# EDGAR Filing Document

**Accession Number:** 0002101698
**File Stem:** 0001213900-26-043190
**Filing Date:** 2026-4
**Character Count:** 2296282
**Document Hash:** 5e9d4380ea140b2c9519454e1b0cfab6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-043190.hdr.sgml**: 20260414

**ACCESSION NUMBER**: 0001213900-26-043190

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

**PUBLIC DOCUMENT COUNT**: 50

**FILED AS OF DATE**: 20260414

**DATE AS OF CHANGE**: 20260414

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Elmet Group Co.
- **CENTRAL INDEX KEY:** 0002101698
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS FABRICATED METAL PRODUCTS [3490]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 331881598
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-294725
- **FILM NUMBER:** 26859118

**BUSINESS ADDRESS:**
- **STREET 1:** 2 PORTLAND FISH PIER, SUITE 214
- **CITY:** PORTLAND
- **STATE:** ME
- **ZIP:** 04101
- **BUSINESS PHONE:** 207-518-6791

**MAIL ADDRESS:**
- **STREET 1:** 2 PORTLAND FISH PIER, SUITE 214
- **CITY:** PORTLAND
- **STATE:** ME
- **ZIP:** 04101

#### As filed with the U.S. Securities and Exchange Commission on April 14 , 2026.

#### Registration No. 333- 294725

#### UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549
**_______________________________**

#### AMENDMENT NO. 1

#### TO

#### FORM S-1<br>REGISTRATION STATEMENT <br>UNDER <br>THE SECURITIES ACT OF 1933
**_______________________________**

#### The Elmet Group Co. <br> (Exact Name of Registrant as Specified in its Charter)<br> _______________________________

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| | | |
|:---|:---|:---|
|  **Delaware** | **3490** | **33-1881598** |
|  (State or other jurisdiction of <br>incorporation or organization) | (Primary Standard Industrial <br>Classification Code Number) | (I.R.S. Employer <br>Identification Number) |

---

#### 2 Portland Fish Pier<br>Suite 214<br>Portland, ME 04101<br> (207) 518-6791<br> (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)
**_______________________________**

**Peter V. Anania<br>Chief Executive Officer<br>The Elmet Group<br>2 Portland Fish Pier<br>Suite 214<br>Portland, ME 04101<br>(207) 518**-6791****<br> (Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)<br>**_______________________________**

**with copies to:**

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| | |
|:---|:---|
|  **Adam Berkaw, Esq.** <br>**Ellenoff Grossman & Schole LLP <br>1345 Avenue of the Americas <br>New York, NY 10105 <br>Phone: (212) 370**-1300 **<br>Fax: (212) 370**-7889 | **David J. Kaufman, Esq.** <br>**Eileen Duffy Robinett, Esq. <br>Thompson Coburn LLP <br>55 East Monroe Street** <br>**Chicago, IL 60603 <br>Phone: (312) 346**-7500 |

---

**_______________________________**

#### Approximate date of commencement of proposed sale to public: As soon as practicable after the effective date hereof.
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, 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 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 number of the earlier effective registration statement for the same offering. ☐

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

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided 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 Commission, acting pursuant to Section 8(a), may determine.**

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

**The information contained 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 is not soliciting an offer to buy these securities in any state or jurisdiction where the offer or sale is not permitted.**

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| | |
|:---|:---|
|  **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION, DATED APRIL 14, 2026** |

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#### 7,692,307 Shares

#### Common Stock
This is the initial public offering of our common stock, par value $0.001 per share. We are offering 7,692,307 shares of our common stock. Prior to this offering, there has been no public market for our common stock. We currently expect that the initial public offering price of our shares of common stock will be between $12.00 and $14.00.

We have applied to have our common stock listed on the Nasdaq Stock Market LLC ("Nasdaq") under the symbol "ELMT." No assurance can be given that our application will be approved. If our common stock is not approved for listing on Nasdaq, we will not consummate this offering.

We are an "emerging growth company" and a "smaller reporting company" as defined under the U.S. federal securities laws and, as such, may elect to comply with certain reduced public company reporting requirements for this prospectus and future filings. See "*Prospectus Summary — Implications of Being an Emerging Growth Company*."

**Investing in our common stock is speculative and involves a high degree of risk. Please read "*Risk Factors*" beginning on page 19 of this prospectus.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

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| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total Without <br>Over-Allotment <br>Option** | **Total With <br>Over-Allotment <br>Option** |
|  Initial public offering price | $| $| $|
|  Underwriting discounts and commissions<sup>(1)</sup> | $| $| $|
|  Proceeds to us, before expenses<sup>(2)</sup> | $| $| $|

---

____________

(1) We have also agreed to issue to Cantor Fitzgerald & Co. ("Cantor") certain broker warrants to purchase up to a number of shares of our common stock equal to 1.5% of the total number of shares of common stock sold in this offering ("Broker's Warrants"). Please see "*Underwriting*" beginning on page 163 of this prospectus for additional information regarding underwriting discounts and commissions, expenses, the Broker's Warrants and other compensation payable to Cantor and the other underwriters.

(2) The proceeds, before expenses, to us presented in this table do not give effect to any exercise by the underwriters of (i) the option we have granted to the underwriters to purchase additional shares of our common stock from us as described below or (ii) the Broker's Warrants.

At our request, the underwriters have reserved up to 2% of the shares offered by this prospectus, for sale at the initial public offering price through a directed share program to certain of our directors, officers, and employees, as well as other parties related to The Elmet Group Co. See "*Underwriting — Directed Share Program*."

We have granted a 30-day option to the representative of the underwriters to purchase up to 1,153,846 additional shares of common stock at the public offering price, less underwriting discounts and commissions, solely to cover over-allotments, if any.

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

---

| | | |
|:---|:---|:---|
|  | **Cantor** |  |
|  **Needham & Company** |  | **Canaccord Genuity** |
|  | **Roth Capital Partners** |  |

---

Prospectus dated , 2026

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

![](tcover_001.jpg)

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

#### **Table of Contents**

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| | |
|:---|:---|
|  | **Page** |
|  [Prospectus Summary](#T21) | 1 |
|  [The Offering](#T20) | 12 |
|  [Cautionary Note Regarding Forward-Looking Statements](#T19) | 17 |
|  [Risk Factors](#T18) | 19 |
|  [Use of Proceeds](#T17) | 53 |
|  [Capitalization](#T16) | 55 |
|  [Dilution](#T15) | 57 |
|  [Dividend Policy](#T14) | 59 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#T13) | 60 |
|  [Unaudited Pro Forma Condensed Consolidated Financial Information](#T991510) | 90 |
|  [Business](#T12) | 99 |
|  [Management](#T11) | 124 |
|  [Executive Compensation](#T10) | 131 |
|  [Principal Stockholders](#T9) | 147 |
|  [Certain Relationships and Related Party Transactions](#T8) | 149 |
|  [Description of Capital Stock](#T7) | 153 |
|  [Shares Eligible for Future Sale](#T6) | 157 |
|  [Material U.S. Federal Income Tax Consequences to Non-U.S. Holders](#T5) | 159 |
|  [Underwriting](#T4) | 163 |
|  [Experts](#T3) | 174 |
|  [Legal Matters](#T2) | 174 |
|  [Where You Can Find More Information](#T1) | 174 |
|  [Index to Financial Statements](#T777) | F-1 |

---

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

#### ABOUT THIS PROSPECTUS
We and the underwriters have not authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses prepared by us or on our behalf or to which we have referred you. We take no responsibility for and can provide no assurance as to the reliability of any other information that others may give you. This prospectus is an offer to sell only the shares of common stock offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. We are not making an offer to sell these shares of common stock in any jurisdiction where the offer or sale is not permitted or where the person making the offer or sale is not qualified to do so or to any person to whom it is not permitted to make such offer or sale. The information contained in this prospectus is current only as of the date on the front cover of the prospectus. Our business, financial condition, results of operations and prospects may have changed since that date.

Persons who come into possession of this prospectus and any applicable free writing prospectus in jurisdictions outside the United States are required to inform themselves about and to observe any restrictions as to this offering and the distribution of this prospectus and any such free writing prospectus applicable to that jurisdiction. See "*Underwriting*" for additional information on these restrictions.

#### General Information
Unless otherwise indicated or the context otherwise requires, references in this prospectus to "Company," "we," "us," "our" and "Elmet" refer to The Elmet Group Co., a Delaware corporation, and its subsidiaries. Elmet was incorporated as a Delaware corporation on September 13, 2024 and, prior to the consummation of the Reorganization (as defined in this prospectus) on January 2, 2026, did not conduct any activities other than those incidental to our formation and our initial public offering.

As of the consummation of the Reorganization on January 2, 2026, we conduct our business through our two primary operating subsidiaries, Elmet Technologies LLC, a Maine limited liability company, which we refer to as "Elmet Tech," and Microwave Techniques LLC, a Maine limited liability company, which we refer to as "Microwave Techniques."

#### Basis of Presentation
Elmet is a newly incorporated entity, has not engaged in any business or other activities except in connection with its formation and had no assets or liabilities during the periods presented in this prospectus.

Except as otherwise disclosed in this prospectus, the historical consolidated financial statements, the summary historical consolidated financial data, and the other financial information included elsewhere in this prospectus have been presented in U.S. dollars in accordance with the generally accepted accounting principles in the United States ("GAAP"). The historical consolidated financial statements, the summary historical consolidated financial data and the other financial information included elsewhere in this prospectus as of December 31, 2025 and 2024 and for the years ended December 31, 2025 and 2024 reflect the consolidated financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.), which include Elmet Tech and Microwave Techniques. The historical financial information does not give effect to the Reorganization (as defined in this prospectus).

The Reorganization is accounted for as a reorganization of entities under common control. As a result, the consolidated financial statements of Elmet recognize the assets and liabilities received in the Reorganization at their historical carrying amounts and are reflected as if Elmet owned them as of the original dates they were under common control.

Our fiscal year ends on December 31 of each year.

Certain monetary amounts, percentages, and other figures included elsewhere in this prospectus have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated, may not be the arithmetic aggregation of the percentages that precede them.

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#### Market, Industry, and Other Data
Unless otherwise indicated, information in this prospectus concerning economic conditions, our industry, our markets and our competitive position is based on a variety of sources, including information from third-party industry and academic research, publications and surveys, reports of governmental agencies and our own estimates and research. In some cases, we do not expressly refer to the sources from which the data used in this prospectus is derived.

The industry publications, surveys and forecasts and other public information generally indicate or suggest that their information has been obtained from sources believed to be reliable. None of the third-party industry publications used in this prospectus were prepared on our behalf. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "*Risk Factors*" in this prospectus. All of the market and industry data used in this prospectus is inherently subject to uncertainties and involves a number of assumptions, estimates and limitations. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and us.

#### Trademarks
This prospectus contains references to our trademarks and service marks and to those belonging to other entities. Solely for convenience, trademarks and trade names referred to in this prospectus may appear without the <sup>®</sup>, <sup>TM</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 possible under applicable law, our rights or the rights of the applicable licensor to these trademarks and trade names. We do not intend our use or display of other companies' trade names, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by any other companies.

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#### PROSPECTUS SUMMARY
*This summary highlights certain information appearing elsewhere in this prospectus. Because it is only a summary, it does not contain all of the information you should consider before investing in shares of our common stock, and it is qualified in its entirety by, and should be read in conjunction with, the more detailed information appearing elsewhere in this prospectus. Before you decide to invest in our common stock, you should read the entire prospectus carefully, including "Risk Factors" beginning on page 19 (and "— Summary of Risk Factors" on page 8) and the financial statements and related notes included in this prospectus.*

*Unless the context indicates otherwise, as used in this prospectus, the terms "we," "us," "our," "our Company" "Elmet," "the Company" and "our business" refer to The Elmet Group Co., a Delaware corporation, or any one or more of its subsidiaries, or to such entities collectively. As of the consummation of the Reorganization on January 2, 2026, we acquired all of the outstanding membership interests of Elmet Technologies LLC ("Elmet Tech") and Microwave Techniques LLC ("Microwave Techniques"). The acquisition of the membership interests of Elmet Tech and Microwave Techniques was accounted for as a transaction between entities under common control. All references in this prospectus to us when used in a historical context refer to our predecessor companies, Elmet Tech and Microwave Techniques, and when used in the present tense or prospectively refer to us and our subsidiaries, collectively, or individually, as the context may require. Except where otherwise indicated, the information in this prospectus gives effect to the Reorganization (as defined below).*

#### Overview
Elmet provides precision-engineered components and advanced high-energy systems for growth markets. Our customers in these markets require advanced technology involving critical and strategic materials, such as tungsten, molybdenum and niobium (such materials, the "Critical Materials") and high-level radio frequency ("RF") engineering, including plasma generation, radar, and other high-energy systems (together, "High-Power Microwave"). Our products and solutions are integral to the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries. These are industries which require components capable of performing in extreme thermal, electromagnetic, and technical environments for vital use cases. Our fundamental mission is to strengthen U.S. domestic manufacturing capabilities to support the United States and its allies' needs in both Critical Materials and advanced High-Power Microwave systems. We believe we are the leader and sole-source U.S. producer of many highly engineered Critical Materials products and a leading designer and manufacturer of High-Power Microwave components in the United States.

Our business is organized into two divisions, Critical Materials Components ("CMC") and Engineered Microwave Products ("EMP"). Through our divisions, we own and operate a vertically integrated engineering-to-production system, with custom design, development, and processing expertise for Critical Materials and High-Power Microwave that is unmatched in our markets and the industries in which we operate. Our High-Power Microwave expertise capitalizes on our vertically integrated engineering-to-production system, enabling us to deliver microwave energy solutions with custom design and development expertise. Our Critical Materials engineering and production expertise enables us to custom design elegant solutions for some of the most challenging environments on the planet. We believe these capabilities provide a significant competitive advantage in our markets and the industries in which we compete.

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

![](timage_005.jpg)

We are proud to be the only U.S.-owned and U.S.-based manufacturer of highly engineered tungsten and molybdenum products through our CMC division. We control the powder production, pressing, sintering, forming, milling and engineering of tungsten and molybdenum oxide to the finished engineered product. Our CMC products support many of the most critical programs on land, sea and air of the United States Department of War (also referred to as the United States Department of Defense) (the "DoW"). Our engineering expertise in our EMP division has enabled us to provide products and services to a wide variety of existing and emerging programs also supporting the DoW and space sector leaders, such as Lockheed Martin Corporation ("Lockheed Martin"), RTX Corporation ("Raytheon"), Teledyne Technologies Incorporated ("Teledyne") and the National Aeronautics and Space Administration ("NASA"). Our products are widely used in over 95 national lab programs, including benchmark research and development facilities such as Fermi National Accelerator Laboratory ("Fermi") and Los Alamos National Laboratory ("Los Alamos") and many others around the world. Because of the common relationship among some of the products we offer, we regularly incorporate our Critical Materials and our High-Power Microwave components in the same defense programs and high-powered energy research facilities throughout the United States, United Kingdom and Europe.

Our comprehensive in-house design and manufacturing capabilities are supported by close to 100 engineers, engineering technicians, RF experts, metallurgists and research and development scientists. Our customers benefit from the specialized expertise, know-how and product design we have developed in both engineered high-temperature, high-density Critical Materials and High-Power Microwave technology. Our specific capabilities provide our customers with a value proposition which allows these customers to simplify their supply chain, increase their speed to market and maintain competitive cost structures. Our engineering expertise and established track record position us to serve customers who need a systems solution required to withstand extreme environments and meet stringent performance requirements. These customers rely on us to deliver technical design and scaled manufacturing of Critical Materials components and High-Power Microwave integrated systems to meet these standards. Given the critical nature of the components and solutions we provide, we engage with customers early in their design cycle to develop difficult-to-replicate solutions, using our specialized processes and equipment, creating a competitive advantage.

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

We leverage our vertical integration and engineering capabilities to provide our products and services to five high-growth, strategically critical U.S. and global end-markets, which require components capable of performing in extreme thermal, electromagnetic, and mechanical environments including: Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics and Energy.

![](timage_002.jpg)

#### Our Divisions
***Critical Materials Components:*** We are the only U.S.-owned vertically integrated manufacturer of engineered pure tungsten and pure molybdenum materials and products. Tungsten and molybdenum are metals considered to be "critical materials" possessing among the highest known densities and melting points of any elements. These materials are indispensable for extreme environments and are foundational to aerospace, defense, semiconductor, medical, nuclear energy (fission and fusion), and industrial applications. Our CMC division maintains a supply chain for raw materials outside of The People's Republic of China (the "PRC") and controls every step of the manufacturing process. We machine these difficult-to-work metals into final form factors or highly engineered finished products for our customers. We sell these metals at every stage of the process, from powder to final machined components made to exacting customer specifications. This end-to-end capability promotes the supply chain security and technical excellence required by our customers.

![](timage_006.jpg)

***Engineered Microwave Products:*** Our EMP division designs and manufactures the highest-power specialized RF and microwave components and systems, enabling mission-critical processes. Our products allow for the powering of radar, missile tracking, directed energy systems, semiconductor fabrication, fusion research, and advanced industrial processing. Our EMP division leverages its deep engineering expertise and vertically integrated production to deliver custom solutions which meet stringent performance requirements

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

for defense and energy programs. This division designs and manufactures the broadest domestic portfolio of ultra-high-power passive and active RF components — waveguides, circulators, loads, pressure windows, and automatic tuning systems — proven at peak powers exceeding 60 Megawatts ("MW") and continuous-wave levels in the multi-megawatt range. The components and systems developed by our EMP division support land, mobile, naval, and airborne radar applications, as well as the scientific, medical, and communication markets.

![](timage_001.jpg)

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| | |
|:---|:---|
|  **Product Parameters** | **Range** |
|  RF Component Sizes | • WR28 to WR4600 |
|  Frequencies | • 50 MHz to 40 GHz |
|  Power Levels | • 50 W to 60 MW |
|  Bands | • UHF, L, S, C, X, Ku, K & Ka; special focus in ISM bands (915 and 2,400 MHz) |

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#### Our Competitive Strengths

#### Sole U.S.-owned Supplier of Highly Engineered Critical Materials Components for a Wide Range of Essential Industries
We are a leading producer of highly engineered Critical Materials components and High-Power Microwave products, supplying critical components and systems which underpin performance and reliability in essential industries. Our products and services are critical to multiple industries, including the Aerospace, Defense and Government industry, which often require a U.S.-based supplier due to potential national security concerns. Our operations are organized to control production from start to finish and promote highly consistent quality, non-PRC-based tungsten and molybdenum supply chain security and cost efficiency. The markets we participate in are highly fragmented, and our positioning as a U.S.-based supplier creates a competitive advantage. With increasing emphasis on secure supply chains and advanced materials, we believe our differentiated capabilities and strategic positioning will enable us to capture sustained growth opportunities. The PRC dominates global tungsten supply, producing approximately 80% of tungsten concentrate and a significant share of molybdenum while at the same time imposing escalating export controls on both these materials since February 2025. On October 26, 2025, the PRC's Ministry of Commerce reiterated plans to continue stringent export license restrictions on tungsten into 2026 – 2027. The PRC subsequently reversed this position on November 10, 2025, and suspended the export restrictions for one year. On January 6, 2025, the PRC's Ministry of Commerce imposed an additional ban on the export of all 'dual-use' items, including tungsten and molybdenum, to Japan for military applications. The oscillating export restrictions and subsequent suspension of these restrictions highlight the continuing market instability which we intend our direct sourcing strategy to mitigate.

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#### Vertically-Integrated and Scaled Operations Supported by a Dedicated Engineering Team
Our manufacturing operations for both Critical Materials and High-Power Microwave products are vertically integrated, enabling us to support our customers from engineering to production. Our technical expertise positions us to serve customers who need us to deliver scaled manufacturing of highly engineered components for the most demanding applications. Our dedicated team of multi-disciplinary engineers, who support our comprehensive in-house design and manufacturing capabilities, work collaboratively with customers early in their design cycles. Early participation and cooperation with customers often leads to the creation of difficult-to-replicate solutions, which then become integrated into our customers' underlying processes, making us the "supplier of record" for certain projects and providing a strong barrier to entry for our current or would-be competitors.

#### Difficult-to -Replicate Asset Base Paired with Specialized Production Capabilities
Between our two divisions, we operate six facilities totaling more than 600,000 square feet, which are dedicated to engineering, design, testing and manufacturing. Over the last few decades, our CMC division, through Elmet Tech, and our EMP division, through Microwave Techniques, have each developed their manufacturing base as one of their most important assets. Given the significant amount of investment required to create our manufacturing base as well as the scale of our operations, the cost to replicate what we own and operate creates a high barrier to entry, especially for U.S. competitors. We estimate that replicating and implementing our manufacturing base would require significant time and capital investment, with an estimated replacement value in excess of $1 billion. Both of our divisions offer specialized services critical to key customers and give us a path to winning in a competitive environment. For example, the 5,500-ton extrusion press in our Coldwater facility is only one of two operating refractory metal presses in the United States capable of shaping the types of difficult-to-work materials that are essential to the U.S. military's supply chain. We also have a spare, currently not operating, extrusion press in storage at our Coldwater facility. Within our EMP division, we are the only U.S.-owned and operated provider of 200-kilowatt ("kW") magnetron microwave generating apparatuses, which are essential to our industrial processing customers. Combined, we believe our established manufacturing base and specialized production capabilities create a significant competitive advantage.

#### Experienced Management Team with Proven History of Executing Successful Mergers and Acquisitions
Our leadership team has a strong track record of pursuing growth and driving long-term value through strategic acquisitions and investments. Since 2000, we have successfully acquired and integrated seven different businesses in the Critical Materials and High-Power Microwave technology sectors. These acquisitions have added production capabilities and technologies which complement our product offerings and expand our market reach and exposure.

Our acquisitions have played an integral role in shaping our business, and we expect to continue evaluating strategic opportunities in the future. We believe our track record, expertise and strategy help us supplement organic growth and maintain our competitive positioning as a leading provider of mission-critical components and materials for essential industries.

#### Our Growth Strategy
We are the sole U.S.-owned vertically integrated producer of tungsten and molybdenum in many of the programs in the market segments we serve. In addition to the fundamental products we produce and processes we control, such as extrusion and rolling, we are one of a handful of companies in the United States capable of Critical Materials and RF engineering and manufacturing, with the capacity and range of capabilities required to support multiple demanding applications. Our inclusion in over 100 current defense programs including aircraft, missiles, electronics and extruded products for submarine components underscores our strategic importance. We believe the accelerating U.S. reshoring efforts and increasing defense spending by the DoW support our growth prospects.

Our growth strategy is built on three tiers: (i) capitalize on the development and infrastructure we own and operate; (ii) use our technology to develop critical products and services for our customers in response to their needs; and (iii) identify select acquisitions which supplement the expertise we currently possess for the markets we serve. We provide products and services for the high temperature, high power and uniquely engineered material needs of our customers and their end users.

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#### Capitalizing On Development and Infrastructure
We believe that we are well placed to take advantage of current economic and geopolitical tailwinds through our substantial investments in research and development in our key industries. With the encouragement of the DoW, in the last six years we have invested more than $41.8 million into upgrading our manufacturing capabilities. The U.S. government and other North Atlantic Treaty Organization ("NATO") governments have repeatedly articulated the current need to restock their supplies of various munitions and other military hardware. According to The Guardian, as of July 2025, the United States had only 25% of all Patriot missile interceptors needed for the Pentagon's military plans. In January 2026, the DoW also established a new acquisition model with Lockheed Martin to more than triple PAC-3 Missile Enhancement Segment production. We believe this will lead to increased defense spending by these governments aggregating into billions of dollars. We have experience in providing critical components for these types of programs and have confidence we will be able to leverage our experience into similar new programs. Accordingly, as the United States and other NATO governments restock their conventional military capacities and develop new defensive systems, and as additional investments are made in nuclear energy reactors, we believe we are well-positioned to capture additional business.

We are currently included in approximately 100 different U.S. defense systems, and our sales team is highly focused on working with the DoW and their contractors on new programs. We believe the increasingly complex research at national laboratories such as Fermi and Los Alamos and others focused on energy, pharmaceutical, fusion and high energy physics research presents other significant opportunities. The need to electrify manufacturing processes to reduce reliance on carbon-based energy is driving increased investments in equipment, such as High-Power Microwave generators, necessary to explore these alternative technologies. Both High-Power Microwave components and Critical Materials play a substantial role in fission and fusion energy, as well as other basic energy systems. For example, research is continuing to progress regarding the use of High-Power Microwave systems in connection with green hydrogen energy production. Our components are well placed to take advantage of projected growth in both traditional and cutting-edge energy research and production. We are already a trusted supplier to advanced research institutions, and many of our components are already integrated into the operations of their research efforts. Our experience with Critical Materials, essential to the exploration and exploitation of space, will also benefit us as space operations increase. These Critical Materials provide dense shielding material for the protection of the delicate microwave components on satellites and mission sensitive aerospace technology.

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#### Leverage Our Expertise and Experience
Our expertise with molybdenum and tungsten has positioned us to leverage this experience with other Critical Materials. We have established a number of strategic relationships with non-PRC sources of highly sought after materials such as niobium, C-103, a high-performance niobium alloy comprised of niobium, hafnium, and titanium, ("C-103"), FS85, a high strength niobium alloy comprised of niobium, tantalum, tungsten, and zirconium ("FS85"), and others. All these materials show significant promise in aerospace and other similar demanding applications. We believe our ability to source these materials, extrude them in large billet form, forge them into workable form factors,

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and expertly machine the forged materials creates a high barrier to entry for potential competitors. As these specialized materials become further integrated into aerospace, military and energy use, we believe we can meet future demand. We expect to be able to leverage the anticipated growth in the use of these materials by being able to increase production of our products, thereby driving both our sales and margins. For example, we believe that our flowable alloys and pure metal powders are an advantage that will provide another source of high value products as additive manufacturing, such as 3D metal printing, matures and becomes ubiquitous. Rare earth minerals and specialized magnets, which are incorporated into most microwave systems, are also growing markets where we believe our engineering experience and know-how gives us a competitive advantage. Our engineers have the expertise to help our customers design products and components using these materials and specialized magnets to tune their High-Power Microwave components, making them more efficient and reducing energy losses, providing custom engineered manufacturing solutions to meet our customers' specific, and often first time, needs.

#### Continuing to Develop Specialized Technologies For Our Customers
Our research and design capabilities in both metallurgy and microwave technology enable us to build lasting relationships with our customer base. The customized solutions that we provide are difficult to replicate or reverse engineer, which establishes a degree of end user loyalty for, and reliance on, our products. Since our components are often integrated into customer designs, the commercial value of the components increases over time, which also promotes long-term growth and stability in our orderbook.

Our ability to design specific alloys for discrete functions is also a significant competitive strength. For example, our work in additive manufacturing has resulted in 20 U.S. and international patents and two pending patent applications grouped into six patent families addressing multiple aspects of successfully printing Critical Materials, such as tungsten, tungsten heavy alloy and other Critical Material-based alloys. Additive manufacturing using laser-based techniques requires a deep understanding of how Critical Materials melt and solidify. The printing parameters and alloy chemistry of successful alloys must be designed to minimize cracking and porosity which would degrade the physical properties of the material. By using materials science-based thermodynamic models and leveraging the more than seven decades of Critical Materials consolidation experience of our CMC division, we have designed experiments that have resulted in materials such as C-103 or FS85 meeting or exceeding the properties of traditionally processed materials. Likewise, our EMP division has developed an important improvement in current technology by reducing tile load failures in tile load components needed in heat distribution in High-Power Microwave systems. We have also successfully advanced the technology needed to produce 200kW of combined microwave generation, providing significant high-power options to the market.

#### Identifying and Integrating Select Acquisitions
We have successfully acquired and integrated a number of companies, and we believe we have a demonstrated track record of adding capabilities to supplement our expertise or fill in gaps. For example, in late 2023, we acquired the molybdenum and tungsten operations of H.C. Starck Solutions ("H.C. Starck") in the United States, supplementing our existing operations and vastly increasing our production capacity. Also, in 2023, we acquired Valvo Bauelemente GmbH ("Valvo") in Hamburg, Germany, expanding our reach in 2.45 GHz, WR284 (R32), WR340 (R26), and WR430 (R22) waveguide components and technology, and also allowing us to expand sales and opportunities in the United Kingdom and European Union. In November 2025, we closed a small tuck-in acquisition of Symphony Microwave Technologies LLC ("Symphony"), adding engineering capabilities, a product line and new customer relationships in our EMP division. We have a rigorous strategy of finding complementary materials and products to build out our capabilities, particularly in serving our key customers and industries. We believe there are many opportunities available in the market for both Critical Materials and High-Power Microwave. Our metrics generally require any potential acquisition to add market scope and be positioned to increase margins and profitability once they are integrated into our operations. We will continue to seek out acquisitions to enable us to serve our existing customers and the expected needs of new customers.

#### Our Challenges
Like any business, we face certain challenges. For example, a significant portion of our revenue is dependent on spending by various government departments and agencies, in particular, the DoW. Therefore, changes in the volume and relative mix of U.S. government spending could require us to realign our business strategy and could affect our operations and results. Policy shifts in strategies and priorities on homeland security, intelligence, defense-related programs and infrastructure could affect our customers and their demands for our products. In addition, uncertainty

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around the timing, extent, nature and effect of Congressional and other U.S. government actions (including the content and timing of passage of appropriations bills) may require us to direct our efforts in a different and less profitable area of the economy. Fiscal and budgetary constraints or spending caps on the discretionary budget for defense and non-defense departments and agencies generate uncertainty within a substantial portion of our markets and can be challenging to address.

Potential changes in international trade policies can also make our operations and those of our suppliers more expensive and can adversely affect our profitability. The PRC's recent restrictions on the export of tungsten have generated market dysfunction and have the potential to reduce global supply. This reduction of supply can increase our raw material costs and generate significant volatility in the pricing and availability of these materials. Tungsten is very sensitive to the PRC's control of the global supply chain, and this presents a challenge in the pricing of our products.

Revenue, net income and the timing of our cash flows depend on our ability to perform under our contracts and purchase orders in a timely manner. Our ability to perform is affected by multiple factors, including our ability to control the cost and availability of raw materials and components, the productivity and availability of skilled labor, the complexity of the work to be performed, our subcontractors' capacities and lead times, the durability of our equipment and tooling, and the lead times to replace or procure any necessary equipment. The infrastructure robustness of public utilities supporting our factories can also affect our operations. A disruption in any of the above can result in a reduction in our ability to perform our obligations and service our customers.

See "*Risk Factors*" for a discussion of these and additional challenges that we face in conducting our business.

As of December 31, 2025, we had approximately $53.5 million of debt principal outstanding (much of which required interest calculations based upon variable interest rates), including approximately $17.3 million of related-party debt and excluding a forgivable loan of $0.1 million. Changes to our revenue and cash flow from a slowdown of business would impose challenges to service our debt. For example, a substantial portion of our cash flow from operations could be dedicated to paying principal and interest on our debt, thereby reducing funds available for our acquisition strategy, capital expenditures or other purposes. We could also be vulnerable to changes in economic conditions or increases in prevailing interest rates which would also hamper our operations. If we are unable to obtain additional financing for acquisitions, capital expenditures or for other purposes, our growth strategy could be impaired and we would be less competitive in the markets we serve. See "*Risk Factors — The amount of debt we have outstanding, as well as any debt we may incur in the future, could have an adverse effect on our operational* and *financial flexibility."* and *"— Our variable rate Debt Facilities subject us to interest rate risk, which could cause our debt service obligations to increase significantly*."

#### Summary of Risks Factors
Our business and ability to execute our business strategy are subject to a number of risks of which you should be aware before you decide to buy our common stock. In particular, you should consider the following risks, which are discussed more fully in the section entitled "*Risk Factors*" in this prospectus:

*Risks Related to Our Business, Strategy and Industry*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A portion of our revenue is derived from the sale of defense-related products through various contracts and subcontracts and are subject to risks related to the U.S. government. These contracts may be suspended, cancelled or delayed, which could have an adverse impact on our revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Availability of, and volatility in the prices of, raw materials and energy prices and our ability to pass along increased costs to our customers could adversely affect our results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may fail to implement our strategic capital projects successfully, which could adversely impact our results of operations and keep us from achieving our goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There may be negative effects on our business if we are unable to retain our qualified management and employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our manufacturing processes are complex and capital intensive. They depend upon critical, high-cost equipment which is difficult or very expensive to replace. As a result, our profitability could be constrained due to our inability to substitute other means of production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Uncertain foreign trade relations and associated tariffs, as well as our reliance on international suppliers for certain raw materials, could adversely impact our business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We build products in which end market pricing is correlated to raw material input costs, which can be volatile and negatively impact earnings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Many of our customers are subject to significant fluctuations as a result of the cyclical nature of their industries and their sensitivity to general economic conditions, which could adversely affect their demand for our products and reduce our sales and profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be dependent on a limited number of large customers for current and future sales. The loss of any of these customers or the loss of market share by these customers could materially adversely affect our business, financial condition, results of operations and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be subject to work stoppages at our facilities or those of our principal customers and suppliers, which could seriously restrict the profitability of our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Because our industry is capital intensive and we have significant fixed and semi-fixed costs, our profitability is sensitive to changes in volume.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our growth strategy includes acquisitions, and we may not be able to identify attractive acquisition targets or successfully integrate acquired targets without impacting our business.

#### Risks Related to Intellectual Property, Information Technology and Security
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A cybersecurity incident impacting customer, employee, supplier or Company information, or Company systems or infrastructure, may have a material adverse effect on our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to protect the disclosure and use of our confidential information and trade secrets, the value of our products, services and technologies and our business and competitive position could be harmed.

*Risks Related to Legal, Compliance and Regulatory Matters*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Government contracts are subject to extensive regulation, and failure to comply with such regulations may have a material adverse impact on our financial condition and operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to significant government regulation for U.S.-controlled goods and technologies, which may cause us to incur significant expenses to comply with new or more stringent governmental regulation and may subject us to regulatory actions, which may adversely impact our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to extensive government regulations, and changes in laws or regulations or the manner of their interpretation or enforcement could adversely impact our financial performance and restrict our ability to operate our business or execute our strategies.

*Risks Related to Indebtedness; Other Financial and Accounting Risks*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have identified material weaknesses in our internal control over financial reporting. If we are unable to remediate these weaknesses or otherwise fail to maintain proper and effective internal controls, our ability to produce timely and accurate financial statements could be impaired, which could adversely affect our operating results, our ability to operate our business, our stock price and access to the capital markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Restrictions contained in our revolving credit facilities and other debt agreements may limit our ability to incur additional indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount of debt we have outstanding, as well as any debt we may incur in the future, could have an adverse effect on our operational and financial flexibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adverse business conditions could restrict our ability to generate cash and service our indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to maintain effective disclosure controls and procedures and internal control over financial reporting, our stock price and investor confidence in us could be materially and adversely affected.

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*Risks Related to This Offering and Our Securities*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our management team does not have experience running a public company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investors in this offering will experience immediate and substantial dilution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The market price of our common stock may be volatile, which could result in substantial losses for investors purchasing shares in this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There may not be an active trading market for our common stock, which may cause shares of our common stock to trade at a discount from the initial public offering price and make it difficult to sell the shares of common stock you purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are an "emerging growth company" and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our common stock less attractive to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will incur increased costs and become subject to additional regulations and requirements as a result of becoming a public company, which could lower our profits or make it more difficult to run our business.

#### Corporate History
We are a Delaware corporation with headquarters in Portland, Maine and founded on September 13, 2024, for the purpose of acquiring, owning and operating Elmet Tech and Microwave Techniques. On January 2, 2026, we completed a Reorganization (as defined below) of our corporate structure, as a result of which we now wholly own our two primary operating subsidiaries, Elmet Tech and Microwave Techniques (see "*Business — Corporate History and Reorganization*" below). We acquired our original interest in Elmet Tech, a company originally established in 1929, in 2015 and became Elmet Tech's majority member in 2021. In 2023, we acquired H.C. Starck's operating entities H.C. Starck Solutions Coldwater LLC and H.C. Starck Solutions Euclid LLC. These entities were renamed Elmet Coldwater LLC ("Elmet Coldwater") and Elmet Euclid LLC ("Elmet Euclid") in 2024. Also in 2024, all the operating assets of Elmet Coldwater and Elmet Euclid were transferred to Elmet Tech. Elmet Coldwater and Elmet Euclid now act as real estate holding companies. We have owned Microwave Techniques, which originally began operations in 1989, since 2000. In 2023, we acquired Valvo in Hamburg, Germany for Microwave Techniques. Poly Labs Solar LLC (d/b/a Elmet Solar) was acquired from its owners in July 2025 to develop a solar facility to deliver energy to the Lewiston facility. We followed up this acquisition with the acquisition of Symphony in November 2025. On October 1, 2025, our subsidiary, Anania & Associates, a Maine corporation ("A&A"), distributed its interests in Polymer Laboratories and Solutions LLC to its then individual stockholders (see "*Management's Discussion and Analysis of Financial Condition and Results of Operations Overview" and "— Recent Acquisitions and Divestitures — Recent Divestitures*").

#### Corporate Information
We were organized as a corporation under the laws of the State of Delaware on September 13, 2024. Our principal executive offices are located at 2 Portland Fish Pier, Suite 214, Portland, ME 04101, and our phone number is (207) 518-6791. We maintain a website at *https://www.theelmetgroup.com*. The reference to our website is intended to be an inactive textual reference only. The information contained on, or that can be accessed through, our website is not part of this prospectus, and investors should not rely on such information in deciding whether to purchase shares of our common stock.

#### Implications of Being an Emerging Growth Company and a Smaller Reporting Company
We qualify as an "emerging growth company" as defined under the Securities Act of 1933, as amended (the "Securities Act"). As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements that are otherwise applicable to public companies. These provisions include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• being permitted to present only two years of audited financial statements and only two years of related "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act");

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

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

In addition, an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this extended transition period. We will remain an emerging growth company until the earliest to occur of: (i) our reporting $1.235 billion or more in annual gross revenues; (ii) the end of fiscal year 2029; (iii) our issuance, in a three year period, of more than $1 billion in non-convertible debt; and (iv) the end of the fiscal year in which the market value of our common stock held by non-affiliates exceeds $700 million on the last business day of our second fiscal quarter.

We have elected to take advantage of certain of the reduced disclosure obligations and may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide to our stockholders may be different than the information you might receive from other public reporting companies in which you hold equity interests.

We are also a "smaller reporting company" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as our voting and non-voting common stock held by non-affiliates is less than $250 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter. Even after we cease to qualify as an "emerging growth company," certain of the exemptions available to us as an "emerging growth company" may continue to be available to us as a smaller reporting company, including: (1) not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act; (2) scaled executive compensation disclosures; and (3) the ability to provide only two years of audited financial statements, instead of three years.

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#### THE OFFERING

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| | |
|:---|:---|
|  **Common Stock Offered by Us** | 7,692,307 shares (or 8,846,153 shares if the underwriters' over-allotment option is exercised in full) on a firm commitment basis. |
|  **Common Stock to be Outstanding After this Offering** | 27,968,528 shares (or 29,122,374 shares if the underwriters' over-allotment option is exercised in full). |
|  **Over-Allotment Option** | We have granted the representative of the underwriters a 30-day option to purchase up to an additional 1,153,846 shares of our common stock at the initial public offering price to cover over-allotments, if any. |
|  **Use of Proceeds** | We estimate that the net proceeds to us from this offering, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, will be approximately $90.6 million, based on the assumed initial public offering price of $13.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus.<br> The net proceeds received by us from this offering will be used for (i) debt reduction, (ii) growth capital and (iii) working capital and general corporate purposes. See "*Use of Proceeds*." |
|  **Concentration of Ownership** | Upon completion of this offering, our executive officers and directors will beneficially own, in the aggregate, approximately 47.30% of the outstanding shares of our common stock. |
|  **Proposed Nasdaq Symbol** | We have applied to list our common stock on the Nasdaq Capital Market under the symbol "ELMT." |
|  **Risk Factors** | ***Investing in our common stock is speculative and involves a high degree of risk***. See "*Risk Factors*" beginning on page 19 and the other information in this prospectus for a discussion of the factors you should consider carefully before you decide to invest in our common stock. |
|  **Directed Share Program** | At our request, the underwriters have reserved up to 2% of the shares offered by this prospectus, for sale at the initial public offering price to certain of our directors, officers, and employees, as well as other parties related to The Elmet Group Co. Shares purchased through the directed share program will not be subject to a lock-up restriction, except in the case of shares purchased by any of our directors, executive officers or current stockholders, which shares will be subject to a 180-day lock-up restriction. The number of shares of our common stock available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. 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. One of the underwriters will administer our directed share program. See "*Certain Relationships and Related Party Transactions*" and "*Underwriting — Directed Share Program.*" |

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|:---|:---|
|  **Lock-Up** | In connection with this offering, our directors, officers and current holders of our common stock as of the effective date of this registration statement will enter into customary "lock-up" agreements in favor of the underwriters for a period of one hundred eighty (180) days from the date of this offering. We have agreed with the underwriters that, for a period of one hundred eighty (180) days from the closing of this offering, we will not (a) offer, sell, or otherwise transfer or dispose of, directly or indirectly, any capital stock or any securities convertible into or exercisable or exchangeable for capital stock; or (b) file or caused to be filed any registration statement with the Securities and Exchange Commission (the "SEC") relating to the offering of any capital stock or any securities convertible into or exercisable or exchangeable for capital stock. See "*Shares Eligible for Future Sale*" and "*Underwriting*." |
|  **Broker's Warrants** | Upon the closing of this offering, we will issue to Cantor, as structuring advisor, warrants entitling Cantor or their designees to purchase up to one and one half percent (1.5%) of the aggregate number of shares of our common stock we issue to investors in this offering. The warrants will be exercisable for a four-year period commencing six months following the commencement of sales of the common stock in this offering. The warrants will have an exercise price per share equal to 125% of the public offering price of our shares of common stock offered hereby. See "*Underwriting — Broker's Warrants*." |

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The number of shares of our common stock to be outstanding upon completion of this offering are based on 20,122,721 shares of our common stock outstanding as of the date of this prospectus and the expected vesting of 153,500 shares of restricted stock upon the consummation of this offering, and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 338,640 shares of common stock subject to vested stock appreciation rights ("SARs") issued under our Amended and Restated 2016 Unit Appreciation Rights Plan (the "2016 Plan") with a base price per SAR of $0.91;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 338,640 shares of common stock subject to unvested SARs issued under our 2016 Plan with a base price of $0.91 per SAR and which will vest upon the consummation of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 310,420 shares of common stock subject to unvested SARs issued under our 2016 Plan with a base price of $0.91 per SAR and which will vest and be net cash settled upon the consummation of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 457,390 shares of unvested restricted stock that will vest more than sixty days after the date of this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 17,500 shares of common stock reserved for issuance under our 2025 Equity Incentive Plan (the "2025 Plan").

Unless otherwise indicated, this prospectus reflects and assumes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of outstanding SARs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise by the representative of the underwriters of its over-allotment option; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no exercise of the Broker's Warrants.

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#### SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION
*The following table sets forth certain summary historical consolidated financial and other data for the periods ended and at the dates indicated below of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.). The following summary selected historical consolidated financial data as of and for the years ended December 31, 2025 and 2024 has been derived from our audited consolidated financial statements included elsewhere in this prospectus. The financial data set forth below should be read in conjunction with "Capitalization," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Unaudited Pro Forma Condensed Consolidated Financial Information" and the financial statements and notes thereto included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results that may be expected in the future.*

#### Consolidated Statements of Operations Data:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended<br> December 31,** | **For the Year Ended<br> December 31,** |
|  **($ in thousands)** | **2025** | **2024** |
|  Revenue | $201636 | $190440 |
|  Cost of goods sold | 160617 | 150161 |
|  Gross profit | 41019 | 40279 |
|  Gross margin % | 20.3% | 21.2% |
|  Operating expenses: |  |  |
|  General and administrative | 18925 | 16433 |
|  Research and development | 3357 | 3702 |
|  Sales and marketing | 6663 | 5931 |
|  Total operating expenses | 28945 | 26066 |
|  Operating income | 12074 | 14213 |
|  Other expense, net: |  |  |
|  Interest expense | 2613 | 3114 |
|  Interest expense – related party | 1797 | 1722 |
|  Other income, net | (231) | (206) |
|  Total other expense, net | 4179 | 4630 |
|  Income from continuing operations before taxes | 7895 | 9583 |
|  Income tax benefit | (45) | (135) |
|  Income from continuing operations | 7940 | 9718 |
|  (Loss) income from discontinued operations | (2398) | 5714 |
|  Net income | 5542 | 15432 |
|  Income from continuing operations attributable to noncontrolling interests | 1825 | 2214 |
|  (Loss) income from discontinued operations attributable to noncontrolling <br>interests | (652) | 1429 |
|  Net income attributable to noncontrolling interests | 1173 | 3643 |
|  Net income attributable to Anania & Associates stockholders | $4369 | $11789 |

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| | | |
|:---|:---|:---|
|  **Pro Forma Per Share Data (unaudited):** | **For the Year Ended<br> December 31, 2025** | **For the Year Ended<br> December 31, 2025** |
|  **Pro Forma Per Share Data (unaudited):** | **Pro<br>Forma<sup>(1)</sup>** | **Pro Forma<br>As Adjusted<sup>(2)</sup>** |
|  Net income (loss) | $7271 | $(1489) |
|  Net income (loss) per share |  |  |
|  Basic | $0.36  | $(0.05) |
|  Diluted | $0.36 | $(0.05) |
|  Weighted-average shares used in computing net income (loss) per share: |  |  |
|  Basic | 20122721 | 28598398 |
|  Diluted | 20377533 | 28598398 |

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(1) The pro forma net income, pro forma net income per share and the weighted-average shares used in computing pro forma net income per share give effect to the Reorganization. See "*Unaudited Pro Forma Condensed Consolidated Financial Information*" for more information on the pro forma adjustments.

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(2) The pro forma as adjusted net loss, pro forma as adjusted net loss per share and the weighted-average shares used in computing pro forma as adjusted net loss per share give effect to: (i) the Reorganization; (ii) the settlement of certain debt arrangements (see "*Use of Proceeds*" for descriptions of the debt expected to be settled in connection with the initial public offering); (iii) stock-based compensation expense of $12.6 million associated with stock-based awards, including restricted stock and SARs (with both service-based and performance-based vesting conditions), for which the service-based vesting condition was satisfied as of the offering date and for which the liquidity event-related performance-based vesting condition will be satisfied in connection with this offering; and (iv) the sale of 7,692,307 shares of our common stock in this offering, as if such events occurred as of the beginning of the period. See "*Unaudited Pro Forma Condensed Consolidated Financial Information*" for more information on the pro forma adjustments.

#### Consolidated Balance Sheet Data:

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  **($ in thousands)** | **Actual <br>Anania & <br>Associates and <br>Subsidiaries <br>(a/k/a The Elmet <br>Group Co.)** | **Pro<br>Forma<sup>(1)</sup>** | **Pro Forma<br> As Adjusted<sup>(2)(3)</sup>** |
|  Cash | $1759 | $1713 | $68918 |
|  Working capital | 48016 | 47652 | 52054  |
|  Total assets | 175646 | 181472 | 247823 |
|  Total liabilities | 115189 | 124613 | 104357  |
|  Common stock |  | 20 | 28  |
|  Additional paid-in-capital | 1516 | 15366 | 114788 |
|  Total stockholders' equity | $60457 | $56859 | $143466 |

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____________

(1) The pro forma consolidated balance sheet data gives effect to the Reorganization. See "*Unaudited Pro Forma Condensed Consolidated Financial Information*" for more information on the pro forma adjustments.

(2) Reflects, on a pro forma as adjusted basis, the pro forma adjustments described in footnote (1) above and (i) settlement of certain debt arrangements (see "Use of Proceeds" for descriptions of the debt to be settled in connection with the initial public offering); (ii) an increase to additional paid-in capital of $8.9 million and a decrease in retained earnings related to equity-based compensation expense of $12.6 million associated with stock-based awards, including restricted stock and SARs (with both service-based and performance-based vesting conditions) for which the service-based vesting conditions were satisfied as of December 31, 2025, and for which the liquidity event-related performance-based vesting condition will be satisfied in connection with this offering, as if each such event had occurred on December 31, 2025; and (iii) the issuance and sale of 7,692,307 shares of our common stock in this offering at an assumed public offering price of $13.00 per share (the midpoint of the range appearing on the front cover of this prospectus), and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us, excluding the impact associated with the value of the Broker's Warrants and the underwriter's over-allotment option. See "*Unaudited Pro Forma Condensed Consolidated Financial Information*" for more information on the pro forma adjustments.

(3) Each $1.00 increase or decrease in the assumed initial public offering price of $13.00 per share (the midpoint of the price range set forth on the cover page of this prospectus), would increase or decrease, as applicable, each of our pro forma as adjusted cash, working capital, total assets and total stockholder's equity by approximately $7.1 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 estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase or decrease of 1,000,000 in the number of shares offered by us would increase or decrease, as applicable, each of our pro forma as adjusted cash, working capital, total assets and total stockholder's equity by approximately $12.0 million, assuming that the assumed initial public offering price remains the same, and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. The pro forma as adjusted information discussed above is illustrative only and will adjust based on the actual initial public offering price and other terms of this offering.

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#### Consolidated Statements of Cash Flows Data:

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended<br> December 31,** | **For the Year Ended<br> December 31,** |
|  **($ in thousands)** | **2025** | **2024** |
|  Net cash provided by operating activities from continuing operations | $13512 | $22794 |
|  Net cash used in investing activities from continuing operations | (10607) | (6147) |
|  Net cash used in financing activities from continuing operations | (4925) | (16641) |
|  Effects of exchange rate changes on cash | 166 | (51) |
|  Cash at beginning of year – continuing operations | 3613 | 3658 |
|  Cash at end of year – continuing operations | 1759 | 3613 |

---

#### Non-GAAP Financial Measures:
The following table displays certain non-GAAP financial measures we believe are helpful in assessing our performance and interpreting our financial results. We believe these non-GAAP financial measures are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. We may use non-GAAP financial metrics in certain management compensation plans, debt covenants, internal budgetary decision making and other resource allocation decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure. For more information on non-GAAP financial measures and for a reconciliation to the most directly comparable GAAP financial measures, see "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Financial and Non*-GAAP *Operating Measures*."

#### Adjusted EBITDA and Adjusted EBITDA Margin

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended<br>December 31,** | **For the Year Ended<br>December 31,** |
|  **($ in thousands)** | **2025** | **2024** |
|  Revenue | $201636 | $190440 |
|  Net income | $5542 | $15432 |
|  (Loss) income from discontinued operations | (2398) | 5714 |
|  Income from continuing operations | 7940 | 9718 |
|  Income from continuing operations % | 3.9% | 5.1% |
|  Adjusted EBITDA | $23837 | $21250 |
|  Adjusted EBITDA Margin | 11.8% | 11.2% |

---

#### Adjusted Gross Profit and Adjusted Gross Profit Margin

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended<br> December 31,** | **For the Year Ended<br> December 31,** |
|  **($ in thousands)** | **2025** | **2024** |
|  Revenue | $201636 | $190440 |
|  Gross profit | $41019 | $40279 |
|  Gross profit margin | 20.3% | 21.2% |
|  Adjusted gross profit | $42032 | $40279 |
|  Adjusted gross profit margin | 20.8% | 21.2% |

---

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#### 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 fact contained in this prospectus, including, without limitation, statements regarding our future results of operations or financial condition, business strategy and plans, expansion plans and strategy, economic conditions, both generally and in particular in the regions in which we operate or plan to operate, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "consider," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will" or "would" or the negative of these words or other similar terms or expressions.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this prospectus primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled "*Risk Factors*" and elsewhere in this prospectus, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our market opportunities and the potential growth of those markets;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to execute our growth strategy and successfully acquire and integrate potential acquisition targets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future profitability, indebtedness, liquidity, access to capital and financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount of, and our ability to service, our current and future indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any inability to attract, train or retain employees with the requisite skills and experience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure by us or our employees to obtain and maintain necessary security clearances or certifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in U.S. government procurement, contract or other practices or the adoption by governments of new laws, rules, regulations and programs in a manner adverse to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the termination or nonrenewal of our government contracts and subcontracts, particularly those contracts with the U.S. government and DoW;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability and volatility in the prices of raw materials and energy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to remain in compliance with extensive laws and regulations that apply to our business and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increased expenses associated with being a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in estimates used in recognizing revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• internal system or service failures and security breaches, including cyber intrusions, ransom attacks or other information technology exposure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inherent uncertainties and potential adverse developments in legal proceedings, including litigation, audits, reviews and investigations, which may result in materially adverse judgments, settlements or other unfavorable outcomes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to obtain and/or maintain the listing of our common stock on Nasdaq;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the future trading prices of our common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other risks, uncertainties and factors set forth in this prospectus, including those set forth under "*Risk Factors,*" "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and "*Business*."

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 results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described 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 on information available to us as of the date of this prospectus. And while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on 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.

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#### RISK FACTORS
*An investment in our securities is speculative and involves a high degree of risk. You should carefully consider the risks described below, which we believe represent certain of the material risks to our business, together with the information contained elsewhere in this prospectus, before you decide to invest in our shares of common stock. Please note that the risks highlighted here are not the only ones that we may face. For example, additional risks presently unknown to us or that we currently consider immaterial or unlikely to occur could also impair our operations. In addition, the risks identified reflect the Company's beliefs about factors that could materially and adversely affect the Company and its securities in the future. References to past events are provided by way of example only and are not intended to be a complete listing of all risks, or a representation as to whether or not such factors have occurred in the past or are likely to occur in the future. If any of the following events occur or any additional risks presently unknown to us actually occur, our business, financial condition, results of operations and cash flows may be materially adversely affected. In that event, the trading price of our securities could decline and you could lose all or part of your investment.*

#### Risks Related to Our Business, Strategy and Industry
***A portion of our revenue is derived from the sale of defense-related products through various contracts and subcontracts and are subject to risks related to the U.S. government. These contracts may be suspended, canceled or delayed, which could have an adverse impact on our revenues.***

Because the U.S. government is the largest end user of some of our customers' products, representing a substantial majority of our total defense sales, we are exposed to many of the same regulatory schemes as our customers. U.S. government contracts are subject to termination by the government, either for convenience or for default in the event of our customer's failure to perform under the applicable contract. In the case of a termination for convenience, we could be entitled to reimbursement from our customers for our allowable costs incurred, termination costs and a reasonable profit. If terminated by the government as a result of our customer's default, we could be liable for payments made to us for undelivered goods or services, additional costs the government incurs in acquiring undelivered goods or services from another source, and any other damages it suffers.

In addition, a reduction in overall DoW or wider government spending, on an absolute or inflation-adjusted basis, because of shifting priorities, budget compromises or otherwise could adversely affect our business. Budget uncertainty, the growing U.S. national debt, the ability of the U.S. Congress to determine how to allocate the available resources and pass appropriations bills, the potential for U.S. government shutdowns, the use of continuing resolutions, and the federal debt ceiling can adversely affect our customers and our sales. If appropriations or grants are delayed, if federal spending is broadly reduced, or if a government shutdown were to occur and continue for an extended period, we could be at risk of reduced orders, program cancellations and other disruptions and nonpayment. When the U.S. government operates under a continuing resolution, new contract and program starts are restricted, and funding for our customers' programs may be unavailable, reduced or delayed. Any delays in the completion of future U.S. government budgets could delay procurement of the products we provide or the grants which we receive. Specifically, DoW's changes in funding priorities could reduce opportunities in existing programs and in future programs or initiatives where we intend to compete and where we have made investments. While we would expect to compete and be well positioned as the incumbent supplier on existing programs, we may not be successful and, even if we are successful, the replacement programs may be funded at lower levels or result in lower margins.

***Availability of, and volatility in the prices of, raw materials and energy prices and our ability to pass along increased costs to our customers could adversely affect our results of operations.***

The prices and availability of raw materials critical to our business and performance, specifically raw tungsten, molybdenum and niobium, are based on global supply and demand conditions. Certain raw materials used by us are only available from a limited number of suppliers, and it may be difficult to find alternative suppliers at the same or similar costs. While we strive to pass through the price of raw materials to our customers, we may not be able to do so in the future, and volatility in the prices of raw materials (including as a result of macroeconomic conditions and geopolitical events) may affect customer demand for certain components.

In addition, we, along with our suppliers and customers, rely on various energy sources for a number of activities connected with our business, such as the production and transportation of raw materials and finished components. The availability and pricing of these resources are subject to market forces that are beyond our control. For example,

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our operations in Hamburg, Germany have recently experienced a large increase in the price of ferrite due to supply chain issues caused by the ongoing military conflict in Eastern Europe and tariffs. There is no guarantee that these price increases can be passed along to our customers, and as a result could adversely affect our results of operations in Germany.

Furthermore, we are vulnerable to any reliability issues experienced by our suppliers in sourcing the materials that we purchase from them, which also are beyond our control. Our suppliers contract separately for the purchase of raw materials and energy resources, and our sources of supply could be interrupted should our suppliers not be able to obtain these materials due to higher demand or other factors that interrupt their availability (including as a result of a supplier's bankruptcy, macroeconomic conditions and geopolitical events).

In addition, the relationship between the United States and the PRC has recently faced increased challenges. Because the PRC possesses the world's largest tungsten and molybdenum reserves, and a significant majority of rare earth mineral mining, refining and production capacity, any actions that it may take to restrict or withhold tungsten, molybdenum or rare earth mineral products, such as magnets, could result in global shortages and harm our business. The tensions between the United States and the PRC have intensified as exemplified by the ongoing trade conflicts between the two countries, and there is significant uncertainty about the future relationship between the two countries with respect to trade policies, treaties, government regulations, and tariffs. For example, effective February 4, 2025, the PRC introduced new controls on the export of tungsten, and in October 2025, the PRC's Ministry of Commerce reiterated plans to continue stringent export license restrictions on tungsten into 2026 – 2027. While we do not purchase any tungsten raw materials sourced from the PRC, the controls had an immediate impact on the international tungsten market, affecting the global supply of tungsten and causing prices to surge over 800% in recent months, from $330 per metric ton unit on January 1, 2025, to over $3,000 per metric ton unit on March 31, 2026. The PRC has similarly announced plans for stringent export license restrictions on rare earth minerals and related compounds, metals and magnets, including the possible denial of licensure to any companies affiliated with foreign militaries. We currently source approximately 70% of the magnets used in our equipment from PRC sources. As a result of these export controls, the cost of production of our products may increase, and our operating margins could be reduced if we are unable to pass through the increase in tungsten or magnet prices to our customers. Restrictions on supply may mean that we are unable to fulfill orders in a timely manner, which could adversely affect our results of operations.

Energy, principally in the form of electricity and natural gas, is a significant manufacturing input to the production of our metals. Energy and utility prices, including electricity and water prices, and in particular prices for petroleum-based energy sources, are volatile. Long term macro-economic forecasts for energy demand driven by the anticipated need for datacenters to support artificial intelligence computing processes, are expected to add volatility to energy market pricing. Increased supplier and customer operating costs arising from volatility in the prices of energy sources, such as increased energy and utility costs and transportation costs, could be passed through to us, and we may not be able to increase our product prices sufficiently or at all to offset such increased costs.

The impact of any volatility on the prices of energy or the raw materials on which we rely, including the reduction in demand for certain components caused by such price volatility, could result in a loss of sales and profitability and adversely affect our results of operations.

***We may fail to implement our strategic capital projects successfully, which could adversely impact our results of operations and keep us from achieving our goals.***

From time to time, we undertake strategic capital projects in order to enhance, expand and/or upgrade our facilities and operational capabilities. Our ability to achieve the anticipated increased revenues or otherwise realize acceptable returns on these investments or other strategic capital projects that we may undertake is subject to a number of risks, many of which are beyond our control, including a variety of market, operational, permitting and labor-related factors. In addition, the cost to implement any given strategic capital project ultimately may prove to be greater than originally anticipated. If we are not able to achieve the anticipated results from the implementation of any of our strategic capital projects, or if we incur unanticipated implementation costs or delays, our financial condition and results of operations may be materially adversely affected.

For example, the new tungsten furnace scheduled to be installed in our Coldwater facility in the first quarter of 2026, which we expect to be operational in the first quarter of 2027, was originally ordered on June 18, 2024. Due to the long lead time to install such complex equipment, if we were to experience any delays in the installation process, such delays could have a negative impact on planned production capabilities and our ability to deliver our products to our customers within the time periods they expect, as well as our financial condition and results of operations.

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We periodically undertake maintenance activities, routine or otherwise, involving facilities and pieces of equipment that are key to our operations. It is possible that unanticipated maintenance needs, or unanticipated circumstances arising in connection with planned maintenance activities could result in equipment outages that are longer, or costs that exceed, those originally anticipated. Significant repair delays or unanticipated costs associated with these activities could have a negative impact on our financial condition and results of operations.

#### There may be negative effects on our business if we are unable to retain our qualified management and employees.
Our business and manufacturing processes are complex. We require highly skilled personnel with relevant industry and technical experience in the areas of management, product engineering, servicing and sales to effectively operate, and as such, we depend on our ability to recruit, retain and motivate our employees. Shortages in skilled labor and other labor market pressures currently are resulting in greater competition for skilled labor and increased labor costs in some instances. For example, we have experienced some difficulty finding qualified machinists to operate the complex machinery used within both our CMC and EMP divisions. Our operations could be adversely impacted if we fail to attract, develop, retain and motivate a sustainable workforce with the skills and in the locations we need to operate and grow our business.

At the time of this offering, we expect to carry "key-man" life insurance covering Michael Lee, our Chief Financial Officer, and Derek Fox, the President of our CMC division. The loss of key members of management and other personnel, particularly Peter V. Anania, our Chief Executive Officer and Chairman, could negatively impact our business. Mr. Anania is critical to the management of our Company and instrumental in the development of our strategic direction and growth plan, and should he stop working for us for any reason, finding a suitable replacement could take significant time and divert the attention of our management. Any unplanned turnover, or failure to develop adequate succession plans for key positions, could result in loss of technical or other expertise or institutional knowledge, delay or impede the execution of our strategic plans and priorities and, ultimately, negatively impact our business, financial condition, results of operations and cash flows.

***Our manufacturing processes are complex and capital intensive. They depend upon critical, high***-cost ***equipment which is difficult or very expensive to replace. As a result, our profitability could be constrained due to our inability to substitute other means of production.***

Due to the complexity of our manufacturing processes, it is possible that we could experience prolonged periods of reduced production due to unplanned equipment failures, and we could incur significant repair or replacement costs in the event of those failures. It is also possible that operations could be disrupted due to other unforeseen circumstances such as power outages, explosions, fires, floods, accidents and severe weather conditions. For example, on July 15, 2025, as a result of a catastrophic failure of the local utility's transformer, our CMC Euclid, Ohio facility experienced a significant external power event causing damage to our electrical switch gear and transformers. This electrical failure disrupted production and delayed our Euclid facility's shipments from July through September 2025. We implemented a recovery plan based on an aggressive shipment schedule, using rental equipment, working longer shifts and adding additional production days. Our recovery plan concluded in December 2025.

To remain competitive, we must make regular, substantial capital investments and changes to our manufacturing processes to lower production costs, improve productivity and manufacture new or improved products. We may not be in a position to take advantage of business opportunities or respond to competitive pressures if we fail to update, replace or make additions to our equipment or our manufacturing processes in a timely manner. The cost to repair or replace much of our equipment or facilities would be significant. Although we believe our current cash balance, along with our projected internal cash flows and available financing sources, will provide sufficient cash to support our currently anticipated operating and capital needs, if we are unable to generate sufficient cash to purchase and maintain the property, plants and equipment necessary to operate our business, we may be required to reduce or delay planned capital expenditures or to incur additional indebtedness.

#### Uncertain foreign trade relations and associated tariffs, as well as our reliance on international suppliers for certain raw materials, could adversely impact our business.
We currently source certain raw materials, in particular tungsten and niobium and to a lesser extent molybdenum, from international suppliers based principally in Vietnam, Spain and Chile. Import tariffs, taxes, customs duties and/or other trade restrictions and regulations imposed by the U.S. government on foreign countries, or by foreign countries on the United States, could significantly increase the prices we pay for certain raw materials, such as tungsten, molybdenum,

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aluminum and purchased components, that are critical to our ability to manufacture milled products and components for our customers. For example, the PRC's actual and threatened export controls had an immediate impact on the international tungsten market when announced and have affected the global supply of tungsten, causing prices to surge over 800% from January 1, 2025 to March 31, 2026. See "— *Availability of, and volatility in the prices of, raw materials and energy prices and our ability to pass along increased costs to our customers could adversely affect our results of operation.*" above. The international sourcing for these materials may also be hurt by health concerns regarding infectious diseases in countries from which these materials are purchased, adverse weather, natural disasters or geopolitical events. In addition, we may be unable to find a domestic or alternative international supplier to provide the necessary raw materials in the amounts we require on an economical basis. If the cost of our raw materials increases, or if we are unable to procure the necessary raw materials required to manufacture our products and components, then we could experience a negative impact on our operating results, profitability, customer relationships and future cash flows.

Moreover, our customers' businesses may be negatively affected by import tariffs, taxes, customs duties and/or other trade regulations imposed by the U.S. government on foreign countries or by foreign countries on the United States, which could, in turn, reduce our customers' demand for the components that we manufacture for them. Any reduction in customer demand for our components as a result of such tariffs, taxes, customs duties and/or other trade regulations, or as a result of the impact of infectious diseases, could have a material adverse impact on our financial position, results of operations, cash flows and liquidity.

Global trade policy continues to evolve, and the ultimate impact of recent developments with respect to U.S. tariffs is unclear. On February 20, 2026, the United States Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"). Following the Supreme Court's decision, the U.S. presidential administration announced its intention to invoke other laws to collect tariffs and announced new tariffs on imports from all countries, in addition to any existing non-IEEPA tariffs. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels, and whether further additional tariffs or other retaliatory actions may be imposed, modified, or suspended, and the impacts of such actions on our business. These and future changes in tariffs, trade policies, trade actions, or retaliatory trade measures in response, have resulted and may continue to result in additional costs and pricing pressures, supply chain disruptions, volatile or unpredictable customer spending patterns, and increased economic or geopolitical risks, which could adversely impact our future sales, business, financial condition, and results of operations, materially or in ways that we cannot predict.

#### We build products in which end market pricing is correlated to raw material input costs, which can be volatile and negatively impact earnings.
U.S. GAAP requires us to value inventory at the lower of cost or market. Our strategic metals inventory valuation is influenced by related metal ore pricing which can be volatile. If the market price of ore were to drop rapidly or materially, the market price of our metals products would be at risk of dropping, potentially triggering a required inventory valuation change, which could significantly reduce gross margins.

#### We are affected by developments in the industries in which our customers operate.
We derive our sales from customers in the following industry sectors: Aerospace, Defense and Government; Industrial; Medical; Semiconductor and Electronics; and Energy. Factors affecting any of these industries in general, or any of our customers in particular, could adversely affect us because our expected sales growth largely depends on the continued growth of our customers' businesses in their respective industries. These factors include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• intermittent demand from our customers for our products, which may cause our manufacturing capacity to be underutilized for periods of time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our customers' failure to successfully market their products, to gain or retain widespread commercial acceptance of their products or to compete effectively in their industries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loss of market share for our customers' products, which may lead to our customers reducing or discontinuing their purchase of our processes and solutions or to reduced prices, thereby exerting pricing pressure on us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• economic conditions in the markets in which our customers operate, in particular, the United States, including inflationary pressures and other negative impacts on economic conditions, as well as recessionary periods such as a global economic downturn;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our customers' decision to internally manufacture components that have traditionally been outsourced to us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product design changes or manufacturing process changes that may reduce or eliminate demand for the components we supply.

We expect that future sales will continue to depend on the success of our customers. If economic conditions and demand for our customers' products deteriorate, we may experience a material adverse effect on our business, financial condition, results of operations and cash flows.

***Many of our customers are subject to significant fluctuations as a result of the cyclical nature of their industries and their sensitivity to general economic conditions, which could adversely affect their demand for our products and reduce our sales and profitability.***

A substantial number of our key customers are in the same or adjacent industries. Each of these industries is cyclical in nature, influenced by a combination of factors which could have a negative impact on our business, including, among other things, periods of economic growth or recession, industry specific capital investment cycles, inflation, changes in applicable regulation, global geopolitical conditions, tariffs, rising interest rates and the strength or weakness of the U.S. dollar, and government spending on defense and research. We expect that these industries will remain highly cyclical. Future downturns in these industries could have an adverse effect on the prices at which we are able to sell our products, and our business, financial condition, results of operations and cash flows could be materially adversely affected.

Our exposure is heightened in the Industrial sector, specifically with original equipment manufacturers ("OEMs") and with respect to aftermarket molybdenum furnace materials. Demand for industrial processing products is becoming increasingly more price sensitive, with customers turning towards suppliers in regions producing lower cost products to improve profitability and price competitiveness. These types of products typically do not require lengthy qualification periods for new suppliers and face no geographic restrictions within their supply chains.

Our exposure is also heightened in the Aerospace industry, as some of our products are also subject to the highly cyclical nature of the commercial airline industry, with significant downturns in the past and sensitivity to such factors as fuel price increases, labor disputes, global economic conditions, availability of capital to fund new aircraft purchases and upgrades of existing aircraft and passenger demand. Any change in these factors could result in a further reduction in the amount of discretionary air travel and the ability of airlines to invest in new aircraft or to upgrade existing aircraft. These factors can also add to the challenges faced in the Industrial sector described above, as aerospace parts sometimes make use of molybdenum furnace materials.

