the delivery and filing or recordation of the Mortgages, the Mortgages shall create in favor of the Collateral Agent, for the benefit of the Secured Parties, a valid and, together with such filings and other actions, perfected first priority security interest in the Mortgaged Property as of the date of the second Credit Extension (subject only to Permitted Liens) securing the payment of the Obligations, subject to any release of Collateral to the extent expressly permitted under the Loan Documents.

SECTION 6.24&nbsp;&nbsp;&nbsp;&nbsp;<u>Sanctions; Anti-Corruption Anti-Money Laundering; International</u> <u>Trade Compliance.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;During the past five (5) years or, in the case of Sanctions, since April 24, 2019, each Loan Party and each of its directors, officers, employees, and to each Loan Party's knowledge, its Subsidiaries and agents (acting in their capacity as such) have been in compliance with applicable Anti-Money Laundering Laws, Anti-Corruption Laws, International Trade Laws, and Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Loan Party has implemented and maintains in effect policies and procedures reasonably designed to promote and achieve compliance by such Loan Party and its directors, officers, employees, and where applicable, its agents (acting in their capacity as such) with applicable Anti-Money Laundering Laws, Anti-Corruption Laws, International Trade Laws and Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each Loan Party represents that in connection with this Agreement it is not currently engaged in and has not, since April 24, 2019, engaged in any dealings or transactions with any Sanctioned Person or with or in any Sanctioned Jurisdiction, in each case in violation of applicable Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;During the past five (5) years, none of the Loan Parties nor any of their respective directors, officers, nor to such Loan Party's knowledge, its agents and employees, (acting in their capacity as such), is or has been the subject of any investigation, suit, or proceeding, or to such Loan Party's knowledge, any pending or threatened action by or before any court or Governmental Authority involving an actual or alleged violation of applicable Anti-Money Laundering Laws, Anti-Corruption Laws, International Trade Laws or Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;None of the Loan Parties or any of their respective directors, officers, or to such Loan Party's knowledge, its employees, agents or Affiliates is a Sanctioned Person.

SECTION 6.25&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Fees</u>. No broker's or finder's fee or commission will be payable with respect to the Transactions, except as may be payable to the Credit Parties.

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SECTION 6.26&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Project Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Schedule V</u> includes a list of all of the Material Project Documents to which a Loan Party is a party, in effect as of the Closing Date, (ii) each Material Project Document is in full force and effect, except for such termination or expiration thereof in accordance with their respective stated terms and not as a result of a default thereunder, and none of the Loan Parties or, to any Loan Party's knowledge, any other party thereto, is in material breach or material default thereunder that is continuing and (iii) except as has been previously disclosed in writing to the Credit Parties as required pursuant to this Agreement or except as expressly permitted pursuant to this Agreement, none of the Material Project Documents have been amended, modified or terminated in any material manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;As of any date after the Closing Date, to any Loan Party's knowledge, no event has occurred and is continuing under any Material Project Document that has resulted in either (i) the cancellation or termination of such Material Project Document by any Material Project Party; or (ii) the excuse of any Material Project Party from material liability for any material non-performance under such Material Project Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Except for (x) real property rights that are reasonably expected to be available as and when required, and (y) all other property, services and other contractual or permit rights reasonably expected to be available to each Loan Party as and when required on commercially reasonable terms, the services to be performed, the materials to be supplied and the real property interests and other rights granted pursuant to the Project Documents: (i) are sufficient to (A) enable the Project to be located and constructed on the Project site, (B) enable the Project to be operated and maintained on the Project site, and (C) enable the Cape Phase 1 Borrower to achieve Term Conversion on or prior to the Term Conversion Deadline, in each case in accordance in all material respects with the Project Documents, all Applicable Laws and the Construction Budget and Construction Schedule; and (ii) provide, as necessary in accordance with Prudent Industry Practices, rights of adequate ingress and egress for any reasonable purpose in connection with the construction of the Project and the operation and routine maintenance of the Project under the Project Documents.

SECTION 6.27&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Credit Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No applicable Loan Party is (or will be) a Disqualified Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) As of the Placed in Service Date for the WellCo Facilities, at least eighty percent (80%) all of the materials used to build the WellCo Facilities will be new and previously unused, except to the extent of any used materials that would not have a material impact on the WellCo Facilities' qualification for the ITC, and (ii) as of the Placed in Service Date for the GenCo Facilities, at least eighty percent (80%) all of the materials used to build the GenCo Facilities will be new and previously unused, except to the extent of any used materials that would not have a material impact on the GenCo Facilities' qualification for the PTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The WellCo Facilities is not comprised of any property that (i) is property not eligible for the ITCs as a result of the application of Section 50(b) of the Code or (ii) is "public utility property" within the meaning of Section 168(i)(10) of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;No private letter ruling with respect to either the WellCo Facilities or the GenCo Facilities has been obtained for the transactions contemplated under any ITC Transfer Agreement or PTC Transfer Agreement, as applicable, from the IRS; <u>provided</u> that, this representation shall not apply to the extent any private letter ruling is requested after the Closing Date in connection with an ITC Transfer Agreement or PTC Transfer Agreement, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;No portion of the basis of the WellCo Facilities is (or will be) attributable to any "qualified rehabilitation expenditure" within the meaning of Section 47(c)(2)(A) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;No obligations the interest on which is exempt from tax under Section 103 of the Code have or will be used to provide financing for the WellCo Facilities or the GenCo Facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The WellCo Facilities started construction in 2023 for purposes of Section 48 of the Code and the GenCo Facilities started construction in 2024 for purposes of Section 45 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;The GenCo Facilities and the WellCo Facilities are not a "single project" for purposes of Section 48 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;Each of the WellCo Facilities and the GenCo Facilities satisfies or will satisfy the prevailing wage and apprenticeship requirements in Sections 45(b)(7), 45(b)(8), 48(a)(10) and 48(a)(11) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;The WellCo Facilities will qualify for the domestic content bonus credit under Section 48(a)(12) of the Code.

SECTION 6.28&nbsp;&nbsp;&nbsp;&nbsp;<u>No Default</u>. No Default or Event of Default has occurred and is continuing. No Loan Party is in material default under or with respect to any of its contractual obligations and, to the knowledge of the Loan Parties, no counterparty to any Transaction Document (other than the Loan Documents) is in material default thereunder.

SECTION 6.29&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 49 of the Code</u>. None of the direct or indirect owners of the WellCo Facilities will cause the transferred ITCs available with respect to the WellCo Facilities to be reduced or limited as a result of the application of Section 49 of the Code.

SECTION 6.30&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-ECP Guarantor</u>. No Loan Party is a Non-ECP Guarantor.

SECTION 6.31&nbsp;&nbsp;&nbsp;&nbsp;<u>Equator Principles and ESG Action Plan</u>. Each Borrower and each Subsidiary Guarantor is in compliance in all material respects with the Equator Principles and the ESG Action Plan.

SECTION 6.32&nbsp;&nbsp;&nbsp;&nbsp;<u>Green Loan Principles</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Proceeds.</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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers deem that the Project qualifies as an eligible green project under the Green Loan Principles under the category "Renewable Energy –production" and that the Project has a direct contribution to the UN Sustainable Development Goal 7,

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which states as follows "Ensure access to affordable, reliable, sustainable and modern energy for all by increasing the share of renewable energy through investment in clean energy infrastructure."

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall use the proceeds of the Loans solely to finance or refinance Total Project Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Process for Project Evaluation and Selection.</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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers are special purpose vehicles established to complete the Project.

&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)&nbsp;&nbsp;&nbsp;&nbsp;Subject matter experts of the Borrowers (or Affiliates) have evaluated the Project's environmental and/or social risks and implemented appropriate mitigating measures, as needed.

&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)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers (or Affiliates) shall implement or have implemented high sustainability standards for the management of the Project, namely concerning the implementation of occupational health and safety programs, labor rights policies and environmental management plans for the Project.

**ARTICLE VII**

**<u>AFFIRMATIVE COVENANTS</u>**

Each of the Borrowers covenants and agrees with each Lender, each LC Issuer and the Administrative Agent that, until the Termination Date has occurred, such Person will perform or cause to be performed the obligations set forth below; <u>provided</u> that the covenants set forth in this <u>Article VII</u> as they relate to the Cape Phase I Pledgor or the Project Companies (including the Capital Securities in the Project Companies) or the Loan Documents to which a Project Company or the Cape Phase I Pledgor is a party shall not take effect until the date of the second Credit Extension.

SECTION 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Information, Reports, Notices, etc.</u> The Borrowers will furnish the Administrative Agent copies of the following financial statements, reports, notices and information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;as soon as available and in any event within sixty (60) days after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year beginning with the Fiscal Quarter ending on March 31, 2026, (i) an unaudited consolidated balance sheet of Cape Phase 1 Borrower and its Subsidiaries and (ii) unaudited balance sheet of WellCo Borrower, in each case, as of the end of such Fiscal Quarter and statements of income and cash flow of the applicable Borrower for such Fiscal Quarter and for the period commencing at the end of the previous Fiscal Year and ending with the end of such Fiscal Quarter, and including, in each case with the financial statements delivered pursuant to this clause on or after March 31, 2026, in comparative form the figures for the corresponding Fiscal Quarter in, and year-to-date portion of, the immediately preceding Fiscal Year, certified as complete and correct by an Authorized Financial Officer of the Borrowers and as presenting fairly in all material respects the financial condition and results

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of operation of the Borrowers in accordance with GAAP consistently applied (subject to normal year end audit adjustments and the absence of footnotes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;as soon as available and in any event within one hundred and twenty (120) days after the end of each Fiscal Year (beginning with the Fiscal Year ending December 31, 2025), a copy of (i) the consolidated balance sheet of the Cape Phase 1 Borrower and its Subsidiaries and (ii) the balance sheet of WellCo Borrower, in each case, and the related statements of income and cash flow of the applicable Borrower for such Fiscal Year audited (without any Impermissible Qualification) by the Independent Public Accountants, and including, in each case with the financial statements delivered pursuant to this clause on or after December 31, 2025, in comparative form the combined figures for the immediately preceding Fiscal Year, all such financial statements to be certified as complete and correct by an Authorized Financial Officer of the Borrowers and as presenting fairly in all material respects the financial condition and results of operation of Borrowers in accordance with GAAP consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) concurrently with the delivery of the financial information pursuant to <u>clauses</u> <u>[(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) a Compliance Certificate stating that no Default or Event of Default has occurred and is continuing (or, if a Default or Event of Default has occurred, specifying the details of such Default or Event of Default, as applicable, and the action that the Borrowers have taken or propose to take with respect thereto); and (ii) upon the written request of the Administrative Agent, the Borrowers shall make an Authorized Officer of the Borrowers available for a telephonic meeting (at such time as may be agreed between the Borrowers and the Administrative Agent) with the Administrative Agent and Lenders within fifteen (15) Business Days following delivery of the financial information delivered pursuant to <u>clauses[(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>to discuss such financial information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;within fifteen (15) days following the end of each calendar month until Substantial Completion has been achieved (beginning with the first full calendar month following the Closing Date), a Construction Report (in consultation with the Independent Engineer) prepared by the Borrowers (and including any applicable construction reports under the Material Project Documents);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;on or prior to the proposed Conversion Date and thereafter, no earlier than sixty (60) days and no later than thirty (30) days prior to the commencement of any Fiscal Year of the Project Companies thereafter, deliver to the Administrative Agent for its prior review and approval, such approval not to be unreasonably withheld, conditioned, or delayed, a copy of the Operating Budget for such year (or in the case of the initial Operating Budget, covering the period from the Conversion Date to the end of the first full Fiscal Year of the Borrowers occurring after the Fiscal Year in which the Conversion Date occurs) with respect to the operation and maintenance of the Project, detailed by month, substantially in the form of <u>Exhibit</u> <u>O-2</u> or otherwise in form and substance reasonably satisfactory to the Administrative Agent (each, an "<u>Operating Budget</u>"); <u>provided</u> that, if the Required Lenders have not raised an objection regarding the proposed Operating Budget within thirty (30) days of receipt of the proposed Operating Budget, such Operating Budget will be deemed approved by the Administrative Agent and the Required Lenders upon expiry of such thirty (30)-day period. Until any draft operating budget becomes the Operating Budget as provided herein, the Operating Budget most recently in effect (or, for the year in which Term Conversion occurs, the draft

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operating budget set forth in the Conversion Date Borrower Model) shall continue to apply subject to (i) any contractual escalation expressly set forth in a Material Project Document and (ii) with respect to any other operating and maintenance costs for which there is no built-in contractual escalation, an increase not to exceed the higher of (A) five percent (5%) of such costs set forth in the Operating Budget for the prior year and (B) escalation for any increase in the Consumer Price Index from the prior year. No Operating Budget shall be adopted or implemented by a Borrower without the prior written consent of the Administrative Agent (acting at the direction of the Required Lenders, in consultation with the Independent Engineer); <u>provided</u> that no consent shall be required (w) if the aggregate Project operating costs and aggregate Borrower operating costs set forth in such proposed Operating Budget do not exceed one hundred and ten percent (110%) of the greater of (1) the aggregate costs set forth in the then current Operating Budget and (2) the aggregate costs for such Fiscal Year set forth in the Borrower Model (except that no consent shall be required with respect to exceedances of line items for property taxes, franchise taxes and regulatory fees in accordance with Applicable Law), (w) for expenditures necessary to prevent or mitigate an emergency situation, (x) in respect of any Maintenance and Drilling Expenses, to the extent such expenditure will be funded using the amounts on deposit in the Major Maintenance Reserve Account, (y) in respect of any Audit Tail Insurance Expenses, to the extent such expenditure will be funded using the amounts on deposit in the Audit Tail Insurance Reserve Account, or (z) any other expenditure that will be fully funded with equity contributions from the Sponsor or any of its Affiliates (other than the Obligors). Copies of each final Operating Budget adopted shall be furnished to the Independent Engineer and the Administrative Agent promptly upon its adoption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;within thirty (30) days following the end of each calendar quarter following the Conversion Date, an operating report for such calendar quarter, substantially in the form of <u>Exhibit S</u> or otherwise in form and substance reasonably satisfactory to the Administrative Agent (each such report, a "<u>Quarterly Operating Report</u>"), which shall be certified by an Authorized Officer of the Borrowers as being true and correct in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;as soon as possible and in any event within five (5) Business Days after any Loan Party obtains knowledge of the occurrence of a Default or Event of Default, a statement of an Authorized Financial Officer of such Obligor setting forth details of such Default or Event of Default and the action which such Obligor has taken and proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;as soon as possible and in any event within five (5) Business Days after any Loan Party obtains knowledge of (i) the commencement of any litigation, action, proceeding or labor controversy, as applicable, against any Loan Party involving claims in excess of $300,000, or (ii) the occurrence of a Material Adverse Effect, notice thereof, and to the extent the Administrative Agent requests, copies of all documentation relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;as soon as possible and in any event within five (5) Business Days after any Loan Party becomes aware thereof, notice of any injunction, termination, suspension, loss or non-renewal of any material Permit or any threat thereof (in writing), or any other material dispute between a Loan Party and any Governmental Authority in respect of any material Permit, or the imposition of any additional material condition with respect thereto that could reasonably be expected to result in liability of or costs to the applicable Loan Party in excess of $100,000 individually or $250,000 in the aggregate with all other then outstanding disputes, other than

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such injunction, termination, suspension, loss or non-renewal or threat thereof in the ordinary course of business that could not, individually or in the aggregate, result in a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon and in any event within five (5) Business Days of the occurrence of one or more ERISA Events, that could reasonably be expected to have a Material Adverse Effect, notice thereof and copies of all material documentation relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon receipt thereof, copies of all "management letters" submitted to a Borrower or any other Loan Party by the Independent Public Accountants in connection with each audit made by such accountants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;promptly and in any event within five (5) Business Days if a Loan Party obtains knowledge that any Obligor or any of its directors, officers, employees or agents becomes a Sanctioned Person, such Loan Party will notify the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon the written request of any Credit Party, use commercially reasonable efforts to provide any information reasonably requested by such Credit Party to comply with the PATRIOT Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;promptly, (i) and in any event within five (5) Business Days upon receipt thereof copies, of all written notices of any breach, event of default, force majeure event, termination, amendment, or material dispute received by a Loan Party with respect to any (x) Material Project Document and (y) other Project Document, except if such event could not reasonably be expected to result in a Material Adverse Effect; (ii) and in any event within thirty (30) days following the receipt by a Loan Party thereof, copies of any material amendment or material consent under any Material Project Document, including any change orders under the Material Construction Contract or the Material Equipment Supply Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;promptly and in any event within three (3) Business Days upon the occurrence of any early cancellation or material adverse change in the terms, coverage or amounts of any insurance described in <u>Schedule IV</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon any material change in accounting policies or financial reporting practices by any Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;within thirty (30) days following the receipt by a Loan Party thereof, copies of any material Permit received by a Loan Party during such calendar quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;promptly and in any event within three (3) Business Days upon the occurrence or discovery of any (i) material noncompliance with or liability under any Environmental Law or Permit thereunder by any Loan Party, (ii) Environmental Claim against any Loan Party or (iii) Release of Hazardous Materials on or from any real property owned or operated by a Loan Party that, in any case, whether individually or in the aggregate, has resulted in or could reasonably be expected to result in a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;promptly and in any event within three (3) Business Day after the occurrence thereof, notice of any Forced Outage for a consecutive period of more than one hundred (100) hours;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon the occurrence thereof and in any event within five (5) Business Days after any Loan Party obtains knowledge of a Casualty Event involving a probable loss in excess of $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon the occurrence thereof and in any event within five (5) Business Days after any Loan Party obtains knowledge of a Title Event or Event of Loss in excess of $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;within five (5) Business Days of the occurrence of (i) any self-report by any Loan Party to FERC, the Utah PSC or NERC, or any notice of violation from FERC, the Utah PSC or NERC, of any material violation of or material failure to comply with the FPA, including NERC requirements or any requirements of the Utah PSC, (ii) receipt by any Loan Party of any notice from FERC (formal or informal, public or non-public) relating to any of a Project Company's EWG status that could reasonably be expected to result in a material adverse modification of any of a Project Company's EWG status or MBR Authority, (iii) any Loan Party becoming aware of the commencement of proceedings (formal or informal, public or non-public) against a Borrower before FERC alleging a violation of the regulations of FERC or alleging a violation of, or asserting a challenge to, a Project Company's EWG status or MBR Authority that could reasonably be expected to have a material and adverse effect on a Project Company or asserting jurisdiction over a Loan Party (other than the Project Companies) as a "public utility" under the FPA or a "holding company" under PUHCA (except with respect to an EWG or under Section 1165 of PUHCA), (iv) any Loan Party becoming aware of the commencement of an investigation or proceedings (formal or informal, public or non-public) before FERC or NERC alleging a violation of any applicable electric reliability standard that could reasonably be expected to result in an assessment of penalties that could have a Material Adverse Effect, or (v) any Loan Party becoming aware of the commencement of an investigation or proceedings before the Utah PSC alleging a violation of or failure by any Loan Party or the Project to comply with any Utah public utility laws or regulations applicable to the such Loan Party or the Project that could reasonably be expected to have a material and adverse effect on such Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;to the extent not publicly available, then using commercially reasonable efforts, (i) as soon as available and in any event within one hundred and twenty (120) days after the end of each Fiscal Year, audited financial statements of (A) the Sponsor, (B) from the ITC Transfer Effective Date until the TRABL Maturity Date, each ITC Transferee, (C) until the Conversion Date, the PTC Transferee, the O&M Provider, the Contractor and each Equipment Supplier (or such Person's applicable guarantor, if the obligations of such Person under the applicable Material Project Document are guaranteed by a guarantor); and (ii) as soon as available and in any event within sixty (60) days after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year, and to the extent not publicly available, audited financial statements of the Sponsor, from the ITC Transfer Effective Date until the TRABL Maturity Date, each ITC Transferee, and until the Conversion Date, the O&M Provider;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;promptly upon the occurrence thereof, any event which could reasonably be expected to materially delay the Substantial Completion Date and the occurrence of the Conversion Date prior to the Term Conversion Deadline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;any event that could reasonably be expected to result in (i) any reduction of in excess of one percent (1%) to (A) the projected PTC Transfer Proceeds pursuant to the PTC Transfer Agreement (due to any Change in Tax Law or Proposed Change in Tax Law) or (B) the projected ITC Transfer Proceeds pursuant to the ITC Transfer Agreement (due to any Change in Tax Law or Proposed Change in Tax Law) or (ii) any material delay in the timing of receipt by any applicable Loan Party of all or any material portion of the PTC Transfer Proceeds or the ITC Transfer Proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;any material notice or report delivered by any Loan Party to an ITC Transferee or PTC Transferee (or by either any ITC Transferee or PTC Transferee to a Loan Party) pursuant to the ITC Transfer Agreement or the PTC Transfer Agreement, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;such other financial information available to the Loan Parties as any Credit Party through the Administrative Agent may from time to time reasonably request in writing, including financial information and reports with respect to the terms of and information provided pursuant to the Compliance Certificate and with respect to reconciling the financial information required to be delivered pursuant to<u>[Section 7.1(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>with the Operating Budget and the then-applicable Borrower Model;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;such identifying documentation, financial information and other information that a Credit Party reasonably requests in order to comply with its ongoing obligations under applicable "know your customer" provisions of Anti-Money Laundering Laws, including the PATRIOT Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;any change in the information provided in the Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified in parts (c) or (d) of such certification (or any address of any such Person);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;promptly and in any event within five (5) Business Days, notify the Lenders and the Administrative Agent should any Loan Party become aware that any Loan Party or any of their respective directors, officers, employees or agents (acting in their capacity as such) has become the subject of any pending or threatened investigation, action, suit, or proceeding by or before any court or Governmental Authority involving an actual or alleged violation of applicable Anti-Money Laundering Laws, Anti-Corruption Laws, International Trade Laws or Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;by no later than the Conversion Date, (i) an updated P90 Production Forecast, prepared in consultation with the Subsurface Consultant and certified by the Borrowers, and (ii) an updated Maintenance and Drilling Projection, as certified by the Borrowers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;by no later than forty-five (45) days prior to the end of each calendar year following the Conversion Date, (i) an updated P90 Production Forecast, prepared in consultation with the Subsurface Consultant and certified by the Borrowers, (ii) an updated Maintenance and Drilling Projection, as certified by the Borrowers and (iii) an updated Borrower Model, as

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required in respect of the assumptions updated pursuant to <u>clauses (i)</u> and <u>(ii)</u>, together with relevant comparisons between current and historical production data for the Project (including well production data, flow rates, and temperature).

SECTION 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Existence; Compliance with Contracts, Laws, etc.</u> Each Loan Party will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;preserve and maintain (i) its existence as a limited liability company or corporation, as applicable, in the jurisdiction in which it is organized or formed, (ii) its legal existence and qualification as a foreign corporation in each jurisdiction where the nature of its business or the location of its assets requires it to be so qualified, and (iii) all rights, privileges and franchises necessary in the normal conduct of its business, in each case of <u>clause (ii)</u> and <u>(iii)</u>, except as could not reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;obtain, maintain in full force and effect and comply in all material respects with all material Permits issued to or held in a Loan Party's name to construct, own, operate, and routinely maintain the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;comply in all material respects with, and cause the Project to be constructed and completed in material compliance with, the Material Project Documents, the Construction Budget and Construction Schedule, in each case as adjusted or revised in accordance with this Agreement, and cause the Project to be operated and maintained in material compliance the applicable Material Project Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;use commercially reasonable efforts to (i) achieve Substantial Completion prior to the Term Conversion Deadline and (ii) achieve Final Completion (as such term is defined in any Material Construction Contract) on or prior to the applicable milestone date therefor in each Material Construction Contract, in each case in accordance with Applicable Law and Prudent Industry Practices in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;comply with (i) applicable Anti-Corruption Laws and Anti-Money Laundering Laws and (ii) all other Applicable Laws, rules, regulations and orders (such compliance to include compliance with ERISA, the FPA, PUHCA, and state regulatory laws governing public utilities, public service companies, generation owners, or similar entities, in each case, as applicable), including the payment (before the same become delinquent) of all Taxes imposed upon any Loan Party or upon its property, except to the extent being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set aside on the books of such Loan Party, except, solely with respect to this <u>sub-clause (ii)</u>, to the extent such non-compliance could not reasonably be expected to cause a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;maintain in effect and enforce policies and procedures reasonably designed to promote and achieve compliance by the Loan Parties, their Subsidiaries, and their respective directors, officers, employees, and agents (acting in their capacity as such) with applicable Anti-Money Laundering Laws, Anti-Corruption Laws, International Trade Laws and Sanctions.

SECTION 7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Operation of Properties in Accordance with Industry Practices</u>. Each of the Loan Parties will operate its properties (including the Project, after Substantial

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Completion), in accordance with Prudent Industry Practices, except to the extent that any applicable legal or regulatory requirements require compliance with different standards.

SECTION 7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance</u>. As may be consistent with applicable legal and regulatory requirments, each Loan Party will (a) maintain, preserve, protect and keep its respective properties in good repair, working order and condition (ordinary wear and tear excepted) in accordance with Prudent Industry Practices (except in respect of any Event of Loss or Casualty Event, following which the Loan Party is, to the extent permitted or required by the Loan Documents, attempting to restore, or has restored, the affected property), (b) make necessary repairs, renewals and replacements to the Project in accordance with Prudent Industry Practices, (c) maintain all equipment and spare parts inventory in accordance with Prudent Industry Practices, and (d) maintain all Permits necessary for the construction, ownership, operation, and routine maintenance of the Project except as could not reasonably be expected to have a Material Adverse Effect.

SECTION 7.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Loan Party will maintain, or cause to be maintained insurance, at the times, in the forms, types, amounts and with the deductibles specified in <u>Schedule IV</u> (the "<u>Required</u> <u>Insurance</u>") (unless waived in acccordance with the terms thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If any portion of any Surface Property is located in an area identified by the Federal Emergency Management Agency as an area having special flood hazards, then the applicable Borrower shall (or shall cause the applicable Loan Party to) cooperate with the Administrative Agent (acting at the direction of the Required Lenders) in order to satisfy the Flood Insurance Requirements.

SECTION 7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Books and Records; Inspection</u>. Each Loan Party will keep books and records in accordance with GAAP which accurately reflect all of its business affairs and transactions and permit each Credit Party or any of their respective representatives (including, without limitation, the Independent Engineer), from time to time at reasonable times and upon reasonable written notice to such Loan Party (which visits shall be limited to (i) once prior to the the Substantial Completion Date, and (ii) otherwise once per Fiscal Year at the discretion of the Required Lenders; <u>provided</u> that there will be no limit on visits if an Event of Default has occurred and is continuing), to visit such Loan Party's offices, subject to compliance with applicable security and safety requirements, to discuss such Loan Party's financial matters with its officers and employees, and the Independent Public Accountants (and each Loan Party hereby authorizes such Independent Public Accountant to discuss such Loan Party's financial matters with each Credit Party or any of their respective representatives whether or not any representative of such Loan Party is present) and to examine (and photocopy extracts from) any of such Person's books and records; <u>provided</u> that, unless a Default or Event of Default shall have occurred and be continuing, only one (1) such visit per Fiscal Year shall be at the expense of the Loan Parties. The Borrowers shall pay any fees of such Independent Public Accountant incurred in connection with any Credit Party's exercise of its rights pursuant to this <u>Section[7.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

SECTION 7.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Environmental Laws</u>. The Loan Parties will (a) comply in all material respects with, and take commercially reasonable steps to cause all lessees and other Persons

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operating or occupying their owned, leased or operated properties to comply with, all applicable Environmental Laws and applicable Permits issued thereunder and to keep all applicable Permits required under Environmental Law in effect; (b) conduct any investigation, cleanup, removal, remedial or other corrective action required pursuant to Environmental Law related to any Release of Hazardous Materials on, in, under or from their properties; provided, however, that such Loan Party shall not be required to undertake any such investigation, clean-up, removal, remedial or other corrective action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances; (c) keep their properties free of any Lien imposed by any Environmental Law other than Permitted Liens; and (d) comply in all material respects with the Equator Principles and the ESG Action Plan, and supply such available information and take all commercially reasonable actions requested by the Lenders in connection with the Lenders' reporting obligations under the Equator Principles to the extent applicable the Project.

SECTION 7.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Use of Proceeds</u>. The Loan Parties will use the proceeds of (a) in the case of the Construction Loans and in the case of the TRABL Loans, (i) to repay the XRC Facility in full as of the date of the second Credit Extension, (ii) for the payment or reimbursement of Total Project Costs in respect of the Project, (iii) for making any Restricted Payments to the extent permitted pursuant to<u>[Section 8.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) and (iv) for the payment of transaction costs and expenses incurred in connection the Transactions (including pursuant to <u>Section 11.2</u>); <u>provided that</u> the permitted use of proceeds for any Loans granted as of the date of the initial Credit Extension shall be limited to the payment of the fees and costs set forth in <u>Section</u> <u>5.3.14(f)</u>; (b) in the case of the Material Construction Contract LC Loans, solely for reimbursement of draws on Material Construction Contract Letters of Credit; (c) in the case of the Shell PPA LC Loans, solely for reimbursement of draws on Shell PPA Letters of Credit; (d) in the case of the SCE PPA LC Loans, solely for reimbursement of draws on SCE PPA Letters of Credit; and (e) in the case of DSR LC Loans, solely for reimbursement of draws on DSR Letters of Credit. The Cape Phase 1 Borrower will use the Material Construction Contract Letters of Credit for the applicable Specified LC Purpose in respect of such Material Construction Contract LC Tranche. The Cape Phase 1 Borrower will use the Shell PPA Letters of Credit for the applicable Specified LC Purpose in respect of such Shell PPA LC Tranche. The Cape Phase 1 Borrower will use the SCE PPA Letters of Credit for the applicable Specified LC Purpose in respect of such SCE PPA LC Tranche. Each Borrower will use the DSR Letters of Credit to support the obligations of such Borrower in respect of the DSR Requirement under the Loan Documents.

SECTION 7.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Security and Further Assurance, etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the limitations and exceptions of this Agreement and any applicable limitation in any Security Document, each Loan Party will execute and deliver any documents, Filing Statements, agreements and instruments, and take all further action (including filings of the Financing Statements and any filings in connection with the Mortgages), which shall comply with the delivery requirements set forth under <u>Section 5.3.9(b)</u> and <u>Section 5.3.9(d)</u>, as applicable, in each case, upon the reasonable written request of the Administrative Agent) that may be required under Applicable Law, or that the Administrative Agent or the Collateral Agent may reasonably request, in order to effectuate the transactions contemplated by the Loan Documents and in order to grant, preserve, protect and perfect the validity and first priority

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;From time to time, to the extent permitted under Applicable Law and subject to the limitations and exceptions of this Agreement and any applicable limitation in any Security Document, the Loan Parties will, at their cost and expense, promptly secure the Obligations by pledging or creating, or causing to be pledged or created, and preserving and maintaining, or causing to be preserved and maintained, perfected Liens with respect to the Collateral (it being agreed that it is the intent of the parties that except in the case of any release of Collateral in connection with any transactions permitted under<u>[Section 8.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) the Obligations shall be secured by, among other things, substantially all the assets of the Loan Parties). Such Liens will be maintained under the Loan Documents in form and substance reasonably satisfactory to the Administrative Agent and the Loan Parties, as applicable, shall deliver, or cause to be delivered, to the Administrative Agent and the Collateral Agent all such instruments and documents (including legal opinions, title insurance policies and lien searches) as the Administrative Agent and the Collateral Agent shall reasonably request to evidence compliance with this <u>Section 7.9</u>.

SECTION 7.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of Corporate Separateness</u>. (a) Each Loan Party will satisfy customary corporate formalities, including the holding of regular board of directors' and shareholders' or members', managers' or partners' meetings and the maintenance of corporate or company offices and records, (b) each Loan Party will act solely in its name and through its duly authorized officers, managers, representatives or agents in the conduct of its businesses, and conduct in all material respects its business solely in its own name, in a manner not misleading to other Persons as to its identity (including, without limiting the generality of the foregoing, all oral and written communications (if any), including invoices, purchase orders, and contracts), (c) each Loan Party will comply in all material respects with the terms of its Organic Documents, and (d) each Obligor will, and will cause each of its Subsidiaries to, comply with the Separateness Provisions.

SECTION 7.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Management</u>. Each Loan Party shall deposit, or cause to be deposited, as soon as reasonably practicable following the receipt thereof, all of such Loan Party's Revenues into the Revenue Account, or such other Account as the terms of the Depositary Agreement shall require. Following the Conversion Date, the Borrowers shall cause such disbursement, to the extent applicable.

SECTION 7.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounts</u>. Each applicable Borrower will (a) maintain the DSR Account, the Revenue Account, Major Maintenance Reserve Account and the other Accounts described in the Depositary Agreement with the Depositary Bank in accordance with the terms of the Security Documents and the Depositary Agreement, and (b) will fund the DSR Account, the Punch List Reserve, the Major Maintenance Reserve Account and such other applicable Accounts in accordance with the terms of the Loan Documents.

SECTION 7.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Secured Interest Rate Hedge Agreements</u>. No later than fifteen (15) days after the date of the second Credit Extension, the Cape Phase 1 Borrower shall enter into (including by way of assignment, transfer, amendment, novation or conversion), and thereafter

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maintain, one or more Secured Interest Rate Hedge Agreement(s) with an aggregate notional amount equal to at least seventy-five percent (75%) (and no more than one hundred and ten percent (110%)) of the aggregate principal amount of Term Loans projected to be outstanding at any time as determined by reference to the then-applicable Borrower Model delivered pursuant to<u>[Section 5.1.7(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>through to the Term Loan Maturity Date. If any voluntary prepayment of the Loans are made pursuant to<u>[Section 3.1.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or any mandatory prepayment of Loans are made as required by<u>[Section 3.1.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) the Cape Phase 1 Borrower shall, as of the date of such prepayment, terminate or partially terminate the Secured Interest Rate Hedge Agreements on a pro rata basis such that the aggregate notional amount of the then existing Secured Interest Rate Hedge Agreement does not exceed one hundred and ten percent (110%) of the aggregate principal amount of Term Loans projected to be outstanding through the Term Loan Maturity Date (as determined by reference to the then-applicable Borrower Model delivered pursuant to <u>Section</u> <u>[5.1.7(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1) after giving effect to such termination or partial termination. Hedging Obligations (other than Excluded Swap Obligations) in respect of the Secured Interest Rate Hedge Agreements shall be secured on a pari passu basis with, and shall rank equal in right and priority of payment with, in each case, the Loans.

SECTION 7.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance of Material Project Documents</u>. Each Loan Party will (a) perform its material obligations under, and observe the material terms and provisions of, each Material Project Document to which it is a party, and (b) maintain each Material Project Document to which it is a party in full force and effect (other than to the extent such Material Project Document is replaced with a Replacement Material Project Document or Additional Project Document entered into pursuant to the provisions of <u>Section 8.10(c)(i)</u> or such Material Project Document expires in accordance with its terms, or such Material Project Document is terminated other than as a result of a Loan Party default) and (c) enforce its material rights under any Material Project Document to which it is a party.

SECTION 7.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Maintenance of EWG Status and Other Energy Regulatory Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Project Company has filed with FERC a Notice of Self-Certification of EWG Status. Upon filing and acceptance by FERC or effectiveness by operation of law of its Notice of Self-Certification of EWG status, each Project Company shall maintain its status as an EWG. (ii) The Applicable Project Company has filed with FERC the Shared Facilities Agreement and shall maintain the effectiveness of the Shared Facilities Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Prior to its first generation, sale, or delivery of electricity, capacity, or ancillary services, including test energy, each Project Company shall file with FERC an application for MBR Authority with a requested effective date on or before each Project Company's first generation, sale, or delivery of electricity, capacity, or ancillary services, including test energy. Upon the effective date of its MBR Authority, each Project Company shall maintain its MBR Authority in full force and effect and shall comply with all applicable FERC requirements and with the Interconnection Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;None of the Borrowers shall (i) become subject to regulation as a "public utility" under Section 201(e) of the FPA, or (ii) become subject to, or not exempt from, federal books and records regulation under PUHCA as a "holding company," as defined in Section 1268(8) of

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PUHCA and 18 C.F.R. § 366.1 of FERC's regulations, other than with respect to being a holding company under PUHCA only with respect to EWGs and Qualifying Facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;None of the Loan Parties shall become subject to regulation as a "public utility", "transmission and distribution utility", an "electric utility", a "retail electric provider", an "electrical corporation" or any other similar utility or provider under applicable Utah law, including Utah Code Ann § 54-2-1 and corresponding Utah administrative rules.