Finally, in times when growth rates in our markets are lower, or negative, there may be temporary inventory adjustments by our customers that may negatively affect our business. For example, we have experienced customers building inventory in anticipation of increased demand, whereas in other periods, we have experienced decreased demand because our customers have had excess inventory.

***We depend on a limited number of suppliers for our raw materials, and the loss of one or more of these suppliers could disrupt our operations, increase our costs or otherwise adversely affect our business.***

Unlike many other businesses who deal in Critical Materials, we source over 99% of our raw Critical Materials from non-PRC sources. We source our tungsten concentrate from Masan Tungsten LLC in Vietnam and from EQ Resources Limited's tungsten mine in Spain. Similarly, we source a majority of our ammonium dimolybdate from Freeport-McMoRan Inc.'s Climax mine in Colorado, with the remainder supplied by Molibdenos y Metales SA ("Molymet") in Chile (see "*Business — Sources and Availability of Raw Materials*"). There are only a small number of other non-PRC source suppliers of raw Critical Materials. As a result, our business depends on a limited number of suppliers, and our operations could be disrupted if we lose a key supplier, experience delays or shortages in supply or face price increases from such suppliers. Any disruption in supply could negatively impact our ability to meet customer demand and may result in a loss of revenue and customer relationships.

If we were to lose a key supplier or otherwise experience delays or shortages in supply, we may be forced to purchase our raw Critical Materials on the spot market at higher prices than we currently pay or find substitute suppliers. There is no guarantee that alternative suppliers or the spot market would be able to meet our needs in a timely

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manner, on favorable terms, or at comparable quality and sourcing standards. If we are unable to obtain products from our existing suppliers or identify suitable substitutes on acceptable terms, our business, financial condition and results of operations could be materially and adversely affected.

***We may be dependent on a limited number of large customers for current and future sales. The loss of any of these customers or the loss of market share by these customers could materially adversely affect our business, financial condition, results of operations and cash flows.***

We depend on a limited number of major manufacturers for a substantial portion of our sales. For example, while no one customer accounted for more than 10% of our revenue in the fiscal year ended December 31, 2025, in the fiscal year ended December 31, 2024, our two largest customers, combined, accounted for approximately 15% of our sales, with our largest customer accounting for approximately 10% of our sales. Our financial performance depends in large part on our ability to continue to arrange for the purchase of our products, processes and solutions by these customers, and we expect these customers to continue to make up a large portion of our sales in the foreseeable future. The loss of all or a substantial portion of our sales to any of our large-volume customers could have a material adverse effect on our business, financial condition and results of operations by reducing cash flows and by limiting our ability to spread our fixed costs over a larger sales base. We may in the future make fewer sales to these customers for a variety of reasons, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loss of business relationship due to competition or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced or delayed customer requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the internal manufacturing of components that have been traditionally outsourced to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strikes or other work stoppages affecting production by our customers; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced demand for our customers' products, including, among others, as a result of inflationary pressures, elevated interest rates and/or geopolitical events.

We may be unable to realize sales represented by our awarded business, which could materially and adversely impact our business, financial condition, results of operations and cash flows.

The realization of future sales from awarded business is inherently subject to a number of important risks and uncertainties, including a lack of long-term commitments and production schedules with customers and anticipated new customers. Accordingly, we cannot assure you that we will realize any or all of the future sales represented by our awarded business. Any failure to realize these sales could have a material adverse effect on our business, financial condition, results of operations and cash flows.

***Most of our customers do not commit to long-term production schedules, which makes it difficult for us to schedule production accurately and achieve maximum efficiency of our manufacturing capacity.***

Most of our customers do not commit to long-term contracts or firm production schedules, and we have experienced variable lead-times in customer orders. Additionally, customers may change production quantities or delay production with little lead-time or advance notice. Therefore, we rely on and plan our production and inventory levels based on our customers' advance orders, commitments and/or forecasts as well as our internal assessments and forecasts of customer demand. The volume and timing of sales to our customers may vary due to, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variation in demand for or discontinuation of our customers' products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our customers' attempts to manage their inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• design changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our customers' manufacturing strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptive events in the markets in which our customers operate, including natural disasters and epidemics; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquisitions of or consolidation among customers.

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The variations in volume and timing of sales make it difficult to schedule production and optimize utilization of manufacturing capacity. This uncertainty may require us to increase staffing and incur other expenses in order to meet an unexpected increase in customer demand, potentially placing a significant burden on our resources. Additionally, an inability to respond to such increases in a timely manner may cause customer dissatisfaction, which may negatively affect our customer relationships.

Further, in order to secure sufficient production scale, we may make capital investments in advance of anticipated customer demand (including, in some instances, new customer demand). Such investments may lead to low utilization levels if demand forecasts change and we are unable to utilize the additional capacity. Because fixed costs make up a large proportion of our total production costs, a reduction in customer demand can have a significant adverse impact on our gross profits and margins and operating results. Additionally, we order materials and components based on customer forecasts and orders, and suppliers may require us to purchase materials and components in minimum quantities that exceed customer requirements, which may have an adverse impact on our gross profits and operating results. In the past, anticipated orders from some of our customers and anticipated new customers have failed to materialize and/or delivery schedules have been deferred as a result of changes in our customers' business needs, which has suppressed our results of operations in certain quarterly periods.

In some of our contracts, the terms and conditions of the agreements with our customers provide that they have the contractual right to unilaterally terminate our contracts with them without cause. In many cases, we must commit substantial resources in preparation for production under awarded customer business well in advance of the customer's production start date. If our customers terminate these contracts, our ability to obtain compensation from our customers for such termination is generally limited to the direct out-of-pocket costs that we incurred for raw materials and work-in-progress. Although we have the legal right to recover these costs, we cannot assure you that our results of operations will not be materially adversely impacted in the future if we are unable to recover these types of pre-production costs related to our customers' cancellation of awarded business. In addition, when anticipating production capacity requirements for a particular contract, we may defer other potential business to accommodate expected manufacturing demands, which could make it difficult to find alternative uses for facilities and other available resources, in the event of an unexpected contract termination.

***Our long and variable sales and development cycle makes it difficult for us to predict if and when a new product will be sold to customers.***

Our sales and development cycle, which is the period from the generation of a sales lead or new product idea through the development of the product and the recording of sales, may take several years, making it very difficult to forecast sales and results of operations. Our inability to accurately predict the timing and magnitude of sales of our products, especially newly introduced products, could affect our ability to meet our customers' product delivery requirements or cause our results of operations to suffer if we incur expenses in a particular period that do not translate into sales during that period, or at all. In addition, these failures would make it difficult to plan future capital expenditure needs and could cause us to fail to meet our cash flow requirements.

#### Our new product development efforts may not be successful, which could result in a reduction in our sales and earnings.
We may experience difficulties that could delay or prevent the successful development of new products or product enhancements, and new products or product enhancements may not be accepted by our customers. Because it is difficult to predict the amount of time required and the costs involved in achieving certain research, development, and engineering objectives, the development expenses we incur may exceed our cost estimates and estimated product development schedules may be extended. Furthermore, any new products we develop may not generate sales sufficient to offset our costs to develop these products. If any of these events occur, our sales and profits could be materially adversely affected.

#### Some of our contracts contain late delivery penalties.
Our failure to deliver our products in a timely manner, whether due to supplier and supply chain problems, labor availability, delays in development schedules, manufacturing difficulties, similar schedule-related events or otherwise, may trigger late delivery penalties pursuant to certain of our contracts, which could materially adversely affect our business, financial condition and results of operations and cash flows. While no significant penalties have been incurred to date, the risk factors described herein may cause future deliveries to be delayed and may cause us to incur such significant penalties in the future.

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#### We may not be able to maintain our manufacturing, engineering and technological expertise.
The markets for our processes and solutions are characterized by changing technology and evolving process development. The continued success of our business will depend upon our ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hire, retain and expand our pool of qualified engineering and trade-skilled personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain technological leadership in manufacturing Critical Materials components and High-Power Microwave systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• implement new and expand upon current robotics, automation and tooling technologies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anticipate or respond to changes in manufacturing processes in a cost-effective and timely manner.

We cannot be certain that we will develop the capabilities required by our customers in the future. The emergence of new technologies, industry standards or customer requirements may render our equipment, inventory or processes obsolete or uncompetitive. We may have to acquire new technologies and equipment to remain competitive. The acquisition and implementation of new technologies and equipment may require us to incur significant expense and capital investment, which could reduce our margins and affect our operating results. When we establish or acquire new facilities, we may not be able to maintain or develop our manufacturing, engineering and technological expertise due to a lack of trained personnel, effective training of new staff or technical difficulties with machinery. Failure to anticipate and adapt to customers' changing technological needs and requirements or to hire and retain a sufficient number of engineers and maintain manufacturing, engineering and technological expertise may have a material adverse effect on our business, financial condition, results of operations and cash flows.

#### Entering new markets, either organically or via acquisition, poses new competitive threats and commercial risks.
As we look to expand into new markets, such as fragmentation products for the defense industry, border security detection and products associated with lab-grown diamonds, either organically or via acquisition, we expect to diversify our sales by leveraging our development, engineering and manufacturing capabilities in order to service these additional opportunities. The manufacturing of technically challenging parts and components for other industries carries additional risk of failure, increased expenses and reduced margins. Such diversification requires investments and resources that may not be available as needed. Furthermore, even if we sign contracts in new markets, we cannot guarantee that we will be successful in leveraging our capabilities into these new markets and thus in meeting the needs of these new customers and competing favorably in these new markets. If these new customers experience reduced demand for their products or financial difficulties, our future prospects will be negatively affected as well.

***We may be subject to work stoppages at our facilities or those of our principal customers and suppliers, which could seriously restrict the profitability of our business.***

Between our two divisions, as of April 1, 2026, we had approximately 540 active employees, of which approximately 2.7% were located outside the United States. Approximately 16.5% of our workforce is covered by our collective bargaining agreement ("CBA") with the International Brotherhood of Teamsters ("Teamsters"). We recently renegotiated this CBA, which expires on May 15, 2028, and covers approximately 89 Teamster-represented full-time employees at our Lewiston, Maine facility.

After the expiration of our CBA, the agreement remains in effect until terminated by either party by sixty days' written notice. After termination, the union may authorize either a strike or a lock-out. Labor disputes could lead to a strike, lockout or other work stoppage by the employees covered by the CBA, and could have a material adverse effect on production at one of our facilities and, depending upon the length of such dispute or work stoppage, on our operating results. There can be no assurance that we will succeed in obtaining a new collective bargaining agreement to replace the current CBA when it expires on May 15, 2028.

In addition, many of our customers have unionized work forces. Any strikes, work stoppages or slowdowns experienced by other defense contractors, aircraft manufacturers, airlines or aerospace suppliers, general industry or other customers could reduce our customers' demand for our products or prevent us from completing production of our products. Such delays can cause us to incur increased costs, delay our production schedule and otherwise result in an adverse impact on our business.

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***If our subcontractors fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially adversely affected.***

Many of our contracts involve subcontracts with other companies upon whom we rely to manufacture a portion of the goods or perform a portion of the services we must provide to our customers. There is a risk that we may have disputes with our subcontractors, including disputes regarding the quality and timeliness of work performed by a subcontractor, or customers could raise concerns about a subcontractor. Failure by our subcontractors to satisfactorily provide, on a timely basis, the agreed-upon supplies or goods or perform the agreed-upon services may materially adversely affect our ability to perform our obligations to our customers and could result in the assessment of late delivery penalties or cancellation of purchase orders. Subcontractor performance deficiencies could result in a customer terminating our contract for cause or could otherwise result in our default under the applicable contract. A termination for cause or other default could expose us to liability, damage our reputation and substantially impair our ability to compete for future contracts and orders.

#### We build many products to customer specifications which increases the risk of building excess inventory that could negatively impact earnings.
Our product offerings are broad, and our production times can take months, due to the multiple production stages required to take Critical Materials from raw materials to final machined products and the long lead time required to obtain certain components such as rare earth magnets. Furthermore, our products are often specially designed for customer needs. As a result, if our production plans or our build rates are inaccurate in specifications or quantities needed, we are at risk of producing excess inventory. In addition, if we elect to build excess inventory in anticipation of demand, we are at risk of holding excess and aged inventory if such demand does not occur. Should any of the above occur, it could adversely impact our business, financial condition, results of operations and cash flows.

#### Access to consigned metals may restrict our operations.
We use tungsten, molybdenum, niobium and other Critical Materials in the production of some of our products. We obtain approximately 85% of our molybdenum supply from consignors under consignment agreements. The consignors retain ownership of the metals and charge us fees based on the amounts we consign and the period of consignment. Because we do not control the consigned inventory, we may not be able to access the inventory to meet our forecasted needs, which could adversely impact our results of operations. In addition, if we do not use our consigned molybdenum supply within a specified period, the consignor may charge us for the unused material. A significant decline in demand for our molybdenum products could result in excess molybdenum inventories, which could adversely affect our results of operations.

***Our growth strategy includes acquisitions, and we may not be able to identify attractive acquisition targets or successfully integrate acquired targets without impacting our business.***

Acquisitions have played a key role in our growth strategy, and we expect to continue to grow through acquisitions in the future. We expect to continue evaluating potential strategic acquisitions of businesses, assets and product lines. However, we may not be able to identify suitable candidates, negotiate appropriate or favorable acquisition terms, have sufficient available cash, obtain financing that may be needed to consummate such transactions or complete proposed acquisitions. There is regular and significant competition for acquisition and expansion opportunities in our businesses, including from larger companies, private equity firms and others capable of submitting more competitive bids, which may increase the cost of any acquisition or result in the loss of attractive acquisition targets.

In addition, acquisitions involve numerous risks, including: (i) incurring the time and expense associated with identifying and evaluating potential acquisitions and negotiating potential transactions, resulting in management's attention being diverted from the operation of our existing business; (ii) using estimates and judgments to evaluate credit, operations, funding, liquidity, business, management and market risks with respect to the target entity or assets; (iii) litigation relating to an acquisition, particularly in the context of a publicly held acquisition target, could require us to incur significant expenses or result in the delaying or enjoining of the transaction; (iv) failing to properly identify an acquisition candidate's liabilities, potential liabilities or risks; and (v) not receiving required regulatory approvals or such approvals being delayed or restrictively conditional. In addition, any acquisitions could involve the incurrence of substantial additional indebtedness or dilution to our stockholders through additional financings, which may not be

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available on satisfactory terms. We cannot assure you that we will be able to successfully integrate any acquisitions that we undertake or that such acquisitions will perform as planned or prove to be beneficial to our operations and cash flows. Any such failure could seriously harm our financial condition, results of operations and cash flows.

We routinely evaluate potential acquisition candidates and engage in discussions and negotiations regarding potential acquisitions; however, even if we execute a definitive agreement for an acquisition, there can be no assurance that we will consummate the transaction within the anticipated closing timeframe, or at all. Further, acquisitions typically involve the payment of a premium over book and market values for the target business or assets and, therefore, some dilution of our tangible book value and/or earnings per common share may occur in connection with any future transaction.

#### Because our industry is capital intensive and we have significant fixed and semi-fixed costs, our profitability is sensitive to changes in volume.
The property, plants and equipment needed to produce components for our customers and provide our processes and solutions can be very expensive. We must spend a substantial amount of capital to purchase and maintain our properties, plants and equipment. We believe our current cash balance, along with our projected internal cash flows and available financing sources, will provide sufficient cash to support our currently anticipated operating and capital needs. Notwithstanding our current belief, if we are unable to generate sufficient cash to purchase and maintain the property, plants and equipment necessary to operate our business, we may be required to reduce or delay planned capital expenditures or to incur additional indebtedness.

***Any significant delay or inability to successfully expand our operations in a timely and cost-effective manner could materially adversely affect our business, financial condition, results of operations and cash flows.***

Over the last few years, we have undertaken capital projects associated with expanding our production capacity and capability, focused within the United States. Many of these projects have been funded through grants and other programs sponsored by the U.S. government as part of its reshoring efforts for Critical Materials. For example, over the last six years, we have invested more than $41.8 million into upgrading our manufacturing facilities and capabilities, all of which was funded by grants and other programs sponsored by the U.S. government. This includes the most recent $5.1 million strategic order for the U.S. Navy to develop domestic extrusion capabilities for Inconel<sup>®</sup> and Monel<sup>®</sup>, two high-performance superalloys. This order is part of a broader collaboration with the U.S. Navy, Maritime Industrial Base Program, and BlueForge Alliance to develop and deploy assets utilizing these superalloys. Should this funding be eliminated or drastically reduced, it could have a significant effect on our ability to expand our operations in a cost-effective manner. These projects place a significant demand on management and operational resources.

Our success in expanding our operations in a cost-effective manner depends upon numerous factors including continued funding through grants and other U.S.-sponsored programs, the ability of management to ensure that the necessary resources are in place to properly execute these projects, our ability to obtain the necessary internal and customer qualifications to produce materials from our facilities and our ability to operate our facilities to maximize the potential opportunities with minimal impacts to our existing operations. For example, while we expect to continue our expansion of operations in Germany, due to the location of our current facility in Hamburg, we may need to relocate the facility in order to expand. There is no guarantee that we would be able to find a new facility that meets our needs within Hamburg, which could adversely impact employee retention and cause delays in operations. If we are not able to achieve the anticipated results from our capital expansion projects, or if we incur unanticipated delays, or excess costs, our financial condition and results of operations may be materially adversely affected.

***Our results would be negatively affected if we fail to develop new and innovative processes, or if customers in our market do not accept them.***

Our processes must be kept current to meet our customers' needs. To remain competitive, we therefore must develop new and innovative processes on an ongoing basis. If we fail to make innovations or the market does not accept our new processes, our sales and results of operations will suffer. We make significant investments in the research and development of new processes; however, these expenditures may not always result in processes that will be accepted by the market. To the extent that customers do not adopt a new process or product that we have devoted resources to develop, whether as a function of the process or the business cycle, we will have increased expenses without significant sales to offset such costs. Failure to develop successful new processes may also cause potential customers to choose to work with competitors in developing and producing their processes and products.

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***If we experience delays or interruptions in our manufacturing processes, including interruptions due to factors outside of our control, such disruptions could lead to customer dissatisfaction and harm our reputation.***

The manufacture of many of our products is a highly exacting and complex process. If we encounter disruptions to our manufacturing processes due to equipment malfunction, human error or the failure to follow specific protocols, specifications and procedures, supply chain interruptions, natural disasters, health pandemics, labor unrest, or otherwise, it could limit our ability to fulfill orders or impact product quality or performance. This limitation could result in significant costs to and liability for us that could have a material adverse effect on our business, financial condition or results of operations. It could also result in negative publicity and damage to our reputation, which could adversely affect product demand and customer relationships.

Our operations depend on the continued and efficient functioning of our facilities, including critical equipment. If our operations, particularly one of our manufacturing facilities, were to be materially disrupted for any reason, such disruption may not be covered by our current insurance policies and we may be unable to effectively meet our obligations to or demand from our customers, which could cause our customers to seek alternative suppliers and adversely affect our business, financial condition, results of operations, cash flows and stock price. For example, on July 15, 2025, as a result of a catastrophic failure of the local utility's transformer, our CMC Euclid, Ohio facility experienced a significant external power event causing damage to our electrical switch gear and transformers. This electrical failure disrupted production and delayed our Euclid facility's shipments from July through September 2025. We implemented a recovery plan which included an aggressive shipment schedule using rental equipment, working longer shifts and adding additional production days. We were able to conclude these recovery actions by December 31, 2025. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Cost of Goods Sold and Gross Profit.*"

#### Our international operations are subject to risks inherent in such activities.
We have operations in Germany. In fiscal year 2025, approximately 1.4% of our sales were generated by our international operations in Germany.

Our international operations are subject to the risks inherent in such activities such as: currency devaluations, logistical and communication challenges, costs of complying with a variety of foreign laws and regulations, greater difficulties in protecting and maintaining our rights to intellectual property, difficulty in staffing and managing geographically diverse operations, acts of terrorism or war or other acts that may cause social disruption which are difficult to quantify or predict, and general economic conditions in these foreign markets. Our operations in Germany may be negatively impacted by changes in government policies, such as changes in laws and regulations, restrictions on imports and exports, sources of supply, duties or tariffs, the introduction of measures to control inflation, and changes in the rate or method of taxation. To date we have not experienced significant difficulties with the foregoing risks associated with our international operations.

In addition, we could be adversely affected by violations of the Foreign Corrupt Practices Act ("FCPA") and similar worldwide anti-bribery laws. The FCPA and similar anti-bribery laws in other jurisdictions generally prohibit companies and their intermediaries from making improper payments to non-U.S. officials for the purpose of obtaining or retaining business. While policies mandate compliance with these anti-bribery laws, we operate in many parts of the world that have experienced governmental corruption to some degree and, in certain circumstances, strict compliance with anti-bribery laws may conflict with local customs and practices. We cannot assure that our internal controls and procedures will always protect us from the reckless or criminal acts committed by our employees or agents. If we are found to be liable for FCPA violations or other anti-bribery laws, we could suffer from criminal or civil penalties or other sanctions, which could have a material adverse effect on our business.

#### Our current and future insurance coverage may not provide adequate protection from losses.
We have maintained various forms of insurance, including insurance covering claims related to our properties and risks associated with our operations. Our existing property and liability insurance coverages contain exclusions and limitations on coverage. From time-to-time, in connection with renewals of insurance, we have experienced additional exclusions and limitations on coverage, larger self-insured retentions and deductibles and significantly higher premiums. As a result, in the future, our insurance coverage may not cover claims to the extent that it has in the past, and the costs that we incur to procure insurance may increase significantly, either of which could have an

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adverse effect on our results of operations. If we are required to cover the costs of business losses without insurance reimbursements, we may choose to pursue litigation to recover the amounts of such business losses from potentially responsible parties or absorb such losses, both of which could adversely impact our results of operations.

#### We provide benefits to active employees for our unionized workforce, including defined benefit pension plans, which could cause us to incur unplanned liabilities.
We have obligations to pay for substantial health and pension benefits to active employees through our relationship with the Teamsters and their pension fund. In addition, a portion of the employees represented by the Teamsters are covered by defined benefit pension plans. Many domestic and international competitors do not provide defined benefit plans, and other international competitors operate in jurisdictions with government sponsored health care plans that may offer our competitors a cost advantage. A decline in the value of plan investments in the future, defaults by contributing employers, an increase in costs or liabilities, or unfavorable changes in laws or regulations that govern pension plan funding could materially change the timing and amount of our required pension funding. Further, our required recurrent contributions to these plans could unexpectedly increase during the term of a collective bargaining agreement due to ERISA laws that require additional contributions to be made when a pension fund enters into critical status, which may occur for reasons that are beyond our control. We may be required by law to fulfill our pension withdrawal liability with respect to any multiemployer pension plans from which we may withdraw or partially withdraw. Our potential withdrawal liability will increase if a multiemployer pension plan in which we participate has significant underfunded liabilities. Any unplanned or greater than expected multiemployer pension liabilities, or any requirement to accelerate or increase pension contributions in the future, could have a material adverse effect on our business, financial condition, results of operations and cash flows.

#### Risks Related to Intellectual Property, Information Technology and Security
***A cybersecurity incident impacting customer, employee, supplier or Company information, or Company systems or infrastructure, may have a material adverse effect on our business, financial condition and results of operations.***

Increased global information technology ("IT") threats, vulnerabilities and a rise in sophisticated and targeted international computer crime pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data. We believe that we face the threat of such cyberattacks due to the defense markets we serve, the refractory metal products we manufacture, the locations of our operations and global interest in our technology. Due to the evolving nature of cybersecurity threats, the scope and impact of any incident cannot be predicted.

In the conduct of our business, we collect, use, transmit, store and report data on information systems owned by us or supported or hosted by third parties, and interact with customers, vendors and employees. We and third parties upon whom we rely to host or protect our data, facilities and IT systems may be vulnerable to cybersecurity threats and future cybersecurity incidents. Despite our and their security measures, the IT systems and infrastructure of the Company and third parties who host or secure our data may be vulnerable to customer viruses, cyber-attacks, harmful malware or ransomware, denial-of-services attacks and other attacks, which may affect business continuity and threaten the availability, confidentiality and integrity of our systems and information. Cybersecurity incidents can also include employee or personnel failures, fraud, phishing or other social engineering attempts or other methods to cause confidential information, payments, account access or access credentials, or other data to be transmitted to an unintended recipient. Cybersecurity threat actors also may attempt to exploit vulnerabilities that exist in software, including software commonly used by companies in cloud-based services and bundled software. Any such threat or incident could compromise our networks and those of third parties, and the information stored there could be accessed, publicly disclosed, lost or stolen. A cybersecurity incident or any attacks impacting our systems or data could interrupt or damage our operations or harm our reputation, resulting in a loss of sales, operating profits, and assets, including major disruptions to business operations, loss of intellectual property, release of confidential information, alteration or corruption of data or systems, costs related to remediation or the payment of ransom, litigation including individual claims or consumer class actions, commercial litigation and administrative, civil or criminal investigations or actions, regulatory intervention and sanctions or fines, investigation and remediation costs and possible prolonged negative publicity. For example, in February 2026, our EMP division suffered a ransomware attack through what we believe to be a firewall vulnerability. The ransomware attack caused us to lose access to the data contained on certain servers in our EMP division network for a brief period of time before we were able to restore the data from unaffected backups and expel the threat actor from our network. While we have taken significant remedial actions

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to attempt to inhibit the success of similar attacks in the future, including the implementation of enhanced network security features and testing, multifactor authentication, increased messaging regarding cybersecurity awareness, and increased employee training, there is always a risk of successful intrusions or attacks, and any intrusions or attacks could pose a risk of undetected data loss or theft that could later be used to harm us. See "*Business — Recent Developments — Cybersecurity Incident*."

These cybersecurity threats exist with respect to the IT systems of our lenders, suppliers, consultants, advisers, and other third parties with whom we conduct business, including the U.S. government. Cyber-attacks, vulnerabilities and disruptions impacting those systems could result in the loss, theft or disclosure of our confidential, proprietary or personal information or intellectual property and could also interrupt or damage our operations, harm our reputation and subject us to legal claims. Although we maintain a cyber insurance policy, which in the case of the phishing attack discussed above was able to cover a portion of the losses, there is no guarantee that such coverage will be sufficient to address costs, liabilities and damages we may incur in connection with a future cybersecurity incident or that such coverage will continue to be available on commercially reasonable terms or at all.

***If we are unable to protect the disclosure and use of our confidential information and trade secrets, the value of our products, services and technologies and our business and competitive position could be harmed.***

In addition to patent protection, we also rely on other intellectual property rights, including trade secrets, know-how, and/or other proprietary information that is not patentable or that we elect not to patent. However, trade secrets can be difficult to protect, and some courts are less willing or unwilling to protect trade secrets. We generally enter into confidentiality and inventions assignment agreements with our employees, consultants and applicable third parties upon their commencement of a relationship with us. However, we cannot guarantee that we have entered into such agreements with each party that may have or have had access to our trade secrets or proprietary technology and processes, and we may not enter into such agreements with all employees, consultants and third parties who have been involved in the development of our inventions. Although we generally require all of our employees, consultants, advisors and any third parties who have access to our proprietary know-how, information, or technology to enter into confidentiality agreements, we cannot provide any assurances that all such agreements have been duly executed, and any of these parties may breach the agreements and disclose our proprietary information, including our trade secrets.

In addition, despite the protections we place on our intellectual property and our other proprietary rights, monitoring unauthorized use and disclosure by employees, consultants and other third parties who have access to such intellectual property or other proprietary rights is difficult, and we do not know whether the steps we have taken to protect our intellectual property or other proprietary rights will be adequate. Therefore, we may not be able to prevent the unauthorized disclosure or use of our technical knowledge or other trade secrets by such employees, consultants, advisors or third parties, despite the existence of our protections, including non-disclosure and use restrictions. These agreements may not provide meaningful protection against the unauthorized disclosure or use or of our trade secrets, know-how, or other proprietary information in the event the unwanted use is outside the scope of the provisions of the contracts or in the event of any unauthorized use, misappropriation or disclosure of such trade secrets, know-how or other proprietary information that we fail to detect. There can be no assurances that such employees, consultants, advisors or third parties will not intentionally or unintentionally breach their agreements with us, that we will have adequate remedies for any breach, or that our trade secrets will not otherwise become known or independently developed by third parties, including our competitors. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor, we would have no right to prevent them, or those to whom they communicate it, from using that information to compete with us. In addition to contractual measures, we try to protect the confidential nature of our proprietary information by maintaining physical security of our premises and electronic security of our information technology systems. Such security measures may not, for example, in the case of misappropriation of a trade secret by an employee, consultant or other third party with authorized access, provide adequate protection for our proprietary information. Our security measures may not prevent an employee, consultant, or other third party from misappropriating our trade secrets and providing them to a competitor, and recourse we take against such misconduct may not provide an adequate remedy to protect our interests fully.

If any of our trade secrets were to be disclosed to or independently developed by a competitor, our competitive position would be harmed. The exposure of our trade secrets and other proprietary information would impair our competitive advantages and could have a material adverse effect on our business, financial condition, results of operations and prospects. In particular, a failure to protect our proprietary rights may allow competitors to copy our

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products, services or technologies, which could adversely affect our pricing and market share. Unauthorized parties may also attempt to copy or reverse engineer certain aspects of our products, services or technologies that we consider proprietary. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our trade secret rights and related confidentiality, non-disclosure and non-use provisions, and outcomes of such litigation are unpredictable. Enforcing a claim that a party illegally disclosed, used or misappropriated a trade secret can be difficult, expensive and time-consuming, and the outcome is unpredictable. While we use commonly accepted security measures, trade secret violations are often a combination of federal and state law in the United States, and the criteria for protection of trade secrets can vary among different jurisdictions. If the steps we have taken to maintain our trade secrets are deemed inadequate, we may have insufficient recourse against third parties for misappropriating the trade secret. In addition, some courts are less willing or unwilling to protect trade secrets, and agreement terms that address non-competition are difficult to enforce in many jurisdictions and might not be enforceable in certain cases. Finally, even if we were to be successful on the enforcement of our claims, we may not be able to obtain adequate remedies.

It is also possible that others may independently develop information or technologies that are the same as or similar to our trade secrets or other proprietary technologies and develop products, services or technologies without obtaining access to our trade secrets or other proprietary information, in which case we could not assert any intellectual property rights, including trade secret rights, against such parties in a manner that could prevent legal recourse by us. If we fail to obtain or maintain trade secret protection, or if any of our confidential or proprietary information, such as our trade secrets, were to be disclosed or used by others without our consent or otherwise misappropriated, or if any such information was independently developed by a competitor, or if our competitors obtain our trade secrets or independently develop products, services or technologies that are the same as or similar to ours, our competitive market position could be materially and adversely harmed.

#### We may not be able to adequately protect our intellectual property.
We own valuable intellectual property, including trade secrets, patents, trademarks and copyrights. Our intellectual property protects our investments in technological innovation, research and development and plays an important role in maintaining our competitive position in the markets we serve. Our intellectual property may be infringed or misappropriated by our employees, our competitors or other third parties. The pursuit of remedies for infringement or misappropriation of intellectual property is expensive and uncertain. Additionally, our competitors may develop technologies of their own that are similar or superior to our proprietary technologies, or design around our patents, to lawfully avoid our intellectual property rights or challenge the validity of our patents in court or administrative proceedings. A failure to sufficiently secure or successfully enforce our intellectual property rights could adversely affect our business and competitive position.

***Obtaining and maintaining patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.***

Governmental patent agencies require compliance with a number of procedural, documentary, fee payment and other similar provisions during the patent application process. In addition, periodic maintenance fees, renewal fees, annuity fees and various other government fees on issued patents often must be paid to patent agencies over the lifetime of the patent and/or applications and any patent rights we may obtain in the future. While an unintentional lapse of a patent or patent application can in many cases be cured by payment of a late fee or by other means in accordance with the applicable rules, there are situations in which non-compliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Non-compliance events that could result in abandonment or lapse of a patent or patent application include, but are not limited to, failure to respond to official actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents. If we fail to maintain our patents and patent applications, we may not be able to stop a competitor from marketing products, services or technologies that are the same as or similar to our products, services or technologies, which would have a material adverse effect on our business, financial condition, results of operations and prospects.

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#### We may incur costs to defend against, face liability for or be vulnerable to intellectual property infringement claims brought against us by others.
Third parties may assert claims against us alleging that we infringe upon, misappropriate, dilute or otherwise violate their intellectual property rights.

Any claim of infringement by a third party, even those without merit, could cause us to incur substantial costs defending against the claim, could distract our management from our business, could require us to cease use of such intellectual property and could create ongoing obligations if we are subject to agreements or injunctions (stipulated or imposed) preventing us from engaging in certain acts. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, we risk compromising our confidential information during this type of litigation. Our defense of any claim, regardless of its merit, could be expensive and time consuming and could divert management resources. We cannot predict the outcome of lawsuits and cannot ensure that the results of any such actions will not have an adverse effect on our business, financial condition or results of operations. Successful infringement claims against us could result in significant monetary liability or prevent us from selling our products or providing our services if licenses to the intellectual property in question are not available. In addition, resolution of claims may require us to redesign or rebrand our products, license rights from third parties on potentially unfavorable terms, cease using certain brand names or other intellectual property rights altogether, make substantial payments for royalty or license fees, legal fees, settlement payments or other costs or damages, or admit liability. Such outcomes could encourage others to bring claims against us. To the extent we seek a license to continue product or service offerings or operations found or alleged to infringe third-party intellectual property rights, such a license may be non-exclusive, and therefore our competitors may have access to the same technology licensed to us. In the event we are required to develop alternative, non-infringing technology, this could require significant time (during which we would be unable to continue to offer our affected product and service offerings), effort and expense, and may ultimately not be successful. Any of these events could harm our business and cause our financial condition, results of operations and liquidity to suffer.

***Changes in patent laws or their interpretations could diminish the value of our patents in general, thereby impairing our ability to protect our current and future products, services or technologies, and could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our current or future patents.***

Our ability to obtain patents and the breadth of any patents obtained is uncertain in part because, to date, some legal principles remain unresolved, and there has not been a consistent policy regarding the breadth or interpretation of claims allowed in patents in the United States and other countries. Changes in either patent laws or in interpretations of patent laws may diminish the value of our intellectual property rights or narrow the scope of our patent protection, which in turn could diminish the commercial value of our products, services and technologies.

***If our trademarks and trade names are not adequately protected, we may not be able to build brand name recognition in our markets of interest, and our competitive position may be harmed***.

Any trademarks we own or seek to register could be challenged, opposed, invalidated, infringed and circumvented by third parties, and our trademarks could also be diluted, declared generic or descriptive, or found to be infringing on other marks. If any of the foregoing occurs, we could be forced to re-brand our Company, products, services or technologies, resulting in loss of brand recognition, and requiring us to devote resources to advertising and marketing new brands, and suffer other competitive harm. Third parties, including competitors, may also adopt trade names or trademarks similar to ours, which could harm our brand identity and lead to market confusion. Further, there can be no assurance that competitors will not infringe our trademarks or that we will have adequate resources to enforce our trademarks. Certain of our current or future trademarks may become so well known by the public that their use becomes generic, and they lose trademark protection. Over the long term, if we are unable to establish name recognition based on our trademarks and trade names, then we may not be able to compete effectively. Any of the foregoing could have a material adverse effect on our competitive position, business, financial condition, results of operations and prospects.

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There can be no assurance that any trademark applications we file will be approved for registration. During trademark registration proceedings, we may receive rejections. Although we are given an opportunity to respond to those rejections, we may be unable to overcome such rejections. In addition, in proceedings before the USPTO and comparable agencies in many foreign jurisdictions, third parties have opposed and may further oppose in the future our trademark applications and may seek to cancel trademark registrations or otherwise challenge our use of the trademarks. Opposition or cancellation proceedings may be filed against our trademark filings in these agencies, and such filings may not survive such proceedings. While we may be able to continue the use of our trademarks in the event registration is not available, particularly in the United States, where trademark rights are acquired based on use and not registration, third parties may be able to enjoin the continued use of our trademarks if such parties are able to successfully claim infringement in court. In addition, opposition or cancellation proceedings may be filed against our trademark applications and registrations and our trademarks may not survive such proceedings. If we do not secure registrations for our trademarks, we may encounter more difficulty in enforcing them against third parties than we otherwise would. Our trademarks or trade names may be infringed, circumvented, declared generic or determined to be violating or infringing on other marks.

#### Interruption or failure of our information technology systems could restrain our ability to effectively operate our business.
IT infrastructure is critical to supporting business objectives; failure of our IT infrastructure to operate effectively could adversely affect our business. If a problem occurs that impairs this infrastructure, the resulting disruption could impede our ability to record or process orders, manufacture and ship in a timely manner, or otherwise carry on business in the normal course. Any such events could cause us to lose customers or revenue and could require us to incur significant remediation expense. As we integrate, implement and deploy new IT processes and information infrastructure across our operations, we could experience disruptions in our business that could have an adverse effect on our business, financial condition, results of operations and cash flows.

***Data privacy compliance and breaches and the evolving global governmental regulations relating to data privacy and cybersecurity could adversely affect our results of operations and profitability.***

We are subject to increasingly complex and changing laws and regulations enacted to protect business and personal information in the United States and other jurisdictions regarding privacy, data protection and data security, including those related to the collection, storage, use, transmission and protection of personal information and other customer, vendor or employee data. Laws and regulations addressing personal information, including with respect to the European Union's General Data Protection Regulation ("GDPR"), and the California Consumer Privacy Act of 2018 ("CCPA") as amended by the California Privacy Rights Act ("CPRA"), and other similar U.S. state privacy laws, and the interpretation and enforcement of these and similar laws and regulations, are continuously evolving, and there is significant uncertainty with respect to how compliance with these laws and regulations may develop and the costs and complexity of future compliance. While we currently only collect personal information of our employees, the interpretation and application of data protection laws may be interpreted and applied in a manner that is inconsistent with our data practices. In addition, as a result of existing or new data protection requirements, we incur and expect to continue to incur significant ongoing costs as part of our efforts to protect our business data and personal information and comply with applicable law. Any failure, or perceived failure, to comply with our data protection or privacy-related legal obligations may result in governmental enforcement actions, litigation, or negative publicity, and could have an adverse effect on our financial condition and results of operations.

#### Risks Related to Legal, Compliance and Regulatory Matters
***Government contracts are subject to extensive regulation, and failure to comply with such regulations may have a material adverse impact on our financial condition and results of operations.***

We and many of our customers are parties to U.S. government contracts, which are subject to extensive regulations such as the Federal Acquisition Regulation ("FAR"), the Truth in Negotiations Act, the Service Contract Act and DoW security regulations. See "— *We are subject to extensive government regulations, and changes in laws or regulations or the manner of their interpretation or enforcement could adversely impact our financial performance and restrict our ability to operate our business or execute our strategies*." Failure to comply with any of these regulations and

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other government requirements may result in contract price adjustments, financial penalties or contract termination. We may be subject to criminal and civil penalties, suspension or debarment from future government contracts, and qui tam litigation brought by private individuals on behalf of the U.S. government under the False Claims Act, which could include claims for treble damages. These suits may remain under seal (and hence, be unknown to us) for some time while the government decides whether to intervene on behalf of the qui tam plaintiff. Our failure to comply with regulations applicable to government contracts could have a material adverse impact on our business, financial condition, results of operations and cash flows.

***We are subject to significant government regulation for U.S.-controlled goods and technologies, which may cause us to incur significant expenses to comply with new or more stringent governmental regulation and may subject us to regulatory actions, which may adversely impact our business, financial condition and results of operations.***

The U.S. Department of Commerce (the "Commerce Department") and the U.S. Department of State ("State Department") regulate the export, re-export and re-transfer of U.S.-controlled goods and technologies. We are subject to the Commerce Department's and the State Department's regulations with respect to the lease and sale to foreign entities of all controlled articles that we manufacture. The Commerce Department and the State Department, in certain cases, require us to obtain authorization for the export, re-export or re-transfer within foreign countries of certain items. We must expend resources to comply with these regulations, and our failure to comply with these regulations may subject us to regulatory actions, which may adversely impact our business, financial condition or results of operations.

We must comply with all applicable export control laws and regulations of the United States and other countries. U.S. laws and regulations applicable to us include the Arms Export Control Act ("AECA"), the International Traffic in Arms Regulations ("ITAR"), the Export Administration Regulations ("EAR"), and the trade sanctions laws and regulations administered by the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC"). The EAR restricts the export of dual-use products and technical data to certain countries, while ITAR restricts the export of defense products, technical data and defense services. The U.S. government agencies responsible for administering the EAR and ITAR have significant discretion in the interpretation and enforcement of these regulations. We cannot provide services to certain countries subject to U.S. trade sanctions or restrictions unless we first obtain the necessary authorizations from the applicable regulatory agency.

We are prohibited from doing business with entities designated by OFAC on its "Specially Designated Nationals List," and must monitor our operations and existing and potential lessees and other counterparties for compliance with OFAC's rules. Similarly, sanctions or prohibitions issued by the United Nations, the U.S. government, the European Union or other governments could prohibit or restrict us from doing business in certain countries, or with certain customers or persons, and we must monitor our operations and existing and potential customers and other counterparties for compliance with such sanctions. We must expend resources to comply with these regulations, and our failure to comply with these regulations may subject us to regulatory actions, which may adversely impact our business, financial condition or results of operations.

***We are subject to extensive government regulations, and changes in laws or regulations or the manner of their interpretation or enforcement could adversely impact our financial performance and restrict our ability to operate our business or execute our strategies.***

We sell a significant number of products, and provide solutions, to the U.S. government and to customers whose products are sold or services are provided to the U.S. government, and therefore we must comply with numerous laws and regulations, for which compliance is costly. See "— *Government contracts are subject to extensive regulation and failure to comply with such regulations may have a material adverse impact on our financial condition and results of operations."*

New laws or regulations, or changes in existing laws or regulations or the manner of their interpretation or enforcement, could increase our cost of doing business and restrict our ability to operate our business or execute our strategies. There may be significant changes in U.S. laws and regulations and international trade agreements that could affect a wide variety of industries and businesses, including those businesses we own and operate. In particular, as a contractor subject to terms of U.S. government contracts, we are heavily regulated in most fields in which we operate.

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We engage with numerous U.S. governmental agencies and entities, and when working with these and other entities, we must comply with and are affected by certain laws and regulations relating to the formation, administration and performance of government contracts. Some significant laws and regulations that may affect us include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the FAR, and agency regulations supplemental to FAR, which regulate the formation, administration and performance of U.S. government contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Defense Counterintelligence and Security Agency ("DCSA") and agency regulations at our Gorham, Maine facility which has a "classified" facility clearance, restricted test equipment and certain "cleared" employees. Failure to maintain any of these various DCSA certifications could lead to extended delays in being able to process products deemed "classified" by the U.S. government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the False Statements Act, which imposes civil and criminal liability for making false statements to the U.S. government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Truthful Cost or Pricing Data Statute (formerly known as the "Truth in Negotiations Act"), which requires certification and disclosure of cost and pricing data in connection with the negotiation of certain contracts, modifications or task orders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Procurement Integrity Act, which regulates access to competitor bid and proposal information and certain internal government procurement sensitive information, and our ability to provide compensation to certain former government procurement officials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws and regulations restricting the ability of a contractor to provide gifts or gratuities to employees of the U.S. government, including the FCPA which prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• post-government employment laws and regulations, which restrict the ability of a contractor to recruit and hire current employees of the U.S. government and deploy former employees of the U.S. government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws, regulations and executive orders restricting the handling, use and dissemination of information classified for national security purposes or determined to be "controlled unclassified information" or "for official use only," and the export of certain products, services and technical data, including requirements regarding any applicable licensing of our employees involved in such work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws, regulations, and executive orders regulating the handling, use and dissemination of personally identifiable information in the course of performing a U.S. government contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• International trade compliance laws, regulations, and executive orders that prohibit business with certain sanctioned entities and require authorization for certain exports or imports in order to protect national security and global stability, including ITAR that controls the manufacture, sale and distribution of defense and space-related articles and services as defined in the United States Munitions List;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws, regulations and executive orders governing organizational conflicts of interest that may restrict our ability to compete for certain U.S. government contracts because of the work that we currently perform for the U.S. government or may require that we take measures such as firewalling off certain employees or restricting their future work activities due to the current work that they perform under a U.S. government contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws, regulations and executive orders that impose requirements on us to ensure compliance with requirements and protect the U.S. government from risks related to our supply chain such as compliance with Cybersecurity Maturity Model Certification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• laws, regulations, and mandatory contract provisions providing protections to employees or subcontractors seeking to report alleged fraud, waste and abuse related to a U.S. government contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Contractor Business Systems rule, which authorizes DoW agencies to withhold a portion of our payments if we are determined to have a significant deficiency in our accounting, cost estimating, purchasing, earned value management, material management and accounting, and/or property management system; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Cost Accounting Standards ("CAS") and Cost Principles, which impose accounting and allowability requirements that govern our right to reimbursement under certain cost-based U.S. government contracts and require consistency of accounting practices over time.

The U.S. government may revise its procurement practices or adopt new contract rules and regulations at any time. In addition to federal laws and regulations, we are also subject to various local government regulations and procurement policies and practices, including regulations relating to import-export control, investments, exchange controls, and repatriation of earnings, as well as varying currency, political and economic risks.

U.S. government contracts are, by their terms, subject to termination by the U.S. government either for convenience or default by the contractor. In addition, U.S. government contracts are conditioned upon the continuing availability of Congressional appropriations. The U.S. Congress usually appropriates funds for a given program on a September 30 fiscal year basis, even though contract performance could take many years. As is common in the industry, we are subject to business risk, including changes in governmental appropriations, delays in passage by Congress of annual federal government budgets, national defense policies, service modernization plans, military base reductions and closures, and availability of funds. Any of these factors could materially adversely affect our business with the U.S. government in the future.

The U.S. government has a broad range of actions it can instigate to enforce its procurement laws and policies. These include proposing debarment or suspending for a contractor, certain of its operations or individual employees or debarring a contractor, certain of its operations or individual employees from future government business. In addition to criminal, civil, and administrative actions by the U.S. government, under The False Claims Act, an individual alleging fraud related to payments under a U.S. government contract or program may file a qui tam lawsuit against us on behalf of the government; if successful in obtaining a judgment or settlement, the individual filing the suit may receive up to 30% of the amount recovered by the government. If we are subject to an enforcement action by the U.S. government, it could materially and adversely affect our reputation, the willingness of our current or prospective customers to do business with us and our results of operations.

***Compliance with disclosure obligations relating to "conflict minerals" may require us and our suppliers to incur additional expenses and may result in disclosure by us that the tungsten used in products we manufacture or contract to manufacture is not "DRC conflict free."***

Because we manufacture or contract to manufacture products that contain tungsten, we will be required under rules promulgated by the SEC governing disclosure of the use of "conflict minerals" to determine whether tungsten is necessary to the functionality or production of our products and, if so, conduct a country of origin inquiry with respect to all sourced tungsten. If any sourced tungsten may have originated in the Democratic Republic of the Congo, or DRC, or any of its adjoining countries, or the "covered countries", then we and our suppliers must conduct diligence on the source and chain of custody of such tungsten to determine if it originated in one of the covered countries. Disclosures relating to our products that may contain such tungsten must be provided in a Form SD (and accompanying conflict minerals report, if required, to disclose the diligence undertaken by us in sourcing the tungsten and our conclusions relating to such diligence). Compliance with this disclosure rule may be very time-consuming for our management and personnel (as well as time-consuming for our suppliers) and could involve the expenditure of significant amounts of money by us and our suppliers.

***We are subject to the requirements of the National Industrial Security Program Operating Manual for facility security clearance, which is a prerequisite for our ability to perform on classified contracts for the U.S. government.***

DoW facility security clearance is required in order to be awarded, and to be able to perform on, classified contracts for the DoW and certain other agencies of the U.S. government, which is a significant part of our business. We have obtained clearance at appropriate levels that require stringent qualifications, and we may be required to seek higher level clearances in the future which could cause us to incur costs associated with compliance and the implementation of any required security features. We cannot assure you that we will be able to maintain our security clearance. If for some reason our security clearance is invalidated or terminated, we may not be able to continue to perform our present classified contracts or be able to enter into new classified contracts, which could affect our ability to compete for and capture new business.

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***The construction of aircraft is heavily regulated, and failure to comply with applicable laws could reduce our sales or require us to incur additional costs to achieve compliance, and we may incur significant expenses to comply with new or more stringent governmental regulation.***

We manufacture a number of products used in the Aerospace industry. The Aerospace industry is highly regulated in the United States by the Federal Aviation Administration and in other countries by similar agencies. Individual OEMs require us to maintain Quality Management Systems consistent with AS9100 at our Lewiston, Coldwater and Euclid facilities in order to engineer and provide parts. If we fail to maintain our certification to AS9100, our operations would be adversely affected. New or more stringent governmental regulations may be adopted, or industry oversight heightened in the future, and we may incur significant expenses to comply with any new regulations or any heightened industry oversight.

In addition, recent U.S. government administrations have relied on executive orders in lieu of federal legislation to implement regulatory policy and objectives, and the U.S. Supreme Court has recently issued decisions that have added uncertainty to the federal regulatory apparatus. Each of these developments could exacerbate regulatory unpredictability. We may be unable to anticipate changes in regulatory approaches by different branches and administrations of the U.S. federal government. Therefore, we may be unable to make timely operational or other changes or to ensure compliance with federal regulations or executive orders. Executive orders or regulatory priorities issued or rescinded by the U.S. federal government administrations may require us to make additional capital expenditures, incur additional costs, or cause a delay or the abandonment of projects or awarded contracts, which could materially adversely affect our business, financial condition and results of operations. The increased regulatory uncertainty following the aforementioned U.S. Supreme Court decisions could also result in delays and other impediments to the federal agency rulemaking process, which could materially adversely affect our business, financial condition and results of operations.

***Our manufacturing processes, and the manufacturing processes of many of our suppliers and customers, are energy intensive and generate carbon dioxide and other "Greenhouse Gases." Legislation or regulations restricting emissions of Greenhouse Gases, if enacted or adopted in an onerous form, could have a material adverse impact on our results of operations, financial condition and cash flows.***

Our manufacturing processes require extensive amounts of energy, which produce greenhouse gases, and the manufacturing processes themselves often generate greenhouse gases as part of these processes. Political debates related to the impacts of greenhouse gas emissions on the global climate are prevalent. There has been an increased focus in the last several years on climate change in response to findings that emissions of carbon dioxide, methane and other greenhouse gases present an endangerment to public health and the environment. As a result, there have been a variety of regulatory developments, proposals or requirements and legislative initiatives that have been introduced in the United States and other parts of the world that are focused on restricting the emission of greenhouse gases and enhancing greenhouse gas emissions disclosure requirements, including increased fuel efficiency standards, carbon taxes or cap and trade systems, restrictive permitting and incentives for renewable energy. The adoption of new or more stringent legislation or regulatory programs limiting greenhouse gas emissions from our business or our clients, or reducing the demand for our clients' products, could in turn affect demand for our products and services, which could have a material adverse impact on our financial condition, results of operations and cash flows.

Further, technology to support the transition to lower-carbon operations within the timeframe that could be required by future regulation or expected in the future by our customers may not be available at the scale necessary to support our operations, in a timely or cost-effective manner or at all. It is possible that, over time, due to both regulatory action and/or changing customer and societal norms and expectations regarding the causes and importance of climate change issues, demand for products in one or more of our key industries could decline due to the nature of the climate impact associated with such products. If we fail to keep pace with changing demand and technological advancement, our customers could shift in favor of products that we do not produce and that generate fewer greenhouse gases. If we fail to appropriately adapt to the expectations of our customers or other stakeholders, or otherwise are perceived as failing to adequately address climate change concerns, the resulting negative perceptions could adversely affect our business, reputation and access to capital.

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#### Any failure to comply with applicable environmental laws could result in significant liabilities or harm our reputation.
We are subject to various domestic and international environmental laws and regulations that govern the discharge of pollutants and disposal of wastes, and which may require that we investigate and remediate the effects of the release or disposal of materials, such as acetone, phosphoric acid, butyl acetate, hydrochloric acid, toluene, sulfuric acid, ethanol and sodium hydroxide, at sites associated with past and present operations. We could incur substantial cleanup costs, fines and civil or criminal sanctions, third party property damage or personal injury claims as a result of violations or liabilities under these laws or non-compliance with environmental permits required at our facilities. We currently monitor our Lewiston site to ensure compliance with a Maine Department of Environmental Protection corrective action plan. We also could be subject to future laws and regulations that govern greenhouse gas emissions and various matters related to climate change and other air emissions, including laws restricting or requiring significant disclosure obligations associated with such omissions, which could increase our operating costs. See "— *Our manufacturing processes, and the manufacturing processes of many of our suppliers and customers, are energy intensive and generate carbon dioxide and other 'Greenhouse Gases.' Legislation or regulations restricting emissions of Greenhouse Gases, if enacted or adopted in an onerous form, could have a material adverse impact on our results of operations, financial condition and cash flows."*

From time-to-time, we may be a party to lawsuits and other proceedings involving alleged violations of, or liabilities arising from, environmental laws. If our liability is probable and we can reasonably estimate our costs, we may record environmental liabilities in our financial statements. In many cases, we are not able to determine whether we are liable or if liability is probable or to reasonably estimate the loss or range of loss. Estimates of our liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the participation, number and financial condition of other potentially responsible parties, as well as the extent of their responsibility for the remediation. We will adjust our accruals to reflect new information as necessary. Future adjustments could have a material adverse effect on our results of operations in a given period, but we cannot reliably predict the amounts of such future adjustments. As of December 31, 2025, our reserves for environmental matters totaled approximately $550,000 relating to the cleanup of a dissolving line in Lewiston. Based on currently available information, we do not believe that there is a reasonable possibility that a loss exceeding the amount already accrued for any of the sites with which we are currently associated (either individually or in the aggregate) will be material, but estimating the extent of possible losses is subject to many factors and is uncertain. Future developments, administrative actions or liabilities relating to environmental matters could also have a material adverse effect on our business, financial condition and results of operations.

***Changes in the regulatory environment, including environmental, health and safety regulations, could subject us to increased compliance and manufacturing costs, which could have a material adverse effect on our business.***

*Health and safety regulations.* Certain of our products contain hard metals, including tungsten and molybdenum. Hard metal dust is being studied for potential adverse health effects by organizations in several regions throughout the world, including the United States, Europe and Japan. Future studies on the health effects of hard metals may result in our products being classified as hazardous to human health, which could lead to new regulations in countries in which we operate that may restrict or prohibit the use of, and/or exposure to, hard metal dust. New regulation of hard metals could require us to change our operations, and these changes could affect the quality of our products and materially increase our costs.

*Environmental regulations.* We are subject to various environmental laws, and any violation of, or our liabilities under, these laws could adversely affect us. Our operations necessitate the use and handling of hazardous materials such as acetone, phosphoric acid, butyl acetate, hydrochloric acid, hydrofluoric acid, toluene, sulfuric acid, ethanol and sodium hydroxide and, as a result, we are subject to various federal, state, local and foreign laws, regulations and ordinances relating to the protection of the environment, including those governing discharges to air and water, handling and disposal practices for solid and hazardous wastes, the cleanup of contaminated sites and the maintenance of a safe workplace. These laws impose penalties, fines and other sanctions for noncompliance and liability for response costs, property damages and personal injury resulting from past and current spills, disposals or other releases of, or exposure to, hazardous materials. We could incur substantial costs as a result of noncompliance with or liability for cleanup or other costs or damages under these laws. We may be subject to more stringent environmental laws in the future. If more stringent environmental laws are enacted in the future, these laws could have a material adverse effect on our business, financial condition and results of operations.

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*Climate change and resulting legal or regulatory responses.* Th**e**re is growing concern that a gradual increase in global average temperatures may cause significant changes in weather patterns around the globe and an increase in the frequency and severity of natural disasters. Such climate change may impair our production capabilities, disrupt our supply chain or impact demand for our products, and may also result in additional legal or regulatory requirements designed to reduce or mitigate the effects of carbon dioxide and other greenhouse gas emissions on the environment. The impacts of climate change and legal or regulatory initiatives to address climate change could have a long-term adverse impact on our business, financial condition and results of operations. See "— *Our manufacturing processes, and the manufacturing processes of many of our suppliers and customers, are energy intensive and generate carbon dioxide and other "Greenhouse Gases," and legislation or regulations restricting emissions of Greenhouse Gases, if enacted or adopted in an onerous form, could have a material adverse impact on our results of operations, financial condition and cash flows."*

#### Product liability and product quality claims could adversely affect our operating results.
We produce ultra-high strength, high temperature, corrosion-resistant alloys and high-power systems designed for our customers' demanding applications, particularly in our Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics and Energy end markets. Failure of the materials or components that are included in our customers' applications could give rise to substantial product liability claims. There can be no assurance that our insurance coverage will be adequate or continue to be available on terms acceptable to us. We have complex manufacturing processes necessary to meet our customers' stringent product specifications. We are also required to adhere to various third-party quality certifications and perform sufficient internal quality reviews to ensure compliance with established standards. If we fail to meet customers' specifications for their products or these certifications, we may be subject to product quality costs and claims. These costs are generally not insured. The impacts of product liability and quality claims could have a material adverse impact on our business, financial condition, results of operations and cash flows.

***Adverse judgments or settlements in legal disputes, including product liability, intellectual property infringement and other claims, could result in materially adverse monetary damages or injunctive relief, and damage our business and/or our reputation.***

We are subject to, and may become a party to, a variety of litigation or other claims and suits that arise from time to time in the ordinary course of our business. The results of litigation and other legal proceedings are inherently uncertain, and adverse judgments or settlements in some or all of these legal disputes may result in materially adverse monetary damages or injunctive relief against us, or in other adverse consequences to our financial condition and results of operations. Our insurance policies may not protect us against potential liability due to various exclusions in the policies, self-insured retention amounts or policy limits. Partially or completely uninsured claims, if successful and of significant magnitude, could have a material adverse effect on our business, financial condition and results of operations. Any claims or litigation, even if fully indemnified or insured, could damage our reputation and make it more difficult to compete effectively or obtain adequate insurance at an acceptable cost in the future.

The components we manufacture can expose us to potential liabilities. For instance, our manufacturing operations expose us to potential product liability claims resulting from injuries caused by defects in components we design or manufacture, as well as potential claims that components we design infringe on third-party intellectual property rights. Such claims could subject us to significant liability for damages, subject the infringing portion of our business to injunction and, regardless of their merits, could be time-consuming and expensive to resolve. We may also have greater potential exposure from warranty claims due to problems caused by component or product design. Although we have product liability insurance coverage, it may not be sufficient to cover the full extent of our product liability, if at all. A successful product liability claim in excess or outside of our insurance coverage or any material claim for which insurance coverage is denied or limited and for which indemnification is not available could have a material adverse effect on our business, financial condition and results of operations.

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#### Risks Related to Indebtedness; Other Financial and Accounting Risks
***We have identified material weaknesses in our internal control over financial reporting. If we are unable to remediate these weaknesses, or otherwise fail to maintain proper and effective internal controls, our ability to produce timely and accurate financial statements could be impaired, which could adversely affect our operating results, our ability to operate our business, our stock price and access to the capital markets.***

As a public company, we will be required to maintain internal control over financial reporting and to report any material weaknesses in such internal controls. In addition, beginning with our second annual report on Form 10-K, we will be required to furnish a report by management on the effectiveness of our internal control over financial reporting, pursuant to the rules and regulations of the SEC regarding compliance with Section 404 of the Sarbanes-Oxley Act. The process of designing, implementing and testing the internal control over financial reporting required to comply with this obligation is time-consuming, costly and complicated. We have identified material weaknesses in our internal control over financial reporting relating to (1) the segregation of duties surrounding the review and approval of transactions in our EMP division, which is a result of limited headcount resources within the finance department, and (2) ineffective information technology general controls, which is a result of a lack of design and maintenance of such controls. These material weaknesses have led to a conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of December 31, 2025. Our inability to remediate these material weaknesses, our discovery of additional control deficiencies or material weaknesses in internal control, and our inability to achieve and maintain effective disclosure controls and procedures and internal control over financial reporting could adversely affect our results of operations, our stock price and investor confidence in our Company.

Our management has taken action to begin remediating these material weaknesses we have identified in our internal control over financial reporting; however, certain remedial actions have not started or have only recently been undertaken. While we undertook steps to implement our remediation plan throughout the fiscal year ending December 31, 2025, we cannot be certain as to when remediation will be fully completed. In addition, we could in the future identify additional internal control deficiencies that could rise to the level of a material weakness or uncover other errors in financial reporting. During the course of our evaluation, we may identify areas requiring improvement and may be required to design additional enhanced processes and controls to address issues identified through this review. In addition, there can be no assurance that such remediation efforts will be successful, that our internal control over financial reporting will be effective as a result of these efforts or that any such future deficiencies identified may not be material weaknesses that would be required to be reported in future periods.

If we fail to remediate these material weaknesses and maintain effective disclosure controls and procedures or internal control over financial reporting, we may not be able to rely on the integrity of our financial results, which could result in inaccurate or late reporting of our financial results, as well as delays or the inability to meet our future reporting obligations or to comply with SEC rules and regulations. As a result, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock could decline. We could also become subject to investigations by the stock exchange on which our common stock is listed, the SEC or other regulatory authorities, which could require additional financial and management resources. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to the capital markets.

Failure to have effective internal control over financial reporting and disclosure controls and procedures can impair our ability to produce accurate financial statements on a timely basis and could lead to a restatement of our financial statements. If, as a result of the ineffectiveness of our internal control over financial reporting and disclosure controls and procedures, we cannot provide reliable financial statements, our business decision processes may be adversely affected, our business and results of operations could be harmed, investors could lose confidence in our reported financial information and our ability to obtain additional financing, or additional financing on favorable terms, could be adversely affected.

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***Restrictions contained in our revolving credit facilities and other debt agreements may limit our ability to incur additional indebtedness, or our failure to comply with the related covenants could result in an event of default that may accelerate our repayment obligations.***

Our existing revolving credit facilities and other debt agreements (each a "Debt Facility" and collectively, "Debt Facilities") contain restrictive covenants, including restrictions on our and our subsidiaries' ability to incur indebtedness. These restrictions could limit our ability to effectuate future acquisitions, limit our ability to pay dividends, limit our ability to make capital expenditures or restrict our financial flexibility. A number of our Debt Facilities contain covenants requiring us to achieve certain financial and operating results and maintain compliance with specified financial ratios. Our ability to meet the financial covenants or requirements in our Debt Facilities may be affected by events beyond our control, and we may not be able to satisfy such covenants and requirements.

For example, the Wells Fargo LOC (as defined later in this prospectus) contains customary event of default provisions, as well as restrictions on our ability to incur indebtedness, grant liens, dispose of assets, make investments, bail or cosign inventory or engage in transactions with affiliates (each such covenant subject to certain exceptions). The Wells Fargo LOC also requires us to maintain a minimum net worth and leverage ratio.

A breach of these covenants or our inability to comply with the financial ratios, tests or other restrictions contained in a Debt Facility could result in an event of default under one or more of our other Debt Facilities. Upon the occurrence of an event of default under a Debt Facility, and the expiration of any grace periods, the lenders could elect to declare to be immediately due and payable all amounts outstanding under one or more of our other Debt Facilities, together with accrued interest. If this were to occur, our assets may not be sufficient to fully repay the amounts due under our Debt Facilities or our other indebtedness. Additionally, we may not be able to amend our Debt Facilities or any future debt agreement or obtain needed waivers on satisfactory terms. There can be no assurance that, if needed to avoid noncompliance with our Debt Facilities in the future, we will obtain the necessary waivers from the applicable lenders on satisfactory terms or at all. As a result, there could be an event of default under such agreements, which could result in an acceleration of repayment and have a material adverse impact on our financial condition and results of operations. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness*" for a more detailed discussion of our current Debt Facilities.

***The amount of debt we have outstanding, as well as any debt we may incur in the future, could have an adverse effect on our operational and financial flexibility.***

As of December 31, 2025, we had approximately $53.5 million of debt principal outstanding, which includes approximately $17.3 million of related-party debt and excludes a forgivable loan of $0.1 million. Changes to our level of debt subsequent to December 31, 2025, could have significant consequences on our business, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• depending on interest rates and debt maturities, a substantial portion of our cash flow from operations could be dedicated to paying principal and interest on our debt, thereby reducing funds available for our acquisition strategy, capital expenditures or other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a significant amount of additional debt could make us more vulnerable to changes in economic conditions or increases in prevailing interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to obtain additional financing on the same or better terms as our outstanding related-party indebtedness (See "*Certain Relationships and Related Party Transactions*");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain additional financing for acquisitions, capital expenditures or for other purposes could be impaired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our indebtedness-related hedging activities may not perform as expected or as they have historically performed, which could increase our exposure to interest rate, currency, or other financial risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increase in the amount of debt we have outstanding and the associated interest expense increases the risk of non-compliance with some of the covenants in our debt agreements which require us to maintain specified financial ratios (See "— *Restrictions contained in our revolving credit facilities and other debt agreements may limit our ability to incur additional indebtedness, or our failure to comply with related covenants could result in an event of default that may accelerate our repayment obligations.*"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be more leveraged than some of our competitors, which may result in a competitive disadvantage.

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#### Our variable rate Debt Facilities subject us to interest rate risk, which could cause our debt service obligations to increase significantly.
Borrowings under certain of our Debt Facilities, including the Wells Fargo LOC, the Wells Fargo Term Note, the Domestic March 2020 Line of Credit and the Great Falls Term Loan (as defined below), which is held by a related party (see "*Certain Relationships and Related Party Transactions*"), are at a variable rate of interest and expose us to interest rate risk. As of December 31, 2025, we had $46.8 million of outstanding indebtedness subject to variable interest rates. If interest rates were to increase, our debt service obligations on the variable rate Debt Facilities would increase, even though the amount borrowed under certain of our Debt Facilities remained the same, and our net income and cash flows, including cash available for servicing our Debt Facilities, will correspondingly decrease. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness*" for a more detailed discussion of our current Debt Facilities and corresponding interest rates.

***We may be exposed to liabilities if it is determined that our compensation arrangements do not comply with, or are not exempt from, Section 409A ("Section 409A") of the Internal Revenue Code of 1986, as amended (the "Code").***

Section 409A of the Code, sets forth the rules governing non-qualified deferred compensation arrangements. Section 409A contains many technical, complicated and ambiguous rules and regulations, including proposed but not yet finalized regulations that do not currently have the force of law, all of which make compliance with Section 409A difficult to assess and to ensure. While we believe we have structured our compensation arrangements (including our equity incentive awards) so that they either comply with, or are exempt from, Section 409A, it is possible that some of these compensation arrangements will be later determined to be not exempt or compliant. In some instances, we have determined that amendments to certain of our compensation arrangements were advisable in order to mitigate or eliminate potential Section 409A non-compliance risk, though there can be no assurance that such amendments will mitigate or eliminate any such risk. If it is determined that any of our compensation arrangements are neither compliant with, nor exempt from, Section 409A, we may be subject to significant liabilities and costs, including penalties for failing to properly report deferred compensation arrangements under Section 409A and to withhold taxes payable by our service providers, including our employees, and we may be required to pay to the applicable governmental authorities the amount of taxes we should have withheld and related interest and penalties. In addition, our service providers, including our employees, that participate in such arrangements may experience significant adverse tax consequences under Section 409A, including a 20% federal penalty tax imposed on the amount of compensation involved (plus, as applicable, similar excise taxes under state law or foreign law). These liabilities may be significant, and the imposition of such liabilities may materially affect our employee relations. In addition, in the event any such liabilities were imposed on our service providers, including our employees, we could decide to take remedial action, including making cash payments to adversely affected service providers, including our employees. Any amounts so paid by us could materially and adversely affect our results of operations, financial condition, business and prospects.

#### Adverse business conditions could restrict our ability to generate cash and service our indebtedness.
Our ability to pay interest on our debt and to satisfy our other debt obligations depends in part upon our future financial and operating performance and that of our subsidiaries, and upon our ability to renew or refinance borrowings. Prevailing economic conditions and financial, business, competitive, legislative, regulatory and other factors, many of which are beyond our control, affect our ability to make these payments. While we believe that cash flow from our current level of operations, available cash and available borrowings under our revolving credit facility provide adequate sources of liquidity, a significant drop in operating cash flow resulting from economic conditions, competition or other uncertainties beyond our control could create the need for alternative sources of liquidity. If we are unable to generate sufficient cash flow to meet our debt service obligations, we will have to pursue one or more alternatives, such as reducing or delaying capital or other expenditures, refinancing debt, selling assets or raising equity capital.

***If we are unable to maintain effective disclosure controls and procedures and internal control over financial reporting, our stock price and investor confidence in us could be materially and adversely affected.***

As a public company, we will be required to maintain both disclosure controls and procedures and internal control over financial reporting that are effective, and we have recently made changes to our internal controls and procedures in order to comply with these requirements. Because of its inherent limitations, internal control over financial reporting, however well designed and operated, can only provide reasonable, and not absolute, assurance that the controls will prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the

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risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Because of these and other inherent limitations of control systems, there is only a reasonable assurance that our controls will succeed in achieving their goals under all potential conditions. The failure of controls by design deficiencies or absence of adequate controls could result in a material adverse effect on our business, financial condition and results of operations. See "— *We have identified material weaknesses in our internal control over financial reporting. If we are unable to remediate these weaknesses, or otherwise fail to maintain proper and effective internal controls, our ability to produce timely and accurate financial statements could be impaired, which could adversely affect our operating results, our ability to operate our business, our stock price and access to the capital markets*." and "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" for more a more detailed discussion of our identified material weaknesses in internal controls and procedures.

***Any determination requiring the impairment of a significant portion of goodwill or other long-lived assets has had, and may in the future have, a negative impact on our financial condition and results of operations.***

The preparation of financial statements in conformity with U.S. GAAP requires management to make significant and subjective estimates and assumptions that may affect the reported amounts of tangible and intangible long-lived assets, including goodwill, in the consolidated financial statements. These estimates are integral in the determination of whether a potential non-cash impairment loss exists as well as the calculation of that loss. We have various long-lived assets that are subject to impairment testing. We review the recoverability of goodwill annually, or more frequently whenever significant events or changes in circumstances indicate that the recorded goodwill of a reporting unit may be below that reporting unit's fair value. Our businesses operate in highly cyclical industries, such as Aerospace, Defense and Government and, our estimates of future cash flows, market demand, the cost of capital, and forecasted growth rates and other factors may fluctuate, which may lead to changes in estimated fair value and, therefore, impairment charges in future periods. Additionally, we have a significant amount of property, plant and equipment and acquired intangible assets that may be subject to impairment testing, depending on factors such as market conditions, the demand for our products, and facility utilization levels. While we have not historically had any impairments of goodwill or other long-lived assets, determinations requiring the impairment of a significant portion of goodwill or other long-lived assets may in the future have a negative impact on our financial condition and results of operations.

#### If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our results of operations could be adversely affected.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes appearing elsewhere in this prospectus. We base our estimates on short duration historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as provided in "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates.*" The results of these estimates form the basis for making judgments about the carrying values of assets, liabilities and equity, and the amount of revenue and expenses. Significant estimates and judgments include: over time revenue recognition, the valuation of inventory and related reserves, the assessment of recoverability of goodwill inventory valuation and stock-based compensation. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below the expectations of securities analysts and investors, resulting in a decline in the market price of our common stock.

#### Changes in tax laws and regulations or exposure to additional tax liabilities could adversely affect our financial results.
Changes in U.S. federal, state and local or foreign tax laws and regulations, or their interpretation and application, including those with retroactive effect, could result in increases in our tax expense and affect profitability and cash flows. Furthermore, compliance with the tax regimes we are subject to is difficult and expensive. If we fail to adhere, or are alleged to have failed to adhere, to any applicable U.S. federal, state and local, or foreign laws or regulations, or if such laws or regulations negatively affect sales of our products, our business, financial condition and results of operations may be materially adversely affected. In addition, our future results could be materially adversely affected by changes in applicable federal, state and foreign laws and regulations, or the interpretation or enforcement thereof (including tax-rate changes, new tax laws such as the proposed 15% global minimum tax under the Organization for Economic Co-operation and Development Pillar Two, Global Anti-Base Erosion Rules, or revised tax law interpretations).

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For example, on July 4, 2025, the One Big Beautiful Bill Act ("the OBBB Act") was enacted into law. The OBBB Act includes significant changes to the U.S. tax code, including restoration of immediate recognition of domestic research and development expenditures and reinstatement of 100% bonus depreciation for qualifying property. The OBBB Act also removes the deductions under Code Section 179D for energy-efficient commercial buildings, effective for properties where construction begins after June 30, 2026. Additionally, the OBBB Act eases the limitation on interest expense deductions by allowing companies to calculate their income for 163(j) purposes before deducting depreciation and amortization. We have evaluated the impact of the OBBB Act on our financial statements for the year ended December 31, 2025, and have determined the effects were not material for that period. However, the ultimate impact of the OBBB Act remains uncertain and depends on various factors, including the issuance of future regulatory guidance and further judicial or administrative interpretations.

We continue to monitor developments and evaluate the impact of the OBBB Act on our consolidated financial statements, specifically regarding our deferred tax assets and liabilities. If our interpretations of this legislation are incorrect, or if the underlying tax laws change, we may be required to recognize adjustments in future periods. Such adjustments could be material and could negatively impact our results of operations and the market price of our common stock.

Issues relating to tax audits or examinations and any related interest or penalties and uncertainty in obtaining deductions or credits claimed in various jurisdictions could also impact the accounting for income taxes. Our results of operations are reported based on our determination of the amount of taxes we owe in various tax jurisdictions, and our provision for income taxes and tax liabilities are subject to review or examination by taxing authorities in applicable tax jurisdictions. An adverse outcome of such a review or examination could adversely affect our business, financial condition and results of operations. Further, the results of tax examinations and audits could have a negative impact on our results of operations and financial condition where the results differ from the liabilities recorded in our financial statements.

#### General Risk Factors

#### Macroeconomic conditions could have a material adverse impact on our business, financial condition, results of operations and cash flows.
Customer demand for our products may be impacted by weak macroeconomic conditions, inflation, stagflation, recessionary or lower-growth environments, high or rising interest rates, equity market volatility or other negative economic factors in the United States or other nations. For example, under these conditions or expectation of such conditions, our customers may cancel orders, delay purchasing decisions or reduce their use of our services. In addition, these economic conditions have resulted in the past, and could result in the future, in higher inventory levels and the resulting excess capacity charges from our manufacturing partners if we need to slow production to reduce inventory levels. Further, in the event of a recession or threat of a recession, our manufacturing partners, suppliers, distributors, and other third-party partners may suffer their own financial and economic challenges and as a result they may demand pricing accommodations, delay payment or become insolvent, which could harm our ability to meet our customer demands or collect revenue or otherwise could harm our business. Similarly, disruptions in financial and/or credit markets may limit our ability to manage normal commercial relationships with our manufacturing partners, customers, suppliers and creditors and might prevent us from accessing preferred sources of liquidity when we would like and increase our borrowing costs. Thus, if general macroeconomic conditions, or conditions in key markets, deteriorate or experience a sustained period of weakness or slower growth, our business, financial condition and results of operations could be materially and adversely affected.

#### Economic turmoil, political instability, and social unrest globally could have a material adverse impact on our business, financial condition and results of operations.
Economic and political conditions in the geographic markets we serve have experienced significant turmoil over the last several years, including recent changes in U.S. geopolitical priorities, a potential global recession, slow economic activity, war and refugee crises in the Middle East and Europe, tight credit markets, inflation and deflation concerns, increased interest rates, low consumer confidence, limited capital spending, adverse business conditions, terrorist attacks, changes in government priorities, trade wars, anti-globalization movements, efforts to combat climate change, a government shutdown, gridlock from a divided Congress, and liquidity concerns. These factors vary in intensity by region. For example, hostilities in the Middle East have resulted in periodic disruptions to global shipping,

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which could intensify and result in significant delays in shipments of products or supplies, materially increased shipping costs and loss of revenues. Likewise, recent tax reform legislation is predicted to substantially increase borrowing by the federal government, which could lead to both increased interest rates and increased inflation. We cannot predict the timing, duration or ultimate impact of turmoil on our markets or our suppliers. We expect our business would be adversely affected by any significant turmoil, to varying degrees and for varying amounts of time, in all our geographic markets.

***Geopolitical instability due to the ongoing military conflict between Russia and Ukraine, hostilities in Iran and the increasingly strained relationship between the United States and the PRC have created a period of economic and capital market uncertainty. Our business, financial condition and results of operations could be materially adversely affected by any negative impact on the global economy and capital markets resulting from the conflicts in Ukraine and Iran or any other geopolitical tensions.***

U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the ongoing war between Russia and Ukraine and the recent hostilities in Iran. Although the length and impact of the ongoing military conflicts is highly unpredictable, the conflicts in Ukraine and Iran could lead to continuing market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions.

The military conflict in Ukraine has led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia. Additional potential sanctions and penalties have also been proposed or threatened. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets, potentially making it more difficult for us to obtain additional funds. Although our business has not seen a material adverse impact resulting from the ongoing military conflicts between Russia and Ukraine and in the Middle East to date, it is impossible to predict the extent to which our operations, or those of our suppliers and manufacturers, will be affected in the short and long term, or the ways in which the conflict may affect our business. The extent and duration of the military action, sanctions and resulting market disruptions are impossible to predict, but could be substantial. Any such disruptions may also magnify the impact of other risks described in this prospectus.

In addition, the U.S.-PRC relationship has recently faced increased challenges. Because the PRC possesses the world's largest tungsten and molybdenum reserves, any actions that it may take to restrict or withhold tungsten or molybdenum could result in global shortages and harm our business. We currently source our supplies of tungsten and molybdenum raw materials from outside of the PRC, but any increase in trade tensions with the PRC could restrict the global supply, and therefore the price, and availability of tungsten and molybdenum. See "— *Availability of, and volatility in the prices of, raw materials and energy prices and our ability to pass along increased costs to our customers could adversely affect our results of operations."*

#### Risks Related to This Offering and Our Securities

#### Our management team does not have experience running a public company.
While our management team has a wide breadth of business experience, none of our executive officers have held an executive position, and only a limited number of our board of directors has prior experience serving as a board member, at a publicly traded company. As a result of the complexity involved in complying with the rules and regulations applicable to public companies, our management's attention may be diverted from other business concerns in order to focus on and address public company compliance matters, which could harm our business, financial condition and results of operations, and adversely affect our stock price.

#### Investors in this offering will experience immediate and substantial dilution.
The initial public offering price of our common stock is expected to be substantially higher than the pro forma as adjusted net tangible book value per share of our common stock. Therefore, if you purchase shares of our common stock in this offering, you will pay a price per share that substantially exceeds our pro forma as adjusted net tangible book value per share after this offering. Based on the initial public offering price of $13.00 per share, the midpoint of the price range set forth on the cover page of this prospectus, you will experience immediate dilution of $8.16 per share, representing the difference between our pro forma as adjusted net tangible book value per share after giving effect to this offering and the initial public offering price. In addition, purchasers of common stock in this offering

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will have contributed 87.8% of the aggregate price paid by all purchasers of our common stock but will own only approximately 27.5% of our total equity outstanding after this offering. Furthermore, if the underwriters exercise their over-allotment option, or outstanding options and warrants are exercised, you could experience further dilution. For a further description of the dilution that you will experience immediately after this offering, see "*Dilution*."

#### The market price of our common stock may be volatile, which could result in substantial losses for investors purchasing shares in this offering.
Even if an active trading market develops, the market price of our common stock may be highly volatile and could be subject to wide fluctuations. The initial public offering price for our common stock will be determined through negotiations with the underwriters. This initial public offering price may differ from the market price of our common stock after the offering. As a result, you may not be able to sell your common stock at or above the initial public offering price. Some of the factors that may cause the market price of our common stock to fluctuate include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions in the industries in which our customers operate, including the Aerospace, Defense and Government sector;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delays or setbacks in the creation, production or sale of new or existing products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the success of existing or new competitive products or technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory or legal developments in the United States and other countries in which we operate or that we pursue expansion in;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the anticipated future size and growth rate of our market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developments or disputes concerning patent applications, issued patents or other proprietary rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recruitment or departure of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the commencement of or developments in litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated changes in estimates as to financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcement or expectation of additional financing efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or our competitors of significant business developments, acquisitions, new offerings, licenses, strategic partnerships, joint ventures or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of pandemics, epidemics, endemics and other public health emergencies on our performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of political instability, natural disasters, events of terrorism or war, such as the ongoing conflict between Ukraine and Russia and in Iran and surrounding areas of the Middle East, and the corresponding tensions created from such conflict between Russia, the United States and countries in Europe as well as other countries such as the PRC and Taiwan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of our common stock by us, our insiders or other stockholders, or the anticipation of such sales, including if existing stockholders sell shares into the market when applicable "lock-up" periods end;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations between our actual operating results, or those of companies that are perceived to be similar to us, and the expectations of securities analysts, investors and the financial community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any forward-looking financial or operating information we may provide to the public or securities analysts, any changes in this information or our failure to meet expectations based on this information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in estimates or recommendations by securities analysts, if any, that cover our stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• various macroeconomic events, including changes in inflation, interest rates and overall economic conditions and uncertainties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase in the rate of returns of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic, industry and market conditions, including economic recessions or slowdowns; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the other factors described in this "*Risk Factors*" section.

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In recent years, the stock market in general has experienced significant price and volume fluctuations that have often been unrelated or disproportionate to changes in the operating performance of the companies whose stock is experiencing those price and volume fluctuations. Further, the stock market in general has been highly volatile due to various macroeconomic events. Broad market and industry factors may seriously affect the market price of our common stock, regardless of our actual operating performance. These fluctuations may be even more pronounced in the trading market for our stock shortly following this offering. Following periods of such volatility in the market price of a company's securities, securities class action litigation has often been brought against that company. Because of the potential volatility of our stock price, we may become the target of securities litigation in the future. Securities litigation could result in substantial costs and divert management's attention and resources from our business.

***There may not be an active trading market for our common stock, which may cause shares of our common stock to trade at a discount from the initial public offering price and make it difficult to sell the shares of common stock you purchase.***

Prior to this offering, there has been no public market for our common stock. It is possible that after this offering, an active trading market will not develop or, if developed, that any market will not be sustained, which would make it difficult for you to sell your shares of common stock at an attractive price or at all. The lack of an active market may impair the value of your shares or your ability to sell your shares at the time you wish to sell them or at a price that you consider reasonable. The initial public offering price per share of common stock will be determined by agreement among us and the representative of the underwriters and may not be indicative of the price at which shares of our common stock will trade in the public market, if any, after this offering. The market value of our common stock may decrease from the initial public offering price. Furthermore, an inactive market may also impair our ability to raise capital in the future by selling shares of our common stock.

***We are an "emerging growth company" and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our common stock less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act. We will remain an "emerging growth company" until the earliest to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year during which our total annual revenue equals or exceeds $1.235 billion (subject to adjustment for inflation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year following the fifth anniversary of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we have, during the previous three-year period, issued more than $1 billion in non-convertible debt; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we are deemed to be a "large accelerated filer" under the Exchange Act.

As a result of our "emerging growth company" status, we may use exemptions from various reporting requirements that would otherwise be applicable to public companies including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Investors may find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and the market price of our common stock may be adversely affected and more volatile.

***We will incur increased costs and become subject to additional regulations and requirements as a result of becoming a public company, which could lower our profits or make it more difficult to run our business.***

As a public company, we will incur significant legal, accounting, board of directors and other expenses that we have not incurred as a private company, including costs associated with public company reporting requirements. We have also incurred and will continue to incur costs associated with the Sarbanes-Oxley Act and related rules implemented by the SEC and the exchange on which we have applied for our securities to be listed. The expenses generally incurred by public companies for reporting and corporate governance purposes have been increasing. We expect these rules and regulations to increase our legal and financial compliance costs and to make some activities

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more time-consuming and costly, although we are currently unable to estimate these costs with any degree of certainty. These laws and regulations also could make it more difficult or costly for us to obtain certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. These laws and regulations could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, on our board committees or as our executive officers. Furthermore, if we are unable to satisfy our obligations as a public company, we could be subject to delisting of our common stock, fines, sanctions, other regulatory action and potentially civil litigation.

***We do not intend to pay dividends in the foreseeable future. As a result, your ability to achieve a return on your investment will depend on appreciation in the market price of our common stock.***

The Elmet Group Co. has never declared or paid cash dividends on our capital stock, and we do not currently intend to pay any cash dividends on our capital stock in the foreseeable future. We currently intend to retain all available funds and any future earnings to fund the development and expansion of our business. Any future determination related to dividend policy will be made at the discretion of our board of directors, subject to applicable laws, and will depend upon, among other factors, our results of operations, prospects, financial condition, contractual restrictions and capital requirements. In addition, our ability to pay cash dividends on our capital stock may be limited by the terms of any future debt or preferred securities we issue or any future credit facilities we enter into. Accordingly, investors must for the foreseeable future rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.

***If our operating and financial performance in any given period does not meet any guidance that we provide to the public, the market price of our common stock may decline.***

We may, but are not obligated to, provide public guidance on our expected operating and financial results for future periods. Any such guidance will be comprised of forward-looking statements subject to the risks and uncertainties described in this prospectus and in our other public filings and public statements. Our actual results may not always be in line with or exceed any guidance we have provided, especially in times of economic uncertainty. If actual circumstances differ from those in our assumptions, our operating and financial results could fall below our publicly announced guidance or the expectations of investors. If, in the future, our operating or financial results for a particular period do not meet any guidance we provide or the expectations of investment analysts or investors generally, or if we reduce our guidance for future periods, the market price of our common stock may decline. Even if we do issue public guidance, there can be no assurance that we will continue to do so in the future.

#### We will have broad discretion in the use of net proceeds to us from this offering and may not use them effectively.
We will have broad discretion in the application of the net proceeds to us from this offering, including for any of the purposes described in "*Use of Proceeds*," and you will not have the opportunity as part of your investment decision to assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds from this offering, their ultimate use may vary substantially from their currently intended use. If we do not use the net proceeds that we receive in this offering effectively, our business, financial condition, results of operations, and prospects could be harmed, and the market price of our common stock could decline. Pending their use, we may invest the net proceeds from this offering in short-term, investment-grade, interest-bearing securities such as money market accounts, certificates of deposit, commercial paper and guaranteed obligations of the U.S. government that may not generate a high yield for our stockholders. These investments may not yield a favorable return to our investors.

#### Participation in this offering by our existing stockholders and / or their affiliated entities may reduce the public float for our common stock.
To the extent certain of our existing stockholders and their affiliated entities participate in this offering, such purchases would reduce the non-affiliate public float of our shares, meaning the number of shares of our common stock that are not held by officers, directors, and controlling stockholders. A reduction in the public float could reduce the number of shares that are available to be traded at any given time, thereby restraining the liquidity of our common stock and depressing the price at which you may be able to sell shares of common stock purchased in this offering. While certain of our existing stockholders and their affiliated entities have expressed interest in potentially participating in this offering, there are no assurances that they will participate in the offering to a material extent, or at all.

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***Our principal stockholders and management own a significant percentage of our stock and will be able to exert significant control over matters subject to stockholder approval.***

After this offering, our directors, officers, holders of more than 5% of our outstanding stock and their respective affiliates will beneficially own shares representing approximately 70.1% of our outstanding shares (assuming no exercise of the underwriters' over-allotment option and no purchases of shares in this offering by anyone of this group, including any participation in the directed share program). As a result, these stockholders, if they act together, will be able to influence our management and affairs and all matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions. This concentration of ownership may have the effect of delaying or preventing a change in control of our Company and might affect the market price of our common stock.

#### Sales of a substantial number of shares of our common stock in the public market could cause our stock price to fall.
Sales of a substantial number of shares of our common stock in the public market could occur at any time. These sales, upon the expiration of the market standoff and lock-up agreements, the early release of these agreements or the perception in the market that the holders of a large number of shares of our common stock intend to sell shares, could reduce the market price of our common stock. After this offering, we expect that we will have 27,968,528 shares of our common stock outstanding (assuming no exercise of the underwriters' over-allotment option). Of these shares, the shares we are selling in this offering may be resold in the public market immediately, unless purchased by our executive officers, directors, current stockholders or other affiliates. The remaining shares, or 72.5% of our outstanding shares after this offering, are currently prohibited or otherwise restricted under securities laws, or lock-up agreements entered into by our directors, officers and substantially all of our stockholders with the underwriters. However, subject to applicable securities law restrictions, prohibitions and restrictions on the sale of these shares in the public market will be lifted beginning 180 days after the date of this prospectus. Cantor may release all or some portion of the shares subject to lock-up agreements at any time and for any reason.

All of the shares of common stock sold in this offering will be freely tradable without restriction or further registration under the Securities Act, except that any shares held by our affiliates, as that term is defined under Rule 144 of the Securities Act ("Rule 144"), may be sold only in compliance with the limitations described in "*Shares Eligible for Future Sale — Affiliate Resales of Restricted Securities*."

In addition, shares issued upon the exercise of stock options or stock appreciation rights pursuant to future awards granted under our equity incentive plans will become available for sale in the public market to the extent permitted by the provisions of applicable vesting schedules, any applicable market standoff and lock-up agreements and Rule 144 and Rule 701 under the Securities Act ("Rule 701"). See "*Shares Eligible for Future Sale*" for additional information.

After the consummation of this offering, we intend to file a registration statement on Form S-8 providing for the registration of all shares of our common stock that we may issue under our equity compensation plans. Once we register these shares, they can be freely sold in the public market upon issuance and once vested, subject to volume limitations applicable to affiliates and the lock-up agreements described under "*Underwriting*." If any of these additional shares are sold, or if it is perceived that they will be sold, in the public market, the market price of our common stock could decline.

***Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable and may lead to entrenchment of management.***

Our second amended and restated certificate of incorporation and amended and restated bylaws that will be in effect immediately prior to the consummation of this offering will contain provisions that could delay or prevent changes in control or changes in our management without the consent of our board of directors. These provisions will include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a classified board of directors with three-year staggered terms, which may delay the ability of stockholders to change the membership of a majority of our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the required approval of at least 66-2/3% of the shares entitled to vote to remove a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our board of directors to authorize the issuance of shares of preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquiror;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our board of directors to alter our amended and restated bylaws without obtaining stockholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the required approval of at least 66-2/3% of the shares entitled to vote to adopt, amend or repeal our amended and restated bylaws or repeal the provisions of our amended and restated certificate of incorporation regarding the election and removal of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exclusive forum provision providing that the Court of Chancery of the State of Delaware will be the exclusive forum for certain actions and proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that a special meeting of stockholders may be called only by the board of directors, which may delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advance notice procedures that stockholders must comply with in order to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders' meeting, which may discourage or deter a potential acquiror from conducting a solicitation of proxies to elect the acquiror's own slate of directors or otherwise attempting to obtain control of us.

We are also subject to the anti-takeover provisions contained in Section 203 of the General Corporation Law of the State of Delaware (the "Delaware General Corporation Law"). Under Section 203, a corporation may not, in general, engage in a business combination with any holder of 15% or more of its capital stock unless the holder has held the stock for three years or, among other exceptions, the board of directors has approved the transaction. For a description of our capital stock, see "*Description of Capital Stock*."

***Claims for indemnification by our directors, officers and other employees or agents may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.***

Our second amended and restated certificate of incorporation and amended and restated bylaws that will be in effect immediately prior to the consummation of this offering will provide that we will indemnify our directors and officers, in each case to the fullest extent permitted by Delaware law. In addition, as permitted by Section 145 of the Delaware General Corporation Law, our amended and restated bylaws to be effective immediately prior to the completion of this offering and our indemnification agreements that we have entered into with our directors, officers and certain other employees will provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will indemnify our directors and officers for serving us in those capacities or for serving other business enterprises at our request, to the fullest extent permitted by Delaware law. Delaware law provides that a corporation may indemnify such person if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the registrant and, with respect to any criminal proceeding, had no reasonable cause to believe such person's conduct was unlawful;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may, in our discretion, indemnify employees and agents in those circumstances where indemnification is permitted by applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are required to advance expenses, as incurred, to our directors and officers in connection with defending a proceeding, except that such directors or officers shall undertake to repay such advances if it is ultimately determined that such person is not entitled to indemnification;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we will not be obligated pursuant to our amended and restated bylaws to indemnify a person with respect to proceedings initiated by that person against us or our other indemnitees, except with respect to proceedings authorized by our board of directors or brought to enforce a right to indemnification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the rights conferred in our amended and restated bylaws are not exclusive, and we are authorized to enter into indemnification agreements with our directors, officers, employees, and agents and to obtain insurance to indemnify such persons; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not retroactively amend our amended and restated bylaws provisions to reduce our indemnification obligations to directors, officers, employees, and agents.

***Our second amended and restated certificate of incorporation and our amended and restated bylaws will provide that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders and that the federal district courts shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. These restrictions could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees or the underwriters or any offering giving rise to such claim.***

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#### USE OF PROCEEDS
We estimate that the net proceeds from the sale of the shares of common stock we are offering will be approximately $90.6 million based on an assumed offering price of $13.00 per share (which represents the midpoint of the estimated range of the initial public offering price shown on the front cover of this prospectus). If the representative of the underwriters fully exercises the over-allotment option, the net proceeds of the shares we sell will be approximately $104.4 million. "Net proceeds" is what we expect to receive after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.

The principal purposes of this offering are to obtain additional capital to support our operations, to create a public market for our common stock and to facilitate our future access to the public equity markets. We currently intend that the net proceeds received by us from this offering will be used in part for the repayment of certain debts, including (i) the Great Falls Term Loan (as defined below), (ii) the President Line of Credit (as defined below) and (iii) pre-Reorganization intercompany debt owed to AAI, as described below, with the remainder of the proceeds to be put toward working capital, growth capital (as discussed below), and general corporate purposes.

The Great Falls Term Loan is held by Great Falls Property, LLC, an entity owned by George Schott, a greater than 10% stockholder of the Company, and matures on November 6, 2028. As of December 31, 2025, approximately $15.0 million of principal was outstanding under the Great Falls Term Loan. Borrowings under the Great Falls Term Loan accrue interest monthly based on a floating rate equal to the prime rate as reported by the Wall Street Journal plus a spread of 1.00%, with a floor of 9.50%. We intend to repay the Great Falls Term Loan in full with the proceeds of this offering. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Indebtedness — Term Loans*" below for more information on the Great Falls Term Loan.

The President Line of Credit is held by our Chief Executive Officer and Chairman, Peter V. Anania, and matures on the earlier of the consummation of this offering or July 1, 2026. As of December 31, 2025, approximately $1.8 million of principal was outstanding under the President Line of Credit. Borrowings under the President Line of Credit accrue interest monthly based on a stated interest rate of 9.00%. We intend to repay the President Line of Credit in full with the proceeds of this offering. See *Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Indebtedness — Line of Credit Facilities.*"

Prior to the Reorganization, AAI was a consolidated subsidiary of A&A and engaged in intercompany transactions with our other consolidated subsidiaries. As a result of the reorganization, AAI is no longer a subsidiary of the Company, and amounts due to AAI are no longer intercompany debts that may be eliminated in consolidation. As of the date of this prospectus, AAI, which is now a significant stockholder of the Company and which is controlled by Mr. Anania, holds a promissory note issued by the Company on January 2, 2026, as a net settlement of debts and receivables with outstanding borrowings of approximately $2.4 million (the "AAI Note"). Borrowings under the AAI Note accrues interest at a rate of 6.00% per annum. We intend to repay the AAI Note in full with the proceeds of this offering.

Pursuant to the terms of our Wells Fargo LOC (as defined below), all funds deposited into our operating account are automatically credited against the outstanding balance of the Wells Fargo LOC. These funds are immediately available to us for use. We consider these funds available for all working capital needs. Accordingly, they are recorded in working capital in the chart below. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Indebtedness — Line of Credit Facilities*" below for more information on the Wells Fargo LOC.

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We routinely consider the acquisition of assets, businesses and investments that we believe will expand or complement our current portfolio and allow access to new customers or technologies, which we view as an important part of our development. We may also use a portion of the net proceeds from this offering, which we refer to as "growth capital," to acquire such complimentary assets, businesses or investments; however, we currently have no agreements or commitments to complete any such transaction. See "*Business — Our Growth Strategy — Identifying and Integrating Select Acquisitions.*"

We anticipate an approximate allocation of the use of net proceeds as follows:

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| | | |
|:---|:---|:---|
|  **Use of Net Proceeds** | **$(in millions)\*** | **%** |
|  Repayment of Debt | $19.8 | 21.8% |
|  Growth Capital | 44.2 | 48.8% |
|  Working Capital and General Corporate Purposes | 26.6 | 29.4% |
|  **Total** | $**90.6** | **100%** |

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____________

\* Assuming the over-allotment option is not exercised.

While we expect to use the net proceeds for the purposes described above, the amounts and timing of our actual expenditures will depend upon numerous factors, including the aggregate amount raised in this offering. We anticipate that the expected net proceeds from this offering, if added to our current cash and cash equivalents, to be sufficient to fund our operations for at least the next 12 months. In the event that our plans change, our assumptions change or prove to be inaccurate, we undertake significant transactions like acquisitions or the net proceeds of this offering are less than as set forth herein or otherwise prove to be insufficient, it may be necessary or advisable to reallocate proceeds or curtail expansion activities, or we may be required to seek additional financing or curtail our operations. As a result of the foregoing, our success will be affected by our discretion and judgment with respect to the application and allocation of the net proceeds of this offering.

Each $1.00 increase (decrease) in the assumed initial public offering price of $13.00 per share (the midpoint of the estimated price range set forth on the cover page of this prospectus) would increase (decrease) the net proceeds to us from this offering, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us, by approximately $7.1 million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same. We may also increase or decrease the number of shares we are offering. An increase (decrease) of 1,000,000 in the number of shares we are offering would increase (decrease) the net proceeds to us from this offering, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us, by approximately $12.0 million, assuming the initial public offering price stays the same. We do not expect that a change in the offering price or the number of shares by these amounts would have a material effect on our intended uses of the net proceeds from this offering, although it may impact the amount of time prior to which we may need to seek additional capital.

Pending their use, we plan to invest the net proceeds from this offering in short- and intermediate-term, interest-bearing obligations, investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government.

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#### CAPITALIZATION
The following table sets forth our cash and equivalents and capitalization as of December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis for Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma basis, after giving effect to the Reorganization; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma as adjusted basis, after giving effect to (i) the pro forma adjustments set forth above; (ii) the settlement of certain debt arrangements (see "*Use of Proceeds*" for descriptions of the debt to be settled in connection with the initial public offering), and an increase to additional paid-in capital of $8.9 million and a decrease in retained earnings related to stock-based compensation expense of $12.6 million associated with stock-based awards, including restricted stock and SARs (with both service-based and performance-based vesting conditions) for which the service-based vesting conditions were satisfied as of December 31, 2025, and for which the liquidity event-related performance-based vesting condition will be satisfied in connection with this offering, as if each such event had occurred on December 31, 2025; and (iii) the issuance and sale by us of 7,692,307 shares of our common stock in this offering at the assumed initial public offering price of $13.00 per share (the midpoint of the price range set forth on the cover page of this prospectus), after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The pro forma and pro forma as adjusted information below is illustrative only, and our cash and 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. For more information, see "*Use of Proceeds*" and "*Unaudited Pro Forma Condensed Consolidated Financial Information.*" You should read the information in this table together with our financial statements and accompanying notes and "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" appearing elsewhere in this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  **($ in thousands)** | **Actual<br>Anania & <br>Associates and <br>Subsidiaries <br>(a/k/a <br>The Elmet <br>Group Co.)** | **<br>Pro Forma** | **Pro Forma <br>As Adjusted<sup>(1)</sup>** |
|  Cash | $1759 | $1713 | $68918 |
|  Indebtedness: |  |  |  |
|  Long-term debt<sup>(2)</sup> | 36210 | 35710 | 35710 |
|  Long-term debt – related party<sup>(2)</sup> | 17319 | 19133 |  |
|  Total indebtedness | 53529 | 54843 | 35710 |
|  Stockholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares of preferred stock, $0.001 par value, no shares authorized, issued and outstanding on an actual Anania & Associates and Subsidiaries (a/k/a The Elmet Group Co.); 20,000,000 shares authorized, no shares issued and outstanding on a pro forma and pro forma as adjusted basis |  |  |  |
| &nbsp;&nbsp;&nbsp; Shares of Class A common stock, $0.001 par value; no shares authorized, issued and outstanding on an actual Anania & Associates and Subsidiaries (a/k/a The Elmet Group Co.) basis; 500,000,000 shares authorized, 20,122,721 shares issued and outstanding on a pro forma basis; 500,000,000 shares authorized, 27,968,528 shares issued and outstanding on a pro forma as adjusted basis<sup>(3)</sup> |  | 20 | 28 |

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  **($ in thousands)** | **Actual<br>Anania & <br>Associates and <br>Subsidiaries <br>(a/k/a <br>The Elmet <br>Group Co.)** | **<br>Pro Forma** | **Pro Forma <br>As Adjusted<sup>(1)</sup>** |
| &nbsp;&nbsp;&nbsp; Shares of Class B common stock, $0.001 par value, no shares authorized, issued and outstanding on an actual Anania & Associates and Subsidiaries (a/k/a The Elmet Group Co.) basis; 40,000,000 shares authorized, 466 shares issued and outstanding on a pro forma basis; 40,000,000 shares authorized, no shares issued and outstanding on a pro forma as adjusted basis<sup>(4)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp; Additional paid-in-capital | 1516 | 15366 | 114788 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 55119 | 41193 | 28370 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | 280 | 280 | 280 |
| &nbsp;&nbsp;&nbsp; Noncontrolling interests in consolidated subsidiaries | 3542 |  |  |
| &nbsp;&nbsp;&nbsp; Total stockholders' equity | 60457 | 56859 | 143466 |
|  Total capitalization | $113986 | $111702 | $179176 |

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____________

(1) The pro forma as adjusted information set forth above is illustrative only and will change based on the actual initial public offering price and other terms of this offering determined at pricing.

(2) Includes both current and noncurrent portions from the historical Anania & Associates and Subsidiaries (a/k/a The Elmet Group Co.) consolidated financial statements included elsewhere in this prospectus.

(3) The Class A Common Stock will be consolidated with Class B Common Stock into a single class of common stock immediately upon effectiveness of the registration statement of which this prospectus forms a part.

(4) All issued and outstanding shares of Class B Common Stock will be repurchased by the Company and canceled immediately prior to the Class B Common Stock being consolidated with the Class A Common Stock into a single class of common stock.

The number of shares of our common stock to be outstanding upon completion of this offering are based on 20,122,721 shares of our common stock outstanding as of the date of this prospectus and the expected vesting of 153,500 shares of restricted stock upon the consummation of this offering, and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 338,640 shares of common stock subject to vested SARs issued under our 2016 Plan with a base price of $0.91 per SAR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 338,640 shares of common stock subject to unvested SARs issued under our 2016 Plan with a base price of $0.91 per SAR and which will vest upon the consummation of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 310,420 shares of common stock subject to unvested SARs issued under our 2016 Plan with a base price of $0.91 and which will vest and be net cash settled upon the consummation of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 457,390 shares of unvested restricted stock that will vest more than sixty days after the date of this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 17,500 shares of common stock reserved for issuance under our 2025 Plan.

Each $1.00 increase (decrease) in the assumed initial public offering price of $13.00 per share (the midpoint of the estimated price range set forth on the cover page of this prospectus) would increase (decrease) the amount of cash, additional paid-in capital, total stockholders' equity and total capitalization on a pro forma as adjusted basis by approximately $7.1 million, assuming the number of shares, as 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. Similarly, each increase (decrease) of 1,000,000 shares offered by us would increase (decrease) cash, total stockholders' equity and total capitalization on a pro forma as adjusted basis by approximately $12.0 million, assuming the initial public offering price of $13.00 per share (the midpoint of the estimated 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.

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#### DILUTION
If you purchase shares of our common stock in this offering, your interest will be diluted immediately to the extent of the difference between the assumed public offering price of $13.00 per share (the midpoint of the range appearing on the front cover of this prospectus) and the as adjusted net tangible book value per share of our common stock immediately upon the consummation of this offering.

Our pro forma net tangible book value as of December 31, 2025 was $47.7 million, or $2.37 per share of our common stock, based on the total number of shares of our common stock outstanding as of December 31, 2025, after giving effect to the Reorganization. Pro forma net tangible book value represents the amount of our total tangible assets less our total liabilities divided by the number of shares of our common stock outstanding as of December 31, 2025, after giving effect to the Reorganization.

After giving effect to (i) the pro forma adjustments set forth above, (ii) the settlement of certain debt arrangements (see "*Use of Proceeds*" for descriptions of the debt to be settled in connection with the initial public offering), and (iii) our issuance and sale of 7,692,307 shares of our common stock in this offering at an assumed public offering price of $13.00 per share (the midpoint of the range appearing on the front cover of this prospectus), and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us, excluding the impact associated with the value of the Broker's Warrants and the underwriter's over-allotment option, our pro forma as adjusted net tangible book value as of December 31, 2025 would have been $135.1 million, or $4.83 per share of our common stock. This amount represents an immediate increase in net tangible book value of $2.46 per share of our common stock to our existing stockholders and an immediate dilution in net tangible book value of $8.17 per share to purchasers of our common stock in this offering. We determine dilution by subtracting the pro forma as adjusted net tangible book value per share after this offering from the initial public offering price per share paid by new investors.

The following table illustrates this dilution:

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| | | |
|:---|:---|:---|
|  Assumed public offering price per share of common stock |  | $13.00 |
|  Pro forma net tangible book value per share as of December 31, <br>2025 | $2.37 |  |
|  Increase in pro forma net tangible book value per share attributable to investors purchasing shares of common stock in this offering | $2.46 |  |
|  Pro forma as adjusted net tangible book value per share immediately after this offering |  | $4.83 |
|  Dilution per share to new investors in the offering |  | $8.17 |

---

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.

A $1.00 increase in the assumed initial public offering price of $13.00 per share of our common stock would increase our pro forma as adjusted net tangible book value after giving effect to this offering by $7.1 million, or by $0.25 per share of our common stock, assuming the number of shares of common stock offered by us remains the same and after deducting the estimated underwriting discount and commissions and estimated offering expenses payable by us. A $1.00 decrease in the assumed initial public offering price per share would result in equal changes in the opposite direction.

An increase of 1,000,000 shares offered by us would increase our pro forma as adjusted net tangible book value after giving effect to this offering by $12.0 million, or by $0.25 per share of our common stock, assuming the initial public offering price offered by us remains the same and after deducting the estimated underwriting discount and commissions and estimated offering expenses payable by us. A decrease of 1,000,000 shares offered by us would result in equal changes in the opposite direction.

If the representative of the underwriters exercises its option in full to purchase 1,153,846 additional shares of our common stock in this offering at the assumed offering price of $13.00 per share, the pro forma net tangible book value per share as adjusted to give effect to this offering would be $5.11 per share of our common stock, the increase in the as pro forma adjusted net tangible book value per share to existing stockholders would be $2.74 per share of our common stock and the dilution to new investors purchasing securities in this offering would be $7.89 per share of our common stock.

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The following charts illustrate, as of December 31, 2025, on a pro forma as adjusted basis, as described above, the number of shares of our common stock, the total consideration, and the weighted-average price per share (i) paid to us by existing stockholders and (ii) to be paid by new investors acquiring our common stock in this offering at an assumed initial public offering price of $13.00 per share, before deducting underwriting discounts and commissions and estimated offering expenses payable by us. As the table shows, new investors purchasing shares of our common stock in this offering will pay an average price per share substantially higher than our existing stockholders paid.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Weighted <br>Average Price** |
|  | **Amount<br> (#)** | **Percent<br> (%)** | **Amount<br> ($)** | **Percent<br> (%)** | **Per Share<br> ($)** |
|  Existing stockholders | 20276221<br><sup>(1)</sup> | 72.5% | $13869661 | 12.2% | $0.68 |
|  New investors | 7692307 | 27.5% | $100000000 | 87.8% | $13.00 |
|  Total | 27968528 | 100% | $113869661 | 100.0% | $4.07 |

---

____________

(1) The number of shares of common stock to be outstanding after this offering is based on 20,122,721 shares of common stock outstanding as of December 31, 2025, assumes no exercise of the underwriters' over-allotment option or the Broker's Warrants and the vesting of 153,500 shares of restricted stock upon the consummation of the offering, and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 338,640 shares of common stock subject to vested SARs issued under our 2016 Plan with a base price of $0.91;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 338,640 shares of common stock subject to unvested SARs issued under our 2016 Plan with a base price of $0.91 and which will vest upon the consummation of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 310,420 shares of common stock subject to unvested SARs issued under our 2016 Plan with a base price of $0.91 and which will vest and be net cash settled upon the consummation of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 457,390 shares of unvested restricted stock that will vest more than sixty days after the date of this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 17,500 shares of common stock reserved for issuance under our 2025 Plan.

Each $1.00 increase (decrease) in the assumed initial public offering price of $13.00 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 and total consideration paid by all stockholders by approximately $7.7 million, assuming that the number of shares of common stock offered by us, as set forth on the cover page of this prospectus, remains the same, before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. Each 1,000,000 share increase (decrease) in the number of shares offered by us would increase (decrease) the total consideration paid by new investors and total consideration paid by all stockholders by $13.0 million, assuming the assumed initial public offering price of $13.00 per share of common stock remains the same, before deducting estimated underwriting discounts and commissions.

We may choose to raise additional capital through the sale of equity or convertible debt securities 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 stock options or warrants are exercised, restricted stock awards are vested and settled or we issue additional shares of our common stock or other equity or convertible debt securities in the future, there could be further dilution to holders of our common stock.

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#### DIVIDEND POLICY
The Elmet Group Co. has never declared or paid cash dividends on its capital stock. We do not anticipate paying any cash dividends in the foreseeable future. The payment of dividends, if any, in the future is within the discretion of our board of directors and will depend on our earnings, capital requirements and our financial condition and other relevant facts. We currently intend to retain all future earnings, if any, to finance the development and growth of our business.

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION <br> AND RESULTS OF OPERAT IONS
*The following is a discussion and analysis of our financial condition and results of operations together with the section titled "Summary of Consolidated Financial Information" and our audited consolidated financial statements and related notes, each included elsewhere in this prospectus. All amounts included herein with respect to the years ended December 31, 2025 and 2024 are derived from the audited consolidated financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) included elsewhere in this prospectus. Our financial statements have been prepared in accordance with U.S. GAAP. As of the consummation of the Reorganization on January 2, 2026, we acquired all of the outstanding membership interests of Elmet Tech and Microwave Techniques and all of the common stock of A&A. The acquisition of the membership interests of Elmet Tech and Microwave Techniques and all of the common stock of A&A was accounted for as a transaction between entities under common control. Prior to the Reorganization, Elmet was a newly incorporated entity, had not engaged in any business or other activities except in connection with its formation and had no assets or liabilities during the periods presented in this section. Accordingly, this prospectus includes certain historical consolidated financial and other data for A&A, Elmet Tech and Microwave Techniques, excluding discontinued operations unless otherwise noted. Following the Reorganization, A&A, Elmet Tech and Microwave Techniques became the predecessors of Elmet for financial reporting purposes. Elmet is now a holding company, and its only material assets are the membership interests in Elmet Tech and Microwave Techniques, which Elmet holds directly. For purposes of this prospectus, we refer to our two divisions as Critical Materials and Components and Engineered Microwave Products. Elmet Tech's operations encompass the CMC division and Microwave Techniques' operations compose the EMP division. As the sole member of Elmet Tech and Microwave Techniques and their respective subsidiaries, Elmet now operates and controls all of the business and affairs of the CMC and EMP divisions. All references in this section to "us" or "we" when used in a historical context refer to our predecessor companies, Elmet Tech, Microwave Techniques and A&A where appropriate, and when used in the present tense or prospectively refer to Elmet and our subsidiaries, collectively, or individually, as the context may require. Except where otherwise indicated, the information in this section does not give effect to the Reorganization (as defined above). In addition to historical consolidated financial information, the following discussions and other parts of this prospectus contain forward*-looking *statements that reflect our plans, objectives, expectations, intentions, and beliefs, which involve risks, uncertainties and assumptions. Our actual results could differ materially from those discussed in these forward*-looking *statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the sections titled "Cautionary Note Regarding Forward*-Looking *Statements" and "Risk Factors" included elsewhere in this prospectus.*

#### Overview
We provide precision-engineered components and advanced high-energy systems for growth markets requiring advanced technology involving Critical Materials, such as tungsten, molybdenum and niobium and High-Power Microwave, such as plasma, radar, and high energy research. Our products and solutions are integral to the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics and Energy industries. These are industries which require components capable of performing in extreme thermal, electromagnetic, and technical environments for vital use cases. Our fundamental mission is to strengthen U.S. domestic manufacturing capabilities to support the United States and its allies' needs in both Critical Materials and advanced High-Power Microwave systems. We believe we are the leader and sole-source U.S. producer of many highly engineered Critical Materials products and a leading designer and manufacturer of High-Power Microwave components in the United States.

As of December 31, 2025, our business was organized into two divisions: (i) Critical Materials Components and (ii) Engineered Microwave Products. Through our CMC and EMP divisions, we own and operate a vertically integrated engineering-to-production system, with custom design, development, and processing expertise for Critical Materials and High-Power Microwave that we believe is unmatched in our markets and the industries in which we compete. Our High-Power Microwave expertise capitalizes on our vertically integrated engineering-to-production system, enabling us to deliver microwave energy solutions with custom design and development expertise. Our Critical Materials engineering and production expertise enables us to custom design elegant solutions for some of the most challenging environments on the planet. We believe these capabilities provide a significant competitive advantage in our markets and the industries in which we compete.

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We are proud to be the only U.S.-owned and U.S.-based manufacturer of highly engineered tungsten and molybdenum products through our CMC division. We control the powder production, pressing, sintering, forming, milling and engineering of tungsten and molybdenum oxide to the finished engineered product. Our CMC products support many of the DoW's most critical programs on land, sea and air. Our engineering expertise in our EMP division has enabled us to provide products and services to a wide variety of existing and emerging programs also supporting the DoW and space sector leaders like Lockheed Martin, Raytheon, Teledyne and NASA. Our products are widely used in over 95 national lab programs, including in benchmark research and development facilities such as Fermi and Los Alamos and many others around the world. Because of the common relationship among some of the products we offer, we are regularly able to incorporate our Critical Materials and our High-Power Microwave components in the same defense programs and high-powered energy research facilities throughout the United States, United Kingdom and Europe.

Through our CMC and EMP divisions, our comprehensive in-house design and manufacturing capabilities are supported by close to 100 engineers, engineering technicians, RF experts and metallurgists. Our customers benefit from the specialized expertise, know-how and product design we have developed in both engineered high-temperature, highly dense Critical Materials and High-Power Microwave technology. Our specific capabilities provide our customers with a value proposition which allows these customers to simplify their supply chain, increase their speed to market and maintain competitive cost structures. Our engineering expertise and established track record position us to serve customers who need a systems solution required to withstand extreme environments and meet stringent performance requirements. These customers rely on us to deliver technical design and scaled manufacturing of integrated systems to meet these standards. Given the critical nature of the components and solutions we provide, we engage with customers early in their design cycle to develop difficult-to-replicate solutions, using our difficult-to-replicate processes and equipment, creating a competitive advantage.

Through our CMC and EMP divisions, we leverage our vertical integration and engineering capabilities to provide our products and services to five high-growth, strategically critical U.S. and global end-markets, who require components capable of performing in extreme thermal, electromagnetic, and mechanical environments including: Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics and Energy.

*Corporate Reorganization and Structure*

We are a Delaware corporation with headquarters in Portland, Maine and founded on September 13, 2024, for the purpose of acquiring, owning and operating Elmet Tech and Microwave Techniques. On January 2, 2026, we completed the Reorganization, as a result of which we now wholly own our two primary operating subsidiaries, Elmet Tech and Microwave Techniques (see *"— Reorganization*" below and the section entitled "*Business — Corporate History and Reorganization — Reorganization*" included elsewhere in this prospectus). We acquired our original interest in Elmet Tech, a company originally established in 1929, in 2015 and became Elmet Tech's majority member in 2021. In 2023, we acquired H.C. Starck's operating entities H.C. Starck Solutions Coldwater LLC and H.C. Starck Solutions Euclid LLC. These entities were renamed Elmet Coldwater LLC and Elmet Euclid LLC in 2024. Also in 2024, all the operating assets of Elmet Coldwater and Elmet Euclid were transferred to Elmet Tech. Elmet Coldwater and Elmet Euclid now act as real estate holding companies. We have owned Microwave Techniques, which originally began operations in 1989, since 2000. In 2023, we acquired Valvo in Hamburg, Germany for Microwave Techniques. We followed up this acquisition with the acquisition of Symphony in November 2025.

*Reorganization*

Prior to January 2, 2026, Peter V. Anania, our Chief Executive Officer and Chairman, was the President and majority stockholder of A&A, and through his personal holdings and the holdings of A&A, Mr. Anania was the holder of a majority of the voting interests of Anania & Associates Investment Company, LLC ("AAI"). Prior to January 2, 2026, AAI was the majority holder of the membership interests of each of Elmet Tech and Microwave Techniques. The Reorganization will be prospectively recognized in 2026 with recasting of historical financial information.

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On October 1, 2025, A&A distributed its membership interests in Polymer Laboratories and Solutions LLC ("Poly Labs") that it held to its stockholders (see "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Recent Acquisitions and Divestitures — Recent Divestitures*" and *"Management's Discussion and Analysis of Financial Condition and Results of Operations — Discontinued Operations"* herein).

On January 2, 2026 (the following actions and transactions collectively termed the "Reorganization"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AAI distributed the membership interests in Elmet Tech and Microwave Techniques that it held to A&A in redemption of A&A's interests in AAI, which resulted in A&A becoming the direct, rather than indirect, owner of the Elmet Tech and Microwave Techniques membership interests previously held by AAI, as well as A&A no longer being a member of AAI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We adopted our amended and restated certificate of incorporation, which, among other things, bifurcated our common stock into two classes, Class A Common Stock, par value $0.001 per share ("Class A Common Stock"), and Class B Common Stock, par value $0.001 per share ("Class B Common Stock"), with the Class A Common Stock having one vote per share and the Class B Common Stock having 10,000 votes per share but no economic rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We issued to Mr. Anania 466 shares of Class B Common Stock for an aggregate consideration of $25,000 (the "Subscription Agreement"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We directly acquired all of the (i) outstanding membership interests of each of Elmet Tech and Microwave Techniques and (ii) the outstanding stock of A&A (together, the "Contributed Interests") in exchange for, in each case, shares of Class A Common Stock pursuant to a Contribution Agreement among the Company, the members of Elmet Tech, the members of Microwave Techniques and the stockholders of A&A (the "Contribution Agreement") and the cancellation of all of A&A's membership interests in Elmet Tech and Microwave Techniques.

The diagram below depicts the material aspects of our corporate structure after giving effect to the Reorganization and this offering.

![](tflowchart_001.jpg)

In addition, immediately prior to the effectiveness of the registration statement of which this prospectus forms a part, we will redeem and cancel all outstanding shares of the Class B Common Stock and file a second amended and restated certificate of incorporation which, among other things, will consolidate and reclassify all Class A Common Stock and Class B Common Stock into a single class of common stock.

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Our audited consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations reflect estimates and assumptions made by management. Events and changes in circumstances arising after December 31, 2025, including those resulting from the continuing impacts of the currently unfavorable macroeconomic climate, will be reflected in management's estimates for future periods.

#### Key Factors Impacting Our Performance

#### U.S. Government Spending and Federal Budget Uncertainty
Changes in the volume and relative mix of U.S. government spending as well as areas of spending growth could impact our business and results of operations. In particular, our results can be affected by shifts in strategies and priorities on homeland security, intelligence, defense-related programs and infrastructure. Changes in spending on technology and innovation, including cybersecurity, artificial intelligence, connected communities and physical infrastructure will also affect our business and results of operations. Cost-cutting and efficiency initiatives, along with current and future budget restrictions, spending cuts and shifts in priorities, could lead some of our customers, including those conducting significant business related to U.S. government contracts and funding, to reduce or delay orders. This may result in diminishing demand for our products and services.

Furthermore, change in grant funding through the DoW or other defense agencies or any disruption in the functioning of other government agencies, including national laboratories or other facilities, as a result of government closures and shutdowns, could increase our costs and negatively impact our results of operations.

There is also uncertainty around the timing, extent, nature and effect of congressional and other U.S. government actions to address budgetary constraints, spending caps on the discretionary budget for defense and non-defense departments and agencies. The ability of Congress to determine how to allocate the available resources and pass appropriations bills to fund both U.S. government departments and agencies that are, and are not, subject to the caps also makes fiscal planning a challenge. Budget deficits and the growing U.S. national debt may increase pressure on the U.S. government to reduce federal spending across all federal agencies, with uncertainty about the size and timing of those reductions. Any delays in the completion of future U.S. government budgets could in the future delay procurement of the products we provide or grants which we receive. A reduction in the amount, delays in or cancellations of funding for services or products we are contracted to provide to "Tier One" U.S. government contractors could have a material adverse effect on our business and results of operations. Significant delays or reductions in appropriations for programs which fund our capital expansion or incorporate our products and services, or changes in U.S. government priorities or spending levels more broadly may affect our business and could have a material adverse effect on our financial condition and results of operations. See *"Risk Factors — A portion of our revenue is derived from the sale of defense*-related *products through various contracts and subcontracts and are subject to risks related to the U.S. government. These contracts may be suspended, canceled or delayed, which could have an adverse impact on our revenues."*

#### The PRC's Export Controls and Related Trade Measures on Critical Materials
Our operations and those of our suppliers may be adversely affected by recent and potential future changes in international trade policies, including the PRC's restrictions on the export of molybdenum and tungsten and the imposition of tariffs on goods imported to the United States. The Chinese government has implemented export controls, licensing requirements and quotas that limit the availability of what has been deemed "dual use" materials, used in commercial and defense applications, for foreign buyers. These restrictions have the potential to reduce global supply, increase raw-material costs, and create significant volatility in the pricing and availability of these materials. Tungsten is very sensitive to the PRC's control of the global supply chain. If we or our suppliers are unable to obtain sufficient quantities of tungsten on commercially acceptable terms, our production timelines, input costs and product margins could be materially affected. We source the raw materials of our tungsten from suppliers outside of the PRC; however, we may be indirectly affected due to the collective disruption in the global tungsten supply chain, including increases in the global market prices of tungsten in response to actions of the PRC.

The outcome and duration of these trade restrictions and tariff regimes remain unknown and could change with geopolitical developments or modifications in governmental trade policy. Any escalation of export controls or expansion of tariff measures could intensify supply chain risks and suppress our operating results, cash flows and overall financial condition. While we continue to evaluate mitigation strategies — including supplier diversification,

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inventory management and contractual adjustments — there can be no assurance that these measures will be successful or economically feasible. See *"Risk Factors — Availability of, and volatility in the prices of, raw materials and energy prices and our ability to pass along increased costs to our customers could adversely affect our results of operations." and "— Uncertain foreign trade relations and associated tariffs, as well as our reliance on international suppliers for certain raw materials, could adversely impact our business."*

#### Operational Performance on Contracts
Revenue, net income and the timing of our cash flows depend on our ability to perform on our contracts and purchase orders in a timely manner. When agreeing to contractual terms, our management team makes assumptions and projections about future conditions and events. The accounting for our contracts and programs requires assumptions and estimates concerning these conditions and events, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost and availability of raw materials and components;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the productivity and availability of skilled labor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the complexity of the work to be performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our subcontractors' capacities, capabilities and lead times;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• equipment & tooling durability, capabilities and lead times to procure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• schedule requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• robustness of public utilities supporting our factories; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to protect against and respond to threats to our IT infrastructure and our confidential and proprietary information.

If there is a significant change in one or more of these circumstances, estimates or assumptions, or if the risks under our contracts are not managed adequately, the profitability of our operations could be adversely affected. This could result in a material change in our net income and margin.

The timing of our cash flows can be affected by rapid changes in material costs, in particular tungsten and molybdenum, and the availability of skilled labor. For instance, rapid market price increases of raw material feed stock can lead to temporary cash flow shortfalls. By contract, cash flow influxes will result from early completions compared to initial delivery estimates. Historically, this has resulted in, and could continue to result in, fluctuations in working capital levels and quarterly free cash flow results.

To manage these fluctuations, we have implemented several strategies, such as engaging in long-term strategic supply agreements, structuring our terms of sale to initiate prepayments and deposits from customers, restructuring our revolving debt facilities and incentivizing our workforce to deliver products within specifications and on time. Despite these measures, the inherent variability in order flow and material demand means that quarter-to-quarter comparisons of our results of operations may not necessarily be meaningful and should not be relied upon as indicators of future performance. We expect these fluctuations to persist, particularly as the materials, products and services with which we work become subject to higher global demand. However, we believe our proactive cash flow management strategies will help mitigate the impact of these fluctuations and contribute to our overall financial stability. See *"Risk Factors — Many of our customers are subject to significant fluctuations as a result of the cyclical nature of their industries and their sensitivity to general economic conditions, which could adversely affect their demand for our products and reduce our sales and profitability."*

#### Oversight
U.S. government procurement regulations impose various operational requirements on government contractors and their subcontractors. Non-compliance with these regulations could lead to civil or criminal penalties, which may materially adversely affect our operating results. U.S. government agencies routinely audit, review, investigate and scrutinize our performance, and that of our customers, under government contracts, and any failure by us or our customers to comply with the terms of those contracts and applicable laws could affect our operating results. If a government inquiry or investigation reveals improper or illegal activities, we or our customers may face civil or criminal penalties or administrative sanctions, including contract termination, fines, fee forfeiture, payment

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suspension, or suspension and debarment from conducting business with U.S. government agencies. Any of these actions could materially and adversely affect our reputation, business, financial condition, results of operations and cash flows. See *"Risk Factors — Government contracts are subject to extensive regulation, and failure to comply with such regulations may have a material adverse impact on our financial condition and results of operations."*

#### Acquisitions and Divestitures
*Historical Acquisitions*

We have successfully acquired and integrated a number of companies, and we believe we have a demonstrated track record of adding capabilities to supplement our expertise or fill in gaps.

Elmet Tech was originally established in 1929, and it became our CMC division through A&A's 2015 acquisition of a 49.5% interest. In December 2021, A&A purchased the controlling interest in Elmet Tech and expanded our platform in the Critical Materials market. Our subsequent acquisition of H.C. Starck's operating entities in 2023 expanded our technological capabilities, product offerings, capacity and engineering capabilities and allowed us to capture additional market share.

Relevant acquisitions for our EMP division include Mega Industries LLC ("Mega Industries"), Micro Communications, Inc. ("Microwave Communications"), Ferrite Microwave Technologies, Industrial Microwave Systems, Valvo and Symphony. Our acquisition of Mega Industries in 2000 established our platform in the microwave technology market. Our acquisitions of Micro Communications in 2014, Ferrite Microwave Technologies in 2020 and Industrial Microwave Systems in 2021 added technology, scarce engineering capabilities, capacity and market share. Our acquisition of Valvo in Hamburg, Germany in 2023 yielded a beachhead for the Company in Europe, while adding technology and expanding our product offerings. Our acquisition of Symphony, in November 2025 added new products, new customers and strong RF engineering experience.

*Recent Acquisitions*

On November 14, 2025, we acquired 100% of the equity interests of Symphony for an aggregate cash purchase price of approximately $0.5 million, membership units in one of our consolidated subsidiaries and an earnout tied to the revenue of two key Symphony customers, with a portion of the earnout conditioned upon the continued employment of the sellers through the third anniversary of closing. The acquisition of Symphony in November 2025 adds microwave system technology, capacity, key customer access and engineering resources to our EMP division.

*Recent Divestitures*

In November 2020, we acquired Poly Labs, a small-pour polyurethane foam manufacturer based in Lewiston, Maine. Poly Labs does not operate within the core business of either of our divisions. Therefore, in preparation for our initial public offering, on October 1, 2025, A&A divested its interest in Poly Labs by distributing the membership interests in Poly Labs that were held by A&A to A&A's individual stockholders. The results of operations associated with Poly Labs have been classified as discontinued operations in the audited consolidated financial statements for the years ended December 31, 2025 and 2024, and the results of operations for all periods presented have been recast to exclude Poly Labs from continuing operations (see — *Discontinued Operations*).

*Future Acquisitions*

While we are not currently party to any agreements with respect to any acquisition or similar events, we routinely consider the acquisition of businesses and investments we believe will expand or complement our current portfolio and allow access to new customers or technologies, which we view as an important part of our development. We also may explore the divestiture of assets no longer meeting our needs or strategy or which could perform better outside of our organization.

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#### Components of Results

#### Revenue
For our CMC and EMP divisions, substantially all of our revenue is generated from our highly engineered product portfolio providing our customers with critical material (tungsten, molybdenum and niobium) components and specialized precision-engineered RF components (waveguides, loads, terminations, couplers, circulators, isolators, windows and others) for High-Power Microwave systems. Our products and services range from metal powders, standard mill products such as bars, billets & sheets to a mix of microwave systems and components.

Depending on the nature of the product or service and the terms and conditions of our revenue contracts, we recognize revenue either at a point in time when title and risk of loss transfer to the customer or over time as we perform under our contracts. See "*— Critical Accounting Policies and Estimates — Revenue Recognition*" for additional details.

#### Cost of Goods Sold
Cost of goods sold consists of direct costs and indirect costs used in the manufacture of products sold to customers. Direct costs include labor, materials, subcontracts and other costs directly related to the production of specific products or execution of a specific contract. Indirect costs include expenses related to equipment maintenance, facilities maintenance, leases, rents, utilities, operations management labor, engineering labor, fringe benefits and depreciation.

#### Research and Development
Our research and development expenses include salaries, fringe benefits (such as health insurance, retirement plans, vacation and sick days) for our staff of expert metallurgists, RF engineers, electrical engineers and research and development scientists. Expenses related to the development of our highly engineered new products and processes are also included.

#### Sales and Marketing
Our sales and marketing expenses include salaries, variable compensation, fringe benefits (such as health insurance, retirement plans, vacation and sick days) for our sales personnel, which include sales engineers, industry specialists and persons performing sales related administrative functions. Our sales compensation plans are designed to incentivize growth and profitability, and accordingly the related expense will vary with performance, including revenue, gross profit and new order bookings. Some sales and marketing expenses relate to marketing and business development activities supporting both existing business areas as well as new and emerging market areas.

#### General and Administrative Expenses
Our general and administrative expenses include salaries, fringe benefits (such as health insurance, retirement plans, vacation and sick days) and other expenses related to executive compensation, accounting, legal, operational overhead expenses, stock-based compensation expenses and amortization of acquired intangible assets. General and administrative expenses also include non-capitalizable accounting and legal expenses associated with preparing for our initial public offering.

As a public company, we will implement additional procedures and processes to address the standards and requirements applicable to public companies. We expect to incur additional annual expenses related to these steps and, among other things, additional directors' and officers' liability insurance, director fees, costs to comply with reporting requirements of the SEC, transfer agent fees, costs for hiring additional accounting, legal and administrative personnel, increased auditing and legal expenses and other related costs.

We anticipate these additional expenses to be a significant increase from our past general and administrative expenditures. See "*Risk Factors — Risks Related to This Offering and Our Securities — We will incur increased costs and become subject to additional regulations and requirements as a result of becoming a public company, which could lower our profits or make it more difficult to run our business.*"

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#### Interest Expense
Interest expense consists primarily of interest expense incurred on borrowings under our debt facilities, excluding related party debt.

#### Interest Expense — Related Party
Interest expense — related party consists primarily of interest expense incurred on borrowings provided by related parties, which include the Great Falls Term Loan with Great Falls Property, LLC and the Line of Credit with our Chief Executive Officer and Chairman.

#### Other Income, Net
Other income, net reflects miscellaneous income and expense unrelated to our core business activities, including gains and losses on the sale of assets.

#### Income Tax Benefit
Prior to the Reorganization, A&A was an S-corporation for taxation purposes, and its income and losses were passed through to its shareholders and reported on their individual tax returns. The EMP division's Hamburg, Germany location is a German entity and is subject to foreign income taxes, which have historically been immaterial to our consolidated results.

#### Year Ended December 31, 2025 Compared to Year Ended December 31, 2024
The following table sets forth, for the years ended December 31, 2025 and 2024, our results of continuing operations, including presentation of the changes in between reporting periods:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **$ Change** | **%<br>Change** |
|  **($ in thousands)** | **2025** | **% of <br>Revenue** | **2024** | **% of <br>Revenue** | **$ Change** | **%<br>Change** |
|  Revenue | $201636 | 100.0% | $190440 | 100.0% | $11196 | 5.9% |
|  Cost of goods sold | 160617 | 79.7% | 150161 | 78.8% | 10456 | 7.0% |
|  Gross profit | 41019 | 20.3% | 40279 | 21.2% | 740 | 1.8% |
|  Operating expenses |  |  |  |  |  |  |
|  General and administrative | 18925 | 9.4% | 16433 | 8.6% | 2492 | 15.2% |
|  Research and development | 3357 | 1.7% | 3702 | 1.9% | (345) | (9.3)% |
|  Sales and marketing | 6663 | 3.3% | 5931 | 3.1% | 732 | 12.3% |
|  Total operating expenses | 28945 | 14.4% | 26066 | 13.6% | 2879 | 11.0% |
|  Operating income | 12074 | 5.9% | 14213 | 7.6% | (2139) | (15.0)% |
|  Other expense, net: |  |  |  |  |  |  |
|  Interest expense | 2613 | 1.3% | 3114 | 1.6% | (501) | (16.1)% |
|  Interest expense – related <br>party | 1797 | 0.9% | 1722 | 0.9% | 75 | 4.4% |
|  Other income, net | (231) | (0.1)% | (206) | (0.1)% | (25) | (12.1)% |
|  Total other expense, net | 4179 | 2.1% | 4630 | 2.4% | (451) | (9.7)% |
|  Income from continuing operations before taxes | 7895 | 3.8% | 9583 | 5.2% | (1688) | (17.6)% |
|  Income tax benefit | (45) | —% | (135) | (0.1)% | 90 | 66.7% |
|  Income from continuing operations | $7940 | 3.8% | $9718 | 5.3% | $(1778) | (18.3)% |

---

#### Revenues
Revenues for the year ended December 31, 2025, increased $11.2 million, or 5.9%, compared to the year ended December 31, 2024. Our EMP division saw an increase of $3.7 million, or 14.1%, stemming from supporting high energy physics programs with national laboratories, Patriot missile program and high-power industrial systems. Our

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CMC division revenues for the year ended December 31, 2025, increased $7.5 million, or 4.6%, compared to the year ended December 31, 2024, driven by increases in key missile programs, such as Javelin and Hellfire, along with increased demand for isothermal forging die production with multiple world leading aerospace manufacturers. This growth occurred despite customer order disruptions in the early part of 2025. Starting in November 2024, the global critical material supply chain experienced multiple disruptions including the PRC's export restrictions on "dual use" materials, tariff disruption in January 2025 and again in April 2025, and the PRC's closure of multiple rare earth mines, all of which resulted in a rapid pricing increase for tungsten on the global market. We believe that these events disrupted customer order patterns, leading to a lower profit sales mix over the first few months of 2025. Our strategic focus on Aerospace, Defense and Government helped mitigate global influences during the latter part of the year ended December 31, 2025, as these customers were less affected compared to other markets.

Our focus on Aerospace, Defense and Government by our CMC and EMP divisions has also improved our backlog, as described below. See "— *Twelve Month Backlog Trend for CMC and EMP Divisions*." As of December 31, 2025, compared to December 31, 2024, our backlog related to our CMC and EMP divisions increased $26.3 million, or 37.6%, with a 76.0% increase in our Aerospace, Defense and Government backlog, largely driven by defense programs such as PrSM, Hellfire, Patriot, Javelin, KC-135 Stratotanker and Next Gen Interceptor, along with multiple commercial aerospace programs and programs with high energy physics research laboratories, including CERN and Fermi. All other end markets' backlog saw a decrease of $4.7 million, or 16.0%, in the comparable period. Approximately $2.1 million of the $4.7 million decrease in backlog was associated with timing of orders with our largest medical customer, which places short duration purchase orders. As of December 31, 2025, their associated orders for January 2026 were not placed until January 9, 2026. The balance of the reduction was driven by a tungsten wire customer which affected an insourcing of production during the early part of 2025.

#### Twelve-Month Backlog Trend for CMC and EMP Divisions
Open order backlog ("Backlog") is measured by confirmed orders and contracts from customers less revenues recognized as of the date measured. The chart below presents our Backlog as of the dates indicated, which represents a key measure of our business growth. Backlog in the chart below excludes Poly Labs.

![](tbarchart_001.jpg)

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#### Revenue by Market
For our CMC and EMP divisions, we track our revenue and customers for our operating divisions across five key markets. We develop sales strategies for each and incentivize our sales resources to profitably grow our business. The following tables demonstrate revenues by markets for the years ended December 31, 2025 and 2024.

#### Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **$ Change** | **% <br>Change** |
|  **($ in thousands)** | **2025** | **% of <br>Revenue** | **2024** | **% of <br>Revenue** | **$ Change** | **% <br>Change** |
|  Aerospace, Defense & Government | $83598 | 41.5% | $69621 | 36.6% | $13977 | 20.1% |
|  Industrial | 66828 | 33.1% | 66111 | 34.7% | 717 | 1.1% |
|  Medical | 37326 | 18.5% | 38239 | 20.1% | (913) | (2.4)% |
|  Semiconductor & Electronics | 8109 | 4.0% | 9392 | 4.9% | (1283) | (13.7)% |
|  Energy | 5775 | 2.9% | 7077 | 3.7% | (1302) | (18.4)% |
|  **Total** | $**201636** | **100%** | **190440** | **100%** | $**11196** | **5.9%** |

---

*<u>*<u>Aerospace, Defense and Government</u>*</u>*

Aerospace, Defense and Government revenues increased as a percentage of our business from 36.6% to 41.5%, or $14.0 million, in the year ended December 31, 2025, as compared to the prior year. Growth was driven by increased sales to larger defense programs including the Hellfire, Javelin, Patriot, KC-135 Stratotanker and AIM-9x Sidewinder. Commercial aerospace revenues grew with increases in isothermal forging die production for one of the world's leading aerospace manufacturers as well as several other aerospace manufacturers.