SECTION 7.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Project Documents</u>. After the entry by any Loan Party into any Additional Project Document, the applicable Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Promptly deliver a copy of such Additional Project Document to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;subject to <u>clause (c)</u> below, use commercially reasonable efforts to cause the applicable Material Project Party thereto (other than the Interconnection Counterparty and the Transmission Service Provider) to enter into a Consent to Collateral Assignment in favor of the Collateral Agent (for the benefit of the Secured Parties) within sixty (60) days thereafter; <u>provided</u> that, if the use of such commercially reasonable efforts does not result in the execution and delivery of the applicable Consent to Collateral Assignment within sixty (60) days, the applicable Loan Party may cease to exercise such efforts; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;if such Additional Project Document (i) replaces a Material Project Document for which a Consent to Collateral Assignment was delivered on the date of the second Credit Extension or (ii) includes a restriction on collateral assignment (or similar) provision applicable to the Transactions, the applicable Borrower shall cause the applicable Material Project Party thereto to enter into a Consent to Collateral Assignment in favor of the Collateral Agent (for the benefit of the Secured Parties) within sixty (60) days after the execution of such Additional Project Document;

<u>provided</u> that, in each case of <u>clause (b)</u> and <u>(c)</u> above, any proposed change to the form in <u>Exhibit L</u> in connection with any applicable Additional Project Document within the sixty (60)- day period specified in <u>clauses (b)</u> and <u>(c)</u> shall be subject only to the consent of the Administrative Agent.

SECTION 7.17&nbsp;&nbsp;&nbsp;&nbsp;<u>As Built Survey</u>. Within sixty (60) days following the Conversion Date, the Borrowers shall deliver to the Administrative Agent and the Collateral Agent updated "as built" surveys of each Surface Property with a survey certification in form reasonably satisfactory to the Administrative Agent, that are reasonably current and certified to the Collateral Agent and the Title Company by the surveyor.

SECTION 7.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance Tests</u>. (a) The Administrative Agent shall have the right to witness the Performance Tests and (b) the Independent Engineer shall (i) subject to <u>Section</u> <u>7.18(b)(ii)</u>, have the right to witness the Performance Tests and (ii) witness the Performance Tests set forth in paragraph 1 of <u>Schedule IX</u>. Each Borrower shall use commercially reasonable efforts to give the Administrative Agent and the Independent Engineer written notice of each proposed Performance Test no less than ten (10) Business Days prior to the planned date of any such test, including reasonably detailed information on the procedures to be used in the conduct

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of such test. The failure of the Administrative Agent or the Independent Engineer to attend any Performance Test shall not affect the validity of such Performance Test. If, upon completion of any Performance Test, the applicable Borrower has decided to use such Performance Test as the basis for declaring Substantial Completion, such Borrower shall so notify the Administrative Agent and the Independent Engineer and shall deliver a copy of all test results supporting the results of such Performance Test, accompanied by supporting data and calculations.

SECTION 7.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Taxes</u>. File, or cause any Loan Party to file, all income and other material Tax returns required to be filed by it no later than the relevant due date. Pay or cause to be paid, as and when due and prior to delinquency, all material Taxes lawfully assessed or levied against or with respect to such Loan Party or the Project (or portion thereof) other than Taxes being contested in good faith by appropriate proceedings, including appeals, so long as adequate cash reserves reasonably in accordance with GAAP have been established.

SECTION 7.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Subordination Agreements</u>. Within thirty (30) days of the execution of any Real Property Document that was not in place on the date of the second Credit Extension, to the extent such Real Property Document relates to real property owned or leased by any Loan Party and/or over which any Loan Party holds an easement estate, the Administrative Agent shall have received a duly executed and recorded copy of a subordination agreement in favor of the Collateral Agent from the applicable Material Project Party in form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent (it being understood that any subordination agreement that is substantially in the form of a subordination agreement from a Material Project Party delivered by the Borrowers as of the date of the second Credit Extension is reasonably satisfactory to the Administrative Agent and the Collateral Agent), if any title report in respect of the applicable real property indicates that there are Liens (other than Permitted Liens) over such real property.

SECTION 7.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Green Loan Principles</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Management of Proceeds.</u> The Borrowers shall establish and maintain an internal register to track the management of proceeds of the Loans and Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Reporting</u>. The Borrowers shall use commercially reasonable efforts to provide annually to the Administrative Agent a report (the "<u>Green Loan Report</u>") detailing the actual and/or expected environmental impact of the Project in qualitative and/or quantitative terms. Such reporting shall be made substantially in the form attached as <u>Exhibit F</u> within 120 days after the end of each fiscal year prior to the Termination Date.

Notwithstanding anything to the contrary herein or in any other Loan Document, failure by a Borrower to comply with <u>Section 6.32</u> or this <u>Section 7.21</u> or any representation or covenant in the Loan Documents (however described) in respect of the Green Loan Principles (including any Green Loan Report) shall not (x) constitute a Default, Event of Default, breach, misrepresentation or default (however described) under this Agreement or any other Loan Document or (y) give rise to any liability or monetary obligation on the part of any Obligor or any of their respective Affiliates. The only consequence of any such failure is cessation of the Loans' designations as aligned with Green Loan Principles, and thereafter the Borrowers shall cease referring to the Loans as "green loans" in external communications.

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SECTION 7.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Post-Closing Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;On or prior to the date that is thirty (30) days after the Closing Date, the Borrowers shall deliver to the Administrative Agent duly executed copies of each of (a) the Service Agreement for the Resale, Assignment or Transfer of Point-To-Point Transmission Service, entered into by and among the O&M Provider, The City of Los Angeles by and through the Department of Water and Power, and Cape Generating Station 5 LLC and (b) the Service Agreement for the Resale, Assignment or Transfer of Point-To-Point Transmission Service, entered into by and among the O&M Provider, The City of Los Angeles by and through the Department of Water and Power, and Cape Generating Station 3 LLC, each in form and substance reasonably satisfactory to the Administrative Agent (acting at the direction of the Required Lenders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Borrowers shall cause the date of the second Credit Extension to occur on or prior to the day that is forty-five (45) days after the Closing Date (the "<u>Second Credit Extension</u> <u>Deadline</u>"); <u>provided</u> that if any appeal period in respect of the Water Appropriation Permit is extended to the date that is seventy (71) days after the date the Water Appropriation Permit was issued, the Second Credit Extension Deadline shall be automatically extended to the date that is seventy-six(76) days after the Closing Date.

SECTION 7.23&nbsp;&nbsp;&nbsp;&nbsp;<u>Water Leases</u>. In the event that the Water Appropriation Permit shall have become subject to any Water Appropriation Permit Appeal, then (a) the Borrowers shall cause and direct the applicable Material Project Parties and applicable Loan Parties to diligently contest such Water Appropriation Permit Appeal in good faith by appropriate proceedings and (b) the Borrowers shall use best efforts to obtain, or direct the applicable Loan Parties to obtain, (i) amendments to existing water right leases (or an acquisition of new water right leases or purchased water rights) in an amount sufficient to supply the water required for the full operation of the Project, in each case with termination dates no earlier than the conclusion of the full amortization period set forth in the Borrower Model and that authorize the filing of permanent change applications on the leased water for geothermal use at the Project, in form and substance reasonably acceptable to all Lenders, and (ii) an approval by the Utah State Engineer of a permanent change application with respect to such water rights to permanently change the use of such water rights to geothermal use by the Project, in form and substance reasonably satisfactory to all Lenders, for which all administrative and judicial appeal periods have expired with no administrative or judicial appeal, intervention, or similar proceeding having been filed or pending.

**ARTICLE VIII**

**<u>NEGATIVE COVENANTS</u>**

Each Borrower covenants and agrees with each Lender, each LC Issuer and the Administrative Agent that, until the Termination Date has occurred, such Person will perform or cause to be performed the obligations set forth below; <u>provided</u> that the covenants set forth in this <u>Article VIII</u> as they relate to the Cape Phase I Pledgor or the Project Companies (including the Capital Securities in the Project Companies) or the Loan Documents to which the Cape Phase

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I Pledgor or a Project Company is a party shall not take effect until the date of the second Credit Extension.

SECTION 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Business Activities</u>. (a) No Project Company shall engage in any business activity except the Development of the Project, (b) the Cape Phase I Pledgor shall not engage in any business activities except (i) holding the Capital Securities in Cape Phase 1 Borrower, and (ii) performing its obligations under the Transaction Documents to which it is party, (c) the WellCo Pledgor shall not engage in any business activities except (i) holding the Capital Securities in WellCo Borrower and (ii) performing its obligations under the Loan Documents to which it is party, (d) Cape Phase 1 Borrower shall not engage in any business activities except (i) holding the Capital Securities in each Project Company and (ii) performing its obligations under each applicable Transaction Document, (e) the WellCo Borrower shall not engage in any business activity except performing its obligations under each applicable Transaction Document, and in each case of <u>clauses (a)</u> through <u>(e)</u>, activities reasonably incidental and related thereto (including the performance of its obligations under the Transaction Documents). Other than WellCo Borrower, no Loan Party that is not a corporation for U.S. federal, state or local income tax purposes as of the Closing Date will change its status to be treated as a corporation for U.S. federal, state or local income tax purposes, whether by election or otherwise.

SECTION 8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Indebtedness</u>. No Loan Party will create, incur, assume or permit to exist any Indebtedness, other than the following (such Indebtedness, "<u>Permitted Indebtedness</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;prior to the second Credit Extension, Indebtedness in respect of the XRC Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness in respect of the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness existing as of the Closing Date which is identified in <u>Item[8.2(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of the Disclosure Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness of any Loan Party (i) evidencing the deferred purchase price of newly acquired property or services or incurred to finance the acquisition of, repair, or improvement of equipment (including pursuant to purchase money mortgages, whether owed to the seller or a third party) used in the ordinary course of business of such Loan Party (<u>provided</u> that such Indebtedness is incurred within ninety (90) days following the acquisition of such equipment or property) and (ii) in respect of capitalized lease liabilities; <u>provided</u> that the aggregate amount of all Indebtedness outstanding pursuant to this clause shall not at any time exceed $2,500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Hedging Obligations of any Loan Party permitted pursuant to<u>[Section 8.17](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;trade or other similar indebtedness of any Loan Party incurred in the ordinary

course of business (but not for borrowed money) and (i) not more than ninety (90) days past due, or (ii) being contested in good faith and by appropriate proceedings; <u>provided</u> that the aggregate amount of all Indebtedness outstanding pursuant to this clause shall not at any time exceed $1,000,000;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness of any Loan Party in respect of performance bonds, bid bonds, appeal bonds, surety bonds, indemnification obligations, financial assurances, warehouse receipts and completion guarantees and similar obligations in each case provided in the ordinary course of business and not in connection with Indebtedness for borrowed money, including those incurred to support obligations under (A) workers' compensation, unemployment insurance, health, disability and other employee benefits and other social security laws, including in respect of casualty or liability insurance or self-insurance, or other Indebtedness with respect to reimbursement type obligations (other than obligations in respect of letters of credit) regarding workers compensation claims and (B) safety, reclamation and environmental obligations in the ordinary course of business and not in connection with Indebtedness for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;To the extent constituting Indebtedness, contingent obligations (i) under or in respect of obligations to pay insurance premiums incurred in the ordinary course of business and not serviced with Indebtedness for borrowed money; (ii) resulting from the endorsement of negotiable instruments received in the ordinary course of its business and (iii) resulting from indemnities provided under the Loan Documents and Project Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;To the extent constituting Indebtedness, obligations under (i) the Material Project Documents, and (ii) other contractual obligations in effect on or as of the Closing Date or entered into in the ordinary course of business including the Additional Drilling Contracts, in each case that are not Indebtedness for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness of any Loan Party provided by another Loan Party; <u>provided</u> that such Indebtedness is pledged to the Collateral Agent pursuant to the Security Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;Indebtedness, other than Indebtedness described in <u>clauses (a)</u> through <u>(j)</u> above, in an aggregate outstanding principal amount not to exceed $1,000,000 at any time outstanding.

SECTION 8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Liens</u>. No Loan Party will create, incur, assume or permit to exist any Lien upon any of its property (including Capital Securities of any Person), revenues or assets, whether now owned or hereafter acquired, except the following (each, a "<u>Permitted Lien</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Liens securing payment of the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Liens on the property or assets of any of the Loan Parties existing as of the Closing Date and disclosed in <u>Item[8.3(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of the Disclosure Schedule securing Permitted Indebtedness described in<u>[Section 8.2(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) <u>provided</u> that, (i) no such Lien shall encumber any additional property (other than (A) property encumbered on the Closing Date, (B) after-acquired property that is affixed or incorporated into the property encumbered by such Lien on the Closing Date and (C) proceeds and products thereof), and (ii) the amount of Indebtedness secured by such Lien is not increased from that existing on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Liens of any Loan Party securing Permitted Indebtedness under <u>Section 8.2(d)</u>; <u>provided</u> that (i) such Lien is granted within ninety (90) days after such Indebtedness is incurred, and (ii) such Lien secures only the assets that are the subject of the Indebtedness referred to in such clause or the products or proceeds thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Liens of any Loan Party in favor of carriers, warehousemen, mechanics, suppliers, processors, storage, materialmen, repairmen and landlords and other like Liens imposed by Applicable Laws, in each case granted or arising in the ordinary course of business securing obligations with respect to the Project for amounts not yet due and payable or being contested in good faith by appropriate proceedings; <u>provided</u> that (i) such proceedings shall not involve any substantial danger of the sale, forfeiture, or loss of any material part of the Project, title thereto, or any interest therein and shall not interfere in any material respect with the use or disposition of the Project, and (ii) a bond or other security acceptable to the Administrative Agent (acting at the direction of the Required Lenders), in its reasonable discretion, has been posted or provided in such a manner and amount as to assure the Administrative Agent that any amounts determined to be due will be promptly paid in full if such contest is determined against the Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens of any Loan Party incurred or deposits made in the ordinary course of business in connection with worker's compensation, unemployment insurance, social security, old age pension, public liability obligations or other forms of governmental insurance or benefits, or to secure performance of tender and return of money bonds, statutory obligations, bids, security and appeal bonds, leases, letters of intent, purchase orders, trade contracts or similar obligations (other than for borrowed money) entered into in the ordinary course of business, and (ii) Liens granted to a depository, brokerage or intermediary bank, financial institution or commodities intermediary and/or clearinghouse in connection with deposit accounts, securities accounts or commodities accounts, and other intermediary, brokerage, clearinghouse, and other similar arrangements, in each case, consistent with the general parameters customary to the banking, financial institution and/or commodities trading industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;easements, rights-of-way, restrictions (including zoning restrictions and other restrictions and regulations of governmental authorities), servitudes, licenses, surface use agreements, permits, conditions, covenants, exceptions, reservations, trackage rights, shortages in area, minor defects or irregularities in title, restrictions on use of real property, zoning and land use requirements for the purpose of roads, railways, pipelines, transmission lines, transportation lines, telephone lines, power lines, distribution lines and other like purposes or for the joint or common use of real estate, rights of way, facilities and equipment, and other similar encumbrances or Liens that, in the aggregate, do not have a Material Adverse Effect on value or use of the property (as used by any Loan Party in its operations or business) to which such Lien is attached;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;all matters disclosed in the Title Policies (or final pro forma policies as determined by the Administrative Agent (acting at the direction of the Required Lenders), in its reasonable discretion) delivered on or prior to the date of the second Credit Extension insuring any Mortgage (or as disclosed in any survey received by the Administrative Agent prior to the date of the second Credit Extension);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;Liens for Taxes, assessments or other governmental charges or levies not at the time delinquent or being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;any interest or title of a lessor, sublessor, licensor or grantor in leases, subleases, licenses or easements entered into by any Loan Party or any leases, subleases, licenses,

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sublicenses or easements granted to third parties, and any encumbrances encumbering such titles and interests in such property, that, in the aggregate, do not have a Material Adverse Effect on the value or use of the real property (as used by any Loan Party in its operations or business), in each case whether or not evidenced by UCC financing statement filings or other documents of record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;landlord Liens arising under any lease contracts entered into by any Loan Party or any leases, subleases, licenses and sublicenses granted to third parties in the ordinary course of business, in each case, for amounts not yet due or being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;Liens on the Collateral securing Hedging Obligations (other than Excluded Swap Obligations) in respect of Secured Interest Rate Hedge Agreements so long as such Hedging Obligations are secured on a *pari passu* basis with the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;Liens of any Loan Party that are contractual rights of set-off (i) relating to the establishment of depository relations with banks not given in connection with the issuance of Indebtedness or (ii) relating to purchase orders and other agreements entered into with customers of such Loan Party in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;Liens arising solely by virtue of any statutory or common law provision relating to banker's liens, rights of set-off or similar rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;licenses or sublicenses of intellectual property granted by any Loan Party in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;to the extent arising from Permitted Indebtedness permitted under clause (i) of <u>[Section 8.2(h)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) Liens on insurance proceeds, rights or claims against an insurer or advanced payments made in respect of insurance premiums;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens required to be created under, or created pursuant to, the Project Documents (so long as the execution of such Project Documents did not violate the terms of this Agreement), any Permit, and Organic Documents in existence as of the date hereof or as amended in accordance herewith, in each case so long as such Liens do not constitute security interests supporting obligations comprising Indebtedness for borrowed money, and (ii) Liens existing solely by virtue of any Loan Party's ownership of the Capital Securities of another Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;Liens arising out of judgments or awards so long as an appeal or proceeding for review is being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside in its books or are fully covered by insurance; <u>provided</u> that any such judgement or award does not otherwise constitute an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;Liens approved by the Required Lenders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;Liens arising out of any conditional sale, title retention, consignment or other similar arrangements for the sale of goods entered into by any Loan Party in the ordinary course of business to the extent such Liens do not attach to any assets other than the goods subject to such arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;other Liens in an amount not to exceed $2,500,000 at any one time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;extensions, renewals and replacements of any of the foregoing Liens to the extent

and for so long as the obligations secured thereby remain outstanding.

SECTION 8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Investments</u>. No Loan Party will purchase, make, incur, assume or permit to exist any Investment in any other Person, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Investments existing as of the Closing Date and identified in <u>Item[8.4(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of the Disclosure Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Ownership by a Loan Party of Capital Securities of another Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Cash Equivalent Investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, or judgments against, customers and suppliers, in each case in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments permitted as Permitted Indebtedness pursuant to<u>[Section 8.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) and

(ii) Restricted Payments pursuant to<u>[Section 8.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Investments consisting of the deferred portion of the sales price received by any Loan Party or otherwise arising out of the receipt of non-cash consideration in connection with any Disposition permitted under <u>Section 8.9</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Investments by a Loan Party in Hedge Agreements permitted under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Investments resulting from pledges and deposits referred to in<u>[Section 8.3(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

SECTION 8.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Payments, etc</u>. No Loan Party will declare or make a Restricted Payment, or make any deposit for any Restricted Payment, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;if no Default or Event of Default shall have occurred and be continuing or would result from such Restricted Payment and as permitted pursuant to Sections 3.02(b)(xi) and 3.02(c)(xi) of the Depositary Agreement, a Permitted Tax Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;on the Initial Borrowing Date, a one-time Restricted Payment to the Sponsor in an amount equal to (i) the aggregate amount of Total Project Costs for the Project paid by the Sponsor prior to such date (as verified by the Independent Engineer to the reasonable satisfaction of the Administrative Agent) *minus* (ii) the Minimum Equity Requirement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;on the Conversion Date, a one-time Restricted Payment pursuant to Sections 3.01(d)(ii)(F) and 3.01(b)(ii)(H) of the Depositary Agreement to the Sponsor in an amount equal to (i) the aggregate amount of Total Project Costs for the Project paid by the Sponsor prior to such date (as verified by the Independent Engineer to the reasonable satisfaction of the Administrative Agent) *minus* (ii) the Minimum Equity Requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;after the Conversion Date and repayment of the TRABL Loans in full, a Restricted Payment from available Cash on deposit in the Distribution Suspense Account, to the extent that the following conditions have been satisfied as of the date of such Restricted Payment (as certified by an Authorized Officer of the Borrowers in a Distribution Suspense Account Transfer Certificate (as defined in the Depositary Agreement) delivered to the Administrative Agent and the Depositary Bank in accordance with Section 3.07(b)(ii) of the Depositary 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;(i)&nbsp;&nbsp;&nbsp;&nbsp;no Default or Event of Default shall have occurred and be continuing or would result from such Restricted 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the DSR Account shall be fully funded through Cash, the DSR Letter of Credit or any other Sponsor LC, at the Borrowers' sole discretion, in an amount at least equal to the then-applicable DSR Requirement;

&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)&nbsp;&nbsp;&nbsp;&nbsp;(A) to the extent required, the Major Maintenance Reserve Account shall be fully funded in Cash or through one or more Sponsor LCs, at the Borrowers' sole discretion, in an amount at least equal to the then-applicable Required Major Maintenance Reserve Amount, (B) the Punch List Reserve shall have been fully funded in an amount at least equal to the Punch List Reserve Required Amount, and (C) to the extent required, the Audit Tail Insurance Reserve Account shall be fully funded in an amount at least equal to the Required Audit Tail Insurance Reserve Amount;

&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)&nbsp;&nbsp;&nbsp;&nbsp;no Material Construction Contract LC Loans, Shell PPA LC Loans, SCE PPA LC Loans, DSR LC Loans or Reimbursement Obligations are then outstanding; 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;(v)&nbsp;&nbsp;&nbsp;&nbsp;the Debt Service Coverage Ratio for the most recently ended Measurement Period immediately preceding the applicable Quarterly Payment Date is no less than 1.25:1.00 (as demonstrated by the calculations thereof set out in such certificate).

SECTION 8.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Capital Expenditures</u>. The Loan Parties shall not make or commit to make Capital Expenditures other than (a) Total Project Costs in respect of the Project in accordance with the Construction Budget, (b) Capital Expenditures set forth in the Operating Budget, (c) Capital Expenditures required to comply with Applicable Law, (d) Capital Expenditures with respect to the restoration or repair of worn or faulty property in the ordinary course of business (and in accordance with Prudent Industry Practices) with respect to the Project, (e) any Capital Expenditure necessary to prevent or mitigate an emergency situation, (f) Capital Expenditure required in connection with the Drilling and Completions Plan, (g) Maintenance and Drilling Expenses, and (h) other Capital Expenditures of the Loan Parties not

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in excess of one hundred ten percent (110%) in the aggregate of the costs set forth in the Operating Budget for Capital Expenditures in any Fiscal Year.

SECTION 8.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Issuance of Capital Securities</u>. No Loan Party will issue any Capital Securities (whether for value or otherwise) to any Person, except that (a) a Pledgor may make additional contributions to the capital of the applicable Borrower and (b) any Loan Party may issue Capital Securities to any other Loan Party.

SECTION 8.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Consolidation, Merger; etc.</u> No Loan Party will (a)(i) liquidate, wind-up or dissolve, (ii) sell, lease or otherwise transfer or dispose of all or substantially all of its property, assets or business, (iii) combine, consolidate with, or merge into or with, any other Person, (b) change its legal form, or (c) purchase or otherwise acquire any substantial part of the assets of any Person (or any division thereof).

SECTION 8.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Permitted Dispositions</u>. No Loan Party will Dispose of any of such Person's assets (including accounts receivable and Capital Securities of Subsidiaries) to any Person in one transaction or a series of transactions unless such Disposition is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;of inventory (including all sales of tax credits, energy, capacity products and any ancillary services), obsolete, damaged, worn out or surplus (including non-productive or non-core) assets produced or Disposed of in the ordinary course of business (including any interest in any construction laydown or access area that is no longer necessary for the construction or operation of the Project) or any Disposal of any facilities typically co-used or co-possessed in shared facilities arrangements (or interests therein) specifically contemplated by the Shared Facilities Agreement as of the Closing Date, subject to any required approvals from Governmental Authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;[Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) in respect of Investments permitted by<u>[Section 8.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) (ii) Liens permitted by <u>[Section 8.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(to the extent that the granting of any such Lien would constitute a Disposition); or (iii) Restricted Payments permitted by<u>[Section 8.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the issuance of Capital Securities permitted by<u>[Section 8.7](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;constitutes the liquidation of Permitted Investments (as defined in the Depositary Agreement) for cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;to the extent constituting a Disposition, the termination, liquidation or unwinding of any Hedge Agreement; <u>provided</u> that the Borrowers are in compliance with<u>[Section 7.13](#i918c83e63c6d41b4b3424c701423fa52_1)</u>after giving effect to such Disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;the sale of ITCs to an ITC Transferee pursuant to an ITC Transfer or the sale of PTCs to a PTC Transferee pursuant to a PTC Transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;to the extent constituting a Disposition, the unwinding of any Hedge Agreement; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the lease, as lessor or sublessor, or license (other than any long-term exclusive license), as licensor or sublicensor, of real or personal property or the non-exclusive license of intellectual property in the ordinary course of business and not interfering in any materially adverse respect with the ordinary conduct of, or having a material adverse impact on, the business or operations of, any Loan Party or its rights and obligations under the Material Project Documents.

SECTION 8.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Modification of Certain Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party will consent to any amendment, supplement, waiver or other modification of its Organic Documents if as a result thereof there could reasonably be expected to be an adverse effect on the rights or remedies of any Credit Party, whether individually or in the aggregate with other amendments to one or more Organic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party shall, without the prior written consent of the Required Lenders (in consultation with the Independent Engineer), enter into any change order arising pursuant to any Material Construction Contract or Material Equipment Supply Contract; <u>provided</u> that the Loan Parties may, without the consent of the Required Lenders, enter into any change order under any Material Construction Contract or any Material Equipment Supply Contract, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;such change order will result in an increase to the aggregate amount payable under any such Material Construction Contract or Material Equipment Supply Contract below $500,000 individually, or together with all prior change orders made or claims paid in respect of such Material Construction Contract or Material Equipment Supply Contract, below $1,500,000 in the aggregate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;such change order (A) would not reasonably be expected to delay the occurrence of the Conversion Date beyond the Term Conversion Deadline, (B) does not consent to the assignment of any Material Construction Contract or Material Equipment Supply Contract (excluding subcontracts thereof), (C) does not change in any material respect any minimum performance guarantee or other guarantee levels (including schedule guarantees), (D) does not change in any material respect any warranties, liquidated damages or any limits on any of the foregoing, (E) does not amend the definition of event of default, (F) does not amend any requirements of Substantial Completion, testing or commissioning or similar definitions in any material respect and (G) does not change in any material and adverse respect the design, specifications, scope or nature of the Project (unless such change has been prepared in consultation with, and certified by, the Independent Engineer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In no event shall any Loan Party take any action or agree to take any action with respect to any Material Project Document without the prior written consent of the Required Lenders (such consent not to be unreasonably withheld, conditioned or delayed) the effect of which would be 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)&nbsp;&nbsp;&nbsp;&nbsp;(A) materially amend, amend and restate, or modify, or replace, suspend or cancel or (B) consent to or accept any material amendment, amendment and restatement, or modification, or replacement, suspension or cancellation of any Material Project Document to which it is a party, (except to the extent, solely in the case of

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replacement, suspension or cancellation a Material Project Document, such Material Project Document is replaced with a Replacement Material Project Document within 60 days thereafter, or (C) such Material Project Document is replaced with an Additional Project Document in accordance with <u>clause[(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of this<u>[Section 8.10](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1);

&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)&nbsp;&nbsp;&nbsp;&nbsp;except as contemplated or permitted in accordance with the terms thereof, permit or suffer to occur any assignment of any Material Project Document (excluding subcontracts thereof) by the applicable Material Project Party; 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)&nbsp;&nbsp;&nbsp;&nbsp;waive any material default under, or material breach of, any Material Project Document to which it is a party or waive, fail to enforce, forgive, compromise, settle, adjust or release any material right, interest or entitlement, howsoever arising, under, or in respect of, any such Material Project Document or in any way vary, or consent or agree to the variation of, any material provision of such Material Project Document or of the performance of any material covenant or obligation by any other Person thereunder;

<u>provided</u> that any amendment to or modification of any Material Construction Contract or Material Equipment Supply Contract is permitted so long as it complies with the requirements set forth in<u>[Section 8.10(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Other than upon any expiration or termination of a Material Project Document in accordance with its terms, or replacement of such Material Project Document in accordance with <u>[Section 8.10(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or with a Replacement Material Project Document, no Loan Party shall consent to the full or partial termination (or effective termination resulting from an assignment of any Loan Party's rights) of any Material Project Document without the written consent of the Required Lenders (such consent not to be unreasonably withheld, conditioned or delayed); <u>provided</u> that a breach of this<u>[Section 8.10(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall only be an Event of Default as set forth in <u>Section[9.1.11(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party will enter into, become a party to or become liable under any Additional Project Document after the Closing Date without the consent of the Required Lenders (such consent not to be unreasonably withheld, conditioned or delayed). The Borrowers shall (i) deliver a copy of such Additional Project Document to the Collateral Agent and the Administrative Agent in accordance with<u>[Section 7.16(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) (ii) deliver to the Collateral Agent and Administrative Agent a Consent to Collateral Assignment with respect to such Additional Project Document in accordance with<u>[Section 7.16](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) and (iii) certify that such Additional Project Document is consistent with the then current Construction Budget or Operating Budget (as applicable) provided pursuant to<u>[Section 7.1(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and could not reasonably be expected to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything contained to the contrary in this Agreement, the Loan Parties shall have the right, without the prior written consent of the Administrative Agent or the Lenders, to (i) cause a Project Company to grant or exercise options, enter into (and/or grant rights with respect to its interests under any) leases, subleases or other interests in conformity with the terms of the Material Project Documents, where applicable, so long as any such action (x) to the extent constituting a Lien or a Disposition, would constitute a Permitted Lien permitted

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under<u>[Section 8.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or a Disposition permitted under<u>[Section 8.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) as applicable, (y) does not result in a Material Adverse Effect to the construction and operation of the Project, and (z) with respect to the Mortgaged Properties, does not materially affect or diminish the rights and benefits granted to the Collateral Agent in respect of such Mortgaged Properties and (ii) enter into Additional Drilling Contracts to the extent required by the latest P90 Production Forecast delivered pursuant to<u>[Section 7.1(ee)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or<u>[Section 7.1(ff)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The Loan Parties shall not permit any Material Project Party to substitute, diminish or otherwise replace any performance security, letter of credit or guarantee supporting such Material Project Party's obligations thereunder, except to the extent that such Material Project Party is permitted to do so without the consent of the Borrowers under the terms of such Material Project Document or such substitution, diminishment or replacement is in accordance with the terms of such Material Project Document or an amendment thereof permitted by or otherwise executed in accordance with the terms of this Agreement.

SECTION 8.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Transactions with Affiliates</u>. Other than as set forth in <u>Item 8.11</u> of the Disclosure Schedules, no Loan Party will, directly or indirectly, enter into or cause or permit to exist any arrangement, transaction or contract (including for the purchase, lease or exchange of property or the rendering of services) with any of its other Affiliates, unless such arrangement, transaction or contract is on fair and reasonable terms no less favorable to such Loan Party, taken as a whole, than it could obtain in an arm's-length transaction with a Person that is not an Affiliate.

SECTION 8.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictive Agreements, etc.</u> No Loan Party will enter into any agreement prohibiting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the ability of any Loan Party to amend or otherwise modify any Loan Document pursuant to the terms of such Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the creation or assumption of any Lien in favor of any of the Secured Parties upon its properties, revenues or assets, whether now owned or hereafter acquired except, in the case of this <u>clause[(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) restrictions existing by reason 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)&nbsp;&nbsp;&nbsp;&nbsp;restrictions imposed by Applicable Law;

&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)&nbsp;&nbsp;&nbsp;&nbsp;contractual encumbrances or restrictions in effect on the Closing Date and described in <u>Item 8.12(b)</u> of the Disclosure Schedule so long as such encumbrance or restriction has not been expanded from the encumbrance or restriction contained in the agreements described in <u>Item 8.12(b)</u> of the Disclosure Schedule as of the Closing 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;contractual encumbrances or restrictions in the ITC Transfer Agreement and the PTC Transfer 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;(iv)&nbsp;&nbsp;&nbsp;&nbsp;any restrictions imposed by any agreement relating to secured Indebtedness permitted by this Agreement;

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&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)&nbsp;&nbsp;&nbsp;&nbsp;customary provisions contained in leases or licenses of intellectual property and other similar agreements entered into by a Borrower in the ordinary course of business;

&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)&nbsp;&nbsp;&nbsp;&nbsp;customary restrictions and conditions contained in any agreement of a Borrower relating to the sale of any asset permitted under<u>[Section 8.9](#i918c83e63c6d41b4b3424c701423fa52_1)</u>pending the consummation of such sale;

&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)&nbsp;&nbsp;&nbsp;&nbsp;restrictions imposed by any Hedge Agreement so long as such restrictions are no more restrictive than the provisions of, and otherwise permitted by,<u>[Section 8.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u> and, for the avoidance of doubt, permit Liens securing the Obligations on the terms of the Loan Documents; 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;(viii)&nbsp;&nbsp;&nbsp;&nbsp;customary restrictions and conditions contained in the documents relating to any Lien, so long as (A) such Lien is permitted under<u>[Section 8.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and such restrictions or conditions relate only to the specific asset subject to such Lien and (B) such restrictions and conditions are not created for the purpose of avoiding the restrictions imposed by this<u>[Section 8.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

The foregoing prohibitions shall not apply to restrictions contained in any Loan Document or any Material Project Document in effect as of the Closing Date or thereafter entered into in accordance with this Agreement.

SECTION 8.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounting Changes; Name and Location; Fiscal Year</u>. No Loan Party will make any change to its name, its limited liability or corporate structure, its jurisdiction of organization, Fiscal Year or its accounting policies or reporting policies, except as required by GAAP or Applicable Law.

SECTION 8.14&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

SECTION 8.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsidiaries</u>. Except for the transfer of the membership interests of each of the Project Companies to the Cape Phase 1 Borrower as of the date of the second Credit Extension, no Loan Party will create any Subsidiary or cause, in any manner, any Person to become its Subsidiary other than those Subsidiaries held by such Loan Party on the Closing Date.

SECTION 8.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Partnerships, etc.</u> No Loan Party will become a partner in any general or limited partnership or joint venture.

SECTION 8.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Speculative Transactions</u>. Except as provided in <u>Section[7.13](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) or otherwise approved as an Additional Project Document pursuant to<u>[Section 8.10(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) no Loan Party will engage in any swap, swaption, cap, collar, floor, option, future, hedge or similar derivative transaction (or any combination of the foregoing), including power purchase agreements and Interest Rate Hedge Agreements, without the prior written consent of the Required Lenders, which consent shall not be unreasonably withheld, conditioned or delayed, except in the ordinary course of business and not for speculative purposes.

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SECTION 8.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounts; Depositary Agreement</u>. The Loan Parties will not establish or maintain any Deposit Account or Securities Account, other than (a) the accounts established or permitted pursuant to the Depositary Agreement and (b) one or more LC Cash Collateral Accounts.

SECTION 8.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Sales and Lease-Backs</u>. No Loan Party will, directly or indirectly, become or remain liable as lessee or as a guarantor or other surety with respect to any lease, whether an operating lease or capitalized lease liabilities, of any property (whether real, personal or mixed), whether now owned or hereafter acquired (a) which such Loan Party has sold or transferred or is to sell or transfer to any other Person (other than another Loan Party) or (b) which such Loan Party intends to use for substantially the same purpose as any other property which has been or is to be sold or transferred by such Loan Party to any Person (other than another Loan Party).

SECTION 8.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictions on Subsidiary Distributions</u>. Except as provided herein, no Loan Party will create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Person to (a) pay dividends or make any other distributions on any of such Person's Capital Securities owned by any Loan Party, (b) repay or prepay any Indebtedness owed by any Loan Party to another Loan Party or by a Borrower under the Loan Documents, (c) make loans or advances to any other Loan Party, or (d) transfer any of its property or assets to any other Loan Party other than restrictions (i) in agreements evidencing Permitted Indebtedness permitted by<u>[Section 8.2(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>that impose restrictions on the property so acquired, and (ii) by reason of customary provisions restricting assignments, subletting or other similar transfers contained in any agreements entered into in the ordinary course of business and otherwise permitted under this Agreement.

SECTION 8.21&nbsp;&nbsp;&nbsp;&nbsp;<u>Sanctions; Anti-Corruption; Use of Proceeds</u>. Each Loan Party will not request any Loan or Letter of Credit, and each Loan Party shall not use, and shall procure that its directors, officers, general partners, managers, managing members, employees and agents shall not use, directly or indirectly, any part of the proceeds of any Loan or Letter of Credit hereunder, or lend, contribute, or otherwise make available such proceeds to any Affiliate, joint venture partner, or other Person, (a) in furtherance of any action, payment or giving of money or anything else of value to any Person, or for any other purpose that would be, in violation of applicable Anti-Corruption Laws; (b) to fund, finance, or facilitate any activities, business, or transaction of or with any Sanctioned Person or in any Sanctioned Jurisdiction in either case, in violation of applicable Sanctions, or (c) in any other manner that would constitute or give rise to a violation of applicable Sanctions, Anti-Corruption Laws, or Anti-Money Laundering Laws by any Person (including any Secured Party).

SECTION 8.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Construction Budget; Construction Schedule</u>. The Loan Parties shall not materially amend the Construction Budget or the Construction Schedule without the prior consent of the Administrative Agent (in consultation with the Independent Engineer, and such consent not to be unreasonably withheld, conditioned or delayed); <u>provided</u> that the Loan Parties may, without the prior written consent of the Administrative Agent (acting at the direction of the Required Lenders):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;amend, revise or modify a Construction Budget such that after giving effect to such amendment the aggregate costs set forth in such amended Construction Budget would not be greater than one hundred and ten percent (110%) of the aggregate costs set forth in the original Construction Budget and so long as such increased costs are covered by an equity contribution from the Sponsor or another Affiliate of a Pledgor or by a contingency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;amend, revise or modify a Construction Budget to reallocate the "contingency" line item specified in such Construction Budget to any other budget categories;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;reallocate any savings or apply any revenues earned prior to the Conversion Date, to the extent confirmed by the Independent Engineer, in any line item specified in a Construction Budget to any other line item in such Construction Budget; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;amend, revise or modify a Construction Budget so long as such amendment, revision or modification (i) is required in connection with any actions in respect of any Project Document permitted pursuant to<u>[Section 8.10](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) without the consent of the Required Lenders or other Secured Parties, as applicable, (ii) is required in connection with any Replacement Material Project Document or Additional Project Document entered into in accordance with<u>[Section 8.10](#i918c83e63c6d41b4b3424c701423fa52_1)</u> without the consent of the Required Lenders or other Secured Parties, as applicable, or (iii) reflects expenditure that will be fully funded with equity contributions from the Sponsor or any of its Affiliates;

in each case of the foregoing <u>clauses[(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>through<u>[(d)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) so long as such change would not materially and adversely affect the ability of the Loan Parties to achieve Substantial Completion by the Term Conversion Deadline.

Each Borrower shall promptly deliver to Administrative Agent a copy of any revisions to the Construction Budget effected without the consent of Administrative Agent pursuant to this <u>[Section 8.22](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

SECTION 8.23&nbsp;&nbsp;&nbsp;&nbsp;<u>ITCs and PTCs</u>. No Loan Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;agree, or cause any other Loan Party to agree, to any arrangement that would result in any interest in the Project being owned or used by a Disqualified Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;take, or agree to any other Loan Party taking, any action with its control, that would reasonably be expected to cause a claim against any Loan Party or Affiliate thereof by any ITC Transferee or any PTC Transferee for any loss, reduction, disallowance or deferral of ITCs or PTCs, as applicable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) on or prior to the ITC Transfer Funding Date, agree to any arrangement that could result in any loss, reduction, disallowance or deferral of the ITCs with respect to the WellCo Facilities that would reasonably be expected to result in the expected amount of the ITC Transfer Proceeds, as set forth in the Borrower Model, being less than the amount required to repay the outstanding TRABL Loans; and (ii) on or prior to the first PTC Transfer Funding Date, agree to any arrangement that would reasonably be expected to result in the expected amount of the PTC Transfer Proceeds, as set forth in the Borrower Model, being less than the amount required to repay the outstanding Term Loans pursuant to the applicable PTC sizing component

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to the extent the Term Loans have not been resized to account for the reduction in the PTC Transfer Proceeds.

SECTION 8.24&nbsp;&nbsp;&nbsp;&nbsp;<u>Regulations</u>. No Loan Party shall apply, or cause any other Loan

Party to apply, directly or indirectly, and whether immediately, incidentally or ultimately, any part of the proceeds of any Credit Extension or the Revenues to the purchasing or carrying of any margin stock within the meaning of Regulation T, U or X of the Board, or any regulations, interpretations or rulings thereunder, or to extend credit to others, or refund indebtedness incurred by others, for such purposes.

SECTION 8.25&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Status</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party shall permit the transferred ITCs available with respect to the WellCo Facilities or PTCs available with respect to the GenCo Facilities to be reduced or limited as a result of the application of Section 49 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;No Loan Party shall permit or allow a Loan Party to be treated other than as described in<u>[Section 6.8(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>for U.S. federal income tax purposes.

**ARTICLE IX**

**<u>EVENTS OF DEFAULT</u>**

SECTION 9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Listing of Events of Default</u>. Each of the following events or occurrences described in this Article shall constitute an "<u>Event of Default</u>."

SECTION 9.1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Payment of Obligations</u>. Any Loan Party shall default in the payment or prepayment when due of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any principal of any Loan or any Reimbursement Obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;interest on any Loan or any fee due under any Loan Document and such default shall continue unremedied for a period of three (3) Business Days after such amount was due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any other monetary Obligations and such default shall continue unremedied for a period of five (5) Business Days after the date a Borrower receives written notice that such sum is due.

SECTION 9.1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Misstatements</u>. Any financial statement, representation, warranty or certificate (including any Borrowing Request or any Issuance Request, but excluding any representation, warranty, statement or certificate with respect to any forward looking information or projections including the Projections) made or prepared by, under the control of or on behalf of any Obligor or Sponsor and furnished to Administrative Agent, Collateral Agent or any other Secured Parties pursuant to this Agreement or any other Loan Document: (a) shall, with respect to <u>Section 6.24</u>, contain an untrue or misleading statement of a fact as of the date made, or shall fail to state a fact necessary to make the statements therein not misleading as of the date made; or (b) other than as set forth in <u>clause (a)</u>, (i) shall contain an untrue or misleading statement of a fact as of the date made that would reasonably be expected

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to have a Material Adverse Effect; <u>provided</u> that no Event of Default shall occur pursuant hereto if such misstatement is capable of being remedied and has not caused a Material Adverse Effect, within forty-five (45) days after the date on which any Borrower receives notice (from any source) that such untrue or misleading statement has been made (such forty-five (45)-day period shall be extended as may be necessary to cure such default, not to exceed ninety (90) days in the aggregate (inclusive of the original forty-five (45)-day period)), such Borrower shall eliminate or otherwise cure such effect so that it would no longer reasonably be expected to have a Material Adverse Effect; or (ii) shall fail to state a fact necessary to make the statements therein not misleading as of the date made and as a result thereof there would reasonably be expected to occur a Material Adverse Effect.

SECTION 9.1.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Performance of Certain Covenants and Obligations</u>. Any Obligor shall default in the due performance or observance of any of its obligations under (a) <u>Sections</u> <u>7.1(g)</u>, <u>7.1(x)</u> and <u>7.1(u), 7.2(a)</u> (other than <u>Section 7.2(a)(iii)</u>),<u>[7.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[7.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(other than with respect to any administrative error), <u>7.22</u> or<u>[Article VIII](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1) or (b) <u>Section 7.5</u> or <u>7.12</u> (solely with respect to any default due to administrative error) and such default under this <u>clause (b)</u> shall continue unremedied for a period of ten (10) Business Days after the earlier to occur of (i) notice thereof having been given to a Borrower by the Administrative Agent and (ii) the date on which any Obligor first obtains knowledge of such default.

SECTION 9.1.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Non-Performance of Other Covenants and Obligations</u>. Any Obligor shall default in the due performance or observance of any other agreement in any Loan Document to which such Obligor is party, and such default shall continue unremedied for a period of thirty (30) days after the earlier to occur of (a) notice thereof having been given to a Borrower by the Administrative Agent, or (b) the date on which any Obligor first obtains knowledge of such default; <u>provided</u> that, if such default is not susceptible to cure within thirty (30) days, and such Obligor is proceeding with diligence and in good faith to cure such default, such default is susceptible to cure and such default has not resulted in a Material Adverse Effect, such thirty (30)-day period shall be extended as may be necessary to cure such default, such extended period not to exceed ninety (90) days in the aggregate, inclusive of the original thirty (30)-day period.

SECTION 9.1.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Default on Other Indebtedness</u>. (a) (i) A default shall occur in the payment (subject to any applicable grace period provided therefor) when due, whether by acceleration or otherwise, of any Indebtedness (other than Indebtedness described in <u>[Section](#i918c83e63c6d41b4b3424c701423fa52_1)</u> <u>[9.1.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1) of any Loan Party (A) arising from the borrowing of money in excess of $1,000,000 and (B) with respect to any such Indebtedness other than the Indebtedness described in <u>clause (A)</u> in excess of $2,000,000 or (ii) a default shall occur in the performance or observance of any obligation or condition with respect to such Indebtedness if the effect of such default is to accelerate the maturity of any such Indebtedness or such default shall continue unremedied for any applicable period of time sufficient to permit the holder or holders of such Indebtedness, or any trustee or agent for such holders, to cause or declare such Indebtedness to become due and payable or to require such Indebtedness to be prepaid, redeemed, purchased or defeased, or require an offer to purchase or defease such Indebtedness to be made, prior to its scheduled maturity, or to cause the full termination of such Indebtedness.

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SECTION 9.1.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Judgments</u>. Any final judgment or order for the payment of money, individually or in the aggregate, in excess of $1,000,000 or for injunctive relief that could reasonably be expected to result in a Material Adverse Effect shall be rendered against any Loan Party and such judgment shall not have been vacated or discharged or stayed or bonded pending appeal within sixty (60) days after the entry thereof or enforcement proceedings shall have been commenced by any creditor upon such judgment or order; <u>provided</u>, <u>however</u>, that any such judgment or order shall not be (and shall not constitute part of) an Event of Default under this<u>[Section 9.1.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>if and for so long as (a)(i) within sixty (60) days after the judgment is entered, the amount of such judgment or order is covered by a valid and binding policy of insurance or by a surety bond between the defendant and the insurer covering payment thereof, and (ii) such insurer or surety has been notified of, and has accepted the claim made for payment of, the amount of such judgment or order.

SECTION 9.1.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Pension Plans</u>. Any one or more ERISA Events, which individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

SECTION 9.1.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Impairment of Security, etc.</u> Any Loan Document, once executed and delivered, shall (except in accordance with its terms or as the result solely of the acts of any Credit Party), in whole or in part, terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of any Obligor party thereto; any Obligor shall, directly or indirectly, contest in any manner such effectiveness, validity, binding nature or enforceability; or except as permitted under any Loan Document, any Lien securing any Obligation shall, in whole or in part, cease to be effective to grant a perfected first priority Lien (subject to Permitted Liens) on the Collateral described therein or any Obligor shall, directly or indirectly, contest such perfection or priority.

SECTION 9.1.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Bankruptcy, Insolvency, etc</u>. Any Obligor, the Sponsor (until the later of (i) the Conversion Date and (ii) the latest Guaranty Termination Date (as defined in the Sponsor Guaranty)), any ITC Transferee (until the ITC Transferee has paid the ITC Transfer Proceeds in full under the ITC Transfer Agreement), any PTC Transferee, any Power Purchaser or any other Material Project Party shall, except to the extent (x) (i) the Borrowers promptly notify the Administrative Agent in writing that the Borrowers (and each other applicable Obligor) intend to replace the Material Project Document to which such Material Project Party is a party, (ii) such event has not resulted or could not reasonably be expected to result in the inability of the Borrowers to meet their payment obligations under the Loan Documents and could not reasonably be expected to have a Material Adverse Effect, and (iii) such Material Project Document is replaced with a Replacement Material Project Document or with an Additional Project Document in accordance with<u>[Section 8.10(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) within sixty (60) days after the occurrence of such event, or (y) in the case of the Contractor, the Conversion Date or the expiration of any applicable warranty period, whichever is later, shall have occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;become insolvent or generally fail to pay, or admit in writing its inability or unwillingness generally to pay, debts as they become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;apply for, consent to, or acquiesce in the filing of a petition in a court of competent jurisdiction seeking relief or the appointment of a trustee, receiver, sequestrator or

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other custodian, in each case in respect of such Person or for any substantial part of the property of such Person, file an answer admitting the material allegations of a petition filed against such Person or make a general assignment for the benefit of its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;in the absence of such application, consent or acquiescence in or permit or suffer to exist the appointment of a trustee, receiver, sequestrator or other custodian for a substantial part of its property, and such trustee, receiver, sequestrator or other custodian shall not be discharged within sixty (60) days; <u>provided</u> that each Obligor and the Sponsor hereby expressly authorizes each Credit Party to appear in any court conducting any relevant proceeding during such sixty (60)-day period to preserve, protect and defend their rights under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;permit or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law or any dissolution, winding up or liquidation proceeding, in respect thereof, and, if any such case or proceeding is not commenced by any such Person, such case or proceeding shall be consented to or acquiesced in by such Person or shall result in the entry of an order for relief or shall remain for sixty (60) days undismissed; <u>provided</u> that each Obligor and the Sponsor hereby expressly authorizes each Credit Party to appear in any court conducting any such case or proceeding during such sixty (60)-day period to preserve, protect and defend their rights under the Loan Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;take any action authorizing, or in furtherance of, any of the foregoing.

SECTION 9.1.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Change in Control</u>. A Change in Control shall occur.

SECTION 9.1.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Material Project Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Any Loan Party shall be in material breach or be in material default under any material term, covenant or agreement contained in any Material Project Document and such breach or default shall remain unremedied after the earlier of (x) the expiration of any applicable cure period thereunder (as may have been extended) and (y) thirty (30) days; <u>provided</u> that if (i) such breach cannot be cured within such period, (ii) such breach is susceptible to cure, (iii) such Loan Party is proceeding with diligence in good faith to cure such breach, (iv) the existence of such breach has not resulted in, and would not, after considering the nature of the cure, be reasonably expected to give rise to, a termination by the applicable Material Project Party, and (v) the Administrative Agent shall have received a certificate signed by an Authorized Financial Officer of the Borrowers to the effect of <u>clauses (i)</u>, <u>(ii)</u>, <u>(iii)</u> and <u>(iv)</u> above and stating what action such Loan Party is taking to cure such breach or default, then, so long as no Material Adverse Effect occurs or would reasonably be expected to occur, such initial cure period shall be extended to such date, not to exceed 120 days (inclusive of the original cure period), as shall be necessary for such Loan Party to diligently to cure such breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(1) Any Material Project Party (other than a Loan Party) to any of the Material Project Documents or (2) any party to a Key Project Document shall materially breach or be in material default under any material term, covenant or agreement contained in such agreement and such breach or default shall remain unremedied for the earlier of (x) the expiration of any

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applicable cure period thereunder (as may have been extended) and (y) thirty (30) days; <u>provided</u> that, so long as the applicable party is taking action to cure such breach or default, then, so long as no Material Adverse Effect occurs or would reasonably be expected to occur, such initial cure period shall be extended to such date, not to exceed 120 days (inclusive of the original cure period), as shall be necessary for such party diligently to cure such breach; and <u>provided</u>, <u>further</u> that no Event of Default shall be deemed to have occurred under this<u>[Section 9.1.11(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>if the applicable Material Project Document is replaced with a Replacement Material Project Document or with an Additional Project Document in accordance with<u>[Section 8.10(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) within sixty (60) days after the occurrence of such event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;(i) Any provision of (A) any Material Project Document or (B) any Key Project Document shall for any reason cease to be valid and binding on or enforceable against any party thereto (except upon fulfillment of such party's obligations thereunder) or (ii) (A) any Material Project Document or (B) any Key Project Document shall be terminated (except upon fulfillment of such party's obligations thereunder or the expiration of such agreement in accordance with its terms) and, in each of <u>clause (i)</u> and <u>(ii)</u>, such cessation or termination shall remain unremedied thirty (30) days, or with respect to the ITC Transfer Agreement and the PTC Transfer Agreement for sixty (60) days; <u>provided</u> that, (A) so long as the applicable Loan Party is taking action to cure such event, then, so long as no Material Adverse Effect occurs or could reasonably be expected to occur, such thirty (30)-day or sixty (60)-day cure period, as applicable, shall be extended to such date, not to exceed ninety (90) days (inclusive of the original cure period), as shall be necessary for such Loan Party to diligently cure such event; and (B) no Event of Default shall be deemed to have occurred under this<u>[Section 9.1.11(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>if such Material Project Document is replaced with a Replacement Material Project Document, or an Additional Project Document in accordance with<u>[Section 8.10(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) within sixty (60) days thereafter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;except in connection with assignment of the Transmission Services Agreement pursuant to the assignment agreements described in <u>Section 7.22(a)</u>, the O&M Provider shall be removed or otherwise cease to be a party to any Material Project Document that it is a party to as of the Closing Date.

SECTION 9.1.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Event of Loss</u>. (a) A destruction of, or loss with respect to, all or a substantial portion of the Project or (b) any condemnation, seizure or appropriation of all or a substantial part of the Project (each of the events described in the preceding <u>clauses (a)</u> and <u>(b)</u>, an "<u>Event of Loss</u>"), in each case, to the extent such Event of Loss, taken together with all other Events of Loss then existing pursuant to this<u>[Section 9.1.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) could reasonably be expected to cause a Material Adverse Effect, unless, the restoration or repair of the Project shall have been approved or is being effected in accordance with Section 3.05(c)(iii) of the Depositary Agreement.

SECTION 9.1.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Abandonment</u>. Any Loan Party shall have voluntarily abandoned construction or operation of the Project with no intent to resume such construction or operation, such abandonment to be evidenced by such Loan Party's cessation of such construction or operation for a period of sixty (60) consecutive days for reasons not associated with (a) the occurrence of a Forced Outage or a force majeure event (it being agreed that an Event of Loss in respect of the Project in accordance with the terms hereof shall not constitute abandonment of the Project), (b) any outage event during which the Project is continuing to

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receive payments in full from the Power Purchasers under the Power Purchase Agreements, (c) default by a counterparty to a Material Project Document, or (d) repairs, maintenance or restoration work.

SECTION 9.1.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Conversion Date</u>. The Conversion Date shall not have occurred on or prior to the Term Conversion Deadline.

SECTION 9.1.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Energy Regulatory Status and Material Permits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Once obtained, (i) any Project Company's MBR Authority shall be revoked, terminated or rescinded and such revocation, termination or rescission shall continue unremedied for a period of sixty (60) days or (ii) any Project Company's MBR Authority shall be amended, conditioned or restricted so as to have a Material Adverse Effect and such Material Adverse Effect shall continue unremedied for a period of sixty (60) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;(i) Once obtained, any Project Company loses its status as an EWG, and (ii) such Project Company's "holding company system," as such term is defined in PUHCA, no longer has an exemption from regulation under PUHCA equivalent to that provided by such Project Company having EWG status, and such condition shall continue unremedied for a period of sixty (60) days.

SECTION 9.1.16&nbsp;&nbsp;&nbsp;&nbsp;<u>EDR Project Pledge</u>. An EDR Project Pledge shall have occurred.

SECTION 9.1.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Sponsor Guaranty and Equity Commitment Letter</u>. (a) The Sponsor has failed to fund when required under either the Sponsor Guaranty or Equity Commitment Letter, or is otherwise in default under the Sponsor Guaranty or Equity Commitment Letter; or (b) the Sponsor Guaranty or Equity Commitment Letter is repudiated by the Sponsor or cancelled other than in accordance with its terms.

SECTION 9.1.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Water Appropriation Permit Appeal</u>. Except to the extent the conditions set forth in <u>Section 5.3.25(b)</u> have been met, a Water Appropriation Permit Appeal has been filed and results in a final, non-appealable order denying the Water Appropriation Permit or approving the Water Appropriation Permit with conditions that are not reasonably acceptable to all Lenders.

SECTION 9.1.19&nbsp;&nbsp;&nbsp;&nbsp;<u>TCTA Guarantor Bankruptcy</u>. The "Guarantor" (as defined in either the PTC Transfer Agreement or the ITC Transfer Agreement) has become "Bankrupt" (as defined in such agreement), and the "Seller" (as defined in such agreement) has either (a) not provided a replacement guaranty or letter of credit in compliance with such agreement within thirty (30) days, or (b) has notified the Administrative Agent in writing that it does not intend to provide a replacement guaranty or letter of credit in compliance with such agreement.

SECTION 9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Action if Bankruptcy</u>. If any Event of Default described in <u>Sections</u> <u>[9.1.9(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>through<u>[(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>with respect to a Borrower shall occur, the Commitments (if not theretofore terminated) shall automatically terminate and the outstanding principal amount of all outstanding Loans and all other Obligations (including Reimbursement Obligations) shall automatically be and become immediately due and payable, without notice or demand to any Person and each Loan Party shall automatically and immediately be obligated to Cash

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Collateralize all Material Construction Contract LC Outstandings, Shell PPA LC Outstandings, SCE PPA LC Outstandings and DSR LC Outstandings in accordance with <u>Section 2.6.5</u>.

SECTION 9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Action if Other Event of Default</u>. If any Event of Default (other than any Event of Default described in <u>Sections[9.1.9(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>through<u>[(e)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>with respect to a Borrower) shall occur for any reason, whether voluntary or involuntary, and be continuing, the Administrative Agent, upon the direction of the Required Lenders, shall by written notice to the Borrowers: (a) declare all or any portion of the outstanding principal amount of the Loans and other Obligations (including Reimbursement Obligations) to be due and payable and/or the Commitments (if not theretofore terminated) to be terminated, whereupon the full unpaid amount of such Loans and all other Obligations which shall so declared due and payable shall be and become immediately due and payable, without further notice, demand or presentment, and/or, as the case may be, the Commitments shall terminate and the Borrowers shall automatically and immediately be obligated to Cash Collateralize all Material Construction Contract LC Outstandings, DSR LC Outstandings, SCE PPA LC Outstandings and Shell PPA LC Outstandings in accordance with <u>Section 2.6.5</u>; and (b) direct the Collateral Agent to exercise the rights and remedies under the Security Documents in accordance with the terms thereof.

**ARTICLE X**

**<u>THE AGENTS</u>**

SECTION 10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Actions, Appointment; Powers and Duties</u>.

SECTION 10.1.1&nbsp;&nbsp;&nbsp;&nbsp;Each Lender and each LC Issuer authorizes MUFG Bank, Ltd. (x) to act as its Administrative Agent in accordance with the terms hereof and the other Loan Documents and with respect to any notice, agreement or other document contemplated in <u>Article[V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>to which the Administrative Agent may be a party, and (y) to act as the Green Loan Coordinator. The Administrative Agent hereby agrees to act in its capacity as such upon the express conditions contained herein and in the other Loan Documents. Each Lender and each LC Issuer irrevocably authorizes the Administrative Agent to take such action on such Lender's or LC Issuer's (as applicable) behalf and to exercise such powers, rights and remedies hereunder and under the other Loan Documents as are specifically delegated or granted to the Administrative Agent by the terms hereof and thereof, together with such powers, rights and remedies as are reasonably incidental thereto. Each Lender and each LC Issuer irrevocably authorizes the Administrative Agent to direct the Collateral Agent to release any Lien granted to or held by or in favor of the Collateral Agent for the benefit of the Secured Parties upon the occurrence of the Termination Date or in connection with (a) the Disposition of Collateral under the Loan Documents or (b) the release of any Borrower or Obligor, so long as, in the case of either <u>clause (a)</u> or <u>(b)</u>, such Disposition or release is otherwise permitted under the terms of the Loan Documents; <u>provided</u>, <u>however</u>, that the Administrative Agent shall be entitled, prior to any such release, to request that the Borrowers certify in a written notice delivered to the Administrative Agent (with such detail as the Administrative Agent may reasonably request) that such Disposition or release is made in compliance with the terms of the Loan Documents.

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SECTION 10.1.2&nbsp;&nbsp;&nbsp;&nbsp;Each Lender and each LC Issuer shall indemnify (which indemnity shall survive any termination of this Agreement, the payment of the Loans and the cancellation or expiration of the Commitments and the resignation or replacement of the applicable Agent) each Agent, *pro rata* according to such Lender's and each LC Issuer's proportionate Total Exposure Amount, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs or expenses (including reasonable and documented attorneys' fees and disbursements, including in connection with enforcement of this indemnity) of any kind or nature whatsoever which may at any time be imposed on, incurred by, or asserted against, such Agent in any way relating to or arising out of any Loan Document or any Letter of Credit or Loan or the use of proceeds thereof, and as to which such Agent is not reimbursed by the Borrowers (and without limiting their obligation to do so), including, without limitation, in exercising its powers, rights and remedies or performing its duties hereunder or under the other Loan Documents or otherwise in its capacity as Agent; <u>provided</u>, <u>however</u>, that no Lender or LC Issuer shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs or expenses which are determined by a court of competent jurisdiction in a final non-appealable decision to have resulted from such Agent's gross negligence or willful misconduct. No Agent shall be required to take any action under any Loan Document, or to prosecute or defend any suit in respect of any Loan Document, unless it is indemnified hereunder to its satisfaction. If any indemnity in favor of an Agent shall be or become, in such Agent's determination, inadequate, insufficient or impaired, such Agent may call for additional indemnification from the Lenders and the LC Issuers and cease to do, or not commence, the acts indemnified against hereunder until such additional indemnity is given.

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provided for therein) to the same extent as "Administrative Agent" thereunder as if set forth in full herein with respect thereto (and such provisions shall, as the context may require, inure to the benefit thereof). Additionally, each and every right, power, privilege or duty expressed or intended by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to the Administrative Agent with respect to any applicable Collateral shall be exercisable by and vest in the Collateral Agent to the extent, and only to the extent, necessary to enable the Collateral Agent to exercise such rights, powers and privileges with respect to such Collateral and to perform such duties with respect to such Collateral, and every covenant and obligation contained in the Loan Documents and necessary to the exercise or performance thereof by the Collateral Agent shall run to and be enforceable by any of the Administrative Agent or the Collateral Agent. Each Lender and each LC Issuer acknowledges that the Collateral Agent is acting on behalf of all Secured Parties. The Collateral Agent may at any time request instructions from the Administrative Agent and the Required Lenders as to a course of action to be taken by it hereunder or under any Security Documents. Should any instrument in writing from any Obligor be reasonably required by Collateral Agent or any such co-agents, sub-agents and attorneys-in-fact for more fully and certainly vesting in and confirming to it such rights, powers, privileges and duties set forth in this Agreement and the other Loan Documents, such Obligor shall execute, acknowledge (or shall cause to be executed and acknowledged) and deliver any and all such instruments promptly upon written request by Administrative Agent or Collateral Agent, as applicable.

SECTION 10.1.4&nbsp;&nbsp;&nbsp;&nbsp;Each Secured Interest Rate Hedge Provider is bound by the terms of this <u>Section[10.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1)

SECTION 10.1.5&nbsp;&nbsp;&nbsp;&nbsp;Each Secured Interest Rate Hedge Provider acknowledges and agrees that the Agents shall be instructed by the Lenders (or groups thereof) in accordance with <u>Section</u> <u>11.1</u> and the other provisions of this Agreement and the other Loan Documents and such Secured Interest Rate Hedge Provider shall have no right to consent to any action taken by an Agent or instruct any Agent hereunder or under any other Loan Document (other than the Secured Interest Rate Hedge Agreement to which it is a party), except as provided in <u>Section 11.1(p)</u>.

SECTION 10.1.6&nbsp;&nbsp;&nbsp;&nbsp;No Secured Interest Rate Hedge Provider that obtains the benefits of any Loan Document by virtue of the provisions hereof or thereof shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise, in each case, in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents (and for the avoidance of doubt, without limiting any rights of such Secured Interest Rate Hedge Provider under or in respect of any Secured Interest Rate Hedge Agreement to which it is a party). Notwithstanding any other provision of this<u>[Article X](#i918c83e63c6d41b4b3424c701423fa52_1)</u>to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other reasonably satisfactory arrangements have been made with respect to the Hedging Obligations arising under the Secured Interest Rate Hedge Agreements unless the Administrative Agent has received written notice of such obligations, together with such supporting documentation as the Administrative Agent may reasonably request, from the applicable Secured Interest Rate Hedge Provider.

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SECTION 10.1.7&nbsp;&nbsp;&nbsp;&nbsp;The Green Loan Coordinator, acting in such capacity, shall have the duties customarily performed by such coordinator, provided that the Green Loan Coordinator shall not have any liabilities under the Loan Documents or otherwise in relation to the Project. Anything herein to the contrary notwithstanding, the Green Loan Coordinator shall not have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity as a Lender hereunder. For the avoidance of doubt, none of the Green Loan Coordinator, the Administrative Agent or the Lenders is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement, including the monitoring of and/or verifying compliance with the Green Loan Principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall not be under any obligation to insure any of the Collateral, to require any Obligor to maintain any insurance or to verify any obligation to arrange or maintain insurance contained in the Loan Documents. The Administrative Agent shall not be responsible for any loss that may be suffered by any Person as a result of the lack of, or the inadequacy of, any such insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of the Administrative Agent (including but not limited to any act or provision of any present or future law or regulation or governmental authority, any act of God or war, pandemic, epidemic, civil unrest, local or national disturbance or disaster, any act of terrorism, or the

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unavailability of the Federal Reserve Bank wire or facsimile or other wire or communication facility).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Anything in this Agreement or in any of the Loan Documents notwithstanding, in no event shall the Administrative Agent be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) (as opposed to direct or actual damages) irrespective of whether the Administrative Agent has been advised of the likelihood of such loss or damage and regardless of the form of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything else to the contrary herein, whenever reference is made in this Agreement or any Loan Document to any discretionary action by, consent, designation, specification, requirement or approval of, notice, request or other communication from, or other direction given or action to be undertaken or to be (or not to be) suffered or omitted by the Administrative Agent or to any election, decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of discretion, rights or remedies to be made (or not to be made) by the Administrative Agent, it is understood that in all cases, the Administrative Agent shall be fully justified in failing or refusing to take any such action under this Agreement or any Loan Document if, in the case of the Administrative Agent, it shall not have received such written instruction, advice or concurrence of the Required Lenders or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents or any agreement to which the Lenders and the Administrative Agent is a party and acting in accordance with such documents (such Lenders being referred to herein as the "<u>Relevant Lenders</u>"), as the Administrative Agent deems appropriate. Upon receipt of such written instruction, advice or concurrence, the Administrative Agent (acting at the direction of the Required Lenders) shall take such discretionary actions in accordance with such written instruction, advice or concurrence. This provision is intended solely for the benefit of the Agents and their successors and permitted assigns and is not intended to and will not entitle the other parties hereto to any defense, claim or counterclaim, or confer any rights or benefits on any party hereto. Notwithstanding the foregoing, it is understood and agreed that if the Loan Documents provide a standard for the Administrative Agent's instruction, advice or concurrence (for example, that the Administrative Agent (acting at the direction of the Required Lenders) must act reasonably (or in its reasonable discretion or similar language) or that the Administrative Agent's consent must not be unreasonably withheld, conditioned or delayed (or similar language)), the same standard shall apply to a Lender that is providing its written instruction, advice or concurrence to the Administrative Agent with respect to such instruction, advice or concurrence. References to the Administrative Agent consulting with another Person shall be understood to be the Lenders consulting with such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default hereunder unless the Administrative Agent shall have received a written notice from any LC Issuer, a Lender or a Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a "notice of default." In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice thereof to the Lenders and the LC Issuers.

SECTION 10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Successor</u>. The Administrative Agent may resign as such at any time upon written notice to the Borrowers, the Lenders, the LC Issuers, the Collateral Agent and

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Depositary Bank. If the Administrative Agent at any time shall resign, the Required Lenders shall have the right to appoint another Lender or other financial institution as a successor Administrative Agent which shall thereupon become the Administrative Agent hereunder, with the consent of the Borrowers (other than following the occurrence and during the continuance of an Event of Default) not to be unreasonably withheld or delayed, such resignation to be effective on the earliest of (a) thirty (30) days after delivery of the notice of resignation (regardless of whether a successor has been appointed or not), (b) so long as no Event of Default has occurred and is continuing, consent to the appointment of the relevant successor Administrative Agent by the Borrowers (such consent not to be unreasonably withheld or delayed) and the Required Lenders, and (c) such other date, if any, agreed to by the Required Lenders and, other than following the occurrence and during the continuance of an Event of Default, the Borrowers (such agreement not to be unreasonably withheld or delayed). If a successor Administrative Agent has not already been appointed by the Required Lenders, and accepted such appointment, within thirty (30) days of the resigning Administrative Agent's giving notice of resignation, the resigning Administrative Agent shall have the right, with the consent of the Borrowers (other than following the occurrence and during the continuance of an Event of Default) not to be unreasonably withheld or delayed, to appoint a successor Administrative Agent, which shall be one of the Lenders or a commercial banking institution organized under the laws of the United States (or any state thereof) or a U.S. branch or agency of a commercial banking institution, and having a combined capital and surplus of at least Five Hundred Million Dollars ($500,000,000); <u>provided</u> that, if neither the Required Lenders nor the resigning Administrative Agent have appointed a successor Administrative Agent, the retiring Administrative Agent's resignation shall nevertheless thereupon become effective and the Required Lenders shall be deemed to have succeeded to, assumed and become vested with all the rights, powers, privileges and duties of the resigning Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor as provided for above. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall be entitled to receive from the retiring Administrative Agent such documents of transfer and assignment as such successor Administrative Agent may reasonably request, and shall thereupon succeed to and become vested with all rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under the Loan Documents. After the retiring Administrative Agent's resignation or removal hereunder as the Administrative Agent, the provisions of this Article, <u>Sections 11.3</u> and <u>11.4</u> shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under the Loan Documents.

SECTION 10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Credit Extensions by the Administrative Agent and Each LC Issuer</u>. The other provisions of this<u>[Article X](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall in no way impair or affect any of the rights and powers of, or impose any duties or obligations upon, the Administrative Agent in its individual capacity as a Lender and/or LC Issuer hereunder. The Administrative Agent and each LC Issuer, in its individual capacity as a Lender, shall have the same rights and powers with respect to (a)(i) in the case of the Administrative Agent, the Credit Extensions made by it or any of its Affiliates and (ii) in the case of an LC Issuer, the Loans made by it or any of its Affiliates, and (b) the Notes held by it or any of its Affiliates as any other Lender and may exercise the same as if it were not the Administrative Agent or an LC Issuer. The Administrative Agent, each LC Issuer and each of their respective Affiliates, in each case, in its individual capacity, may accept

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deposits from, lend money to, own securities of, and generally engage in any kind of banking, trust, financial advisory or other business with the Obligors and/or their respective Affiliates as if the Administrative Agent or such LC Issuer were not the Administrative Agent or such LC Issuer hereunder, and may accept fees and other consideration from the Borrowers and the other Obligors for services in connection herewith and otherwise without having to account for the same to the Lenders or any other LC Issuer.