Most of our products for Aerospace, Defense and Government customers are made to customer specifications. This creates additional value for our customers; however, this market can be affected by international and U.S. federal government spending. We are subject to variations in the DoW budget and spending levels, shifts in funding for research at national laboratories around the world, changes in policy positions or priorities at the U.S Government or international agencies, alteration in the domestic and global political and economic environment, increased instability and the evolving nature of the global and national security threat environment. Changes in these budget and spending levels, policies, or priorities, which are subject to U.S. domestic and foreign geopolitical risks and threats, may impact our defense businesses. We believe that our business is well positioned to supply the products needed to support future defense spending priorities, including those based on the 2025 National Security Strategy document, the 2024 U.S. National Security related budget and the National Defense Authorization Act ("NDAA"). We are also poised to benefit from the related Future Years Defense Program and other resources and programs needed to support the DoW's strategy of shoring up the supply chain and hardening operations against trade risk, boycotts and market manipulation by our adversaries. We expect commercial aerospace to continue to grow, with satellite and commercial aviation both projected to experience substantial growth over the next five years.

*<u>*<u>Industrial</u>*</u>*

Industrial revenues decreased as a percentage of our business from 34.7% to 33.1%, but they increased by $0.7 million, for the year ended December 31, 2025, as compared to the prior year. We saw higher sales of industrial microwave systems for tempering and drying; however, this was offset by a reduction in a wide array of tungsten and molybdenum products including powder, sheet, bar, plate, and ingots used in a wide variety of applications. This market is sensitive to raw material pricing changes and subject to international competition from the PRC.

*<u>*<u>Medical</u>*</u>*

Medical revenues decreased as a percentage of our business from 20.1% to 18.5%, or $0.9 million, for the year ended December 31, 2025, as compared to the prior year. This increase was driven by dual sourcing efforts by one medical wire customer and partially offset by an increase with another customer specializing in radiation resistant parts and shielding. While there can be no assurance of future orders, we are continuing our research and

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development efforts and capital investments into various high-performance wires, including medical wires, as we focus on expanding our revenues in the market. Our products also support medical detection and treatment components for imaging and oncology, isotope production materials, shielding, medical foam and polymer production equipment and x-ray filtering.

*<u>*<u>Semiconductor and Electronics</u>*</u>*

Semiconductor and Electronics revenues decreased as a percentage of our business from 4.9% to 4.0%, or $1.3 million, for the year ended December 31, 2025, as compared to the prior year primarily due to one customer's loss of business from competitive pricing pressure. We do not believe that this change is material, sustaining or indicative of any particular trend. Our products support semiconductor manufacturing equipment and components including extreme ultraviolet lithography components, metal-organic chemical vapor deposition grids, ion implantation components, heat sinks and studs, high reliability diodes and high-density plasma generation components.

*<u>*<u>Energy</u>*</u>*

Energy revenues decreased as a percentage of our business from 3.7% to 2.9%, or $1.3 million, for the year ended December 31, 2025, as compared to the prior year. The reduction in sales is reflective of our products supporting the ongoing operations of existing nuclear energy installations, and energy research, as the need for our products in both of these uses is generally inconsistent. While there can be no assurance that we will succeed in obtaining future orders, we believe the nuclear energy market provides an opportunity for us to generate more consistent revenue streams in the longer term, as additional nuclear reactors are built, given that our products are commonly used in reactor builds. Our products include nuclear fuel boats and containers for nuclear fuel processing components, shielding, plasma generation components, microwave delivery components for fusion and fusion research, hydrogen and green hydrogen, carbon capture and fossil fuels processing.

#### Shipments by Geography and Material and Type
For our CMC and EMP divisions, we track our shipments of products by geography and material type. It is important to note that this tracking is based on physical shipments and is not reconciled back to revenue timing adjustments associated with ASC 606, *Revenue from Contracts with Customers*. These metrics are intended to provide relative versus absolute changes and are therefore expressed as percentages versus dollars. We use these metrics to help navigate the impacts of global supply chain disruptions and capital allocation.

#### Shipments by Geography
Shipments based on major geographic territory as a percent of total shipments for the year ended December 31, 2025, as compared to the prior year period saw an increase in Europe from 9% to 12% driven by increased CMC sales with a Medical Imaging customer. Gross shipments into the Americas did not grow at the same rate as Europe and therefore reduced from 87% of total for the year ended December 31, 2024 to 83% for the year ended December 31, 2025.

![](tpiechart_001.jpg)

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*<u>Shipments by Type of Materials and Services</u>*

Shipments composition based on the type of materials and services as a percent of total shipments for the year ended December 31, 2025, as compared to the prior year, saw an increase in molybdenum from 58% to 60%, driven by increased revenues in the Aerospace, Defense and Government market, as previously discussed in the revenue analysis above. Shipments of tungsten products as a percent of total shipments stayed flat at 16% for the year ended December 31, 2025, compared to the prior year as the increase in tungsten raw material price did not begin to noticeably affect mix of shipments until early 2026. Microwave products saw an increase from 13% to 15%, driven by sales in both the Aerospace, Defense and Government and Industrial system markets. Other materials and services saw a decrease from 13% to 9%, driven by growing demand in the Aerospace, Defense and Government market which shifted our mix toward molybdenum, tungsten and microwave products.

#### Cost of Goods Sold and Gross Profit
Costs of goods sold for the year ended December 31, 2025 increased $10.5 million, or 7.0%, compared to the prior year.

EMP saw an increase in cost of goods sold for the year ended December 31, 2025 of $1.7 million, or 9.1%, associated with an increase of $3.7 million, or 14.1%, in revenue compared to the prior year, resulting in an increase of $2.0 million, or 26.0%, in gross profit between the year ended December 31, 2025 and the prior year. This helped increase the division's gross profit margin from 29.3% for the year ended December 31, 2024, to 32.4% for the year ended December 31, 2025.

CMC cost of goods sold for the year ended December 31, 2025 increased $8.8 million, or 6.7%, associated an increase of $7.5 million, or 4.6%, in revenue compared to the prior year period, resulting in a decrease of $1.2 million, or 3.8%, in gross profit between the year ended December 31, 2025 and the prior year. This increase in costs of goods sold, which was predominately offset by an associated increase in revenue, slightly reduced overall gross profit margin from 19.9% for the year ended December 31, 2024 to 18.3% for the year ended December 31, 2025. This negative influence on gross profit margin was driven by two primary factors. First, during the four months ended April 30, 2025, both the order pattern and mix of products were impacted by the global supply chain disruptions in the tungsten and molybdenum markets, leading to a mix of products with lower value add and lower margin.

Secondarily, on July 15, 2025, as a result of a catastrophic failure of the local utility's transformer, our CMC Euclid, Ohio facility experienced shipping delays from July through September 2025. The Euclid facility returned to normal operations at the beginning of 2026. While we believe this delay in shipments had a material impact on revenue, gross profit, gross profit margin and net income for the second half of 2025, it is not possible to measure with specificity which orders were delayed by this event.

Additional cost of goods sold was incurred due to the utility failure in the amount of $1.0 million. This accounted for 50 basis points of gross profit margin erosion and an erosion of 60 basis points for the CMC division. For the purpose of this comparison, we have reflected these impacts in the tables presented in "*Adjusted Gross Profit*" below.

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#### Adjusted Gross Profit and Adjusted Gross Profit Margin
<u>Adjusted Gross Profit and Adjusted Gross Profit Margin are</u> <u>non</u><u>-GAAP</u> <u>measurements.</u> We define Adjusted Gross Profit as total revenue less adjusted cost of goods sold, which we define as cost of goods sold less costs related to one-time non-recurring, non-inventory related expenses that under U.S. GAAP are categorized as costs of goods sold. Adjusted Gross Profit Margin represents Adjusted Gross Profit as a percentage of total revenue. We include these measures as supplemental disclosures because they are primary metrics used by management to evaluate revenue and cost of sales performance.

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended <br>December 31,** | **For the Year Ended <br>December 31,** |
|  **($ in thousands)** | **2025** | **2024** |
|  Revenue | $201636 | $190440 |
|  Cost of goods sold | 160617 | 150161 |
|  Gross profit | $41019 | $40279 |
|  Gross profit margin | 20.3% | 21.2% |
|  Disruption related costs<sup>(1)</sup> | $1013 | $— |
|  Adjusted cost of goods sold | 159604 | 150161 |
|  **Adjusted gross profit** | $42032 | $40279 |
|  **Adjusted gross profit margin** | 20.8% | 21.2% |

---

____________

(1) In July 2025, our Euclid, Ohio facility experienced a utility failure disrupting operations. The facility fully returned to normal operations at the beginning of 2026.

#### EMP Adjusted Gross Profit and Adjusted Gross Profit Margin

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended <br>December 31,** | **For the Year Ended <br>December 31,** |
|  **($ in thousands)** | **2025** | **2024** |
|  Revenue | $29680 | $26018 |
|  Cost of goods sold | 20070 | 18393 |
|  Gross profit | $9610 | $7625 |
|  Gross profit margin | 32.4% | 29.3% |
|  Adjusted cost of goods sold | $20070 | $18393 |
|  **Adjusted gross profit** | $9610 | $7625 |
|  **Adjusted gross profit margin** | 32.4% | 29.3% |

---

#### CMC Adjusted Gross Profit and Adjusted Gross Profit Margin

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended <br>December 31** | **For the Year Ended <br>December 31** |
|  **($ in thousands)** | **2025** | **2024** |
|  Revenue | $171956 | $164422 |
|  Cost of goods sold | 140547 | 131768 |
|  Gross profit | $31409 | $32654 |
|  Gross profit margin | 18.3% | 19.9% |
|  Disruption related costs | $1013 | $— |
|  Cost of goods sold | 139534 | 131768 |
|  **Adjusted gross profit** | $32422 | $32654 |
|  **Adjusted gross profit margin** | 18.9% | 19.9% |

---

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#### General and Administrative Expenses
General and administrative expenses increased $2.5 million, or 15.2%, for the year ended December 31, 2025, compared to the prior year. The increase was partially a result of approximately $1.5 million related to stock-based compensation incurred in connection with stock-based awards granted during the year ended December 31, 2025. Additionally, the increase was partially attributable to $2.6 million in additional corporate costs related to third party accounting and legal expenses in preparation for our initial public offering and an additional $1.4 million in increased staffing across the organization to support our initial public offering and public company reporting and growth in our EMP division. These increases were partially offset by a $2.3 million reduction in general and administrative expenses from our CMC division driven by insourcing of general and administrative expenses functions, elimination of transition services provided by H.C. Starck post-acquisition and the impact of a one-time reorganization bonus expense during the year ending December 31, 2024.

#### Research and Development
Research and development expenses decreased $0.3 million, or 9.3%, for the year ended December 31, 2025, compared to the prior year. The reduction is a result of lower material and consumable usage in development activities. These expenditures are inconsistent throughout the year and can vary year by year.

#### Sales and Marketing
Sales and marketing expenses increased $0.7 million, or 12.3%, for the year ended December 31, 2025, compared to the prior year. This increase was due to the expansion of our sales team in support of our strategy and growth, in particular increased sales staffing and commissions in support of growth within our EMP division.

#### Interest Expense
A more favorable interest rate environment and the reduction of interest-bearing principal decreased our interest expense for the year ended December 31, 2025 by $0.5 million, or 16.1%, compared to prior year. The reduction was attributable to retirement of interest-bearing debt and a more favorable interest rate environment.

#### Interest Expense — Related Party
Related party interest expense increased $0.1 million, or 4.4%, for the year ended December 31, 2025, compared to the prior year, attributable to increased borrowings under the President Line of Credit (as defined below) and the Poly Labs Note Payable (as defined below), slightly offset by a partial repayment of the Great Falls Term Loan (as defined below) during the year ended December 31, 2025.

#### Other Income, Net
Other income, net increased by less than $0.1 million, or 12.1%, for the year ended December 31, 2025, compared to the prior year, driven by gains recognized related to the change in the fair value of marketable securities, partially offset by the change in the fair value of our interest rate collar derivatives.

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#### Critical Materials and Components Results

#### Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **$ Change** | **% <br>Change** |
|  **($ in thousands)** | **2025** | **% of <br>Revenue** | **2024** | **% of <br>Revenue** | **$ Change** | **% <br>Change** |
|  Revenue | $171956 | 100.0% | $164422 | 100.0% | $7534 | 4.6% |
|  Cost of goods sold | 140547 | 81.7% | 131768 | 80.1% | 8779 | 6.7% |
|  Gross profit | 31409 | 18.3% | 32654 | 19.9% | (1245) | (3.8)% |
|  Operating expenses: |  |  |  |  |  |  |
|  General and administrative | 8718 | 5.1% | 11018 | 6.7% | (2300) | (20.9)% |
|  Research and development | 2110 | 1.2% | 2439 | 1.5% | (329) | (13.5)% |
|  Sales and marketing | 4593 | 2.7% | 4301 | 2.6% | 292 | 6.8% |
|  Total operating expenses | 15421 | 9.0% | 17758 | 10.8% | (2337) | (13.2)% |
|  Operating income | 15988 | 9.3% | 14896 | 9.1% | 1092 | 7.3% |
|  Other expense, net: |  |  |  |  |  |  |
|  Interest expense | 2172 | 1.3% | 2176 | 1.3% | (4) | (0.2)% |
|  Interest expense – related party | 1522 | 0.9% | 1717 | 1.0% | (195) | (11.4)% |
|  Other (income) expense, net | (19) | —% | 70 | —% | (89) | (127.1)% |
|  Total other expense, net | 3675 | 2.2% | 3963 | 2.3% | (288) | (7.3)% |
|  Income from continuing <br>operations before taxes | 12313 | 7.1% | 10933 | 6.8% | 1380 | 12.6% |
|  Income tax benefit |  | —% |  | —% |  | —% |
|  Income from continuing <br>operations | $12313 | 7.1% | $10933 | 6.8% | $1380 | 12.6% |

---

#### Revenues
Revenues for the year ended December 31, 2025 increased $7.5 million, or 4.6%, compared to the prior year, driven by increases in key missile programs, Javelin and Hellfire, along with increased demand for isothermal forging die production with multiple world leading aerospace manufacturers. Tariff-related pricing disruptions caused delays in higher value sales during the first four months of 2025, suppressing both revenue and gross margin during that period. We saw revenue and margin recovery over the balance of the year, with a higher mix of revenue from the Aerospace, Defense and Government market across the aforementioned programs, as these customers were less affected compared to other markets.

#### Cost of Goods Sold
CMC cost of goods sold for the year ended December 31, 2025 increased $8.8 million, or 6.7%, compared to the prior year, driven by the aforementioned tariff disruptions, leading to a lower value mix of product sales in the first four months of the year and a $1.0 million increase in costs associated with the utility failure at our Euclid, Ohio facility. Operations recovered fully at the beginning of 2026.

#### General and Administrative Expenses
CMC general and administrative expenses for the year ended December 31, 2025 decreased $2.3 million, or 20.9%, compared to the prior year. The decrease was primarily attributable to the insourcing of general and administrative functions, elimination of transition services that had been provided by H.C. Starck in 2024 following our acquisition of certain locations of their operations in 2023 and the impact of a one-time reorganization bonus expense during the year ending December 31, 2024.

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#### Research and Development
CMC research and development expenses for the year ended December 31, 2025 decreased $0.3 million, or 13.5%, compared to the prior year period. The decrease was primarily due to timing and volumes of material used in development activities. Modest fluctuations in these expenses are normal for this division, and we do not expect CMC research and development expenses to continue to decline as a general matter in the future.

#### Sales and Marketing
CMC selling and marketing expenses for the year ended December 31, 2025 increased $0.3 million, or 6.8%, compared to the prior year. The increase was driven by increased sales staffing and commissions in support of growth, contributing to the 4.6% revenue growth at the CMC division.

#### Interest Expense
CMC interest expense for the year ended December 31, 2025 did not meaningfully change compared to the prior year as the impact of increased borrowings was offset by favorable changes in the interest rate environment.

#### Interest Expense — Related Party
CMC related party interest expense for the year ended December 31, 2025 decreased $0.2 million, or 11.4%, compared to the prior year, due to the repayment of certain indebtedness during 2025.

#### Other (Income) Expense, Net
CMC other (income) expense, net for the year ended December 31, 2025 did not meaningfully change compared to the prior year.

#### Engineered Microwave Products Results

#### Year Ended December 31, 2025 Compared to Year Ended December 31, 2024

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **$ Change** | **% <br>Change** |
|  **($ in thousands)** | **2025** | **% of <br>Revenue** | **2024** | **% of <br>Revenue** | **$ Change** | **% <br>Change** |
|  Revenue | $29680 | 100.0% | $26018 | 100.0% | $3662 | 14.1% |
|  Cost of goods sold | 20070 | 67.6% | 18393 | 70.7% | 1677 | 9.1% |
|  Gross profit | 9610 | 32.4% | 7625 | 29.3% | 1985 | 26.0% |
|  Operating expenses: |  |  |  |  |  |  |
|  General and administrative | 5038 | 17.0% | 4453 | 17.1% | 585 | 13.1% |
|  Research and development | 1247 | 4.2% | 1263 | 4.9% | (16) | (1.3)% |
|  Sales and marketing | 1494 | 5.0% | 1190 | 4.6% | 304 | 25.5% |
|  Total operating expenses | 7779 | 26.2% | 6906 | 26.6% | 873 | 12.6% |
|  Operating income | 1831 | 6.2% | 719 | 2.7% | 1112 | 154.7% |
|  Other expense, net: |  |  |  |  |  |  |
|  Interest expense | 371 | 1.3% | 527 | 2.0% | (156) | (29.6)% |
|  Interest expense – related party | 234 | 0.8% | 216 | 0.8% | 18 | 8.3% |
|  Other income, net | (92) | (0.3)% | (268) | (1.0)% | (176) | (65.7)% |
|  Total other expense, net | 513 | 1.8% | 475 | 1.8% | 38 | 8.0% |
|  Income from continuing operations before taxes | 1318 | 4.4% | 244 | 0.9% | 1074 | 440.2% |
|  Income tax benefit | (45) | (0.2)% | (135) | (0.5)% | (90) | (66.7)% |
|  Income from continuing operations | $1363 | 4.6% | $379 | 1.4% | $984 | 259.6% |

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#### Revenue
EMP revenues for the year ended December 31, 2025 increased $3.7 million, or 14.1%, compared to the prior year, driven primarily by increased revenues supporting high energy physics programs with national laboratories, the Patriot missile program and High-Power Microwave systems.

#### Cost of Goods Sold
EMP cost of goods sold for the year ended December 31, 2025 increased $1.7 million, or 9.1%, compared to the prior year, primarily attributable to sales growth resulting in an increase of $2.0 million in gross profit. This helped increase the division's gross profit margin from 29.3% for the year ended December 31, 2024, to 32.4% for the year ended December 31, 2025.

#### General and Administrative Expenses
EMP general and administrative expenses for the year ended December 31, 2025 increased $0.6 million, or 13.1%, compared to the year ended December 31, 2024, to support of the division's 14.1% growth in sales.

#### Research and Development
EMP research and development expenses for the year ended December 31, 2025 did not meaningfully change compared to the prior year.

#### Sales and Marketing
EMP sales and marketing expenses for the year ended December 31, 2025 increased $0.3 million, or 25.5%, compared to the prior year, driven primarily by increased sales staffing in support of current and future growth and commissions in support of the division's strong 14.1% sales growth between the two periods.

#### Interest Expense
EMP interest expense for the year ended December 31, 2025 decreased $0.2 million, or 29.6%, compared to the prior year due to the repayment of certain indebtedness during 2025.

#### Interest Expense — Related Party
EMP related party interest expense for the year ended December 31, 2025 did not meaningfully change compared to the prior year.

#### Other Income, Net
EMP other income, net did not meaningfully change compared to the prior year.

#### Corporate and Other

#### Year Ended December 31, 2025 Compared to Year Ended December 31, 2024
Activity related to Corporate and Other for the years ended December 31, 2025 and 2024 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** | **$ Change** | **% <br>Change** |
|  **($ in thousands)** | **2025** | **2024** | **$ Change** | **% <br>Change** |
|  Operating expenses | $5745 | $1402 | $4343 | 309.8% |

---

Operating expenses for the year ended December 31, 2025 increased $4.3 million, or 309.8%, compared to the prior year, primarily attributable to additional expenses associated with preparation for our initial public offering, including additional staffing and professional advisory fees, including legal and accounting support, and stock-based compensation related to grants in anticipation of our initial public offering.

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#### Discontinued Operations
As noted above (see "*— Recent Divestitures*"), Poly Labs is a manufacturer of polyurethane molded components. In response to an inquiry from the City of Lewiston, Maine and in an effort to rescue the business from closure during the COVID outbreak, A&A acquired the Poly Labs assets in on November 2, 2020 for $2.9 million. After the acquisition, A&A rescued the operations, saved the attendant jobs and fulfilled preexisting customer obligations and last time buys. On May 30, 2024, the business engaged in a sale leaseback arrangement for the majority of its real property (included among the assets acquired as part of the acquisition in 2020) for $6.1 million.

In August 2024, A&A engaged a broker to begin actively marketing the business for sale recognizing the lack of strategic fit with the balance of the portfolio companies which currently reside within our CMC and EMP divisions, but no sale of the remaining Poly Labs business was consummated. Subsequently, A&A distributed its interest in Poly Labs to its shareholders on October 1, 2025 and recorded activities of Poly Labs as discontinued operations. Accordingly, the results of Poly Labs in current and prior periods have been classified as discontinued operations in our consolidated financial statements and excluded from our results of continuing operations.

Activity related to Poly Labs for the years ended December 31, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** | **$ Change** | **% <br>Change** |
|  **($ in thousands)** | **2025<sup>(1)</sup>** | **2024** | **$ Change** | **% <br>Change** |
|  Revenue | $4042 | $11295 | $(7253) | (64.2)% |
|  Cost of goods sold | 5196 | 7468 | (2272) | (30.4)% |
|  Gross profit | (1154) | 3827 | (4981) | (130.2)% |
|  Operating expenses | 1288 | 1608 | (320) | (19.9)% |
|  Operating income | (2442) | 2219 | (4661) | (210.0)% |
|  Other income, net | (44) | (3495) | (3451) | (98.7)% |
|  (Loss) income from discontinued operations | $(2398) | $5714 | $(8112) | (142.0)% |

---

____________

(1) Reflects results of operations of Poly Labs through October 1, 2025.

Information for the year ended December 31, 2025 includes results only through October 1, 2025, the date on which the previously mentioned distribution of ownership of Poly Labs was made to the shareholders of A&A. As a result, the table above in effect compares nine months of financial results for the period ended September 30, 2025 to twelve months for the year ended December 31, 2024. Included in the results for the year ended December 31, 2024 is the gain on sale of real estate of $3.7 million related to a sale lease back arrangement of property owned by Poly Labs.

#### Key Performance Indicators and Non-GAAP Financial Measures
We measure our business, monitor results of operations and ensure proper allocation of capital using the following key performance indicators and non-GAAP financial measures: (i) Revenue, (ii) Backlog, (iii) Gross Profit, (iv) Gross Profit Margin, (v) Adjusted Gross Profit, (vi) Adjusted Gross Profit Margin (vii) Adjusted EBITDA and (viii) Adjusted EBITDA Margin. We believe the non-GAAP financial measures presented in this prospectus will help investors understand our financial condition and operating results and assess our future prospects. We believe these non-GAAP financial measures, each of which are discussed in greater detail below, are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. We may use non-GAAP financial metrics in certain management compensation plans, debt covenants, internal budgetary decision making, and other resource allocation decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.

Our reconciliation of Gross Profit and Gross Profit Margin to Adjusted Gross Profit and Adjusted Gross Profit Margin are included elsewhere in this prospectus. See "*— Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 — Adjusted Gross Profit*" above.

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The following table summarizes our reconciliation of income (loss) from continuing operations to Adjusted EBITDA and our Adjusted EBITDA Margin for the year ended December 31, 2025, for our divisions, with discontinued operations excluded from the results of continuing operations (in thousands, except percentages):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended <br>December 31, 2025** | **For the Year Ended <br>December 31, 2025** | **For the Year Ended <br>December 31, 2025** | **For the Year Ended <br>December 31, 2025** |
|  **($ in thousands, except %)** | **CMC** | **EMP** | **Corporate & <br>other** | **Total** |
|  **Revenue** | $171956 | $29680 | $— | $**201636** |
|  Income (loss) from continuing operations | $12313 | $1363 | $(5736) | $**7940** |
|  Income (loss) from continuing operations % | 7.2% | 4.6% | n/m | **3.9%** |
|  Adjustments to income (loss) from continuing operations: |  |  |  |  |
|  Income tax benefit | $— | $(45) | $— | $**(45)** |
|  Interest expense<sup>(1)</sup> | 3694 | 605 | 111 | **4410** |
|  Depreciation and amortization | 4926 | 1122 |  | **6048** |
|  Acquisition and transaction costs<sup>(2)</sup> | 214 | 226 |  | **440** |
|  Corporate costs associated with the offering<sup>(3)</sup> |  |  | 2580 | **2580** |
|  Stock-based compensation<sup>(4)</sup> | 1149 |  | 302 | **1451** |
|  Other<sup>(5)</sup> | 1013 | —  | —  | **1013** |
|  **Adjusted EBITDA** | $23309 | $3271 | $(2743) | $**23837** |
|  **Adjusted EBITDA Margin** | 13.6% | 11.0% | n/m | **11.8%** |

---

____________

n/m = not meaningful

(1) Interest expense includes both third-party interest expense and related party interest expense.

(2) The adjustment for acquisition and transaction costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, and dispositions, in each case, regardless of whether consummated.

(3) Corporate costs associated with the offering include third-party expenses related to enhancing our accounting controls and procedures, incremental audit costs, recruitment of executive team and legal expenses.

(4) Stock-based compensation includes expenses associated with restricted stock grants made in support of our initial public offering and the Reorganization.

(5) Other includes non-recurring costs associated with a utility failure at our CMC facility in Euclid, Ohio.

The following table summarizes our reconciliation of income (loss) from continuing operations to Adjusted EBITDA and our Adjusted EBITDA Margin for the year ended December 31, 2024 for our divisions, with discontinued operations excluded from the results of continuing operations (in thousands, except percentages):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  **($ in thousands)** | **CMC** | **EMP** | **Corp** | **Total** |
|  **Revenue** | $164422 | $26018 | $— | $**190440** |
|  Income (loss) from continuing operations | $10933 | $379 | $(1594) | $**9718** |
|  Income (loss) from continuing operations % | 6.6% | 1.5% | n/m | **5.1%** |
|  Adjustments to income (loss) from continuing operations: |  |  |  |  |
|  Income tax benefit | $— | $(135) | $— | $**(135)** |
|  Interest expense<sup>(1)</sup> | 3893 | 743 | 200 | **4836** |
|  Depreciation and amortization | 4139 | 1224 |  | **5363** |
|  Acquisition and transaction costs<sup>(2)</sup> | 361 | 120 |  | **481** |
|  Other<sup>(3)</sup> | 987 |  |  | **987** |
|  **Adjusted EBITDA** | $20313 | $2331 | $(1394) | $**21250** |
|  **Adjusted EBITDA Margin** | 12.4% | 9.0% | n/m | **11.2%** |

---

____________

n/m = not meaningful

(1) Interest expense includes both third-party interest expense and related party interest expense.

(2) The adjustment for acquisition and transaction costs is to remove charges incurred in connection with any transaction, including mergers, acquisitions, refinancing, amendment or modification to indebtedness, and dispositions, in each case, regardless of whether consummated.

(3) Other includes restructuring and severance costs associated with a reorganization within our CMC division.

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We recognize that these non-GAAP financial measures have limitations and that other companies may calculate non-GAAP financial measures differently and may use their non-GAAP financial measures under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to address these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Investors should review the reconciliations below and should not rely on any single financial measure to evaluate our business.

We define these non-GAAP financial measures as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *<u>Adjusted Gross Profit.</u>* We define Adjusted Gross Profit as total revenue less adjusted cost of goods sold, which we define as cost of goods sold less costs related to one-time non-recurring, non-inventory related expenses that under U.S. GAAP are categorized as costs of goods sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• <u>Adjusted Gross Profit Margin.</u>* Adjusted Gross Profit Margin is calculated by dividing Adjusted Gross Profit by total revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• <u>Adjusted EBITDA.</u>* We define Adjusted EBITDA as our net income plus interest expense, income taxes, depreciation and amortization, and, as applicable for each period, stock-based compensation expense and non-cash gains and losses on the sale of assets. Adjusted EBITDA also excludes certain non-recurring costs such as the costs associated with this offering, certain acquisition and transaction costs, severance and restructuring costs, and other non-recurring costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *<u>Adjusted EBITDA Margin.</u>* Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenue.

Although we use Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin as measures to assess the performance of our business and for the other purposes set forth above, the use of non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with U.S. GAAP. Some of these limitations are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjustments to Gross Profit and Gross Profit Margin, while non-recurring, do often require cash and if material in nature, could materially negatively affect cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin do not reflect the significant interest expense, or the cash requirements, necessary to service interest payments on our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and the cash requirements for such replacements are not reflected in Adjusted EBITDA and Adjusted EBITDA Margin;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin exclude the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of Adjusted EBITDA and Adjusted EBITDA Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA and Adjusted EBITDA Margin do not include the payment of taxes, which is a necessary element of our operations.

Because of these limitations, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of cash available to us to invest in the growth of our business. Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin are not measurements of financial performance under U.S. GAAP, and they should not be considered as alternatives to net income, income from continuing operations or cash flow from continuing operations determined in accordance with U.S. GAAP.

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#### Critical Accounting Policies and Estimates
Our consolidated financial statements and the related notes included elsewhere in this prospectus are prepared in accordance with GAAP. The preparation of consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and various other assumptions we believe to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates under different assumptions or circumstances. While our significant accounting policies are described in more detail in the notes to our consolidated financial statements appearing elsewhere in this prospectus, we believe the following critical accounting policies require the use of significant estimates and judgments in the preparation of our consolidated financial statements.

#### Revenue Recognition
We recognize revenue in a manner which depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which we expect to be entitled in exchange for those goods or services.

Most of our revenue is recognized at the point in time control transfers to our customer based on predetermined shipping terms. Revenue is recognized over time under certain contracts for highly customized products that have no alternative use and in which the contract specifies we have enforceable right to payment for our costs, plus a reasonable margin.

For products recognized over time, the transfer of control is measured using the input method, which measures progress toward completion as costs are incurred and estimates of costs to complete such contracts. Significant judgment is used to estimate total costs at completion. Unforeseen events and circumstances can alter the estimate of the costs and potential benefits associated with a particular contract. Changes in job performance, job conditions, estimated profitability, and final contract settlements may result in revisions to costs and income. We recognize changes in contract estimates on a cumulative "catch-up" basis in the period in which the changes are identified. Such changes in contract estimates can result in the recognition of revenue in the current period for performance obligations which were satisfied or partially satisfied in a prior period. Changes in contract estimates may also result in the reversal of previously recognized revenue if the current estimate differs from the previous estimate. Losses on contracts are fully recognized in the period in which the losses become determinable.

#### Inventory Valuation
Inventory includes material, direct labor and related manufacturing overhead, and are stated at the lower of cost, determined on a first-in, first-out basis and average cost, or net realizable value determined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.

We adjust the carrying value of inventory for the estimated difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and selling price. We also analyze our inventory levels on each reporting date for excess and obsolete inventory. Our analysis requires judgment and is based on factors including, but not limited to, recent historical activity, anticipated or forecasted demand for our products, competitiveness of product offerings, and market conditions. If estimates of customer demand diminish further or market conditions become less favorable than we project, we may need to make additional inventory adjustments, subject to judgment and estimation.

#### Stock-Based Compensation Expense
We record stock-based compensation expense for stock-based awards issued to our employees based on our estimate of the fair value of the stock-based awards at the grant date. We estimate the fair value of our stock-based awards based on the fair value of the equity underlying the award, which includes common stock of The Elmet Group, Co. and membership units in a consolidated subsidiary of Anania & Associates (collectively, referred to as "Equity"). The Elmet Group Co. stock-based awards, which are issued to certain employees of Anania & Associates, are referred to as "Related-Party Stock-Based Awards" within our audited consolidated financial statements as of and for the year ended December 31, 2025. See *"Note 2 — Summary of Significant Accounting Policies — Stock*-Based

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*Compensation — Related*-Party *Stock*-Based *Awards"* within our audited consolidated financial statements as of and for the year ended December 31, 2025, included elsewhere in this prospectus. See *"Business — Corporate History and Reorganization"* for more information on the Reorganization.

For stock-based awards that include a service-based vesting condition, we recognize the expense ratably over the requisite service period. For stock-based awards that include a performance-based vesting condition, we recognize the expense when it is probable that the performance-based vesting condition will be satisfied and the award has satisfied other vesting conditions, if any. Forfeitures are recognized as they are incurred. Refer to *"— Critical Accounting Policies and Significant Judgements and Estimates — Equity Valuations"* below for additional detail on the valuation methodology to determine the fair value of our equity.

#### Equity Valuations
To date, there has been no public market for our equity. As such, the estimated fair value of our equity has been determined at each grant date by our board of directors, with input from management, based on the information known to us on the grant date and upon a review of any recent events and their potential impact on the estimated per share fair value of our Equity. As part of these fair value determinations, our board of directors obtained and considered valuation reports prepared by an independent third-party valuation specialist in accordance with the guidance outlined in the American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. The value of our equity is estimated using income and market valuation approaches. The assumptions underlying these valuations include projected future revenue and cash flows, discount rates, market multiples, selection of comparable companies, the lack of marketability of our equity and probability of possible future events and represent our best estimates at the time they were made, which involves inherent uncertainty and the application of judgment. Changes to the key assumptions and estimates used in the valuations could result in materially different fair values of our equity at each valuation date.

Once a public trading market for our equity has been established in connection with the closing of our initial public offering, it will no longer be necessary for our board of directors to estimate the fair value of our equity in connection with the accounting for stock-based awards we may grant, as the fair value of our Equity will be determined based on the closing price of our equity as reported on the date of grant.

#### Goodwill
Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to assets and liabilities assumed in a business combination.

We generally perform our annual assessment of goodwill on October 1<sup>st</sup> of each fiscal year and whenever events or changes in circumstances or a triggering event indicate that the carrying amount may not be recoverable. During the year ended December 31, 2025, we voluntarily changed the assessment date from December 31<sup>st</sup> to October 1<sup>st</sup> to better align with the Company's internal forecasting and budgeting cycle. An entity is permitted to first assess qualitatively whether it is necessary to perform a goodwill impairment test. Significant judgment is required to determine if an indication of impairment has taken place. Factors to be considered include the following: adverse change in operating results, decline in strategic business plans, significantly lower future cash flows, and sustainable declines in market data. The quantitative impairment test is required only if the entity concludes that it is more likely than not that a reporting unit's fair value is less than its carrying amount. As quoted market prices are not available for our reporting units, we determine the fair value of each reporting unit using a discounted cash flow method (the income approach). The income approach includes estimates and assumptions about revenue growth rates, operating margins and terminal growth rates, discounted by an estimated weighted-average cost of capital derived from other publicly traded companies that are similar but not identical from an operational and economic standpoint. These estimates are based on historical experiences, our projects of future operating activity and our weighted-average cost of capital. A significant change in events, circumstances or any of these assumptions could adversely affect these estimates, which could result in an impairment.

We performed our annual assessment on October 1, 2025 and December 31, 2024, for the years ended December 31, 2025 and 2024, respectively, and determined that the fair value of our one reporting unit with goodwill substantially exceeded its carrying value; therefore, there was no impairment to goodwill.

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#### Recent Accounting Pronouncements

#### Recently Adopted Accounting Pronouncements
In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. The ASU expands public entities' segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to a company's chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment's profit or loss and assets. This pronouncement is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The guidance is required to be applied on a retrospective basis, with all such required disclosures to be made with regard to all fiscal years presented in the financial statements. Early adoption is permitted. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. We adopted this guidance effective for our fiscal year ended December 31, 2024. The adoption of ASU 2023-07 resulted in the inclusion of disclosures in Note 17 to our consolidated financial statements included elsewhere in this prospectus.

In December 2023, the FASB issued ASU 2023-09, *Improvements to Income Tax Disclosures*. This new guidance requires additional disclosure with respect to specific categories in the rate reconciliation as well as require additional information for reconciling items that meet a certain quantitative threshold. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The adoption of this standard during the year ended December 31, 2025 did not impact our consolidated financial statements included elsewhere in this prospectus.

#### Recently Issued Accounting Pronouncements — Yet to be Adopted
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* ("ASU 2024-03"), which requires disaggregated disclosure of income statement expenses. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted. We are evaluating the impact of this standard on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, *Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities*, which provides guidance on the recognition, measurement, presentation, and disclosure of government grants received by for-profit entities. The ASU defines government grants as transfers of monetary or nonmonetary assets from a government, excluding exchange transactions, and clarifies scope exclusions such as tax credits, below-market loans, and nonfinancial asset transactions. Under the guidance, grants related to asset acquisition are generally recognized as a reduction of the asset's cost, while grants related to income are recognized in earnings once conditions are met, with appropriate classification in the statements of cash flows. Entities are required to disclose the nature of grants, significant terms and conditions, accounting policies adopted, and amounts recognized in the financial statements. ASU 2025-10 is effective for annual periods beginning after December 15, 2028, including interim periods, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2025-10 the consolidated financial statements.

#### Liquidity and Capital Resources
As of December 31, 2025, we had $1.8 million in cash, $0.2 million in marketable securities, and approximately $22.1 million in available debt facility capacity. As of December 31, 2024, our continuing operations had $3.6 million in cash, $0.1 million in marketable securities, and $26.1 million in available debt capacity.

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Our principal historical liquidity requirements have been for organic growth, acquisitions, capital expenditures, servicing indebtedness, and working capital needs. We do not expect there to be substantial changes in our future capital requirements. We anticipate over the next 12 months we will meet our liquidity needs, including debt servicing, through cash generated, available cash balances, and borrowings from our line of credit facilities discussed below. We fund our investing activities primarily from cash provided by our operating and financing activities. As we continue to expand our business, including any acquisitions we may make, we may in the future require additional working capital for increased costs.

#### Indebtedness
The following table summarizes our indebtedness, excluding forgivable loans, as of December 31, 2025:

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| | |
|:---|:---|
|  **($ in thousands)** | **December 31, <br>2025** |
|  **Line of Credit Facilities:** |  |
| &nbsp;&nbsp;&nbsp; Wells Fargo LOC | $20467 |
| &nbsp;&nbsp;&nbsp; Domestic March 2020 Line of Credit | 3297 |
| &nbsp;&nbsp;&nbsp; President Line of Credit (Related Party) | 1771 |
| &nbsp;&nbsp;&nbsp; Auburn Savings Loan | 766 |
| &nbsp;&nbsp;&nbsp; Foreign March 2020 Line of Credit | 166 |
| &nbsp;&nbsp;&nbsp; Auburn Savings LOC | 148 |
| &nbsp;&nbsp;&nbsp; Symphony Line of Credit | 45 |
|  **Term Loans:** |  |
| &nbsp;&nbsp;&nbsp; Great Falls Term Loan (Related Party) | 15000 |
| &nbsp;&nbsp;&nbsp; Wells Fargo Term Loan | 7684 |
| &nbsp;&nbsp;&nbsp; First BankProv Term Note | 1688 |
| &nbsp;&nbsp;&nbsp; United Federal Credit Union Term Note | 1144 |
| &nbsp;&nbsp;&nbsp; Poly Labs Note Payable (Due to Poly Labs) | 548 |
| &nbsp;&nbsp;&nbsp; October 2023 Term Loans | 500 |
| &nbsp;&nbsp;&nbsp; Other Equipment Loans | 188 |
| &nbsp;&nbsp;&nbsp; Symphony Term Loans | 41 |
|  Total indebtedness | $53453 |

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The following provides additional details on our material indebtedness, excluding the Other Equipment Loans, Symphony Line of Credit and Symphony Term Loans (see Note 12 — *Debt* within the notes to our consolidated financial statements included elsewhere in this prospectus for details on those loans), as of December 31, 2025:

*Line of Credit Facilities*

<u><u>Wells Fargo LOC</u></u>

On November 6, 2023, Elmet Tech entered into a $40.0 million revolving credit facility with Wells Fargo Bank (the "Wells Fargo LOC") pursuant to an Amended and Restated Credit Agreement (the "Wells Fargo Credit Agreement"). The Wells Fargo LOC accrues interest monthly based on a floating rate, as defined by the lender, and is subject to periodic adjustments based on prevailing market conditions.

As of December 31, 2025 and 2024, outstanding borrowings under the Wells Fargo LOC were approximately $20.5 million and $11.5 million, respectively. As of December 31, 2025 and 2024, the applicable interest rates were 5.92% and 6.57%, respectively, on $10.0 million outstanding as of each period and 7.75% and 8.50% respectively, on the remaining outstanding amount of approximately $10.5 million and $1.5 million, respectively. As of December 31, 2025, availability to borrow under the Wells Fargo LOC was approximately $19.4 million. The Wells Fargo LOC matures on the earlier of (i) November 6, 2028, or (ii) the maturity date of the Great Falls Term Loan (as defined below).

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Elmet Tech is required to pay customary fees associated with the credit facility, including commitment and administrative fees. In addition, the Wells Fargo LOC contains customary conditions on Elmet Tech's borrowing, including events of default and covenants. Covenants include restrictions on Elmet Tech's ability to incur indebtedness, grant liens, dispose of assets, make investments, bail or consign inventory or engage in transactions with affiliates (each such restriction subject to certain exceptions), and require us to maintain a consolidated Fixed Charge Coverage Ratio (as such term is defined in the Wells Fargo Credit Agreement) of not less than 1.05 to 1.00, as measured on a month-end basis. The obligations under the Wells Fargo LOC are secured by liens on substantially all of the assets of Elmet Tech, Elmet Coldwater and Elmet Euclid. We were in compliance with all covenants as of the date of this prospectus.

<u><u>Domestic March 2020 Line of Credit</u></u>

On March 2, 2020, Microwave Techniques entered into a $3.0 million demand line of credit with BankProv (formerly known as The Provident Bank and now known as Needham Bank after its merger in November 2025) (the "Domestic March 2020 Line of Credit") to finance domestic receivables and inventory. Amounts under the Domestic March 2020 Line of Credit are secured by certain assets of Microwave Techniques and are guaranteed by Microwave Techniques. The Domestic March 2020 Line of Credit accrues interest monthly based on a floating rate equal to the prime rate as reported in the Wall Street Journal, which was equal to 7.0% and 7.5% as of December 31, 2025 and 2024, respectively.

The Domestic March 2020 Line of Credit was originally set to expire in February 2025. On January 30, 2025, Microwave Techniques entered into an amendment to the Domestic March 2020 Line of Credit, increasing the Domestic March 2020 Line of Credit from $3.0 million to $4.0 million. With the execution of the amendment, the maturity date was extended from February 2025 to April 2, 2026. All other key terms of the original Domestic March 2020 Line of Credit agreement remained consistent.

As of December 31, 2025 and 2024, the outstanding balance under the Domestic March 2020 Line of Credit was $3.3 million and $3.0 million, respectively. As of December 31, 2025, the availability to borrow under the Domestic March 2020 Line of Credit was approximately $0.7 million.

Microwave Techniques is required to pay customary fees associated with the credit facility, including commitment and administrative fees. The Domestic March 2020 Line of Credit contains customary conditions, events of default and financial covenants, including leverage ratio requirements, which we were in compliance with as of the date of this prospectus.

<u><u>President Line of Credit</u></u>

On January 1, 2023, A&A entered into a $2.0 million line of credit note with Peter V. Anania, our Chief Executive Officer and Chairman and President of A&A (the "President Line of Credit"). The President Line of Credit was increased to $2.5 million on October 1, 2025. The President Line of Credit accrues interest monthly on the outstanding balance based on a stated interest rate of 9.00%.

As of December 31, 2025 and 2024, the outstanding principal balance of the President Line of Credit was approximately $1.8 million and $1.2 million, respectively. As of December 31, 2025, the availability to borrow under the President Line of Credit was approximately $0.7 million. The President Line of Credit is subject to customary conditions, including events of default, which we were in compliance with as of the date of this prospectus.

The previously amended maturity date of the President Line of Credit was January 1, 2026. On January 1, 2026, A&A amended the President Line of Credit to extend the maturity date from January 1, 2026 to the earlier of: (i) the closing of an initial public offering, or (ii) July 1, 2026. In connection with the amendment, A&A agreed to pay an extension fee of $0.2 million at maturity in addition to the outstanding principal and accrued, unpaid interest.

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<u><u>Auburn Savings Loan</u></u>

On December 26, 2024, Elmet Tech entered into a $0.8 million construction loan with Auburn Savings Bank, FSB ("Auburn Savings Bank") pursuant to a Commercial Note Agreement (the "Auburn Savings Loan"). Once drawn, the Auburn Savings Loan accrues interest monthly at an initial rate of 7.00% for the first five years, which will be adjusted every fifth anniversary of January 25, 2026, to the Federal Home Loan Bank's 5/20 amortizing advance rate plus 3.00%. The maturity date of the Auburn Savings Loan is December 25, 2046.

As of December 31, 2025 and 2024, there was $0.8 million and $0.0 million of outstanding borrowings, respectively, under the Auburn Savings Loan. As of December 31, 2025, the amount available to borrow under the Auburn Savings Loan was $0.0 million.

The obligations under the Auburn Savings Loan are secured by a lien on certain real estate assets and guaranteed by Poly Labs Solar LLC. In addition, the Auburn Savings Loan is subject to customary conditions, including events of default, of which we were in compliance as of the date of this prospectus. The Auburn Savings Loan will convert to a term loan at the completion of the related construction.

<u>Foreign March 2020 Line of Credit</u>

On March 2, 2020, Microwave Techniques entered into a $1.0 million demand line of credit with BankProv (the "Foreign March 2020 Line of Credit") to finance foreign receivables. Amounts under the Foreign March 2020 Line of Credit are secured by certain assets of a consolidated subsidiary and are guaranteed by a consolidated subsidiary. The Foreign March 2020 Line of Credit accrues interest monthly based on a floating rate equal to the prime rate as reported in the Wall Street Journal, which was 7.00% and 7.50% as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, the outstanding balance under the Foreign March 2020 Line of Credit was $0.2 million and $0.1 million, respectively. As of December 31, 2025, the availability to borrow under the Foreign March 2020 Line of Credit was approximately $0.8 million.

The borrowings owed under the Foreign March 2020 Line of Credit were set to expire in February 2025; however, the maturity date was extended to April 2, 2026 in connection with the amendment to the Foreign March 2020 Line of Credit entered into on January 30, 2026.

Microwave Techniques is required to pay customary fees associated with the credit facility, including commitment and administrative fees. The Foreign March 2020 Line of Credit contains customary conditions on events of default and financial covenants, including leverage ratio requirements, which we were in compliance with as of the date of this prospectus.

<u><u>Auburn Savings LOC</u></u>

On April 14, 2025, Elmet Tech entered into a $0.6 million line of credit facility with Auburn Savings Bank pursuant to a Demand Commercial Line of Credit Agreement (the "Auburn Savings LOC"). The Auburn Savings LOC accrued interest monthly at the prime rate as published by The Wall Street Journal plus 0.50%.

As of December 31, 2025 and 2024, the outstanding borrowings under the Auburn Savings LOC were $0.1 million and $0.0 million, respectively. As of December 31, 2025, the availability to borrow under the Auburn Savings LOC was approximately $0.5 million. The Auburn Savings LOC does not have a maturity date but is due on demand at Auburn Savings Bank's discretion or upon an event of default as defined in the Auburn Savings LOC.

The obligations under the Auburn Savings LOC are secured by a lien on certain real estate assets and guaranteed by Poly Labs Solar LLC. In addition, the Auburn Savings LOC is subject to customary conditions, including events of default, which we were in compliance with as of the date of this prospectus.

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*Term Loans*

<u><u>Great Falls Term Loan</u></u>

On November 6, 2023, Elmet Tech entered into a secured $20.0 million term note with Great Falls Property, LLC (the "Great Falls Term Loan"), which is owned by George Schott, one of our principal stockholders. The Great Falls Term Loan accrues interest monthly based on a floating rate equal to the prime rate as reported by the Wall Street Journal plus a spread of 1.00%, with a floor of 9.50%. As of December 31, 2025 and 2024, approximately $15.0 million and $16.5 million, respectively, was outstanding under the Great Falls Term Loan. The maturity date of the Great Falls Term Loan is November 6, 2028; however, we intend to repay the Great Falls Term Loan with proceeds from this offering. See "*Use of Proceeds*."

The Great Falls Term Loan is secured by the real estate associated with our Coldwater and Euclid facilities, held by Elmet Coldwater and Elmet Euclid, respectively (see "*Business — Facilities*"), and contains conditions on events of default resulting in acceleration of payment in full of the principal and interest outstanding at the time of the event of default, which we were in compliance with as of the date of this prospectus.

<u><u>Wells Fargo Term Loan</u></u>

On November 6, 2023, Elmet Tech entered into a secured $8.7 million term note with Wells Fargo Bank pursuant to an Amended and Restated Credit Agreement (the "Wells Fargo Term Note"). The Wells Fargo Term Note accrues interest monthly based on a floating rate, as defined by the lender, and is subject to periodic adjustments based on prevailing market conditions. Under the Wells Fargo Term Note, we make payments of principal monthly. During the year ended December 31, 2024, we modified the Wells Fargo Term Note and borrowed an additional $2.0 million.

As of December 31, 2025 and 2024, the outstanding balance under the Wells Fargo Term Loan was approximately $7.7 million and $9.3 million, respectively. As of December 31, 2025 and 2024, the applicable interest rates were 6.62% and 7.30%, respectively, on the portion of outstanding principal entered into during November 2023, net of aggregate principal repayments of $1.6 million and $1.3 million, respectively, and 8.50% and 9.25% on the $2.0 million incremental borrowings entered into during December 2024 net of aggregate principal repayments of $0.4 million and less than $0.1 million, respectively. The Wells Fargo Term Loan matures on the earlier of (i) November 6, 2028, or (ii) the maturity date of the Great Falls Term Loan.

The Wells Fargo Term Note contains customary conditions regarding our borrowing, including events of default and covenants. Covenants include restrictions on certain consolidated subsidiaries' ability to incur indebtedness, grant liens, dispose of assets, make investments, bail or consign inventory or engage in transactions with affiliates (each such restriction subject to certain exceptions), and requires us to maintain a consolidated Fixed Charge Coverage Ratio (as such term is defined in the Wells Fargo Credit Agreement) of not less than 1.05 to 1.00, as measured on a month-end basis. The obligations under the Wells Fargo Term Note are secured by substantially all of Microwave Techniques' assets. We were in compliance with all covenants as of the date of this prospectus.

<u><u>First BankProv Term Note</u></u>

On March 2, 2020, Microwave Techniques entered into a secured $6.5 million term note with BankProv (the "First BankProv Term Note"). Amounts under the First BankProv Term Note are secured by certain of assets of Microwave Techniques and are guaranteed by Microwave Techniques. The First BankProv Term Note accrues monthly interest based on a stated interest rate of 4.79%. As of December 31, 2025 and 2024, the outstanding balance of the First BankProv Term Note was approximately $1.7 million and $3.0 million, respectively. The First BankProv Term Note has a maturity date of March 2, 2027.

The First BankProv Term Note contains conditions on Microwave Techniques borrowing, including events of default and covenants. Covenants include restrictions on Microwave Techniques' ability to incur indebtedness, grant liens, dispose of assets, make investments or loans, and strategic transactions (each such restriction subject to certain exceptions), and require the consolidated subsidiaries to maintain several financial covenants, including a leverage ratio. We were in compliance with all obligations under the First BankProv Term Note as of the date of this prospectus.

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<u><u>United Federal Credit Union Term Note</u></u>

On September 23, 2024, Elmet Tech entered into a secured $1.6 million term note with United Federal Credit Union (the "United Federal Credit Union Note"). Amounts under the United Federal Credit Union Note are secured by a solar project at Elmet Coldwater LLC, which now serves as a real estate holding company for properties used by our CMC division. The United Federal Credit Union Note accrues monthly interest based on a stated interest rate of 9.00% and does not require payments of principal until March 2025. As of December 31, 2025 and 2024, the outstanding balance under the United Federal Credit Union Note was $1.1 million and $1.6 million, respectively. The United Federal Credit Union Note has a maturity date of September 10, 2027.

The United Federal Credit Union Term Note contains customary conditions on borrowing, including events of default. Upon an event of default, the lender would be entitled to exercise customary remedies, including acceleration of amounts due and enforcement of any applicable rights against the borrower. We were in compliance with all obligations under the United Federal Credit Union Note as of the date of this prospectus.

<u>Poly Labs Note Payable (Due to Poly Labs)</u>

Following A&A's distribution of Poly Labs (see Note 5 — *Discontinued Operations* within the notes to our consolidated financial statements included elsewhere in this prospectus for additional information), AAI had an outstanding note payable owed to Poly Labs of approximately $1.7 million (the "Poly Labs Note Payable"). Prior to the distribution of Poly Labs, the Poly Labs Note Payable was eliminated in consolidation. The Poly Labs Note Payable accrued interest monthly based on a stated interest rate of 10.00%. As of December 31, 2025 and 2024, the outstanding balance under the Poly Labs Note Payable was $0.5 million and $0.0 million, respectively. The Poly Labs Note Payable had a maturity date of January 31, 2026. The Poly Labs Note Payable was repaid in full on January 19, 2026.

<u>October 2023 Term Loans</u>

On October 6, 2023, we entered into two separate unsecured term loans with investors of AAI, with aggregate gross proceeds of approximately $0.5 million (the "October 2023 Term Loans"). The October 2023 Term Loans accrue interest monthly based on a stated fixed interest rate of 8.00%.

In April 2025, we amended one of the October 2023 Term Loans to add a conversion feature to enable the holder to convert the outstanding principal and accrued interest into membership units of AAI upon certain liquidity events, including an initial public offering. On December 29, 2025, the holder of this October 2023 Term Loan waived his right to convert the term loan into AAI membership units.

As of December 31, 2025 and 2024, approximately $0.5 million was outstanding related to the October 2023 Term Loans. The maturity dates of the October 2023 Term Loans range from October 2026 to October 2027.

The October 2023 Term Loans are subject to customary conditions, including events of default, with which we were in compliance as of the date of this prospectus.

#### Cash Flows
The following table summarizes our consolidated cash flows from continuing operations for the years ended:

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| | | |
|:---|:---|:---|
|  | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** |
|  **($ in thousands)** | **2025** | **2024** |
|  Net cash provided by operating activities from continuing operations | $13512 | $22794 |
|  Net cash used in investing activities from continuing operations | (10607) | (6147) |
|  Net cash used in financing activities from continuing operations | (4925) | (16641) |
|  Effects of exchange rate changes on cash from continuing operations | 166 | (51) |
|  Net change in cash from continuing operations | $(1854) | $(45) |

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*Operating Activities*

Net cash provided by operating activities from continuing operations was $13.5 million for the year ended December 31, 2025, driven primarily by income from continuing operations of $7.9 million and non-cash adjustments to income from continuing operations of $8.7 million, partially offset by a $3.1 million decrease related to changes in net working capital. Non-cash adjustments to income from continuing operations primarily consisted of depreciation and amortization expense of $6.0 million, stock-based compensation of $1.5 million, non-cash lease expense of $0.9 million and provisions for excess and obsolete inventories of $0.4 million, partially offset by $0.1 million in other non-cash adjustments. The change in net working capital was a result of a decrease in inventories of $13.5 million and a decrease in operating lease liabilities of $0.8 million, and a $0.5 million outflow related to immaterial changes in other account balances, partially offset by a net cash inflow related to the timing of billing and cash receipts from customers of $7.7 million, an increases in accounts payable of $1.8 million, and an increase in accrued expenses and other current liabilities of $2.2 million.

Net cash provided by operating activities from continuing operations was $22.8 million for the year ended December 31, 2024, driven primarily by income from continuing operations of $9.7 million, non-cash adjustments to income from continuing operations of $8.0 million, and $5.1 million from changes in net working capital. Non-cash adjustments to income from continuing operations primarily consisted of depreciation and amortization expense of $5.4 million, non-cash lease expense of $0.9 million, provisions for excess and obsolete inventories of $0.9 million and amortization of the inventory step-up related to a prior year acquisition of $0.8 million. The change in net working capital was a result of increases in accounts payable and accrued expenses of $5.3 million and a decrease in inventories of $1.5 million, partially offset by a net cash outflow related to the timing of billing and cash receipts from customers of $0.6 million, a decrease in operating lease liabilities of $0.8 million, and a $0.3 million outflow related to other operating assets and liabilities.

*Investing Activities*

Net cash used in investing activities from continuing operations was $10.6 million for the year ended December 31, 2025, driven primarily by purchases of property, plant and equipment of $15.7 million, which were partially offset by $5.3 million of cash received from government grants related to capital projects. We also had a cash outflow related to the purchase of Symphony, net of cash acquired of $0.2 million during the year ended December 31, 2025.

Net cash used in investing activities from continuing operations was $6.1 million for the year ended December 31, 2024, driven primarily by purchases of property, plant and equipment of $13.0 million, which were partially offset by $7.0 million of cash received from government grants related to capital projects. We also purchased $0.1 million of marketable securities during the year ended December 31, 2024.

*Financing Activities*

Net cash used in financing activities from continuing operations was $4.9 million for the year ended December 31, 2025, driven primarily by payments of principal on long-term debt of $6.2 million, cash distributions to noncontrolling interest holders for tax obligations of $5.4 million, payments of principal on long-term debt — related party of $4.2 million, and cash distributions to A&A stockholders for tax obligations of $1.7 million, partially offset by net proceeds from revolving credit facilities of $10.3 million, proceeds from long-term debt — related party of $1.5 million, net proceeds from revolving credit facilities — related party of $0.6 million, and cash contributions from noncontrolling interest holders of $0.2 million.

Net cash used in financing activities from continuing operations was $16.6 million for the year ended December 31, 2024, driven primarily by cash distributions to noncontrolling interest holders for tax obligations of $7.6 million, payments of principal on long-term debt of $3.1 million, net payments on revolving credit facilities of $4.2 million, cash distributions to A&A stockholders for tax obligations of $3.7 million, payments of principal on long-term debt — related party of $1.5 million, the payment of $0.4 million of deferred consideration related to a prior period, and a net cash outflow of $0.2 million related to other immaterial activity during the year, partially offset by proceeds from long-term debt of $3.6 million and cash contributions from noncontrolling interest holders of $0.5 million.

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#### Material Cash Commitments
Our material future cash commitments are to repay our current indebtedness obligations, as described above, and make payments under leases for our facilities. We have operating leases for our manufacturing facilities with lease terms that expire between November 2026 and February 2037. Many leases include one or more options to renew, but renewals are not assumed in the determination of the lease term due to uncertainty. For more information on our leases, see Note 10 *— Leases* within our consolidated financial statements included elsewhere in this prospectus.

The following table summarizes our material cash commitments as of December 31, 2025 (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  **Year Ended December 31,** | **Leases** | **Indebtedness** | **Total** |
| 2026 | $2011 | $10074 | $12085 |
| 2027 | 2006 | 2770 | 4776 |
| 2028 | 2001 | 39897 | 41898 |
| 2029 | 1772 | 21 | 1793 |
| 2030 | 1529 | 22 | 1551 |
|  Thereafter | 9162 | 669 | 9831 |
|  Total | $18481 | $53453 | $71934 |

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#### Off-Balance Sheet Arrangements
As of December 31, 2025 and 2024, we did not have any off-balance sheet arrangements.

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#### UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Our unaudited pro forma condensed consolidated balance sheet as of December 31, 2025 and unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2025 present our financial position and results of operations after giving pro forma effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Reorganization described in the section entitled "*Business — Corporate History and Reorganization*";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) our anticipated repayment using proceeds from this offering of the outstanding borrowings under the (A) Great Falls Term Loan, (B) the President Line of Credit and (C) the AAI Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the impact of stock-based compensation expense of $1.7 million related to the acceleration of vesting of 153,500 shares of restricted stock issued under our 2025 Plan, for which both the service-based vesting and performance-based vesting conditions will be satisfied upon the consummation of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the impact of stock-based compensation expense of $10.9 million, associated with 987,700 SARs granted under the 2016 Plan, for which both the service-based vesting and performance-based vesting conditions will be satisfied upon the consummation of this offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the sale of 7,692,307 shares of our common stock in this offering at an assumed initial public offering price of $13.00 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.

The transactions above are considered to have occurred on December 31, 2025 for the unaudited pro forma condensed consolidated balance sheet and on January 1, 2025 for the unaudited pro forma condensed consolidated statement of operations. We refer herein to adjustments related to the transactions described in clause (i) above as the "Reorganization Adjustments," and adjustments related to the transaction described in clauses (ii), (iii), (iv), and (v) above collectively as the "Offering Adjustments."

The unaudited pro forma condensed consolidated balance sheet as of December 31, 2025 and the unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2025 have been derived from the audited consolidated financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) consolidated financial statements and related notes included elsewhere in this prospectus. The presentation of the unaudited pro forma financial information is prepared in conformity with Article 11 of Regulation S-X under the Securities Act.

The unaudited pro forma condensed consolidated financial statements are not necessarily indicative of financial results that would have been attained had the described transactions occurred on the dates indicated above or that could be achieved in the future. Future results may vary significantly from the results reflected in the unaudited pro forma condensed consolidated statement of operations which should not be relied on as an indication of our results after the consummation of this offering and the other transactions. However, management believes that the pro forma adjustments give appropriate effect to the transactions as contemplated and are properly applied in the unaudited pro forma condensed consolidated financial statements.

As a future public company, we are expecting to implement additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies. We expect to incur additional annual expenses related to these steps and, among other things, additional directors' and officers' liability insurance, director fees, fees to comply with the reporting requirements of the SEC, transfer agent fees, hiring of additional accounting, legal and administrative personnel, increased auditing and legal fees and similar expenses. We have not included any pro forma adjustments relating to these costs.

The unaudited pro forma condensed consolidated financial information should be read together with "*Use of Proceeds*," "*Capitalization*," "*Business — Corporate History and Reorganization*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," "*Certain Relationships and Related Party Transactions*." and the historical audited consolidated financial statements and related notes thereto included elsewhere in this prospectus.

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#### THE ELMET GROUP CO.<br>UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET<br>AS OF DECEMBER 31, 2025<br> (in thousands)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Anania & <br>Associates <br>and <br>Subsidiaries <br>(a/k/a The<br> Elmet <br>Group Co.)** | **Reorganization <br>Adjustments<sup>(2)</sup>** |  | **Pro <br>Forma** | **Offering <br>Adjustments<sup>(3)</sup>** |  | **Pro Forma <br>As Adjusted** |
|  **Assets** |  |  |  |  |  |  |  |
|  Current Assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $1759 | $(46) | 2(b) | $1713 | $67205 | 3(a)(b)(e)(f) | $68918 |
| &nbsp;&nbsp;&nbsp; Marketable securities | 202 |  |  | 202 |  |  | 202 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 28904 |  |  | 28904 |  |  | 28904 |
| &nbsp;&nbsp;&nbsp; Government grant receivable | 1690 |  |  | 1690 |  |  | 1690 |
| &nbsp;&nbsp;&nbsp; Related party receivables | 426 | (81) | 2(b) | 345 |  |  | 345 |
| &nbsp;&nbsp;&nbsp; Unbilled revenue | 2621 |  |  | 2621 |  |  | 2621 |
| &nbsp;&nbsp;&nbsp; Inventories, net | 69697 |  |  | 69697 |  |  | 69697 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 4774 |  |  | 4774 | (854) | 3(f) | 3920 |
|  Total current assets | 110073 | (127) |  | 109946 | 66351 |  | 176297 |
|  Property, plant and equipment, net | 42342 |  |  | 42342 |  |  | 42342 |
|  Operating lease right-of-use assets | 10586 |  |  | 10586 |  |  | 10586 |
|  Intangible assets, net | 7184 |  |  | 7184 |  |  | 7184 |
|  Goodwill | 4583 |  |  | 4583 |  |  | 4583 |
|  Other assets | 878 | 5953 | 2(e) | 6831 |  |  | 6831 |
|  Total assets | $175646 | $5826 |  | $181472 | $66351 |  | $247823 |
|  **Liabilities and Stockholders' Equity** |  |  |  |  |  |  |  |
|  Current Liabilities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | $16165 | $(825) | 2(b) | $15340 | $(5) | 3(f) | $15335 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other current <br>liabilities | 13659 | (456) | 2(b) | 13203 | (1118) | 3(b)(f) | 12085 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, current portion | 875 |  |  | 875 |  |  | 875 |
| &nbsp;&nbsp;&nbsp; Current portion of long-term debt – related party | 2319 | 1814 | 2(b) | 4133 | (4133) | 3(a)(b) |  |
| &nbsp;&nbsp;&nbsp; Current portion of long-term debt | 7755 | (250) | 2(b) | 7505 |  |  | 7505 |
| &nbsp;&nbsp;&nbsp; Deferred government grants | 4672 |  |  | 4672 |  |  | 4672 |
| &nbsp;&nbsp;&nbsp; Deferred revenue | 14853 |  |  | 14853 |  |  | 14853 |
|  Total current liabilities | 60298 | 283 |  | 60581 | (5256) |  | 55325 |
|  Operating lease liabilities, net of current portion | 10247 |  |  | 10247 |  |  | 10247 |
|  Long term debt, net of current <br>portion | 28455 | (250) | 2(b) | 28205 |  |  | 28205 |
|  Long term debt, net of current portion – related party | 15000 |  |  | 15000 | (15000) | 3(b) |  |
|  Other liabilities | 1189 | 9391 | 2(e) | 10580 |  |  | 10580 |
|  Total liabilities | 115189 | 9424 |  | 124613 | (20256) |  | 104357 |

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#### THE ELMET GROUP CO.<br>UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET — (Continued)<br>AS OF DECEMBER 31, 2025<br> (in thousands)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Anania & <br>Associates <br>and <br>Subsidiaries <br>(a/k/a The<br> Elmet <br>Group Co.)** | **Reorganization <br>Adjustments<sup>(2)</sup>** |  | **Pro <br>Forma** | **Offering <br>Adjustments<sup>(3)</sup>** |  | **Pro Forma <br>As Adjusted** |
|  Stockholders' Equity: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Common Stock |  | 20 | 2(a) | 20 | 8 | 3(e) | 28 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1516 | 13850 | 2(c) | 15366 | 99422 | 3(g) | 114788 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 55119 | (13926) | 2(d) | 41193 | (12823) | 3(h) | 28370 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 280 |  |  | 280 |  |  | 280 |
|  Total Anania & Associates stockholders' equity | 56915 |  |  |  |  |  |  |
|  Noncontrolling interests in consolidated subsidiaries | 3542 | (3542) | 2(a)(b) |  |  |  |  |
|  Total stockholders' equity | 60457 | (3598) |  | 56859 | 86607 |  | 143466 |
|  Total liabilities and stockholders' <br>equity | $175646 | $5826 |  | $181472 | $66351 |  | $247823 |

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#### The Elmet Group Co.<br> UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS<br>YEAR ENDED DECEMBER 31, 2025<br> (in thousands)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Anania & <br>Associates <br>and <br>Subsidiaries <br>(a/k/a The <br>Elmet <br>Group Co.)** | **Reorganization <br>Adjustments<sup>(2)</sup>** |  | **Pro <br>Forma** | **Offering <br>Adjustments<sup>(3)</sup>** |  | **Pro Forma <br>As Adjusted** |
|  Revenue | $201636 | $— |  | $201636 | $— |  | $201636 |
|  Cost of goods sold | 160617 |  |  | 160617 |  |  | 160617 |
|  Gross profit | 41019 |  |  | 41019 |  |  | 41019 |
|  Operating expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 18925 | (295) | 2(b) | 18630 | 12623 | 3(c)(d) | 31253 |
| &nbsp;&nbsp;&nbsp; Research and development | 3357 |  |  | 3357 |  |  | 3357 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 6663 |  |  | 6663 |  |  | 6663 |
|  Total operating expenses | 28945 | (295) |  | 28650 | 12623 |  | 41273 |
|  Operating income (loss) | 12074 | 295 |  | 12369 | (12623) |  | (254) |
|  Other expense, net: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense | 2613 | (73) | 2(b) | 2540 |  |  | 2540 |
| &nbsp;&nbsp;&nbsp; Interest expense – related party | 1797 | (7) | 2(b) | 1790 | (1468) | 3(b) | 322 |
| &nbsp;&nbsp;&nbsp; Other income, net | (231) | 75 | 2(b) | (156) |  |  | (156) |
|  Total other expense, net | 4179 | (5) |  | 4174 | (1468) |  | 2706 |
|  Income (loss) from continuing operations before taxes | 7895 | 300 |  | 8195 | (11155) |  | (2960) |
|  Income tax (benefit) expense | (45) | 969 | 2(e) | 924 | (2395) | 2(e) | (1471) |
|  Income (loss) from continuing operations | 7940 | (669) |  | 7271 | (8760) |  | (1489) |
|  Loss from discontinued operations | (2398) | 2398 | 2(f) |  |  |  |  |
|  Net income (loss) | $5542 | $1729 |  | $7271 | $(8760) |  | $(1489) |
|  Income from continuing operations attributable to non-controlling interests | 1825 |  |  |  |  |  |  |
|  (Loss) income from discontinued operations attributable to non-controlling interests | (652) |  |  |  |  |  |  |
|  Net income attributable to noncontrolling interests | 1173 |  |  |  |  |  |  |
|  Net income attributable to Anania & Associates stockholders | $4369 |  |  |  |  |  |  |
|  Pro forma net income (loss) per share<sup>(4)</sup> |  |  |  |  |  |  |  |
|  Pro forma weighted-average shares outstanding: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic<sup>(4)</sup> |  |  |  | 20122721 |  |  | 28598398 |
| &nbsp;&nbsp;&nbsp; Diluted<sup>(4)</sup> |  |  |  | 20377533 |  |  | 28598398 |
|  Pro forma net income (loss) per share: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic<sup>(4)</sup> |  |  |  | $0.36 |  |  | $(0.05) |
| &nbsp;&nbsp;&nbsp; Diluted<sup>(4)</sup> |  |  |  | $0.36 |  |  | $(0.05) |

---

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#### The Elmet Group Co.<br> NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED <br>FINANCIAL INFORMATION
**1. Description of the Transaction and Basis of Presentation**

The unaudited pro forma condensed consolidated financial information was prepared in accordance with Article 11 of Regulation S-X and presents our pro forma financial condition and results of operations, which is based upon our historical financial information after giving effect to the transactions described herein.

The unaudited pro forma condensed consolidated financial information presented assumes no exercise by the underwriters of their option to purchase additional shares, and thus gives no effect to: (i) the over-allotment option we have granted to the underwriters to purchase additional shares of our common stock from us as described above or (ii) the Broker's Warrants. In addition, the unaudited pro forma condensed consolidated financial information does not give effect to (i) additional expenses we expect to incur as a public company, (ii) the 17,500 shares reserved for issuance under the 2025 Plan, as the compensation committee of our board of directors has not approved any such grants and the number of future shares granted have not yet been determined as of the date of this prospectus, or (iii) shares issuable under the 2026 Plan (as defined elsewhere in this prospectus) following the date of this offering.

The "Reorganization Adjustments" column is comprised of adjustments related to the Reorganization and are further described in the accompanying footnotes.

The "Offering Adjustments" column is comprised of adjustments related to (i) the repayment of outstanding borrowings under the Great Falls Term Loan, the President Line of Credit and the AAI Note, using proceeds from the offering; (ii) the impact of the stock-based compensation expense of $1.7 million related to the acceleration of vesting of 153,500 shares of restricted stock issued under our 2025 Plan in connection with this offering, which vest upon a liquidity event-related performance-based vesting condition that will be satisfied upon the completion of this offering; (iii) stock-based compensation expense of $10.9 million associated with 987,700 SARs granted under the 2016 Plan, for which the liquidity event-related performance-based vesting conditions will be satisfied upon the completion of this offering; and (vi) the proceeds from this offering. These adjustments assume an initial public offering price of $13.00 per share, which is the midpoint of the estimated 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. As of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds of this offering, nor can we specify an approximate amount of proceeds intended for any purpose. However, we currently intend to use the net proceeds of this offering for working capital, to acquire complementary businesses, products, services or technologies and for general corporate purposes, which may include repayment of debt and capital expenditures. At this time, we do not have agreements or commitments to enter into any material acquisitions. If any net proceeds of this offering are used to repay debt, we currently expect that we would repay outstanding borrowings under our Great Falls Term Loan, the President Line of Credit, and the AAI Note. The unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2025 does not reflect any "Offering Adjustments" as we do not have adjustments impacting revenues or expenses related to the offering. Any non-recurring transaction fees associated with the offering have either been recognized or capitalized in the historical audited and unaudited financial statements or were deemed immaterial.

Elmet was incorporated as a Delaware corporation on September 13, 2024, and prior to the consumption of the Reorganization on January 2, 2026, did not conduct any activities other than those incidental to our formation and our initial public offering. As a result, prior to January 2, 2026, Elmet did not have any material assets or results of operations and therefore its historical balance sheet and historical statement of operations is not shown in a separate column in the unaudited pro forma condensed consolidated balance sheet and unaudited pro forma condensed consolidated statement of operations. The column titled "Historical Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.)" represents the historical audited consolidated financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.).

The Reorganization was accounted for as a transaction between entities under common control and was accounted for in a manner similar to a pooling of interests with the assets and liabilities received in the Reorganization being carried over at their historical carrying amounts, as reflected in the historical consolidated financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.).

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Following the Reorganization, Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) are wholly owned by Elmet, except for AAI, which as a result of the Reorganization is no longer controlled by Elmet or Anania & Associates. In future reporting periods, the financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) will be retrospectively recast to reflect the results as if Elmet owned Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) as of the earliest period presented. The adjustments related to AAI are further described in the accompanying footnotes.

**2. Transaction Adjustments to the Unaudited Pro Forma Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reflects the impact of the Reorganization whereby the outstanding equity interests in Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) were contributed to Elmet. See the section titled "*Business — Corporate History and Reorganization*" for further details on the steps taken to complete the Reorganization. The Reorganization was accounted for as a transaction between entities under common control and for in a manner similar to a pooling of interests with the assets and liabilities received in the Reorganization being carried over at their historical carrying amounts, as reflected in the historical consolidated financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.). As a result of the Reorganization, the historical noncontrolling interests in the of Anania & Associates are derecognized as all subsidiaries are wholly owned by Elmet after the Reorganization.

Refer to Note 2(g) for a reconciliation of the adjustments to additional paid-in capital. Refer to Note 2(b) for the impact of AAI no longer being consolidated by either Anania & Associates or Elmet following the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As a result of the Reorganization, Anania & Associates' equity interest in AAI was not contributed to Elmet. Following the Reorganization, we will have no interest in AAI. As a result, we have derecognized the assets, liabilities and equity of AAI within the unaudited pro forma condensed consolidated balance sheet as if the deconsolidation occurred as of December 31, 2025. The adjustment to the unaudited pro forma condensed consolidated statement of operations removes all activity related to AAI as if the deconsolidation of AAI occurred on January 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The following table summarizes the computation of pro forma additional paid-in-capital within the unaudited pro forma condensed consolidated balance sheet (in thousands):

---

| | |
|:---|:---|
|  | **Pro Forma** |
|  Historical carrying value of equity of Anania & Associates and consolidated subsidiaries contributed to Elmet – Note 2(a) | $13870 |
|  Par value of Elmet's common stock – Note 2(a) | (20) |
|  Total additional paid-in capital pro forma adjustment | $13850 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The following table summarizes the computation of pro forma retained earnings within the unaudited pro forma condensed consolidated balance sheet (in thousands):

---

| | |
|:---|:---|
|  | **Pro Forma** |
|  Historical carrying value of equity of Anania & Associates and consolidated subsidiaries contributed to Elmet – Note 2(a) | $(13870) |
|  Deconsolidation of AAI – Note 2(b) | (160) |
|  Income tax effects – Note 2(e) | (3438) |
|  Elimination of noncontrolling interests in consolidated subsidiaries of Anania & Associates – Note 2(a) | 3542 |
|  Total retained earnings pro forma adjustment | $(13926) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Prior to the Reorganization and the completion of this offering, Anania & Associates and certain of its consolidated subsidiaries were treated as a pass-through entity for U.S. federal and certain state income tax purposes. Accordingly taxable income was not subject to U.S. federal and state corporate income taxes. Instead, such taxable income was allocated to its stockholders/members and included in their

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respective tax returns. Historically, one of Anania & Associates' consolidated subsidiaries was subject to foreign income taxes in jurisdictions in which it conducts business, which are immaterial and are not adjusted in the pro forma adjustments.

Following the Reorganization, the Company will be subject to U.S. federal and applicable state income taxes. The pro forma provision for income taxes reflects the estimated income tax expense that would have been recognized had the Reorganization and this offering occurred on January 1, 2025, based on a blended statutory tax rate of 21.47%. On the unaudited pro forma condensed consolidated balance sheet, this adjustment reflects the recognition of deferred tax assets and liabilities of arising from temporary differences between the financial statement carrying amounts and the tax basis of the Company's assets and liabilities that are expected to be realized as a result of the Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This adjustment reflects the removal of discontinued operations on the unaudited pro forma condensed consolidated statement of operations as if the distribution of Poly Labs occurred on January 1, 2025.

**3. Offering Adjustments to the Unaudited Pro Forma Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As a result of the deconsolidation of AAI in connection with the Reorganization, the Company owes AAI $2.4 million related to the AAI Note that will be repaid in connection with the offering. Prior to the deconsolidation of AAI, the AAI Note was eliminated in consolidation. This adjustment reflects a decrease of $2.4 million to cash and current portion of long-term debt — related party as a result of the anticipated repayment of the AAI Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects a decrease of $17.4 million, $1.8 million, and $15.0 million to cash, current portion of long-term debt — related party, and long-term debt, net of current portion — related party, respectively as a result of the anticipated repayment of the Great Falls Term Loan and President Line of Credit using cash on hand following the proceeds raised from the offering. In addition, it reflects a decrease of $0.5 million in accrued expenses related to accrued interest on the Great Falls Term Loan and President Line of Credit as of December 31, 2025.

As part of the anticipated repayment of the President Line of Credit, there was a non-recurring adjustment to the unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2025 to reflect the loss on extinguishment of debt of $0.2 million recorded within interest expense — related party. As part of the anticipated repayment of the Great Falls Term Loan and President Line of Credit, there was an adjustment to remove the impact of $1.5 million and $0.1 million, respectively, of related party interest expense incurred during the year ended December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reflects an increase to general and administrative expense for additional stock-based compensation expense of $10.9 million for the year ended December 31, 2025, related to the legacy unit appreciation rights that were originally granted under the 2016 Plan of Elmet Tech, which were converted into SARs of the Company prior to this offering. As of the date of this offering, 987,700 SARs had been issued under the amended 2016 Plan, of which 987,700 SARs will have both the service-based vesting and performance-based vesting conditions satisfied upon the consummation of the offering.

The SARs entitle the holder the right to receive cash or common stock of the Company, at the discretion of our board of directors, upon the occurrence of certain liquidity events, which is anticipated to be satisfied upon the consummation of this offering. As of the date of this offering, 677,280 SARs are anticipated to be net-settled in shares, resulting in the anticipated issuance of 629,870 shares of our common stock, based on the assumed initial public offering price of $13.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus. The remaining 310,420 SARs are anticipated to be net cash settled upon the consummation of the offering. The estimated cash settlement amount of $3.8 million is reflected as a decrease in cash and is based on the assumed initial public offering price of $13.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As of the date of this offering, the 2025 Plan will be terminated; however, as approved by our board of directors and established under the 2026 Plan (as defined elsewhere in this prospectus), any outstanding awards granted under the 2025 Plan that will remain outstanding as of the date of this offering, will continue to vest in accordance with the terms of the 2025 Plan and applicable award agreements. Under the 2025 Plan, certain shares of restricted stock contain service-based and performance-based vesting conditions, which will be satisfied upon the consummation of this offering. The pro-forma adjustment reflects an increase to general and administrative expense of $1.7 million for the year ended December 31, 2025, related to the recognition of previously unrecognized stock-based compensation that was assumed to be recognized as of January 1, 2025, as a result of the vesting of 153,500 shares of restricted stock upon the consummation of this offering.

There is no pro forma impact related to the remaining 457,390 shares of restricted stock that will remain outstanding as of the date of this offering, as such awards are expected to continue to vest based the terms of the original awards as established under the 2025 Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Reflects the anticipated sale of 7,692,307 shares of common stock in this offering at an assumed initial public offering price of $13.00 per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and a par value of $0.001 per share, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us of $7.0 million and $2.4 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reflects a $0.9 million, $0.7 million and less than $0.1 million, decrease in prepaid expenses and other current assets, accrued expenses, and accounts payable, respectively, for specific direct costs attributable to this offering which were incurred and unpaid as of December 31, 2025. Costs include legal, accounting and other related costs attributable to this offering. These costs will be offset against the proceeds from this offering as a reduction to additional paid-in capital (see Note 3(e) above) and are included in the $2.4 million of estimated offering expenses set forth in Note 3(e) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The following table summarizes the computation of pro forma as adjusted additional paid-in-capital within the unaudited pro forma condensed consolidated balance sheet (in thousands):

---

| | |
|:---|:---|
|  | **Pro Forma As <br>Adjusted** |
|  Proceeds from issuance of Elmet's common stock in connection with the offering, net of par value – Note 3(e) | $99992 |
|  Offering costs – Note 3(e)(f) | (9442) |
|  Acceleration of stock-based compensation – equity-settled SARs – Note 3(c) | 7187 |
|  Acceleration of stock-based compensation – restricted stock – Note 3(d) | 1685 |
|  Total additional paid-in capital pro forma as adjusted adjustment | $99422 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The following table summarizes the computation of pro forma as adjusted retained earnings within the unaudited pro forma condensed consolidated balance sheet (in thousands):

---

| | |
|:---|:---|
|  | **Pro Forma As <br>Adjusted** |
|  Loss on extinguishment of President Line of Credit – Note 3(b) | $(200) |
|  Acceleration of stock-based compensation – SARs – Note 3(c) | (10938) |
|  Acceleration of stock-based compensation – restricted stock – Note 3(d) | (1685) |
|  Total retained earnings pro forma as adjusted adjustment | $(12823) |

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**4. Pro Forma Net Income (Loss) per Share**

The following table sets forth a reconciliation of the numerators and denominators used to compute pro forma basic and diluted net income per share (in thousands, except share and per share data):

---

| | |
|:---|:---|
|  | **Year Ended <br>December 31, <br>2025** |
|  **Numerator:** |  |
|  Pro forma net income | $7271 |
|  **Denominator:** |  |
|  Pro forma weighted average common stock outstanding – basic<sup>(a)</sup> | 20122721 |
|  Plus: dilutive stock-based awards<sup>(b)</sup> | 254812 |
|  Pro forma weighted average common stock outstanding – diluted<sup>(a,b)</sup> | 20377533 |
|  Pro forma net income per share – basic | $0.36 |
|  Pro forma net income per share – diluted | $0.36 |

---

____________

(a) Pro Forma as adjusted weighted average common stock outstanding (basic and diluted) reflects the Reorganization as if it occurred on January 1, 2025, including the impact of the Reorganization, resulting in 20,122,721 shares of common stock issued and outstanding.

(b) The potential impact on the pro forma weighted average common stock outstanding (diluted) of 530,890 shares of restricted stock were evaluated under the treasury stock method. Given the Company's history of generating net income, the unvested restricted stock outstanding as of the assumed date of this offering were assessed for potential dilution. The Company determined that the impact of the 530,890 shares of restricted stock represented 254,812 dilutive shares, considering the weighted average unrecognized compensation costs of approximately $3.2 million for the year ended December 31, 2025, and the estimated fair value of our common stock for the period.

The following table sets forth a reconciliation of the numerators and denominators used to compute pro forma as adjusted basic and diluted net loss per share (in thousands, except share and per share data):

---

| | |
|:---|:---|
|  | **Year Ended <br>December 31, <br>2025** |
|  **Numerator:** |  |
|  Pro forma as adjusted net loss | $(1489) |
|  **Denominator:** |  |
|  Pro forma as adjusted weighted average common stock outstanding – basic<sup>(a)</sup> | 28598398 |
|  Pro forma as adjusted weighted average common stock outstanding – diluted<sup>(b)</sup> | 28598398 |
|  Pro forma as adjusted net loss per share – basic | $(0.05) |
|  Pro forma as adjusted net loss per share – diluted | $(0.05) |

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____________

(a) Pro Forma as adjusted weighted average common stock outstanding (basic and diluted) reflects the Reorganization and this offering as if it occurred on January 1, 2025, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The impact of the Reorganization, resulting in 20,122,721 shares of common stock issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The impact of 153,500 shares related to the anticipated accelerated vesting of restricted stock as described in Note 3(d) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The impact of the issuance of 629,870 shares related to the anticipated accelerated vesting of the 677,280 SARs as described in Note 3(c) above. The impact of the 310,420 SARs that will vest and are anticipated to be cash settled upon the consummation of this offering, as described in Note 3(c) above were excluded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The impact of the anticipated sale of 7,692,307 shares of common stock in this offering at $13.00 per share (reflecting the mid-point of the price range), excluding any shares that may be issued upon exercise of the underwriters' over-allotment option.

(b) The potential impact on the pro forma as adjusted weighted average common stock outstanding (diluted) of the 457,390 shares of restricted stock that do not contain acceleration provisions, as noted in Note 3(d) above, were evaluated under the treasury stock method. These restricted shares were determined to be antidilutive and were not included in the computation of diluted pro forma as adjusted net loss per share.

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#### BUSINESS

#### Overview
We provide precision-engineered components and advanced high-power systems for growth markets. Our customers in these markets require advanced technology involving Critical Materials, such as tungsten, molybdenum and niobium and High-Power Microwave, such as high level RF engineering, including plasma generation, radar, and other high-energy systems. Our products and solutions are integral to the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics and Energy industries. These are industries which require components capable of performing in extreme thermal, electromagnetic, and technical environments for vital use cases. Our fundamental mission is to strengthen U.S. domestic manufacturing capabilities to support the United States and its allies' needs in both Critical Materials and advanced High-Power Microwave systems. We believe we are the leader and sole-source U.S. producer of many highly engineered Critical Materials products and a leading designer and manufacturer of High-Power Microwave components in the United States.

Our business is organized into two divisions, Critical Materials Components and Engineered Microwave Products. Through our divisions, we own and operate a vertically integrated engineering-to-production system, with custom design, development, and processing expertise for Critical Materials and High-Power Microwave that is unmatched in our markets and the industries in which we compete. Our High-Power Microwave expertise capitalizes on our vertically integrated engineering-to-production system, enabling us to deliver microwave energy solutions with custom design and development expertise. Our Critical Materials engineering and production expertise enables us to custom design elegant solutions for some of the most challenging environments on the planet. We believe these capabilities provide a significant competitive advantage in our markets and the industries in which we compete.

We are proud to be the only U.S.-owned and U.S.-based manufacturer of highly engineered tungsten and molybdenum products through our CMC division. We control the powder production, pressing, sintering, forming, milling and engineering of tungsten and molybdenum oxide to the finished engineered product. Our CMC products support many of the most critical programs on land, sea and air of the DoW. Our engineering expertise in our EMP division has enabled us to provide products and services to a wide variety of existing and emerging programs also supporting the DoW and space sector leaders like Lockheed Martin, Raytheon, Teledyne and NASA. Our products are widely used in over 95 national lab programs, including benchmark research and development facilities such as Fermi and Los Alamos and many others around the world. Because of the common relationship among some of the products we offer, we are regularly able to incorporate our Critical Materials and our High-Power Microwave components in the same defense programs and high-powered energy research facilities throughout the United States, United Kingdom and Europe. Examples of such dual-CMC and EMP programs include the U.S. Patriot Missile system, which incorporates molybdenum components in the missile and waveguide radar components in the tracking vehicle, and leading fusion reactors, which include tungsten shielding and specialty microwave components to power the fusion ignition process.

Our comprehensive in-house design and manufacturing capabilities are supported by an approximately 98-person multi-disciplined technical team comprised of:

---

| | | |
|:---|:---|:---|
|  **Discipline** | **# of Team Members** | **Tenure\*\*** |
|  Mechanical Engineers & Technicians | 51 | Average Tenure: ~10 years |
|  Electrical Engineers & Technicians | 14 | Average Tenure: ~16 years |
|  Radio Frequency Engineers and Technicians | 16 | Average Tenure: ~10 years |
|  Expert Metallurgists\* | 9 | Average Tenure: ~ 15+ years |
|  Research & Development Scientists\* | 8 | Average Tenure: ~25+ years |
|  **Total** | **98** | **Total Team Average Tenure: ~15+ years** |

---

____________

\* Highly critical and uncommon

\*\* Tenure is based upon original hire date at the facility in which the team member works, even if later acquired by the Company.

Our customers benefit from the specialized expertise, know-how and product design we have developed in both engineered high-temperature, high-density Critical Materials and High-Power Microwave technology. Our specific capabilities provide our customers with a value proposition which allows these customers to simplify their

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supply chain, increase their speed to market and maintain competitive cost structures. Our engineering expertise and established track record position us to serve customers who need a systems solution required to withstand extreme environments and meet stringent performance requirements. These customers rely on us to deliver technical design and scaled manufacturing of integrated systems to meet these standards. Given the critical nature of the components and solutions we provide, we engage with customers early in their design cycle to develop difficult-to-replicate solutions, using our specialized processes and equipment, creating a competitive advantage.

We leverage our vertical integration and engineering capabilities to provide our products and services to five high-growth, strategically critical U.S. and global end-markets, which require components capable of performing in extreme thermal, electromagnetic, and mechanical environments including: Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics and Energy.

We are a Delaware corporation with headquarters in Portland, Maine and founded on September 13, 2024. On January 2, 2026, we completed the Reorganization, as a result of which we now wholly own our two primary operating subsidiaries, Elmet Tech and Microwave Techniques. Unless otherwise specified, the following description of our business does not include the business of Poly Labs, which was distributed to the shareholders of A&A on October 1, 2025. See "*— Reorganization*" below and "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Reorganization*" above.

#### The Markets for Our Products and Services
We expect the global market for Critical Materials such as tungsten, molybdenum and niobium to grow substantially over the next decade. For our Critical Materials, such as tungsten and molybdenum, the PRC controls more than 85% of the current supply of tungsten and 45% of molybdenum. We have strategically positioned ourselves to minimize supply chain disruptions or embargoes from the PRC, so we have direct access to and control over these Critical Materials (see *"— Sources and Availability of Raw Materials*" below). By taking early advantage of multiple reshoring efforts by the United States, European Union and other strategic nations for these Critical Materials in our key industries, including through increased focus on purchasing U.S.-manufactured products and governmental grants, we have significantly reduced our risk of PRC-influenced Critical Material shortages. In February 2025, the PRC's Ministry of Commerce and the General Administration of Customs jointly announced new export controls on a range of Critical Materials, including both tungsten and molybdenum. On October 26, 2025, the PRC's Ministry of Commerce reiterated plans to continue stringent export license restrictions on tungsten into 2026 – 2027. The PRC subsequently reversed this position on November 10, 2025, and suspended the export restrictions for one year. On January 6, 2025, the PRC's Ministry of Commerce imposed an additional ban on the export of all 'dual-use' items, including tungsten and molybdenum, to Japan for military applications. We believe the continuation of these export controls may further bifurcate the market and support accelerated growth for non-PRC product producers like us.

#### Critical Materials
*Molybdenum*

We believe the global molybdenum market can be broadly broken down into:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• steel additives, which we estimate account for approximately 60 – 70% of the market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pure molybdenum metal and alloys, which we estimate account for approximately 20 – 25% of the market; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• chemical compounds and catalysts, which we estimate account for approximately 5 – 10% of the market.

Molybdenum represents the largest metal by revenue in our Critical Materials division. Molybdenum market research reports indicate a total global market size for molybdenum products of between $4.5 and $5.0 billion in 2024. We currently focus on providing pure molybdenum metal, alloys and chemical compounds to customers in high-growth industries like Aerospace, Defense and Government and Medical. Market research predicts growth in the global molybdenum market at an annual rate of approximately 4.0% through the end of the decade (reaching $5.7 – $6.3 billion by 2030). As we do not serve the steel production market, we believe the market for our products represents over $1.25 billion in serviceable addressable market ("SAM") today. Examples of molybdenum products we manufacture include isothermal forging dies for aerospace applications such as jet engines, shape charges for the Hellfire and Javelin missile systems, the Patriot missile, and nuclear fuel boats used to sinter pellets.

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*Tungsten*

Tungsten is the second largest metal by revenue in our Critical Materials division. The global tungsten market including tungsten carbide, pure tungsten and tungsten alloys is estimated at between $5.0 – $5.5 billion, and according to Stellar Market Research is expected to grow at an annual rate between 6.7% to 8.0% through the end of the decade (reaching $7.0 – $8.0 billion by 2030). Because of the PRC's dominant position in the tungsten market and its past and threatened domestic export restrictions, the demand for non-PRC sourced tungsten is rapidly increasing. Excluding tungsten carbide products which accounts for approximately 50% of the global market by our estimates, we believe the SAM for our current products and capabilities is approximately $2.5 billion. Our largest customers for tungsten products are in the Aerospace, Defense and Government industries. The primary demand for our tungsten materials and components is driven by the need for fragmentation in a variety of ordinance system, armor penetrating ammunitions, fine wire for thermal protection systems used in missile systems, balance weights in both military and commercial aircraft, fine wire for robotic surgery and defrosting aircraft windshields, foil shielding for medical devices and high reliability heat sinks for the Electronics industry.

*Niobium*

Niobium is a small but growing segment of our CMC division's Critical Materials catalogue, but we consider niobium to be an important component of our service to our customers. Niobium is a strong and ductile metal with a high melting point and superconductive properties which is easier to machine than tungsten or molybdenum. Intel Market Research reports that the global niobium market was valued at $2.9 billion in 2024, and is projected to reach $4.6 billion by 2032. The niobium market is driven by demand in the Aerospace, Automotive and Energy industries. Ferroniobium accounts for over 85% of global niobium consumption as a micro-alloying element in high-strength low-alloy steel, and the demand for this metal is therefore tied to global steel production, particularly in infrastructure, construction, automotive and shipbuilding. Intel Market Research also projects that the niobium market will experience a compound annual growth rate of 7.0% through the end of the decade. This expected growth is being driven by factors beyond traditional steelmaking, including the demand for high-performance materials in aerospace and defense applications and niobium's emerging role in electric vehicle batteries for fast-charging applications.

A niche within the broader niobium market is niobium C-103, a complex refractory alloy composed primarily of niobium, hafnium and titanium. While this alloy currently represents a small portion of the overall market volume, it holds a critical, high-value position. C-103 is specifically engineered for extreme high and low temperature applications where its light weight, excellent strength and resistance to both extreme heat and cryogenic temperatures are essential. Its primary uses are in advanced aerospace and defense applications, including rocket engines, jet engine afterburner flaps and hypersonic vehicle components. We play an important role in the production of C-103 through our extrusion services. Through our collaboration with Taniobis GmbH, a leading global producer of tantalum and niobium, we also sell and print C-103 powders. We are in the development stage of an advanced, lower-cost C-103 alternative called FS85, which could help drive broader aerospace adoption of advanced niobium alloys. We have several large customers for pure niobium mill products which we extrude, forge, and roll at our Ohio and Michigan facilities (see "*— Facilities*" below). We believe the market for niobium products is approximately $500 million today.

*Extrusion and Rolling*

We believe that extrusion and rolling materials for others, called "tolling" in the industry, represents a significant market opportunity for us. We are a "go-to" source for the processing of high-performance metals and alloys for third parties, who then use these materials in their defense, energy and industrial applications. Our processing equipment includes one of only two operating refractory metal 5,500-ton extrusion presses in the United States, a rotary forge, and hot rolling capabilities for plate, sheet and foil. These specialized production assets enable us to provide essential services to customers requiring the shaping of difficult-to-work Critical Materials in addition to tungsten and molybdenum, such as Inconel<sup>®</sup>, Monel<sup>®</sup>, beryllium, niobium, and the C-103 alloy. By offering these capabilities, we believe we are positioned to serve as a vital link in the supply chain for the U.S. military, including initiatives such as the collaboration with the U.S. Navy, the Maritime Industrial Base Program and BlueForge Alliance to develop and deploy assets utilizing these superalloys. These capabilities also permit us to provide specialized services to other metals companies that lack comparable in-house capacity.

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This market is protected by a high barrier to entry due to the capital-intensive nature of the equipment and the specialized expertise required to process these materials for demanding applications in aerospace, defense and beyond. Because neither this specialized manufacturing equipment nor the expertise to operate it are widely available, we can provide a value-added service critical to our customers' success.

#### High-Power Microwave
Based on The Business Research Company, the global total addressable market ("TAM") for microwave devices is $7.5 – $8.0 billion when microwave products of all frequencies and markets are considered. We estimate our SAM related to the High-Power Microwave components and systems we produce is approximately 50% of the market and exceeds $3.5 billion globally. This SAM includes key segments, like food processing, radar, Defense, Medical, Semiconductors, plasma generation, green hydrogen production, fusion research and research and development, and is expected to grow at a compound annual growth rate of approximately 8.0% through the end of the decade.

We believe our product portfolio, ranging from core building blocks like circulators and high-power RF loads to complex assemblies and high-power generators, positions us to serve as a critical partner across diverse sectors including the Aerospace, Defense and Government, Industrial, Medical, and Energy industries. These industries rely heavily on High-Power Microwave systems, where our products are essential.

#### Our Competitive Strengths

#### Sole U.S.-owned Supplier of Highly Engineered Critical Materials Components for a Wide Range of Essential Industries
We are a leading producer of highly engineered Critical Materials components and High-Power Microwave products, supplying critical components and systems which underpin performance and reliability in essential industries. Our products and services are critical to multiple industries including the Aerospace, Defense and Government industry, which often require a U.S.-based supplier due to potential national security concerns. Our operations are organized to control production from start to finish and promote highly consistent quality, non-PRC sourced tungsten and molybdenum supply chain security, and cost efficiency. The markets we participate in are highly fragmented, and our positioning as a U.S.-based supplier creates a competitive advantage. With increasing emphasis on secure supply chains and advanced materials, we believe our differentiated capabilities and strategic positioning will enable us to capture sustained growth opportunities. The PRC dominates global tungsten supply producing approximately 80% of tungsten concentrate and a significant share of molybdenum while at the same time imposing escalating export controls on both these materials since February 2025. On October 26, 2025, the PRC's Ministry of Commerce reiterated plans to continue stringent export license restrictions on tungsten into 2026 – 2027. The PRC subsequently reversed this position on November 10, 2025 and suspended the export restrictions for one year. On January 6, 2026, the PRC's Ministry of Commerce imposed an additional ban on the export of all 'dual-use' items, including tungsten and molybdenum, to Japan for military applications. The oscillating export restrictions and subsequent suspension of these restrictions highlight the continuing market instability which we intend our direct sourcing strategy to mitigate.

#### Vertically-Integrated and Scaled Operations Supported by a Dedicated Engineering Team
Our manufacturing operations for both Critical Materials and High-Power Microwave products are vertically integrated, enabling us to support our customers from engineering to production. Our technical expertise positions us to serve customers who need us to deliver scaled manufacturing of highly engineered components for the most demanding applications. Our dedicated team of multi-disciplinary engineers, who support our comprehensive in-house design and manufacturing capabilities, work collaboratively with customers early in their design cycles. Early participation and cooperation with customers often leads to the creation of difficult-to-replicate solutions, which then become integrated into our customers' underlying processes, making us the "supplier of record" for certain projects and providing a strong barrier to entry for our current or would-be competitors.

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#### Difficult-to -Replicate Asset Base Paired with Specialized Production Capabilities
Between our two divisions, we operate seven facilities totaling more than 600,000 square feet, which are dedicated to engineering, design, testing and manufacturing. Over the last few decades, our CMC division, through Elmet Tech, and our EMP division, through Microwave Techniques, have each developed their manufacturing base as one of their most important assets. Given the significant amount of investment required to create our manufacturing base as well as the scale of our operations, the cost to replicate what we own and operate creates a high barrier to entry, especially for U.S. competitors. We estimate that replicating and implementing our manufacturing base would require significant time and capital investment, with an estimated replacement value in excess of $1 billion. Both of our divisions offer specialized services critical to key customers and give us a path to winning in a competitive environment. For example, the 5,500-ton extrusion press in our Coldwater facility is only one of two operating refractory metal presses in the United States capable of shaping the types of difficult-to-work materials that are essential to the U.S. military's supply chain. We also have a spare, currently not operating, extrusion press in storage at our Coldwater facility. Within our EMP division, we are the only U.S.-owned and operated provider of 200kW magnetron microwave generating apparatuses, which are essential to our industrial processing customers. Combined, we believe our established manufacturing base and specialized production capabilities create a significant competitive advantage.

#### Experienced Management Team with Proven History of Executing Successful Mergers and Acquisitions
Our leadership team has a strong track record of pursuing growth and driving long-term value through strategic acquisitions and investments. Since 2000, we have successfully acquired and integrated seven different businesses in the Critical Materials and High-Power Microwave technology sectors. These acquisitions have added production capabilities and technologies which complement our product offerings and expand our market reach and exposure. Our acquisitions have played an integral role in shaping our business, and we expect to continue evaluating strategic opportunities in the future. We believe our track record, expertise and strategy help us supplement organic growth and maintain our competitive positioning as a leading provider of mission-critical components and materials for essential industries.

#### Our Attractive End Markets

#### Aerospace, Defense and Government
Critical Materials and High-Power Microwave components play a critical role in missiles and missile systems. Our products are impacted by broader defense spending, which is influenced by the geopolitical climate and security concerns. Conflicts in Ukraine, the Middle East, and other regions have heightened geopolitical tensions, driving an increase in global military spending. Between 2015 and 2024, military spending globally increased 37% from approximately $2.0 trillion to $2.7 trillion. Calendar year 2025 represented the single largest increase in global military spending since the end of the Cold War. In calendar year 2025, multiple countries increased their defense budgets to modernize their forces and replenish munition stockpiles. For example, in February 2026, the U.S. Congress passed The Fiscal Year 2026 Defense Appropriations Act, which includes approximately $839 billion allocated for new defense spending, an increase of 8% from fiscal year 2022. Of this, approximately $13 billion was allocated to enhance U.S. missile defense systems, where our products and solutions play a significant role. Our products are incorporated into at least seven key U.S. missile systems or related land-based missile support systems, including the PAC-3 and Trident II (D-5) missile systems. The European Union also increased their defense spending appropriations by 45% from €262 billion in 2022 to approximately €381 billion in 2025.

Our Critical Materials play a vital role in the Aerospace industry. Tungsten and molybdenum's shielding ability, strength, high melting points and durability enable a product to be used in various aerospace components for rockets and satellites, from electromagnetic pulse and heat shields to propulsion motors. The Aerospace industry is experiencing rapid growth because of increased demand for reliable and high-speed communication networks in space, involving both satellites and rockets. Major commercial space companies such as Space Exploration Technologies Corp and Blue Origin Enterprises, LP have invested billions of dollars to develop reliable broadband networks using low Earth orbit ("LEO") satellites launched from larger rockets and we believe this trend will continue. According to a March 2025 report by Goldman Sachs, over the next five years, satellite operators are projecting the launch of approximately 70,000 LEO satellites for various applications, representing an increase in total LEO satellites of approximately 600% from year-end 2024 totals. This growth could represent a significant advantage for suppliers of Critical Materials and High-Power Microwave components.

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#### Industrial
High-Power Microwave systems play an important role in multiple industries such as food processing, chemicals and plastics. At the most basic level, these machines heat and dry different types of materials. In the food processing industry, industrial microwave systems are used in various applications including cooking food, drying grains and pasteurizing liquids. These are critical processes helping to preserve food quality and improving food safety. In the chemicals industry, industrial microwave systems are used in multiple processes including drying, curing, heating, reacting, sintering and catalyzing. These processes are relevant for several products such as inks, resins, foams, coatings, polymers, adhesives and composites, which are critical to a wide range of other industries. In the plastics industry, industrial microwave systems are used to break down plastic waste into valuable byproducts. These byproducts can then be used by manufacturers to create new products from recycled plastic. We expect demand for our industrial microwave systems to grow with increased U.S. industrial activity associated with reshoring, as well as renewed focus on sustainability and efficiency in process technologies provided by our products.

#### Medical
Critical Materials, including tungsten and molybdenum, are used in widely distributed and specialized medical equipment, such as X-ray machines and CT scanners. Our Critical Materials products provide high-density shielding without the negative risks of lead contamination. These imaging tools are instrumental in the diagnosis of potentially life-threatening or debilitating illnesses. Our High-Power Microwave components are also used in oncology treatments, including those that incorporate equipment containing linear accelerators for external beam radiation or other linear particle accelerator systems. KPMG forecasts the medical device industry to steadily grow at a rate of 5% over the next five years, reaching $800 billion in total sales by 2030. According to the National Library of Medicine, approximately one in three of all adults globally suffer from multiple chronic conditions. In the United States alone, the National Institute for Health Care Management Foundation estimates that approximately 60% of Americans live with at least one chronic disease. Multiple U.S. government agencies, including the Centers for Disease Control and the U.S. Food and Drug Administration, have also reported a steady increase in the prevalence of chronic diseases and expect this trend to continue. Two of the most common chronic diseases in the world are heart disease and cancer, both of which often require specialized medical equipment to diagnose. These diagnostic tools typically contain Critical Materials like tungsten and molybdenum in several key components due to their unique qualities. Given the increased percentages of aging Americans and the rising prevalence of chronic diseases, and due to the lack of viable alternatives, we believe the Medical industry will continue to grow and use our Critical Materials and High-Power Microwave products in their diagnostic and treatment equipment.

#### Semiconductors and Electronics
Of the Critical Materials, tungsten and molybdenum are essential to semiconductor manufacturing and the broader electronics market. Both of these metals are used in components for front-end processing equipment in the semiconductor manufacturing process, covering ion implantation, metal-organic chemical vapor deposition, chemical vapor deposition ("CVD"), physical vapor deposition, and molecular-beam epitaxy tools. Hundreds of processing steps are required in the semiconductor manufacturing process, many of which occur within reactors exposed to harsh thermal and chemical conditions. Some of our High-Power Microwave components are part of plasma generating systems used in cleaning various CVD chambers and Etch system pumping lines in the semiconductor manufacturing process. As a result, the performance characteristics of equipment components are incredibly important. Tungsten and molybdenum's high melting points and superior corrosion resistance enable systems that incorporate components made from these Critical Materials to withstand extreme environments, resulting in increased system uptime and reduced preventative maintenance. Due to the computing power required for new technologies, particularly artificial intelligence, the Semiconductor market continues to grow at an exponential pace. Following decades of decline in U.S. manufacturing capacity, federal and state government incentives and research investments have led to a renewed commitment from the public sector in strengthening U.S. leadership in the Semiconductor sector. As part of the broad revitalization effort of the U.S. chip ecosystem, in the twelve months leading up to July 2025, companies have invested more than half-a-trillion dollars in domestic semiconductor development and production. This massive investment is expected to triple U.S. chipmaking capacity by 2032. Overall, we believe the need for new semiconductor chips required to support advanced technologies and additional U.S. semiconductor manufacturing capacity coming online over the next several years will further drive demand for microwave generated plasma cleaning systems and both molybdenum and tungsten metals.

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#### Energy
Processing nuclear fuel requires special materials which can shield against radiation and withstand high temperatures and corrosion damage. Molybdenum has a high density and melting point and is corrosion resistant, making it an ideal material for containers used in nuclear fuel sintering, which is a high-temperature process which turns uranium oxide powder into fuel pellets. Fuel pellets from the nuclear fuel sintering process are used in fuel rods which power nuclear reactors. The United States is currently the world's largest producer of nuclear power. The projected expansion of data centers, including those supporting artificial intelligence development, and electrification across multiple industries has been widely reported. To keep pace with future power demands and reach net-zero emissions by 2050, the United States is actively investing in new nuclear capacity. Morgan Stanley estimates global investments in nuclear energy components, from fuel rods to the construction of nuclear power plants, will reach $2.2 trillion through 2050, up from initial forecasts of $1.5 trillion. To meet the needs of data centers, multiple nuclear reactors in the United States are being restarted. New data centers will require significant power, which has also resulted in major technology companies signing agreements with utility companies to supply nuclear power for their data centers. As a result, we expect the renewed focus on nuclear energy to drive demand for our molybdenum products.

Additionally, microwave components and tungsten play an important role in fusion energy. Tungsten's high melting point and thermal conductivity make it a key material in fusion energy research. Tungsten has the highest melting point of any pure metal, allowing it to withstand the intense heat of the fusion process. It is used as the primary material for the inner walls of fusion reactors as they are exposed to ultra-high temperature plasma. Some of our High-Power Microwave components are critical to fusion reactors because microwaves are used to heat plasma to extreme temperatures. The intense performance requirements for these types of systems mandate that these components be highly engineered. The anticipated expansion of nuclear power to feed the rapid growth in new data centers has also spurred the pursuit of fusion-based technologies as a clean, sustainable energy source. The United States has seen significant private investment in fusion research during 2025, as nearly 30 developers are actively researching and developing commercially viable technologies. In the twelve months leading up to July 2025 alone, the fusion industry raised more than $2.5 billion in both private and public funding, which is the second highest annual fusion funding amount recorded. Some of the largest technology companies on the planet, including Google LLC and Microsoft Corporation, are investing billions of dollars in fusion research as they explore additional potential sources of power for their data center projects. For example, in June 2025, Google LLC partnered with Commonwealth Fusion Systems LLC ("Commonwealth") to purchase 200 megawatts of power from Commonwealth's first proposed commercial fusion plant, which is enough energy to power 200,000 average American homes. We believe the significant investments being made in fusion research will drive increasing demand for our tungsten products and High-Power Microwave components.

#### Our Growth Strategy
We are the sole U.S.-owned vertically integrated producer of tungsten and molybdenum in many of the programs in the market segments we serve. In addition to the fundamental products we produce and processes we control, such as through extrusion and rolling, we are one of a handful of companies in the United States capable of Critical Materials and RF engineering, manufacturing, capacity and range of capabilities required to support multiple demanding applications. Our inclusion in over 100 current defense programs including aircraft, missiles, electronics and extruded products for submarine components underscores our strategic importance. We believe the accelerating U.S. reshoring efforts and increasing defense spending by the DoW supports our growth prospects.

Our growth strategy is built on three tiers: (i) capitalize on the development and infrastructure we own and operate; (ii) use our technology to develop critical products and services for our customers in response to their needs; and (iii) identify select acquisitions which supplement the expertise we currently possess for the markets we serve. We provide products and services for the high temperature, high power and uniquely engineered material needs of our customers and their end users.

#### Capitalizing On Development and Infrastructure
We believe that we are well placed to take advantage of current economic and geopolitical tailwinds through our substantial investments in research and development in our key industries. With the encouragement of the DoW, in the last six years, we have invested more than $41.8 million into upgrading our manufacturing capabilities. The

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U.S. government and other NATO governments have repeatedly articulated the current need to restock their supplies of various munitions and other military hardware. According to The Guardian, as of July 2025, the United States had only 25% of all Patriot missile interceptors needed for the Pentagon's military plans. As of January 2026, the DoW has also established a new acquisition model with Lockheed Martin to more than triple PAC-3 Missile Enhancement Segment production. We believe this will lead to increased defense spending by these governments aggregating into billions of dollars. We have experience in providing critical components for these types of programs and have confidence we will be able to leverage our experience into similar new programs. Through our CMC division, we provide approximately $1,800 of molybdenum content per Patriot missile and $4 million of tungsten in the small prototype leading fusion reactor unit (larger units will contain three times the tungsten). Our supply of molybdenum content for Patriot missile production is expected to triple over the next several years. Our EMP division also supplies approximately $28,000 of waveguide radar components per Patriot missile tracking vehicle, and approximately $900,000 of specialty High-Power Microwave components per fusion reactor unit to power the ignition process. Accordingly, as the United States and other NATO governments restock their conventional military capacities and develop new defensive systems and as additional investments are made in nuclear energy reactors, we believe we are well-positioned to capture additional business.

We are currently included in approximately 100 different U.S. defense systems and our sales team is highly focused on working with the DoW on new programs. We believe the increasingly complex research at national laboratories such as Fermi and Los Alamos and others focused on energy, pharmaceutical, fusion and high energy physics research presents other significant opportunities. The need to electrify manufacturing processes to reduce reliance on carbon-based energy is driving increased investments in equipment, such as High-Power Microwave generators, necessary to explore these alternative technologies. Both High-Power Microwave components and Critical Materials play a substantial role in fission and fusion energy, as well as other basic energy systems. For example, research is continuing to progress regarding the use of High-Power Microwave systems in connection with green hydrogen energy production. Our components are well placed to take advantage of projected growth in both traditional and cutting-edge energy research and production. We are already a trusted supplier to advanced research institutions, and many of our components are already integrated into the operations of their research efforts. Our experience with Critical Materials, essential to the exploration and exploitation of space, will also benefit us as space operations increase. These Critical Materials provide dense shielding material for the protection of the delicate microwave components on satellites and mission sensitive aerospace technology.

#### Leverage Our Expertise and Experience
Our expertise with molybdenum and tungsten has positioned us to leverage this experience with other Critical Materials. We have established a number of strategic relationships with non-PRC sources of highly sought after materials such as niobium, C-103, a high-performance niobium alloy comprised of niobium, hafnium and titanium, FS85, a high-strength niobium alloy comprised of niobium, tantalum, tungsten, and zirconium, and others. All these materials show significant promise in aerospace and other similar demanding applications. We believe our ability to source these materials, extrude them in large billet form, forge them into workable form factors, and finally, expertly machine the forged materials creates a high barrier to entry for potential competitors. As these specialized materials become further integrated into aerospace, military and energy use, we believe we can meet future demand. We expect to be able to leverage the anticipated growth in the use of these materials by being able to increase production of our products, thereby driving both our sales and margins. For example, we believe that our flowable alloys and pure metal powders are an advantage that will provide another source of high value products as additive manufacturing, such as 3D metal printing, matures and becomes ubiquitous. Rare earth minerals and specialized magnets, which are incorporated into most microwave systems, are also growing markets where we believe our engineering experience and know-how gives us a competitive advantage. Our engineers have the expertise to help our customers design products and components using these materials and specialized magnets to tune their High-Power Microwave components, making them more efficient and reducing energy losses, providing custom engineered manufacturing solutions to meet our customers' specific, and often first time, needs.

#### Continuing to Develop Specialized Technologies For Our Customers
Our research and design capabilities in both metallurgy and microwave technology enables us to build lasting relationships with our customer base. The customized solutions that we provide are difficult to replicate or reverse engineer, which establishes a degree of end user loyalty for, and reliance on, our products. Since our components are often integrated into customer designs, the commercial value of the components increases over time, which also promotes long-term growth and stability in our orderbook.

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Our ability to design specific alloys for discrete functions is also a significant competitive strength. For example, our work in additive manufacturing has resulted in 20 U.S. and international patents and two pending patent applications grouped into six patent families addressing multiple aspects of successfully printing Critical Materials, such as tungsten, tungsten heavy alloy and other Critical Material-based alloys. Additive manufacturing using laser-based techniques requires a deep understanding of how Critical Materials melt and solidify. The printing parameters and alloy chemistry of successful alloys must be designed to minimize cracking and porosity which would degrade the physical properties of the material. By using materials science-based thermodynamic models and leveraging the more than seven decades of Critical Materials consolidation experience of our CMC division, we have designed experiments that have resulted in materials such as C-103 or FS85 meeting or exceeding the properties of traditionally processed materials. Likewise, our EMP division has developed an important improvement in current technology by reducing tile load failures in tile load components needed in heat distribution in High-Power Microwave systems. We have also successfully advanced the technology needed to produce 200 kilowatts of combined microwave generation, providing significant high-power options to the market.

#### Identifying and Integrating Select Acquisitions
We have successfully acquired and integrated a number of companies, and we believe we have a demonstrated track record of adding capabilities to supplement our expertise or fill in gaps. For example, in late 2023 we acquired H.C. Starck's molybdenum and tungsten operations in the United States, supplementing our existing operations and vastly increasing our production capacity. Also, in 2023, we acquired Valvo in Hamburg, Germany, expanding our reach in 2.45 GHz, WR284 (R32), WR340 (R26), and WR430 (R22) waveguide components and technology, and also allowing us to expand sales and opportunities in the United Kingdom and European Union. In November 2025, we closed a small tuck-in acquisition of Symphony, adding engineering capabilities, a product line and new customer relationships in our EMP division. We have a rigorous strategy of finding complementary materials and products to build out our capabilities, particularly in serving our key customers and industries. We believe there are many opportunities available in the market for both Critical Materials and High-Power Microwave. Our metrics generally require any potential acquisition to add market scope and be positioned to increase margins and profitability once they are integrated into our operations. We will continue to seek out acquisitions to enable us to serve our existing customers and the expected needs of new customers.

#### Our Products and Services

#### Critical Materials
The Critical Materials we produce are commonly known as refractory metals. Refractory metals are the family of metals which have the qualities of immense heat resistance and density. Due to the heat resistance and extremely high melting point of these metals we start making them from powder form then sintering, swaging and hot working them into usable form factors. Sintering is the process which makes our powdered materials into a solid or mass by heating the materials and pressing them under 30,000 to 60,000 pounds per square inch. Swaging is a forging process in which the molybdenum and tungsten are altered using dies into which the item is forced or using hammers to consolidate the material. Our Critical Materials expertise covers a wide array of pure metals, including tungsten and molybdenum in their pure form, as well as alloys such as TZM (titanium zirconium and molybdenum), Mo-La (molybdenum and lanthanum), MoTa (molybdenum and tantalum), WHA (tungsten heavy alloy), WK (tungsten potassium), HCT (high quality potassium doped molybdenum), and niobium alloys.

We have the capacity to produce specialty and engineered powders, both flat and round mill products made from these refractory metals in a variety of sizes and form factors, and we have extensive machining capabilities which allow us to produce fully fabricated finished components. Our sourcing relationships and careful manufacturing process management for our high-quality metal powders are the foundation of these products.

Our Critical Materials products cover a wide range of uses for key industries, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Powder and Alloys*. Engineered alloys, additive manufacturing powders and plasma densified powders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Machined and Engineered Parts*. Rocket nozzles, shielding, heat sinks and studs, diodes, munitions and shape charges, military penetrators, military fragmentation, aeronautical balance weights, nuclear processing boats and high reliability diodes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Plate and Rod*. Shielding, vacuum furnace components and new battery technology.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Fine Wire*. Included in medical robots and aeronautical windshields.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Tolling and Extrusion*. Custom shapes, bars and tubes.

Our engineering and operation teams, partner with our customers to create custom solutions to meet their often-demanding requirements. We believe providing our customers with direct access to our engineering teams is a key comparative advantage, allowing for a more efficient process which also results in higher customer satisfaction.

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#### High-Power Microwave
We provide our microwave products in three primary categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Microwave and RF Components*. Passive RF and microwave devices, frequencies using sizes mostly from WR90 (0.9 inches wide) to WR2300 (23.0 inches wide), solutions for demanding applications, standard and custom RF components, and waveguide, coaxial and UHV (ultrahigh vacuum) products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *High*-Power *Solutions*. Innovative solutions services, advanced research and development for new applications, high-power transmission equipment, components, assemblies and systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Microwave Systems*. 75kW to 200kW generators, single and multi-mode systems, continuous tunnels and batch ovens, solutions for tempering, heating and drying and industrial microwave processing expertise.

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#### Sources and Availability of Raw Materials
Unlike many other businesses who deal in Critical Materials, we are not dependent on the PRC for our tungsten or molybdenum supplies; however, we are dependent on a limited number of large suppliers of our raw materials to maintain a non-PRC sourced supply (see "*Risk Factors — We depend on a limited number of suppliers for our raw materials, and the loss of one or more of these suppliers could disrupt our operations, increase our costs, or otherwise adversely affect our business*"). Approximately 85% of the world's tungsten is currently mined in the PRC, which has recently begun to implement highly restrictive licensing and export controls on its tungsten products. In order to move away from PRC supply, starting in 2015, we began sourcing our tungsten concentrate from Masan Tungsten LLC ("MTC") in Vietnam.

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In addition, in 2024, we executed a mutually renewable five-year offtake agreement with EQ Resources Limited, an Australian-based mining company ("EQR"), for tungsten concentrate from its Saloro mine in Barruecopardo, Spain. This agreement provides us with a stable non-PRC-sourced supply of tungsten concentrate to use in our facilities. To further cement this relationship, we hold a very small ownership interest in EQR and have been granted options that are exercisable through November 2026 to purchase an additional interest in EQR that would not represent a material ownership position. If our demand cannot be met by MTC or EQR, we are able to purchase from various North American sources on the spot market. Currently, over 99% of our tungsten needs are sourced outside of the PRC.

Workable tungsten is created through a multistage process which results in blue tungsten oxide ("BTO"). Our tungsten concentrates from both MTC and EQR are processed into BTO at an MTC plant in Vietnam. Some of this BTO then is processed into pure tungsten power, or one of many alloys, at our Lewiston facility, and some is processed at an H.C. Starck plant in Sarina, Canada. We are currently installing a brand-new tungsten furnace in our Coldwater facility which we expect to be complete and begin manufacturing operations in the first quarter of 2027. This will allow us to process most of our BTO into pure tungsten powder in-house, rather than relying on third parties.

The process to convert molybdenum into workable material is similar to tungsten's process. For our molybdenum needs, we receive a majority of our ammonium dimolybdate ("ADM") from Freeport-McMoRan Inc.'s Climax mine in Colorado. We then reduce it into pure molybdenum or one of many alloys in our reduction furnaces in Maine and Michigan. The remainder of our ADM needs are supplied from Chile by Molymet, which also produces rhenium. We have long-term contracts with both Climax and Molymet for this supply. The other Critical Materials in our stable of products, including niobium, C-103 and FS85, are sourced with non-PRC partners, including Taniobis, with whom we recently signed a mutual Strategic Agreement.

While the PRC's imposition of export controls and tariffs on tungsten and molybdenum do not directly affect the materials we buy, any restriction of global supply affects the availability of, and prices we pay for, our raw materials. Artificial shortages occurring from export restrictions or outright prohibitions increase the costs we pay for materials. Although we have an offtake agreement in place to stabilize our tungsten supply, this agreement is tied to global market prices and is affected by higher prices that arise from PRC policies limiting the supply of these refractory metal materials. As a result, continued and additional restrictions through PRC policies could substantially influence our costs. We were not affected by these policies in 2024, but we currently estimate the additional costs resulting from avoiding PRC restrictions and tariffs through direct sourcing will require us to increase borrowing and carrying costs in 2025. See "*Risk Factors — Availability of, and volatility in the prices of, raw materials and energy prices and our ability to pass along increased costs to our customers could adversely affect our results of operations*" and "*Risk Factors — Geopolitical instability due to the ongoing military conflicts between Russia and Ukraine and in the Middle East and the increasingly strained relationship between the United States and the PRC have created a period of economic and capital market uncertainty. Our business, financial condition and results of operations could be materially adversely affected by any negative impact on the global economy and capital markets resulting from the conflicts in Ukraine and the Middle East or any other geopolitical tensions.*" for a more detailed discussion of these risks.

Our EMP division uses aluminum, copper, brass, invar and other metals from distributors of various mill products in the United States and Germany, with the majority of mill products purchased from U.S. suppliers. We source ferrite materials primarily from U.S.-based suppliers. Approximately 70% of the magnets we use in our equipment come from PRC sources with the balance coming from European manufacturers. See "*Risk Factors — Availability of, and volatility in the prices of, raw materials and energy prices and our ability to pass along increased costs to our customers could adversely affect our results of operations.*" The majority of our microwave division's electronics, which are used in the assembly of microwave systems, are also ordered from various catalog houses and/or manufacturers in the United States.

#### Customers
We have vast experience in designing, building and executing challenging projects and are known for these skills in the industries in which we operate. With decades of experience in Critical Materials, High-Power Microwave technology and vertical integration to control the manufacturing process, our customers rely on us to help them go from design to final manufacturing of their specific requirements. Our customer base includes diverse industrial users across our key industries ranging from global enterprises to mid-market organizations and government entities. For the year ended December 31, 2025, no one customer accounted more than 10% of our total revenue. See "*Risk Factors — We are* 

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*dependent on a limited number of large customers for current and future sales. The loss of any of these customers or the loss of market share by these customers could materially adversely affect our business, financial condition, results of operations and cash flows.*"

We have multiple customers in all of the following industries:

---

| | | |
|:---|:---|:---|
|  Commercial Aircraft | Nuclear and Nuclear Fuel Processing (Fission) | Metals and Mining |
|  Commercial Space | Nuclear Fusion and Fusion Research | Food Processing |
|  Commercial Radar | Hydrogen including Green Hydrogen | Lighting/LED applications |
|  Defense Aircraft | Carbon Capture | Furnace shielding |
|  Defense Space | Oil, Gas and Coal | Industrial Plasma — Diamonds, etc. |
|  Defense Radar and Electronics | Semiconductor Capital Equipment OEM's | Industrial Drying (Medical, Building Components) |
|  Defense Rockets and Missiles | Non-DoW studs, heat sinks, battery parts, power semi | Private research and development supporting DoW and US and European energy projects |
|  Defense Warheads and Munitions | Sputtering Targets | Universities |
|  Defense Ships/Subs | Glass production | International Research Labs |
|  Department of Energy Government Labs | Chemicals |  |

---

We supply components to a broad variety of defense contractors, national laboratories and semiconductor and medical equipment manufacturers, and our components are found in over 100 DoW defense projects, including the PAC-3, Trident II (D-5), Patriot, Aegis, Javelin and Hellfire missile systems, as well as over 95 government sponsored energy research facilities and national lab programs such as Fermi, Los Alamos and Oak Ridge National Laboratory.

#### Sales and Marketing
We primarily employ a direct sales model to sell into and expand within our customers' organizations. Our 25-person sales force has extensive experience, industry knowledge and expertise in our target markets. Our Executive Vice President, Corporate Strategy directs our general sales strategy and marketing in coordination with the Chief Sales Officer at our CMC division and the Director of Sales for Components and the Director of Sales for Systems at our EMP division. Because of the highly technical nature of our products, each of our divisions employs engineers to work with or as a sales contact for our customers. For both our CMC and EMP division, the sales teams are divided into market segments, with each covering specific product or end markets. Our sales and marketing organization engages with prospective customers across multiple in-person virtual channels and engages with them using trade conferences, application guides, whitepapers, presentations and online content to familiarize them with our products and capabilities. Our marketing department is centralized at the parent level and develops all marketing materials for our operations, including all website development and optimization, ad placement and strategic direction. This provides consistency in messaging and thematic presentation.

#### Research and Development
We conduct research and development primarily for Defense, Medical, Semiconductor and Energy, and weather and surveillance applications. Our 28-person research team is comprised of engineers and metallurgists, including three individuals holding PhDs, and we consider our research team to be among our greatest strengths. Research and development efforts are generally focused on specific customer challenges but also include research and development of new products based on market analysis and customer demand. In 2025, we devoted approximately

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1.7% of revenue to research and development. Each of our facilities has a research and development team that works closely with sales, process engineering and operations to support product development that matches the site's core competencies. Although products span multiple sites requiring close collaboration between the site teams, our research and development team regularly reviews the projects, together with sales and marketing personnel, to verify that they align with our strategy and priorities.

#### Critical Materials and Manufacturing Technologies
We have eight engineers and metallurgists dedicated to pursuing the development of metal processing methods to achieve the appropriate mechanical properties necessary for each particular Critical Materials application. For our defense-related customers, we focus on research and development of tungsten, tantalum and molybdenum alloys for existing and new missile, satellite, ordinance and gun systems. In the Semiconductor market, we have developed processing methods resulting in ultra-pure molybdenum and tungsten materials with purity in excess of 99.999%. These advances support the continued size reduction of integrated circuit devices. For example, advanced chip foundries are increasing their use of molybdenum in their production because molybdenum can be deposited without a chemical barrier layer that takes up valuable space and because molybdenum has lower resistivity compared to copper or tungsten at the small sizes required for semiconductor production. For medical applications, we are developing improvements in the properties and microstructure of fine tungsten wire products used in the rapidly growing field of surgical robots.

Our research and development strategy is centered on both continuous product advancement and future commercial adoption. Examples of current research projects with long-term implications include:

---

| | |
|:---|:---|
|  **Industry/Type of Product** | **Research & Development Focus** |
|  Additive Manufacturing/3D printing | • Molybdenum-, tungsten- and rhenium-based powders |
|  | • Tantalum and niobium-based parts |
|  Defense and Munitions | • Tungsten heavy alloy cubes and spheres for fragmentation warheads and commercial ammunition |
|  | • Saboted Light Armor Penetrator (SLAP) penetrators |
|  Semiconductors | • 99.995% pure molybdenum sputtering targets |
|  | • Pure tungsten tooling for quartz processing |

---

#### High-Power Microwave
Our EMP division has a 24-person engineering staff focused on continuing improvement of waveguide transmission lines and passive RF components across a wide frequency range and product portfolio, high-power magnetron generators and applicators as well as medium power RF components. Leveraging our robust engineering team, we work to expand our combined product line as well as to find niche products or customer requirements which present market opportunities. Our recent developments include: (i) using generator control systems and monitoring components for intelligent passive components; (ii) designing passive components to complement and extend generator system performance and capability; and (iii) utilizing thermal analysis tools to extend the power range of historic product lines.

#### Intellectual Property
Our Intellectual Property ("IP"), including patents, copyrights, trademarks, and trade secrets, is important to our business, and we actively seek opportunities to leverage our IP portfolio to promote our business interests. Our expertise and decades of engineering experience provide the competitive edge we rely upon to execute our business plan. Accordingly, we maintain stringent controls over our trade secrets and view these trade secrets as the critical component of what enables us to perform in each segment in which we operate. We also actively seek to monitor and protect our global IP rights and deter unauthorized use of our IP and other assets. Protecting IP rights can be complex because of the absence of consistent international standards and laws.

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We believe we have a rigorous patent review process and pursue and maintain patents in the United States and other countries where we believe pursuing and maintaining patent protection is in our best commercial interests. The laws of some foreign countries do not protect IP rights to the same extent as U.S. laws. Currently, we are pursuing patent applications for 3D printing (additive manufacturing) of Critical Materials and for High-Power Microwave technology applications. Because of our rapid innovation and product development and the comparatively slow pace of patenting processes, our products could be obsolete before the related patents expire or are granted. However, we believe the duration and scope of those patents we do file are sufficient to support our business. As a whole, we do not believe our business is not dependent on any one particular patent or IP right. We currently hold issued patents in six patent families comprised of approximately 20 patents relating to additive manufacturing. While we do not believe our patents are currently material to our business, we believe our patents related to additive manufacturing may hold potential future value due to the potential reductions in cost and increased productivity that could result from additive manufacturing processes. We also have two pending patent applications for High-Power Microwave technology applications which we also believe are promising. Most recently, in September 2025, Elmet Tech was awarded U.S. Patent No. 12,359,290 for Tungsten Heavy Alloy Powders for additive manufacturing. This technology addresses challenges in producing highly pure, flowable powders that retain their shape and properties under extreme processing conditions. Key features include tailored alloy compositions, improved powder morphology and superior densification.

We periodically register federal trademarks, service marks and trade names which distinguish our product brand names in the market. We also monitor these marks for their proper and intended use. In addition to our patent portfolio, we have procedures in place to protect the trade secret processes and formulas we have developed to produce our specialty products.

We rely on non-disclosure and confidentiality agreements to protect our confidential and proprietary information, including business strategies, unpatented inventions, trade secrets, designs, and process technology. We closely monitor our confidential and proprietary information and make it available only to those employees whose responsibilities require access to the data.

Rights in trademarks, service marks and trade names do not have expiration dates. Of those rights, we have four federal trademarks registered at the U.S. Patent and Trademark Office. The registrations have technical expiration dates, but each is renewable indefinitely.

#### Our Technology
Our products require the application of sophisticated technological techniques in metallurgy, electronics, RF engineering and mechanical engineering. Critical Materials use technologies including powder metallurgy, powder production, consolidation such as compaction, sintering, 3D printing and arc melting. We also apply and test various thermomechanical processing methods including extrusion, forging, swaging, rolling and wire drawing to develop new products and manufacturing process improvements. Iterative and careful control of these processes results in material which meet the very specific chemical, mechanical and physical properties required by the end customer application. We use computational modeling and design software to aid in the efficient application of the downstream fabrication technologies we employ to produce the final product.

In the design of our High-Power Microwave components and products, we use the latest RF, thermal, stress and magnetic simulation tools to effectively develop robust designs for new or emerging technologies. We develop proprietary methods and equipment to maintain our status as the sole supplier of microwave components for defense contractors and national laboratories for certain projects or a premier supplier for certain custom or high reliability microwave components and assemblies, including certain precision waveguide, flexible waveguide, high vacuum applications and high-power RF and microwave products.

#### Competition
The market for our products is highly fragmented, with a very small number of scaled competitors. As a result, we have very few direct competitors which provide the breadth of products, solutions and expertise we are able to offer our customers. However, given the market fragmentation, we face competition from different competitors across individual products and applications. Competition within our product offerings ranges from divisions of large public corporations to small, privately held companies with singular capabilities that lack infrastructure and capacity to scale. In each of the industries in which we compete, our competitive position is defined by our capabilities, strategic focus on high-value applications and our status as a U.S.-based, vertically integrated manufacturer.

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#### Critical Materials
Our primary non-PRC competitor for Critical Materials is Plansee SE ("Plansee"), a large, global corporation headquartered in Austria. Plansee is a strong competitor due to its scale and international presence. Plansee operates a large U.S. tungsten powder facility and a fabrication facility and imports most of its pure tungsten and pure molybdenum mill products from Austria. We believe key distinctions between us and Plansee are our engineering expertise and our U.S. ownership. As re-shoring accelerates, our engineering expertise and ability to create highly engineered solutions in the United States makes us a preferred vendor on DoW projects, due to our vertical integration and because we are U.S.-owned. The recent focus on rebuilding the manufacturing infrastructure in the United States also allows us to take advantage of direct government funding for both development and installation of state-of-the-art manufacturing capacity.

The other competition we face is from a collection of small resellers of low-cost PRC materials and parts. These sources are facing recent geopolitical shifts and government regulations. The NDAA has banned the purchase of tungsten from the PRC, Russia, North Korea, and Iran for all DoW applications. In December 2025, through the enactment of the National Defense Authorization Act for Fiscal Year 2026 ("FY26 NDAA"), Congress expanded the statutory prohibition on procuring strategic materials from "covered nations." This amendment adds molybdenum to the existing list of restricted materials, which already includes tungsten, tantalum and certain rare earth magnets, that the DoW is barred from sourcing from the PRC, Russia, North Korea and Iran. This designation underscores the critical nature of molybdenum in national security applications and reinforces the requirement for defense contractors to validate "conflict free", allied supply chains for this material. These regulatory changes, combined with tariffs and the PRC's recent export controls on these materials, have dramatically limited the ability of many competitors to source tungsten and molybdenum from the PRC, leaving a gap in the U.S. market for a reliable, domestic supplier of tungsten and molybdenum products and manufacturing capabilities. For example, since January 2025, tungsten and molybdenum sourced from the PRC and the European Union have been subject to varying tariff rates, including cumulative rates as high as approximately 51.5% and 16.5%, respectively. While the recent U.S. Supreme Court opinion regarding certain tariffs imposed under the International Emergency Economic Powers Act may have the effect of reducing tariff rates, we believe this dynamic presents a strong, long-term competitive advantage, given our existing tungsten and molybdenum sourcing relationships and U.S.-based manufacturing capabilities.

We face very limited competition in rolling, forging, and extruding metals like niobium and beryllium. Our 5,500-ton extrusion press is a significant asset in the United States, with few comparable private-sector alternatives. Special Metals Corporation, a division of Precision Castparts Corporation, has a similar press, but it is primarily used for the internal production of its own products.

#### High-Power Microwave
The High-Power Microwave market is highly specialized and fragmented. Competition varies by specific product, but our competitive advantage lies in offering comprehensive solutions. There is no single large entity that dominates the High-Power Microwave segment. Rather, we face a few specialized competitors for each product category:

---

| | |
|:---|:---|
| **Product Type** | **Competitor** |
|  • Circulators, loads, and isolators | • AFT GmbH |
|  • Waveguide and rotary joints | • Spinner GmbH |
|  • DoD radar sector | • Microtech, Inc. and Space Machine & Engineering Corp. |
|  • Large microwave broadcast coax | • Dielectric LLC |
|  • Tuners | • S-Team s r. o. (Slovakia) |
|  • 915MHz linear power supply generators | • Amtek, Inc. (United States) and Sairem- France |

---

While these competitors may offer a single product line, few, if any, offer the complete suite of components, systems, and engineering consulting services that we do. In addition, our focus on larger waveguide sizes (above WR90) differentiates us from a crowded field of competitors focused on smaller, lower-power components. This product breadth and technical expertise, enable us to be able to serve as a sole-source partner for customers with complex development challenges, from concept to full system implementation, and we believe this integrated approach creates a significant barrier to entry and fosters deep, long-term customer relationships.

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#### Government Grants
We have been successful in obtaining approximately $41.8 million in U.S. government support over the last six calendar years to enhance our Critical Materials capital infrastructure with the goal of returning Critical Materials production to the United States. Over the last six years, we have secured government-backed grants from a number of DoW-related programs, including Industrial Base Analysis and Sustainment, U.S. Army Manufacturing and Technology, the Defense Logistics Agency Small Business Innovation Programs and the Department of the Navy Supplier Development Fund. Since 2019, the grants we received from U.S. government programs have supported expenditures in the following areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of new manufacturing processes for tungsten and tungsten alloy components in support of DoW products. These relate to a six-ton press line, furnace upgrade and powder blender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The purchase of equipment for a large swager, medium swager, precision lathe, optical inspection, infrastructure upgrades and proposed automation to support two programs for armor penetrating rods and rocket nozzles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The expansion of fragmentation capacity and capability by adding two presses of up to ten tons; the expansion of pressing capability and capacity through the addition of a larger press (less than 20 tons) to expand shapes and sizes and associated tooling; and the development of automation of material handling and post pressing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of alloys, hiring of dedicated resources, procurement of assets, material and production of low volume products, specifically powder and spherical fragments to expand production and capacity for tungsten fragments, complete a performance matrix to evaluate material compositions and technical characteristics, and research and document increased performance of tungsten carbide with the integration of nano-sized particles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of tungsten supply chain resiliency and surge capacity by mitigating high risk processes and focusing on preparedness to meet the demands of material requirements for products used in hypersonic munition applications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of competitive, high-volume munition production lines and internalization of a heat treatment process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The development of extrusion techniques and capacity to expand the Navy's supply chain around Inconel<sup>®</sup> and Monel<sup>®</sup>.