SECTION 10.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Credit Decisions</u>. Each Lender and each LC Issuer represents and warrants that it has, independently of the Administrative Agent and each other Lender and LC Issuer, and based on such Person's review of the financial condition and affairs of the Obligors, the Loan Documents (the terms and provisions of which being satisfactory to such Person) and such other documents, information and investigations as such Person has deemed appropriate, made its own credit decision to extend its Commitments and make Credit Extensions. Each Lender and each LC Issuer also represents and warrants that it will, independently of the Administrative Agent and each other Lender and LC Issuer, and based on such other documents, information and investigations as it shall deem appropriate at any time, continue to make its own appraisal of the creditworthiness of the Obligors and its own credit decisions, including as to exercising or not exercising from time to time any rights and privileges available to it under the Loan Documents. The Administrative Agent shall have no duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of the Lenders or the LC Issuers or to provide any Lender or LC Issuer with any credit or other information with respect thereto, whether coming into its possession before the making of the Loans or the issuance of any Letters of Credit or at any time or times thereafter, and the Administrative Agent shall have no responsibility with respect to the accuracy of or the completeness of any information provided to the Lenders or the LC Issuers.

Each Lender and each LC Issuer, by delivering its signature page to this Agreement or a Lender Assignment Agreement and funding its Loans on the Closing Date or purchasing its Loans on the applicable effective date of such Lender Assignment Agreement, as the case may be, shall be deemed to have acknowledged receipt of, and consented to and approved, each other Loan Document and each other document or instrument required to be approved by the Administrative Agent, the Collateral Agent, the Depositary Bank, Required Lenders or the Lenders, as applicable, on the Closing Date.

SECTION 10.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Copies, etc.</u> The Administrative Agent shall give prompt notice to each Lender and each LC Issuer of each notice or request required or permitted to be given to the Administrative Agent by the Borrowers pursuant to the terms of the Loan Documents (unless concurrently delivered to the Lenders and the LC Issuers by the Borrowers). The Administrative Agent will distribute to each Lender and each LC Issuer each document or instrument received for its account and copies of all other communications received by the Administrative Agent from the Borrowers for distribution to the Lenders and the LC Issuers by the Administrative Agent in accordance with the terms of the Loan Documents.

SECTION 10.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Reliance by the Administrative Agent and the LC Issuers</u>. The Administrative Agent and each LC Issuer shall be entitled to rely, and shall be fully protected in relying, (a) upon any certification, communication, notice, instrument or document (including any thereof by telephone or electronic mail) believed by it to be genuine and correct and to have

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been signed or sent by or on behalf of the proper Person or Persons, and (b) upon opinions, advice, and statements of legal counsel (who may be attorneys for the Obligors), accountants, experts and other professional advisors selected by the Administrative Agent or the LC Issuers, as the case may be. Without limiting the generality of the other provisions of this <u>Article X</u>, as to any matters not expressly provided for by the Loan Documents, the Administrative Agent and each LC Issuer shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions given by the Required Lenders or all of the Lenders as is required in such circumstance, and such instructions of such Lenders and any action taken or failure to act pursuant thereto shall be binding on all Credit Parties. No Lender or LC Issuer shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or (where so instructed) refraining from acting hereunder or any of the other Loan Documents in accordance with the instructions of the Required Lenders (or such other Lenders as may be required to give such instructions under <u>Section 11.1)</u>.

SECTION 10.8&nbsp;&nbsp;&nbsp;&nbsp;<u>The Administrative Agent and the LC Issuers</u>. Notwithstanding anything else to the contrary contained in any Loan Document, (a) the Administrative Agent and the LC Issuers, in their respective capacities as such, shall have no duties or responsibilities under any Loan Document nor any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into any Loan Document or otherwise exist against the Administrative Agent or any LC Issuer, as applicable, in such capacity, except as are explicitly set forth in any such Loan Document, and nothing herein or any of the other Loan Documents, expressed or implied, is intended to or shall be so construed as to impose upon the Administrative Agent or any LC Issuer any obligations in respect hereof or any of the other Loan Documents except as expressly set forth herein or therein, and (b) the Administrative Agent shall not have, by reason hereof or any of the other Loan Documents, a fiduciary relationship in respect of any Lender, any LC Issuer or any other Person. In performing its functions and duties hereunder, the Administrative Agent shall act solely as an agent of the Lenders and the LC Issuers and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for any Obligor or any of its Affiliates. The Administrative Agent, without the consent of, or notice to, any party hereto, may assign any and all of its rights or obligations hereunder to any of its Affiliates that regularly performs the same agency functions with respect to similar facilities. It is understood and agreed that the use of the term "agent" herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties. The Administrative Agent may exercise such powers, rights and remedies and perform such duties by or through its agents or employees.

SECTION 10.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Appointment of Sub-Agent; etc.</u> (a) The Administrative Agent may perform any and all of their duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective officers, directors, employees and agents.

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&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)&nbsp;&nbsp;&nbsp;&nbsp;The Collateral Agent may also from time to time, when it deems it to be necessary or desirable, appoint one or more trustees, co-trustees, collateral co-agents, collateral subagents or attorneys-in-fact (each, a "<u>Supplemental Collateral Agent</u>") with respect to all or any part of the Collateral; <u>provided</u>, however, that no such Supplemental Collateral Agent shall be authorized to take any action with respect to any Collateral unless and except to the extent expressly authorized in writing by the Collateral Agent. Should any instrument in writing from any Obligor be required by any Supplemental Collateral Agent so appointed by the Collateral Agent to more fully or certainly vest in and confirm to such Supplemental Collateral Agent such rights, powers, privileges and duties, such Obligor shall execute, acknowledge and deliver any and all such instruments promptly upon request by such Collateral Agent. If any Supplemental Collateral Agent, or successor thereto, shall die, become incapable of acting, resign or be removed, all rights, powers, privileges and duties of such Supplemental Collateral Agent, to the extent permitted by law, shall automatically vest in and be exercised by the Collateral Agent until the appointment of a new Supplemental Collateral Agent. No Collateral Agent shall be responsible or liable for the negligence or misconduct of any agent, attorney-in-fact or Supplemental Collateral Agent that it selects in accordance with the foregoing provisions of this <u>Section 10.9</u> in the absence of gross negligence or willful misconduct as determined by a final non-appealable order of a court of competent jurisdiction on the part of the Collateral Agent. Any notice, request or other writing given to the Collateral Agent shall be deemed to have been given to each applicable Supplemental Collateral Agent. Every instrument appointing any Supplemental Collateral Agent shall refer to this Agreement and the conditions of this <u>Section 10.9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Should any instrument in writing from any Obligor be required by any sub-agent so appointed by the Administrative Agent to more fully and certainly vest in and confirm to it such rights, powers, privileges and duties, such Obligor shall execute, acknowledge and deliver any and all such instruments promptly upon written request by the Administrative Agent. In case any sub-agent, or a successor thereto, shall die, become incapable of acting, resign or be removed, all the rights, powers, privileges and duties of such sub-agent, to the extent permitted by law, shall vest in and be exercised by the Administrative Agent until the appointment of a new sub-agent. The provisions of <u>Sections[10.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[10.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and <u>11.4</u> that refer to the Administrative Agent shall inure to the benefit of each sub-agent and all references therein to the Administrative Agent shall be deemed to be references to the Administrative Agent and/or each sub-agent, as the context may require. Notwithstanding anything herein to the contrary, with respect to each sub-agent appointed by Administrative Agent, (i) such sub-agent shall be a third party beneficiary under this Agreement with respect to all such rights, benefits and privileges (including exculpatory rights and rights to indemnification) of the Administrative Agent and shall have all of the rights and benefits of a third party beneficiary, including an independent right of action to enforce such rights, benefits and privileges (including exculpatory rights and rights to indemnification) directly, without the consent or joinder of any other Person, against any or all of Loan Parties and the Lenders, and (ii) such sub-agent shall only have obligations to the Administrative Agent and not to any Obligor, Lender or any other Person and no Obligor, Lender or any other Person shall have any rights, directly or indirectly, as a third party beneficiary or otherwise, against such sub-agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the

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Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

SECTION 10.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Agents</u>. Any arrangers or bookrunners and the documentation agent named herein shall have no duties or responsibilities under this Agreement or any other Loan Document nor any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or otherwise exist against any such Person, in such capacities.

SECTION 10.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Collateral Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Beyond the exercise of reasonable care in the custody thereof, the Collateral Agent shall not have any duty as to any of the Collateral in its possession or control or in the possession or control of any agent or bailee or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto and the Collateral Agent shall not be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the perfection of, or priority or validity of any security interest in the Collateral. The Collateral Agent shall not be liable or responsible for any loss or diminution in the value of any of the Collateral, by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Agent in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Collateral Agent shall not be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, except to the extent such action or omission constitutes gross negligence or willful misconduct as determined by a final non-appealable decision of a court of competent jurisdiction, on the part of the Collateral Agent, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of any Obligor to the Collateral, for insuring the Collateral or for the payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Collateral Agent is required to acquire title to any property for any reason, or take any managerial action of any kind in regard thereto, in order to carry out any obligation for the benefit of another, which in the Collateral Agent's sole discretion may cause a Collateral Agent to be considered an "*owner or operator*" under the provisions of CERCLA, or otherwise cause the Collateral Agent to incur liability under CERCLA or any other federal, state or local law, the Collateral Agent reserves the right, instead of taking such action, to either resign as Collateral Agent or arrange for the transfer of the title or control of the asset to a court-appointed receiver. Except for such claims or actions arising from the Collateral Agent's gross negligence or willful misconduct (as determined by a final non-appealable judgment of a court of competent jurisdiction), the Collateral Agent shall not be liable to the Secured Parties, the Obligors or any other Person for any Environmental Claims under any federal, state or local law, rule or regulation by reason of the Collateral Agent's actions and conduct as authorized, empowered and directed hereunder or relating to the discharge, release or threatened release of Hazardous Materials into the environment. If at any time it is necessary or advisable for any part of a Loan Party's property to be possessed, owned, operated or managed by any Person

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(including the Collateral Agent) other than an Obligor or the Secured Parties, the Required Lenders shall direct the Collateral Agent to appoint an appropriately qualified Person (excluding the Collateral Agent) who they shall designate to possess, own, operate or manage, as the case may be, such part of the applicable Loan Party's property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;None of the provisions of this Agreement or the other Loan Documents shall be construed to require the Collateral Agent in its individual capacity to expend or risk its own funds or otherwise to incur any financial liability in the performance of any of its duties hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Collateral Agent shall be entitled to take any action or refuse to take any action which the Collateral Agent regards as necessary to comply with any applicable law, regulation or court order.

SECTION 10.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Posting of Approved Electronic Communications; Non-Public</u> <u>Information</u>. (a) Each Borrower hereby agrees, unless directed otherwise by the Administrative Agent or unless the electronic mail address referred to below has not been provided by the Administrative Agent to the Obligors that each will provide to the Administrative Agent all information, documents and other materials that each is obligated to furnish to the Administrative Agent pursuant to the Loan Documents or to the Lenders under<u>[Section 7.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) including all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) is or relates to a Borrowing Request, a Continuation/Conversion Notice or an Issuance Request, (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default under this Agreement or any other Loan Document or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any Borrowing or other extension of credit hereunder (all such non-excluded communications being referred to herein collectively as "<u>Communications</u>"), by transmitting the Communications in an electronic/soft medium that is properly identified in a format acceptable to the Administrative Agent to an electronic mail address as directed by the Administrative Agent. In addition to the foregoing, each Borrower agrees to continue to provide the Communications to the Administrative Agent, the Lenders, or the LC Issuers, as the case may be, in the manner specified in the Loan Documents but only to the extent requested by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Obligor further agrees that the Administrative Agent may make the Communications and any excluded Communications referred to in <u>clause (a)</u> above (the "<u>Excluded Communications</u>") available to the Lenders and LC Issuers by posting the Communications on Intralinks, Debtdomain, Syndtrak or a substantially similar electronic transmission system (the "<u>Platform</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent agrees that the receipt of the Communications and Excluded Communications by the Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications and Excluded Communications to the Administrative Agent for purposes of the Loan Documents. Each Lender and LC Issuer agrees that receipt of notice to it (as provided in the next sentence) specifying that the Communications and Excluded Communications have been posted to the Platform shall constitute effective

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delivery of the Communications and Excluded Communications to such Lender or LC Issuer for purposes of the Loan Documents. Each Lender and LC Issuer agrees to notify the Administrative Agent in writing (including by electronic communication) from time to time of such Lender or LC Issuer's e-mail address to which the foregoing notice may be sent by electronic transmission and that the foregoing notice may be sent to such e-mail address.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Nothing herein shall prejudice the right of the Administrative Agent, any LC Issuer or any Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Each Borrower hereby acknowledges that (i) the Administrative Agent will make available to the Lenders and the LC Issuers materials and/or information provided by or on behalf of the Borrowers hereunder (collectively, "<u>Borrower Materials</u>") by posting the Borrower Materials on the Platform and (ii) certain of the Lenders (each, a "<u>Public Lender</u>") may have personnel who do not wish to receive Material Non-Public Information and who may be engaged in investment and other market-related activities with respect to the Borrowers' or their Affiliates' securities. Each Borrower hereby agrees that the Borrower Materials distributed to Public Lenders will include a representation that (x) no Loan Party is presently the issuer of any debt or equity securities issued pursuant to a public offering or Rule 144A or similar private placement, (y) such Borrower Materials may contain Material Non-Public Information, but do not contain financial projections or budget forecasts prepared by any Loan Party and (z) if any Loan Party is or becomes the issuer of any debt or equity securities issued pursuant to a public offering or Rule 144A or other private placement to lenders that include "public side" lenders, or it is actively contemplating any such issuance of securities, in connection with (and prior to) the issuance of such securities, the Borrowers will publicly disclose (or otherwise disclose in an appropriate manner for the type of offering, including in the related prospectus or other offering document for the issuance of such securities) all information contained in such Borrower Materials at such time. Notwithstanding the foregoing, (A) any Loan Documents and the financial information required to be delivered pursuant to <u>Sections[7.1(a)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[7.1(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[7.1(c)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>shall be treated as if not containing Material Non-Public Information for purposes of this paragraph and (B) all information provided by the Borrowers to a Lender or LC Issuer shall be subject to the provisions of <u>Section 11.14</u>.

SECTION 10.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding Tax</u>. To the extent required by any Applicable Law, the Administrative Agent may withhold from any interest payment to any Credit Party an amount equivalent to any applicable withholding tax. If any payment has been made to any Credit Party by the Administrative Agent without the applicable withholding tax being withheld from such payment and the Administrative Agent has paid over the applicable withholding tax to the IRS or any other Governmental Authority or the IRS or any other Governmental Authority asserts a claim that the Administrative Agent or Obligor did not properly withhold tax from amounts paid to or for the account of any Credit Party because the appropriate form was not delivered or was not properly executed or because such Credit Party failed to notify the Administrative Agent of a change in circumstance which rendered the exemption from, or reduction of, withholding tax ineffective or for any other reason, such Credit Party shall indemnify the Administrative Agent or, if such failure or other reason is not attributable to a Change in Law, the Obligor fully for all amounts paid, directly or indirectly, by the Administrative Agent as tax or otherwise, including any penalties or interest and together with all expenses (including legal expenses, allocated

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internal costs and out-of-pocket expenses) incurred. Each Credit Party hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Credit Party under this Agreement or any other Loan Document against any amount due to the Administrative Agent under this <u>Section 10.13</u>. The agreements in this <u>Section 10.13</u> shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Credit Party, the termination of the Commitment and the repayment, satisfaction or discharge of all other Obligations.

SECTION 10.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Administrative Agent May File Bankruptcy Disclosure and Proofs of</u> <u>Claim</u>. In case of the pendency of any proceeding under any Debtor Relief Laws relative to any Obligor, the Administrative Agent (irrespective of whether the principal of any Loan or Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on Borrowers or any other Obligor) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;to file a verified statement pursuant to rule 2019 of the Federal Rules of Bankruptcy Procedure that, in its sole opinion, complies with such rule's disclosure requirements for entities representing more than one creditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the LC Issuers and the Agents (including any claim for the reasonable compensation, expenses, disbursements and advances of the Agent and their respective agents and counsel and all other amounts due the Lenders, the LC Issuers and the Agents under the Loan Documents allowed in such judicial proceeding); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and LC Issuer to make such payments to the Administrative Agent or Collateral Agent, as applicable, and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and LC Issuers, to pay to the Agents any amount due for the reasonable compensation, expenses, disbursements and advances of the Agents and their agents and counsel, and any other amounts due to the Agents under <u>Sections[3.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>11.3</u> and <u>11.4</u>. To the extent that the payment of any such compensation, expenses, disbursements and advances of the Agents, their agents and counsel, and any other amounts due to the Agents under <u>Sections[3.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>11.3</u> and <u>11.4</u> out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Lenders or LC Issuers may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or LC Issuer any plan of reorganization,

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arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or LC Issuer or to authorize the Administrative Agent to vote in respect of the claim of any Lender or LC Issuer in any such proceeding.

SECTION 10.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Erroneous Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;If the Administrative Agent (x) notifies a Credit Party, or any Person who has received funds on behalf of a Credit Party (any such Credit Party or recipient (and each of their respective successors and assigns), a "<u>Payment Recipient</u>") that the Administrative Agent (acting at the direction of the Required Lenders) has determined in its discretion (whether or not after receipt of any notice under immediately succeeding <u>clause (b)</u>) that any funds (as set forth in such notice from the Administrative Agent) received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Credit Party or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>Erroneous Payment</u>") and (y) demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent pending its return or repayment as contemplated below in this <u>Section 10.15</u> and held in trust for the benefit of the Administrative Agent, and such Credit Party shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter (or such later date as the Administrative Agent (acting at the direction of the Required Lenders) may, in its discretion, specify in writing), return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon (except to the extent waived in writing by the Administrative Agent) in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this <u>clause (a)</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Without limiting immediately preceding <u>clause (a)</u>, each Credit Party or any Person who has received funds on behalf of a Credit Party (and each of their respective successors and assigns), agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in this Agreement or in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Credit Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part), then in each such case:

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&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)&nbsp;&nbsp;&nbsp;&nbsp;it acknowledges and agrees that (A) in the case of immediately preceding <u>clauses (x)</u> or <u>(y)</u>, an error and mistake shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error and mistake has been made (in the case of immediately preceding <u>clause (z)</u>), in each case, with respect to such payment, prepayment or repayment; 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)&nbsp;&nbsp;&nbsp;&nbsp;such Credit Party shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one (1) Business Day of its knowledge of the occurrence of any of the circumstances described in immediately preceding <u>clauses (x)</u>, <u>(y)</u> and <u>(z)</u>) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>Section</u> <u>10.15(b)</u>.

For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent pursuant to this <u>Section 10.15(b)</u> shall not have any effect on a Payment Recipient's obligations pursuant to <u>Section 10.15(a)</u> or on whether or not an Erroneous Payment has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each Credit Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Credit Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Credit Party under any Loan Document with respect to any payment of principal, interest, fees or other amounts, against any amount that the Administrative Agent has demanded to be returned under immediately preceding <u>clause (a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor in accordance with immediately preceding <u>clause (a)</u>, from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an "<u>Erroneous Payment Return</u> <u>Deficiency</u>"), upon the Administrative Agent's notice to such Lender at any time, then effective immediately (with the consideration therefor being acknowledged by the parties hereto), (A) such Lender shall be deemed to have assigned its Loans (but not its Commitments) of the relevant Facility with respect to which such Erroneous Payment was made (the "<u>Erroneous</u> <u>Payment Impacted Class</u>") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment Impacted Class, the "<u>Erroneous Payment</u> <u>Deficiency Assignment</u>") (on a cashless basis and such amount calculated at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance)), and is hereby (together with the Borrowers) deemed to execute and deliver a Lender Assignment Agreement (or, to the extent applicable, an agreement incorporating an assignment and assumption by reference pursuant to the Platform as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any Notes evidencing such Loans to the applicable Borrower or the Administrative Agent (but the failure of such Person to deliver any such Notes shall not affect the effectiveness of the foregoing assignment), (B) the Administrative Agent as the assignee Lender shall be deemed to have acquired the Erroneous Payment Deficiency

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Assignment, (C) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender, and (D) the Administrative Agent will reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 11.11</u> (but excluding, in all events, any assignment consent or approval requirements (whether from the Borrowers or otherwise)), the Administrative Agent (acting at the direction of the Required Lenders) may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). In addition, an Erroneous Payment Return Deficiency owing by the applicable Lender (x) shall be reduced by the proceeds of prepayments or repayments of principal and interest, or other distribution in respect of principal and interest, received by the Administrative Agent on or with respect to any such Loans acquired from such Lender pursuant to an Erroneous Payment Deficiency Assignment (to the extent that any such Loans are then owned by the Administrative Agent) and (y) may, in the discretion of the Administrative Agent (acting at the direction of the Required Lenders), be reduced by any amount specified by the Administrative Agent in writing to the applicable Lender from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Credit Party, to the rights and interests of such Credit Party, as the case may be) under the Loan Documents with respect to such amount (the "<u>Erroneous Payment</u> <u>Subrogation Rights</u>") (<u>provided</u> that the Loan Parties' Obligations under the Loan Documents in respect of the Erroneous Payment Subrogation Rights shall not be duplicative of such Obligations in respect of Loans that have been assigned to the Administrative Agent under an Erroneous Payment Deficiency Assignment) and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by a Borrower or any other Loan Party; <u>provided</u> that this <u>Section 10.15</u> shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the Obligations of a Borrower relative to the amount (and/or timing for payment) of the Obligations that would have been payable had such Erroneous Payment not been made by the Administrative Agent; <u>provided</u>, <u>further</u>, that for the avoidance of doubt, immediately preceding <u>clauses (x)</u> and <u>(y)</u> shall not apply to the extent any such Erroneous Payment is, and solely with respect to the

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amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from or on behalf of (including through the exercise of remedies under any Loan Document) a Borrower for the purpose of a payment of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;To the extent permitted by Applicable Law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including, without limitation, any defense based on "discharge for value" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Each party's obligations, agreements and waivers under this <u>Section 10.15</u> shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender or LC Issuer, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

**ARTICLE XI**

**<u>MISCELLANEOUS PROVISIONS</u>**

SECTION 11.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Waivers, Amendments, etc.</u> Except as otherwise expressly set forth in this Agreement (including<u>[Section 4.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and<u>[Section 4.7(](#i918c83e63c6d41b4b3424c701423fa52_1)b)</u>), the provisions of each Loan Document (other than the Fee Letters, the Secured Interest Rate Hedge Agreements or any Letter of Credit, in which cases under which amendments, modifications and waivers may be effected by the parties thereto in accordance with their respective terms) may from time to time be amended, modified or waived, if such amendment, modification or waiver (x) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrowers and the Administrative Agent and consented to by the Required Lenders and (y) in the case of any such other Loan Document, pursuant to an agreement or agreements in writing (which can include via electronic mail) entered into by each party thereto and the Administrative Agent and consented to by the Required Lenders; <u>provided</u>, <u>however</u>, that no such amendment, modification or waiver shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;increase the aggregate amount of any Credit Extensions required to be made by any Lender pursuant to its Commitments, extend the Commitment Termination Date of Credit Extensions made (or participated in) by a Lender, extend any Stated Maturity Date for any Lender's Loan, extend any Stated Expiry Date for any Letter of Credit (except as contemplated in<u>[Section 2.6.1(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[)](#i918c83e63c6d41b4b3424c701423fa52_1), extend any Term Loan Principal Payment Date, or reduce the amount of, or waive or excuse any such payment of, any fees or other amounts described in<u>[Article III](#i918c83e63c6d41b4b3424c701423fa52_1)</u>or <u>Article IV</u> payable to any Lender, in each case without the consent of such Lender (it being agreed, however, that any vote to rescind any acceleration made pursuant to<u>[Section 9.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>and <u>[Section 9.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>of amounts owing with respect to the Loans and other Obligations shall only require the vote of the Required Lenders) (it being understood that waivers or modifications of conditions precedent, covenants, Defaults or Events of Default or of a mandatory reduction in the aggregate Commitments shall not constitute an increase of the Commitments of any Lender);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;reduce the amount of, or waive or excuse any such payment of, the principal amount of or reduce the rate of interest on any Lender's Loan or extend the date on which interest, fees or premium are payable to any Lender (including any cure period in connection therewith), in each case without the consent of such Lender; <u>provided</u> that, the vote of Required Lenders shall be sufficient to waive the payment, or reduce the increased portion, of interest accruing under<u>[Section 3.2.2](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[;](#i918c83e63c6d41b4b3424c701423fa52_1)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;except as otherwise expressly provided in a Loan Document on the date hereof, release (i) all or substantially all the Loan Parties from their Obligations under the Loan Documents or (ii) all or substantially all of the Collateral, in each case without the consent of all Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;amend the definition of "<u>TRABL Date Certain</u>" or "<u>Construction Date Certain</u>," without the consent of all Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;modify<u>[Section 4.7](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[Section 4.8](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>Section 7.8</u>, <u>Section 8.5</u>, or this <u>Section 11.1</u>; amend the definition of or reduce the percentage set forth in the definition of "<u>Required</u> <u>Lenders</u>," "<u>Percentage</u>," "<u>Material Construction Contract LC Loan Percentage</u>," "<u>Shell PPA LC</u> <u>Loan Percentage</u>," "<u>SCE PPA LC Loan Percentage</u>," "<u>DSR LC Loan Percentage</u>," "<u>Construction</u> <u>Loan Percentage</u>," "<u>Term Loan Percentage</u>" or "<u>TRABL Percentage</u>"; modify Section 3.09 of the Depositary Agreement; or modify any requirement hereunder that any particular action be taken by all Lenders, in each case without the consent of all Lenders that participate in the affected Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;increase the Stated Amount of any Letter of Credit unless consented to by each LC Issuer of such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;change <u>Section 2.6</u> in a manner that would permit the Stated Expiry Date of any Letter of Credit to occur after the Commitment Termination Date therefor without the consent of each LC Issuer and each Lender in the applicable LC Tranche;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;amend, modify or waive<u>[Section 5.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) unless such amendment, modification or waiver shall have been consented to by each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;change any provision of this Agreement or any other Loan Document in a manner that by its terms adversely affects the rights or priority in respect of payments due to any class of Lenders, differently from the other Lenders, without the consent of the Lenders holding a majority in interest of the applicable portion of the Total Exposure Amount of such adversely affected class of Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;affect adversely the interests, rights or obligations of the Administrative Agent (in its capacity as the Administrative Agent), any Material Construction Contract LC Issuer, any Shell PPA LC Issuer, any SCE PPA LC Issuer or any DSR LC Issuer, unless consented to by the Administrative Agent, such Material Construction Contract LC Issuer, SCE PPA LC Issuer, Shell PPA LC Issuer or DSR LC Issuer, as the case may be;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;affect adversely the interests, rights or obligations of the Collateral Agent (in its capacity as such) or the Depositary Bank (in its capacity as such), unless consented to by the Collateral Agent or the Depositary Bank, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;increase any Material Construction Contract LC Loan Commitment, Shell PPA LC Loan Commitment, SCE PPA LC Loan Commitment or DSR LC Loan Commitment of any Lender over the amount thereof then in effect without the consent of such Lender; <u>provided</u>, no amendment, modification or waiver of any condition precedent, covenant, Default or Event of Default shall constitute an increase in any Material Construction Contract LC Loan Commitment, SCE PPA LC Loan Commitment, Shell PPA LC Loan Commitment or DSR LC Loan Commitment of any Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;change the order of priority of payments or ratable sharing of payments set forth in Section 6.3 of the Guarantee and Collateral Agreement without the prior written consent of each Lender adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;change the order of priority of payments or ratable sharing of payments occurring after the occurrence and during the continuation of an Event of Default as set forth in Section 3.09 of the Depositary Agreement, in any case, without the prior written consent of each Lender adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;subordinate, or have the effect of subordinating, the Obligations hereunder, or the Liens granted hereunder or under the other Loan Documents, to any other Indebtedness or Lien, as the case may be, without the prior written consent of each Lender directly and adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;(i) affect in a manner that would (A) impact the interests, rights or obligations of any Secured Interest Rate Hedge Provider in a manner materially and adversely different from the impact on any Secured Party, (B) exclude any Secured Interest Rate Hedge Provider from being a Secured Party in respect of the Collateral, (C) exclude the obligations owing by Cape Phase 1 Borrower under any Secured Interest Rate Hedge Agreement to any Secured Interest Rate Hedge Provider from being Obligations, or (D) release all or substantially all of the Collateral or (ii) amend this <u>Section 11.1(p)</u>, in each case, unless consented to by such Secured Interest Rate Hedge Provider; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;release, or have the effect of releasing, all, substantially all or any material portion of the Collateral from the Lien granted pursuant to the Security Documents (as in effect as of the date of the second Credit Extension) or release any guarantees or undertakings under any of the Loan Documents or allow release of any funds from any Collateral Account other than (i) in accordance with the terms of this Agreement or the other Loan Documents, or (ii) any tax credits generated by the WellCo Facilities or PTCs generated by the GenCo Facilities which shall be automatically released from the Liens granted pursuant to the Security Documents upon sale thereof pursuant to the ITC Transfer Agreement or PTC Transfer Agreement, as applicable.

Notwithstanding the foregoing provisions of this <u>Section 11.1</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)&nbsp;&nbsp;&nbsp;&nbsp;each Material Construction Contract LC Loan Lender, Shell PPA LC Loan Lender, SCE PPA LC Loan Lender and DSR LC Loan Lender providing Material

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Construction Contract LC Loan Commitments, SCE PPA LC Loan Commitments, Shell PPA LC Loan Commitments and DSR LC Loan Commitments, respectively, may agree to extend the Material Construction Contract LC Loan Maturity Date, Shell PPA LC Loan Maturity Date, SCE PPA LC Loan Maturity Date and DSR LC Loan Maturity Date of its outstanding Material Construction Contract LC Loans and Material Construction Contract LC Loan Commitments and/or Shell PPA LC Loans and Shell PPA LC Loan Commitments and/or SCE PPA LC Loans and SCE PPA LC Loan Commitments and/or DSR LC Loans and DSR LC Loan Commitments, as applicable, in each case upon the request of the applicable Borrower and without the consent of any other Material Construction Contract LC Loan Lender, SCE PPA LC Loan Lender, Shell PPA LC Loan Lender or DSR LC Loan Lender, as applicable; it being understood that each Material Construction Contract LC Loan Lender, Shell PPA LC Loan Lender, SCE PPA LC Loan Lender or DSR LC Loan Lender under the applicable LC Tranche that is being extended shall have the opportunity to participate in such extension on the same terms and conditions as each other Material Construction Contract LC Loan Lender, Shell PPA LC Loan Lender, SCE PPA LC Loan Lender or DSR LC Loan Lender, as applicable, under such applicable LC Tranche. For the avoidance of doubt, no existing Material Construction Contract LC Loan Lender, Shell PPA LC Loan Lender, SCE PPA LC Loan Lender or DSR LC Loan Lender will have any obligation to commit to any such extension with respect to such Material Construction Contract LC Loan Lender's Material Construction Contract LC Loan Commitments, such Shell PPA LC Loan Lender's Shell PPA LC Loan Commitments, such SCE PPA LC Loan Lender's SCE PPA LC Loan Commitments or such DSR LC Loan Lender's DSR LC Loan Commitments, as applicable;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the Administrative Agent and the Borrowers may, without the consent of any Lender or LC Issuer, enter into any amendment, supplement or other modification to any Loan Document, in form and substance reasonably satisfactory to the Administrative Agent, to cure any ambiguity or to correct or supplement any provision in such agreement that may be inconsistent with any other provision of the Loan Documents or to further the intended purposes thereof or to make any change that would provide any additional rights or benefits to the Lenders or LC Issuers or make, complete or confirm any grant of Collateral permitted or required by this Agreement or any of the Security Documents or any release of any Collateral that becomes effective as set forth or permitted in this Agreement or any of the Security Documents; 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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent that by its terms requires the consent of all the Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended, or the maturity of any of its Loans may not be extended, the rate of interest on any of its Loans may not be reduced and the principal amount of any of its Loans may not be forgiven, in each case without the consent of such Defaulting Lender and (y) any amendment, waiver or consent requiring the consent of all the Lenders or each affected Lender that by its terms affects

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any Defaulting Lender more adversely than the other affected Lenders shall require the consent of such Defaulting Lender.

No failure or delay on the part of any Credit Party in exercising any power or right under any Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on any Obligor in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver or approval by any Credit Party under any Loan Document shall, except as may be otherwise stated in such waiver or approval, be applicable to subsequent transactions. No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder.

SECTION 11.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices; Time</u>. All notices and other communications provided under each Loan Document shall be in writing or by e-mail or telephone (if confirmed promptly on the same day in writing by e-mail) and addressed, delivered or transmitted, if to the Obligors or the Administrative Agent or the Collateral Agent, at its address, e-mail address or telephone number set forth on <u>Schedule VIII</u> hereto, and if to a Lender or an LC Issuer, to the applicable Person at its address or e-mail address or telephone number set forth on <u>Schedule VIII</u> hereto or set forth in the Lender Assignment Agreement pursuant to which such Lender became a Lender hereunder, or, in any case, at such other address or e-mail address as may be designated by any such party in a notice to the other parties. Any notice, if mailed and properly addressed with postage prepaid or if properly addressed and sent by pre-paid courier service, shall be deemed given when received; notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment). Subject to <u>Section 10.12(d)</u>, internet and intranet websites may, at the discretion of the Administrative Agent (acting at the direction of the Required Lenders), be used to distribute routine communications to the Secured Parties, such as financial statements and other information as provided in<u>[Section 7.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) to distribute Loan Documents for execution by Secured Parties and distribute executed Loan Documents to such Persons and may not be used for any other purpose. For the avoidance of doubt, the provisions of <u>Section 10.12(d)</u> pertaining to the use of electronic mail shall not apply to the issuance of any Letter of Credit by any LC Issuer.

SECTION 11.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Costs and Expenses</u>. The Obligors shall pay promptly all fees and expenses incurred by the Coordinating Lead Arrangers, the Administrative Agent, the Collateral Agent, the Depositary Bank, the LC Issuers and their respective Affiliates (including the documented and reasonable fees and out-of-pocket expenses of (a) Norton Rose Fulbright US LLP, as counsel to the Coordinating Lead Arrangers and the Administrative Agent and (b) Moses & Singer LLP, as counsel to the Collateral Agent and of any special or local counsel who may be retained by or on behalf of the Coordinating Lead Arrangers, Administrative Agent, Collateral Agent or Depositary Bank; <u>provided</u> that, absent any actual or potential conflict of interest, the reimbursement of such counsel's fees and expenses shall be limited to (A) one New York law firm for the Administrative Agent and the Lenders and (B) one New York law firm for the Collateral Agent and the Depositary Bank and (C) one counsel in each jurisdiction and with respect to <u>clause (iv)</u> below one specialist counsel in each relevant area and (c) the Independent Consultants in each case in connection with:

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&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)&nbsp;&nbsp;&nbsp;&nbsp;the negotiation, preparation, execution, delivery and, with respect to the Administrative Agent, administration of each Loan Document, including schedules and exhibits, and any amendments, waivers, consents, supplements or other modifications to any Loan Document as may from time to time hereafter be required or requested, whether or not the transactions contemplated hereby are consummated;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the filing, recording, refiling or rerecording of any Loan Document (including the Filing Statements), and all amendments, supplements, amendment and restatements, continuations and other modifications to any thereof, searches made prior to or following the Closing Date in jurisdictions where Filing Statements (or other documents evidencing Liens in favor of the Secured Parties) have been or will be filed or recorded (and other reasonable actions taken by the Administrative Agent or the Collateral Agent to satisfy themselves that the Liens granted pursuant to the Security Documents have been perfected and are of first priority (subject to Permitted Liens)) and any and all other documents or instruments of further assurance required to be filed or recorded, or refiled or rerecorded, or otherwise contemplated, by the terms of any Loan Document, including filing and recording fees, expenses, search fees and title insurance premiums, but excluding Taxes;

&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)&nbsp;&nbsp;&nbsp;&nbsp;the preparation and review of the form of any calculation, certificate, document or instrument relevant to any Loan Document; 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)&nbsp;&nbsp;&nbsp;&nbsp;all documented and reasonable out-of-pocket expenses (including attorneys' fees and legal expenses of counsel to the Credit Parties) incurred in connection with (x) the negotiation of any restructuring or "work-out" with the Borrowers or any other Obligor, whether or not consummated, of any Obligations or (y) the enforcement of any Obligations.

SECTION 11.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>. Without duplication of a Loan Party's obligations under<u>[Section 4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>(and excluding Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim), in consideration of the execution and delivery of this Agreement by each Credit Party, each Loan Party hereby indemnifies, exonerates and holds each Credit Party and each of their and their respective Affiliates, partners, officers, directors, trustees, employees, brokers, administrators, managers, advisors, agents and representatives, including accountants, auditors, and legal counsel of such Person and of such Person's Affiliates (collectively, the "<u>Indemnified Parties</u>") free and harmless from and against any and all actions, causes of action, suits, losses, costs, liabilities and damages, and expenses incurred in connection therewith (irrespective of whether any such Indemnified Party is a party to the action for which indemnification hereunder is sought), including documented and reasonable attorneys' fees and out-of-pocket disbursements, whether incurred in connection with actions between or among the parties hereto or the parties hereto and third parties (collectively, the "<u>Indemnified Liabilities</u>"), incurred by the Indemnified Parties or any of them as a result of, or arising out of, or relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of any Credit Extension, including all Indemnified Liabilities arising in connection with the Transactions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the entering into and performance of any Loan Document by any of the Indemnified Parties (including any action brought by or on behalf of the Obligors as the result of any determination by the Required Lenders pursuant to<u>[Article V](#i918c83e63c6d41b4b3424c701423fa52_1)</u>not to fund any Credit Extension, <u>provided</u> that, any such action is not resolved against such Indemnified Party in a final, non-appealable judgment);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;any Environmental Claims, or actual or alleged liabilities under any Environmental Law or Permit thereunder, related to any Loan Party or the Project or related real property, including, without limitation, resulting from (i) any actual or alleged violation of Environmental Law by any Loan Party or any other Person, or (ii) exposure to Hazardous Materials or any Release or threatened Release of Hazardous Materials, in either case, at, under, on, or from any property owned or operated by any Loan Party or any real property to which any Loan Party has transported or arranged for the transport of Hazardous Materials for treatment, storage or disposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;the issuance of any Letters of Credit, the use of proceeds therefrom, and any refusal by an LC Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by a Borrower or any other Obligor, and regardless of whether any Indemnified Party is a party thereto;

<u>except</u> for Indemnified Liabilities (w) to the extent they result from or that have arisen for the account of a particular Indemnified Party by reason of the relevant Indemnified Party's bad faith, gross negligence or willful misconduct (in each case as determined by a final and nonappealable decision of a court of competent jurisdiction), (x) that result from a claim not involving an act or omission of any Loan Party brought by a Loan Party against an Indemnified Party for breach in bad faith of such Indemnified Party's obligations hereunder or under any other Loan Document, if such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction, or (y) arising out of or in connection with any claim, litigation, investigation or proceeding that does not involve an act or omission by any Loan Party or any of its Affiliates and that is brought by an Indemnified Party against another Indemnified Party (other than, in the case of this <u>clause (y)</u>, any Indemnified Liabilities incurred by the Administrative Agent, the Collateral Agent or the Depositary Bank in their capacities as such and other than claims with respect to a Letter of Credit brought by one Indemnitee against another Indemnitee acting in a different capacity or role with respect to such Letter of Credit, such as an issuing bank as opposed to an advising bank, confirming bank, negotiating bank or transferring bank). If and to the extent that the foregoing undertaking may be unenforceable for any reason, each Loan Party agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under Applicable Law. Each Indemnified Party shall be a third party beneficiary under this Agreement with respect to all rights, benefits and privileges applicable to Indemnified Parties herein and shall have all of the rights and benefits of a third party beneficiary, including an independent right of action to

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enforce such rights, benefits and privileges directly, without the consent or joinder of any other Person, against any or all of Loan Parties.

To the extent permitted by Applicable Law, no Obligor shall assert, and each Obligor hereby waives, any claim against each Indemnified Party, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement or any Loan Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Obligor hereby waives, releases and agrees not to sue upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

SECTION 11.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>. The obligations of the Obligors under <u>Sections[4.3](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.4](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.5](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1)<u>[4.6](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) <u>11.2</u> and <u>11.4</u>, and the obligations of the Lenders under<u>[Section 10.1](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) shall in each case survive any assignment from one Lender to another (in the case of <u>Sections 11.2</u> and <u>11.4</u>) and the occurrence of the Termination Date. The representations and warranties made by each Obligor in each Loan Document shall survive the execution and delivery of such Loan Document.

SECTION 11.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. Any provision of any Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of such Loan Document or affecting the validity or enforceability of such provision in any other jurisdiction.

SECTION 11.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Headings</u>. The various headings of each Loan Document are inserted for convenience only and shall not affect the meaning or interpretation of such Loan Document or any provisions thereof.

SECTION 11.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution in Counterparts, Effectiveness, etc.</u> This Agreement may be executed by the parties hereto in several counterparts, each of which shall be an original (whether such counterpart is originally executed or an electronic copy of an original and each party hereto expressly waives its rights to receive originally executed documents other than with respect to any Notes) and all of which shall constitute together but one and the same agreement. This Agreement shall become effective when counterparts hereof executed on behalf of each Borrower, the Administrative Agent, each Lender and each LC Issuer (or notice thereof satisfactory to the Administrative Agent) shall have been received by the Administrative Agent. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to any document to be signed in connection with Agreement or any other Loan Document and the transactions contemplated hereby and thereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and

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National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

SECTION 11.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law; Entire Agreement</u>. EACH LOAN DOCUMENT (OTHER THAN THE LETTERS OF CREDIT, TO THE EXTENT SPECIFIED BELOW AND EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT) AND ANY CLAIMS, CONTROVERSIES, DISPUTES OR CAUSES OF ACTIONS (WHETHER IN CONTRACT OR TORT OR OTHERWISE AND IN LAW OR IN EQUITY) BASED UPON, DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS OR RELATIONSHIPS CONTEMPLATED HEREBY OR THEREBY SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. EACH LETTER OF CREDIT AND ANY CLAIMS, CONTROVERSIES, DISPUTES OR CAUSES OF ACTIONS (WHETHER IN CONTRACT OR TORT OR OTHERWISE AND IN LAW OR IN EQUITY) BASED UPON, DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS OR RELATIONSHIPS CONTEMPLATED HEREBY OR THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO LAWS OR RULES ARE DESIGNATED, THE INTERNATIONAL STANDBY PRACTICES (ISP98 INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NUMBER 590 (THE "<u>ISP RULES</u>")) AND, AS TO MATTERS NOT GOVERNED BY THE ISP RULES, THE LAWS OF THE STATE OF NEW YORK. The Loan Documents constitute the entire understanding among the parties hereto with respect to the subject matter thereof and supersede any prior agreements, written or oral, with respect thereto.

SECTION 11.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby; <u>provided</u>, <u>however</u>, that no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent, and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except to an assignee or by way of participation, in each case in accordance with the provisions of <u>Section 11.11</u>. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, and Participants to the extent provided in <u>Section 11.11</u>) any legal or equitable right, remedy or claim under or by reason of this Agreement.

SECTION 11.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Sale and Transfer of Credit Extensions; Participations in Credit</u> <u>Extensions; Notes</u>. (a) Each Lender may assign its Loans, Letters of Credit or Commitments to one or more other Persons in accordance with the terms set forth 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;(1)&nbsp;&nbsp;&nbsp;&nbsp;Any Lender may, with the consent of (or, in the case of the Administrative Agent, the acknowledgment): (v) except in the case of an assignment to a Lender, an

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Affiliate of a Lender or an Approved Fund, the Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed), (w) except in the case of an assignment (I) under the Construction Loan Facility or Term Loan Facility, as applicable, to a Lender, an Affiliate of a Lender or an Approved Fund, (II) under the TRABL Facility to a Lender, an Affiliate of a Lender or an Approved Fund, (III) under the Material Construction Contract LC Facility to a Material Construction Contract LC Loan Lender or an Affiliate of a Material Construction Contract LC Loan Lender or an Approved Fund, (IV) under the Shell PPA LC Facility to a Shell PPA LC Loan Lender or an Affiliate of a Shell PPA LC Loan Lender or an Approved Fund, (V) under the SCE PPA LC Facility to an SCE PPA LC Loan Lender or an Affiliate of a Shell PPA LC Loan Lender or an Approved Fund or (VI) under the DSR LC Facility to a DSR LC Loan Lender or an Affiliate of a DSR LC Loan Lender or an Approved Fund, to the extent a Default or an Event of Default has not occurred and is not continuing, the applicable Borrower (such consent not to be unreasonably withheld, conditioned or delayed) (<u>provided</u> that, with respect to an assignment under any of the Construction Loan Facility, Term Loan Facility, the TRABL Facility, the Material Construction Contract LC Facility, the Shell PPA LC Facility, the SCE PPA LC Facility and/or the DSR LC Facility, if the applicable Borrower shall not have consented to or rejected such assignment (including any assignment pursuant to <u>Section 11.11(a)(i)(A))</u> within ten (10) Business Days following receipt by the applicable Borrower of notice of such proposed assignment, such Borrower shall be deemed to have consented), (w) the applicable Material Construction Contract LC Issuers in the case of any assignment under the Material Construction Contract LC Facility (such consent not to be unreasonably withheld or delayed), (x) the applicable Shell PPA LC Issuers in the case of any assignment under the Shell PPA LC Facility (such consent not to be unreasonably withheld or delayed), (y) the applicable SCE PPA LC Issuers in the case of any assignment under the SCE PPA LC Facility (such consent not to be unreasonably withheld or delayed) and (z) the applicable DSR LC Issuers in the case of any assignment under the DSR LC Facility (such consent not to be unreasonably withheld, conditioned or delayed), assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments or Loans at the time owing to it); <u>provided</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;the aggregate amount of the Commitments (which for this purpose includes Loans outstanding thereunder) or principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Lender Assignment Agreement with respect to such assignment is delivered to the Administrative Agent) shall not be less than One Million Dollars ($1,000,000) (or a lesser amount if such amount, when added to the aggregate amount of Commitments and Loans being assigned substantially concurrently with such assignment to Affiliates of such Eligible Assignee that are administered or managed by such Eligible Assignee or an Affiliate of such Eligible Assignee, equal or exceeds One Million Dollars ($1,000,000)), unless (1) the Administrative Agent and, so long as no Default or Event of Default has occurred and is continuing, the applicable Borrower otherwise consents (each such consent not to be unreasonably withheld, conditioned or delayed); (2) such assignment is an assignment of the entire remaining amount of the assigning Lender's

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Commitments and Loans at the time owing to it or by related Approved Funds, or (3) such assignment is an assignment to a Lender, an Affiliate of a Lender or an Approved Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans and/or the Commitments assigned, except that this <u>clause (B)</u> shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate tranches on a non-pro rata basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;the parties to each assignment shall execute and deliver to the Administrative Agent a Lender Assignment Agreement, together, with respect to such manual transfer only, with a processing and recordation fee of Three Thousand Five Hundred Dollars ($3,500), which the Administrative Agent may at any time waive, and if the Eligible Assignee is not a Lender, administrative details and information with respect to such Eligible Assignee and applicable tax forms at least ten (10) Business Days prior to the proposed assignment; 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;(D)&nbsp;&nbsp;&nbsp;&nbsp;in connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the applicable Borrower and Administrative Agent, the applicable Percentage of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the LC Issuers and each Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full Percentage of all Loans and participations in Letters of Credit in accordance with its applicable LC Percentage thereof. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs. Subject to<u>[Section 4.12](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[,](#i918c83e63c6d41b4b3424c701423fa52_1) except to the extent expressly agreed by the affected parties, no assignment by a Defaulting Lender shall constitute a waiver or release of any claims of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of any applicable non-Defaulting Lender as a result of such non-Defaulting Lender's increased exposure following such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>clause (c)</u>, from and after the effective date specified in each Lender Assignment Agreement, (i) the Eligible Assignee thereunder shall be a party hereto and, to the extent of the interest

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assigned by such Lender Assignment Agreement, have the rights and obligations of a Lender under this Agreement, and (ii) the assigning Lender thereunder shall, to the extent of the interest assigned by such Lender Assignment Agreement, subject to <u>Section 11.5</u>, be released from its obligations under this Agreement (and, in the case of a Lender Assignment Agreement covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto, but shall continue to be entitled to the benefits of any provisions of this Agreement which by their terms survive the termination of this Agreement). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with <u>clauses (a)</u> and <u>(b)</u> of this <u>Section 11.11</u> shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>Section</u> <u>11.11(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent shall record each assignment made in accordance with this Section in the Register pursuant to<u>[Section 2.7(b)](#i918c83e63c6d41b4b3424c701423fa52_1)</u>[.](#i918c83e63c6d41b4b3424c701423fa52_1) The Register shall be available for inspection by the Borrowers and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Any Lender may, without the consent of, or notice to, the Borrowers or the Administrative Agent, sell participations to one or more banks or other entities, other than Affiliates of the Loan Parties, (a "<u>Participant</u>") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitments and/or the Loans owing to it); <u>provided</u> that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrowers, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; <u>provided</u> that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver with respect to any of the items set forth in <u>Sections 11.1(a)</u> through <u>(d)</u>, in each case except as otherwise specifically provided in a Loan Document. For the avoidance of doubt, each Lender shall be responsible for the indemnity under <u>Section 11.4</u> with respect to any payments made by such Lender to its Participant(s). Subject to <u>clause (e)</u>, each Borrower agrees that each Participant shall be entitled to the benefits of <u>Sections 4.3</u>, <u>4.4</u>, <u>4.5</u> and <u>4.6</u> (subject to the requirements and limitations therein, including the requirements under <u>Section 4.6(g)</u> (it being understood that the documentation required under <u>Section 4.6(g)</u> shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>clause (b)</u>; <u>provided</u> such Participant (A) agrees to be subject to <u>Section</u> <u>4.8</u> as though it were a Lender, (B) agrees to be subject to the provisions of <u>Section 4.10</u> as if it were an assignee under <u>paragraph (b)</u>; and (C) shall not be entitled to receive any greater payment under <u>Sections 4.3</u>, <u>4.4</u>, <u>4.5</u> or <u>4.6</u>, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. To the extent permitted by law, each Participant also shall be entitled to the benefits of <u>Section 4.9</u> as though it were a Lender; <u>provided</u> that such Participant agrees to be subject to <u>Section 4.8</u> as though it were a Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Each Lender that sells an interest in any Loan, Commitment or other interest to a Participant shall use reasonable efforts to cooperate with the Borrowers to effectuate the provisions of <u>Section 4.10</u> with respect to any Participant, and shall, as agent for the Borrowers solely for the purpose of this <u>Section 11.11(e)</u>, record in book entries maintained by such Credit Party the name and principal amounts (and stated interest) of the participating interest of each Participant entitled to receive payments in respect of such interest (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any Commitments, Loans, Letters of Credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations, Proposed Treasury Regulation Section 1.163-5(b) (or any amended or successor version) and Sections 163(f), 871(h)(2) and 881(c)(2) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;A Participant shall not be entitled to the benefits of <u>Section 4.6</u> unless the Borrowers are notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrowers, to comply with the requirements set forth in <u>Section 4.6</u> as though it were a Lender (<u>provided</u> that, subject to <u>Section 11.11(e)</u>, such notification and compliance need not include disclosing the identity of such Participant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or such central bank having supervisory jurisdiction over such Lender; <u>provided</u> that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

SECTION 11.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Transactions</u>. Nothing contained herein shall preclude the Administrative Agent, any LC Issuer or any other Lender from engaging in any transaction, in addition to those contemplated by the Loan Documents, with the Obligors or any of their respective Affiliates in which such Obligor or such Affiliate is not restricted hereby from engaging with any other Person.

SECTION 11.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Independence of Covenants and Default Provisions</u>. All covenants and default provisions contained in this Agreement or any other Loan Document shall be given independent effect such that, in the event a particular action or condition is not permitted by any of such covenants or default provisions, the fact that it would be permitted by an exception to, or be otherwise within the limitations of, another covenant or default provision shall not, unless expressly so provided in such first covenant or default provision, avoid the occurrence of a Default if such action is taken or such condition exists.

SECTION 11.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of <u>clause (b)</u> of this <u>Section 11.14</u>, each Credit Party that is a party hereto agrees that it will not disclose without the prior written consent of the Borrowers (other than to its Affiliates, directors, employees, auditors, advisors, brokers, consultants,

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trustees, counsel, or out-sourced service providers that perform administrative or operational monitoring or to another Credit Party if such Credit Party or such Credit Party's holding or parent company in its reasonable discretion determines that any such party should have access to such information; <u>provided</u> such Credit Party shall direct such Persons to comply with this <u>Section 11.14</u>) any non-public information related to the Borrowers or any of their respective Subsidiaries or any of their respective businesses and to the Project (other than any such information that is available to the Administrative Agent, any Lender or any LC Issuer on a nonconfidential basis prior to disclosure by a Borrower or any of its Subsidiaries or such information received from a Borrower or any of its Subsidiaries after the date hereof and that is not clearly identified at the time of delivery as confidential) which is now or in the future furnished pursuant to this Agreement or any other Loan Document, <u>provided</u> that any Credit Party may disclose any such information (i) as has become generally available to the public other than by virtue of a breach of this clause by the respective Credit Party or any other Person to whom such Credit Party has provided such information as permitted by this Section, (ii) to the extent required or requested by any Governmental Authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners) or to the Board or the Federal Deposit Insurance Corporation or similar organizations (whether in the United States or elsewhere) or their successors (any such entity, a "<u>Regulatory Authority</u>"), (iii) as may be required or requested in respect to any summons or subpoena or in connection with any litigation relating to its rights under any Loan Document, (iv) in order to comply with any law, order, regulation or ruling applicable to such Credit Party, (v) to the Administrative Agent or any other Credit Party, (vi) to any (A) pledgee referred to in <u>Section 11.11(g)</u>, (B) any prospective or actual transferee or participant in connection with any contemplated transfer or participation of any of the Notes, Loans or Commitments or any rights, obligations or interest therein by such Credit Party (including such parties' investors or investment or professional advisors), or (C) any Person (and any of its officers, directors, employees, agents or advisors) that may enter into or support, directly or indirectly, or that may be considering entering into or supporting, directly or indirectly, an actual or proposed securitization or collateralization of, or similar transaction relating to, all or a part of any amounts payable to or for the benefit of any Credit Party under any Loan Document (including any rating agency); <u>provided</u> that each such party agrees to be bound by the confidentiality provisions contained in, or provisions no less restrictive than, this Section, (vii) to any direct or indirect contractual counterparty in swap agreements or such contractual counterparty's professional advisor (so long as such contractual counterparty or professional advisor to such contractual counterparty agrees to be bound by the provisions of, or provisions no less restrictive than, this Section), (viii) to any potential or actual insurer, re-insurer, insurance broker or any credit risk support provider (so long as such insurer, re-insurer, insurance broker or credit risk support provider agrees to be bound by the provisions of, or provisions no less restrictive than, this Section) and (ix) to the NAIC or any similar organization or any nationally recognized rating agency that requires access to information about a Credit Party (including its investment portfolio) in connection with ratings issued with respect to such Credit Party; <u>provided further</u>, that nothing in this <u>Section 11.14</u> shall prohibit any Person from voluntarily disclosing or providing any information within the scope of this confidentiality provision to Regulatory Authority to the extent that any such prohibition contemplated by this <u>Section 11.14</u> on disclosure is prohibited by the laws or regulations applicable to such Regulatory Authority. In addition, each Credit Party may disclose the existence of this

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Agreement and the information about this Agreement for "league tables" and similar purposes to market data collectors and similar services providers to the lending industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Borrower hereby acknowledges and agrees that each Lender may share with any of its Affiliates, and such Affiliates may share with such Lender, any information related to any Obligor; <u>provided</u> such Persons shall be subject to the provisions of this Section to the same extent as such Lender.

Notwithstanding the foregoing <u>clauses (a)</u> and (b) of this Section, no conditions of confidentiality within the meaning of U.S. Treasury Regulation Section 1.6011-4 are intended, and any party to this Agreement (and each Affiliate, director, officer, employee, agent or representative of the foregoing or such Affiliate) may disclose to any and all Persons, without limitation of any kind, the "tax treatment" and "tax structure" of the transactions contemplated herein (as such terms are defined in U.S. Treasury Regulation Section 1.6011-4(c)(8) and (9), respectively) and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such tax treatment or tax structure, to the extent the disclosure of such materials is necessary for the transactions contemplated herein to be treated as not having been offered under conditions of confidentiality for purposes of U.S. Treasury Regulation Section 1.6011-4(b)(3) (or any successor provision). The foregoing language is not intended to waive any confidentiality obligations otherwise applicable under this Agreement except with respect to the information and materials specifically referenced in the preceding sentence. This authorization does not extend to disclosure of any other information, including (i) the identity of participants or potential participants in the transactions contemplated herein and no party shall disclose any information relating to such tax treatment and tax structure to the extent nondisclosure is reasonably necessary in order to comply with applicable securities laws (it is being understood that, for such purpose, the tax treatment of the transactions contemplated by this Agreement is the purported or claimed U.S. federal income tax treatment of such transactions and the tax structure of such transaction is any fact that may be relevant to understanding the purported or claimed U.S. federal income tax treatment of such transactions), (ii) the existence or status of any negotiations, or (iii) any financial, business, legal or personal information of or regarding a party or its affiliates, or of or regarding any participants or potential participants in the transactions contemplated herein (or any of their respective affiliates), in each case to the extent such other information is not related to the tax treatment or tax structure of the transactions contemplated herein.

SECTION 11.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Forum Selection and Consent to Jurisdiction</u>. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, ANY LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR THE TRANSACTIONS OR RELATIONSHIPS CONTEMPLATED HEREBY OR THEREBY OR ACTIONS OF THE ADMINISTRATIVE AGENT, THE LENDERS, ANY LC ISSUER, AND THE BORROWERS IN CONNECTION HEREWITH OR THEREWITH (WHETHER IN CONTRACT OR TORT OR OTHERWISE AND IN LAW OR IN EQUITY) SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE BOROUGH OF MANHATTAN OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN (INCLUDING ANY APPELLATE COURT THEREOF); <u>PROVIDED</u> THAT,

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ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE COLLATERAL AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH BORROWER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN <u>SECTION 11.2</u> OR TO ITS AGENT DESIGNATED FOR SUCH PURPOSE. EACH BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH BORROWER HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS.

SECTION 11.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Jury Trial</u>. THE ADMINISTRATIVE AGENT, EACH LENDER, EACH LC ISSUER, AND EACH BORROWER HEREBY IRREVOCABLY, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, EACH LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, SUCH LENDER, SUCH LC ISSUER, OR SUCH BORROWER IN CONNECTION THEREWITH (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY AND WHETHER IN LAW OR IN EQUITY). THE ADMINISTRATIVE AGENT, EACH LENDER, EACH LC ISSUER, AND EACH BORROWER CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. EACH BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT, EACH LENDER AND EACH LC ISSUER ENTERING INTO THE LOAN DOCUMENTS.

SECTION 11.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Counsel Representation</u>. EACH BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS BEEN REPRESENTED BY COMPETENT COUNSEL IN THE NEGOTIATION OF THIS AGREEMENT, AND THAT ANY RULE OR CONSTRUCTION OF LAW ENABLING A BORROWER TO ASSERT THAT ANY AMBIGUITIES OR INCONSISTENCIES IN THE DRAFTING OR PREPARATION OF THE TERMS OF THIS

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AGREEMENT SHOULD DIMINISH ANY RIGHTS OR REMEDIES OF THE ADMINISTRATIVE AGENT OR THE OTHER CREDIT PARTIES ARE HEREBY WAIVED BY EACH BORROWER.

SECTION 11.18&nbsp;&nbsp;&nbsp;&nbsp;<u>PATRIOT Act</u>. Each Credit Party hereby notifies the Borrowers that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify, and record information that identifies the Obligors, which information includes the name and address of the Obligors and other information that will allow such Credit Party to identify the Obligors in accordance with the PATRIOT Act.

SECTION 11.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Scope of Liability</u>. Notwithstanding anything to the contrary in this Agreement, any other Loan Document, or any other document, certificate or instrument executed by any Obligor pursuant hereto or thereto, none of the Credit Parties shall have any claims with respect to the transactions contemplated by the Loan Documents against the Sponsor or any other past, present or future holder (whether direct or indirect) of any equity interests in the Pledgor and its Affiliates (other than the Loan Parties), shareholders, officers, directors, employees' representatives, Controlling persons, executives or agents (collectively, the "<u>Non-Recourse</u> <u>Persons</u>"), such claims against such Non-Recourse Persons (including as may arise by operation of law) being expressly waived hereby; <u>provided</u> that the foregoing provision of this <u>Section</u> <u>11.19</u> shall not (a) constitute a waiver, release or discharge (or otherwise impair the enforceability) of any of the Obligations, or of any of the terms, covenants, conditions or provisions of this Agreement or any other Loan Document and the same shall continue (but without personal liability to the Non-Recourse Persons) until fully paid, discharged, observed or performed; (b) constitute a waiver, release or discharge of any Lien or security interest created or purported to be created pursuant to the Security Documents (or otherwise impair the ability of any Credit Party to realize or foreclose upon any Collateral); (c) limit or restrict the right of the Administrative Agent, the Collateral Agent or any other Credit Party (or any assignee, beneficiary or successor to any of them) to name the Pledgors, the Loan Parties or any other Person as a defendant in any action or suit for a judicial foreclosure or for the exercise of any other remedy under or with respect to this Agreement or any other Loan Document, or for injunction or specific performance, so long as no judgment in the nature of a deficiency judgment shall be enforced against any Non-Recourse Person, except as set forth in this <u>Section</u> <u>11.19</u>; (d) in any way limit or restrict any right or remedy of the Administrative Agent, the Collateral Agent or any other Credit Party (or any assignee or beneficiary thereof or successor thereto) with respect to, and each of the Non-Recourse Persons shall remain fully liable to the extent that it would otherwise be liable for its own actions with respect to, any gross negligence or willful misconduct; or (e) affect or diminish or constitute a waiver, release or discharge of any specific written obligation, covenant or agreement made by any of the Non-Recourse Persons (or any security granted by the Non-Recourse Persons in support of the obligations of any Person) under or in connection with any Loan Document (or as security for the Obligations). The limitations on recourse set forth in this <u>Section 11.19</u> shall survive the termination of this Agreement, the termination of all Commitments and the Secured Interest Rate Hedge Agreements to which any Credit Party is a party and the full payment and performance of the Obligations hereunder and under the other Loan Documents.

SECTION 11.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Obligations Several; Independent Nature of Lenders' Rights</u>. The obligations of Lenders hereunder are several and no Lender shall be responsible for the

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obligations or Commitment of any other Lender hereunder. Nothing contained herein or in any other Loan Document, and no action taken by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and each Lender shall be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose.

SECTION 11.21&nbsp;&nbsp;&nbsp;&nbsp;<u>No Fiduciary Obligation</u>. Each Borrower hereby acknowledges that each of the Credit Parties, the Coordinating Lead Arrangers, and any other arranger or bookrunners named herein (collectively, together with the Affiliates of each of the foregoing, the "<u>Lender Group</u>") is acting solely as lender, agent, bookrunner or arranger, as applicable, in connection with the Transactions contemplated by the Loan Documents (without limiting the provisions of <u>Section 10.10</u>). Each Borrower further acknowledges that each member of the Lender Group is acting pursuant to a contractual relationship created solely by the Loan Documents entered into on an arm's length basis and in no event do the parties intend that any Lender Group member act or be responsible as a fiduciary or advisor to any Borrower or its Affiliates in connection with any activity that any Lender Group member may undertake or have undertaken in furtherance of the Transactions, either before, on or after the Closing Date. Each Lender Group member hereby expressly disclaims any fiduciary or similar obligations to any such Person, either in connection with the Transactions or any matters leading up to the Transactions, and each Borrower hereby expressly confirms its understanding and agreement to that effect. The parties hereto agree that each Person party hereto is responsible for making its own independent judgments with respect to the Transactions, and that any opinions or views expressed by any Lender Group member to any Borrower or any of its Affiliates regarding the Transactions, including but not limited to any opinions or views with respect to the price or market for the Transactions, do not constitute advice or recommendations to such Borrower or such Affiliate. Each Borrower hereby expressly waives and releases, to the fullest extent permitted by law, any claims that any such Person may have against any Lender Group member with respect to any breach or alleged breach of any fiduciary or similar duty in connection with the Transactions or any matters leading up to the execution of the Loan Documents.

SECTION 11.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment and Consent to Bail-In of Affected Financial</u> <u>Institutions</u>. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the effects of any Bail-In Action on any such liability, including, if applicable:

(i)&nbsp;&nbsp;&nbsp;&nbsp;a reduction in full or in part or cancellation of any such liability;

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&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)&nbsp;&nbsp;&nbsp;&nbsp;a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; 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)&nbsp;&nbsp;&nbsp;&nbsp;the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

SECTION 11.23&nbsp;&nbsp;&nbsp;&nbsp;<u>Collateral Agent and Depositary Bank</u>. Each of the Collateral Agent and the Depositary Bank is entitled to all rights, privileges, protections, benefits, immunities and indemnities provided to such Person under the Depositary Agreement and the other Loan Documents. The Depositary Bank is an intended third party beneficiary of this Agreement. Each Lender and LC Issuer (and each Person that becomes a Lender and LC Issuer pursuant to <u>Section</u> <u>11.11</u>) hereby (a) authorizes and directs each of the Collateral Agent and the Depositary Bank to enter into the Loan Documents to which it is a party on behalf of such Lender or LC Issuer, as applicable, (b) consents to and ratifies the terms of the Loan Documents to which the Collateral Agent and Depositary Bank are parties, and (c) agrees that the Collateral Agent and Depositary Bank may take such actions on behalf of such Lender or LC Issuer as are contemplated by the terms of the Loan Documents. Neither the Collateral Agent nor any of its officers, directors, employees or agents shall have any responsibility for taking any necessary steps to establish or maintain perfection of the Lien (including the filing of any financing statements) granted in its favor hereunder or preserve rights against any parties or any other rights pertaining to any Collateral.

SECTION 11.24&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment Regarding Any Supported QFCs</u>. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Hedge Agreement or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit</u> <u>Support</u>", and each such QFC, a "<u>Supported QFC</u>"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "<u>U.S.</u> <u>Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with the paragraph below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

In the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered Party</u>") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents

 216 *Project Granite – Credit Agreement*

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that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

SECTION 11.25&nbsp;&nbsp;&nbsp;&nbsp;<u>Electronic Communications</u>. The parties hereto agree that this Agreement or any other related document or any instrument, agreement or document necessary for the consummation of the transactions contemplated by this Agreement or the other related documents or related hereto or thereto (including, without limitation, addendums, amendments, notices, instructions, communications with respect to the delivery of securities or the wire transfer of funds or other communications) ("<u>Executed Documentation</u>") may be accepted, executed or agreed to through the use of an electronic signature in accordance with Applicable Laws, rules and regulations in effect from time to time applicable to the effectiveness and enforceability of electronic signatures. Any Executed Documentation accepted, executed or agreed to in conformity with such laws, rules and regulations will be binding on all parties hereto to the same extent as if it were physically executed and each party hereby consents to the use of any third party electronic signature capture service providers as may be reasonably chosen by a signatory hereto or thereto. When any Agent or Depositary Bank acts on any Executed Documentation sent by electronic transmission, in the absence of actual knowledge to the contrary, such Agent or Depositary Bank will not be responsible or liable for any losses, costs or expenses arising directly or indirectly from its reliance upon and compliance with such Executed Documentation believed by it to be genuine and correct, notwithstanding that such Executed Documentation (a) may not be an authorized or authentic communication of the party involved or in the form such party sent or intended to send (whether due to fraud, distortion or otherwise) or (b) may conflict with, or be inconsistent with, a subsequent written instruction or communication; it being understood and agreed that any Agent and Depositary Bank shall conclusively presume that Executed Documentation that purports to have been sent by an authorized officer of a Person has been sent by an authorized officer of such Person. The party providing Executed Documentation through electronic transmission or otherwise with electronic signatures agrees to assume all risks arising out of such electronic methods, including, without limitation, the risk of an Agent or Depositary Bank acting on unauthorized instructions and the risk of interception and misuse by third parties.

SECTION 11.26&nbsp;&nbsp;&nbsp;&nbsp;<u>Keepwell</u>. To the extent that and for so long as (i) any of the Security Documents secures Swap Obligations, and (ii) any grantor or guarantor thereunder (other than a Borrower) otherwise would constitute a Non-ECP Guarantor and its obligations under the Security Documents would constitute Non-ECP Swap Obligations, each Borrower hereby guarantees the payment and performance of all obligations of each of such grantor or guarantor under such Security Documents, and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time to each of such grantors or guarantors in order for each of such grantors or guarantors to honor its obligations under its respective Security Documents with respect to the Swap Obligations (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering each Borrower's obligations hereunder voidable under Applicable Law relating to fraudulent

 217 *Project Granite – Credit Agreement*

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conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Borrower under this <u>Section 11.26</u> shall become effective upon such Borrower's receipt of an amount exceeding $10,000,000 of the proceeds of the Loans and shall remain in full force and effect until the Termination Date. Each Borrower intends that this <u>Section 11.26</u> constitute, and this <u>Section 11.26</u> shall be deemed to constitute a "keepwell, support, or other agreement" for the benefit of each grantors or guarantors under the Security Documents for all purposes of the Commodity Exchange Act, including Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

SECTION 11.27&nbsp;&nbsp;&nbsp;&nbsp;<u>Joint and Several Liability</u>. Notwithstanding anything in this Agreement or any other Loan Document to the contrary, each of the Borrowers hereby accepts joint and several liability hereunder and under the other Loan Documents for the Obligations, in consideration of the financial accommodations to be provided by the Agents and the Lenders under this Agreement and the other Loan Documents, for the mutual benefit, directly and indirectly, of each of the Borrowers and in consideration of the undertakings of the other Borrower to accept joint and several liability for the Obligations. Each of the Borrowers, jointly and severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Borrower, with respect to the payment and performance of all of the Obligations (including any Obligations arising under this <u>Section</u> <u>11.27</u>), it being the intention of the parties hereto that all of the Obligations shall be the joint and several obligations of each of the Borrowers without preferences or distinction among them. If and to the extent that either Borrower shall fail to make any payment with respect to any of the Obligations as and when due or to perform any of the Obligations in accordance with the terms thereof, then in each such event, the other Borrower will make such payment with respect to, or perform, such Obligation. Subject to the terms and conditions hereof, the Obligations of each of the Borrowers under the provisions of this <u>Section 11.27</u> constitute the absolute and unconditional, full recourse Obligations of each of the Borrowers, enforceable against each such Person to the full extent of its properties and assets, irrespective of the validity, binding effect or enforceability of this Agreement, the other Loan Documents or any other circumstances whatsoever.

SECTION 11.28&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Consultants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<u>Removal and Fees</u>. The Required Lenders, may remove, from time to time, any one or more of the Independent Consultants and appoint replacements reasonably acceptable to the Borrowers. Written notice of any proposed replacement Independent Consultant shall be given by the Administrative Agent to the Borrowers, the Lenders and the Independent Consultant being replaced. All reasonable and documented fees and expenses of the Independent Consultants (whether the original Independent Consultants or replacements) shall be paid by the Borrowers; <u>provided</u>, however, that unless an Event of Default shall have occurred and be continuing, the Administrative Agent shall request that each Independent Consultant provide the Borrowers with its proposed scope of work and proposed budget therefor, and shall consult with and seek the consent of the Borrowers with regard to the matters contained therein. In the event any consultant, advisor, accounting firm, law firm or other advisor specified by name in this Agreement or in any of the other Loan Documents shall, for any reason, be unable or unwilling to perform its duties as set forth herein or therein, or shall be replaced by the Persons retaining same, then the applicable party or parties shall use their reasonable best efforts to replace same with a substitute of comparable expertise.