#### Government Regulation

#### U.S. Government Contracts
Because the U.S. government is the largest end user of some of our customers' products and services, representing a substantial majority of our total defense sales, we are exposed to many of the same regulatory schemes as our customers. U.S. government contracts are subject to termination by the U.S. government, either for convenience or for default in the event of our customer's failure to perform under the applicable contract. In the case of a termination for convenience, we would normally be entitled to reimbursement for our allowable costs incurred, termination costs and a reasonable profit. If terminated by the U.S. government as a result of our customer's default, we could be liable for payments made to us for undelivered goods or services, additional costs the government incurs in acquiring undelivered goods or services from another source, and any other damages it suffers. Due to flow-down requirements in the contracts of our customers we are often subject to the FAR, which sets forth policies, procedures, and requirements for the acquisition of goods and services by the U.S. government. Department-specific regulations which implement or supplement FAR requirements, such as the DoW's Defense Federal Acquisition Regulation Supplement, and other applicable laws and regulations may also be applicable to our businesses. These regulations impose a broad range of requirements, many of which are unique to government contracting, including various procurement, import and export, security, contract pricing and cost, contract termination and adjustment, audit and product integrity requirements. A contractor's failure to comply with these regulations and requirements could result in reductions to the value of

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contracts, contract modifications or termination, cash withholds on contract payments, forfeiture of profits, and/or the assessment of civil or criminal penalties and fines, and could lead to suspension or debarment, for cause, from U.S. government contracting or subcontracting for a period of time. See "*Risk Factors — A portion of our revenue is derived from the sale of defense*-related *products through various contracts and subcontracts and are subject to risks related to the U.S. government. These contracts may be suspended, canceled or delayed, which could have an adverse impact on our revenues*" for a further discussion of potential risks arising from government contracting.

#### Global Trade Regulation
We must comply with various laws and regulations relating to the export and import of products, services and technology from and into the United States and other countries having jurisdiction over our operations. In the United States, these laws and regulations include, among others, the EAR administered by the Commerce Department, ITAR and the AECA provisions administered by the State Department, embargoes and sanctions regulations administered by the U.S. Department of the Treasury, and import regulations administered by the U.S. Department of Homeland Security and the U.S. Department of Justice. Certain of our products, services, and technologies have military or strategic applications and are on the U.S. Munitions List of the ITAR, the Commerce Control List of the EAR, or are otherwise subject to the EAR and/or the U.S. Munitions Import List, and we are required to obtain licenses and authorizations from the appropriate U.S. government agencies before exporting these products out of the United States or importing these products into the U.S. Foreign policy of the United States or other licensing jurisdictions may affect the licensing process or otherwise prevent us from engaging in business dealings with certain individuals, entities, or countries. Any failure by us, our customers, or our suppliers to comply with these laws and regulations could result in civil or criminal penalties, fines, seizure of our products, adverse publicity, restrictions on our ability to engage in export or import transactions, or the suspension or debarment from doing business with the U.S. government. See "*Risks Factors — We are subject to significant government regulation for U.S.*-controlled *goods and technologies, which may cause us to incur significant expenses to comply with new or more stringent governmental regulation and may subject us to regulatory actions, which may adversely impact our business, financial condition or results of operations*" for a further discussion of potential risks arising from trade regulations.

#### Environmental Regulations
Our operations and facilities are subject to an extensive regulatory framework of federal, state, local and foreign environmental laws and regulations governing, among other things, discharges of pollutants into the air and water, the generation, handling, storage and disposal of hazardous materials and wastes and the investigation and remediation of certain materials, substances, and wastes. We are committed to monitoring our business' environmental performance, and to ensuring the health and safety of our employees, and, as such, we continually make efforts to ensure our operations are in substantial compliance with all applicable environmental laws and regulations. Environmental laws and regulations may require us to investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations.

In conjunction with our acquisition of entities related to H.C. Starck Solutions in 2023 (See "*— Corporate Structure and History*"), which included manufacturing facilities in Coldwater, Michigan and Euclid, Ohio, we obtained environmental insurance to cover these properties for a period of ten years expiring in 2033, although we have not identified specific environmental hazards. At our Lewiston, Maine facility, certain historical environmental issues, primarily consisting of petroleum product releases, mercury and other hazardous substances resulting from 90 years of lighting production, were identified when we purchased the facility in 2015 (See "*— Corporate Structure and History*"). We understand many of the historical environmental issues were remediated prior to our purchase of the property. As part of our acquisition of the Lewiston facility, we became the beneficiary of certain agreements with Philips Lighting Company (n/k/a Signify North America Corp.) ("Philips"), the former owner of the site, providing that all environmental matters related to the Lewiston facility prior to our purchase are the responsibility of Philips. In conjunction with the 2022 Sale-Leaseback Transaction for the Lewiston facility (See "*— Corporate Structure and History*"), we also obtained environmental insurance for a ten-year period expiring in 2032. Based upon consideration of currently available information, we believe liabilities for environmental matters will not have a material adverse impact on our consolidated financial statements, but we cannot assure material environmental liabilities may not arise in the future. For further information on environmental-related risks, including climate change, see "*Risk Factors — Any failure to comply with applicable environmental laws could result in significant liabilities or harm our reputation.*" and *"Risk Factors — Changes in the regulatory environment, including environmental, health and safety regulations, could subject us to increased compliance and manufacturing costs, which could have a material adverse effect on our business*."

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#### Foreign Regulations
Through the operations of our EMP division in Germany, we may be subject to a range of German and European Union laws. These laws include, but are not limited to, laws governing labor relations (such as the Collective Bargaining Act), chemicals and substances compliance (including compliance with the REACH Regulation (EC No. 1907/2006)), waste management, packaging and circular economy principles (such as the German Packaging Act and German Circular Economy Act), product safety and technical compliance (including E.U. directives and the Product Safety Act), environmental permits and emissions controls (including the German Federal Immission Control Act (BlmSchG)), and energy efficiency standards (including the Energy Labelling Act). Because of our EMP facility's presence in Germany, it must comply with these legal frameworks, as applicable. However, given the relatively limited size of our German operations, we do not believe our German operations being subject to these bodies of law, or incurring any costs associated with compliance with these laws, has a material impact on our Company.

#### Facilities
We maintain seven locations consisting of a total of eight facilities, seven of which are primarily manufacturing, warehousing or processing facilities and one is dedicated to executive and management office space. Between all of our locations, we have over 600,000 square feet dedicated to engineering, design, testing and manufacturing. Seven of our facilities are in the United States and one is in Hamburg, Germany.

Each of our manufacturing facilities supports "Centers of Excellence" described below for differing products and services we provide to our customers. We believe our existing facilities are sufficient to meet our operational needs for the foreseeable future. The table below provides additional information about our properties as of the date of this prospectus.

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| | | | |
|:---|:---|:---|:---|
|  **Location** | **Size** | **Own/Lease** | **Business Focus** |
|  Coldwater, Michigan | 200,000 square feet (two main buildings) | Own | Critical Materials |
|  Euclid, Ohio | 110,000 square feet | Own | Critical Materials |
|  Lewiston, Maine | 210,000 square feet | Lease, expires February 28, 2037 | Critical Materials |
|  Gorham, Maine | 60,000 square feet (two main buildings) | Leases, expire May 31, 2029 and November 30, 2030 | High-Power Microwave |
|  Nashua, New Hampshire | 25,000 square feet | Lease, expires July 31, 2029 | High-Power Microwave |
|  Hamburg, Germany | 6,000 square feet | Lease, can terminate with 6 months' notice starting November 30, 2026 | High-Power Microwave |
|  Portland, Maine | 3,200 square feet | Lease, expires August 31, 2027 | Corporate, Executive and Administrative offices |

---

#### Critical Materials Components
Our CMC division conducts its operations at three facilities, with a total footprint over 500,000 square feet, spread across Coldwater, Michigan, Euclid, Ohio and Lewiston, Maine. Each operation is structured as a "Center of Excellence" model for process optimization with effective redundancy, and certain of our facilities have been certified to have special testing capabilities for critical U.S. defense programs. In our Centers of Excellence, we believe we have assembled subject matter experts in each of our manufacturing categories to drive improvement, promote best practices and innovation and concentrate production where it has the greatest impact. We have also structured the Centers of Excellence to allow for redundancies in most processes across the different sites. These redundancies provide surge capacity, and we believe we have factored in sufficient flexibility in the manufacturing capability of each plant so they can absorb additional demand when necessary without immediately incurring substantial additional capital investment.

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*Coldwater, Michigan — Powder, Forging, and Extrusion*

We own our Coldwater facility of approximately 200,000 square feet, consisting of two main buildings and several outbuildings subject to a mortgage from Great Falls Property, LLC. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness.*" This mortgage will be satisfied with the proceeds of this offering. See "*Use of Proceeds*." Coldwater possesses important domestic production capabilities including a 5,500-ton extrusion press and an 800-ton rotary forge, which have the capability to produce and toll products as great as twenty-two (22) inches in diameter and reduce to a nominal two (2) inch diameter. The Coldwater location also has molybdenum powder reduction furnaces and a significant range of capability in sintering across pusher, batch, and induction furnaces. This makes the site the Center of Excellence for powder production as well as forged and extruded products, including the machining needed for these larger sizes. A recent investment in a modern tungsten reduction furnace is expected to be installed in Coldwater in the third quarter of 2026. As a result, we expect the predominant supply of our foundational materials for the portfolio will be supplied from this location in the future.

*Euclid, Ohio — Rolling and Tungsten Heavy Alloy*

We own our Euclid facility of approximately 110,000 square feet consisting of one main building and two outbuildings, subject to a mortgage from Great Falls Property, LLC. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness.*" This mortgage will be satisfied with the proceeds of this offering. See "*Use of Proceeds*." The Euclid facility is designed around plate, sheet and foil rolling. With six operating rolling mills, Euclid can produce a range of rolled mill products from three inches to one thousandth of an inch. Within this location, there is chemical post processing, laser and waterjet cutting, machining and fabrication. Euclid also specializes in near net shape metallurgical powder pressing. Working with a number of alloy compositions, material can be pressed and sintered to meet a wide range of material geometry and properties. Euclid also has a small machine shop to produce finished products such as balance weights for aircraft.

*Lewiston, Maine — Full-Process Manufacturing — Wire and Machining*

We lease our Lewiston facility of approximately 210,000 square feet consisting of one main building. The Lewiston location has the capability to fully produce molybdenum, tungsten, and related alloys from powder to finished products. With powder reduction furnaces, isostatic presses, sintering furnaces, swagers, drawing equipment, rolling mills, several custom assets, and a machine shop with a wide range of capabilities, the location can manufacture and sell product forms of between the nominal range of two inches down to wire of seven ten-thousandths (0.0007) of an inch.

#### Engineered Microwave Products
Our EMP division has locations in Gorham, Maine, Nashua, New Hampshire and Hamburg, Germany, with experience producing High-Power Microwave components, industrial microwave systems and RF solutions. With more than 35 years in the industry, our EMP division continues to evolve, pushing the boundaries of science through continuous engineering and product development, with a special focus in advancing microwave technology through research and development. Our EMP team is quality-driven, and customer-centric, which creates a dedicated partnership, and an ongoing resource for future microwave and RF projects. Using its three locations, some of which are certified for special testing capabilities for critical U.S. defense programs, our EMP division leverages redundant capacity across its sites with opportunity to expand to meet growing market demand. This segment also has a multi-year capitalization plan to invest in modern equipment and industrial automation, which will complement the talented workforce and expand its capacity. For example, the current plan includes capital purchases targeted to growth, such as the installation of a larger or second paint cure oven, a pulse generator and signal source, updated metrology instrumentation and a waveguide cutting saw.

*Gorham, Maine — Component Manufacturing*

We lease our Gorham, Maine campus of approximately 60,000 square feet consisting of two main buildings. One building is approximately 40,000 square feet of engineering office space, manufacturing, assembly and electrical testing. This building also houses a three-stage clean room for ultrahigh vacuum ("UHV") assembly and packaging. We also lease the approximately 20,000 square foot building directly across the street to house our sales offices, painting,

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final inspection, crating and shipping operations. Also located in this building is another clean room with a vacuum brazing oven for larger UHV items and a "skunkworks" for new product development, research and development and ongoing training. In Gorham, the focus is the designing and manufacturing of microwave components, which includes but is not limited to calibration kits, circulators, couplers, filters, semi-flexible waveguide, loads, phase shifters, power combiners, rotary joints, rigid waveguide, proprietary seals, switches, tuners and windows. The manufacturing area of our Gorham facility consists of material storage, cutting/material preparation, machining, welding, soldering, brazing, riveting, punching, stamping, chemical coating, painting and testing. This enables the component side of the business to operate with strong vertical integration, including products for the systems operations in Nashua, New Hampshire. The Gorham locations operate five days per week with a first shift and a limited second shift four days a week. Under normal conditions, the business generally operates between 50% to 60% of total capacity, leaving sufficient capacity available for short-term increases in demand and the ability to increase the workforce to respond to future demand.

*Nashua, New Hampshire — Systems Division*

Our EMP division leases its Nashua, New Hampshire facility of approximately 25,000 square feet located on land owned by the Nashua Airport Authority. Nashua is the "Systems Division" of Microwave Techniques and, with the support of components from Gorham, has the internal capability to produce batch ovens, continuous tunnel ovens, boost heating systems, moisture removal dryers and standalone generator power sources. Nashua also offers spare parts and service programs including field service for existing systems.

*Hamburg, Germany — European Operations*

We lease our approximately 6,000 square foot facility in Hamburg, Germany. We manufacture microwave and RF circulators, isolators, loads, windows and other components for the European, United States and Asian markets at this location.

#### Human Capital
As of April 1, 2026, we employed approximately 543 employees and three consultants. Of these employees, 538 were full-time and five were part-time. As of that date, our workforce included 324 hourly employees and 219 salaried employees. Our three consultants work on a part-time basis and are based out of our Coldwater, Michigan and Gorham, Maine facilities.

#### Workforce by Entity and Location

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| | | | |
|:---|:---|:---|:---|
|  **Entity/Location** | **Total <br>Employees** | **Hourly** | **Salaried** |
|  Portland, ME | 19 | 1 | 18 |
|  Lewiston, ME | 184 | 95 | 89 |
|  Coldwater, MI | 117 | 93 | 24 |
|  Euclid, OH | 88 | 62 | 26 |
|  Gorham, ME | 92 | 52 | 40 |
|  Nashua, NH | 28 | 12 | 16 |
|  Hamburg, Germany | 15 | 9 | 6 |
|  Total | 543 | 324 | 219 |

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#### Roles and Capabilities
Our workforce spans production operators, machining and fabrication specialists, engineers, quality professionals, supply chain staff, environmental, health and safety personnel and administrative and corporate support. Hourly employees primarily perform direct manufacturing and support functions, while salaried employees include engineering, quality, operations leadership, sales, finance and human resource professionals.

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#### Talent Attraction and Retention
We recruit talent from local and regional labor markets near our sites, supported by structured role profiles, assessments and multi-step interviews. We track time-to-fill, offer acceptance, and first-year retention to monitor recruiting effectiveness. We also use employee referrals and targeted outreach for hard-to-fill and leadership roles.

#### Pay, Benefits, and Incentives
We believe we provide competitive base pay and are implementing consistent pay structures across our businesses. Many roles are performance bonus eligible. Our benefits include medical, dental, vision, life, and disability insurance, paid time off, paid holidays and a 401(k) plan (including Roth) with employer contributions. We benchmark pay and benefits to remain competitive in our geographies. We expect to adopt an equity incentive plan in 2026 for senior managers and mid-level managers. In addition, we expect to put in place an employee stock purchase plan allowing employees to purchase stock at a discount. See "*Executive Compensation — Employee Benefit Plans*" for more information on our anticipated equity incentive plan.

#### Learning and Development
We offer on-the-job training, cross-training, and compliance training in safety, quality and regulatory topics. For salaried and supervisory employees, we provide development opportunities in leadership, problem-solving and continuous improvement. As we grow, we plan to expand structured development programs, including front-line leader training and quality systems development.

#### Compliance with Employment Regulations
We are subject to U.S. federal employment laws and regulations with regard to any federal contracts on which we provide products or services, and we must comply with current applicable federal and state equal opportunity employer directives. We provide training to all employees, and incorporate discipline measures, in an effort to prohibit discrimination and harassment. We make employment decisions based on merit and business needs. We monitor hiring, promotion, and pay practices to support equity and compliance.

#### Employee Relations
We strive for transparent and direct communication with employees across all our locations. Our human resources team strives to apply consistent policies, resolve concerns promptly and partner with site leadership to maintain constructive employee relations. We believe we have good relations with our employees.

#### Collective Bargaining
Approximately 89 of our employees, in our Lewiston, Maine location, are represented by the Teamsters Union local 340 with a three-year collective bargaining agreement. We recently renegotiated this CBA, which expires on May 15, 2028. After the expiration of our CBA, the agreement remains in effect until terminated by either party by sixty days' written notice. After termination, the union may authorize either a strike or a lock-out. Labor disputes could lead to a strike, lockout or other work stoppage by the employees covered by the CBA, and could have a material adverse effect on production at one of our facilities and, depending upon the length of such dispute or work stoppage, on our operating results. There can be no assurance that we will succeed in obtaining a new collective bargaining agreement to replace the current CBA when it expires on May 15, 2028. None of our other U.S. facilities are represented by a union or are parties to a collective bargaining agreement. For our hourly workers in our Hamburg, Germany location, we voluntarily abide by the rules and proclamations of the workers' collective of Northern Germany. See "*Risk Factors — We may be subject to work stoppages at our facilities or those of our principal customers and suppliers, which could seriously impact the profitability of our business.*" and "*Risk Factors — We provide benefits to active employees for our unionized workforce, including defined benefit pension plans, which could cause us to incur unplanned liabilities.*"

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#### Recent Developments
*Corporate Reorganization*

On January 2, 2026, we underwent a corporate reorganization which resulted in The Elmet Group Co. wholly-owning Elmet Tech, Microwave Techniques and A&A. Please see "*Corporate History and Reorganization — Reorganization*" below for more information on the actions undertaken as part of the Reorganization.

*Divestiture of Poly Labs*

On October 1, 2025, A&A distributed its interests in Poly Labs to its individual shareholders. As noted above (see "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Recent Acquisitions and Divestitures — Recent Divestitures*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Discontinued Operations*"), Poly Labs is a manufacturer of polyurethane molded components. In response to an inquiry from the City of Lewiston and in an effort to rescue the business from closure, A&A acquired the Poly Labs assets in late 2020 during the COVID-19 outbreak. After the acquisition, A&A rescued the operations, saved the attendant jobs, fulfilled a number of standing obligations and last time buys and sold Poly Labs' underlying real estate assets in 2024 for a significant profit. In 2025, we determined that the Poly Labs' operations do not meet our business goals or operating requirements. Consequently, A&A distributed its interest in Poly Labs to its individual shareholders.

*Symphony Acquisition*

On November 14, 2025, our EMP division acquired New Hampshire-based Symphony. Symphony's operations and team have been combined with our EMP operations at our Nashua facility, continuing a history of collaboration between the teams. Symphony brings several large customers and high-volume projects, including advanced microwave components for radar security solutions. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Recent Acquisitions and Divestitures — Recent Acquisitions.*"

*Cybersecurity Incident*

On February 7, 2026, we became aware that certain servers in our corporate office and EMP division network were attacked and encrypted by ransomware (the "Event"). A threat actor claimed to have obtained all our general business information contained on those servers and demanded a ransom in exchange for not publicly disclosing the information. The threat actor appears to have obtained this information by breaching a firewall vulnerability. Our CMC division runs on a wholly separate network and was not affected by the attack in any manner.

We immediately launched a forensic investigation, including a review of which files were affected and how quickly we could return to normal operations. With the help of third-party cybersecurity specialists and outside data privacy counsel, we were able to rapidly implement containment, eradication, recovery and security enhancement to reduce the risk of recurrence and strengthen our overall cybersecurity posture. As of February 17, 2026, were able to restore all material servers affected by this Event, we have full access to all material data as of the day before the Event, and we were able to confirm that the threat actor was successfully expelled from our information systems. As of the date of this prospectus, this Event has not had a material impact on the Company's operations and is not reasonably expected to have a material impact on the EMP division's or the Company's financial condition, business operations or results of operations. This Event did not affect EMP's payroll, enterprise resource planning or accounting systems and production at our EMP facilities was not interrupted.

As a result of the Event, we have conducted a preliminary assessment and have implemented or commenced the following actions to enhance our network security posture. A complete assessment will occur when our third-party cyber security specialists have produced a complete vulnerability review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Network Security***: We will enhance network segmentation, strengthen our multi-factor authentication ("MFA") where supported but avoiding SMS-based MFA where practicable. We will also enhance, among other measures, our virtual private network ("VPN") access, firewall admin accounts, M365/O365, domain admin accounts and critical infrastructure backups. We are also hardening our firewall rules using

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"Next Generation" firewall methodologies, including restricting management in internal IPs only, enabling Geo-Fencing and enabling all security-related features to ensure the firewall can support all the functions safely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Remote Access Security***: We have taken measures to ensure the security of our remote access by avoiding the exposure of our remote desktop protocol directly to the public internet, enforcing MFA use for the VPN, avoiding secure sockets layer VPNs and using internet protocol security when possible since it is less vulnerable to attacks and has a higher level of encryption available. We will also continue to restrict our VPN by user groups and monitor our VPN for anomalous logons, internet protocols, and other potential threats.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Backup Enhancements***: We plan to enhance our current backup strategy by implementing a ransomware-resilient backup strategy following the "3-2-1 rule," which we define as three copies of data, two different storage types, and one offline, immutable copy. Our enhanced strategy will also include retaining immutable cloud backups, backing up the admin account separate from the domain accounts and testing restore data quarterly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Detection and Response Monitoring***: We have migrated our endpoint detection and response ("EDR") to a third-party cybersecurity specialist where it can be monitored around the clock. We also intend to deploy a managed detection and response ("MDR") service to operate with our existing EDR. The MDR will have a full security operation center.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Additional Training and Awareness***: We are increasing our security awareness and training program to reinforce employee understanding of evolving cyber threats, including ransomware and phishing activity. Updated training materials are being prepared for dissemination across the Company, with targeted instruction provided to personnel with elevated system access. Simulated phishing campaigns will continue to reinforce cybersecurity awareness and measure training effectiveness.

#### Legal Proceedings
From time to time, we may be subject to or pursue legal proceedings, investigations and claims incidental to the conduct of our business. We are not a party to, nor are we aware of any legal proceedings, investigations or claims which, in the opinion of our management, are currently likely to have a material adverse effect on our business, financial condition or results of operations.

#### Seasonality
We do not believe that our sales or operations are seasonal.

#### Corporate History and Reorganization
We are a Delaware corporation with headquarters in Portland, Maine and founded on September 13, 2024, for the purpose of acquiring, owning and operating Elmet Tech and Microwave Techniques. On January 2, 2026, we completed a Reorganization of our corporate structure, as a result of which we now wholly own our two primary operating subsidiaries, Elmet Tech and Microwave Techniques (see "*— Reorganization*" below). Our principal executive offices are located at 2 Portland Fish Pier, Suite 214, Portland, ME 04101 and our phone number is 207-518-6791.

#### Anania & Associates
Anania & Associates was founded as Anania, Strand & Associates in 1987 and, after Mr. Strand left the company, reorganized in 1994, as A.S.A. II, Inc. A.S.A.II, Inc. was renamed in July 2001 as Anania & Associates. A&A has functioned as a funding and management platform for over 25 years, acquiring, managing and selling over 20 different enterprises. In 2008, A&A founded Anania & Associates Investment Company, LLC to enlarge its reach and raise private capital. A&A led AAI's investments and has provided contract management services for both Elmet Tech and Microwave Techniques.

#### Elmet Tech and Subsidiaries
Elmet Technologies LLC was formed under the laws of the State of Maine on January 2, 2015. Elmet Technologies LLC was formed to acquire the assets of Elmet Technologies Inc. We completed the acquisition of the assets pursuant to a Secured Party UCC Article 9 sale, saving two U.S. manufacturing facilities which had been in operation since 1929, and the approximately 200 jobs associated with them, from closure. We later became the

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majority member of Elmet Tech in 2021. In 2023, the opportunity to acquire one of our largest competitors arose, and on November 23, 2023, we completed an acquisition of the equity interests of H.C. Stark Solutions Coldwater LLC and H.C. Starck Solutions Euclid LLC. These entities were renamed Elmet Coldwater LLC and Elmet Euclid LLC in 2024. As of June 30, 2024, all the operating assets of Elmet Coldwater and Elmet Euclid were transferred to Elmet Tech. Elmet Coldwater and Elmet Euclid now act as real estate holding companies. Poly Labs Solar LLC (now known as Elmet Solar) was acquired from its owners in July 2025 to develop a solar facility to deliver energy to the Lewiston facility. The solar facility was substantially completed in December 2025.

#### Microwave Techniques and Subsidiaries
Mega Industries Limited Liability Company was formed in 2000 to acquire the assets of Mega Industries, Inc. As part of a series of acquisitions, reorganizations and mergers the company was ultimately renamed Microwave Techniques LLC in 2020. In 2014, we acquired Micro Communications, Inc., which expanded our product line into a new line of broadcast switches and eliminated a low-cost competitor. In 2020, Microwave Techniques acquired Ferrite Microwave Technologies, which added significant capacity, expanded our circulator expertise and provided access to maintenance opportunities for all of Ferrite Microwave Technologies' installed circulator equipment. On April 9, 2020, Mega Industries was renamed Microwave Techniques LLC. In 2021, we acquired the operating assets of Industrial Microwave Systems, which included its name and intellectual property related to microwave processing for liquids and drying of foam. We followed this acquisition with the acquisition of Valvo Bauelemente GmbH in Hamburg, Germany in 2023. The Valvo acquisition expanded our footprint into the European Union and expanded our product line into higher frequencies which we had previously not served. Our latest acquisition was the acquisition of Symphony Microwave Technologies LLC in November 2025, bringing several large customers and high-volume projects, including advanced microwave components for radar security solutions.

#### Reorganization
Prior to January 2, 2026, Peter V. Anania, our Chief Executive Officer and Chairman, was the President and majority stockholder of A&A, and through his personal holdings and the holdings of A&A, Mr. Anania was the holder of a majority of the voting interests of AAI. Prior to January 2, 2026, AAI was the majority holder of the membership interests of each of Elmet Tech and Microwave Techniques.

On October 1, 2025, A&A distributed its membership interests in Polymer Laboratories and Solutions LLC that it held to its stockholders (see "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Recent Acquisitions and Divestitures — Recent Divestitures*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Discontinued Operations*" herein).

On January 2, 2026 (the following actions and transactions collectively termed the "Reorganization"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AAI distributed the membership interests in Elmet Tech and Microwave Techniques that it held to A&A in redemption of A&A's interests in AAI, which resulted in A&A becoming the direct, rather than indirect, owner of the Elmet Tech and Microwave Techniques membership interests previously held by AAI, as well as A&A no longer being a member of AAI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We adopted our amended and restated certificate of incorporation, which, among other things, bifurcated our common stock into two classes, Class A Common Stock, par value $0.001 per share ("Class A Common Stock"), and Class B Common Stock, par value $0.001 per share ("Class B Common Stock"), with the Class A Common Stock having one vote per share and the Class B Common Stock having 10,000 votes per share but no economic rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We issued to Mr. Anania 466 shares of Class B Common Stock for an aggregate consideration of $25,000 (the "Subscription Agreement"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We directly acquired all of the (i) outstanding membership interests of each of Elmet Tech and Microwave Techniques and (ii) the outstanding stock of A&A in exchange for, in each case, shares of Class A Common Stock pursuant to a Contribution Agreement among the Company, the members of Elmet Tech, the members of Microwave Techniques and the stockholders of A&A and the cancellation of all of A&A's membership interests in Elmet Tech and Microwave Techniques.

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The diagram below depicts the material aspects of our corporate structure after giving effect to the Reorganization and this offering.

![](tflowchart_001.jpg)

Additionally, immediately prior to the effectiveness of the registration statement of which this prospectus forms a part, we will redeem and cancel all outstanding shares of the Class B Common Stock and file a second amended and restated certificate of incorporation which, among other things, will consolidate and reclassify all Class A Common Stock and Class B Common Stock into a single class of common stock.

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#### MANAGEMENT

#### Number and Terms of Office of Officers and Directors
Upon the effectiveness of the registration statement of which this prospectus forms a part, we expect that our board of directors will consist of nine members. In accordance with our second amended and restated certificate of incorporation and amended and restated bylaws, which will be effective immediately prior to the completion of this offering, our board of directors will be divided into three classes with staggered three-year terms. At each annual meeting of stockholders, the successors to directors whose terms then expire will be elected to serve from the time of election and qualification until the third annual meeting following election. Our directors will be divided among the three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Class I directors will be Peter Woodward, Mark Miklos, and Kathie Leonard, and their terms will expire at the annual meeting of stockholders to be held in 2027;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Class II directors will be Brian Deveaux, Kimberly Anania, and Scott Knoll, and their terms will expire at the annual meeting of stockholders to be held in 2028; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Class III directors will be Peter V. Anania, John Chandler, and William Jacob Homiller, and their terms will expire at the annual meeting of stockholders to be held in 2029.

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 directors.

Our second amended and restated certificate of incorporation will provide that for so long as our board of directors is classified, no director may be removed without cause. The division of our board of directors into three classes with staggered three-year terms may delay or prevent a change of our management or a change in control. See "*Risk Factors — Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable and may lead to entrenchment of management*."

Our officers are appointed by the board of directors and serve at the discretion of the board of directors, rather than for specific terms of office. Our board of directors is authorized to appoint persons to the offices set forth in our amended and restated bylaws, which will be in effect upon the consummation of this offering, as it deems appropriate.

The information set forth in this section below gives effect to the consummation of the Reorganization.

#### Executive Officers and Directors
The following table sets forth certain information about our executive officers and directors as of the date of this prospectus.

---

| | | |
|:---|:---|:---|
|  **Name** | **Age** | **Position** |
|  Peter V. Anania | 70 | Chief Executive Officer and Chairman |
|  Michael Steven Lee | 51 | Chief Financial Officer |
|  Scott W. Knoll | 54 | Executive Vice President, Corporate Strategy and Director |
|  Christian T. Chandler | 66 | Executive Vice President, General Counsel and Director\*\* |
|  Derek Fox | 45 | President, CMC Division |
|  James William Detert | 66 | President, EMP Division |
|  David Carpenter | 58 | Chief Human Resources Officer |
|  Kimberly Monzeglio Anania | 52 | Director Nominee\* |
|  John M. Chandler<sup>(1)</sup> | 64 | Director Nominee\* |
|  Brian Thomas Deveaux<sup>(1)</sup> | 57 | Director Nominee\* |
|  William Jacob Homiller<sup>(2)(3)</sup> | 56 | Director Nominee\* |
|  Kathie Merrill Leonard<sup>(2)(3)</sup> | 73 | Director Nominee\* |
|  Mark Andrew Miklos<sup>(2)(3)</sup> | 56 | Director and Vice Chairman Nominee\* |
|  Peter Woodward<sup>(1)</sup> | 52 | Director Nominee\* |

---

____________

\* Appointment as director to become effective upon the effectiveness of the registration statement of which this prospectus forms a part.

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\*\* To resign from the board of directors upon the effectiveness of the registration statement of which this prospectus forms a part.

(1) Member of the Audit Committee.

(2) Member of the Compensation Committee.

(3) Member of the Nominating and Corporate Governance Committee.

***Peter V. Anania*** serves as our Chief Executive Officer and Chairman and has held this position since our incorporation. Prior to the Reorganization, Mr. Anania served as President and majority stockholder of Anania & Associates which he founded in 1987, and President of Anania & Associates Investment Company, LLC, a private investment firm focused on privately held manufacturing businesses which he founded in January 2008. Anania & Associates provided Elmet, Elmet Tech and Microwave Techniques with management services prior to the Reorganization. In the nearly four decades since Mr. Anania founded Anania & Associates, Mr. Anania has been the Chief Executive Officer, President or founder of over 20 various manufacturing companies, many of which involved metals manufacturing and/or microwave concerns. Mr. Anania has additionally served on the board of directors of several companies, most recently including his service on the board of directors of Precision Optics Corporation, Inc. (NASDAQ: POCI) from October 2021 to March 2025 and of Alaris Holdings Ltd (JSE: ALH) from January 2019 to November 2021. Mr. Anania received a Master of Business Administration from the University of Southern Maine and a Bachelor of Science in Business Administration from the University of Maine at Orono. Mr. Anania also currently serves as a Corporator for Bangor Savings Bank. We believe Mr. Anania is qualified to serve as Chief Executive Officer and Chairman of our board of directors due to his deep origins within Elmet and the perspective and experience he brings as our Chief Executive Officer and Chairman.

***Michael Steven Lee*** serves as our Chief Financial Officer. Prior to the Reorganization, Mr. Lee served as the Chief Financial Officer of Anania & Associates beginning in March 2025, which provided Elmet, Elmet Tech and Microwave Techniques with management services. Mr. Lee served as Chief Financial Officer at Naprotek, LLC, an electronics technology company, from September 2022 until joining Anania & Associates. Mr. Lee also served as Chief Financial Officer at Fiber Materials, Inc., an industrial technology company, from April 2018 to January 2020 and then as Divisional Chief Financial Officer at Fiber Materials, Inc. upon the acquisition of Fiber Materials, Inc. by Spirit AeroSystems, Inc., an aerostructure manufacturing company, from January 2020 to August 2022. Prior to joining Fiber Materials, Inc., Mr. Lee served in financial roles of increasing responsibility at Fairchild Semiconductor International, Inc., a semiconductor manufacturer, including most recently as Senior Director of Finance and Operations of the Standard Product Group, from 1995 to 2015. Mr. Lee received a Bachelor of Science in Accounting from the University of Southern Maine at Portland and an Associate of Science in Electromechanical Technology from Central Maine Technical College.

***Scott W. Knoll*** serves as our Executive Vice President, Corporate Strategy and a member of our board of directors. Prior to the Reorganization, Mr. Knoll served as the Executive Vice President, Corporate Strategy and as a stockholder of Anania & Associates, which provided Elmet, Elmet Tech and Microwave Techniques with management services, as well as serving as a partner in Anania & Associates Investment Company, LLC since May 2014. Prior to joining Elmet, Mr. Knoll served as Director of Corporate Development and International Development at WEX Inc. (NYSE: WEX), a global commerce platform, from June 2010 to May 2014. Mr. Knoll started his career at Affinity Industries in October 1995, which was subsequently acquired by Lydall, Inc., a global manufacturer of specialty filtration and advanced materials solutions, in October 2001. At Lydall, Inc., Mr. Knoll served in positions such as Western Regional Manager, Asia Regional Manager and US Business Development Manager until his departure for North Atlantic Capital, a late stage venture capital firm focused on tech-enabled business service sectors, in June 2004, where he served as a principal until joining WEX Inc. in June 2010. Mr. Knoll received a Bachelor of Science in Management with a concentration in Finance from Purdue University. We believe Mr. Knoll is qualified to serve as a member of our board of directors due to the perspective and experience he brings as our Executive Vice President, Corporate Strategy, as well as his extensive experience in business development.

***Christian T. Chandler*** has served as our Executive Vice President, General Counsel since our founding and as a member of our board of directors since July 2025. Prior to the Reorganization, Mr. Chandler additionally served as General Counsel and Executive Vice President of Corporate Development of Anania & Associates, which provided Elmet, Elmet Tech and Microwave Techniques with management services, since January 2024. Since November 2016, Mr. Chandler has additionally served as the President of Turning Acquisitions LLC (d/b/a Wells Wood Turning & Finishing), an industrial wood turning mill company of which Mr. Chandler is also the co-owner. Mr. Chandler began his career as a judicial law clerk for the Hon. Magistrate Judge David Cohen in the United States District Court for the District of Maine in 1989 before joining Curtis Thaxter Stevens Broder & Micoleau LLC ("Curtis Thaxter")

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as an associate in 1990, where he was responsible for corporate and commercial law transactions and litigation. Mr. Chandler became a Member of Curtis Thaxter in 1997 and continued in such capacity until his departure from the firm in 2016. Mr. Chandler received a Bachelor of Arts in History from Kenyon College and a Juris Doctorate from University of Maine School of Law. We believe Mr. Chandler is qualified to serve as a member of our board of directors due to the perspective he brings as our General Counsel and his extensive experience advising businesses from a legal perspective on transactional and litigation matters. Mr. Chandler will resign from our board of directors upon the effectiveness of the registration statement of which this prospectus forms a part.

***Derek Fox*** serves as the President of the CMC division, which position he has held since April 2025. Mr. Fox previously served as Elmet Tech's Chief Financial Officer from November 2015 to March 2025 and as Corporate Controller from May 2011 to August 2012. Mr. Fox additionally held the positions of Finance Director at LabNetwork, a global eCommerce platform for research chemicals and reagents, from January 2015 to November 2015 and Finance Director of Fiber Materials, Inc., an industrial technology company, from August 2012 to January 2015. Mr. Fox also served in various financial roles, including Financial Planning and Analysis Manager for Global Manufacturing and Supply Chain and Supply Chain Controller, at Fairchild Semiconductor from May 2005 until May 2011. Mr. Fox currently serves as the Vice Chair of the board of directors of the Manufacturers Association of Maine. Mr. Fox received a Bachelor of Science from the University of New Hampshire in Business Administration.

***James William Detert*** serves as the President of the EMP division, which position he has held since December 2023. Prior to joining Elmet, Mr. Detert served as Managing Director at mWave Industries LLC, a manufacturer specialized in microwave antenna solutions, from June 2020 to December 2023. Mr. Detert additionally served in several capacities at Molnlycke Health Care ("Molnlycke"), an internationally renowned developer and manufacturer of wound-care and surgical products, from 2010 to 2019, including as Director of U.S. Manufacturing and Business Development Director of the Americas. Mr. Detert also served as President and Chief Executive Officer of Rynel, Inc. ("Rynel"), a developer and manufacturer of specialty foams used in agriculture, personal care and medical care, from 1997 to 2010, when Molnlycke acquired Rynel. Mr. Detert received a Master of Business Administration from Dartmouth College and a Bachelor of Science of Mechanical Engineering and Bachelor of Arts in Psychology from Tufts University.

***David Carpenter*** serves as our Chief Human Resources Officer, which position he has held since August 2025. Prior to joining Elmet, Mr. Carpenter served in several progressively senior human resources leadership roles at Securitas Security Services USA, Inc., a global security solutions company, from April 2012 until April 2025, most recently serving as Vice President of Human Resources and Talent Acquisition. In these roles, Mr. Carpenter led enterprise-wide initiatives spanning human resources operations, compensation design, workforce transformation and large-scale systems implementations. Mr. Carpenter received a Master of Arts in Leadership Studies and a Bachelor of Arts in Management from North Central College.

***Kimberly Monzeglio Anania*** has been appointed to serve as a member of our board of directors, effective upon the effectiveness of the registration statement of which this prospectus forms a part. Ms. Anania has served as the Founder, President and Chief Executive Officer of KMA Human Resources Consulting, LLC ("KMA HR Consulting"), a human resource consulting firm, since 2007. Through KMA HR Consulting, Ms. Anania has provided human resources consulting services for us since May 2023. Ms. Anania served as Chair of the board of directors of Make-A-Wish Foundation of Maine, a nonprofit organization, from 2016 to 2022 and as a board member of Friends of Casco Bay, a nonprofit organization, from 2013 to 2017. Ms. Anania has also served on the board of directors of Atlantic Federal Credit Union Foundation since 2023 and on the Development Committee of Ronald McDonald House of Maine since 2022. Ms. Anania received a Bachelor of Arts in American Studies and History from Muhlenberg College. We believe Ms. Anania is qualified to serve as a member of our board of directors due to her experience as an executive, advisor and member of several boards of directors.

***John M. Chandler*** has been appointed to serve as a member of our board of directors, effective upon the effectiveness of the registration statement of which this prospectus forms a part. Mr. Chandler spent his entire career at BerryDunn, an accounting and consulting firm, from January 1987 to June 2022. Mr. Chandler served in financial and executive roles of increasing responsibility over his career at BerryDunn, including the roles of Chief Executive Officer and Managing Principal from July 1999 to June 2021. Mr. Chandler has served as a member of the Fryeburg Academy Board of Trustees since 2012, including roles as Chair of the Investment Committee and member of the Finance Committee. Mr. Chandler has also served as a board member, Treasurer and Chair of the Audit and Risk Committee from June 2021 to December 2023. Mr. Chandler received a Bachelor of Science in Business Management from the University of Southern Maine and was a licensed Certified Public Accountant in the State of Maine. We

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believe Mr. Chandler is qualified to serve as a member of our board of directors and our audit committee financial expert due to his financial expertise and extensive experience serving as an executive of an established accounting and consulting firm.

***Brian Thomas Deveaux*** has been appointed to serve as a member of our board of directors, effective upon the effectiveness of the registration statement of which this prospectus forms a part. Mr. Deveaux has served as the Chief Executive Officer of Hussey Seating Company, a world-renowned spectator seating manufacturer, since July 2023 and President since July 2022. Mr. Deveaux previously served as Hussey Seating Company's Chief Financial Officer from January 2017 to June 2023, until his appointment as Chief Executive Officer. Prior to joining Hussey Seating Company, Mr. Deveaux was a partner and co-founder of Leaders LLC, a mergers and acquisitions advisory firm, from June 1996 to January 2017, served as Chief Operating Officer and Chief Financial Officer of Seabrook International, a manufacturer of surgical instruments for Fortune 500 companies from April 1998 to April 2001, and held several management positions in operations at Bath Iron Works Corporation, a subsidiary of General Dynamics Corporation (NYSE: GD) from July 1990 to June 1996. Mr. Deveaux has served on the Executive Committee of the board of directors of the Manufacturers Association of Maine since September 2018 and had previously served on the board of directors of The Susan L. Curtis Foundation from July 2016 to December 2024, the United Way of York County from July 2004 to July 2007, and Literacy Volunteers of Maine from May 2003 to December 2009. Mr. Deveaux received a Bachelor of Arts in Math and Economics from Bowdoin College. We believe Mr. Deveaux is qualified to serve as a member of our board of directors due to his extensive leadership, executive and financial experience.

***William Jacob Homiller*** has been appointed to serve as a member of our board of directors, effective upon the effectiveness of the registration statement of which this prospectus forms a part. Mr. Homiller currently serves as the Chief Executive Officer of CarbiCrete Inc. ("CarbiCrete"), a Montreal-based carbon removal technology company, which position he has held since joining the company in February 2024. Prior to joining CarbiCrete, Mr. Homiller served as President and Chief Executive Officer of H.C. Starck from April 2020 through our acquisition of H.C. Starck in late 2023. Mr. Homiller also served in senior global leadership roles with A.W. Chesterton Company as Senior Vice President of Global Business Management and Chief Sales Officer from September 2015 to April 2020, as well as with Cabot Corporation from April 2004 to July 2015. Mr. Homiller received a Master of Business Administration with a concentration in Operations from The Wharton School, a Master of International Studies from The University of Pennsylvania and a Bachelor of Arts in Economics from Tufts University. We believe Mr. Homiller is qualified to serve as a member of our board of directors due to his extensive experience as a C-Suite executive and knowledge and expertise in the manufacturing industry.

***Kathie Merrill Leonard*** has been appointed to serve as a member of our board of directors, effective upon the effectiveness of the registration statement of which this prospectus forms a part. Ms. Leonard has served as founder and Chief Executive Officer of Auburn Manufacturing, Inc., a manufacturer of extreme heat- and fire-resistant textile products for industrial and defense-related applications, since 1979. Ms. Leonard has served as a member on several boards, including the Maine Community College System Board of Trustees from 2020 to 2024, the Lewiston/Auburn Economic Growth Council from 2010 to 2017 and the Central Maine Healthcare Board of Directors from 2001 to 2003. Ms. Leonard received an Honorary Doctor of Science in Business Administration from Thomas College, and an Associate of Arts in Technology Writing from St. Petersburg College and studied Business Administration at the University of Maine. We believe Ms. Leonard is qualified to serve as a member of our board of directors due to her great depth of knowledge and experience regarding the manufacturing and defense industries and experience as an executive and company developer.

***Mark Andrew Miklos*** has been appointed to serve as a member and Vice Chairman of our board of directors, effective upon the effectiveness of the registration statement of which this prospectus forms a part. Mr. Miklos has served as an Executive Partner of Edgewater Capital Partners since July 2025. Prior to joining Edgewater Capital Partners, Mr. Miklos served as Vice President and Senior Vice President at Spirit AeroSystems, Inc., an aerostructure manufacturing company, from January 2020 to November 2024, as Chief Executive Officer of Fiber Materials, Inc., an industrial technology company, from April 2017 to January 2020, and served in roles of increasing responsibility at Morgan Advanced Materials, including Vice President of Sales and Marketing and General Manager, from September 2007 to March 2016. Mr. Miklos received a Bachelor of Science in Sociology from Baldwin Wallace University. We believe Mr. Miklos is qualified to serve as a member of our board of directors due to his robust experience and leadership in the financial and manufacturing industries.

***Peter Woodward*** has been appointed to serve as a member of our board of directors, effective upon the effectiveness of the registration statement of which this prospectus forms a part. Mr. Woodward is the founder of MHW Capital Management, LLC, or MHW, a position he has held since September 2005. MHW specializes in large equity investments in

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public companies implementing operating strategies to significantly improve their profitability. In addition, Mr. Woodward has served as Chief Executive Officer of Innovative Power, LLC since December 2018 and Chief Executive Officer of MEC @ the Basement LLC since February 2020. Mr. Woodward served as the President, Chief Executive Officer and Director of Cartesian, Inc., a specialist consulting firm focused on the global telecommunications, media, and technology industries, from June 2015 to July 2018, and as the Managing Director for Regan Fund Management, LLC, a hedge fund group specializing in active equity investments in public companies and revitalizing their business plans, from June 1996 to August 2005. Mr. Woodward has served as Chairman of the Board of Directors and Chairman of the Audit Committee of TSS, Inc. (NASDAQ: TSSI) since January 2012, and as Chairman of the Board of Directors and Chairman of the Audit Committee of Precision Optical Corporation, Inc. (NASDAQ: POCI) since July 2014. Mr. Woodward received a Master of International Affairs with a concentration in International Economics and Finance from Columbia University and a Bachelor of Arts in Economics from Colgate University. Mr. Woodward is also a Chartered Financial Analyst. We believe Mr. Woodward is qualified to serve as a member of our board of directors due to his extensive financial and executive experience and prior experience servicing and advising public companies.

#### Director Independence and Committees of the Board of Directors
*Director Independence*

Of the directors whom we anticipate will comprise our board of directors upon the effectiveness of the registration statement of which this prospectus forms a part, and based on information provided by each director concerning the director's background, employment and affiliations, we have determined that Brian Deveaux, John Chandler, Kathie Leonard, Peter Woodward, W. Jacob Homiller and Mark Miklos are "independent" directors under the Nasdaq listing standards, while Peter V. Anania, Scott Knoll and Kim Anania are not independent under such standards. Under Rule 5605(a)(2) of the Nasdaq Listing Rules, independent directors must comprise a majority of our board of directors as a public company within one year of listing. We have also determined that each of the three prospective members of the Audit Committee is "independent" for purposes of Section 10A(m)(3) of the Exchange Act and the rules promulgated thereunder and under the Nasdaq listing standards. Further, the board of directors has determined that each of the prospective members of both the Compensation Committee and the Nominating and Corporate Governance Committee is "independent" under the Nasdaq listing standards.

In making our independence determinations, our board of directors considered the current and prior relationships that each non-employee director has with our Company and all other facts and circumstances our board of directors deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director, and the transactions involving them described in the section titled "*Certain Relationships and Related Party Transactions*."

*Board of Directors Committees*

Upon the effectiveness of the registration statement of which this prospectus forms a part, we will have three standing committees of the board of directors: the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee. Each of the board committees will act pursuant to a separate written charter adopted by our board of directors, each of which will be available on our website at *https://www.theelmetgroup.com/* upon the conclusion of this offering. Our board of directors may at any time or from time to time appoint certain other committees in its sole discretion as it deems necessary or appropriate to carry out its functions.

*Audit Committee*

The Audit Committee will consist of John Chandler (Chairman), Brian Deveaux, and Peter Woodward. The board of directors has determined that all of the prospective members of the Audit Committee are "independent," as defined by the Nasdaq listing standards and by applicable SEC rules. In addition, the board of directors has determined that John Chandler is an audit committee financial expert, as that term is defined by the SEC rules, by virtue of having the following attributes through relevant experience: (i) an understanding of generally accepted accounting principles and financial statements; (ii) the ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves; (iii) experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company's financial statements, or experience actively supervising one or more persons engaged in such activities; (iv) an understanding of internal controls and procedures for financial reporting; and (v) an understanding of audit committee functions.

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Our Audit Committee will oversee our corporate accounting and financial reporting process. Among other matters, the audit committee will be responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointing, compensating, retaining, evaluating, terminating, and overseeing our independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussing with our independent registered public accounting firm their independence from management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing with our independent registered public accounting firm the scope and results of their audit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving all audit and permissible non-audit services to be performed by our independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and monitoring our accounting principles, accounting policies, financial and accounting controls, and compliance with legal and regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing our policies on risk assessment and risk strategy and management, including risk policies and risk mitigation strategies by management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing related party transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls, or auditing matters.

*Compensation Committee*

The Compensation Committee will consist of Kathie Leonard (Chairman), Mark Miklos and William Jacob Homiller. The board of directors has determined that both of the prospective members of the Compensation Committee are "independent," as defined by Nasdaq listing standards. The responsibility of the Compensation Committee is to review and approve the compensation and other terms of employment of our Chief Executive Officer and our other executive officers, including all of the executive officers named in the Summary Compensation Table under the heading "*Executive Compensation*" below (the "named executive officers").

Our Compensation Committee will oversee the policies relating to compensation and benefits of our officers and employees. Among other matters, the Compensation Committee will be responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving, or recommending that our board of directors approve, the compensation of our Chief Executive Officer and other executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointing and overseeing any compensation consultants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving or making recommendations to our board of directors regarding our incentive compensation and equity-based plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and making recommendations to our board of directors with respect to director compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and discussing annually with management our "Compensation Discussion and Analysis" disclosure if and to the extent then required by SEC rules; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• preparing the compensation committee report if and to the extent then required by SEC rules.

*Nominating and Corporate Governance Committee*

The Nominating and Corporate Governance Committee will be comprised of William Jacob Homiller (Chairman), Kathie Leonard and Mark Miklos. The committee members are independent under applicable Nasdaq rules and regulations. The Nominating and Corporate Governance Committee will be responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying individuals qualified to become members of our board of directors, consistent with criteria approved by our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and making recommendations to our board of directors with respect to management succession planning;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating the overall effectiveness of our board of directors and its committees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing developments in corporate governance compliance and developing and recommending to our board of directors a set of corporate governance guidelines and principles.

#### Compensation Committee Interlocks and Insider Participation
None of our officers currently serves, and in the past year has not served, as a member of the compensation committee of any entity that has one or more officers serving on our board of directors.

#### Family Relationships
Kimberly Anania, a director nominee, is the sister-in-law of Peter V. Anania, our Chief Executive Officer and Chairman.

#### Code of Business Conduct and Ethics and Insider Trading Policy
Prior to the consummation of this offering, our board of directors will adopt a Code of Business Conduct and Ethics (the "Code of Ethics") and an Insider Trading Policy, each of which will be filed as exhibits to the registration statement of which this prospectus forms a part. Once filed, you can review these documents by accessing our public filings at the SEC's web site at *www.sec.gov*. The Code of Ethics will also be available on our website at *https://www.theelmetgroup.com*. In addition, a copy of the Code of Ethics will be provided without charge upon request from us. We intend to disclose any amendments to or waivers of certain provisions of our Code of Ethics in a Current Report on Form 8-K or on our website.

#### Limitation of Directors Liability and Indemnification
The Delaware General Corporation Law authorizes corporations to limit or eliminate, subject to certain conditions, the personal liability of directors to corporations and their stockholders for monetary damages for breach of their fiduciary duties. Our current amended certificate of incorporation limits, and our amended and restated certificate of incorporation that will be in effect immediately prior to the consummation of this offering will limit, the liability of our directors to the fullest extent permitted by Delaware law. In addition, we have entered into, or will enter into, indemnification agreements with all of our directors and executive officers whereby we agree to indemnify those directors and officers to the fullest extent permitted by law, including indemnification against expenses and liabilities incurred in legal proceedings to which the director or officer was, or is threatened to be made, a party by reason of the fact that such director or officer is or was a director, officer, employee or agent of ours, provided that such director or officer acted in good faith and in a manner that the director or officer reasonably believed to be in, or not opposed to, our best interests.

We have director and officer liability insurance to cover liabilities our directors and officers may incur in connection with their services to us, including matters arising under the Securities Act. Our amended and restated certificate of incorporation and amended and restated bylaws that will be in effect immediately prior to the consummation of this offering will also provide that we will indemnify our directors and officers who, by reason of the fact that he or she is or was one of our officers or directors of our Company, is involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative related to their board role with us.

There is no pending litigation or proceeding involving any of our directors, officers, employees or agents in which indemnification will be required or permitted. We are not aware of any threatened litigation or proceeding that may result in a claim for such indemnification.

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#### EXECUTIVE COMPENSATION
This section discusses the material components of the executive compensation program for our executive officers who are named in the "Summary Compensation Table" below.

In 2025, our Chief Executive Officer and Chairman (who is our principal executive officer) and our two other named executive officers, and their positions were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Peter V. Anania, Chief Executive Officer and Chairman;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Derek Fox, President of the CMC division; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Michael Steven Lee, Chief Financial Officer of the Company.

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 following the completion of this offering 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 years ended December 31, 2025 and 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Name and Principal Position** | **Year** | **Salary<sup>(1)</sup><br>($)** | **Bonus<br>($)** | **Stock<br>Awards<sup>(2)</sup><br>($)** | **Non-Equity<br>Incentive Plan<br>Compensation<sup>(3)</sup><br>($)** | **Nonqualified<br>Deferred<br>Compensation<br>Earnings<br>($)** | **All Other<br>Compensation<br>($)** | **Total<br>($)** |
|  Peter V. Anania | 2025 | 250962 |  |  |  |  | 60069<br><sup>(9)</sup> | 311031 |
| &nbsp;&nbsp;&nbsp; Chief Executive Officer and Chairman<sup>(4)</sup> | 2024 | 251923 |  |  |  |  | 74529<br><sup>(10)</sup> | 326452 |
|  Derek Fox | 2025 | 323635 |  | 2298850 | 177277 |  | 93075<br><sup>(11)</sup> | 2892837 |
| &nbsp;&nbsp;&nbsp; President of our CMC division<sup>(5)</sup> | 2024 | 284964 | 788527<br><sup>(7)</sup> |  | 185009 |  | 86295<br><sup>(12)</sup> | 1344795 |
|  Michael Steven Lee<sup>(6)</sup> | 2025 | 240000 | 40000<br><sup>(8)</sup> | 1409975 | 96000 |  | 5885<br><sup>(13)</sup> | 1791860 |
| &nbsp;&nbsp;&nbsp; Chief Financial Officer | 2024 |  |  |  |  |  |  |  |

---

____________

(1) Amounts reflect the base salary actually paid to each named executive officer in the fiscal years ended December 31, 2025 and 2024.

(2) Amounts reported represent the aggregate grant date fair value of restricted stock awards granted to our executive officers during 2025, under either our 2016 Plan or 2025 Plan computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, *Compensation — Stock Compensation* ("ASC Topic 718"), excluding the effect of estimated forfeitures. The assumptions used in calculating the grant date fair value of the restricted stock awards reported in these columns are set forth in the notes to our audited consolidated financial statements included elsewhere in this prospectus. These amounts will not reflect the actual economic value that may be realized by the named executive officers.

(3) Amount reflects annual performance-based incentive cash compensation that were earned by each named executive officer based on the Company's performance during the fiscal years ended December 31, 2025 and December 31, 2024.

(4) Mr. Anania's compensation received for 2025 and 2024 was in connection with his position as Chief Executive Officer of A&A and Chief Executive Officer of Elmet Tech.

(5) Mr. Fox's compensation received for 2025 was in connection with his position as President of our CMC division and for 2024 was in connection with his position as Chief Financial Officer of our CMC division (except for the bonus payment referenced in footnote 7 to this table).

(6) Mr. Lee was hired on March 17, 2025 and compensation received for 2025 was in connection with his position as Chief Financial Officer of A&A.

(7) Amount reflects the bonus paid to Mr. Fox in November 2024 for his promotion to President of our CMC division, which became effective as of March 2025.

(8) Mr. Lee received a sign-on bonus in connection with his commencement of employment.

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(9) Amount in this column reflects an automobile allowance of $10,200, credit card points converted to cash of $27,508, personal credit card payments of $6,625 and personal expenses of Mr. Anania paid by the Company on his behalf of $15,736.

(10) Amount in this column reflects an automobile allowance of $10,200, credit card points converted to cash of $29,791, personal credit card payments of $13,700 and personal expenses of Mr. Anania paid by the Company on his behalf of $20,838.

(11) Amount reflects matching contributions to the 401(k) Plan (as defined below) of $14,000, board fees of $50,000, an automobile allowance of $10,800, company profit sharing contribution to the 401(k) Plan (as defined below) totaling $17,500, and personal expenses of Mr. Fox paid by the Company on his behalf of $775.

(12) Amount reflects matching contributions to the 401(k) Plan (as defined below) of $11,073, board fees of $50,000, an automobile allowance of $10,800, company profit sharing contribution to the 401(k) Plan (as defined below) totaling $13,841, and personal expenses of Mr. Fox paid by the Company on his behalf of $581.

(13) Amount reflects matching contributions to the A&A 401(k) plan of $5,885.

#### Narrative to Summary Compensation Table

#### 2025 Salaries
The named executive officers receive a base salary to compensate them for services rendered to our Company. 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. The base salaries for Mr. Anania, Mr. Fox and Mr. Lee for 2025 were $250,962, $323,635 and $240,000, respectively.

#### 2025 Bonuses
In March of 2025, Mr. Lee joined the company as CFO of A&A. As part of the hiring, Mr. Lee received a one-time discretionary bonus of $40,000.

#### 2025 Non-Equity Incentive Plan Compensation
For 2025, Mr. Anania, being the primary shareholder of A&A, did not have a structured incentive compensation plan.

For 2025, Mr. Fox's target bonus was 50% of his annual base salary. Eligibility was based upon the achievement of pre-determined performance goals of Elmet Tech for 2025, including goals related to successfully succeeding Mr. Anania as President of Elmet Tech, as well as financial goals of adjusted EBITDA and cash flow. Under the 2025 bonus program, participants were eligible to receive up to 170% of the participant's target bonus opportunity. Based upon the attainment of applicable performance measures, his 2025 annual bonus was determined to be earned at approximately 110% of target.

For 2025, Mr. Lee's target bonus was 40% of his annual base salary. Eligibility was based upon the achievement of pre-determined performance goals associated with preparation for this offering, as well as financial goals of adjusted EBITDA. Based upon the attainment of applicable performance measures, his 2025 annual bonus was determined to be earned at approximately 100% of target.

#### 2025 All Other Compensation
The named executive officers were eligible for certain other benefits as part of their employment during 2025, including matching 401(k) plan contributions paid by the Company, automobile allowances, payment of certain personal expenses, and profit sharing.

#### Equity Compensation
<u><u>Equity Compensation Plans</u></u>

Prior to this offering, Elmet Tech maintained the 2016 Plan, and Elmet maintained the 2025 Plan, each in order to provide our service providers the opportunity to acquire a proprietary interest in our success. For additional information about the 2016 and 2025 Plans, please see "— *Equity Incentive Plans*" below. As mentioned below, in connection with the completion of this offering, no further awards will be granted under either the 2016 Plan or the 2025 Plan.

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Prior to the consummation of this offering, we expect to adopt a new 2026 Equity Incentive Plan (the "2026 Plan") in order to facilitate the grant of cash and equity incentives to directors, employees (including our named executive officers) and consultants of our Company and certain of our affiliates and to enable us to obtain and retain the services of these individuals, which is essential to our long-term success. For additional information about the 2026 Plan, please see "— *2026 Equity Incentive Plan*" below.

<u><u>2025 Equity Grants</u></u>

The following table sets forth the stock awards granted to our named executive officers in the 2025 fiscal year.

---

| | | |
|:---|:---|:---|
|  **Named Executive Officer** | **Type of Award** | **# Granted** |
|  Peter V. Anania | N/A |  |
|  Derek Fox | Restricted Stock | 328390<br><sup>(1)</sup>  |
|  Michael Steven Lee | Restricted Stock | 122500<br><sup>(2)</sup>  |

---

____________

(1) Mr. Fox was granted 14,546 unvested restricted membership units of Elmet Tech under our 2016 Plan on April 1, 2025, which were subsequently converted to 328,390 unvested shares of Class A restricted stock of the Company upon the Reorganization. All 328,390 shares of restricted stock vest upon the date which is 180 days after the consummation of this offering, subject to continued employment. Until vested, the Class A restricted stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, is subject to the risk of forfeiture, may not be voted, and shall accrue, but not receive, dividends.

(2) Mr. Lee was granted 98,000 shares of Class A restricted stock under our 2025 Plan on September 1, 2025, and 24,500 shares of Class A restricted stock under our 2025 Plan on October 15, 2025. The 122,500 shares of Class A restricted stock vest according to the following schedule: 73,500 shares vest upon the consummation of this offering, 24,500 shares vest on March 17, 2027, and 24,500 shares vest on March 17, 2028, in each case subject to continued employment. Until vested, the Class A restricted stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, is subject to the risk of forfeiture, may not be voted, and shall accrue, but not receive, dividends.

#### Other Elements of Compensation
<u><u>Retirement Plans</u></u>

We currently maintain two 401(k) retirement savings plans (each, a "401(k) Plan") for our employees, including our named executive officers, who satisfy certain eligibility requirements. Our named executive officers are eligible to participate in a 401(k) Plan on the same terms as other full-time employees who are eligible for each 401(k) Plan. The Code allows eligible employees to defer a portion of their compensation, within prescribed limits, on a pre-tax basis through contributions to a 401(k) Plan. Currently, one of our 401(k) Plans provides for discretionary matching contributions that vest over five years, and one provides for matching contributions of 100% of the first 3% of a participant's compensation contributed to the 401(k) Plan and 50% of the next 2% contributed, in addition to discretionary matching contributions, and non-elective profit sharing contributions. We believe that providing a vehicle for tax-deferred retirement savings though our 401(k) Plans 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.

<u><u>Employee Benefits</u></u>

All of our full-time employees, including our named executive officers, are eligible to participate in our health and welfare plans, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• medical, dental and vision benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• medical and dependent care flexible spending accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• short-term and long-term disability insurance and accidental death and dismemberment insurance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• life insurance.

<u><u>No Tax</u> <u>Gross-Ups</u></u>

We generally have not made gross-up payments to cover our named executive officers' personal income taxes that may pertain to any of the compensation paid or provided by our Company.

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#### Outstanding Equity Awards at Fiscal Year-End
The following table summarizes the number of shares of common stock underlying outstanding equity incentive plan awards for each named executive officer as of December 31, 2025. Each equity award listed in the following table was granted under either the 2016 Plan or the 2025 Plan (each as defined below).

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** |
|  **Name** | **Grant<br> Date** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Exercisable** | **Number of<br> Securities<br> Underlying<br> Unexercised<br> Options (#)<br> Unexercisable** | **Option<br> Exercise<br> Price<br> ($)** | **Option<br> Expiration<br> Date** |
|  Peter V. Anania | —  | —  | —  | —  | —  |
|  Derek Fox<sup>(1)</sup> | April 1, <br>2022 |  | 310420 | 0.91 | December 31, <br>2027 |
|  Michael Steven Lee |  |  |  |  |  |

---

____________

(1) As of December 31, 2025, Mr. Fox held 13,750 unit appreciation rights in Elmet Tech granted under the 2016 Plan with a base price of $20.50 per unit because the Reorganization had not yet occurred. All unit appreciation rights held by Mr. Fox were converted into SARs in The Elmet Group Co. with a base price of $0.91 upon the Reorganization. The numbers shown in this table represent what Mr. Fox would have held had the Reorganization happened prior to or on December 31, 2025 and Mr. Fox's unit appreciation rights had been converted into stock appreciation rights of the Company. Mr. Fox's stock appreciation award vests upon either (i) an IPO of the Company prior to December 31, 2026 or (ii) the sale of the Company for a purchase price in excess of $17,371,560, in each case subject to his continued employment. Mr. Fox's award is expected to vest and be settled in cash in connection with the closing of this offering.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** |
|  **Name** | **Number of <br>shares or units <br>of stock that <br>have not vested** | **Market value of <br>shares or units <br>of stock that <br>have not vested** | **Equity incentive plan <br>awards: Number of <br>unearned shares, <br>units or other rights <br>that have not vested** | **Equity incentive <br>plan awards: Market <br>or payout value of <br>unearned shares, <br>units or other rights <br>that have not vested** |
|  Peter V. Anania |  |  |  |  |
|  Derek Fox | 328390<br><sup>(1)</sup> | 2298850<br><sup>(3)</sup> |  |  |
|  Michael Steven Lee | 122500<br><sup>(2)</sup> | 1409975<br><sup>(3)</sup> |  |  |

---

____________

(1) Mr. Fox was granted 14,546 unvested restricted membership units of Elmet Tech on April 1, 2025, which were subsequently converted to 328,390 unvested shares of Class A restricted stock of the Company upon the Reorganization. All 328,390 shares of restricted stock vest upon the date which is 180 days after the consummation of this offering, subject to continued employment. Until vested, the Class A restricted stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, is subject to the risk of forfeiture, may not be voted, and shall accrue, but not receive, dividends.

(2) Mr. Lee was granted 98,000 shares of Class A restricted stock on September 1, 2025, and 24,500 shares of Class A restricted stock on October 15, 2025. The 122,500 shares of Class A restricted stock vest according to the following schedule: 73,500 shares vest upon the consummation of this offering, 24,500 shares vest on March 17, 2027, and 24,500 shares vest on March 17, 2028, in each case subject to continued employment. Until vested, the Class A restricted stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, is subject to the risk of forfeiture, may not be voted, and shall accrue, but not receive, dividends.

(3) Amounts reported represent the aggregate grant date fair value of restricted stock awards granted to our executive officers during 2025, under either our 2016 Plan or 2025 Plan computed in accordance with ASC Topic 718, excluding the effect of estimated forfeitures. The assumptions used in calculating the grant date fair value of the restricted stock awards reported in these columns are set forth in the notes to our audited consolidated financial statements included elsewhere in this prospectus. These amounts will not reflect the actual economic value that may be realized by the named executive officers.

#### Executive Compensation Arrangements

#### Existing Agreements
*Peter V. Anania*

Mr. Anania is not currently employed pursuant to an employment arrangement.

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*Derek Fox*

Mr. Fox is not currently employed pursuant to an employment arrangement.

*Michael Steven Lee*

Mr. Lee is employed pursuant to an employment arrangement, effective January 13, 2025, with A&A, which became a subsidiary of the Company upon the consummation of the Reorganization (the "Lee Agreement"). Under the terms of the Lee Agreement, Mr. Lee commenced employment as A&A's Chief Financial Officer on or about March 17, 2025, and the initial term of the Lee Agreement extends for 36 months, with the possibility of renewal for additional 12-month periods upon mutual agreement; otherwise, Mr. Lee's employment would continue on an at-will basis. In connection with this offering, the Lee Agreement is expected to be superseded and replaced by an agreement with the Company, as described below.

Pursuant to the Lee Agreement, A&A pays Mr. Lee: (i) a base salary of $300,000 per annum, effective January 1, 2025, paid according to the company's normal payroll schedule and subject to annual review by the President, (ii) an employment bonus of $40,000, payable within 30 days of commencement of the Lee Agreement, (iii) an annual bonus of up to 40% of his base salary, contingent on achieving company-set goals, which are not guaranteed, and (iv) a restricted stock grant in the expected amount of approximately 1% of the equity interests in the Company post-conversion, with the shares vesting: one-half on the earlier of an IPO or the third anniversary of employment (if still employed), one-fourth on the second anniversary of Mr. Lee's employment commencement, and one-fourth on the third anniversary of Mr. Lee's employment commencement, with full vesting upon a change of control. Mr. Lee is also eligible for additional long-term incentives.

If Mr. Lee is terminated without cause, dies, or becomes permanently disabled during the term (each an "Eligible Termination"), Mr. Lee is entitled to receive severance pay which is contingent on a release of claims. Mr. Lee will be entitled to receive six months' base salary if his Eligible Termination occurs within the first 18 months of the term, or three months' base salary thereafter, in each case in addition to continued contributions toward the costs of Mr. Lee's health insurance premiums (as if he were an active employee) and payment of the premiums for life and disability insurance and other benefit programs that were in effect at the time of termination for the duration of the applicable base salary continuation period, and accrued obligations.

The Lee Agreement also includes post-termination, non-competition, non-solicitation, and confidentiality obligations that survive for 24 months post-termination (or indefinitely for confidentiality).

#### New Arrangements
*General Description of New Employment Letters*

The following is a general description of the employment letters (the "Employment Letters") we anticipate entering into with certain of our executive officers, including our named executive officers, prior to the consummation of this offering.

Mr. Anania will report to our board of directors and Mr. Fox and Mr. Lee will report to Mr. Anania. The Employment Letters specify each executive's base salary and target bonus. Additionally, the employment letters specify that the executives will be eligible to (A) receive equity compensation awards, (B) participate in the Company's executive severance policy, (C) participate in the Company's executive change in control severance policy, and (D) participate in the Company's employee benefit plans. The Employment Letters also require the executives to reaffirm any restrictive covenants that may be in effect. The foregoing summary of the form of employment letters is not complete and is qualified by reference to the full text of the form Employment Letters, copies of which are filed as Exhibits 10.36 and 10.37 to the registration statement of which this prospectus forms a part.

*Severance Plans*

In connection with this offering the Company will offer certain executive officers the ability to receive severance benefits under its Executive Severance Policy (the "Severance Policy") or its Executive Change in Control Severance Policy (the "CIC Severance Policy" and together, the "Severance Policies"). The purpose of the Severance Policies is to provide a consistent framework for severance benefits for selected executives of the Company in the event of certain termination scenarios. The Severance Policies are expected to be "top hat plans" under the Employee Retirement Income Security Act of 1974, as amended.

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Under the Severance Policies, executives with the title of "Director" and above who are selected by the Board of the Compensation Committee are eligible to participate. All benefits under the Severance Policies are subject to the covered executives' execution and non-revocation of a release of claims.

Under the Severance Policy, upon a termination without "cause" (as defined in the Severance Policy), covered executives are entitled to the following:

---

| | | |
|:---|:---|:---|
|  **Benefit Component** | **CEO** | **Other Executives** |
|  Cash Severance | 1x Base Salary | 0.5x Base Salary |
|  Prorated Annual Bonus | Actual performance |  |
|  COBRA Continuation | Up to 12 months | Up to 6 months |
|  Equity Treatment | Except as otherwise provided under the terms of an award agreement or equity plan: <br> &nbsp;&nbsp;&nbsp;&nbsp;• All unvested time-based equity awards will be forfeited as of the termination date; and <br> &nbsp;&nbsp;&nbsp;&nbsp;• Outstanding performance-based awards, including performance stock units, shall vest on a prorated basis and be paid based on actual performance, at the time determined under the applicable award agreement or plan. | Except as otherwise provided under the terms of an award agreement or equity plan: <br> &nbsp;&nbsp;&nbsp;&nbsp;• All unvested time-based equity awards will be forfeited as of the termination date; and <br> &nbsp;&nbsp;&nbsp;&nbsp;• Outstanding performance-based awards, including performance stock units, shall vest on a prorated basis and be paid based on actual performance, at the time determined under the applicable award agreement or plan. |

---

The cash severance is payable in substantially equal installments over the applicable severance period in accordance with the Company's regular payroll practices. Prorated bonuses are payable at the same time annual bonuses are otherwise paid to similarly situated executives for the applicable performance year. Additionally, under the Severance Policy, covered executives receive the following benefits upon a termination due to death, disability, and retirement:

---

| | |
|:---|:---|
|  **Termination Event** | **Equity Treatment** |
|  Death | Vesting of unvested equity awards as of the date of death, to the extent permitted under the applicable award agreement and equity plan |
|  Disability | Continued vesting of time-based equity awards on the original schedule, to the extent provided under the applicable equity award agreement and equity plan |
|  Retirement | Prorated vesting and payout of performance-based awards at the normal time of payout, based on actual performance, to the extent provided under the applicable award agreement and plan |

---

Under the CIC Severance Policy, upon a termination without "cause" (as defined in the Severance Policy) or a termination for "good reason" (as defined in the CIC Severance Policy), each within the period beginning on the date a change in control is consummated and ending on the first anniversary of such date, covered executives are entitled to the following:

---

| | |
|:---|:---|
|  **Benefit Component** | **All Covered Executives** |
|  Cash Severance (Salary) | 1x Base Salary |
|  Cash Severance (Bonus) | 1x Target Bonus |
|  Prorated Annual Bonus | Prorated annual bonus for the year of termination, based on actual performance |
|  COBRA Continuation | Up to 12 months |
|  Time-Based Equity Awards | Full acceleration |
|  Performance Awards / PSUs | Vest and settle at target performance |

---

The cash severance is payable in a lump sum on the first administratively practicable date following the effective date of the covered executive's release of claims, but in all events within 60 days following the termination. The prorated annual bonus is payable at the same time annual bonuses are otherwise paid to similarly situated executives for the applicable performance year.

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The CIC Severance Policy also contains "best net" cutback language for purposes of Section 280G of the Code. The Severance Policies will be administered by the Compensation Committee, and the Board or the Compensation Committee may amend, modify, suspend, or terminate the Severance Policies at any time. No covered executive will be entitled to duplicate severance, bonus, benefits continuation, or equity treatment under the Severance Policies or any other plan or program maintained by the Company.

#### Director Compensation
During 2025, the directors of The Elmet Group Co. were Peter V. Anania, Scott Knoll and Christian T. Chandler. Mr. Anania's compensation is set forth in the summary compensation table above, and the compensation paid to Mr. Knoll and Mr. Chandler during 2025 is set forth in the following table.

#### 2025 Director Compensation

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Name<sup>(1)</sup><sup>(2)</sup>** | **Fees Earned <br>or Paid <br>in Cash<br>($)** | **Stock Awards <br>($)<sup>(3)</sup>** | **Non-Equity <br>Incentive Plan <br>Compensation <br>($)** | **All Other <br>Compensation <br>($)<sup>(4)</sup>** | **Total <br>($)** |
|  Scott W. Knoll |  |  | 50000 | 265950 | 315950 |
|  Christian T. Chandler |  |  | 30000 | 207720 | 237720 |

---

____________

(1) Mr. Anania also served as a director in 2025. His compensation is reported above in the summary compensation table.

(2) Mr. Knoll and Mr. Chandler are also employees of the Company. As such, they did not receive any compensation for their service on our board in 2025.

(3) As of the end of 2025, Mr. Knoll held no outstanding option awards and no outstanding stock awards. As of the end of 2025, Mr. Chandler held no outstanding option awards and no outstanding stock awards.

(4) All other compensation is comprised of compensation paid for services as employees of the Company.

#### Director Compensation Agreements
*Scott W. Knoll*

Mr. Knoll is employed pursuant to an employment agreement effective January 1, 2017, with A&A, which became a subsidiary of the Company upon effectiveness of the Reorganization (the "Knoll Agreement"). The Knoll Agreement has a one-year term that automatically renews indefinitely unless either party gives the other at least sixty days prior written notice of nonrenewal. Pursuant to the Knoll Agreement, Mr. Knoll originally served as A&A's Vice President of Corporate Development, and he now serves as Elmet's Executive Vice President, Corporate Strategy and as a Director.

The Knoll Agreement entitles Mr. Knoll to receive an annual salary of $125,000 and the following bonuses: (i) a bonus of 38,877 shares of A&A's common stock which was paid upon Mr. Knoll's execution of the Knoll Agreement, (ii) a bonus of $50,000 paid in September 2017 for any and all deals transacted prior to the signing of the Knoll Agreement, (iii) a bonus of 2% of the acquisition price paid on any buy side transaction originated or led by Mr. Knoll which is completed and A&A is reimbursed for said bonus (a "Buy Side Bonus"), (iv) for buy side transactions upon which Mr. Knoll receives a Buy Side Bonus that are thereafter sold, a bonus of 3% of the proceeds received by AAI, minus the acquisition price, (v) if AAI's portfolio company mWAVE Industries LLC ("mWAVE") is sold prior to December 31, 2018, a bonus of 1% of the proceeds received by AAI, (vii) if Elmet Technologies LLC is sold, a bonus of 5% of the proceeds minus two times AAI's investment in Elmet, (viii) for achievement by mWAVE during 2017 of operating net revenues in excess of $2,650,000 and EBITDA in excess of $350,000, a $10,000 bonus, (ix) starting in 2018, a bonus equal to $2,500 for each incremental 2.5% increase in the aggregate operating EBITDA of the portfolio companies owned by AAI for the entire twelve months of the calendar year, capped at $25,000 per year, provided that aggregate operating EBITDA is positive, and (x) also starting in 2018, Mr. Knoll has been eligible to receive a bonus equal to $2,500 for each incremental 2.5% increase in the aggregate operating net revenues of the portfolio companies owned by AAI for the entire twelve months of the calendar year, capped at $25,000 per year, provided the aggregate operating EBITDA for the portfolio companies owned by AAI is positive for the year. Additionally, A&A is required to reimburse Mr. Knoll for all reasonable expenses in accordance with its policies.

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Either A&A or Mr. Knoll may terminate the Knoll Agreement without "cause" (as defined in the Knoll Agreement) upon thirty days' written notice of such termination, and Mr. Knoll will only be entitled to the compensation he has accrued through the termination date. The Knoll Agreement includes standard trade secret and confidentiality restrictive covenants. In connection with this offering, the Knoll Agreement will be terminated and Mr. Knoll will enter into an Employment Letter substantially similar to the agreement described above for our named executive officers.

*Christian T. Chandler*

For his services to the Company as Executive Vice President, General Counsel, Mr. Chandler is entitled to receive an annual base salary of $175,000 and is eligible for an annual discretionary bonus. Additionally, Mr. Chandler is eligible to participate in the customary health, welfare and fringe benefit plans we provide to our employees and we pay 100% of Mr. Chandler's health insurance premiums. Mr. Chandler does not receive compensation for his service as a member of our board of directors and is not employed pursuant to a formal written agreement. In connection with this offering, Mr. Chandler will enter into an Employment Letter substantially similar to the agreement described above for our named executive officers.

#### Post-IPO Director Compensation Program
Prior to the consummation of this offering, we anticipate that our board of directors will adopt and our stockholders will approve a nonemployee director compensation program (the "Director Compensation Program"), which will become effective in connection with the completion of this offering. The Director Compensation Program will provide for annual retainer fees and long-term equity awards for each of our non-employee directors (each, an "Eligible Director"). The material terms of the Director Compensation Program are summarized below.

The Director Compensation Program consists of the following components:

<u><u>Cash Compensation</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual Retainer: $20,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual Chairman Retainer: $20,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual Vice Chairman Retainer: $10,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual Committee Chair Retainer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Audit: $12,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compensation: $6,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nominating and Governance: $6,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual Committee Member (Non-Chair) Retainer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Audit: $6,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compensation: $3,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nominating and Governance: $3,000

Annual cash retainers will be paid in quarterly installments in arrears and will be pro-rated for any partial calendar quarter of service.

<u><u>Equity Compensation</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Annual Grant:* An Eligible Director who is serving on the board of directors as of the date of the annual meeting of the Company's stockholders each calendar year beginning with calendar year 2027 will be granted, on such annual meeting date, a RSU award with a value of approximately $20,000 (each, an "Annual Grant") under our 2026 Plan. Each Annual Grant will vest immediately upon issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Initial Grant:* Each Eligible Director who is serving on the board of directors at the effectiveness of the registration statement of which this prospectus forms a part or initially elected or appointed to serve on the board of directors after the effectiveness of the registration statement of which this prospectus forms a part

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will automatically be granted a RSU award with a value equal to $20,000 (each, an "Initial Grant") under our 2026 Plan. The Initial Grants to directors serving at the effectiveness of the registration statement will vest on December 31, 2026, subject to continued service as a director as of such date.

Compensation under our Director Compensation Program will be subject to the annual limits on non-employee director compensation set forth in the 2026 Plan, as described below.

#### Incentive Plans

#### Amended and Restated 2016 Unit Appreciation Rights Plan
We maintain the 2016 Plan, which was initially adopted by our subsidiary, Elmet Technologies LLC. We assumed the 2016 Plan in connection with the Reorganization and have converted the outstanding awards to cover shares of our common stock. The material terms of the 2016 Plan (as amended and restated) are summarized below. This is a summary only and is qualified in its entirety by reference to the full terms and conditions of the 2016, which is attached as an exhibit to the registration statement of which this prospectus forms a part. In connection with this offering, the Company will terminate the 2016 Plan; however, all outstanding awards made under the 2016 Plan shall remain outstanding and subject to its terms.

*Eligibility*

Officers and key employees of the Company are eligible to SARs under the 2016 Plan.

*Administration*

The 2016 Plan will be administered by a committee appointed by the board of directors of the Company (the "Committee"). The Committee will have sole, full, and final authority in its discretion to (a) designate eligible officers and key employees to receive SARs, (b) determine the SARs to be granted, (c) determine the vesting schedule for SARs, (d) construe and interpret plan provisions and adopt, amend, and rescind rules and regulations for plan administration, (e) decide all questions of fact arising in the application of the plan, (f) require any additional provisions in letter agreements granting SARs (including noncompetition, nonsolicitation, and confidentiality provisions), (g) advise the Board with regard to the amount of the SAR pool, and (h) make all other determinations necessary or advisable for the administration of the 2016 Plan.

*Share Reserve*

As of the date of this offering, 987,700 SARs have been issued under the 2016 Plan. The number of SARs that may be issued from the 2016 Plan is unlimited; however, the Company does not anticipate making additional grants under the 2016 and will terminate the 2016 Plan in connection with this offering. All of the issued SARs are in the same class and have the same base SAR value.

The SARs may be subject to certain adjustments in the event of certain changes in the capitalization of the Company (see "*— Equitable Adjustments*" below).

*Types of Awards*

The 2016 Plan provides only for the grant of SARs. Except as otherwise determined by the Committee, each SAR has a base value that is equal to the fair market value of the Company on a per share basis when issued. The SARs may be subject to vesting, as determined by the Committee in an award letter effectuating the grant of the SARs; however, so long as a participant is an employee of the Company upon a payment event, all outstanding unvested SARs will fully accelerate and vest prior to or as of the closing of the payment event.

The SARs issuable under the 2016 Plan are nontraditional in that they do not have an exercise feature. Instead, they settle upon the occurrence of (1) a payment event, which generally means the earliest to occur of (a) a merger or consolidation of the Company or a sale of all or substantially all of the assets to any purchasers who are not shareholders of the Company at the 2016 Plan's effective date, in which the outstanding shares of the Company are exchanged for securities, cash, or other property of any other corporation or business entity, (b) an underwritten public offering of the Company's equity securities pursuant to an effective Registration Statement filed under the Securities

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Act, that is completed on or before December 31, 2026, or (c) the dissolution and winding up of the Company, or (2) the death of the participant. All the outstanding SARs under the 2016 Plan are expected to be settled in connection with this offering.

Upon the death of a participant, whether or not the participant is an employee at the time of his or her death, the Company will make cash payments with respect to the participant's vested SARs within 75 days of the appointment of a personal representative. The cash payments will be made over a period of five years in equal monthly installments.

Upon the occurrence of a payment event, the Company will make a cash payment or, at the Company's election, a participant with outstanding vested SARs may receive a number of shares, units, securities of, or interests in the business entity resulting from the payment event equal to the number of vested SARs held by the participant times either the aggregate net proceeds paid to stockholders as a result of the payment event or the fair market value of a share of Company stock, in each case less the aggregate base price. Payments will be made within 75 days of the closing of the payment event.

*Equitable Adjustments*

If the Company determines it necessary to alter the number of SARs hereunder due to a change in the capital structure of the Company, such modification will be made proportionately so that the aggregate base SAR value or initial calculation price after the modification is not less than the aggregate base SAR value or initial calculation price before the modification, in compliance with Code Section 409A and Treasury Regulation Section 1.409A-1(b)(5)(v).

*Amendment and Termination*

The Committee may amend or terminate the 2016 Plan at any time. All SARs granted under the 2016 Plan will be subject in all respects to the provisions of the 2016 Plan as amended from time to time; provided, however, that no such amendment or termination will materially and adversely affect any right of a participant with respect to any SAR, including an unvested SAR, granted before the date of such action without the consent of such participant. Any SAR which is outstanding at the termination of the 2016 Plan will survive any such termination in accordance with such SAR's terms. The authorization of additional classes of SARs will not be deemed or considered an amendment of the 2016 Plan and the number of SARs which may be authorized under the 2016 Plan is unlimited. In connection with the closing of this offering, the 2016 Plan is being terminated and no further awards will be made under the 2016 Plan following such termination.

#### 2025 Equity Incentive Plan
We maintain the 2025 Plan, which was initially adopted on April 1, 2025. The material terms of the 2025 Plan (as amended and restated) are summarized below. In connection with this offering, the 2025 Plan will be terminated and following such termination, no further awards will be made thereunder.

*Termination*

The 2025 Plan is scheduled to expire on the tenth anniversary of its effective date; however, upon the effectiveness of the 2026 Plan, the 2025 Plan will terminate and we will not make any further awards under the 2025 Plan. However, any outstanding awards granted under the 2025 Plan will remain outstanding, subject to the terms of the 2025 Plan and applicable award agreements.

*Eligibility and Administration*

Our employees, board of directors, and consultants are eligible to receive grants of nonqualified stock options, or NSOs, restricted shares, and stock appreciation rights, or SARs. Only our employees may receive grants of incentive stock options, or ISOs. The 2025 Plan will be administered by the Compensation Committee of our board of directors. Subject to the provisions of the 2025 Plan, our board of directors has the authority and discretion to take any actions it deems necessary or advisable for the administration of the 2025 Plan.

*Limitation on Awards and Shares Available*

An aggregate of 300,000 shares of our common stock have been authorized for issuance under the 2025 Plan. Up to 20,000 of these shares may be issued as an ISO. In the event that (a) all or any portion of any award granted or offered under the 2025 Plan can no longer under any circumstances be exercised or (b) any shares are reacquired by

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us which were initially subject to an award agreement, the shares allocable to the unexercised portion of such award or the shares so reacquired will again be available for issuance under the 2025 Plan until the termination of the 2025 Plan, which will occur in connection with this offering.

*Awards*

The 2025 Plan provides for the grant of stock options, including ISOs and NSOs, restricted stock, and SARs. The terms of all awards under the 2025 Plan must be set forth in award agreements, which must detail all 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Stock Options</u>. 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, by 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. The per share exercise price of a stock option may not be less than 100% of the fair market value of the underlying share on the date of grant (or 110% in the case of ISOs granted to a person who owns more than 10% of the total combined voting power of all classes of outstanding common stock of the Company, its parent, or any of its subsidiaries). The term of a stock option may not be longer than ten years (or five years in the case of ISOs granted to a person who owns more than 10% of the total combined voting power of all classes of outstanding shares of our common stock, its parent, or any of its subsidiaries).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>SARs</u>. SARs entitle the recipient to shares, cash or a combination thereof, equal to the value of the appreciation in the company's stock price over the exercise period, which will be at least equal to the fair market value of the underlying share on the grant date. The term of each SAR may not exceed ten years from the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Restricted Shares</u>. Restricted shares are share awards that vest in accordance with terms and conditions established by the administrator. Restricted share grantees generally will have the rights and privileges of a stockholder as to such shares, including the right to vote and receive cash dividends. Restricted shares may or may not be subject to a purchase price. Restricted share purchase agreements may provide the Company with a repurchase right in the event of the grantee's termination of service, which right expires immediately prior to the offering of which this prospectus forms a part.

*Change in Control/IPO*

The 2025 Plan provides that, unless otherwise provided in a particular award agreement, the vesting of all outstanding awards under the 2025 Plan will accelerate automatically, effective as of immediately prior to the consummation of a change in control or initial public offering of the Company's stock, except in the case of a change in control if the outstanding awards are to be assumed by the acquiring or successor entity or new awards of comparable value are to be issued in exchange for awards granted under the 2025 Plan. As a result, the vesting of awards for approximately 173,500 shares that have been issued under the 2025 Plan are expected to accelerate at or within six months following the closing of this offering.

*Plan Amendment and Termination*

Our board of directors may amend, suspend, or terminate the 2025 Plan at any time. No amendment will be made which substantially affects or impairs the rights of any participant under an outstanding award agreement without such participant's consent or will cause the 2025 Plan or any award granted under it to violate Code Section 409A. The 2025 Plan will be terminated in connection with the closing of this offering. Following such termination, no further awards will be made under the 2025 Plan.

#### 2026 Equity Incentive Plan
As discussed above, in connection with this offering, the Company will terminate the 2016 Plan and 2025 Plan and no further awards will be made under those plans. Also in connection with this offering, the Company will adopt The Elmet Group Co. 2026 Equity Incentive Plan (the "2026 Plan"). The following is a summary only and is qualified in its entirety by a copy of the 2026 Plan, which is attached as an exhibit to this filing.

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*Eligibility*

The Administrator of the 2026 Plan (as defined below) may grant awards to any director, employee or consultant of the Company or its subsidiaries. Only employees are eligible to receive incentive stock options.

*Administration*

The 2026 Plan will be administered by the board of directors or one more committees or subcommittees of the board of directors, which will be comprised, unless otherwise determined by the board of directors, solely of not less than two members who will be non-employee directors (a "2026 Plan Committee"), or any officer that has been delegated administrative authority pursuant to the 2026 Plan for the duration such delegation is in effect (collectively, the "Administrator"). The Administrator, initially will be the board of directors with respect to awards to non-employee directors and the Compensation Committee of our board of directors with respect to other participants. The Administrator will have the authority to make all determinations and interpretations under, prescribe all forms for use with, and adopt rules for the administration of the 2026 Plan, subject to the 2026 Plan's express terms and conditions. The Administrator will also set the terms and conditions of all awards under the 2026 Plan, including any vesting and vesting acceleration conditions.

*Share Reserve*

The maximum aggregate number of shares of the Company's common stock (the "2026 Plan Shares") that may be issued under the 2026 Plan is the sum of (A) 12.0% of our issued and outstanding shares of common stock as of the consummation of the offering, plus (B) an increase commencing on January 1, 2027, and continuing annually on each anniversary thereafter through and including January 1, 2036, equal to the lesser of (i) 3.0% of the 2026 Plan Shares outstanding on the last day of the immediately preceding calendar year and (ii) such smaller number of 2026 Plan Shares as determined by the board of directors or a 2026 Plan Committee.

The maximum aggregate number of 2026 Plan Shares that may be issued upon the exercise of incentive stock options is 12.0% of our issued and outstanding shares of common stock as of the consummation of the offering.

2026 Plan Shares issuable under the 2026 Plan may be authorized, but unissued, or reacquired shares. 2026 Plan Shares underlying any awards under the 2026 Plan that are settled in cash, forfeited, canceled, repurchased, held back upon exercise of an option or settlement of an award to cover the exercise price or tax withholding satisfied without the issuance of stock or otherwise terminated (other than by exercise) will be added back to the shares available for issuance under the 2026 Plan, although shares shall not again become available for issuance as incentive stock options. Additionally, shares issued as "substitute awards" (as defined in the 2026 Plan) will not count against the 2026 Plan's share limit, except substitute awards that are incentive stock options will count against the incentive stock option limit.

The 2026 Plan Share reserve described herein may be subject to certain adjustments in the event of certain changes in the capitalization of the Company (see "*— Equitable Adjustments*" below).

*Annual Limitation on Awards to Non-Employee Directors*

The 2026 Plan contains a limitation whereby the value of all awards under the 2026 Plan and all other cash compensation paid by the Company to any non-employee director may not exceed $1,000,000 for the first calendar year a non-employee director is initially appointed to the Board, and $750,000 in any other calendar year.

*Types of Awards*

The 2026 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalent awards, and other stock- or cash-based awards (collectively, "awards").

<u>Stock Options.</u> The 2026 Plan permits the granting of both options intended to qualify as incentive stock options under Section 422 of the Code and options that do not so qualify. Options granted under the 2026 Plan will be nonqualified options if they fail to qualify as incentive stock options or exceed the annual limit on incentive stock options. Incentive stock options may only be granted to employees of the Company and its subsidiaries. Nonqualified options may be granted to any persons eligible to receive awards under the 2026 Plan.

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The exercise price of each option will be determined by the Administrator, but for each share subject to such option, the exercise price may not be less than 100% of the fair market value of one share of the Company's common stock on the date of grant or, in the case of an incentive stock option granted to a 10% or greater stockholder, 110% of such share's fair market value. The term of each option will be set by the Administrator and may not exceed ten (10) years from the date of grant (or five (5) years for an incentive stock option granted to a 10% or greater stockholder). The Administrator will determine at what time or times each option may be exercised, including the ability to accelerate the vesting of such options.

<u>Stock Appreciation Rights.</u> The Administrator may award stock appreciation rights subject to such conditions and restrictions as it may determine. Stock appreciation rights entitle the recipient to 2026 Plan Shares or cash, equal to the value of the appreciation in the Company's stock price over the exercise price, as set by the Administrator and which for each share subject to a stock appreciation right will be at least equal to the fair market value of a share of the Company's common stock on the grant date. The term of each stock appreciation right will be set by the Administrator and may not exceed ten years from the date of grant. The Administrator will determine at what time or times each stock appreciation right may be exercised, including the ability to accelerate the vesting of such stock appreciation rights.

<u>Restricted Stock.</u> A restricted stock award is an award of 2026 Plan Shares that vests in accordance with the terms and conditions established by the Administrator. The Administrator will determine the persons to whom grants of restricted stock awards are made, the number of restricted shares to be awarded, the price (if any) to be paid for the restricted shares, the time or times within which awards of restricted stock may be subject to forfeiture, the vesting schedule and rights to acceleration thereof, and all other terms and conditions of restricted stock awards. Unless otherwise provided in the applicable award agreement, a participant generally will have the rights and privileges of a stockholder as to such restricted shares, including without limitation the right to vote such restricted shares and the right to receive cash dividends, if applicable.

<u>Restricted Stock Units.</u> Restricted stock units are the right to receive 2026 Plan Shares at a future date in accordance with the terms of such grant upon the attainment of certain conditions specified by the Administrator. Restrictions or conditions could include, but are not limited to, the attainment of performance goals, continuous service with the Company or its subsidiaries, the passage of time or other restrictions or conditions. The Administrator determines the persons to whom grants of restricted stock units are made, the number of restricted stock units to be awarded, the time or times within which awards of restricted stock units may be subject to forfeiture, the vesting schedule, and rights to acceleration thereof, and all other terms and conditions of the restricted stock unit awards. The value of the restricted stock units may be paid in 2026 Plan Shares, cash, other securities, other property, or a combination of the foregoing, as determined by the Administrator.

The holders of restricted stock units will have no voting rights. Prior to settlement or forfeiture, restricted stock units awarded under the 2026 Plan may, at the Administrator's discretion, provide for a right to dividend equivalents.

<u>Performance Awards.</u> The Administrator has the authority to grant stock options, stock appreciation rights, restricted stock, or restricted stock units as a performance award, which means that such awards vest at least in part upon the attainment of one or more specified performance criteria. For each performance period, the Administrator will have the sole authority to select the length of such performance period, the types of performance awards to be granted, the performance criteria that will be used to establish the performance goals, and the level(s) of performance which shall result in a performance award being earned. At any time, the Administrator may adjust or modify the calculation of a performance goal for a performance period, to appropriately reflect any circumstance or event that occurs during a performance period and that in the Administrator's sole discretion, warrants adjustment or modification. Depending on the type of performance award granted, the previously discussed terms and conditions will also apply to a performance award.

Performance criteria for a performance award may be based on the attainment of specific levels of performance of the Company (and/or one or more subsidiaries, divisions, business segments or operational units, or any combination of the foregoing) and may include, without limitation, any of the following: (i) net earnings or net income (before or after taxes); (ii) basic or diluted earnings per share (before or after taxes); (iii) revenue or revenue growth (measured on a net or gross basis); (iv) gross profit or gross profit growth; (v) operating profit (before or after taxes); (vi) return measures (including, but not limited to, return on assets, capital, invested capital, equity, or sales); (vii) cash flow (including, but not limited to, operating cash flow, free cash flow, net cash provided by operations and cash flow return on capital); (viii) financing and other capital raising transactions (including, but not limited to, sales of the Company's equity or debt securities); (ix) earnings before or after taxes, interest, depreciation and/or amortization; (x) gross or operating

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margins; (xi) productivity ratios; (xii) share price (including, but not limited to, growth measures and total shareholder return); (xiii) expense targets; (xiv) margins; (xv) productivity and operating efficiencies; (xvi) customer satisfaction; (xvii) customer growth; (xviii) working capital targets; (xix) measures of economic value added; (xx) inventory control; (xxi) enterprise value; (xxii) sales; (xxiii) debt levels and net debt; (xxiv) combined ratio; (xxv) timely launch of new facilities; (xxvi) client retention; (xxvii) employee retention; (xxviii) timely completion of new product rollouts; (xxix) cost targets; (xxx) reductions and savings; (xxxi) productivity and efficiencies; (xxxii) strategic partnerships or transactions; and (xxxiii) personal targets, goals or completion of projects. Any one or more of the performance criteria may be used on an absolute or relative basis to measure the performance of the Company and/or one or more subsidiaries as a whole or any business unit(s) of the Company and/or one or more subsidiaries or any combination thereof, or any of the above performance criteria may be compared to the performance of a selected group of comparison or peer companies, or a published or special index that the Administrator deems appropriate, or as compared to various stock market indices.

<u>Dividend Equivalents.</u> An award of dividend equivalents entitles the holder to be credited with an amount equal to all dividends paid on one share of the Company's common stock while the holder's tandem award is outstanding. Dividend equivalents may be paid currently or credited to an account for the participant, settled in cash or 2026 Plan Shares, and subject to the same restriction on transferability and forfeitability as the award with respect to which the dividend equivalents are granted.

<u>Other Stock- or</u> <u>Cash</u><u>-Based</u> <u>Awards.</u> Other stock-based awards may be granted either alone, in addition to, or in tandem with, other awards granted under the 2026 Plan and/or cash awards made outside of the 2026 Plan. The Administrator shall have authority to determine the service providers to whom and the time or times at which other stock-based awards shall be made, the amount of such other stock-based awards, and all other conditions of the other stock-based awards including any dividend and/or voting rights. The Administrator may grant cash awards in such amounts and subject to such performance or other vesting criteria and terms and conditions as the Administrator may determine.

*Repricing*

Notwithstanding anything to the contrary in the 2026 Plan, unless a repricing is approved by shareholders, in no case may the Administrator (i) amend an outstanding option or stock appreciation right to reduce the exercise price of the award, (ii) cancel, exchange, or surrender an outstanding option or stock appreciation right in exchange for cash or other awards for the purpose of repricing the award, or (iii) cancel, exchange, or surrender an outstanding option or stock appreciation right in exchange for an option or stock appreciation right with an exercise price that is less than the exercise price of the original award.

*Equitable Adjustments*

In the event of a merger, consolidation, recapitalization, stock split, reverse stock split, reorganization, split-up, spin-off, combination, repurchase or other change in corporate structure affecting the Shares, the Administrator will adjust (i) the number and class of shares which may be delivered under the 2026 Plan (or number and kind of other securities or other property); (ii) the number, class and price (including the exercise or strike price of options and stock appreciation rights) of shares subject to outstanding awards, (iii) any applicable performance criteria, performance period, and other terms and conditions of outstanding performance awards, and (iv) the 2026 Plan's numerical limits.

*Change in Control*

In the event of any change in control (as defined in the 2026 Plan), any outstanding award shall be treated in accordance with the applicable award agreement. If the applicable award agreement does not specify the treatment of the award in a change in control, the award shall be treated as determined by the Administrator in its sole discretion, and the Administrator shall not be obligated to treat all outstanding awards similarly.

*Term*

The 2026 Plan will become effective when approved by our shareholders, and, unless terminated earlier, the 2026 Plan will continue in effect for a term of ten (10) years.

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*Amendment and Termination*

Our Board may amend, alter, suspend or terminate the 2026 Plan at any time. No amendment or termination of the 2026 Plan will materially impair the rights of any participant, unless mutually agreed otherwise between the participant and the Company. Approval of the stockholders shall be required for any amendment, where required by applicable law, as well as (i) to increase the number of shares available for issuance under the 2026 Plan and (ii) to change the persons or class of persons eligible to receive awards under the 2026 Plan.

*Recoupment Policy*

All awards granted under the 2026 Plan, all amounts paid under the 2026 Plan, and all 2026 Plan Shares issued under the 2026 Plan shall be subject to reduction, recoupment, clawback, or recovery by the Company in accordance with applicable laws and with Company policy.

*Form S-8*

The Company intends to file with the SEC a registration statement on Form S-8 covering the 2026 Plan Shares issuable under the 2026 Plan.

*Material United States Federal Income Tax Considerations*

The following is a general summary under current law of the material U.S. federal income tax considerations related to awards and certain transactions under the 2026 Plan, based upon the current provisions of the Code and regulations promulgated thereunder. This summary deals with the general federal income tax principles that apply and is provided only for general information. It does not describe all federal tax consequences under the 2026 Plan, nor does it describe state, local, or foreign income tax consequences or federal employment tax consequences. The rules governing the tax treatment of such awards are quite technical, so the following discussion of tax consequences is necessarily general in nature and is not complete. In addition, statutory provisions are subject to change, as are their interpretations, and their application may vary in individual circumstances. This summary is not intended as tax advice to participants, who should consult their own tax advisors.

The 2026 Plan is not qualified under the provisions of Section 401(a) of the Code and is not subject to any of the provisions of the Employee Retirement Income Security Act of 1974, as amended. The Company's ability to realize the benefit of any tax deductions described below depends on the Company's generation of taxable income as well as the requirement of reasonableness and the satisfaction of the Company's tax reporting obligations.

<u>Incentive Stock Options.</u> No taxable income is generally realized by the optionee upon the grant or exercise of an incentive stock option. If Shares issued to an optionee pursuant to the exercise of an incentive stock option are sold or transferred after two years from the date of grant and after one year from the date of exercise, then generally (i) upon sale of such shares, any amount realized in excess of the option exercise price (the amount paid for the shares) will be taxed to the optionee as a long-term capital gain, and any loss sustained will be a long-term capital loss, and (ii) neither the Company nor its subsidiaries will be entitled to any deduction for federal income tax purposes; provided that such incentive stock option otherwise meets all of the technical requirements of an incentive stock option. The exercise of an incentive stock option will give rise to an item of tax preference that may result in alternative minimum tax liability for the optionee.

If the Shares acquired upon the exercise of an incentive stock option are disposed of prior to the expiration of the two-year and one-year holding periods described above (a "disqualifying disposition"), generally (i) the optionee will realize ordinary income in the year of disposition in an amount equal to the excess (if any) of the fair market value of the Shares at exercise (or, if less, the amount realized on a sale of such Shares) over the option exercise price thereof, and (ii) the Company or its subsidiaries will be entitled to deduct such amount. Special rules will apply where all or a portion of the exercise price of the incentive stock option is paid by tendering Shares.

If an incentive stock option is exercised at a time when it no longer qualifies for the tax treatment described above, the option is treated as a nonqualified option. Generally, an incentive stock option will not be eligible for the tax treatment described above if it is exercised more than three months following termination of employment (or one year in the case of termination of employment by reason of disability). In the case of termination of employment by reason of death, the three-month rule does not apply.

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<u>Nonqualified Options.</u> No income is generally realized by the optionee at the time a nonqualified option is granted. Generally, (i) at exercise, ordinary income is realized by the optionee in an amount equal to the difference between the option exercise price and the fair market value of the Shares issued on the date of exercise, and the Company or its subsidiaries receive a tax deduction for the same amount, and (ii) at disposition, appreciation or depreciation after the date of exercise is treated as either short-term or long-term capital gain or loss depending on how long the Shares have been held. Special rules will apply where all or a portion of the exercise price of the nonqualified option is paid by tendering Shares. Upon exercise, the optionee will also be subject to Social Security taxes on the excess of the fair market value of the Shares over the exercise price of the option.

<u>Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Dividend Equivalent Awards and Other Stock- and</u> <u>Cash</u><u>-Based</u> <u>Awards.</u> The current federal income tax consequences of other awards authorized under the 2026 Plan generally follow certain basic patterns: (i) stock appreciation rights are taxed and deductible in substantially the same manner as nonqualified options; (ii) nontransferable restricted stock subject to a substantial risk of forfeiture results in income recognition equal to the excess of the fair market value of the Shares over the price paid, if any, only at the time the restrictions lapse (unless the recipient elects to accelerate recognition as of the date of grant through a Section 83(b) election); and (iii) restricted stock units, dividend equivalents, and other stock- or cash-based awards are generally subject to tax at the time of payment. The Company or its subsidiaries generally should be entitled to a federal income tax deduction in an amount equal to the ordinary income recognized by the participant at the time the participant recognizes such income.

The participant's basis for the determination of gain or loss upon the subsequent disposition of Shares acquired from a stock appreciation right, restricted stock, restricted stock unit, dividend equivalent award, or other stock-based award will be the amount paid for such Shares plus any ordinary income recognized when the Shares were originally delivered, and the participant's capital gain holding period for those shares will begin on the day after they are transferred to the participant.

<u>Performance Awards.</u> The tax consequences of performance awards will generally mirror those of the underlying award type, each of which is discussed above.

<u>Parachute Payments.</u> The vesting of any portion of an award that is accelerated due to the occurrence of a change in control (such as a sale event) may cause all or a portion of the payments with respect to such accelerated awards to be treated as "parachute payments" as defined in the Code. Any such parachute payments may be non-deductible to either the Company or its subsidiaries, in whole or in part, and may subject the recipient to a non-deductible 20% federal excise tax on all or a portion of such payment (in addition to other taxes ordinarily payable).

<u>Section 409A.</u> The foregoing description assumes that Section 409A of the Code does not apply to an award under the 2026 Plan. In general, stock options and stock appreciation rights are exempt from Section 409A if the exercise price per share is at least equal to the fair market value per share of the underlying stock at the time the option or stock appreciation right was granted. Restricted stock awards are not generally subject to Section 409A. Restricted stock units are subject to Section 409A unless they are settled within two and one-half months after the end of the later of (1) the end of the Company's fiscal year in which vesting occurs or (2) the end of the calendar year in which vesting occurs. If an award is subject to Section 409A and the provisions for the exercise or settlement of that award do not comply with Section 409A, then the participant would be required to recognize ordinary income whenever a portion of the award vested (regardless of whether it had been exercised or settled). This amount would also be subject to a 20% federal tax and premium interest in addition to the federal income tax at the participant's usual marginal rate for ordinary income.

#### Policies and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information
We currently grant equity awards to our employees at the discretion of the board of directors. We do not have a written policy regarding the timing of the grant of equity awards, but we do not grant equity awards in anticipation of the release of material nonpublic information, nor do we time the release of material nonpublic information based on equity award grant dates.

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#### PRINCIPAL STOCKHOLDERS
Based solely upon information made available to us, the following table sets forth information as of the date of this prospectus regarding the beneficial ownership of our common stock by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known by us to be the beneficial owner of more than 5% of our outstanding shares of common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our named executive officers and directors; and

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

The percentage ownership of our common stock before this offering shown in the table below is based upon 20,122,721 shares of Class A common stock and 466 shares of Class B common stock issued and outstanding as of the date of this prospectus. Prior to the consummation of this offering, all currently outstanding shares of our Class B common stock will be repurchased and canceled and our second amended and restated articles of incorporation that will be in effect prior to the consummation of this offering will consolidate our Class A common stock and Class B common stock in to a single class of common stock. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Reorganization," "Business — Corporate History and Reorganization — Reorganization"* and *"Description of Capital Stock"* included elsewhere in this prospectus.

In addition, the number of shares and percentage of shares beneficially owned after the offering in the table below gives effect to the issuance by us of 7,692,307 shares of common stock in this offering assuming an initial public offering price of $13.00 per share (the midpoint of the price range set forth on the cover page of this prospectus) as well as the vesting of 153,500 currently unvested shares of restricted stock which will vest upon the consummation of this offering. The percentage ownership information assumes no exercise of the underwriters' over-allotment option and no issuance of common stock upon the exercise of outstanding SARs.

The following table does not reflect any shares of common stock that may be purchased in this offering pursuant to our directed share program as described under "*Underwriting — Directed Share Program*." Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. Except as otherwise indicated, each person or entity named in the table has sole voting and investment power with respect to all shares of our capital shown as beneficially owned, subject to applicable community property laws.

In computing the number and percentage of shares beneficially owned by a person, shares that may be acquired by such person (for example, upon the exercise of options or warrants) within 60 days of the date of this prospectus are counted as outstanding, while these shares are not counted as outstanding for computing the percentage ownership of any other person.

The address of each holder listed below, unless otherwise indicated, is 2 Portland Fish Pier, Suite 214, Portland, Maine 04101.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Name and Address of Beneficial <br>Owner** | **Class A Shares <br>Beneficially <br>Owned Prior to the <br>Offering** | **Class A Shares <br>Beneficially <br>Owned Prior to the <br>Offering** | **Class B Shares <br>Beneficially <br>Owned Prior to the <br>Offering** | **Class B Shares <br>Beneficially <br>Owned Prior to the <br>Offering** | **Total <br>Voting <br>Power** | **Shares of <br>Common Stock <br>Beneficially Owned <br>After the Offering** | **Shares of <br>Common Stock <br>Beneficially Owned <br>After the Offering** | **Total <br>Voting <br>Power** |
|  **Name and Address of Beneficial <br>Owner** | **Number** | **Percentage** | **Number** | **Percentage** | **Total <br>Voting <br>Power** | **Number** | **Percentage** | **Total <br>Voting <br>Power** |
|  ***Directors and executive officers*** |  |  |  |  |  |  |  |  |
|  Peter V. Anania, Chief Executive Officer and Chairman<sup>(1)</sup> | 10803122 | 53.69% | 466 | 100% | 62.39% | 10803122 | 38.63% | 38.63% |
|  Michael Steven Lee, Chief Financial Officer<sup>(2)</sup> | 73500 | \* | 0 | 0% | \* | 73500 | \*% | \*% |
|  Scott W. Knoll, EVP, Corporate Strategy and Director<sup>(3)</sup> | 1551950 | 7.71% | 0 | 0% | 6.26% | 1551950 | 5.55% | 5.55% |
|  Christian T. Chandler, EVP, General Counsel and Director<sup>(4)</sup> | 256147 | 1.27% | 0 | 0% | 1.03% | 256147 | \*% | \*% |
|  Derek Fox, President of the CMC Division<sup>(5)</sup> | 455674 | 2.26% | 0 | 0% | 1.84% | 455674 | 1.63% | 1.63% |
|  Kimberly Anania, Director Nominee | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 0% |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Name and Address of Beneficial <br>Owner** | **Class A Shares <br>Beneficially <br>Owned Prior to the <br>Offering** | **Class A Shares <br>Beneficially <br>Owned Prior to the <br>Offering** | **Class B Shares <br>Beneficially <br>Owned Prior to the <br>Offering** | **Class B Shares <br>Beneficially <br>Owned Prior to the <br>Offering** | **Total <br>Voting <br>Power** | **Shares of <br>Common Stock <br>Beneficially Owned <br>After the Offering** | **Shares of <br>Common Stock <br>Beneficially Owned <br>After the Offering** | **Total <br>Voting <br>Power** |
|  **Name and Address of Beneficial <br>Owner** | **Number** | **Percentage** | **Number** | **Percentage** | **Total <br>Voting <br>Power** | **Number** | **Percentage** | **Total <br>Voting <br>Power** |
|  Kathie Leonard, <br>Director Nominee | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 0% |
|  John Chandler, <br>Director Nominee | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 0% |
|  Brian Deveaux, <br>Director Nominee | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 0% |
|  Peter Woodward, <br>Director Nominee | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 0% |
|  W. Jacob Homiller, <br>Director Nominee<sup>(6)</sup> | 89469 | \* | 0 | 0% | \* | 89469 | \*% | \*% |
|  Mark Miklos, <br>Director Nominee | 0 | 0% | 0 | 0% | 0% | 0 | 0% | 0% |
|  All directors and executive officers as a group (14 persons) | 13229862 | 65.51% | 466 | 100% | 71.89% | 13229862 | 47.30% | 47.30% |
|  ***5% or greater stockholders*** |  |  |  |  |  |  |  |  |
|  Anania & Associates Investment Company, LLC<sup>(7)</sup> | 5396719 | 26.82% | 0 | 0% | 21.78% | 5396719 | 19.30% | 19.30% |
|  George Schott | 5100009 | 25.34% | 0 | 0% | 20.58% | 5100009 | 18.23% | 18.23% |
|  The Anania Trust II<sup>(8)</sup> | 1627956 | 8.09% | 0 | 0% | 6.57% | 1627956 | 5.82% | 5.82% |
|  Marc P. Lamare | 1267439 | 6.30% | 0 | 0% | 5.11% | 1267439 | 4.53% | 4.53% |

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____________

\* Less than 1%.

(1) Mr. Anania's beneficial holdings are comprised of 2,964,469 shares of Class A common stock and 466 shares of Class B common stock held directly, 813,978 shares of Class A common stock held by The Anania Trust I, 1,627,956 shares of Class A common stock held by The Anania Trust II, and 5,396,719 shares of Class A common stock held by Anania & Associates Investment Company, LLC. Mr. Anania is the trust protector of The Anania Trust I and The Anania Trust II, with sole voting and dispositive power over the shares of our common stock held by each trust and is the president of Anania & Associates Investment Company, LLC in addition to controlling the majority of the equity voting power of the entity.

(2) Mr. Lee's beneficial holdings are comprised of 73,500 shares of Class A restricted stock that will vest upon the consummation of this offering and 49,000 shares of Class A restricted stock subject to vesting in two equal installments on the second and third anniversaries of his employment with the Company, or March 17, 2027 and March 17, 2028.

(3) Mr. Knoll directly holds all 1,511,950 shares of Class A common stock.

(4) Mr. Chandler directly holds 256,147 shares of Class A common stock.

(5) Mr. Fox directly holds 455,674 shares of Class A common stock. The number of shares beneficially held by Mr. Fox above does not include 304,212 shares of Class A common stock subject to SARs with a base price of $0.91 per SAR that vest upon completion of this offering and which the Company and Mr. Fox have agreed to net cash settle upon vesting and 328,390 shares of Class A restricted stock that vest 180 days after the consummation of this offering.

(6) Mr. Homiller directly holds 89,469 shares of Class A common stock.

(7) Mr. Anania is the president of AAI and controls the majority of the equity voting power of the entity.

(8) The Anania Trust II directly holds 1,627,956 shares of Class A common stock. Mr. Anania is the trust protector of The Anania Trust II and possesses sole voting and dispositive power over the shares of Class A common stock held by The Anania Trust II.

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#### CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Other than compensation agreements and other arrangements which are described under "*Executive Compensation*" and the transactions described below, since January 1, 2023, there has not been, and there is not currently proposed, any transaction or series of similar transactions to which we were or will be a party in which the amount involved exceeded or will exceed the lesser of $120,000 or one percent of the average of our total assets at year-end for the last two completed fiscal years and in which any of our directors, executive officers or holders of more than 5% of our capital stock, or 5% securityholders, or an affiliate or family member thereof, had or will have a direct or indirect material interest.

The following are the related party transactions during the years ended December 31, 2023, 2024, and 2025 and the portion of 2026 though the effective date of the registration statement of which this prospectus forms a part. The related parties' relationships with us are as follows:

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| | |
|:---|:---|
|  **Related Party** | **Relationship with the Company** |
|  Great Falls Property, LLC | Owned by George Schott, a holder of more than 5% of our common stock. |
|  George Schott | Holder of more than 5% of our common stock. |
|  Peter V. Anania | Chief Executive Officer and Chairman |
|  Christian T. Chandler | Executive Vice President, General Counsel and Director |
|  Michael Steven Lee | Chief Financial Officer |
|  Scott W. Knoll | Executive Vice President, Corporate Strategy and Director |
|  Derek Fox | President, CMC Division |
|  William Jacob Homiller | Director Nominee |
|  Mark Lamare | Holder of more than 5% of our common stock.  |
|  Anania & Associates Investment Company, LLC | Holder of more than 5% of our common stock; Mr. Anania serves as the president of AAI and controls a majority of the voting equity of AAI.  |
|  The Anania Trust I | Mr. Anania serves as the trust protector of the entity. |
|  The Anania Trust II | Holder of more than 5% of our common stock; Mr. Anania serves as the trust protector of the entity.  |
|  Polymer Laboratories and Solutions LLC | Mr. Anania serves as the president and manager of the entity and owns the majority of the entity's membership units.  |

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*Reorganization*

On January 2, 2026, we completed the Reorganization, whereby, pursuant to the Contribution Agreement, The Elmet Group Co. acquired all of the outstanding equity interests of Elmet Tech, Microwave Techniques, and A&A, in exchange for an aggregate of 18,841,986 shares of our Class A Common Stock and 466 shares of our Class B common stock (see "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Reorganization*" and "*Business — Corporate History and Reorganization — Reorganization*" included elsewhere in this prospectus).

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Pursuant to the Contribution Agreement, the following related parties received shares of our Class A common stock in exchange for their respective equity interests in Elmet Tech, Microwave Techniques and/or A&A (see the section entitled "*Principal Stockholders*" included elsewhere in this prospectus for additional information regarding the beneficial holdings of our directors, executive officers, and significant shareholders):

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| | |
|:---|:---|
|  **Related Party** | **Shares of our <br>Class A Common <br>Stock Received <br>Pursuant to the <br>Contribution <br>Agreement** |
|  Peter V. Anania | 2452175 |
|  Scott W. Knoll | 588136 |
|  Derek Fox | 455674 |
|  William Jacob Homiller | 89469 |
|  George Schott | 5100009 |
|  Mark Lamare | 1267439 |
|  Anania & Associates Investment Company, LLC | 5396719 |
|  The Anania Trust I | 813978 |
|  The Anania Trust II | 1627956 |
|  **Total** | 17791555 |

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*AAI Promissory Note*

On January 1, 2026 and in connection with the transactions to be effected as part of the Reorganization, the Company entered into a $2.4 million promissory note with AAI for the payment of collective outstanding obligations between the Company and AAI. The AAI Note is due and payable on the earlier of demand by the Company or January 1, 2027, and accrues interest at a rate of 6% per annum. No interest or principal has been paid on the AAI Note to date. The outstanding and unpaid principal and interest due under the AAI Note is expected to be repaid upon the consummation of this offering. See "*Use of Proceeds*."

*Management Agreements*

Prior to the Reorganization, A&A provided certain management services to Elmet Tech and Microwave Techniques on behalf of AAI pursuant to certain management fee agreements. During the fiscal year ended December 31, 2023, the aggregate amount paid to AAI by Elmet Tech and Microwave for these services was $642,435. During the fiscal year ended December 31, 2024, the aggregate amount paid to AAI by Elmet Tech and Microwave for these services was $687,298. During the fiscal year ended December 31, 2025, the aggregate amount paid to AAI by Elmet Tech and Microwave for these services was $828,659. All of the foregoing amounts paid to AAI were subsequently paid to A&A under the terms of the management fee agreement between AAI and A&A, resulting in payments to A&A from AAI of $642,435, $687,298 and $828,659 for the fiscal years ending December 31, 2023, 2024 and 2025, respectively. See the section entitled "*Executive Compensation*" above for more information regarding the compensation of our named executive officers and directors.

*Great Falls Term Loan*

On November 6, 2023, Elmet Tech entered into a secured $20.0 million term note with Great Falls Property, LLC, which is owned by George Schott, a 25.34% stockholder of the Company. The Great Falls Term Loan accrues interest monthly based on a floating rate equal to the prime rate as reported by the Wall Street Journal plus a spread of 1.00%, with a floor of 9.50%. Since November 6, 2023, the largest amount outstanding, including accrued and unpaid interest, at any time under the Great Falls Term Loan was $20.2 million and the aggregate interest paid during the fiscal years ended December 31, 2023, 2024 and 2025 was $0.2 million, $1.7 million and $1.4 million, respectively. The maturity date of the Great Falls Term Loan is November 6, 2028; however, the Company intends to repay the Great Falls Term Loan with proceeds from this offering. See "*Use of Proceeds*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness*." We anticipate repaying the President Line of Credit in full with the proceeds of this offering. See "*Use of Proceeds*."

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*President Line of Credit*

On January 1, 2023, A&A entered into a $2.0 million line of credit note with Mr. Anania, our Chief Executive Officer and Chairman. The President Line of Credit was increased to $2.5 million on October 1, 2025. The President Line of Credit accrues interest monthly based on a stated interest rate of 9.00%. Since January 1, 2023, the largest amount outstanding, including accrued and unpaid interest, under the President Line of Credit at any time was $2.1 million and the aggregate interest accrued during the fiscal years ended December 31, 2023, 2024 and 2025 was $0.1 million, $0.2 million and $0.1 million, respectively.

The previous maturity date of the President Line of Credit was January 1, 2026. On January 1, 2026, A&A amended the President Line of Credit to extend the maturity date from January 1, 2026, to the earlier of (i) the closing of an initial public offering, or (ii) July 1, 2026. In connection with the amendment, A&A agreed to pay an extension fee of $0.2 million at maturity in addition to the outstanding principal and accrued, unpaid interest. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness*." We anticipate repaying the President Line of Credit in full with the proceeds of this offering. See "*Use of Proceeds*."

*General Counsel Compensation*

In the years ended December 31, 2025 and 2024, Mr. Chandler received compensation of $237,720 and $168,414, respectively, in connection with his employment as Executive Vice President, General Counsel of our Company.

*Distribution of Profits from A&A*

A&A operated as a pass-through entity allocating the profits and losses of the related investment interests in AAI and Poly Labs to its shareholders. During the year ended December 31, 2023, distributions were made to cover related tax liabilities to Peter Anania in the amount of $274,150 and Scott Knoll in the amount of $32,945. During the year ended December 31, 2024, distributions were made to cover related tax liabilities to Peter Anania in the amount of $3,124,186 and Scott Knoll in the amount of $381,889. During the year ended December 31, 2025, distributions were made to cover related tax liabilities to Peter Anania in the amount of $1,459,516 and Scott Knoll in the amount of $175,393.

*Michael Steven Lee Investment in AAI*

On August 29, 2025, Mr. Lee purchased 4,977 non-voting Class B Units of AAI for an aggregate purchase price of $250,000. At the time of purchase, AAI was controlled by the Company. After giving effect to the Reorganization, AAI is now a related party of the Company but is no longer controlled by the Company.

*William Jacob Homiller Investment in Elmet Tech*

As of January 1, 2024, Mr. Homiller purchased 3,963 membership units of Elmet Tech for an aggregate purchase price of approximately $250,000. As part of the Reorganization, and pursuant to the Contribution Agreement, Mr. Homiller's membership units in Elmet Tech were exchanged for shares of the Company's Class A common stock. See "*Principal Stockholders*" included elsewhere in this prospectus for additional information regarding Mr. Homiller's beneficial holdings.

*Poly Labs Note Payable*

Following A&A's distribution of membership interest in Poly Labs (see "— Reorganization" above and "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Discontinued Operations*"), AAI had an outstanding note payable owed to Poly Labs of approximately $1.7 million. Upon the Poly Labs distribution, a majority of its membership interest were held by our President, Peter V. Anania, and trusts controlled by Mr. Anania, and our Executive Vice President, Scott W. Knoll. The Poly Labs Note Payable accrued interest monthly based on a stated interest rate of 10.00%. As of December 31, 2025 and 2024, the outstanding balance under the Poly Labs Note Payable was $0.5 million and $0.0 million, respectively. The Poly Labs Note Payable had a maturity date of January 31, 2026. The Poly Labs Note Payable was repaid in full on January 19, 2026.

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*March 2022 Term Note*

On March 22, 2022, the Company entered into a $0.4 million unsecured term note with George Schott (the "March 2022 Term Note"). The March 2022 Term Note initially accrued interest monthly based on a stated interest rate of 5.00% until the March 2022 Term Note was amended in January 2024, after which it accrued interest at a rate of 7.00%. Since January 1, 2023, the largest amount outstanding under the March 2022 Term note at any time was $0.4 million. During the years ended December 31, 2023 and 2024 the Company recognized less than $0.1 million, and less than $0.1 million of interest expense, respectively. In June 2024, the amount owed under the March 2022 Term Note of approximately $0.4 million was settled in full, and the March 2022 Term Note was terminated.

*Directed Share Program*

At our request, the underwriters have reserved up to 2% of the shares offered by this prospectus, for sale at the initial public offering price to certain of our directors, officers, and employees, as well as other parties related to The Elmet Group Co. Shares purchased through the directed share program will not be subject to a lock-up restriction, except in the case of shares purchased by any of our directors, executive officers or 5% or greater stockholders, which shares will be subject to a 180-day lock-up restriction. The number of shares of our common stock available for sale to the general public will be reduced to the extent these individuals purchase such reserved shares. 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. One of the underwriters will administer our directed share program. See "*Underwriting — Directed Share Program*."

**Policies and Procedures with Respect to Related Party Transactions**

Pursuant to the audit committee charter to be adopted prior to the closing of this offering, our audit committee will be responsible for reviewing and approving transactions with related parties. A related party includes directors, executive officers, beneficial owners of 5% or more of any class of the Company's voting securities, immediate family members of any of the foregoing persons, and any entities in which any of the foregoing is an executive officer or is an owner of 5% or more ownership interest.

If a transaction involving an amount in excess of $120,000 has been identified as a related party transaction, including any transaction that was not a related party transaction when originally consummated or any transaction that was not initially identified as a related party transaction prior to consummation, information regarding the related party transaction will be reviewed by the Company's audit committee, which will determine whether to approve the transaction.

In considering related party transactions, the Company's audit committee will take into account the relevant available facts and circumstances including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the related party's interest in the related party transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the approximate dollar value of the amount involved in the related party transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the approximate dollar value of the amount of the related party's interest in the transaction without regard to the amount of any profit or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether the transaction was undertaken in the ordinary course of business of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether the transaction with the related party is proposed to be, or was, entered into on terms no less favorable to the Company than terms that could have been reached with an unrelated third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the purpose of, and the potential benefits to the Company of, the transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other information regarding the related party transaction or the related parties in the context of the proposed transaction that would be material to investors in light of the circumstances of the particular transaction.

In determining whether to approve, ratify or reject a related party transaction, the audit committee will review all relevant information available to it about such transaction, and it will approve or ratify the related party transaction only if it determines that, under all of the circumstances, the transaction is in, or is not inconsistent with, the best interests of our Company.

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#### DESCRIPTION OF CAPITAL STOCK

#### General
As of the date of this prospectus, our authorized capital stock consists of 500,000,000 shares of Class A common stock, par value $0.001 per share, 40,000,000 million shares of Class B common stock, par value $0.001 per share, and 20,000,000 shares of preferred stock, par value $0.001 per share. Prior to the consummation of this offering, all currently outstanding shares of our Class B common stock will be repurchased and canceled and our second amended and restated articles of incorporation that will be in effect prior to the consummation of this offering will consolidate our Class A common stock and Class B common stock in to a single class of common stock. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Reorganization"* and *"Business — Corporate History and Reorganization — Reorganization*" included elsewhere in this prospectus. The following description summarizes the material terms of our capital stock. Because it is only a summary, it may not contain all the information that is important to you.

#### Common Stock
As of the date of this prospectus, we have 20,122,721 shares of Class A common stock issued and outstanding (which we expect to be the only class of common stock outstanding at the time we consolidate our Class A common stock and Class B common stock into a single class of common stock prior to the consummation of this offering), held by approximately 23 stockholders of record and excluding 610,890 shares of unvested restricted stock, 338,640 shares of common stock subject to vested SARs, 649,060 shares of common stock subject to unvested SARs and 17,500 shares of our common stock reserved for issuance under our 2025 Plan. Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and are not entitled to cumulative voting rights.

Holders of our common stock are entitled to receive ratably such dividends, if any, as may be declared by our board of directors out of funds legally available therefor, subject to any preferential distribution rights of third parties. Upon our liquidation, dissolution or winding up, the holders of our common stock are entitled to receive ratably our net assets available after the payment of all debts and other liabilities.

Holders of our common stock have no preemptive, subscription, redemption or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock. All of the outstanding shares of our common stock are fully paid and nonassessable. The rights, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of any indebtedness of our Company.

#### Preferred Stock
Our amended and restated certificate of incorporation that will be in effect prior to the consummation of this offering will give the board of directors the power to issue shares of preferred stock in one or more series without stockholder approval. The board of directors will have the discretion to determine the designations, rights, qualifications, preferences, privileges, and restrictions, including voting rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. The purpose of authorizing the board of directors to issue preferred stock and determine its rights and preferences is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing desirable flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of making it more difficult for a third party to acquire, or could discourage a third party from acquiring, a majority of our outstanding voting stock.

#### Transfer Agent and Registrar
The transfer agent and registrar of our common stock is Continental Stock Transfer & Trust Company. The transfer agent and registrar's address is 1 State Street, 30<sup>th</sup> Floor, New York, NY 10004.

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#### Broker's Warrants
We have agreed to issue to Cantor, for its role as sole structuring advisor in connection with this offering, or its permitted designees, for nominal consideration, warrants to purchase 115,384 shares of our common stock (1.5% of the shares sold in this offering) as additional consideration for its services (assuming no exercise of the underwriters' overallotment option). The Broker's Warrants will have an exercise price equal to 125% of the public offering price in this offering and will be exercisable beginning six months following the closing of this offering and for a period of four years thereafter, and will contain customary "cashless" exercise and registration rights provisions. The warrants shall not be exercisable for a period of 180 days following the commencement of sale of the securities in this offering, which is also the date of effectiveness of the registration statement of which this prospectus forms a part. See "*Underwriting — Broker's Warrants*."

#### Delaware Law and Certain Charter and Bylaw Provisions
*Delaware Anti*-Takeover *Law.* Upon the consummation of this offering, we will be subject to Section 203 of the Delaware General Corporation Law. Section 203 generally prohibits a public Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a period of three years after the date of the transaction in which the person became an interested stockholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon consummation of the transaction that 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 specified shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at or subsequent to the date of the transaction, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

Section 203 defines a "business combination" to include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any merger or consolidation involving the corporation and the interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any sale, lease, exchange, mortgage, pledge, transfer or other disposition of 10% or more of the assets of the corporation to or with the interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

In general, Section 203 defines an "interested stockholder" as any person that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the owner of 15% or more of the outstanding voting stock of the corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an affiliate or associate of the corporation who was the owner of 15% or more of the outstanding voting stock of the corporation at any time within three years immediately prior to the relevant date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the affiliates and associates of the above.

Under specific circumstances, Section 203 makes it more difficult for an "interested stockholder" to effect various business combinations with a corporation for a three-year period, although the stockholders may, by adopting an amendment to the corporation's second amended and restated certificate of incorporation or amended and restated bylaws, which will be in effect upon the consummation of this offering, elect not to be governed by this section, effective 12 months after adoption.

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Our second amended and restated certificate of incorporation and amended and restated bylaws, which will be in effect upon the consummation of this offering, do not exclude us from the restrictions of Section 203. We anticipate that the provisions of Section 203 might encourage companies interested in acquiring us to negotiate in advance with our board of directors since the stockholder approval requirement would be avoided if a majority of the directors then in office approve either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder.

*Second Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws.* Our second amended certificate of incorporation and amended and restated bylaws, which will be in effect upon the consummation of this offering, contain provisions that could have the effect of discouraging potential acquisition proposals or tender offers or delaying or preventing a change of control of our Company, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• vacancies on our board of directors, including newly created directorships, may be filled only by a majority vote of directors then in office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• special meetings of stockholders may only be called by our board of directors or a majority of holders of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrictive requirements (including advance notification of stockholder nominations and proposals) on how special meetings of stockholders may be called by our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not providing stockholders with the ability to cumulate their votes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• only our board of directors or a super-majority of our stockholders (66 2/3%) may amend our amended and restated bylaws.

These provisions affect your rights as a stockholder since they permit our board of directors to make it more difficult for common stockholders to replace members of the board of directors or undertake other significant corporate actions. Because our board of directors is responsible for appointing the members of our management team, these provisions could in turn affect any attempt to replace our current management team.

#### Exclusive Forum

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#### Elimination of Monetary Liability for Officers and Directors
Our second amended and restated certificate of incorporation that will be in effect immediately prior to the consummation of this offering will incorporate certain provisions permitted under the Delaware General Corporation Law relating to the liability of directors. The provisions eliminate a director's liability for monetary damages for a breach of fiduciary duty, including gross negligence, except in circumstances involving certain wrongful acts, such as the breach of director's duty of loyalty or acts or omissions, which involve intentional misconduct or a knowing violation of law. These provisions do not eliminate a director's duty of care. Moreover, these provisions do not apply to claims against a director for certain violations of law, including knowing violations of federal securities law. We believe that these provisions will assist us in attracting and retaining qualified individuals to serve as directors.

#### Indemnification of Officers and Directors
Our amended and restated certificate of incorporation contains, and our second amended and restated certificate of incorporation that will be in effect immediately prior to the consummation of this offering will contain, provisions to indemnify the directors, officers, employees or other agents to the fullest extent permitted by the Delaware General Corporation Law. These provisions may have the practical effect in certain cases of eliminating the ability of stockholders to collect monetary damages from directors. We are also a party to indemnification agreements with each of our directors. We believe that these provisions will assist us in attracting and retaining qualified individuals to serve as our directors.

#### Disclosure of Commission Position on Indemnification for Securities Act Liabilities
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

#### Listing
We have applied to have our common stock listed on Nasdaq under the symbol "ELMT." The closing of this offering is conditioned upon Nasdaq's final approval of our listing application, and there is no guarantee or assurance that our common stock will be approved for listing on Nasdaq.

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#### SHARES ELIGIBLE FOR FUTURE SALE
Immediately prior to this offering, there was no public market for our common stock. Future sales of substantial amounts of our common stock in the public market could adversely affect prevailing market prices. Furthermore, since only a limited number of shares will be available for sale shortly after this offering because of contractual and legal restrictions on resale described below, sales of substantial amounts of common stock in the public market after the restrictions lapse could adversely affect the prevailing market price for our common stock as well as our ability to raise equity capital in the future.

Based on the number of shares outstanding as of the date of this prospectus as described in this prospectus, upon the closing of this offering, approximately 27,968,528 shares of common stock will be outstanding, assuming an initial public offering price of $13.00 per share (the midpoint of the price range set forth on the cover page of this prospectus) offered hereby and further assuming no exercise of the underwriters' over-allotment option. Of the shares to be outstanding immediately after completion of the offering, all 7,692,307 shares sold in this offering will be freely tradable, except that any shares purchased in this offering by our affiliates, as that term is defined in Rule 144 under the Securities Act, would only be able to be sold in compliance with the Rule 144 limitations described below.

The remaining outstanding and unregistered shares of our common stock will be deemed "restricted securities" as defined in Rule 144. Restricted securities may be sold in the public market only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rule 144 or Rule 701 promulgated under the Securities Act, which rules are summarized below. In addition, all of our security holders have entered into market standoff agreements with us or lock-up agreements with the underwriters under which they have agreed, subject to specific exceptions, not to sell any of our stock for at least 180 days following the date of this prospectus, as described below. As a result of these agreements, subject to the provisions of Rule 144 or Rule 701, shares will be available for sale in the public market as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning on the date of this prospectus, all of the shares sold in this offering will be immediately available for sale in the public market (except as described above);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning 181 days after the consummation of this offering, up to 20,624,611 additional shares may become eligible for sale in the public market, provided that any shares held by "affiliates," as such term is defined in Rule 144, will be subject to the volume and other restrictions of Rule 144, as described below; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the remainder of the restricted shares, if any, will be eligible for sale from time to time thereafter upon expiration of their respective holding periods under and in accordance with Rule 144, as described below, but could be sold earlier if the holders exercise any available registration rights.

#### Rule 144
In general, under Rule 144 as currently in effect, beginning 90 days after the effective date of the registration statement of which this prospectus is a part, any person who is not an affiliate of ours and has held their shares for at least six months, as measured by SEC rules, including the holding period of any prior owner other than one of our affiliates, may sell shares without restriction, provided current public information about us is available. In addition, under Rule 144, any person who is not an affiliate of ours and has held their shares for at least one year, as measured by SEC rules, including the holding period of any prior owner other than one of our affiliates, would be entitled to sell an unlimited number of shares immediately upon the closing of this offering without regard to whether current public information about us is available. Beginning 90 days after the effective date of the registration statement of which this prospectus is a part, a person who is an affiliate of ours and who has beneficially owned restricted securities for at least six months, as measured by SEC rule, including the holding period of any prior owner other than one of our affiliates, is entitled to sell a number of restricted shares within any three-month period that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of shares of our common stock then outstanding, which will equal approximately 279,685 shares immediately after this offering; and

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

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Sales of restricted shares under Rule 144 held by our affiliates are also subject to requirements regarding the manner of sale, notice and the availability of current public information about us. Rule 144 also provides that affiliates relying on Rule 144 to sell shares of our common stock that are not restricted shares must nonetheless comply with the same restrictions applicable to restricted shares, other than the holding period requirement. Notwithstanding the availability of Rule 144, the holders of 20,624,611 shares of our common stock, including 348,390 shares of unvested restricted stock that will vest within 180 days of the consummation of this offering, have entered into lock-up agreements as described below and their restricted shares will become eligible for sale at the expiration of the restrictions set forth in those agreements.