 218 *Project Granite – Credit Agreement*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Consultants' Certificates</u>. The Borrowers shall provide such documents and information to the Independent Consultants as any of the Independent Consultants may reasonably consider necessary or advisable (and reasonably request in writing) in order for the Independent Consultants to deliver to the Administrative Agent, upon the reasonable request of the Administrative Agent, after written notification to the Borrowers, such information and certifications as the Administrative Agent may reasonably require in connection with this Agreement from time to time. The Borrowers shall provide the Independent Consultants with reasonable notice of the expected occurrence of any dates or events that would require certificates of the Independent Consultants hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;<u>Duties</u>. Each Independent Consultant shall be contractually obligated to the Administrative Agent to carry out the activities required of it in this Agreement and as otherwise requested by the Administrative Agent and shall be responsible solely to the Administrative Agent. Each Borrower acknowledges that it will not have any cause of action or claim against any Independent Consultant resulting from any decision made or not made, any action taken or not taken or any advice given by such Independent Consultant in the due performance in good faith of its duties to the Administrative Agent hereunder, except to the extent arising from such Independent Consultant's gross negligence or willful misconduct.

SECTION 11.29&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain ERISA Matters.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrowers or any other Loan Party, that at least one of the following is and will be true:

&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)&nbsp;&nbsp;&nbsp;&nbsp;such Lender is not using "plan assets" (within the meaning of 29 C.F.R. § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Pension Plans in connection with the Loans, the Letters of Credit, the Commitments or 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, and the conditions for exemptive relief thereunder are and will continue to be satisfied in connection therewith;

&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)&nbsp;&nbsp;&nbsp;&nbsp;(A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of

 219 *Project Granite – Credit Agreement*

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Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement; 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)&nbsp;&nbsp;&nbsp;&nbsp;such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In addition, unless <u>sub-clause (iii)</u> in the immediately preceding <u>clause (a)</u> is true with respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in <u>sub-clause (iv)</u> in the immediately preceding <u>clause (a)</u>, such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that none of the Administrative Agent or any of its Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

[SIGNATURE PAGES FOLLOW]

 220 *Project Granite – Credit Agreement*

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized as of the day and year first above written.

CAPE PHASE 1 BORROWER LLC,

as Cape Phase 1 Borrower

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| | |
|:---|:---|
| By: | /s/ Timothy Latimer |
| Name: | Timothy Latimer |
| Title: | President |

---

PHASE 1 WELLCO, LLC,

as the WellCo Borrower

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| | |
|:---|:---|
| By: | /s/ Timothy Latimer |
| Name: | Timothy Latimer |
| Title: | President |

---

[Signature Page to Project Granite Credit Agreement]

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MUFG BANK, LTD.,

as Administrative Agent

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| | |
|:---|:---|
| By: | /s/ Lawrence Blat |
| Name: | Lawrence Blat |
| Title: | Authorized Signatory |

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MUFG BANK, LTD.,

as a Lender, an LC Issuer, a Coordinating Lead

Arranger and Green Loan Coordinator

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| | |
|:---|:---|
| By: | /s/ Manuel Gonzalez |
| Name: | Manuel Gonzalez |
| Title: | Authorized Signatory |

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[Signature Page to Project Granite Credit Agreement]

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HSBC BANK USA, N.A.,

as Collateral Agent

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| | |
|:---|:---|
| By: | /s/ Deirdre M. Lewis |
| Name: | Deirdre M. Lewis |
| Title: | Associate Director |

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[Signature Page to Project Granite Credit Agreement]

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BANCO BILBAO VIZCAYA

ARGENTARIA, S.A. NEW YORK

BRANCH,

as a Lender, an LC Issuer, a Coordinating

Lead Arranger, and Hedging Coordinator

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| | |
|:---|:---|
| By: | /s/ Miguel Peña Azpilicueta |
| Name: | Miguel Peña Azpilicueta |
| Title: | Managing Director |

---

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| | |
|:---|:---|
| By: | /s/ Erlantz Peñalba Arce |
| Name: | Erlantz Peñalba Arce |
| Title: | Managing Director |

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[Signature Page to Project Granite Credit Agreement]

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BANK OF AMERICA, N.A.,

as a Lender

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| | |
|:---|:---|
| By: | /s/ Vilas Kuchinad |
| Name: | Vilas Kuchinad |
| Title: | Managing Director |

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[Signature Page to Project Granite Credit Agreement]

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BARCLAYS BANK PLC, N.A.,

as a Lender, an LC Issuer and a

Coordinating Lead Arranger

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| | |
|:---|:---|
| By: | /s/ James Edmonds |
| Name: | James Edmonds |
| Title: | Managing Director |

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[Signature Page to Project Granite Credit Agreement]

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HSBC BANK USA, N.A.,

as a Lender, an LC Issuer and a

Coordinating Lead Arranger

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| | |
|:---|:---|
| By: | /s/ Paul Snow |
| Name: | Paul Snow |
| Title: | Managing Director (23498) |

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[Signature Page to Project Granite Credit Agreement]

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JPMORGAN CHASE BANK, N.A.,

as a Lender

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| | |
|:---|:---|
| By: | /s/ Dong Sun Shin |
| Name: | Dong Sun Shin |
| Title: | Authorized Signer |

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[Signature Page to Project Granite Credit Agreement]

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ROYAL BANK OF CANADA,

as a Lender, an LC Issuer and a

Coordinating Lead Arranger

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| | |
|:---|:---|
| By: | /s/ Don J. McKinnerney |
| Name: | Don J. McKinnerney |
| Title: | Authorized Signatory |

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[Signature Page to Project Granite Credit Agreement]

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SUMITOMO MITSUI TRUST BANK,

LIMITED, NEW YORK BRANCH,

as a Lender

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| | |
|:---|:---|
| By: | /s/ Takuya Uekusa |
| Name: | Takuya Uekusa |
| Title: | Deputy General Manager |

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[Signature Page to Project Granite Credit Agreement]

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SOCIÉTÉ GÉNÉRALE,

as a Lender and a Coordinating Lead Arranger

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| | |
|:---|:---|
| By: | /s/ Eric Kim |
| Name: | Eric Kim |
| Title: | Managing Director |

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[Signature Page to Project Granite Credit Agreement]

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**SCHEDULE I**

**<u>DISCLOSURE SCHEDULES</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE II**

**<u>COMMITMENTS</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE III**

**<u>PERMITS</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE IV**

**<u>REQUIRED INSURANCE</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE V**

**<u>MATERIAL PROJECT DOCUMENTS</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE VI**

**<u>CONSENT TO COLLATERAL ASSIGNMENT</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE VII**

**<u>TITLE ENDORSEMENT</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE VIII**

**<u>NOTICE AND ADDRESS INFORMATION</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE IX**

**<u>PERFORMANCE TESTS</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

------

**SCHEDULE X**

**<u>EDR LEASES</u>**

[\*\*\*]

CREDIT AGREEMENT<br>(FERVO – PROJECT GRANITE)

## Exhibit 21.1

**Exhibit 21.1**

**List of Subsidiaries of Fervo Energy Company** 

---

| | | |
|:---|:---|:---|
| **Legal Name** | **Legal Name** | **Jurisdiction of Formation** |
| Cape HoldCo LLC | Delaware | Delaware |
| Cape Phase 1 Intermediate Holdco LLC | Delaware | Delaware |
| Escalante Desert Resources LLC | Delaware | Delaware |
| Fervo HoldCo LLC | Delaware | Delaware |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the use in this Registration Statement on Form S-1 of our report dated March 30, 2026, relating to the financial statements of Fervo Energy Company. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ DELOITTE & TOUCHE LLP

Houston, Texas

April 17, 2026

## Exhibit 23.2

**Exhibit 23.2**

**DeGolyer and**

**MacNaughton**

**5001 Spring Valley Road**

**Suite 800 East**

**Dallas, Texas 7524**

April 17, 2026

Fervo Energy Company

910 Louisiana Street

Suite 4440

Houston, Texas 77002

Ladies and Gentlemen:

We hereby consent to the references to DeGolyer and MacNaughton, to the inclusion of our estimates of heat initially in place and technically recoverable geothermal resources contained in our reports dated as of June 30, 2024 and as of December 31, 2025, respectively, and to the specific references to DeGolyer and MacNaughton as an independent engineering consulting firm that appear in the Registration Statement on Form S-1 of Fervo Energy Company.

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| |
|:---|
| Very truly yours, |
| /s/ DeGOLYER and MacNAUGHTON |
| DeGOLYER and MacNAUGHTON |
| Texas Registered Engineering Firm F-716 |

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## Exhibit 99.1

**Exhibit 99.1**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

DeGolyer and MacNaughton

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**JUNE 30, 2024**

**on**

**HEAT INITIALLY IN PLACE**

**associated with the**

**PROJECT CAPE AREA**

**prepared for**

**FERVO ENERGY**

------

DeGolyer and MacNaughton

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **Page** |
| **FOREWORD** | 1 |
| Scope of Investigation | 1 |
| Authority | 1 |
| Source of Information | 2 |
| **INTRODUCTION** | 3 |
| **GEOLOGIC AND THERMAL MODEL** | 4 |
| **GEOMECHANICS** | 7 |
| **ESTIMATION METHODOLOGY** | 8 |
| **ESTIMATION OF HEAT INITIALLY IN PLACE** | 10 |
| **ELECTRIC POWER CAPACITY ASSOCIATED WITH ESTIMATED HEAT IN PLACE** | 12 |
| **SUMMARY AND CONCLUSIONS** | 14 |
| **REFERENCES** | 17 |
| **FIGURES** |  |
| Figure 1 - Location Map |  |
| Figure 2 - Fervo Energy Project Cape Area Lease Position and Well Locations |  |
| Figure 3 - Temperature Profiles |  |
| Figure 4 - Complete Bouguer Anomaly |  |
| Figure 5 - Granitic Basement Depth Structure |  |
| Figure 6 - Granitic Basement Depth Structure with Temperature Profile Wells in Red |  |
| Figure 7 - 500 meter TVD Temperature for Low, Best, and High Cases |  |
| Figure 8 - 1,000 meter TVD Temperature for Low, Best, and High Cases |  |
| Figure 9 - 1,500 meter TVD Temperature for Low, Best, and High Cases Figure 10 - 2,000 meter TVD Temperature for Low, Best, and High Cases Figure 11 - 2,500 meter TVD Temperature for Low, Best, and High Cases Figure 12 - 3,000 meter TVD Temperature for Low, Best, and High Cases Figure 13 - Formation Density from p^ Logs |  |
| Figure 14 - Measured and Analog Specific Heat |  |
| Figure 15 - Analog Specific Heat PDF |  |
| Figure 16 - Current Development with Bench 1 and 2 |  |
| Figure 17 - Zero-3,200 meter Developed Low Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |  |
| Figure 18 - Zero-3,200 meter Developed Best Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |  |
| Figure 19 - Zero-3,200 meter Developed High Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |  |

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DeGolyer and MacNaughton

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| |
|:---|
| **TABLE of CONTENTS** - *(Continued)* |
| **FIGURES** - *(Continued)* |
| Figure 20 - 3,200-3,600 meter Developed Low Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |
| Figure21 - 3,200-3,600 meter Developed Best Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |
| Figure 22 - 3,200-3,600 meter Developed High Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |
| Figure 23 - 3,600-4,000 meter Developed Low Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |
| Figure 24 - 3,600-4,000 meter Developed Best Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |
| Figure 25 - 3,600-4,000 meter Developed High Case Net Thickness, Volume-Weighted Average Temperature, and Temperature Thickness |

---

------

DeGolyer and MacNaughton

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**JUNE 30, 2024**

**on**

**HEAT INITIALLY IN PLACE**

**associated with the**

**PROJECT CAPE AREA**

**prepared for**

**FERVO ENERGY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of June 30, 2024, of the extent of the low, best, high, and mean quantities of heat initially in place (HIIP) for the Granitic Basement of the Project Cape Area in the [\*\*\*], Utah. The location of the Project Cape Area is shown in general on Figure 1 and in detail on Figure 2.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy generated from geothermal resources as of June 30, 2024.

Estimates of HIIP should be regarded only as estimates that may change as further heat production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Jack Norbeck, Chief Technology Officer, Fervo Energy.

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DeGolyer and MacNaughton 2

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of

this report was obtained from Fervo Energy. In the preparation of this report we have relied, without independent verification, upon information furnished by Fervo Energy with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

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DeGolyer and MacNaughton 3

**<u>INTRODUCTION</u>**

This report presents the results of the estimation of HIIP associated with the Granitic Basement geothermal resources in the Project Cape Area as defined by Fervo Energy (Figure 1). The Project Cape Area covers **[\*\*\*]** Utah. The primary formation of interest within the Project Cape Area is the Granitic Basement. Secondary formations overlying the granitic basement are potential geothermal resources not characterized in this report. The HIIP estimates herein are associated with all areas thought to contain geothermal resources regardless of potential heat producibility related to potential geologic hazards such as faulting, or poor geomechanical properties that may preclude effective hydraulic fracture stimulation.

Fervo Energy provided well data for the project area (Figure 1) that included comprehensive advanced modern logging suites, core analysis, temperature surveys, and fracture diagnostic tests. Fervo Energy provided a three-dimensional (3-D) geologic model that included formation density, temperature grids, specific heat, and extent of the formations.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, to be applied for electrical power generation. The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The reservoir systems that are subject to enhanced heat extraction techniques at economic rates are referred to as enhanced geothermal systems (EGS). The extraction technique includes placement of multi-stage hydraulically fractured horizontal injector and producer wells in low-porosity and low-permeability geothermal reservoirs. The hydraulic fractures create the pathway for heat exchange between the injection fluid and the geothermal resources, and transfer of heated fluid to the power generating plant.

This report documents the assessment methodology and presents estimates of HIIP.

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DeGolyer and MacNaughton 4

**GEOLOGIC AND THERMAL MODEL**

The Project Cape Area targets a high-temperature geothermal anomaly in the low-permeability Granitic Basement rocks of **[\*\*\*]** Utah (Figure 1). The Granitic Basement rocks are composed of Oligocene and Miocene plutons ranging in composition from granite, granodiorite, diorite, to monzonite, as well as large blocks of Precambrian gneiss (Simmons et al., 2019). Granitic Basement rocks outcrop to the east and are overlain by potential geothermal resource deposits of increasing thickness composed of volcanic, volcaniclastics, and basin-fill sediments to the west. The temperature anomaly is greatest to the east of the Project Cape Area and is associated with the [\*\*\*] hydrothermal system, where temperatures between 250 and 275 degrees Celsius (°C) have been measured at a true vertical depth of 800 meters. Temperature profiles of the area wells are shown on Figure 3.

Based on the available data, a 3-D

geologic model was constructed that encompasses the Fervo Energy lease position for the Project Cape Area to estimate quantities of HIIP. The 3-D geologic model characterizes the depth and extent of the Granitic Basement, mulitple in-situ temperature scenarios, formation density, and specific heat.

The HIIP is the sum of the thermal energy of the rock and in-situ fluids, as shown in Equation 1, Equation 2, and Equation 3.

---

| | |
|:---|:---|
| QT = QR + QW | (1) |
| QR = (A x h) x [𝜌r x cr x (1 - Φ) x (Tres - Tref)] | (2) |
| QW = (A x h) x [𝜌w x cw x Φ x (Tres - Tref)] | (3) |

---

Using the bulk density (𝜌b) obtained from open-hole log data, the total thermal energy was derived based on Equation 4.

QT = (A x h) x 𝜌b x [cr x (1 - Φ) + cw x Φ] x (Tres - Tref) (4)

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DeGolyer and MacNaughton 5

The Granitic Basement rocks of the Project Cape Area have little to no porosity, which allows the HIIP equation to be further simplified to Equation 5.

QT = (A x h) x 𝜌b x cr x (Tres - Tref) (5)

where: QT = total thermal energy, kilojoules (kJ)

QR = thermal energy of the rock, kJ

QW = thermal energy of the pore fluid, kJ

A&nbsp;&nbsp;&nbsp;&nbsp;= area, square meters (m<sup>2</sup>)

h&nbsp;&nbsp;&nbsp;&nbsp;= thickness, meters

Φ&nbsp;&nbsp;&nbsp;&nbsp;= porosity, fraction

𝜌r&nbsp;&nbsp;&nbsp;&nbsp;= rock matrix density, kilograms per cubic meter (kg/m<sup>3</sup>)

𝜌w = pore fluid density, kg/m<sup>d</sup>

𝜌b = formation bulk density, kg/m<sup>3</sup>

cr = rock specific heat capacity, kilojoules per kilogram per degree Celsius (kJ/kg/°C)

cf = pore fluid specific heat capacity, kJ/kg/°C

Tres = average reservoir temperature, °C

Tref <sup>=</sup> reference temperature, °C

The Granitic Basement contacts with the overlying volcanics, volcaniclastics, and basin-fill sediments are constrained by a combination of well logs, gravity, and surface outcrop data. The gravity data (Figure 4) are the primary source of subsurface data away from well control that have been calibrated to the wells to provide a robust source of subsurface data to map the depth structure of the Granitic Basement contact (Figure 5).

The 3-D property distribution of in-situ temperature of the Granitic Basement was based on area wells with the temperature profiles shown on Figure 3 with locations shown on Figure 6. Multiple temperature models were generated to represent high-, best-, and low-temperature scenarios in order to capture the range of uncertainty. The differences between the models increase away from control but are constrained by temperature gradients observed in the data for the high case or typical basin and range temperature gradients for the low case. The best case scenario is the mid-point between the high case and low case scenarios. The high case temperature scenario is constrained by the minimum gradient observed from the [\*\*\*] well. The temperature away from control was not allowed to drop below the temperature derived from this gradient. In the low case

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DeGolyer and MacNaughton 6

scenario, away from control, the gradient and derived temperature were allowed to diminish on trend away from control. Figures 7 through 12 show the low case, best case, and high case temperatures at depths of 500, 1,000, 1,500, 2,000, 2,500, and 3,000 meters true vertical depth (TVD) relative to control.

Below the contact with the formations above, the Granitic Basement rock properties are consistent in the wells where p^, data were acquired. The narrow range of the probability distribution function (PDF) of the Pb open-hole log data below the Granitic Basement contact are shown on Figure 13. Formation density was not distributed as a 3-D model property in favor of sampling directly from the PDF as input for estimates of HIIP.

Specific heat measurements on core were made in nearby wells, but such measurements were not performed at reservoir temperatures. Specific heat varies as a function of rock composition and temperature, as shown on Figure 14 based on measurements reported in Robertson and Hemingway (1995). The measurements from core and cuttings from well 58-32 are shown with a red star. The red box shows the range of temperature that is currently being exploited in the Project Cape Area. The analog data were used to generate an uncertainty distribution matching the reservoir temperature range being developed (Figure 15) for similar rock compositions.

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DeGolyer and MacNaughton 7

**<u>GEOMECHANICS</u>**

The review of the drilling-stress-induced fractures and dipole sonic shear anisotropy logs indicated that the maximum horizontal stress azimuth is between 10 to 25 degrees east of north. The maximum horizontal stress azimuth indicates the azimuth of the hydraulic fracture planes.

The extent of Granitic Basement in the Project Cape Area goes deeper than vertical depths reached by drilling. The development strategy takes into account the vertical extent of the reservoir in the Project Cape Area. The current development plan consists of the drilling and completion of multi-stage hydraulically fractured horizontal wells. The vertical extension of the hydraulic fractures define the upper and lower bounds of the reservoir.

Increasing fracture closure stress in the vertical stress profile can potentially act as a barrier for vertical fracture growth, when the changes in stress magnitude occur in abrupt increments of stress. The fracture stress profiles from the [\*\*\*] wells were reviewed to check for the existence of potential fracture barrier layers within the Granitic Basement in these wells. The fracture closure stress profile data did not indicate the presence of a significant stress barrier to vertical fracture growth.

Stimulation of the [\*\*\*] horizontal wells was observed at the vertical monitor well instrumented with fracture diagnostic fiber optic measurements. The total created hydraulic fracture height was observed to range between 200 and 300 meters. Further review of the fiber optics data indicated that the fracture height was still growing at the time the pumping of the hydraulic fractures stopped. It is conceivable that greater fracture height is technically achievable with adjustments to completion design. These adjustments can be achieved through changing the pumping rate, fracturing fluid type, and amount of pumped volumes. Hydraulic fracture half-height of 200 meters from the horizontal well location was therefore accepted as the extension of stimulated reservoir rock for the purposes of HIIP estimation.

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DeGolyer and MacNaughton 8

**<u>ESTIMATION METHODOLOGY</u>**

This evaluation of the Granitic Basement of the Project Cape Area incorporated available outcrop, gravity, and drilling data to estimate HIIP. To better account for potential reservoir parameter uncertainties associated with the provided limited dataset, the assessment was conducted using probabilistic Monte Carlo simulation methodologies applied to the volumetric method for estimating HIIP. Monte Carlo simulations utilize input parameter ranges rather than discrete inputs.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. Low, best, high, and mean estimates of potential original in-place resources were estimated to address this uncertainty.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, p^, reservoir temperature (Tres), specific heat capcity (c), and depth for the Project Cape Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), high estimate (PIO), and mean estimate (probability-weighted average value) of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (Pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference temperature (Tref). Minimum, mean, and maximum representations were used to

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DeGolyer and MacNaughton 9

statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, p^, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

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DeGolyer and MacNaughton 10

**<u>ESTIMATION OF HEAT INITIALLY IN PLACE</u>**

This evaluation estimated the HIIP and provides details regarding the estimated geothermal resources potentially available through Fervo Energy's development of the Project Cape Area.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources.

Discovered HIIP refers to the quantity of thermal energy that is estimated, as of a given date, to be contained in known accumulations before production. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within the Project Cape Area was classified as discovered.

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal resources accumulations within the Project Cape Area which were drilled at depths of less than 3,200 meters TVD have been designated as the Base Case accumulation and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth above and below the horizontal well (200 meters above and below). The temperature range of 170 to 250 °C is determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.

HIIP has been estimated for the Base Case accumulation and two additional benches at depth below the discovered accumulation. All cases are limited to a temperature range of between 170 and 250 °C. Figure 16 shows the Base Case down to a depth of 3,200 meters TVD, Bench 1 at depths between 3,200 and 3,600 meters TVD, and Bench 2 at depths from 3,600 to 4,000 meters TVD. Net thickness, volume-weighted average temperature, and temperature thickness maps for the low-, best-, and high-temperature scenarios are shown on Figures 17 through 19 for the Base Case, Figures 20 through 22 for Bench 1, and Figures 23 through 25 for Bench 2. The reference temperature is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system

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DeGolyer and MacNaughton 11

design. The estimated gross HIIP, as of June 30, 2024, of the properties evaluated herein are summarized for each case (10<sup>15</sup>J):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** |
| **Granitic Basement** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Temperature Range (°C)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Depth Range (m)** | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** | **Mean Estimate (10**<sup>15</sup>**J)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Base | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-3200 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21185 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26757 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32557 | &nbsp;&nbsp;&nbsp;&nbsp;26815 |
| &nbsp;&nbsp;Bench 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3200-3600 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14181 | &nbsp;&nbsp;&nbsp;&nbsp;18194 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22361 | &nbsp;&nbsp;&nbsp;&nbsp;18234 |
| &nbsp;&nbsp;Bench 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3600-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15325 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18460 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21764 | &nbsp;&nbsp;&nbsp;&nbsp;18510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50730 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63398 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76603 | &nbsp;&nbsp;&nbsp;&nbsp;63560 |

---

Note: Application of any risk factor to HIIP does not equate HIIP with reserves or contingent resources.

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DeGolyer and MacNaughton 12

**<u>ELECTRIC POWER CAPACITY ASSOCIATED WITH ESTIMATED HEAT IN PLACE</u>**

At the request of Fervo Energy, thermal energy associated with the estimated HIIP was converted to electric power capacity. This process is based on the Organic Rankine Cycle (ORC) principle, which transforms thermal energy into electrical power using specifically designed turbines. Efficiency of the designed ORC system and peak power output correction factor were provided by Fervo Energy based on the design specifications guaranteed by the manufacturer company, TURBODEN.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C. Additionally, the peak output correction factor of 1.069 was provided by Fervo Energy based on the design specifications. The peak output correction factor is associated with the correction factor for ambient air dry bulb temperature factor at -8 °C. Based on these design specifications and an assumed project life of 30 years, the estimated electric power capacity associated with gross HIIP, as of June 30, 2024, for the Project Cape Area is summarized below, expressed in megawatts (MW):

**Electric Power Capacity Associated with HIIP**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Granitic Basement** | **Temperature Range (°C)** | **Depth Range (m)** | **Low Estimate (MW)** | **Best Estimate (MW)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**High Estimate (MW)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Mean Estimate (MW)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Base | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-3200 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4668 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5896 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7173 | &nbsp;&nbsp;&nbsp;&nbsp;5908 |
| &nbsp;&nbsp;Bench 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3200-3600 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3125 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4009 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4927 | &nbsp;&nbsp;&nbsp;&nbsp;4018 |
| &nbsp;&nbsp;Bench 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3600-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3377 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4067 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4795 | &nbsp;&nbsp;&nbsp;&nbsp;4078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11178 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13969 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16878 | &nbsp;&nbsp;&nbsp;&nbsp;14005 |

---

Note: Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, a peak output correction factor of 1.069, and a 30-year project life.

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DeGolyer and MacNaughton 13

Based on these design specifications and an assumed project life of 30 years, the estimated mean electric power capacity associated with gross HIIP per rock volume, as of June 30, 2024, for the Project Cape Area is summarized below, expressed in megawatts per cubic kilometers (MW/km<sup>3</sup>):

---

| | | | |
|:---|:---|:---|:---|
| | **Electric Power Capacity Associated with HIIP per Rock Volume** | **Electric Power Capacity Associated with HIIP per Rock Volume** | **Electric Power Capacity Associated with HIIP per Rock Volume** |
|<br>**Granitic Basement** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Temperature Range (°C)** | &nbsp;&nbsp;&nbsp;&nbsp;**Depth**<br>**Range (m)** | **Mean Estimate (MW/km**<sup>3</sup>**)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Base | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;0-3200 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66 |
| &nbsp;&nbsp;Bench 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | 3200-3600 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77 |
| &nbsp;&nbsp;Bench 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | 3600-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;0-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73 |

---

Note: Conversion to electric power assumes 19.5-percent efficiency

of the ORC turbine, a peak output correction factor of 1.069,

and a 30-year project life.

At the request of Fervo Energy, a capacity factor of 91.3-percent was utilized for the geothermal power plant to estimate the potential generation of electric energy associated with the HIIP estimated herein, expressed in megawatt-hours (MWh):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Electrical Energy Associated with HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Electrical Energy Associated with HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Electrical Energy Associated with HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Electrical Energy Associated with HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Electrical Energy Associated with HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Electrical Energy Associated with HIIP** |
| **Granitic Basement** | **Temperature Range (°C)** | &nbsp;&nbsp;&nbsp;&nbsp;**Depth**<br>**Range (m)** | **Low Estimate (MWh)** | **Best Estimate (MWh)** | **High Estimate (MWh)** | **Mean Estimate (MWh)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Base | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-3200 | 1119976891  | 1414549052  | 1721174776  | 1417615309  |
| &nbsp;&nbsp;&nbsp;Bench 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3200-3600 | 749699896  | 961853177 | 1182147900  | 963967837 |
| &nbsp;&nbsp;&nbsp;Bench 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3600-4000 | 810179176  | 975915667  | 1150586597  | 978558992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;170-250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-4000 | 2681917756  | 3351630631  | 4049732819  | 3360195005  |

---

Note: Capacity factor of 91.3-percent was applied.

The estimates of electric power capacity and electrical energy presented herein should only be considered as estimates associated with the thermal energy initially in place. An assessment of the heat recovery factors to evaluate recoverable heat quantities at the wellhead is required to fully assess the electrical potential.

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DeGolyer and MacNaughton 14

**<u>SUMMARY AND CONCLUSIONS</u>**

This report presents estimates of the HIIP for the Granitic Basement of the Project Cape Area, located in **[\*\*\*]** Utah, in the United States in which Fervo Energy has represented it holds an interest.

The estimated gross HIIP, as of June 30, 2024, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Project Cape Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Project Cape Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Project Cape Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Project Cape Area** |
| | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** | **Mean Estimate (10**<sup>15</sup>**J)** |
| Gross HIIP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50730 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63398 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;76603 | &nbsp;&nbsp;&nbsp;&nbsp;63560 |

---

Note: Application of any risk factor to HIIP does not equate HIIP with reserves or contingent resources.

The estimated electric power capacity associated with gross HIIP, as of June 30, 2024, of the properties evaluated herein is summarized as follows, expressed in megawatts (MW):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;**Electric Power Capacity Associated with HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;**Electric Power Capacity Associated with HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;**Electric Power Capacity Associated with HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;**Electric Power Capacity Associated with HIIP** |
| | &nbsp;&nbsp;&nbsp;**Low Estimate (MW)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Best Estimate (MW)** | &nbsp;&nbsp;&nbsp;&nbsp;**High Estimate (MW)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Mean Estimate (MW)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electric Power Capicity Associated with Gross HIIP | &nbsp;&nbsp;&nbsp;&nbsp;11178 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13969 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16878 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14005 |

---

Note: Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, a peak output correction factor of 1.069, and a 30-year project life.

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DeGolyer and MacNaughton 15

The estimated potential generation of electric energy associated with gross HIIP, as of June 30, 2024, of the properties evaluated herein is summarized as follows, expressed in megawatt-hours (MWh):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Electrical Energy Associated with HIIP** | **Electrical Energy Associated with HIIP** | **Electrical Energy Associated with HIIP** | **Electrical Energy Associated with HIIP** |
| | **Low Estimate (MWh)** | **Best Estimate (MWh)** | **High Estimate (MWh)** | **Mean Estimate (MWh)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Potential Electric Energy Associated with Gross HIIP | 2681917756 | 3351630631 | 4049732819 | 3360195005 |

---

Note: Capacity factor of 91.3-percent was applied.

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DeGolyer and MacNaughton 16

DeGolyer and MacNaughton is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo Energy. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

---

| |
|:---|
| Submitted, |
| ![image_0.jpg](image_0.jpg) |
| DeGOLYER and MacNAUGHTON |
| Texas Registered Engineering Firm F-716 |

---

SIGNED: September 24, 2024

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| | |
|:---|:---|
| ![stamp1.jpg](stamp1.jpg) | |
| | ![signature.jpg](signature.jpg) |
| | Dilhan Ilk, P.E. |
| | Executive Vice President |
| | DeGolyer and MacNaughton |

---

## Exhibit 99.2

**Exhibit 99.2**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**MARBLE AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

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**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| **FOREWORD**  | 1 |
| &nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;Source of Information | 2 |
| **INTRODUCTION**  | 4 |
| **DEFINITION of HEAT INITIALLY in PLACE and**  |  |
| **TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**  | 6 |
| **ESTIMATION of HEAT INITIALLY in PLACE**  | 8 |
| **DEFINITION of TECHNICALLY RECOVERABLE**  |  |
| **GEOTHERMAL RESOURCES**  | 11 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY**  | 13 |
| **SUMMARY and CONCLUSIONS**  | 16 |
| **TABLES**  |  |
| &nbsp;&nbsp;&nbsp;Table 1 - List of Properties Evaluated |  |
| &nbsp;&nbsp;&nbsp;Table 2 - Gross Heat Initially in Place |  |
| &nbsp;&nbsp;&nbsp;Table 3 - Gross Technically Recoverable Geothermal Resources |  |
| &nbsp;&nbsp;&nbsp;Table 4 - Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place |  |
| &nbsp;&nbsp;&nbsp;Table 5- Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources |  |

---

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**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**MARBLE AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as

of December 31, 2025, of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the [\*\*\*] Basement located in the Marble Area in **[\*\*\*]** Nevada. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Marble Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature [\*\*\*] Basement. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

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TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. However, the potentially recovered thermal energy resources are discovered. The TRGR estimated herein were based on technical evaluations associated with certain notional potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck, Chief

Technology Officer, Fervo Energy Company.

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of this report was

obtained from Fervo. In the preparation of this report we

have relied, without independent verification,

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upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

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DeGolyer and MacNaughton

**<u>INTRODUCTION</u>**

The Marble Area covers **[\*\*\*]** Nevada. The primary formation of interest within the Marble Area is the [\*\*\*] Basement. Formations overlying the [\*\*\*] Basement do not meet the minimum temperature requirement to qualify as a geothermal resource and were not evaluated in this report. Fervo has represented that it holds 100-percent working interest in the properties located in the Marble Area and evaluated herein.

The Marble Area targets potential high geothermal gradients adjacent to the **[\*\*\*]** area in the low-permeability [\*\*\*] Basement rocks of **[\*\*\*]** Nevada. The [\*\*\*] Basement rocks are composed of phyllite intruded by multiple phases of igneous dikes/sills of Mesozoic and Tertiary ages. The temperature anomaly is greatest to the east of the Marble Area and is associated with the **[\*\*\*]** area, where temperatures of 200 degrees Celsius (°C) have been measured at a true vertical depth (TVD) of 2,000 meters.

Fervo provided data for the Marble Area that included drilling, well logs, gravity, seismic data, and outcrop information. Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Marble Area. The 3-D geologic model characterizes the depth and extent of the [\*\*\*] Basement and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Marble Area, which

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is limited to specific sections of Fervo's acreage position that would be interpreted as a discovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Marble Area was classified as discovered.

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**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90% probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50%

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probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate* - If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10% probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

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**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Marble Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference

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temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, p^, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal resources accumulations encountered at depths of less than 4,000 meters TVD have been discovered and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 °C was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.

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The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Gross HIIP** | **Gross HIIP** | **Gross HIIP** |
|<br>**Temperature Range (°C)** |<br>**Total Vertical Depth Range (meters)** | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;150-330 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9552 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26341 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43873 |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality

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.**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development

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options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

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| | |
|:---|:---|
| | **Gross**<br>**TRGR**<br>**(10**<sup>15</sup>**J)** |
| Low Estimate | 2561 |
| Best Estimate | 9074 |
| High Estimate | 17931 |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

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**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 92.3 percent was utilized to convert thermal energy to net generated electrical energy for the Marble Area.

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Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

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| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**<u>(MW)</u>** | **Potential Gross Electrical <br>Power Capacity <br>Associated with <br>Gross HIIP <br>per Rock Volume <br>(MW/km3)** |
| Low Estimate | 2105 | 66 |
| Best Estimate | 5804 | 73 |
| High Estimate | 9667 | 84 |

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Notes:

&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.&nbsp;&nbsp;&nbsp;&nbsp;Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

&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.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

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Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km<sup>3</sup>), and megawatt hours (MWh):

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| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical** <br>**Power Capacity** <br>**Associated with** <br>**Gross TRGR** <br>**(MW)** | **Potential Net Electrical** <br>**Power Capacity** <br>**Associated with** <br>**Gross TRGR** <br>**per Rock Volume** <br>**(MW/km3)** | **Potential Net** <br>**Generated** <br>**Electrical Energy** <br>**Associated with** <br>**Gross TRGR** <br>**(MWh)** |
| Low Estimate | 395 | 12 | 95829704 |
| Best Estimate | 1399 | 18 | 339472048 |
| High Estimate | 2766 | 24 | 670849270 |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;1. Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;2. Capacity factor of 92.3 percent was applied for estimating potential generated electrical energy.

&nbsp;&nbsp;&nbsp;&nbsp;3. An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Marble Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

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**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located in **[\*\*\*]** Nevada. The properties evaluated herein are associated with the Marble Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

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| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Marble Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Marble Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Marble Area** |
| | **Low**<br>**Estimate**<br>**(10**<sup>15</sup>**J)** | **Best**<br>**Estimate** <br>**(10**<sup>15</sup>**J)** | **High** <br>**Estimate** <br>**(10**<sup>15</sup>**J)** |
| Gross HIIP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9552 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26341 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43873 |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (MW):

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| | | |
|:---|:---|:---|
| | **Potential Net Electrical Power** | **Potential Net Electrical Power** |
| | **Gross**<br>**TRGR**<br>**(10**<sup>15</sup>**J)** | **Capacity Associated with**<br>**Gross TRGR**<br>**(MW)** |
| Low Estimate | 2561 | 395 |
| Best Estimate | 9074 | 1399 |
| High Estimate | 17931 | 2766 |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

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DeGolyer and MacNaughton

DeGolyer and MacNaughton is an independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

Submitted,

![image_02a.jpg](image_02a.jpg)

DeGOLYER and MacNAUGHTON

Texas Registered Engineering Firm F-716

SIGNED: February 17, 2026

![image_11a.jpg](image_11a.jpg)

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| |
|:---|
| ![dilhanlogo1a.jpg](dilhanlogo1a.jpg) |
| Dilhan Ilk, P.E. |
| Executive Vice President |
| DeGolyer and MacNaughton |

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## Exhibit 99.3

**Exhibit 99.3**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**DEGOLYER AND MACNAUGHTON**

5001 SPRING VALLEY ROAD

SUITE 800 EAST

DALLAS, TEXAS 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**SWIFT AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

------

DEGOLYER AND MACNAUGHTON

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| **FOREWORD** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Source of Information | 2 |
| **INTRODUCTION** | 3 |
| **DEFINITION of HEAT INITIALLY in PLACE and** |  |
| **TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES** | 6 |
| **ESTIMATION of HEAT INITIALLY in PLACE** | 7 |
| **DEFINITION of TECHNICALLY RECOVERABLE** |  |
| **GEOTHERMAL RESOURCES** | 9 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY** | 11 |
| **SUMMARY and CONCLUSIONS** | 14 |

---

---

| | |
|:---|:---|
| **TABLES** | |
| &nbsp;&nbsp;&nbsp;Table 1 | List of Properties Evaluated |
| &nbsp;&nbsp;&nbsp;Table 2 | Gross Heat Initially in Place |
| &nbsp;&nbsp;&nbsp;Table 3 | Gross Technically Recoverable Geothermal Resources |
| &nbsp;&nbsp;&nbsp;Table 4 | Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place |
| &nbsp;&nbsp;&nbsp;Table 5 | Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources |

---

------

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**SWIFT AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

Scope of Investigation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of

December 31, 2025, of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the Paleozoic Basement and Tertiary Volcanics located in the Swift Area of **[\*\*\*]** Nevada. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Swift Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature Paleozoic Basement and Tertiary Volcanics. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. However, the potentially recovered thermal energy resources are discovered. The TRGR estimated herein were based on technical evaluations associated with certain notional

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DeGolyer and MacNaughton 2

potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck,

Chief Technology Officer, Fervo Energy Company.

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of this

report was obtained from Fervo. In the preparation of this report we have relied, without independent verification, upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

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DeGolyer and MacNaughton 3

**<u>INTRODUCTION</u>**

The evaluated portion of the Swift Area encompasses **[\*\*\*]** leased by Fervo located in **[\*\*\*]** Nevada. The primary formations of interest within the Swift Area are the Paleozoic Basement and Tertiary Volcanics. Fervo has represented that it holds 100-percent working interest in the properties located in the Swift Area and evaluated herein.

The Swift Area targets potential high geothermal gradients logged in wells within the Paleozoic Basement and Tertiary Volcanics evaluated herein. The Tertiary Volcanics are composed of andesitic lava flows and ash-flow tuffs, are found at a volume-weighted average true vertical depth (TVD) of 2,262 meters, and have a thickness of 9 meters. The Tertiary Volcanics make up a minor portion of the target reservoir volume. The Paleozoic Basement is composed of fine-grained clastic and carbonate sedimentary rocks, are found at a volume-weighted average TVD of 3,376 meters, and have a thickness of 1,097 meters.

Fervo provided data for the Swift Area that included drilling, well logs, gravity, magnetotelluric, and seismic data, and outcrop information. The gravity, magnetotelluric, and seismic data are the primary sources of subsurface data away from well control that have been integrated and calibrated to the wells to provide a robust source of subsurface data to map the depth structure of the Paleozoic Basement and Tertiary Volcanics formation contacts and fault system. Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Swift Area. The 3-D geologic model characterizes the depth and extent of the Paleozoic Basement and Tertiary Volcanics and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Swift Area, which is limited to specific sections of Fervo's acreage position that would be interpreted as a discovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Swift Area was classified as discovered.

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DeGolyer and MacNaughton 4

**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90-percent probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50-percent probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate -* If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10-percent probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

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DeGolyer and MacNaughton 5

**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Swift Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, Pb and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

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DeGolyer and MacNaughton 6

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal resources accumulations encountered at depths of less than 4,000 meters TVD have been discovered and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 degrees Celsius (°C) was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.

The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **<u>Gross HIIP</u>** | **<u>Gross HIIP</u>** | **<u>Gross HIIP</u>** |
|<br>**<u>Temperature Range (°C)</u>** |<br>**<u>Total Vertical Depth Range (meters)</u>** | **<u>Low Estimate (10</u>**<sup>15</sup>**<u>J)</u>** | **<u>Best Estimate (10</u>**<sup>15</sup>**<u>J)</u>** | **<u>High Estimate (10</u>**<sup>15</sup>**<u>J)</u>** |
| **<u>150-330</u>** | **<u>0-4000</u>** | **<u>34362</u>** | **<u>63253</u>** | **<u>92818</u>** |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

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DeGolyer and MacNaughton 7

**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

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DeGolyer and MacNaughton 8

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

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| | |
|:---|:---|
| | **Gross TRGR (10**<sup>15</sup>**J)** |
| Low Estimate | 10728 |
| Best Estimate | 21804 |
| High Estimate | 36223 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. &nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. &nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

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DeGolyer and MacNaughton 9

**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 94.3 percent was utilized to convert thermal energy to net generated electrical energy for the Swift Area.

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DeGolyer and MacNaughton 10

Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

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| | | |
|:---|:---|:---|
| | **Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**(MW)** | **Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**per Rock Volume**<br>**(MW/km**<sup>3</sup>**)** |
| Low Estimate | 7571 | 60 |
| Best Estimate | 13937 | 64 |
| High Estimate | 20451 | 71 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

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DeGolyer and MacNaughton 11

Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km<sup>3</sup>), and megawatt hours (MWh):

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| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical Power Capacity Associated with Gross TRGR (MW)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR per Rock Volume (MW/km**<sup>3</sup>**)** | **Potential Net Generated Electrical Energy Associated with Gross TRGR (MWh)** |
| Low Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1655 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;410038690 |
| Best Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3363 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;833388916 |
| High Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5587 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1384519526 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;1. Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;2. Capacity factor of 94.3 percent was applied for estimating potential generated electrical energy.

&nbsp;&nbsp;&nbsp;&nbsp;3. An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Swift Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

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DeGolyer and MacNaughton 12

**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located in **[\*\*\*]** Nevada. The properties evaluated herein are associated with the Swift Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

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| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Swift Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Swift Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Swift Area** |
| | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| Gross HIIP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34362 | &nbsp;&nbsp;&nbsp;&nbsp;63253 | &nbsp;&nbsp;&nbsp;&nbsp;92818 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (**MW**):

---

| | | |
|:---|:---|:---|
| | **Gross TRGR (10**<sup>15</sup>**J)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR<br>(MW)** |
| Low Estimate | 10728 | 1655 |
| Best Estimate | 21804 | 3363 |
| High Estimate | 36223 | 5587 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

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DeGolyer and MacNaughton 13

DeGolyer and MacNaughton is an

independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

---

| |
|:---|
| Submitted, |
| ![image_03b.jpg](image_03b.jpg) |
| DeGOLYER and MacNAUGHTON |
| Texas Registered Engineering Firm F-716 |

---

SIGNED: February 27, 2026

![image_11.jpg](image_11.jpg)

---

| |
|:---|
| ![image_2b.jpg](image_2b.jpg) |
| Dilhan Ilk, P.E. |
| Executive Vice President |
| DeGolyer and MacNaughton |

---

## Exhibit 99.4

**Exhibit 99.4**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**CORSAC AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

------

Exhibit 99.4

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| **[FOREWORD](#id62a5d6472a743b1b536eb755bb0d9ff_1)**  | 1 |
| &nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;Source of Information | 2 |
| **INTRODUCTION** | 3 |
| **DEFINITION of HEAT INITIALLY in PLACE and**  |  |
| **TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**  | 4 |
| **ESTIMATION of HEAT INITIALLY in PLACE**  | 5 |
| **ESTIMATION of TECHNICALLY RECOVERABLE** |  |
| **GEOTHERMAL RESOURCES**  | 7 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY**  | 9 |
| **[SUMMARY and CONCLUSIONS](#id62a5d6472a743b1b536eb755bb0d9ff_1)**  | 11 |
| **TABLES**  |  |
| &nbsp;&nbsp;&nbsp;Table 1 - List of Properties Evaluated | 6 |
| &nbsp;&nbsp;&nbsp;Table 2 - Gross Heat Initially in Place | 8 |
| &nbsp;&nbsp;&nbsp;Table 3 - Gross Technically Recoverable Geothermal Resources | 9 |
| &nbsp;&nbsp;&nbsp;Table 4 - Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place | 10 |
| &nbsp;&nbsp;&nbsp;Table 5- Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources | 11 |

---

------

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**CORSAC AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of December 31, 2025,

of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the Tertiary Volcanics and Mesozoic Basement rocks located in the Corsac Area of **[\*\*\*]** Nevada. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Corsac Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature Tertiary Volcanics and Mesozoic Basement. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. However, the potentially recovered thermal energy resources are discovered. The TRGR estimated herein were based on technical evaluations associated with certain notional potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed

------

DeGolyer and MacNaughton 2

explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck, Chief

Technology Officer, Fervo Energy Company.

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of this report was

obtained from Fervo. In the preparation of this report we have relied, without independent verification, upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

------

DeGolyer and MacNaughton 3

**<u>INTRODUCTION</u>**

The Corsac Area covers **[\*\*\*]** Nevada. The primary formations of interest within the Corsac Area are the Tertiary Volcanics and Mesozoic Basement. Fervo has represented that it holds 100-percent working interest in the properties located in the Corsac Area and evaluated herein.

The Corsac Area targets potential high geothermal gradients adjacent to the [\*\*\*] geothermal system in the low-permeability Tertiary Volcanics and Mesozoic Basement rocks evaluated herein. The Tertiary Volcanics are composed of rhyolites, andesites, and Tuffs from approximately 200 to 1,700 meters true vertical depth (TVD). The Mesozoic Basement rocks are composed of phyllite, quartzite, argillite, schist, and marble from approximately 1,700 to 2,050 meters TVD. Below 2,050 meters, the Mesozoic Basement is made up of intrusive granite, quartz diorite, and hornblendite. The temperature anomaly is greatest to the northwest of the Corsac Area and is associated with the **[\*\*\*]** geothermal system, where temperatures of 220 degrees Celsius (°C) have been measured at 1,900 meters TVD.

Fervo provided data for the Corsac Area that included drilling, well logs, and gravity, magnetic, magnetotelluric, and outcrop data. The gravity, magnetic, and magnetotelluric data are the primary source of subsurface data away from well control that have been integrated and calibrated to area wells to provide a robust source of subsurface data to map the depth structure of the Tertiary Volcanics and Mesozoic Basement formation contacts and fault system. Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Corsac Area. The 3-D geologic model characterizes the depth and extent of the Tertiary Volcanics and Mesozoic Basement and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the

power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Corsac Area, which is limited to specific sections of Fervo's acreage position that would be interpreted as a discovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Corsac Area was classified as discovered.

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DeGolyer and MacNaughton 4

**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90-percent probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50-percent probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate -* If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10-percent probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

------

DeGolyer and MacNaughton 5

**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Corsac Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (Pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, Pb, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal

------

DeGolyer and MacNaughton 6

resources accumulations encountered at depths of less than 4,000 meters TVD have been discovered and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 °C was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Gross HIIP** | **Gross HIIP** | **Gross HIIP** |
|<br>**Temperature Range (°C)** |<br>**Total Vertical Depth Range (meters)** | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| 150-330 | 0-4000 | 66923 | 124376 | 179705 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

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DeGolyer and MacNaughton 7

**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

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DeGolyer and MacNaughton 8

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | |
|:---|:---|
| | **Gross TRGR (10**<sup>15</sup>**J)** |
| Low Estimate | 23533 |
| Best Estimate | 52607 |
| High Estimate | 88239 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. &nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. &nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

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DeGolyer and MacNaughton 9

**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 92.3 percent was utilized to convert thermal energy to net generated electrical energy for the Corsac Area.Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**(MW)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**per Rock Volume**<br>**(MW/km**<sup>3</sup>**)** |
| Low Estimate<br>Best Estimate<br>High Estimate | 14746<br>27405<br>39595 | 60<br>74<br>90 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

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DeGolyer and MacNaughton 10

Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km3), and megawatt hours (MWh):

---

| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical Power Capacity Associated with Gross TRGR (MW)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR per Rock Volume (MW/km**<sup>3</sup>**)** | **Potential Net Generated Electrical Energy Associated with Gross TRGR (MWh)** |
| Low Estimate<br>Best Estimate<br>High Estimate | 3630<br>8114<br>13610 | 15<br>22<br>31 | 880417276<br>1968128986<br>3.301190692 |

---

Notes:

1. Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

2. Capacity factor of 92.3 percent was applied for estimating potential generated electrical energy.

3. An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Corsac Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

------

DeGolyer and MacNaughton 11

**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located in **[\*\*\*]** Nevada. The properties evaluated herein are associated with the Corsac Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J)

---

| | | | |
|:---|:---|:---|:---|
| | **Corsac Area** | **Corsac Area** | **Corsac Area** |
| | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| Gross HIIP | 66923 | 124376 | 179705 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (MW):

---

| | | |
|:---|:---|:---|
| | **Gross**<br>**TRGR**<br>**(10**<sup>15</sup>**J)** | **Potential Net Electrical Power**<br>**Capacity Associated with**<br>**Gross TRGR**<br>**(MW)** |
| Low Estimate | 23533 | 3630 |
| Best Estimate | 52607 | 8114 |
| High Estimate | 88239 | 13610 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

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DeGolyer and MacNaughton 12

DeGolyer and MacNaughton is an independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

Submitted,

---

| |
|:---|
| ![image_05.jpg](image_05.jpg) |
| DeGOLYER and MacNAUGHTON |
| Texas Registered Engineering Firm F-716 |

---

SIGNED: February 19, 2026

---

| | |
|:---|:---|
| ![image_13.jpg](image_13.jpg) | |
| | ![image_22.jpg](image_22.jpg) |
| | Dilhan Ilk, P.E. |
| | Executive Vice President |
| | DeGolyer and MacNaughton |

---

## Exhibit 99.5

**Exhibit 99.5**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**DeGolyerand MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**KIT AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

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DeGolyer and MacNaughton

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| **FOREWORD** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Source of Information | 3 |
| **INTRODUCTION** | 4 |
| **DEFINITION of HEAT INITIALLY in PLACE and** |  |
| **TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES** | 6 |
| **ESTIMATION of HEAT INITIALLY in PLACE** | 8 |
| **DEFINITION of TECHNICALLY RECOVERABLE** |  |
| **GEOTHERMAL RESOURCES** | 11 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY** | 13 |
| **SUMMARY and CONCLUSIONS** | 16 |

---

---

| | |
|:---|:---|
| **TABLES** | |
| &nbsp;&nbsp;&nbsp;Table 1 | List of Properties Evaluated |
| &nbsp;&nbsp;&nbsp;Table 2 | Gross Heat Initially in Place |
| &nbsp;&nbsp;&nbsp;Table 3 | Gross Technically Recoverable Geothermal Resources |
| &nbsp;&nbsp;&nbsp;Table 4 | Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place |
| &nbsp;&nbsp;&nbsp;Table 5 | Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources |

---

------

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**KIT AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of December 31, 2025,

of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the Mesozoic Metasediments and Intrusives, Tertiary Volcanics, and Quaternary Basin-fill Sediments located in the Kit Area of **[\*\*\*]** Nevada. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Kit Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature Mesozoic Metasediments and Intrusives, Tertiary Volcanics, and Quaternary Basin-fill Sediments. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

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DeGolyer and MacNaughton

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. However, the potentially recovered thermal energy resources are discovered. The TRGR estimated herein were based on technical evaluations associated with certain notional potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck, Chief

Technology Officer, Fervo Energy Company.

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of this report was

obtained from Fervo. In the preparation of this report we have relied, without independent verification, upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

------

DeGolyer and MacNaughton

**<u>INTRODUCTION</u>**

The evaluated portion of the Kit Area encompasses approximately **[\*\*\*]** leased by Fervo located in **[\*\*\*]** Nevada. The primary formations of interest within the Kit Area are the Mesozoic Metasediments and Intrusives, Tertiary Volcanics, and Quaternary Basin-fill Sediments. Fervo has represented that it holds 100-percent working interest in the properties located in the Kit Area and evaluated herein.

The Kit Area targets potential high geothermal gradients logged in wells within the Mesozoic Metasediments and Intrusives, Tertiary Volcanics, and Quaternary Basin-fill Sediments evaluated herein. The Quaternary sediments are composed of basin-filling sediments from the surface to a maximum true vertical depth (TVD) of 2,170 meters. The Teritiary volcanics include an assortment of flow basalts, scoria, and volcaniclastic sediments interbedded with siltstones and welded tuffs from 942 to 2,630 meters TVD. The Mesozoic metasediments and intrusives are composed of intrusive granodiorite into metasedimentary rocks that include metamorphosed oceanic crust, quartzites, carbonates, phyllites, and marine sediments from 450 to more than 3,810 meters TVD.

Fervo provided data for the Kit Area that included drilling, well logs, gravity, and seismic data, and outcrop information. The gravity and seismic data are the primary sources of subsurface data away from well control that have been integrated and calibrated to the wells to provide a robust source of subsurface data to map the depth structure of the Mesozoic Metasediments and Intrusives, Tertiary Volcanics, and Quaternary Basin-fill Sediments as well as the formation contacts and fault system. Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Kit Area. The 3-D geologic model characterizes the depth and extent of the Mesozoic Metasediments and Intrusives, Tertiary Volcanics, and Quaternary Basin-fill Sediments and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Kit Area, which is limited to specific sections of Fervo's acreage position that would be interpreted as a discovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of

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DeGolyer and MacNaughton

potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Kit Area was classified as discovered.

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DeGolyer and MacNaughton

**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90-percent probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50-percent probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate -* If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10-percent probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

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DeGolyer and MacNaughton

**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Kit Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, Pb, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter

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DeGolyer and MacNaughton

variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal resources accumulations encountered at depths of less than 4,000 meters TVD have been discovered and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 degrees Celsius (°C) was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.

The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** |
|<br>**Temperature Range (°C)** |<br>**Total Vertical Depth Range (meters)** | **Low Estimate (10**<sup>15</sup>**J)** | **Best** <br>**Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| 150-330 | 0-4000 | 66292 | 110138 | 151173 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

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DeGolyer and MacNaughton

**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development

options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

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DeGolyer and MacNaughton

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | |
|:---|:---|
| | **Gross TRGR (10**<sup>15</sup>**J)** |
| Low Estimate<br>Best Estimate<br>High Estimate | 23993<br>45969<br>73163 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

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DeGolyer and MacNaughton

**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 91.6 percent was utilized to convert thermal energy to net generated electrical energy for the Kit Area.Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Gross Electrical Power Capacity Associated with Gross HIIP <u>(MW)</u>** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Gross Electrical Power Capacity Associated with Gross HIIP per Rock Volume <u>(MW/km</u>**<sup>3</sup>**<u>)</u>** |
| Low Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14606 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63 |
| Best Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24267 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74 |
| High Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33309 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;86 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

2&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

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Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km<sup>3</sup>), and megawatt hours (MWh):

---

| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical Power Capacity Associated with Gross TRGR (MW)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR per Rock Volume (MW/km**<sup>3</sup>**)** | **Potential Net Generated Electrical Energy Associated with Gross TRGR (MWh)** |
| Low Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3700 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;890800239 |
| Best Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7090 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1706747932 |
| High Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11284 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2716388698 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;1. Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;2. Capacity factor of 91.6 percent was applied for estimating potential generated electrical energy.

&nbsp;&nbsp;&nbsp;&nbsp;3. An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Kit Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

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DeGolyer and MacNaughton

**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located in **[\*\*\*]** Nevada. The properties evaluated herein are associated with the Kit Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

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| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Kit Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Kit Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Kit Area** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Low**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Estimate**<br>**(10**<sup>15</sup>**J)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Best**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Estimate**<br>**(10**<sup>15</sup>**J)** | &nbsp;&nbsp;**High**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Estimate**<br>**(10**<sup>15</sup>**J)** |
| Gross HIIP | 66292 | 110138 | 151173 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (MW):

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross TRGR (10**<sup>15</sup>**J)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Net Electrical Power Capacity Associated with Gross TRGR <u>(MW)</u>** |
| Low Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23993 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3700 |
| Best Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45969 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7090 |
| High Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73163 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11284 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

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DeGolyer and MacNaughton

DeGolyer and MacNaughton is an

independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

---

| |
|:---|
| Submitted, |
| /s/ DeGOLYER and MacNAUGHTON |
| DeGOLYER and MacNAUGHTON |
| Texas Registered Engineering Firm F-716 |

---

SIGNED: February 27, 2026

![image_02b.jpg](image_02b.jpg)

---

| |
|:---|
| /s/ Dilhan Ilk, P.E. |
| Dilhan Ilk, P.E. |
| Executive Vice President |
| DeGolyer and MacNaughton |

---

## Exhibit 99.6

**Exhibit 99.6**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**DEGOLYER AND MACNAUGHTON**

5001 SPRING VALLEY ROAD

SUITE 800 EAST

DALLAS, TEXAS 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**STAR AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

------

DEGOLYER AND MACNAUGHTON

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| **FOREWORD** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Source of Information | 3 |
| **INTRODUCTION** | 4 |
| **DEFINITION of HEAT INITIALLY in PLACE and** |  |
| **TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES** | 6 |
| **ESTIMATION of HEAT INITIALLY in PLACE** | 8 |
| **DEFINITION of TECHNICALLY RECOVERABLE** |  |
| **GEOTHERMAL RESOURCES** | 11 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY** | 13 |
| **SUMMARY and CONCLUSIONS** | 16 |

---

---

| | |
|:---|:---|
| **TABLES** | |
| &nbsp;&nbsp;&nbsp;Table 1 | List of Properties Evaluated |
| &nbsp;&nbsp;&nbsp;Table 2 | Gross Heat Initially in Place |
| &nbsp;&nbsp;&nbsp;Table 3 | Gross Technically Recoverable Geothermal Resources |
| &nbsp;&nbsp;&nbsp;Table 4 | Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place |
| &nbsp;&nbsp;&nbsp;Table 5 | Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources |

---

------

**DEGOLYER AND MACNAUGHTON**

5001 SPRING VALLEY ROAD

SUITE 800 EAST

DALLAS, TEXAS 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**STAR AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of

December 31, 2025, of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the **[\*\*\*]** Basalt and interbedded sediments, **[\*\*\*]** Volcanics, and **[\*\*\*]** Batholith located in the Star Area **[\*\*\*]** Idaho. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Star Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature **[\*\*\*]** Basalt and interbedded sediments, **[\*\*\*]** Volcanics, and **[\*\*\*]** Batholith. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal

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DEGOLYER AND MACNAUGHTON

energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. However, the potentially recovered thermal energy resources are discovered. The TRGR estimated herein were based on technical evaluations associated with certain notional potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck,

Chief Technology Officer, Fervo Energy Company.

------

DEGOLYER AND MACNAUGHTON

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of this report

was obtained from Fervo. In the preparation of this report we have relied, without independent verification, upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

------

DEGOLYER AND MACNAUGHTON

**<u>INTRODUCTION</u>**

The evaluated portion of the Star Area encompasses **[\*\*\*]** leased by Fervo located **[\*\*\*]** Idaho. The primary formations of interest within the Star Area are the **[\*\*\*]** Basalt and interbedded sediments, **[\*\*\*]** Volcanics, and **[\*\*\*]** Batholith. Fervo has represented that it holds 100-percent working interest in the properties located in the Star Area and evaluated herein.

The Star Area targets potential high geothermal gradients logged in the [\*\*\*] well within the **[\*\*\*]** Basalt and interbedded sediments, **[\*\*\*]** Volcanics, and **[\*\*\*]** Batholith evaluated herein. The **[\*\*\*]** Basalt and interbedded sediments are composed of thick basalt flows with interbedded shale and minor sandstones and tuffs, are found at a volume-weighted average true vertical depth (TVD) of 2,268 meters, and have a thickness of 202 meters. The **[\*\*\*]** Volcanics are composed of silicic tuffs with interbedded basalts and claystones, are found at a volume-weighted average TVD of 2,757 meters, and have a thickness of 839 meters. The **[\*\*\*]** Batholith is granitic basement is composed of granodiorite, quartz monzonite, minor granite diorite, and dacite with some miocene gabbro and diabase dikes. The **[\*\*\*]** Batholith is found at a volume-weighted average TVD of 3,533 meters and has a thickness of 874 meters within the temperature and depth window for development.

Fervo provided data for the Star Area that included well logs, gravity, magnetotelluric, and outcrop data. The gravity, magnetotelluric, and well data are the primary sources of subsurface data that have been integrated to provide a source of subsurface data to map the depth structure of the **[\*\*\*]** Basalt and interbedded sediments, **[\*\*\*]** Volcanics, and **[\*\*\*]** Batholith as well as the formation contacts and fault system. Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Star Area. The 3-D geologic model characterizes the depth and extent of the **[\*\*\*]** Basalt and interbedded sediments, **[\*\*\*]** Volcanics, and **[\*\*\*]** Batholith and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with

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DEGOLYER AND MACNAUGHTON

either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Star Area, which is limited to specific sections of Fervo's acreage position that would be interpreted as a discovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Star Area was classified as discovered.

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DEGOLYER AND MACNAUGHTON

**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90-percent probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50-percent

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DEGOLYER AND MACNAUGHTON

probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate -* If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10-percent probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

------

DEGOLYER AND MACNAUGHTON

**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Star Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference

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DEGOLYER AND MACNAUGHTON

temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, p^, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal resources accumulations encountered at depths of less than 4,000 meters TVD have been discovered and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 degrees Celsius (°C) was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.

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DEGOLYER AND MACNAUGHTON

The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Gross HIIP** | **Gross HIIP** | **Gross HIIP** |
|<br>**Temperature Range (°C)** |<br>**Total Vertical Depth Range (meters)** | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| 150-330 | 0-4000 | 21463 | 26407 | $34195.00 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

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DEGOLYER AND MACNAUGHTON

**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development

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DEGOLYER AND MACNAUGHTON

options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | |
|:---|:---|
| | **Gross TRGR (10**<sup>15</sup>**J)** |
| Low Estimate | 8329 |
| Best Estimate | 11597 |
| High Estimate | 16632 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

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DEGOLYER AND MACNAUGHTON

**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 92.7 percent was utilized to convert thermal energy to net generated electrical energy for the Star Area.

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DEGOLYER AND MACNAUGHTON

Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

---

| | | |
|:---|:---|:---|
| | **Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**(MW)** | **Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**per Rock Volume**<br>**(MW/km**<sup>3</sup>**)** |
| Low Estimate | 4729 | 70 |
| Best Estimate | 5818 | 80 |
| High Estimate | 7534 | 90 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

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DEGOLYER AND MACNAUGHTON

Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km<sup>3</sup>), and megawatt hours (MWh):

---

| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical Power Capacity Associated with Gross TRGR (MW)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR per Rock Volume (MW/km**<sup>3</sup>**)** | **Potential Net Generated Electrical Energy Associated with Gross TRGR (MWh)** |
| Low Estimate | 1285 | 19 | 312942951 |
| Best Estimate | 1789 | 24 | 435751247 |
| High Estimate | 2565 | 30 | 624916209 |

---

Notes:

1. Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

2. Capacity factor of 92.7 percent was applied for estimating potential generated electrical energy.

3. An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Star Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

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DEGOLYER AND MACNAUGHTON

**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located **[\*\*\*]** Idaho. The properties evaluated herein are associated with the Star Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | |
|:---|:---|:---|:---|
| | **Star Area** | **Star Area** | **Star Area** |
| | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| Gross HIIP | 21463 | 26407 | 34195 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (MW):

---

| | | |
|:---|:---|:---|
| | **Gross**<br>**TRGR**<br>**(10**<sup>15</sup>**J)** | **Potential Net Electrical Power<br>Capacity Associated with<br>Gross TRGR<br>(MW)** |
| Low Estimate | 8329 | 1285 |
| Best Estimate | 11597 | 1789 |
| High Estimate | 16632 | 2565 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

------

DEGOLYER AND MACNAUGHTON

DeGolyer and MacNaughton is an independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

---

| |
|:---|
| Submitted, |
| ![exhibit9961aa.jpg](exhibit9961aa.jpg) |
| DeGOLYER and MacNAUGHTON<br>Texas Registered Engineering Firm F-716 |

---

SIGNED: February 27, 2026

![exhibit9962aa.jpg](exhibit9962aa.jpg)

---

| |
|:---|
| ![exhibit9963aa.jpg](exhibit9963aa.jpg) |
| Dilhan Ilk, P.E.<br>Executive Vice President<br>DeGolyer and MacNaughton |

---

## Exhibit 99.7

**Exhibit 99.7**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and** 

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**FENNEC AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

------

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| **[FOREWORD](#i3d00fabd28be4a978c0754abc4d74d62_1)**  | 1 |
| &nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;Source of Information | 2 |
| **INTRODUCTION** | 3 |
| **DEFINITION of HEAT INITIALLY in PLACE and**  |  |
| **TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**  | 4 |
| **ESTIMATION of HEAT INITIALLY in PLACE**  | 5 |
| **ESTIMATION of TECHNICALLY RECOVERABLE** |  |
| **GEOTHERMAL RESOURCES**  | 7 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY**  | 9 |
| **[SUMMARY and CONCLUSIONS](#i3d00fabd28be4a978c0754abc4d74d62_1)**  | 11 |
| **TABLES**  |  |
| &nbsp;&nbsp;&nbsp;Table 1 - List of Properties Evaluated | 6 |
| &nbsp;&nbsp;&nbsp;Table 2 - Gross Heat Initially in Place | 8 |
| &nbsp;&nbsp;&nbsp;Table 3 - Gross Technically Recoverable Geothermal Resources | 9 |
| &nbsp;&nbsp;&nbsp;Table 4 - Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place | 10 |
| &nbsp;&nbsp;&nbsp;Table 5- Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources | 11 |

---

------

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**FENNEC AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of December 31, 2025,

of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the Cenozoic Sediments and Volcanics and Paleozoic Sediments located in the Fennec Area of **[\*\*\*]** Nevada. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Fennec Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature Cenozoic Sediments and Volcanics and Paleozoic Sediments. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. However, the potentially recovered thermal energy resources are discovered. The TRGR estimated herein were based on technical evaluations associated with certain notional potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a

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DeGolyer and MacNaughton

means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck, Chief

Technology Officer, Fervo Energy Company.

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of this report was

obtained from Fervo. In the preparation of this report we have relied, without independent verification, upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

------

DeGolyer and MacNaughton

**<u>INTRODUCTION</u>**

The evaluated portion of the Fennec Area encompasses approximately **[\*\*\*]** leased by Fervo located in **[\*\*\*]** Nevada. The primary formations of interest within the Fennec Area are the Cenozoic Sediments and Volcanics and Paleozoic Sediments. Fervo has represented that it holds 100-percent working interest in the properties located in the Fennec Area and evaluated herein.

The Fennec Area targets potential high geothermal gradients logged in wells within the Cenozoic Sediments and Volcanics and Paleozoic Sediments evaluated herein. The Cenozoic Sediments and Volcanics are composed of tuffs with some rhyolite and basalt, and lacustrine volcaniclastic sediments intercalated with shale, breccia, sandstone, and siltstone, are found at a volume-weighted average true vertical depth (TVD) of 3,295 meters, and have a thickness of 434 meters. The Paleozoic Sediments are composed of dolomite and metasediments, are found at a volume-weighted average TVD of 3,538 meters, and have a thickness of 646 meters.

Fervo provided data for the Fennec Area that included drilling, well logs, gravity and seismic data, and outcrop information. The gravity and seismic data are the primary sources of subsurface data away from well control that have been integrated and calibrated to the wells to provide a robust source of subsurface data to map the depth structure of the Cenozoic Sediments and Volcanics and Paleozoic Sediments as well as the formation contacts and fault system. Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Fennec Area. The 3-D geologic model characterizes the depth and extent of the Cenozoic Sediments and Volcanics and Paleozoic Sediments and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Fennec Area, which is limited to specific sections of Fervo's acreage position that would be interpreted as a discovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Fennec Area was classified as discovered.

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DeGolyer and MacNaughton

**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90-percent probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50-percent probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate -* If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10-percent probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

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DeGolyer and MacNaughton

**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Fennec Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, Pb, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal

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DeGolyer and MacNaughton

resources accumulations encountered at depths of less than 4,000 meters TVD have been discovered and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 degrees Celsius (°C) was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** |
|<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Temperature Range** <br>**(°C)** |<br>**Total Vertical Depth Range** <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(meters)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Low Estimate** <br>**(10**<sup>15</sup>**J)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Best Estimate** <br>**(10**<sup>15</sup>**J)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**High Estimate** <br>**(10**<sup>15</sup>**J)** |
| &nbsp;&nbsp;&nbsp;&nbsp;150-330 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37716 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70916 | &nbsp;&nbsp;&nbsp;&nbsp;124841 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

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DeGolyer and MacNaughton

**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

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DeGolyer and MacNaughton

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | |
|:---|:---|
| | **Gross TRGR (10**<sup>15</sup>**J)** |
| Low Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11550 |
| Best Estimate | 25085 |
| High Estimate | 52236 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. &nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. &nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

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DeGolyer and MacNaughton

**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 95 percent was utilized to convert thermal energy to net generated electrical energy for the Fennec Area.

Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**<u>(MW)</u>** | **Potential Gross Electrical <br>Power Capacity <br>Associated with <br>Gross HIIP <br>per Rock Volume <br>(MW/km3)** |
| Low Estimate | 8310 | 60 |
| Best Estimate | 15625 | 65 |
| High Estimate | 27507 | 78 |

---

Notes:

&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.&nbsp;&nbsp;&nbsp;&nbsp;Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

&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.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

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DeGolyer and MacNaughton

Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km<sup>3</sup>), and megawatt hours (MWh):

---

| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical** <br>**Power Capacity** <br>**Associated with** <br>**Gross TRGR** <br>**(MW)** | **Potential Net Electrical** <br>**Power Capacity** <br>**Associated with** <br>**Gross TRGR** <br>**per Rock Volume** <br>**(MW/km3)** | **Potential Net** <br>**Generated** <br>**Electrical Energy** <br>**Associated with** <br>**Gross TRGR** <br>**(MWh)** |
| Low Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1781 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;444760327 |
| Best Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3869 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;965917186 |
| High Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8057 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2011405125 |

---

Notes:

1. &nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

2. &nbsp;&nbsp;&nbsp;&nbsp;Capacity factor of 95 percent was applied for estimating potential generated electrical energy.

3. &nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Fennec Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

------

DeGolyer and MacNaughton

**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located in **[\*\*\*]** Nevada. The properties evaluated herein are associated with the Fennec Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fennec Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fennec Area** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Fennec Area** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Low Estimate** <br>**(10**<sup>15</sup>**J)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Best Estimate** <br>**(10**<sup>15</sup>**J)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**High Estimate** <br>**(10**<sup>15</sup>**J)** |
| Gross HIIP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37716 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70916 | &nbsp;&nbsp;&nbsp;&nbsp;124841 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (MW):

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross**<br>**TRGR**<br>**(10**<sup>15</sup>**J)** | **Potential Net Electrical** <br>**Power Capacity** <br>**Associated with** <br>**Gross TRGR** <br>**(MW)** |
| Low Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11550 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1781 |
| Best Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25085 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3869 |
| High Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52236 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8057 |

---

Notes:

&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

&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.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

&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.&nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

------

DeGolyer and MacNaughton

DeGolyer and MacNaughton is an independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

Submitted,

![degolyerandmacnaughtonsiga.jpg](degolyerandmacnaughtonsiga.jpg)

DeGOLYER and MacNAUGHTON

Texas Registered Engineering Firm F-716

SIGNED: February 27, 2026

![stampb.jpg](stampb.jpg)

---

| |
|:---|
| ![dilhanlogob.jpg](dilhanlogob.jpg) |
| Dilhan Ilk, P.E. |
| Executive Vice President |
| DeGolyer and MacNaughton |

---

## Exhibit 99.8

**Exhibit 99.8**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and** 

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**BLANFORD AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

------

DeGolyer and MacNaughton

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| **FOREWORD**  | 1 |
| &nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;Source of Information | 2 |
| **INTRODUCTION** | 4 |
| **DEFINITION of HEAT INITIALLY in PLACE and**  |  |
| **TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**  | 6 |
| **ESTIMATION of HEAT INITIALLY in PLACE**  | 8 |
| **DEFINITION of TECHNICALLY RECOVERABLE**  |  |
| **GEOTHERMAL RESOURCES**  | 11 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY**  | 13 |
| **[SUMMARY and CONCLUSIONS](#i7f20a9e7d7ea417e9505303ebb276381_1)**  | 16 |
| **TABLES**  |  |
| &nbsp;&nbsp;&nbsp;Table 1 - List of Properties Evaluated |  |
| &nbsp;&nbsp;&nbsp;Table 2 - Gross Heat Initially in Place |  |
| &nbsp;&nbsp;&nbsp;Table 3 - Gross Technically Recoverable Geothermal Resources |  |
| &nbsp;&nbsp;&nbsp;Table 4 - Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place |  |
| &nbsp;&nbsp;&nbsp;Table 5- Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources |  |

---

------

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**BLANFORD AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of

December 31, 2025, of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the Quaternary-Tertiary Sediments and Volcanics and Cambrian Basement located in the Blanford Area of **[\*\*\*]** Utah. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Blanford Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature Quaternary-Tertiary Sediments and Volcanics and Cambrian Basement. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

------

DeGolyer and MacNaughton 2

TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. However, the potentially recovered thermal energy resources are discovered. The TRGR estimated herein were based on technical evaluations associated with certain notional potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck, Chief

Technology Officer, Fervo Energy Company.

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of

this report was obtained from Fervo. In the preparation of this report we have relied, without independent verification,

------

DeGolyer and MacNaughton 3

upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

------

DeGolyer and MacNaughton 4

**<u>INTRODUCTION</u>**

The Blanford Area covers **[\*\*\*]** Utah. The primary formations of interest within the Blanford Area are the Quaternary-Tertiary Sediments and Volcanics and Cambrian Basement. Fervo has represented that it holds 100-percent working interest in the properties located in the Blanford Area and evaluated herein.

The Blanford Area targets potential high geothermal gradients logged in wells within the Quaternary-Tertiary Sediments and Volcanics and Cambrian Basement rocks evaluated herein. The Quaternary-Tertiary Sediments and Volcanics are composed of mudstones, sandstones, shale, and some salt from the surface to approximately 3,000 meters true vertical depth (TVD) in the thickest part of the basin. The Cambrian Basement is composed of limestone, shale, and quartzite below 3,000 meters TVD. The highest gradients and temperature anomaly are found in the center of the Blanford Area, where temperatures of 290 degrees Celsius (°C) have been measured at 3,400 meters TVD in the [\*\*\*] well.

Fervo provided data for the Blanford Area that included drilling, well logs, gravity, magnetic, and seismic data, and outcrop information. The gravity, magnetic, and seismic data are the primary sources of subsurface data away from well control that have been integrated and calibrated to the wells to provide a robust source of subsurface data to map the depth structure of the Quaternary-Tertiary Sediments and Volcanics and Cambrian Basement formation contacts and fault system. Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Blanford Area. The 3-D geologic model characterizes the depth and extent of the Quaternary-Tertiary Sediments and Volcanics and Cambrian Basement and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the

------

DeGolyer and MacNaughton 5

power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Blanford Area, which is limited to specific sections of Fervo's acreage position that would be interpreted as a discovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Blanford Area was classified as discovered.

------

DeGolyer and MacNaughton 6

**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90-percent probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50-percent

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DeGolyer and MacNaughton 7

probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate* - If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10-percent probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

------

DeGolyer and MacNaughton 8

**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Blanford Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference

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DeGolyer and MacNaughton 9

temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, p^, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal resources accumulations encountered at depths of less than 4,000 meters TVD have been discovered and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 °C was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.

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DeGolyer and MacNaughton 10

The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** |
|<br>**Temperature Range (°C)** |<br>**Total Vertical Depth Range (meters)** | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| &nbsp;&nbsp;&nbsp;&nbsp;150-330 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92287 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;155430 | &nbsp;&nbsp;&nbsp;&nbsp;201212 |

---

Notes:

&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

3&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

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DeGolyer and MacNaughton 11

**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development

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DeGolyer and MacNaughton 12

options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | |
|:---|:---|
| | **Gross TRGR (10**<sup>15</sup>**J)** |
| Low Estimate<br>Best Estimate<br>High Estimate | 35967<br>70285<br>103214 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

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DeGolyer and MacNaughton 13

**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 91.4 percent was utilized to convert thermal energy to net generated electrical energy for the Blanford Area.

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DeGolyer and MacNaughton 14

Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

---

| | | |
|:---|:---|:---|
| | **Potential Gross Electrical Power Capacity Associated with Gross HIIP <br>(MW)** | **Potential Gross Electrical Powe Capacity Associated with Gross HIIP per Rock Volume (MW/km**<sup>3</sup>**)** |
| Low Estimate | 20334 | 68 |
| Best Estimate | 34247 | 84 |
| High Estimate | 44334 | 99 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

------

DeGolyer and MacNaughton 15

Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km<sup>3</sup>), and megawatt hours (MWh):

---

| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical Power Capacity Associated with Gross TRGR (MW)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR per Rock Volume (MW/km3)** | **Potential Net Generated Electrical Energy Associated with Gross TRGR (MWh)** |
| Low Estimate | 5547 | 19 | 1332454538 |
| Best Estimate | 10840 | 27 | 2603847950 |
| High Estimate | 15919 | 36 | 3823765611 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Capacity factor of 91.4 percent was applied for estimating potential generated electrical energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Blanford Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

------

DeGolyer and MacNaughton 16

**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located in [\*\*\*] Utah. The properties evaluated herein are associated with the Blanford Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | |
|:---|:---|:---|:---|
| | **Blanford Area** | **Blanford Area** | **Blanford Area** |
| | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| Gross HIIP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92287 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;155430 | &nbsp;&nbsp;&nbsp;&nbsp;201212 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.Application of any risk factor to HIIP does not equate HIIP with TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (MW):

---

| | | |
|:---|:---|:---|
| | **Gross**<br>**TRGR**<br>**(10**<sup>15</sup>**J)** | **Potential Net Electrical Power<br>Capacity Associated with<br>Gross TRGR<br>(MW)** |
| Low Estimate | 35967 | 5547 |
| Best Estimate | 70285 | 10840 |
| High Estimate | 103214 | 15919 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

------

DeGolyer and MacNaughton 17

DeGolyer and MacNaughton is an independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

---

| |
|:---|
| Submitted, |
| ![image_04.jpg](image_04.jpg) |
| DeGOLYER and MacNAUGHTON |
| Texas Registered Engineering Firm F-716 |

---

SIGNED: February 19, 2026

![image_12b.jpg](image_12b.jpg)

---

| |
|:---|
| ![image_21.jpg](image_21.jpg) |
| Dilhan Ilk, P.E. |
| Executive Vice President |
| DeGolyer and MacNaughton |

---

## Exhibit 99.9

**Exhibit 99.9**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

![a2026-03x27_13x42x43.jpg](a2026-03x27_13x42x43.jpg)

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**ASPEN AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

------

DEGOLYER AND MACNAUGHTON

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **Page** |
| **[FOREWORD](#id058765ce8eb456b856d75e691d0f8e6_1)**  | 1 |
| &nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;Source of Information | 4 |
| **INTRODUCTION**  |  |
| **DEFINITION of HEAT INITIALLY in PLACE and TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**  | 6 |
| **[ESTIMATION of HEAT INITIALLY in PLACE](#id058765ce8eb456b856d75e691d0f8e6_1)**  | 8 |
| **DEFINITION of TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**  | 11 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY**  | 13 |
| **SUMMARY and CONCLUSIONS**  | 16 |

---

---

| | |
|:---|:---|
| **TABLES** | |
| &nbsp;&nbsp;&nbsp;Table 1 - | List of Properties Evaluated |
| &nbsp;&nbsp;&nbsp;Table 2 - | Gross Heat Initially in Place |
| &nbsp;&nbsp;&nbsp;Table 3 - | Gross Technically Recoverable Geothermal Resources |
| &nbsp;&nbsp;&nbsp;Table 4 - | Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place |
| &nbsp;&nbsp;&nbsp;Table 5 - | Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources |

---

------

![a2026-03x27_13x42x43.jpg](a2026-03x27_13x42x43.jpg)

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**ASPEN AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of

December 31, 2025, of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the Paleozoic to Cenozoic Clastics, Volcanics, and Carbonates located in the Aspen Area of **[\*\*\*]** Nevada. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Aspen Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature Paleozoic to Cenozoic Clastics, Volcanics, and Carbonates. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. However, the potentially recovered thermal energy resources are discovered. The TRGR estimated herein were based on technical evaluations associated with certain notional

------

potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck,

Chief Technology Officer, Fervo Energy Company.

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of this report

was obtained from Fervo. In the preparation of this report we have relied, without independent verification, upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

**<u>INTRODUCTION</u>**

The evaluated portion of the Aspen Area encompasses approximately **[\*\*\*]** leased by Fervo located in **[\*\*\*]** Nevada. The primary formations of interest within the Aspen Area are the Paleozoic to Cenozoic Clastics, Volcanics, and Carbonates. Fervo has represented that it holds 100-percent working interest in the properties located in the Aspen Area and evaluated herein.

The Aspen Area targets potential high geothermal gradients logged in wells within the Paleozoic to Cenozoic Clastics, Volcanics, and Carbonates evaluated herein. The Paleozoic to Cenozoic Clastics, Volcanics, and Carbonates are composed of conglomerates, siltsones, sandstones, tuffs, and carbonates, are found at a volume-weighted average true vertical depth (TVD) of 3,307 meters, and have a thickness of 1,461 meters.

Fervo provided data for the Aspen Area that included drilling, well logs, gravity, and outcrop data. The gravity data are the primary sources of subsurface data away from outcrop and well control that have been integrated and calibrated to the wells to provide a source of subsurface data to map the depth structure of the Paleozoic to Cenozoic Clastics, Volcanics, and Carbonates as well as the formation contacts and fault system.

------

DeGolyer and MacNaughton

Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Aspen Area. The 3-D geologic model characterizes the depth and extent of the Paleozoic to Cenozoic Clastics, Volcanics, and Carbonates and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Aspen Area, which is limited to specific sections of Fervo's acreage position that would be interpreted as a discovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Aspen Area was classified as discovered.

**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report

------

are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90-percent probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50-percent probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate* - If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10-percent probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Aspen Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional

------

DeGolyer and MacNaughton

data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, p^, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal resources accumulations encountered at depths of less than 4,000 meters TVD have been discovered and are limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 degrees Celsius (°C) was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Gross HIIP** | **Gross HIIP** | **Gross HIIP** |
|<br>**Temperature Range** <br>**(°C)** |<br>**Total Vertical Depth Range (meters)** | **Low** <br>**Estimate** <br>**(10**<sup>15</sup>**J)** | **Best** <br>**Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| &nbsp;&nbsp;&nbsp;&nbsp;150-330 | 0-4000 | 9650 | 10658 | &nbsp;&nbsp;&nbsp;&nbsp;12297 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

------

**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

------

DeGolyer and MacNaughton

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | |
|:---|:---|
| | **Gross**<br>**TRGR**<br>**(10**<sup>15</sup>**J)** |
| Low Estimate | 3248 |
| Best Estimate | 4124 |
| High Estimate | 5330 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 94.3 percent was utilized to convert thermal energy to net generated electrical energy for the Aspen Area.Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31,

------

2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**<u>(MW)</u>** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Potential Gross Electrical**<br>**Power Capacity**<br>**Associated with**<br>**Gross HIIP**<br>**per Rock Volume**<br>**<u>(MW/km</u>**<sup>3</sup>**<u>)</u>** |
| Low Estimate | 2126 | 73 |
| Best Estimate | 2348 | 79 |
| High Estimate | 2710 | 87 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km<sup>3</sup>), and megawatt hours (MWh):

---

| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical Power Capacity Associated with Gross TRGR (MW)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR per Rock Volume (MW/km**<sup>3</sup>**)** | **Potential Net Generated Electrical Energy Associated with Gross TRGR (MWh)** |
| Low Estimate | 501 | 17 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124133804 |
| Best Estimate | 636 | 21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;157635968 |
| High Estimate | 822 | 26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;203735945 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Capacity factor of 94.3 percent was applied for estimating potential generated electrical energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Aspen Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

------

DeGolyer and MacNaughton

**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located in **[\*\*\*]** Nevada. The properties evaluated herein are associated with the Aspen Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | |
|:---|:---|:---|:---|
| | **Aspen Area** | **Aspen Area** | **Aspen Area** |
| | **Low** <br>**Estimate (10**<sup>15</sup>**J)** | **Best** <br>**Estimate (10**<sup>15</sup>**J)** | **High** <br>**Estimate (10**<sup>15</sup>**J)** |
| Gross HIIP | 9650 | 10658 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12297 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Application of any risk factor to HIIP does not equate HIIP with TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (MW):

---

| | | |
|:---|:---|:---|
| | **Gross** <br>**TRGR** <br>**(10**<sup>15</sup>**J)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR**<br>**(MW)** |
| Low Estimate | 3248 | 501 |
| Best Estimate | 4124 | 636 |
| High Estimate | 5330 | 822 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

------

DeGolyer and MacNaughton is an independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

---

| |
|:---|
| Submitted, |
| ![exhibit9991a.jpg](exhibit9991a.jpg) |
| DeGOLYER and MacNAUGHTON<br>Texas Registered Engineering Firm F-716 |

---

SIGNED: February 27, 2026

![image_1.jpg](image_1.jpg)

---

| |
|:---|
| ![exhibit9993a.jpg](exhibit9993a.jpg) |
| Dilhan Ilk, P.E.<br>Executive Vice President<br>DeGolyer and MacNaughton |

---

## Exhibit 99.10

**Exhibit 99.10**

**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*] HAS BEEN OMITTED PURSUANT TO REGULATION S-K, ITEM 601(B) BECAUSE THE REGISTRANT HAS DETERMINED THAT THE OMITTED INFORMATION (I) IS NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and** 

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**CROSS AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

------

DeGolyer and MacNaughton

**TABLE of CONTENTS**

---

| | |
|:---|:---|
| | **Page** |
| **[FOREWORD](#ie8e08f81e73d44ff8dc9d117c38b5011_1)** | 1 |
| &nbsp;&nbsp;&nbsp;Scope of Investigation | 1 |
| &nbsp;&nbsp;&nbsp;Authority | 2 |
| &nbsp;&nbsp;&nbsp;Source of Information | 2 |
| **INTRODUCTION** | 3 |
| **DEFINITION of HEAT INITIALLY in PLACE and TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES** | 5 |
| **ESTIMATION of HEAT INITIALLY in PLACE** | 7 |
| **DEFINITION of TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES** | 9 |
| **ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY** | 11 |
| **[SUMMARY and CONCLUSIONS](#ie8e08f81e73d44ff8dc9d117c38b5011_1)** | 13 |
| **TABLES** |  |
| &nbsp;&nbsp;&nbsp;Table 1&nbsp;&nbsp;&nbsp;&nbsp;- List of Properties Evaluated |  |
| &nbsp;&nbsp;&nbsp;Table 2&nbsp;&nbsp;&nbsp;&nbsp;- Gross Heat Initially in Place |  |
| &nbsp;&nbsp;&nbsp;Table 3&nbsp;&nbsp;&nbsp;&nbsp;- Gross Technically Recoverable Geothermal Resources |  |
| &nbsp;&nbsp;&nbsp;Table 4&nbsp;&nbsp;&nbsp;&nbsp;- Potential Gross Electrical Power Capacity and Potential Gross Electrical Power Capacity per Rock Volume Associated with Gross Heat Initially in Place |  |
| &nbsp;&nbsp;&nbsp;Table 5- Potential Net Electrical Power Capacity and Potential Net Electrical Power Capacity per Rock Volume and Potential Net Generated Electrical Energy associated with Gross Technically Recoverable Geothermal Resources |  |

---

------

**DeGolyer and MacNaughton**

500 I Spring Valley Road

Suite 800 East

Dallas, Texas 75244

**REPORT**

**as of**

**DECEMBER 31, 2025**

**on**

**HEAT INITIALLY IN PLACE**

**and**

**TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES**

**for the**

**CROSS AREA**

**with interests attributable to**

**FERVO ENERGY COMPANY**

**<u>FOREWORD</u>**

<u>Scope of Investigation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report presents estimates, as of December 31, 2025,

of the extent of the heat initially in place (HIIP) and technically recoverable geothermal resources (TRGR) of the Cenozoic Basin-fill Sediments and Volcaniclastics and Paleozoic Basement located in the Cross Area of **[\*\*\*]** Nevada. Fervo Energy Company (Fervo) has represented that it holds an interest in certain properties located in the Cross Area (Table 1).

Fervo has represented that the properties evaluated herein are associated with a conceptual enhanced geothermal system (EGS) project that involves the drilling and completion of pairs of multi-stage, hydraulically fractured horizontal injection and production wells within the high-temperature Cenozoic Basin-fill Sediments and Volcaniclastics and Paleozoic Basement. The hydraulic fractures create the pathway for heat exchange between the injection fluid (water) and the geothermal resources, and the heated produced fluid is transferred to the power generating plant.

HIIP estimated in this report are expressed as gross HIIP. Gross HIIP are defined as those quantities of thermal energy estimated, as of December 31, 2025, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.TRGR estimated in this report are expressed as gross TRGR. Gross TRGR are defined as those quantities of thermal energy producible using currently available technology and industry practices, regardless of commercial considerations, after December 31, 2025.

Estimates of TRGR presented in this report are not classified as reserves, since no consideration is given to commercial criteria and project boundaries. The TRGR estimated in this report contain the potentially recovered thermal energy resources regardless of discovery status. The TRGR estimated herein were based on technical evaluations associated with certain

------

notional potential operation or development plans and realizations of market or fiscal conditions not currently fixed. The TRGR estimated in this report are provided as a means of quantifying the potential rates, recoveries, or outcomes that could be associated with certain conditions or actions were they to be implemented. TRGR are provided as a means of comparison to other TRGR and do not provide a means of comparison to reserves. A detailed explanation of the TRGR estimated herein is included in the Estimation of Technically Recoverable Geothermal Resources section of this report.

TRGR should not be confused with those quantities that are associated with reserves due to the additional risks involved. The quantities that might actually be recovered, should they be developed, may differ significantly from the estimates presented herein. There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

Estimates of HIIP and TRGR should be regarded only as estimates that may change as further production history and additional information become available. Not only are such estimates based on that information which is currently available, but such estimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.

<u>Authority</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This report was authorized by Dr. Jack Norbeck, Chief

Technology Officer, Fervo Energy Company.

<u>Source of Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information used in the preparation of this report was

obtained from Fervo. In the preparation of this report we have relied, without independent verification, upon information furnished by Fervo with respect to the property interests being evaluated and various other information and data that were accepted as represented. A field examination was not considered necessary for the purposes of this report.

------

**<u>INTRODUCTION</u>**

The evaluated portion of the Cross Area encompasses approximately **[\*\*\*]** leased by Fervo located in **[\*\*\*]** The primary formations of interest within the Cross Area are the Cenozoic Basin-fill Sediments and Volcaniclastics and Paleozoic Basement. Fervo has represented that it holds 100-percent working interest in the properties located in the Cross Area and evaluated herein.

The Cross Area targets potential high geothermal gradients logged in wells within the Cenozoic Basin-fill Sediments and Volcaniclastics and Paleozoic Basement evaluated herein. The Cenozoic Basin-fill Sediments and Volcaniclastics are found at a volume-weighted average true vertical depth (TVD) of 2,834 meters and have a thickness of 72 meters. The Cenozoic Basin-fill Sediments and Volcaniclastics make up a minor portion of the target reservoir volume. The Paleozoic Basement is composed primarily of carbonate and siliciclastic metasediments as well as some carbonate, siliciclastic, and volcanic rocks. The Paleozoic Basement is found at a volume-weighted average TVD of 3,505 meters and has a thickness of 890 meters.

Fervo provided data for the Cross Area that included drilling, well-log, gravity, and outcrop data. The gravity data are the primary sources of subsurface data away from outcrop and well control that have been integrated and calibrated to the wells to provide a source of subsurface data to map the depth structure of the Cenozoic Basin-fill Sediments and Volcaniclastics and Paleozoic Basement formation contacts and fault system. Fervo provided a three-dimensional (3-D) geologic model that encompasses the Fervo lease position for the Cross Area. The 3-D geologic model characterizes the depth and extent of the Cenozoic Basin-fill Sediments and Volcaniclastics and Paleozoic Basement and multiple in-situ temperature scenarios.

Geothermal resources are the thermal energy derived from the Earth's natural heat and stored in the reservoir. Such thermal energy can be extracted from the reservoir rock through heat exchange with either natural reservoir fluids or injected fluids, and such energy can be converted into electricity and applied for the purposes of electrical power generation.

The viability of using geothermal resources for the purposes of power generation is determined by the temperature of the heated fluid, which must meet a minimum threshold suitable for the power plant's operation. Conversely, the maximum temperature is limited by the technological constraints of the tools and equipment, as well as the heat extraction methods employed at the reservoir conditions.

The estimated HIIP and TRGR quantities in this report are associated with a conceptual EGS project in the Cross Area, which is limited to specific sections of Fervo's acreage position that would be interpreted as an undiscovered geothermal resource accumulation.

A discovered geothermal resources accumulation is determined to exist when one or more exploratory wells have established, through testing, sampling, and/or logging, the existence of a significant quantity of potentially recoverable geothermal resources. Based on the current stage of field development and analysis of available data, the geothermal resources accumulation within certain parts of the Cross Area was classified as undiscovered.

------

**<u>DEFINITION of HEAT INITIALLY in PLACE and</u>**

**<u>TECHNICALLY RECOVERABLE GEOTHERMAL RESOURCES</u>**

Estimates of HIIP and TRGR presented in this report have been prepared using a systematic classification framework consistent with established practices in subsurface resource evaluations. Because of the lack of commercial considerations, the resources estimated herein cannot be classified as reserves. The HIIP and TRGR included herein are defined as follows:

*Heat Initially In Place* are those quantities of total thermal energy estimated, as of a given date, to be contained in place within the rock and pore fluid in a defined geothermal accumulation.

*Technically Recoverable Geothermal Resources* are those quantities of thermal energy estimated, as of a given date, to be potentially recoverable from known geothermal accumulations using currently available technology and industry practices, regardless of commercial considerations.

The estimation of HIIP and TRGR is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonable range of estimated potentially recoverable quantities. In all cases, the range of uncertainty is dependent on the amount and quality of the available technical data and may change as more data become available. Estimates of HIIP and TRGR in this report are expressed using the terms low estimate, best estimate, and high estimate to reflect the range of uncertainty.

*Low Estimate -* If deterministic methods are used, there is a reasonable certainty, intended to express a high degree of confidence, that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate. If probabilistic methods are used, there should be at least a 90-percent probability (P90) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the low estimate.

*Best Estimate -* If deterministic methods are used, it is equally likely that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than or less than the Best Estimate. If probabilistic methods are used, there should be at least a 50-percent probability (P50) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the best estimate.

*High Estimate* - If deterministic methods are used, there will be a low probability that the HIIP quantities actually in place and TRGR quantities actually recovered will be greater than the High Estimate. If probabilistic methods are used, there should be at least a 10-percent probability (PIO) that the HIIP quantities actually in place and TRGR quantities actually recovered will equal or exceed the high estimate.

------

**<u>ESTIMATION of HEAT INITIALLY in PLACE</u>**

Estimates of HIIP were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, and quality and completeness of basic data.

The probabilistic analysis of potential resources in this study considered the uncertainty in the amount of thermal energy that may be initially in place. The uncertainty analysis addresses the range of possibilities for any given reservoir parameter. The range of uncertainty reflects a reasonable range of estimated HIIP. In all cases, the range of uncertainty is dependent on the amount and quality of both technical and commercial data and may change as more data become available.

Standard probabilistic methods were used in the uncertainty analysis. Probability distributions were estimated from representations of productive rock volume, bulk density (Pb), reservoir temperature (Tres), specific heat capacity (c), and depth for the Cross Area. These representations were prepared based on known data, analogy, and other standard estimation methods including experience. Statistical measures describing the probability distributions of these representations were identified and input into a Monte Carlo simulation to produce low estimate (P90), best estimate (P50), and high estimate (PIO) estimations of HIIP.

Low, best, and high representations of potential productive volume were interpreted from maps and 3-D models based on well data, gravity data, and/or analogy. Representations for the petrophysical and engineering parameters (pb, c, temperature, and net thickness) were estimated based on available well data, gravity, regional data, analog field data, and global experience. Individual probability distributions for rock volume and petrophysical and engineering parameters were estimated from these representations.

The distributions for the variables were derived from (1) scenario-based interpretations, (2) the geologic, geophysical, petrophysical, and engineering data available, (3) local, regional, and global knowledge, and (4) field and case studies in literature. The parameters used to model HIIP quantities were potential productive volume, Pb, c, depth, Tres, and reference temperature (Tref). Minimum, mean, and maximum representations were used to statistically model and shape the input P90, P50, and PIO parameters. Potential productive volume, Pb, and c were modeled using truncated normal distributions. Latin hypercube sampling was used to better represent the tails of the distributions.

Each individual volumetric parameter was investigated using a probabilistic approach with attention to variability. Deterministic data were used to anchor and shape the various distributions. The rock volume parameters and Tres had the greatest range of variability, and therefore had the greatest impact on the uncertainty of the simulation. The volumetric parameter variability was based on temperature and depth. Regional geothermal trends based on well data were incorporated to derive uncertainty limits and constraints on the Tres. Uncertainties associated with the depth and Tres were also derived from multiple interpretative scenarios and sensitivity analysis.

------

Lease position and drilling and completion technology are limits to thermal energy in place that can be exploited in terms of depth and temperature. Geothermal resources accumulations encountered at depths of less than 4,000 meters TVD have not been discovered, but any such accumulations would be limited by the size of the rig employed to date. This depth can be extended with a larger drilling rig to exploit deeper development benches at depth intervals equal to the stimulation fracture growth 200 meters above and below the horizontal well. The temperature range of 150 to 330 degrees Celsius (°C) was determined on the low end by the input requirements of the power plant and on the high end by current drilling and completion technology.The HIIP quantities were estimated for the potential accumulation, limited to a temperature range of 150 to 330 °C, and at a depth of less than 4,000 meters TVD. The Tref is the injection temperature of the produced water after it has been run through the power plant. This temperature is fixed at 80 °C as determined by the power plant system design. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized for each case as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross HIIP** |
|<br>**Temperature Range (°C)** |<br>**Total Vertical Depth Range (meters)** | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| &nbsp;&nbsp;&nbsp;&nbsp;150-330 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0-4000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7130 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23232 | &nbsp;&nbsp;&nbsp;&nbsp;44909 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with reserves or TRGR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

------

**<u>ESTIMATION of TECHNICALLY RECOVERABLE</u>**

**<u>GEOTHERMAL RESOURCES</u>**

Estimates of TRGR were prepared by the use of standard geologic, engineering, and evaluation principles and techniques that are in accordance with practices generally recognized by the industry involved in subsurface evaluations. The method or combination of methods used in the analysis of each project area was tempered by experience with similar projects, stage of development, quality and completeness of basic data, and production history (if available).

Based on the current level of project maturity, the notional development plans provided by Fervo, and the range of uncertainty associated with the quantities potentially recoverable from the geothermal reservoir, TRGR have been estimated and categorized as low estimate, best estimate, or high estimate.

For the estimation of TRGR, a notional EGS development plan was utilized. The development plan included the drilling of horizontal producer and injector wells stacked in alternating lines of producers and injectors. These wells are to be hydraulically fractured to enhance permeability and thereby create stimulated reservoir volume. Water is to be injected through the injector wells, heated in the reservoir, and then produced through the producing wells. Heat energy from the produced water is to be converted to electrical energy in a power plant using an Organic Rankine Cycle (ORC) system.

Estimates of TRGR were obtained after applying recovery factors to HIIP. These recovery factors were based on consideration of data from analog EGS development projects and data based on analytical and numerical models for the EGS project area described herein. Uncertainty associated with the recoverable thermal energy quantities based on the prescribed notional development plan was modeled using a probability distribution for the recovery factors. The probability distribution for the recovery factors was input into a Monte Carlo simulation to produce low estimate, best estimate, and high estimate estimations of TRGR.

Estimates of recovery efficiency presented in this report do not incorporate variations in the development plan or economic inputs and are subject to change upon the selection of alternative development options or different costs, economic parameters, and power purchase agreement scenarios.

The TRGR estimates presented herein were based on data available through December 31, 2025. The development status represents the status applicable on December 31, 2025.

TRGR estimated herein are associated with hot water production from the reservoir, and are reported prior to the electricity generation at the wellhead. TRGR included in this report are expressed in quadrillions of joules (10<sup>15</sup> J).

------

The estimated gross TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

---

| | |
|:---|:---|
| | **Gross TRGR** <br>**(10**<sup>15</sup>**J)** |
| Low Estimate | 1927 |
| Best Estimate | 7740 |
| High Estimate | 18355 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR does not equate TRGR with reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

------

**<u>ESTIMATION of POTENTIAL ELECTRICAL POWER CAPACITY</u>**

At the request of Fervo, thermal energy associated with the estimated HIIP and TRGR were converted to potential electrical power capacity. This process is based on the ORC principle, which transforms thermal energy into electrical power using specifically designed turbines. Information regarding the efficiency of the designed ORC system was provided by Fervo. Fervo has represented that this information was based on the design specifications obtained from analog projects and on manufacturer-guaranteed specifications.

Provided design specifications indicated 19.5-percent efficiency for the ORC system at an intake temperature of 199 °C and an outlet temperature of 85 °C.

Electrical power quantities estimated herein are expressed as gross and net electrical power. Gross electrical power is defined as the electrical power generated by the turbine generator before any internal usage. Net electrical power is the electricity delivered at the sales point after deducting parasitic energy loads consumed primarily by electric pumping units, transformer losses, and line losses. At the request of Fervo, an overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of net generated electrical power.

Total energy generated by the system over a certain period of time was estimated using an assumption for the capacity factor, which is defined as the ratio of actual electrical energy output over a given period of time to the maximum theoretical electrical energy output (nameplate). At the request of Fervo, a specific capacity factor of 93.6 percent was utilized to convert thermal energy to net generated electrical energy for the Cross Area.Based on these design specifications and an assumed project life of 30 years, the estimated potential gross electrical power capacity associated with gross HIIP and that same capacity, as normalized by the interpreted mean gross rock volume estimate, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW) and megawatts per cubic kilometers (MW/km<sup>3</sup>):

---

| | | |
|:---|:---|:---|
| | **Potential Gross Electrical Power Capacity Associated with Gross HIIP <br>(MW)** | **Potential Gross Electrical Powe Capacity Associated with Gross HIIP per Rock Volume (MW/km**<sup>3</sup>**)** |
| Low Estimate | 1571 | 53 |
| Best Estimate | 5119 | 62 |
| High Estimate | 9895 | 75 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Potential gross electrical power capacity is associated with HIIP estimates, and do not incorporate recovery factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

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Based on the design specifications and an assumed project life of 30 years, the estimated potential net electrical power capacity, and that same capacity normalized by mean gross rock volume, and potential net generated electrical energy associated with TRGR, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in megawatts (MW), megawatts per cubic kilometers (MW/km<sup>3</sup>), and megawatt hours (MWh):

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| | | | |
|:---|:---|:---|:---|
| | **Potential Net Electrical Power Capacity Associated with Gross TRGR (MW)** | **Potential Net Electrical Power Capacity Associated with Gross TRGR per Rock Volume (MW/km**<sup>3</sup>**)** | **Potential Net Generated Electrical Energy Associated with Gross TRGR (MWh)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Low Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;297 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73116815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Best Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1194 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;293647514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;High Estimate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2831 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;696375202 |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine, and a 30-year project life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp; Capacity factor of 93.6 percent was applied for estimating potential generated electrical energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

Estimates of potential electrical power capacity presented herein are subject to certain limitations and uncertainties related to technical and commercial contingencies which may potentially impact the extraction of thermal energy from the reservoir rock and its conversion into electricity for power generation.

Technical and commercial contingencies for the potential development of the Cross Area include, but are not limited to, lack of approval of a formal development plan, lack of facilities and infrastructure in the area necessary to support development, uncertainty regarding reservoir connectivity, stimulation effectiveness, and flow performance.

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**<u>SUMMARY and CONCLUSIONS</u>**

Fervo has represented that it holds an interest in certain properties located in **[\*\*\*]** Nevada. The properties evaluated herein are associated with the Cross Area. The estimated gross HIIP, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup> J):

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| | | | |
|:---|:---|:---|:---|
| | **Cross Area** | **Cross Area** | **Cross Area** |
| | **Low Estimate (10**<sup>15</sup>**J)** | **Best Estimate (10**<sup>15</sup>**J)** | **High Estimate (10**<sup>15</sup>**J)** |
| Gross HIIP | 7130 | 23232 | &nbsp;&nbsp;&nbsp;&nbsp;44909 |

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Notes:

&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.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to HIIP does not equate HIIP with TRGR.

&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.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the HIIP evaluated herein.

&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.&nbsp;&nbsp;&nbsp;&nbsp;The HIIP estimated in this report are at a stage such that it is premature to clearly define the ultimate chance of commerciality.

The estimated gross TRGR and associated potential net electrical power capacity, as of December 31, 2025, of the properties evaluated herein are summarized as follows, expressed in quadrillions of joules (10<sup>15</sup>J) and megawatts (MW):

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| | | |
|:---|:---|:---|
| | **Gross**<br>**TRGR**<br>**(10**<sup>15</sup>**J)** | **Potential Net Electrical Power<br>Capacity Associated with<br>Gross TRGR<br>(MW)** |
| Low Estimate | 1927 | 297 |
| Best Estimate | 7740 | 1194 |
| High Estimate | 18355 | 2831 |

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Notes:

1.&nbsp;&nbsp;&nbsp;&nbsp;Application of any risk factor to TRGR quantities and does not equate TRGR with reserves.

2.&nbsp;&nbsp;&nbsp;&nbsp;There is no certainty that it will be commercially viable to produce any portion of the TRGR evaluated herein.

3.&nbsp;&nbsp;&nbsp;&nbsp;Conversion to electric power assumes 19.5-percent efficiency of the ORC turbine and a 30-year project life.

4.&nbsp;&nbsp;&nbsp;&nbsp;An overall 30-percent total system parasitic load (inclusive of ORC parasitic load and injection pump parasitic load) was assumed for the estimation of potential net generated electrical power.

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DeGolyer and MacNaughton is an independent engineering consulting firm that has been providing energy consulting services throughout the world since 1936. Our fees were not contingent on the results of our evaluation. This report has been prepared at the request of Fervo. DeGolyer and MacNaughton has used all assumptions, procedures, data, and methods that it considers necessary to prepare this report.

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| |
|:---|
| Submitted, |
| ![image_01.jpg](image_01.jpg) |
| DeGOLYER and MacNAUGHTON |
| Texas Registered Engineering Firm F-716 |

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SIGNED: February 27, 2026

![image_1b.jpg](image_1b.jpg)

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| |
|:---|
| ![dilhanlogo1.jpg](dilhanlogo1.jpg) |
| Dilhan Ilk, P.E. |
| Executive Vice President |
| DeGolyer and MacNaughton |

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