#### Rule 701
Under Rule 701, shares of our common stock acquired upon the exercise of currently outstanding options or pursuant to other rights granted under our stock plans may be resold, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons other than affiliates, beginning 90 days after the effective date of the registration statement of which this prospectus is a part, subject only to the manner-of-sale provisions of Rule 144; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our affiliates, beginning 90 days after the effective date of the registration statement of which this prospectus is a part, subject to the manner-of-sale and volume limitations, current public information and filing requirements of Rule 144, in each case, without compliance with the six-month holding period requirement of Rule 144.

#### Lock-up Agreements
As of the effective date of the registration statement of which this prospectus is a part, we, all of our directors, officers and employees and the holders of our common stock, representing 100% of our outstanding shares prior to this offering will have entered into lock-up agreements with respect to the disposition of their shares. See "*Underwriting — Lock*-Up *Agreements*" for additional information. Cantor Fitzgerald & Co. has advised us that they have no current intent or arrangement to release any of the shares subject to the lock-up agreements prior to the expiration of the lock-up agreements.

#### Equity Incentive Plans
We intend to file registration statements on Form S-8 under the Securities Act after the closing of this offering to register the shares of our common stock that are issuable pursuant to our Equity Incentive Plans (see "*Executive Compensation — Equity Incentive Plans*"). The registration statement is expected to be filed and become effective as soon as practicable after the completion of this offering. Accordingly, shares registered under the registration statements will be available for sale in the open market following their effective dates, subject to Rule 144 volume limitations and the lock-up arrangement described above, if applicable.

#### Broker's Warrants
We have agreed to issue to Cantor, upon the closing of this offering for its role as sole structuring advisor in connection with this offering, or its permitted designees, for nominal consideration, warrants to purchase 115,384 shares of our common stock (1.5% of the shares sold in this offering) as additional consideration for its services (assuming no exercise of the underwriters' overallotment option). The Broker's Warrants will have an exercise price equal to 125% of the public offering price in this offering and will be exercisable beginning six months following the closing of this offering and for a period of four years thereafter, and will contain customary "cashless" exercise and registration rights provisions. See "*Underwriting — Broker's Warrants*."

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#### MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U .S. HOLDERS
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 common stock issued pursuant to this offering, but does not purport to be a complete analysis of all potential tax effects or considerations that may be relevant for Non-U.S. Holders. 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 Internal Revenue Code of 1986, as amended, Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the Internal Revenue Service (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 common stock.

This discussion is limited to Non-U.S. Holders that hold our 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. expatriates and former citizens or long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding our common stock as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks, insurance companies, and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• brokers, dealers, or traders in securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "controlled foreign corporations," "passive foreign investment companies," and corporations that accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships or other pass-through entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt organizations or governmental organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons deemed to sell our common stock under the constructive sale provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons who hold or receive our common stock pursuant to the exercise of any employee stock option or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Taxpayers subject to special accounting rules under Section 451(b) of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-qualified retirement plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "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.

If an entity treated as a partnership for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our common stock and the partners in such partnerships should consult their own tax advisors regarding the U.S. federal income tax consequences to them.

**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 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.**

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#### Definition of a Non-U .S. Holder
For purposes of this discussion, a "Non-U.S. Holder" is any beneficial owner of our 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation created or organized under the laws of the United States, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust that (1) is subject to the primary supervision of a U.S. court and all substantial decisions of which are subject to 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 "*Dividend Policy*," we do not anticipate declaring or paying dividends to holders of our common stock in the foreseeable future. However, if we do make distributions of cash or property on our 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 common stock, but not below zero. Any excess will be treated as capital gain and will be treated as described under "*— Sale or Other Taxable Disposition*" below.

Subject to the discussion below regarding effectively connected income, dividends paid to a Non-U.S. Holder will 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 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 tax treaties.

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 applicable to U.S. persons. 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 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 discussions below described under "— *Information Reporting and Backup Withholding"* and *"— Additional Withholding Tax on Payments Made to Foreign Accounts,*" a Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our common stock constitutes a U.S. real property interest ("USRPI") by reason of our status as a U.S. real property holding corporation ("USRPHC") for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of such sale or other taxable disposition or the Non-U.S. Holder's holding period for such securities sold or disposed of.

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 applicable to U.S. persons. 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 common stock, which may be offset by certain 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.

Generally, a corporation is a USRPHC only if the fair market value of its United States real property interests (as defined in the Internal Revenue Code) equals or exceeds 50% of the sum of the fair market value of its collective real property interests plus its other assets used or held for use in a trade or business. With respect to the third bullet point above, we believe we currently are not, and do not anticipate becoming, a USRPHC. Because the determination of whether we are a USRPHC depends, however, 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. Even if we are or were to become a USRPHC, gain arising from the sale or other taxable disposition of our common stock by a Non-U.S. Holder will not be subject to U.S. federal income tax if our common stock is "regularly traded," as defined by applicable Treasury Regulations, on an established securities market and such Non-U.S. Holder owned, actually and constructively, 5% or less of our common stock throughout 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.

Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

#### Information Reporting and Backup Withholding
Payments of dividends on our common stock will not be subject to backup withholding, provided the Non-U.S. Holder 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 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 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 so long as the applicable withholding agent receives the certification described above or the Non-U.S. Holder otherwise establishes an exemption. Proceeds of a disposition of our common stock conducted through a non-U.S. office of a non-U.S. broker that does not have certain enumerated relationships with the United States generally will not be subject to backup withholding or information reporting. However, for information reporting purposes, dispositions effected through a non-U.S. office of a U.S. broker or a foreign broker with substantial U.S. ownership or operations generally will be treated in a manner similar to dispositions effected through a U.S. office of a broker.

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.

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#### Additional Withholding Tax on Payments Made to Foreign Accounts
Withholding taxes may be imposed under Sections 1471 to 1474 of the Code, together with other U.S. Treasury and IRS guidance issued thereunder (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 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 identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. 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 applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our common stock. While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of our common stock beginning on 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 common stock (or the entities through which they hold our common stock), including the process and deadlines for meeting the applicable requirements to prevent the imposition of this 30% withholding tax under FATCA.

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#### UNDERWRITING
Subject to the terms and conditions set forth in the underwriting agreement, dated , 2026, between us and Cantor Fitzgerald & Co., 499 Park Avenue, New York, New York 10022, as representative of the underwriters named below (the "Representative"), we have agreed to sell to the underwriters, and each of the underwriters has agreed, severally and not jointly, to purchase from us, the shares of common stock shown opposite its name below:

---

| | |
|:---|:---|
|  **Underwriter** | **Number of <br>Shares** |
|  Cantor Fitzgerald & Co. |  |
|  Needham & Company, LLC |  |
|  Canaccord Genuity LLC |  |
|  Roth Capital Partners, LLC |  |
| &nbsp;&nbsp;&nbsp; Total |  |

---

The underwriting agreement provides that the obligations of the several underwriters are subject to certain conditions precedent such as the receipt by the underwriters of officers' certificates and legal opinions and approval of certain legal matters by their counsel. The underwriting agreement provides that the underwriters will purchase all of the shares of common stock if any of them are purchased. We have agreed to indemnify the underwriters and certain of their controlling persons against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters may be required to make in respect of those liabilities.

The underwriters are offering the shares of common stock subject to their acceptance of the shares of common stock from us and subject to prior sale. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part. In addition, the underwriters have advised us that they do not intend to confirm sales to any account over which they exercise discretionary authority.

#### Option to Purchase Additional Shares
We have granted to the underwriters an option, exercisable 30 days from the date of this prospectus, to purchase, from time to time, in whole or in part, up to an aggregate of 1,153,846 shares from us at the public offering price set forth on the cover page of this prospectus, less underwriting discounts and commissions. If the underwriters exercise this option, each underwriter will be obligated, subject to certain conditions, to purchase a number of additional shares approximately proportionate to that underwriter's initial purchase commitment as indicated in the table above.

#### Commission and Expenses
The underwriters have advised us that they propose to offer the shares of common stock to the public at the public offering price set forth on the cover page of this prospectus and to certain dealers, which may include the underwriters, at that price less a concession not in excess of $ per share of common stock. The underwriters may allow, and certain dealers may reallow, a discount from the concession not in excess of $ per share of common stock to certain brokers and dealers. After the initial offering, the Representative may change the offering price and other selling terms.

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The following table shows the public offering price, the underwriting discounts and commissions that we are to pay the underwriters and the proceeds, before expenses, to us in connection with this offering. Such amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional shares.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Per Share** | **Per Share** | **Total** | **Total** |
|  | **Without Option <br>to Purchase <br>Additional <br>Shares** | **With Option <br>to Purchase <br>Additional <br>Shares** | **Without Option <br>to Purchase <br>Additional <br>Shares** | **With Option <br>to Purchase <br>Additional <br>Shares** |
|  Public offering price | $| $| $| $|
|  Underwriting discounts and commissions<sup>(1)</sup> | $| $| $| $|
|  Proceeds to us, before expenses | $| $| $| $|

---

____________

(1) The underwriting discounts and commissions reflected in this table do not include (i) the issuance by us of the Broker's Warrants to Cantor (see "— *Broker's Warrants*" below) or (ii) the reimbursement by us of certain expenses as described below.

We estimate expenses payable by us in connection with this offering, other than the underwriting discounts and commissions referred to above, will be approximately $2.4 million. We have also agreed to reimburse the underwriters for certain reasonable out-of-pocket and legal expenses incurred in connection with this offering, not to exceed $450,000, some or all of which reimbursed expenses may be deemed underwriting compensation for this offering by FINRA.

#### Broker's Warrants
We have agreed to issue to Cantor, upon the closing of this offering, for its role as sole structuring advisor in connection with this offering, or its permitted designees, for nominal consideration, warrants to purchase 115,384 shares of our common stock (1.5% of the shares sold in this offering) as additional consideration for its services (assuming no exercise of the underwriters' overallotment option) at an exercise price equal to 125% of the public offering price in this offering. Subject to FINRA Rule 5110(e)(1), the Broker's Warrants will be exercisable, in whole or in part, beginning six months following the closing of this offering and for a period of four years thereafter, and will contain customary "cashless" exercise and registration rights provisions.

In addition, pursuant to FINRA Rule 5110, the Broker's Warrants and the shares of common stock underlying the Broker's Warrants are deemed by FINRA to be underwriting compensation for this offering, and, as such, they will be subject to lock-up restrictions, as required by FINRA Rule 5110(e)(1), and may not be sold during this offering, or sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days immediately following the date of effectiveness of the registration statement of which this prospectus forms a part or the commencement of sales under this offering, except as provided in FINRA Rule 5110(e)(2).

The exercise price and the number of shares of common stock issuable upon exercise of the Broker's Warrants may be adjusted in certain circumstances, including in the event of a stock dividend, extraordinary cash dividend, or recapitalization, reorganization, merger or consolidation. You should review a copy of the form of the Broker's Warrants, which will be included an exhibit to the registration statement of which this prospectus forms a part, for a complete description of the terms and conditions applicable to the Broker's Warrants.

#### Determination of Offering Price
Prior to this offering, there has not been a public market for our common stock. Consequently, the initial public offering price for our common stock will be determined by negotiations between us and the Representative. Among the factors to be considered in these negotiations will be prevailing market conditions, our financial information, market valuations of other companies that we and the underwriters believe to be comparable to us, estimates of our business potential, the present state of our development and other factors deemed relevant.

We offer no assurances that the initial public offering price will correspond to the price at which the common stock will trade in the public market subsequent to the offering or that an active trading market for the common stock will develop and continue after the offering.

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#### Listing
We have applied to list our common stock on Nasdaq under the trading symbol "ELMT." The approval of our common stock for listing on Nasdaq is a condition to the closing of this offering.

#### No Sales of Similar Securities
We, our officers and our directors and other holders representing 100% of our outstanding common stock/the holders of all outstanding stock have agreed, subject to certain specified exceptions, not to directly or indirectly, for a period of 180 days after the date of the underwriting agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sell, offer, contract or grant any option to sell (including any short sale), pledge, transfer, establish an open "put equivalent position" within the meaning of Rule 16a-l(h) under the Securities Exchange Act of 1934, as amended, or otherwise dispose of, any shares of common stock, options or warrants to acquire shares of common stock, or securities exchangeable or exercisable for or convertible into shares of common stock currently or hereafter owned either of record or beneficially,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enter into any swap, hedge or other agreement or transaction that transfers, in whole or in part, the economic consequence of ownership of common stock, or securities exchangeable or exercisable for or convertible into shares of common stock, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• publicly announce an intention to do any of the foregoing for a period of 180 days after the date of this prospectus without the prior written consent of the Representative.

In addition, we and each such person agrees that, without the prior written consent of the Representative, we or such other person will not, during the restricted period, make any demand for, or exercise any right with respect to, the registration of any shares of our common stock or any security convertible into or exercisable or exchangeable for common stock.

The restrictions on transfer do not apply in certain circumstances, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transfers in certain circumstances, in each case not involving a disposition for value and pursuant to which the transferee agrees to the conditions of the lock-up agreements and, in the cases described in paragraphs (i) through (vi) below, are not reportable to the SEC under the Exchange Act, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as a bona fide gift or gifts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to any trust for the direct or indirect benefit of the holder or the immediate family of the holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to any corporation, partnership, limited liability company, or other business entity all of the equity holders of which consist of the holder and/or the immediate family of the holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the holder is 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 controls, is controlled by or is under common control with the holder (with "control" being as defined in Rule 405 under the Securities Act) or (b) in the form of a distribution to limited partners, limited liability company members or stockholders of the holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if the holder is a trust, to the beneficiary of such trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) pursuant to a qualified domestic order or in connection with a divorce settlement; and

(vii) by will or intestacy or any other testamentary document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to us upon death, disability, or if the holder is our employee, termination of employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to us in connection with the vesting, settlement, or exercise of restricted stock units, options, warrants or other rights to purchase shares of common stock (including, in each case, by way of "net" or "cashless" exercise), including for the payment of exercise price and tax and remittance payments due as a result of

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the vesting, settlement, or exercise of such restricted stock units, options, warrants or rights, held pursuant to an agreement or equity awards granted under a stock incentive plan or other equity award plan described in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the exercise of outstanding options, settlement of certain restricted stock units or other equity awards or the exercise of certain warrants pursuant to plans described in this prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the conversion of outstanding preferred stock, warrants to acquire preferred stock or convertible securities into shares of common stock or warrants to acquire shares of common stock.

The Representative may, in its sole discretion and at any time or from time to time before the termination of the 180-day period release all or any portion of the securities subject to lock-up agreements.

#### Market Making, Stabilization and Other Transactions
The underwriters may make a market in the common stock as permitted by applicable laws and regulations. However, the underwriters are not obligated to do so, and the underwriters may discontinue any market-making activities at any time without notice in their sole discretion. Accordingly, no assurance can be given as to the liquidity of the trading market for the common stock, that you will be able to sell any of the common stock held by you at a particular time or that the prices that you receive when you sell will be favorable.

The underwriter have advised us that they, pursuant to Regulation M under the Securities Exchange Act of 1934, as amended, and certain persons participating in the offering, may engage in short sale transactions, stabilizing transactions, syndicate covering transactions or the imposition of penalty bids in connection with this offering. These activities may have the effect of stabilizing or maintaining the market price of the common stock at a level above that which might otherwise prevail in the open market. Establishing short sales positions may involve either "covered" short sales or "naked" short sales.

"Covered" short sales are sales made in an amount not greater than the underwriters' option to purchase additional shares of our common stock in this offering. The underwriters may close out any covered short position by either exercising their option to purchase additional shares of our common stock or purchasing shares of our common stock in the open market. In determining the source of shares to close out the covered short position, the underwriters will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase shares through the option to purchase additional shares.

"Naked" short sales are sales in excess of the option to purchase additional shares of our common stock. The underwriters must close out any naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the shares of our common stock in the open market after pricing that could adversely affect investors who purchase in this offering.

A stabilizing bid is a bid for the purchase of shares of common stock on behalf of the underwriters for the purpose of fixing or maintaining the price of the common stock. A syndicate covering transaction is the bid for or the purchase of shares of common stock on behalf of the underwriters to reduce a short position incurred by the underwriters in connection with the offering. Similar to other purchase transactions, the underwriters' purchases to cover the syndicate short sales may have the effect of raising or maintaining the market price of our common stock or preventing or retarding a decline in the market price of our common stock. As a result, the price of our common stock may be higher than the price that might otherwise exist in the open market. A penalty bid is an arrangement permitting the underwriters to reclaim the selling concession otherwise accruing to a syndicate member in connection with the offering if the common stock originally sold by such syndicate member are purchased in a syndicate covering transaction and therefore have not been effectively placed by such syndicate member.

Neither we, nor any of the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of our common stock. The underwriters are not obligated to engage in these activities and, if commenced, may end any of these activities at any time.

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#### Passive Market Making
The underwriters may also engage in passive market making transactions in our common stock on the NASDAQ in accordance with Rule 103 of Regulation M during a period before the commencement of offers or sales of shares of our common stock in this offering and extending through the completion of distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, that bid must then be lowered when specified purchase limits are exceeded. Passive market making may cause the price of our common stock to be higher than the price that otherwise would exist in the open market in the absence of those transactions. The underwriters are not required to engage in passive market making and, if commenced, may end passive market making activities at any time.

#### Electronic Distribution
A prospectus in electronic format may be made available by e-mail or on the web sites or through online services maintained by one or more of the underwriters, selling group members (if any) or their affiliates. The underwriters may agree with us to allocate a specific number of shares of common stock for sale to online brokerage account holders. Any such allocation for online distributions will be made by the underwriters on the same basis as other allocations. Other than the prospectus in electronic format, the information on the underwriters' web sites and any information contained in any other web site maintained by any of the underwriters is not part of this prospectus, has not been approved and/or endorsed by us or the underwriters and should not be relied upon by investors.

#### Other Activities and Relationships
The underwriters and certain of their respective affiliates are full service financial institutions engaged in a wide range of activities for their own accounts and the accounts of customers, which may include, among other things, corporate finance, mergers and acquisitions, merchant banking, equity and fixed income sales, trading and research, derivatives, foreign exchange, futures, asset management, custody, clearance and securities lending. The underwriters and certain of their affiliates may in the future perform, various investment banking and financial advisory services for us and our affiliates, for which they will receive customary fees and expenses.

In addition, in the ordinary course of their business, the underwriters and their respective affiliates may, directly or indirectly, hold long or short positions, trade and otherwise conduct such activities in or with respect to debt or equity securities and/or bank debt of, and/or derivative products. Such investment and securities activities may involve our securities and instruments. The underwriters and their respective affiliates may also make investment recommendations or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long or short positions in such securities and instruments.

#### Stamp Taxes
If you purchase shares of common stock offered in this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the offering price listed on the cover page of this prospectus.

#### Directed Share Program
At our request, the underwriters have reserved up to 2.0% of the shares offered by this prospectus for sale (excluding the additional shares that the underwriters have an option to purchase within 30 days from the date of this prospectus), at the initial public offering price, to certain individuals through a directed share program, including certain of our directors, officers, and employees, as well as certain other individuals identified by us. These sales would be made at our direction based on a list our management will provide to the underwriters and will be administered by one of the underwriters. Following the filing of the preliminary prospectus, an invitation package will be made available or sent to each person identified by management, which will include the preliminary prospectus and other directed share program documentation. An invitation to participate in the directed share program does not guarantee that the participant will receive an allocation of shares. Accordingly, we cannot provide any assurance that any eligible participant will receive an invitation or will receive an allocation in the directed share program.

Prospective participants must submit required documentation to the program administrator. The program administrator will not accept orders from any participant until after the registration statement for this offering is declared effective, this offering is priced and the participants are notified of their final allocation and given an

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opportunity to confirm that they wish to purchase the shares allocated to them. If the directed share program is oversubscribed, allocations will be made at the discretion of management to eligible participants that indicated an interest in purchasing. After the registration statement has been declared effective and this offering is priced, we will prepare a final approved list of allocations. The program administrator will notify each participant of his or her respective share allocation, along with the total purchase price due upon confirmation of participation. Thereafter, participants who confirm their allocation and elect to participate will be required to fully fund their account with the program administrator to pay the purchase price for the shares by the closing of this offering. The shares under the directed share program will be allocated following pricing and will settle in the same manner as the shares sold to the general public.

The number of shares of our common stock available for sale to the general public in this offering will be reduced to the extent that such persons purchase such reserved shares. Any reserved shares not so purchased will be offered by the underwriters to the general public on the same terms as the other shares of common stock offered by this prospectus. We have agreed to indemnify the underwriters against certain liabilities and expenses, including liabilities under the Securities Act, in connection with the directed share program. Shares purchased through the directed share program will not be subject to a lock-up restriction, except in the case of shares purchased by any of our directors, executive officers or current stockholders, which shares will be subject to a 180-day lock-up restriction (as described above).

#### Selling Restrictions
No action has been taken in any jurisdiction (except in the United States) that would permit a public offering of the securities, or the possession, circulation or distribution of this prospectus or any other material relating to us or the securities in any jurisdiction where action for that purpose is required. Accordingly, the securities may not be offered or sold, directly or indirectly, and neither this prospectus nor any other material or advertisements in connection with the securities may be distributed or published, in or from any country or jurisdiction except in compliance with any applicable laws, rules and regulations of any such country or jurisdiction.

#### Canada
This prospectus constitutes an "exempt offering document" as defined in and for the purposes of applicable Canadian securities laws. No prospectus has been filed with any securities commission or similar regulatory authority in Canada in connection with the offer and sale of the securities. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this prospectus or on the merits of the securities and any representation to the contrary is an offence.

**Canadian investors are advised that this prospectus has been prepared in reliance on section 3A.3 of National Instrument 33**-105 ***Underwriting Conflicts* ("NI 33**-105**"). Pursuant to section 3A.3 of NI 33**-105**, this prospectus is exempt from the requirement that the issuer and the underwriters provide investors with certain conflicts of interest disclosure pertaining to "connected issuer" and/or "related issuer" relationships that may exist between the issuer and the underwriters as would otherwise be required pursuant to subsection 2.1(1) of NI 33**-105**.**

#### Resale Restrictions
The offer and sale of the securities in Canada is being made on a private placement basis only and is exempt from the requirement that the issuer prepares and files a prospectus under applicable Canadian securities laws. Any resale of the securities acquired by a Canadian investor in this offering must be made in accordance with applicable Canadian securities laws, which may vary depending on the relevant jurisdiction, and which may require resales to be made in accordance with Canadian prospectus requirements, pursuant to a statutory exemption from the prospectus requirements, in a transaction exempt from the prospectus requirements or otherwise under a discretionary exemption from the prospectus requirements granted by the applicable local Canadian securities regulatory authority. These resale restrictions may under certain circumstances apply to resales of the securities outside of Canada.

#### Representations of Purchasers
Each Canadian investor who purchases the securities will be deemed to have represented to the issuer and the underwriters that the investor (i) is purchasing the securities as principal, or is deemed to be purchasing as principal in accordance with applicable Canadian securities laws, for investment only and not with a view to resale

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or redistribution; (ii) is an "accredited investor" as such term is defined in section 1.1 of National Instrument 45-106 *Prospectus Exemptions* ("NI 45-106") or, in Ontario, as such term is defined in section 73.3(1) of the *Securities Act* (Ontario); and (iii) is a "permitted client" as such term is defined in section 1.1 of National Instrument 31-103 *Registration Requirements, Exemptions and Ongoing Registrant Obligations*.

#### Taxation and Eligibility for Investment
Any discussion of taxation and related matters contained in this prospectus does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a Canadian investor when deciding to purchase the securities and, in particular, does not address any Canadian tax considerations. No representation or warranty is hereby made as to the tax consequences to a resident, or deemed resident, of Canada of an investment in the securities or with respect to the eligibility of the securities for investment by such investor under relevant Canadian federal and provincial legislation and regulations.

#### Rights of Action for Damages or Rescission
Securities legislation in certain of the Canadian jurisdictions provides certain purchasers of securities pursuant to an offering memorandum (such as this prospectus), including where the distribution involves an "eligible foreign security" as such term is defined in Ontario Securities Commission Rule 45-501 *Ontario Prospectus and Registration Exemptions* and in Multilateral Instrument 45-107 *Listing Representation and Statutory Rights of Action Disclosure Exemptions*, as applicable, with a remedy for damages or rescission, or both, in addition to any other rights they may have at law, where the offering memorandum, or other offering document that constitutes an offering memorandum, and any amendment thereto, contains a "misrepresentation" as defined under applicable Canadian securities laws. These remedies, or notice with respect to these remedies, must be exercised or delivered, as the case may be, by the purchaser within the time limits prescribed under, and are subject to limitations and defenses under, applicable Canadian securities legislation. In addition, these remedies are in addition to and without derogation from any other right or remedy available at law to the investor.

#### Language of Documents
Upon receipt of this document, each Canadian investor hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the securities described herein (including for greater certainty any purchase confirmation or any notice) be drawn up in the English language only. *Par la réception de ce document, chaque investisseur Canadien confirme par les présentes qu'il a expressément exigé que tous les documents faisant foi ou se rapportant de quelque manière que ce soit à la vente des valeurs mobilières décrites aux présentes (incluant, pour plus de certitude, toute confirmation d'achat ou tout avis) soient rédigés en anglais seulement.*

#### Australia
This document does not constitute a prospectus, product disclosure statement or other disclosure document under the Australia's Corporations Act 2001 (Cth) (the "Corporations Act") of Australia. This document has not been lodged with the Australian Securities & Investments Commission and is only directed to the categories of exempt persons set out below. Accordingly, if you receive this document in Australia:

You confirm and warrant that you are either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "sophisticated investor" under section 708(8)(a) or (b) of the Corporations Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "sophisticated investor" under section 708(8)(c) or (d) of the Corporations Act and that you have provided an accountant's certificate to the company which complies with the requirements of section 708(8)(c)(i) or (ii) of the Corporations Act and related regulations before the offer has been made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "professional investor" within the meaning of section 708(11)(a) or (b) of the Corporations Act.

To the extent that you are unable to confirm or warrant that you are an exempt sophisticated investor or professional investor under the Corporations Act any offer made to you under this document is void and incapable of acceptance.

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You warrant and agree that you will not offer any of the shares issued to you pursuant to this document for resale in Australia within 12 months of those securities being issued unless any such resale offer is exempt from the requirement to issue a disclosure document under section 708 of the Corporations Act.

#### European Economic Area
In relation to each member state of the European Economic Area (each a "Member State"), no securities have been offered or will be offered pursuant to the offer described herein in that Member State prior to the publication of a prospectus in relation to the securities which has been approved by the competent authority in that Member State or, where appropriate, approved in another Member State and notified to the competent authority in that Member State, all in accordance with the Prospectus Regulation, except that the securities may be offered to the public in that Member State at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to any legal entity which is a qualified investor as defined under Article 2 of the Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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 underwriters for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of securities shall require the issuer or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

Each person in a Member State who acquires any securities in the offer or to whom any offer is made will be deemed to have represented, acknowledged and agreed to and with the issuer and the underwriters that it is a qualified investor within the meaning of the Prospectus Regulation.

In the case of any securities being offered to a financial intermediary as that term is used in Article 5(1) of the Prospectus Regulation, each such financial intermediary will be deemed to have represented, acknowledged and agreed to and with the issuer and the underwriters that the securities 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 to the public other than their offer or resale in a Member State to qualified investors, in circumstances in which the prior consent of the underwriters has been obtained to each such proposed offer or resale. Neither the issuer nor the underwriters have authorised, nor do they authorise, the making of any offer of securities through any financial intermediary, other than offers made by the underwriters which constitute the final placement of securities contemplated in this document.

The issuer and the underwriters and their affiliates will rely upon the truth and accuracy of the foregoing representations, acknowledgements and agreements.

For the purposes of this provision, the expression an "offer to the public" in relation to any securities in any Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any securities to be offered so as to enable an investor to decide to purchase, or subscribe for, any securities and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

In Member States, this document is being distributed only to, and is directed only at, persons who are "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation ("Qualified Investors"). This document must not be acted on or relied on in any Member State by persons who are not Qualified Investors. Any investment or investment activity to which this document relates is available in any Member State only to Qualified Investors and will be engaged in only with such persons.

#### Hong Kong
No securities have been, may be or will be offered or sold in Hong Kong, by means of any document, other than to persons whose ordinary business is to buy or sell shares or debentures, whether as principal or agent; or to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong (the "SFO") and any rules made thereunder; or 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 "C(WUMP)O"), or which do not constitute an offer to the public within the meaning of the C(WUMP)O. No

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document, invitation or advertisement relating to the securities has been issued or may be issued or will be issued or may be in the possession of any person for the purpose of issue (in each case 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 under the securities laws of Hong Kong) other than with respect to securities 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.

This document has not been and will not be registered with the Registrar of Companies in Hong Kong. Accordingly, this document may not be issued, circulated or distributed in Hong Kong, and the securities may not be offered for subscription to members of the public in Hong Kong. Each person acquiring the securities will be required, and is deemed by the acquisition of the securities, to confirm that he is aware of the restriction on offers of the securities described in this document and the relevant offering documents and that he is not acquiring, and has not been offered any securities in circumstances that contravene any such restrictions.

#### Japan
The offering has not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948 of Japan, as amended) (the "FIEA"), and the Initial Purchaser will not offer or sell any securities, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means, unless otherwise provided herein, 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 a resident of Japan, except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the FIEA and any other applicable laws, regulations and ministerial guidelines of Japan.

#### Singapore
This document has not been and will not be lodged or registered with the Monetary Authority of Singapore. Accordingly, this document and any other document or material in connection with the offer or sale, or the invitation for subscription or purchase of the securities may not be issued, circulated or distributed, nor may the securities be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor under Section 274 of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA"), (ii) to a relevant person as defined under Section 275(2) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions, specified in Section 275 of the SFA and (where applicable) Regulation 3 of the Securities and Futures (Classes of Investors) Regulations 2018, or (iii) otherwise pursuant to, and in accordance with the conditions of any other applicable provision of the SFA. **In the event that you are not an investor falling within any of the categories set out above, please return this document immediately. You may not forward or circulate this document to any other person in Singapore.**

No offer is made to you with a view to the securities being subsequently offered for sale to any other party. There are on-sale restrictions that may be applicable to investors who acquire securities. As such, investors are advised to acquaint themselves with the provisions of the SFA relating to resale restrictions and comply accordingly.

Where the securities are subscribed or purchased under Section 275 of the SFA by a relevant person which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (which is not an accredited investor as defined under Section 4A of the SFA) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary is an accredited investor,

securities or securities-based derivatives contracts (each term as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable within six months after that corporation or that trust has acquired the securities under Section 275 of the SFA except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to an institutional investor under Section 274 of the SFA or to a relevant person defined in Section 275(2) of the SFA, or to any person pursuant to an offer referred to in Section 275(1A) or Section 276(4)(i)(B) of the SFA;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• where no consideration is given for the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• where the transfer is by operation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as specified in Section 276(7) of the SFA; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as specified in Regulation 37A of the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations 2018 of Singapore.

#### Switzerland
The securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange, or SIX, or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the securities or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, the issuer or the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority FINMA, or FINMA, and the offer of securities has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes, or CISA. The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of securities.

#### Israel
This document does not constitute a prospectus under the Israeli Securities Law, 5728-1968, or the Securities Law, and has not been filed with or approved by the Israel Securities Authority. In the State of Israel, this document is being distributed only to, and is directed only at, and any offer of the shares is directed only at, investors listed in the first addendum, or the Addendum, to the Israeli Securities Law, consisting primarily of joint investment in trust funds, provident funds, insurance companies, banks, portfolio managers, investment advisors, members of the Tel Aviv Stock Exchange, underwriters, venture capital funds, entities with equity in excess of NIS 50 million and "qualified individuals", each as defined in the Addendum (as it may be amended from time to time), collectively referred to as qualified investors (in each case purchasing for their own account or, where permitted under the Addendum, for the accounts of their clients who are investors listed in the Addendum). Qualified investors will be required to submit written confirmation that they fall within the scope of the Addendum, are aware of the meaning of same and agree to it.

#### United Kingdom
In relation to the United Kingdom, no securities have been offered or will be offered pursuant to the offer described herein to the public in the United Kingdom prior to the publication of a prospectus in relation to the securities which has been approved by the UK Financial Conduct Authority, except that the securities may be offered to the public in the United Kingdom at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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 underwriters for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000 (as amended) (the "FSMA"),

provided that no such offer of the securities shall require the issuer or any underwriter to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

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Each person in the United Kingdom who acquires any securities in the offer or to whom any offer is made will be deemed to have represented, acknowledged and agreed to and with the issuer and the underwriters that it is a qualified investor within the meaning of the UK Prospectus Regulation.

In the case of any securities being offered to a financial intermediary as that term is used in Article 5(1) of the UK Prospectus Regulation, each such financial intermediary will be deemed to have represented, acknowledged and agreed to and with the issuer and the underwriters that the securities 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 to the public other than their offer or resale in the United Kingdom to qualified investors, in circumstances in which the prior consent of the underwriters has been obtained to each such proposed offer or resale. Neither the issuer nor the underwriters have authorized, nor do they authorize, the making of any offer of securities through any financial intermediary, other than offers made by the underwriters which constitute the final placement of securities contemplated in this document.

The issuer and the underwriters and their affiliates will rely upon the truth and accuracy of the foregoing representations, acknowledgements and agreements.

For the purposes of this provision, the expression an "offer to the public" in relation to the securities 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 securities to be offered so as to enable an investor to decide to purchase or subscribe for any securities and the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of United Kingdom law by virtue of the European Union (Withdrawal) Act 2018.

In the United Kingdom, this document is being distributed only to, and is directed only at, persons who are "qualified investors" within the meaning of Article 2(e) of the UK Prospectus Regulation who are also: (i) persons who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"); (ii) persons falling within Article 49(2) of the Order; or (iii) persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). This document must not be acted on or relied on in the United Kingdom by persons who are not relevant persons. Any investment or investment activity to which this document relates is available in the United Kingdom only to relevant persons and will be engaged in only with such persons.

Any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) may only be communicated or caused to be communicated in connection with the issue or sale of the securities in circumstances in which Section 21(1) of the FSMA does not apply. All applicable provisions of the FSMA and the Order must be complied with in respect of anything done by any person in relation to the securities in, from or otherwise involving the United Kingdom.

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#### EXPERTS
The consolidated financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) as of and for the years ended December 31, 2025 and 2024, included in this Prospectus and Registration Statement, have been audited by RSM US LLP, an independent registered public accounting firm, as stated in their report thereon, which report expresses an unqualified opinion and includes an explanatory paragraph relating to a Common Control Reorganization Subsequent Event, and have been included in this Prospectus and Registration Statement in reliance upon such report and upon the authority of such firm as experts in accounting and auditing.

#### LEGAL MATTERS
Ellenoff Grossman & Schole LLP, New York, New York, is acting as counsel in connection with the registration of our common stock under the Securities Act, and as such, will pass upon the validity of the securities offered hereby. Certain matters are being passed on for the underwriters by Thompson Coburn LLP.

#### WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of 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 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 *https://www.theelmetgroup.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 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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#### INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
**ANANIA & ASSOCIATES AND SUBSIDIARIES (a/k/a THE ELMET GROUP CO.)**<br>AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024<br>

---

| | |
|:---|:---|
|  **CONSOLIDATED FINANCIAL STATEMENTS** | **Page(s)** |
|  [Report of Independent Registered Public Accounting Firm — PCAOB ID 49](#T1510) | F-2 |
|  [Consolidated Balance Sheets as of December 31, 2025 and 2024](#T9901) | F-3 |
|  [Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024](#T9902) | F-4 |
|  [Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025 and 2024](#T9903) | F-5 |
|  [Consolidated Statements of Changes in Stockholders' Equity for the Years Ended December 31, 2024](#T9904) | F-6 |
|  [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#T9905) | F-7 – F-8 |
|  [Notes to Consolidated Financial Statements](#T9906) | F-9 – F-48 |

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#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of <br>Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.)

#### Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in stockholders' equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, 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 the years then ended, in conformity with accounting principles generally accepted in the United States of America.

#### Subsequent Event — Common Control Reorganization
As discussed in Note 1 and Note 18 to the financial statements, on January 2, 2026, the Company effected a common control reorganization (the Reorganization), which resulted in the ownership interests in the Company being exchanged for shares of common stock in The Elmet Group Co. Following the Reorganization, Anania & Associates and its subsidiaries, except for Anania and Associates Investment Company LLC, are wholly owned by The Elmet Group Co. The impact of the Reorganization has not been reflected in the financial statements.

#### 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 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/ RSM US LLP

We have served as the Company's auditor since 2025.

Boston, Massachusetts<br>March 6, 2026

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)<br> CONSOLIDATED BALANCE SHEETS<br> (in thousands, except share data)

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2025** | **December 31, <br>2024** |
|  **Assets** |  |  |
|  Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $1759 | $3613 |
| &nbsp;&nbsp;&nbsp; Marketable securities | 202 | 96 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 28904 | 32759 |
| &nbsp;&nbsp;&nbsp; Government grant receivables | 1690 |  |
| &nbsp;&nbsp;&nbsp; Related party receivables | 426 | 199 |
| &nbsp;&nbsp;&nbsp; Unbilled revenue | 2621 | 1349 |
| &nbsp;&nbsp;&nbsp; Inventories, net | 69697 | 56247 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 4774 | 3830 |
| &nbsp;&nbsp;&nbsp; Current assets – discontinued operations |  | 5085 |
|  Total current assets | 110073 | 103178 |
|  Property, plant and equipment, net | 42342 | 40822 |
|  Operating lease right-of-use assets | 10586 | 11477 |
|  Intangible assets, net | 7184 | 8027 |
|  Goodwill | 4583 | 3851 |
|  Other assets | 878 | 829 |
|  Non-current assets – discontinued operations |  | 6296 |
|  Total assets | $175646 | $174480 |
|  **Liabilities and Stockholders' Equity** |  |  |
|  Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | $16165 | $13257 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | 13659 | 10766 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, current portion | 875 | 770 |
| &nbsp;&nbsp;&nbsp; Current portion of long-term debt – related party | 2319 | 1500 |
| &nbsp;&nbsp;&nbsp; Current portion of long-term debt | 7755 | 6239 |
| &nbsp;&nbsp;&nbsp; Deferred government grants | 4672 | 7605 |
| &nbsp;&nbsp;&nbsp; Deferred revenue | 14853 | 10085 |
| &nbsp;&nbsp;&nbsp; Current liabilities – discontinued operations |  | 3121 |
|  Total current liabilities | 60298 | 53343 |
|  Operating lease liabilities, net of current portion | 10247 | 11128 |
|  Long-term debt, net of current portion | 28455 | 25823 |
|  Long-term debt, net of current portion – related party | 15000 | 16167 |
|  Other liabilities | 1189 | 691 |
|  Non-current liabilities – discontinued operations |  | 5735 |
|  Total liabilities | 115189 | 112887 |
|  Commitments and Contingencies (Note 16) |  |  |
|  Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp; Common Stock – no par value; 1,500,000 shares authorized, 782,670 shares issued and outstanding as of December 31, 2025 and 2024 |  |  |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1516 | 65 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 55119 | 54031 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income (loss) | 280 | (116) |
|  Total Anania & Associates stockholders' equity | 56915 | 53980 |
| &nbsp;&nbsp;&nbsp; Noncontrolling interests in consolidated subsidiaries | 3542 | 7613 |
|  Total stockholders' equity | 60457 | 61593 |
|  Total liabilities and stockholders' equity | $175646 | $174480 |

---

*The accompanying notes are integral to the consolidated financial statements*.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)<br> CONSOLIDATED STATEMENTS OF OPERATIONS<br> (in thousands)

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  Revenue | $201636 | $190440 |
|  Cost of goods sold | 160617 | 150161 |
|  Gross profit | 41019 | 40279 |
|  Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 18925 | 16433 |
| &nbsp;&nbsp;&nbsp; Research and development | 3357 | 3702 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 6663 | 5931 |
|  Total operating expenses | 28945 | 26066 |
|  Operating income | 12074 | 14213 |
|  Other expense, net: |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense | 2613 | 3114 |
| &nbsp;&nbsp;&nbsp; Interest expense – related party | 1797 | 1722 |
| &nbsp;&nbsp;&nbsp; Other income, net | (231) | (206) |
|  Total other expense, net | 4179 | 4630 |
|  Income from continuing operations before taxes | 7895 | 9583 |
|  Income tax benefit | (45) | (135) |
|  Income from continuing operations | 7940 | 9718 |
|  (Loss) income from discontinued operations | (2398) | 5714 |
|  Net income | 5542 | 15432 |
|  Income from continuing operations attributable to non-controlling interests | 1825 | 2214 |
|  (Loss) income from discontinued operations attributable to noncontrolling interests | (652) | 1429 |
|  Net income attributable to noncontrolling interests | 1173 | 3643 |
|  Net income attributable to Anania & Associates stockholders | $4369 | $11789 |

---

*The accompanying notes are integral to the consolidated financial statements.*

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)<br> CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME<br> (in thousands)

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  Net income | $5542 | $15432 |
|  Other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 405 | (317) |
|  Total other comprehensive income (loss) | 405 | (317) |
|  Comprehensive income | 5947 | 15115 |
|  Comprehensive income attributable to noncontrolling interests in consolidated subsidiaries | 1128 | 3625 |
|  Comprehensive income attributable to Anania & Associates stockholders | $4819 | $11490 |

---

*The accompanying notes are integral to the consolidated financial statements.*

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)<br> CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY<br> (in thousands, except for share data)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Equity Attributable to Anania & Associates** | **Equity Attributable to Anania & Associates** | **Equity Attributable to Anania & Associates** | **Equity Attributable to Anania & Associates** | **Equity Attributable to Anania & Associates** | **Equity Attributable to Anania & Associates** | | |
|  | **<br>Common Stock** | **<br>Common Stock** | **Additional <br>Paid-In<br>Capital** | **Retained<br>Earnings** | **Accumulated <br>Other <br>Comprehensive <br>Income <br>(Loss)** | **Total <br>Anania &<br>Associates <br>Stockholders' <br>Equity** | **Noncontrolling<br>Interests in <br>Consolidated <br>Subsidiaries** | **Total<br>Stockholders' <br>Equity** |
|  | **Shares** | **Amount** | **Additional <br>Paid-In<br>Capital** | **Retained<br>Earnings** | **Accumulated <br>Other <br>Comprehensive <br>Income <br>(Loss)** | **Total <br>Anania &<br>Associates <br>Stockholders' <br>Equity** | **Noncontrolling<br>Interests in <br>Consolidated <br>Subsidiaries** | **Total<br>Stockholders' <br>Equity** |
|  Balance as of December 31, 2023 | 782670 | $— | $65 | $45948 | $183 | $46196 | $11936 | $58132 |
|  Income from continuing operations |  |  |  | 7504 |  | 7504 | 2214 | 9718 |
|  Income from discontinued operations |  |  |  | 4285 |  | 4285 | 1429 | 5714 |
|  Noncontrolling interest investment in consolidated subsidiaries |  |  |  |  |  |  | 450 | 450 |
|  Distributions to noncontrolling interest holders |  |  |  |  |  |  | (8398) | (8398) |
|  Stockholder distributions |  |  |  | (3706) |  | (3706) |  | (3706) |
|  Currency translation adjustment |  |  |  |  | (299) | (299) | (18) | (317) |
|  Balance as of December 31, 2024 | 782670 | $— | $65 | $54031 | $(116) | $53980 | $7613 | $61593 |
|  Income from continuing operations |  |  |  | 6115 |  | 6115 | 1825 | 7940 |
|  Loss from discontinued operations |  |  |  | (1746) |  | (1746) | (652) | (2398) |
|  Noncontrolling interest investment in consolidated subsidiaries |  |  |  |  |  |  | 250 | 250 |
|  Noncontrolling interest investment <br>in consolidated subsidiaries – <br>discontinued operations |  |  |  |  |  |  | 100 | 100 |
|  Distributions to noncontrolling interest holders |  |  |  |  |  |  | (5224) | (5224) |
|  Stockholder distributions |  |  |  | (1724) |  | (1724) |  | (1724) |
|  Stockholder distributions – Poly Labs |  |  |  | (1557) |  | (1557) | (379) | (1936) |
|  Stock-based compensation – related party |  |  | 302 |  |  | 302 |  | 302 |
|  Stock-based compensation – <br>consolidated subsidiary |  |  | 1149 |  |  | 1149 |  | 1149 |
|  Currency translation adjustment |  |  |  |  | 396 | 396 | 9 | 405 |
|  Balance as of December 31, 2025 | 782670 | $— | $1516 | $55119 | $280 | $56915 | $3542 | $60457 |

---

*The accompanying notes are integral to the consolidated financial statements.*

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)<br> CONSOLIDATED STATEMENTS OF CASH FLOWS<br> (in thousands)

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  **Cash flows from operating activities:** |  |  |
|  Net income | $5542 | $15432 |
|  (Loss) income from discontinued operations | (2398) | 5714 |
|  Income from continuing operations | 7940 | 9718 |
|  Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization | 6048 | 5363 |
| &nbsp;&nbsp;&nbsp; Stock-based compensation | 1149 |  |
| &nbsp;&nbsp;&nbsp; Stock-based compensation – related party | 302 |  |
| &nbsp;&nbsp;&nbsp; Noncash operating lease expense | 895 | 885 |
| &nbsp;&nbsp;&nbsp; Noncash interest expense | 28 | 266 |
| &nbsp;&nbsp;&nbsp; Amortization of inventory step-up |  | 848 |
| &nbsp;&nbsp;&nbsp; Provision for excess and obsolete inventories | 422 | 941 |
| &nbsp;&nbsp;&nbsp; Partial forgiveness of note payable | (72) | (72) |
| &nbsp;&nbsp;&nbsp; Change in fair value of interest rate collars | (15) | (239) |
| &nbsp;&nbsp;&nbsp; Unrealized (gain) loss on marketable securities | (106) | 5 |
|  Changes in operating assets and liabilities, net of effect of business acquired: |  |  |
| &nbsp;&nbsp;&nbsp; Accounts receivable | 4253 | (10818) |
| &nbsp;&nbsp;&nbsp; Unbilled revenue | (1272) | 1857 |
| &nbsp;&nbsp;&nbsp; Inventories | (13523) | 1480 |
| &nbsp;&nbsp;&nbsp; Related party receivables | (206) |  |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | (246) | 269 |
| &nbsp;&nbsp;&nbsp; Other assets | (96) | (682) |
| &nbsp;&nbsp;&nbsp; Accounts payable | 1788 | 220 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | 1907 | 5119 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities | (780) | (755) |
| &nbsp;&nbsp;&nbsp; Deferred revenue | 4768 | 8370 |
| &nbsp;&nbsp;&nbsp; Other liabilities | 328 | 19 |
|  Net cash provided by operating activities from continuing operations | 13512 | 22794 |
|  Net cash used in operating activities from discontinued operations | (2829) | (529) |
|  Net cash provided by operating activities | 10683 | 22265 |
|  **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Purchases of property, plant and equipment, net of grant proceeds (see Note 7 *– Government Grants*) | (10378) | (6046) |
| &nbsp;&nbsp;&nbsp; Acquisition, net of cash acquired | (229) |  |
| &nbsp;&nbsp;&nbsp; Purchases of marketable securities |  | (101) |
|  Net cash used in investing activities from continuing operations | (10607) | (6147) |
|  Net cash (used in) provided by investing activities from discontinued <br>operations | (188) | 5559 |
|  Net cash used in investing activities | (10795) | (588) |
|  **Cash flows from financing activities:** |  |  |
|  Net proceeds from (payments of principal on) revolving credit facility | 10292 | (4181) |
|  Payments of principal on long-term debt | (6191) | (3138) |
|  Cash distributions paid to noncontrolling interest holders | (5429) | (7564) |
|  Payments of principal on long-term debt – related party | (4177) | (1500) |

---

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

#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)<br> CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued)<br> (in thousands)

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  Cash distributions paid to stockholders | (1724) | (3706) |
|  Proceeds from long-term debt – related party | 1500 |  |
|  Net proceeds from (payments of principal on) revolving credit facility – related party | 604 | (112) |
|  Cash contributions from noncontrolling interest holders | 250 | 450 |
|  Payments of principal on finance leases | (38) | (33) |
|  Payments of deferred offering costs | (12) |  |
|  Proceeds from long-term debt |  | 3575 |
|  Settlement of deferred consideration |  | (432) |
|  Net cash used in financing activities from continuing operations | (4925) | (16641) |
|  Net cash provided by (used in) financing activities from discontinued <br>operations | 94 | (2511) |
|  Net cash used in financing activities | (4831) | (19152) |
|  Effects of exchange rate changes on cash | 166 | (51) |
|  Net (decrease) increase in cash | $(4777) | $2474 |
|  Cash at beginning of year | 6536 | 4062 |
|  Cash at end of year | $1759 | $6536 |
|  **Reconciliation of cash at beginning of year:** |  |  |
|  Cash at beginning of year – continuing operations | $3613 | $3658 |
|  Cash at beginning of year – discontinued operations | 2923 | 404 |
|  Cash at beginning of year | $6536 | $4062 |
|  **Reconciliation of cash at end of year:** |  |  |
|  Cash at end of year – continuing operations | $1759 | $3613 |
|  Cash at end of year – discontinued operations |  | 2923 |
|  Cash at end of year | $1759 | $6536 |
|  **Supplemental non-cash investing and financing activities:** |  |  |
|  Stockholder distributions – Poly Labs (discontinued operations) | $1936 | $— |
|  Purchases of property, plant and equipment included in accounts payable and accrued expenses | $1275 | $510 |
|  Deferred offering costs included in accounts payable and accrued expenses | $659 | $— |
|  Non-cash consideration issued in connection with business combination | $617 | $— |
|  Distributions declared but not yet paid to noncontrolling interest holders | $— | $205 |
|  **Supplemental disclosure of cash flow information:** |  |  |
|  Cash paid for interest | $3912 | $4453 |
|  Right-of-use assets obtained in exchange for new operating lease liabilities related to lease modifications | $— | $1541 |
|  Right-of-use assets obtained in exchange for new finance lease liabilities | $— | $82 |

---

*The accompanying notes are integral to the consolidated financial statements*.*

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**1. BUSINESS AND ORGANIZATION**

#### Description of the Business
The accompanying consolidated financial statements include the accounts of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.) (collectively the "Company"). The Company operates the following business units:

The Company's Critical Materials Components ("CMC") division, which operates under the name Elmet Technologies, has manufacturing facilities in Lewiston, Maine, Euclid, Ohio and Coldwater, Michigan, was established in 1929 and is a United States owned and operated, fully integrated manufacturer of critical refractory materials specializing in tungsten, molybdenum, and specialized alloys such as heavy tungsten, titanium-zirconium-molybdenum, HCT (potassium doped) molybdenum and lanthanated molybdenum. The CMC division's products are primarily used in high-temperature, high-stress industrial and technological applications such as satellites, missiles, hypersonic weapons, submarines, advanced missile and drone fragmentation, nuclear fission, nuclear fusion development, aircraft, medical imaging, advanced electronics, semiconductor equipment, heat treatment furnaces, vacuum processing, and glass manufacturing industries. The CMC division's offerings also include specialized precision machining and fabrication services of its metals.

The Company's Engineered Microwave Products ("EMP") division, which operates under the name Microwave Techniques, has manufacturing facilities in Gorham, Maine, Nashua, New Hampshire, and Hamburg, Germany. The EMP division provides a mix of highly engineered radio frequency ("RF") systems, components and engineering services. The EMP division's products include a wide range of RF generators, waveguides and coaxial components, ultra-high vacuum components, and industrial microwave systems. The EMP division products are primarily used in missile tracking systems, directed energy systems, nuclear fusion development, aircraft, radar systems, medical imaging, semiconductor equipment, vacuum processing, synthetic diamond manufacturing and high temperature material and food processing industries. The EMP division also provides engineered components to multiple national, collegiate and international physics laboratories in support of high energy research.

Polymer Laboratories LLC ("Poly Labs") was a consolidated subsidiary which operated a manufacturing facility in Lewiston, Maine and manufactured highly engineered and molded polyurethane, self-skinning polyurethane, and small precise-pour polyurethane. Poly Labs was distributed to the Company' stockholders on October 1, 2025 and is classified as discontinued operations within these consolidated financial statements. See Note 5 *— Discontinued Operations* for more details.

On January 2, 2026, the Company effected a reorganization (the "Reorganization") whereby the shareholders of Anania & Associates and the noncontrolling interest holders in consolidated subsidiaries of Anania & Associates contributed their ownership interests in the Anania & Associates and its consolidated subsidiaries to The Elmet Group Co. ("TEG") in exchange for shares of common stock in TEG. The Reorganization was a reorganization of entities under common control as Anania & Associates and TEG were controlled by the Company's President before and after the Reorganization. A reorganization of entities under common control is accounted for in a manner similar to a pooling of interests with the assets and liabilities being carried over at their historical amounts, however the impact of the Reorganization is not being recognized in the consolidated financial statements as of and for the years ended December 31, 2025 and 2024 as it occurred subsequent to December 31, 2025. Following the Reorganization, Anania & Associates and its consolidated subsidiaries are wholly owned by TEG, except for Anania and Associates Investment Company LLC ("AAI"), which as a result of the Reorganization is no longer controlled by TEG or Anania & Associates. See Note 18 *— Subsequent Events* for further information regarding the Reorganization.

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

**ANANIA & ASSOCIATES AND SUBSIDIARIES (a/k/a THE ELMET GROUP CO.)<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

#### Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Any references in these notes to applicable guidance are meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board ("FASB"). The Company's consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest but are not wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements are presented in United States dollars, which represent the Company's reporting currency. Unless otherwise noted, dollars are in thousands.

#### Foreign Currency Translation
The financial statements of the Company's foreign subsidiaries, where the local currency is the functional currency, are translated using exchange rates in effect at the end of the year for assets and liabilities and average exchange rates during the year for results of operations. The resulting foreign currency translation adjustment is included in stockholders' equity as accumulated other comprehensive income (loss).

Foreign currency gains and losses resulting from transactions denominated in foreign currencies are reflected in general and administrative expense in the accompanying consolidated statements of operations. For the years ended December 31, 2025 and 2024, foreign currency gains and losses were immaterial.

#### Accounting Estimates
The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates. Significant items subject to estimates and assumptions include those related to over time revenue recognition, the valuation of stock-based compensation, the valuation of inventory and related reserves, and the assessment of recoverability of goodwill.

Some of these estimates can be subjective and complex and, consequently, actual results may differ from these estimates under different assumptions or conditions. While for any given estimate or assumption made by the Company's management there may be other estimates or assumptions that are reasonable, the Company believes that, given the current facts and circumstances present as of the date of these consolidated financial statements, it is unlikely that applying any such other reasonable estimate or assumption would materially impact the consolidated financial statements herein.

#### Cash
Cash represents cash held in banks, which are stated at cost, which approximate fair value. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash with high credit-quality institutions to minimize credit risk exposure. As of December 31, 2025 and 2024, included within cash was approximately $0.5 million of cash held at a bank in Germany. The Company does not have any cash equivalents as of December 31, 2025 and 2024.

#### Marketable Securities
Marketable securities are comprised of investments in equity securities. The Company records its marketable securities at fair value based on the quoted market prices of the securities. Gains and losses resulting from the change in fair value of marketable securities are included in other income, net in the consolidated statements of operations.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

#### Accounts Receivable, net
Accounts receivable, net consists of amounts owed by commercial companies and government agencies. Accounts receivable is stated net of the allowance for credit losses.

Accounts receivable is carried at historical cost, less any write-offs and the allowance for credit losses. The Company records an allowance for credit losses for those accounts receivable balances considered to be uncollectible based upon management's assessment of collectability, which considers historical write-off experience and any specific risks identified in customer collection matters. Bad debts are written off against the allowance. Additions to the allowance for credit losses are charged to bad debt expense within general and administrative expense in the accompanying consolidated statements of operations.

The following table summarizes the activity related to the Company's allowance for credit losses during the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Year ended <br>December 31, <br>2025** | **Year ended <br>December 31, <br>2024** |
|  Beginning balance | $242 | $250 |
|  Write-offs of receivables |  | (41) |
|  Increase in allowance for credit losses | 21 | 33 |
|  Ending balance | $263 | $242 |

---

The Company does not typically require collateral from its customers; however, certain customer contracts require milestone payments or prepayments. Although concentrations of credit risk exist with respect to certain customers, management believes this risk is mitigated through ongoing collection activity and credit evaluations performed on new and existing customers. Accounts receivable generally have contractual terms of 30 to 90 days and do not bear interest.

As of December 31, 2025, one customer accounted for more than 10% of the Company's accounts receivable, net balance, representing approximately 15% of the Company's total balance. As of December 31, 2024, two customers each accounted for more than 10% of the Company's accounts receivable, net balance, representing approximately 16% and 10%, respectively, of the Company's total accounts receivable, net balance. For the year ended December 31, 2025, there were no customers that accounted for more than 10% of the Company's total revenue. For the year ended December 31, 2024, one customer accounted for 11% of the Company's total revenue.

#### Concentrations of Credit Risk
Credit risk is the risk of loss from amounts owed by customers and financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash, accounts receivable and unbilled revenue.

The Company performs ongoing credit evaluations of its customers and maintains an allowance for credit losses. Unbilled revenue includes amounts due from customers for performance obligations that have been satisfied but for which amounts have not been billed. The Company has historically not experienced any significant losses related to the collection of its accounts receivable or unbilled revenue.

#### Concentrations of Significant Vendors
The Company believes that potential exposure related to concentrations of risk with significant vendors is mitigated, as management considers alternative sources of supply to be readily available. For the year ended December 31, 2025, one vendor accounted for more than 10% of the Company's total expenditures, and accounts payable to this vendor represented approximately 22% of the Company's total accounts payable as of

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

December 31, 2025. For the year ended December 31, 2024, two vendors each accounted for more than 10% of the Company's total expenditures, and accounts payable to these vendors represented 18% and 14%, respectively, of the Company's total accounts payable as of December 31, 2024.

#### Inventories, net
Inventories include material, direct labor and related manufacturing overhead, and are stated at the lower of cost, determined on a first-in, first-out basis and average cost, or net realizable value determined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company records inventory when it takes delivery and title to the product according to the terms of each supply contract.

The Company adjusts inventory carrying value for the estimated difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and selling price. The Company also analyzes its inventory levels on each reporting date for excess and obsolete inventory. The Company's analysis requires judgment and is based on factors including, but not limited to, recent historical activity, anticipated or forecasted demand for its products, competitiveness of product offerings, and market conditions. In doing so, the Company compares on-hand balances to anticipated usage using recent historical activity as well as judgements and estimates about anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory adjustments may be required, subject to judgement and estimation. At the point of a loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established basis.

As of December 31, 2025 and 2024, inventory, net of reserves, consisted of the following:

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| | | |
|:---|:---|:---|
|  | **December 31, <br>2025** | **December 31, <br>2024** |
|  Finished goods | $30946 | $30577 |
|  Work-in-progress | 27919 | 19941 |
|  Raw materials | 10832 | 5729 |
|  Inventory, net | $69697 | $56247 |

---

As of December 31, 2025 and 2024, the Company had inventory reserves of approximately $6.2 million and $5.8 million, respectively, based on the evaluation of its ending inventory on hand for excess quantities and obsolescence.

#### Property, Plant and Equipment, net
Property, plant and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Repairs and maintenance costs are expensed as incurred, whereas major improvements are capitalized as additions to property and equipment.

The Company accounts for depreciation and amortization using the straight-line method to allocate the cost of property, plant and equipment over their estimated useful lives as follows:

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| | |
|:---|:---|
|  | **Estimated Useful Life (in Years)** |
|  Buildings | 25 |
|  Building improvements | 3 – 12 |
|  Machinery and equipment | 3 – 7 |
|  Furniture, fixtures and vehicles | 3 – 5 |
|  Leasehold improvements | Shorter of the estimated useful life or the remaining lease term |

---

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

The Company reviews the estimated useful lives of its property, plant and equipment at the end of each reporting period, or whenever events or changes in circumstances indicate a review is warranted.

#### Government Grants
The Company has entered into multiple subcontract agreements with multiple contract administrators engaged by the U.S. Government, to perform prototype development, manufacturing process enhancements, and capital equipment build-outs in support of Department of War programs. Under the terms of these agreements, the Company is reimbursed for qualifying costs incurred, including equipment, labor, materials, and manufacturing expenses, plus a nominal contractual profit margin. The Company accounts for these agreements as government grants.

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions of the grant and the Company will receive the grant. Generally, government grants fall into two categories: grants related to assets and grants related to income.

Grants related to assets are government grants for the purchase of long-lived assets. The Company accounts for grants related to assets by reducing the carrying amount of the asset by the amount of the grant. The Company recognizes the grant in profit or loss over the life of the depreciable asset as a reduction to depreciation expense.

Grants related to income are any grants that are not considered grants related to assets. Grants related to income are recognized in profit or loss within revenue upon meeting the recognition criteria, as the Company's operations continuously support such grant programs.

#### Business Combinations
The purchase price for each acquisition is allocated to the assets acquired and liabilities assumed primarily based on their estimated fair values at the date of acquisition. The excess of (i) the total consideration transferred over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the consideration transferred is less than the fair value of the net assets of the acquiree, the difference is recognized directly in the consolidated statements of operations as a bargain purchase gain. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed. The consolidated financial statements include the results of operations of an acquired business after the completion of the acquisition.

#### Goodwill
Goodwill represents the excess of the purchase price of an acquired entity over the amounts assigned to assets and liabilities assumed, in a business combination.

Goodwill is not amortized and must be tested for impairment at least annually, or more frequently if events or circumstances indicate that it may be impaired. During the year ended December 31, 2025, the Company voluntarily changed the goodwill impairment assessment date from December 31<sup>st</sup> to October 1<sup>st</sup> to better align with the Company's internal forecasting and budgeting cycle. Goodwill is tested for impairment at the reporting unit level. The Company performs a qualitative assessment to determine whether further impairment testing is necessary. Factors considered include macroeconomic, industry and market conditions, cost factors that would have a negative effect on earnings and cash flows, legal and regulatory environment, historical financial performance and significant changes in the Company's operations or brand. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. In the quantitative assessment for goodwill, an assessment is performed to determine the fair value of the reporting unit. If the carrying value of the reporting unit exceeds the estimated fair value, an impairment charge is recognized in an amount equal to that excess.

As quoted market prices are not available for the Company's reporting unit, the fair value of the reporting unit is determined using a discounted cash flow model (income approach). This method uses various assumptions that are specific to a reporting unit in order to determine the fair value. While the Company believes that estimates of future cash flows are reasonable, changes in assumptions could significantly affect valuations and result in impairments in

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

the future. The most significant assumption involved in the Company's determination of fair value is the cash flow projections of the reporting unit. If the estimates of future cash flows for the reporting unit may be insufficient to support the carrying value of the reporting unit, the Company will reassess its conclusions related to fair value and the recoverability of goodwill.

As of October 1, 2025 and December 31, 2024, the Company performed a quantitative impairment assessment and no impairment was recorded during either period.

#### Intangible Assets
Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date. The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors considered when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized.

Intangible assets consist primarily of patents, customer relationships, and trademarks, all of which are definite lived assets, see Note 9 *— Goodwill and Intangible Assets* for further information surrounding the useful lives of identified intangible assets.

#### Impairment of Long-Lived Assets
Long-lived assets consist primarily of property, plant and equipment, right-of-use assets and definite-lived intangible assets. The Company reviews the carrying amount of a long-lived asset or asset group when there is an indication of impairment. Impairment indicators include a significant decrease in the market price, a significant adverse change in the manner in which an asset or asset group is being used, a significant adverse change in legal factors or in the business climate, an accumulation of costs in excess of the amount originally expected for the acquisition or development of an asset or asset group, a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of an asset or asset group, and/or a current expectation that, more likely than not, an asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.

If indicators are present, the Company will perform a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset or asset group in question to the carrying amounts. If the undiscounted cash flows used in the test for recoverability are less than the asset or asset group's carrying amount, the Company will determine the fair value of the asset or asset group and recognize an impairment loss if the carrying amount exceeds its fair value. No impairment charges related to long-lived assets were recorded for the years ended December 31, 2025 and 2024.

#### Debt Issuance Costs
The Company's debt issuance costs include expenditures necessary to obtain debt financing. Debt issuance costs include legal and other loan costs incurred by the Company for its financing agreements. Debt issuance costs related to the Company's debt are recorded as an offset to the related liability and amortized over the term of the applicable financing instruments over a straight-line basis, which approximates the effective interest method, over the estimated term of the debt (i.e., initial stated term plus the maturity extensions as all loans are expected to be extended and all contingencies for extension are expected to be met). As of December 31, 2025 and 2024, the unamortized debt issuance costs were approximately $0.1 million, which were included within long-term debt, net of current portion on the Company's consolidated balance sheets.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

#### Deferred Offering Costs
Deferred offering costs represent legal, accounting and other costs directly attributable to the planned initial public offering. Deferred offering costs are included in prepaid expenses and other current assets on the Company's consolidated balance sheets and will be deferred until the completion of the initial public offering, at which time they will be reclassified to additional paid-in capital as a reduction of the initial public offering proceeds. If the initial public offering is terminated or significantly delayed, the Company will expense all deferred offering costs to general and administrative expense. As of December 31, 2025, approximately $0.9 million of deferred offering costs were capitalized. The Company did not capitalize any deferred offering costs prior to the year ended December 31, 2025.

#### Leases
The Company determines if an arrangement is or contains a lease at inception by assessing whether the arrangement contains an identified asset and whether it has the right to control the identified asset for a period of time in exchange for consideration. The Company has control of the asset if it has the right to direct the use of the asset and obtains substantially all of the economic benefits from the use of the asset throughout the period of use. As a practical expedient, the Company does not recognize a right-of-use ("ROU") asset or lease obligation for leases with a lease term of 12 months or less.

ROU assets represent the Company's right to use the underlying leased assets over the lease term, while lease liabilities represent the Company's obligation to make lease payments under the lease arrangements. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments. Corresponding ROU assets are initially measured at the amount of the lease liability, adjusted for any lease payments made at or before lease commencement, less any lease incentives received and plus any initial direct costs incurred.

The Company classifies a lease as a finance lease when it meets any of the following criteria at the lease commencement date: (1) the lease transfers ownership of the underlying asset to the Company by the end of the lease term; (2) the lease grants the Company an option to purchase the underlying asset that the Company is reasonably certain to exercise; (3) the lease term is for the major part of the remaining economic life of the underlying asset (the Company considers a major part to be 75% or more of the remaining economic life of the underlying asset); (4) the present value of the sum of the lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset (the Company considers substantially all the fair value to be 90% or more of the fair value of the underlying asset amount); or (5) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria above are met, the Company classifies the lease as an operating lease.

As the implicit rate in the Company's lease arrangements is generally not readily determinable, the Company uses its incremental borrowing rate at the lease commencement date to calculate the present value of lease payments. For any operating or finance leases, where the lease's implicit rates were not readily available and the risk-free rate was not elected, the Company determined the incremental borrowing rate, which is based on the United States treasury rate that aligns with the applicable lease term plus a credit spread associated with the Company's credit rating.

The lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise any such options. Lease contracts may include lease components and non-lease components. The Company has elected the practical expedient to combine lease and non-lease components. Lease payments can also include fixed payments, variable payments that depend on an index or rate known at the commencement date, and extension option payments or purchase options which the Company is reasonably certain to exercise.

Operating lease costs are recognized on a straight-line basis over the lease term as general and administrative expense within consolidated statements of operations. Finance lease ROU assets are amortized on a straight-line basis over the shorter of the lease term or the estimated useful life of the underlying asset and are included in general and

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

administrative expense within the consolidated statements of operations, with the exception of interest expense related to finance leases, which is recognized using the effective interest method over the lease term, and is included in interest expense within the consolidated statements of operations.

Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current portion, and operating lease liabilities, net of current portion in the Company's consolidated balance sheets. Finance leases are not material and are included in other assets, accrued expense and other current liabilities, and other liabilities in the Company's consolidated balance sheets.

Sale-and-leaseback transactions occur when the Company sells assets to a third-party and subsequently leases them back. The resulting leases that qualify for sale-and-leaseback accounting are evaluated and accounted for as an operating lease. A transaction that does not qualify for sale-and-leaseback accounting as a result of finance lease classification or the failure to meet certain revenue recognition criteria is accounted for as a financing transaction.

#### Revenue Recognition
The Company typically generates revenue from contracts with customers related to manufactured products, as described in Note 1 *— Business and Organization*. Revenue is recognized when control of the goods and services provided is transferred to the Company's customers and in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. The Company applies the following five-step framework:

<u><u>Step 1: Identify the contract(s) with a customer:</u></u>

A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party's rights regarding the products to be transferred and identifies the payment terms related to those products, (ii) the contract has commercial substance and (iii) the Company determines that collection of substantially all consideration for products that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company's contracts are typically in the form of a purchase order and/or a statement of work. For certain large customers, the Company may also enter into master service agreements that define general terms but are not customer commitments to purchase until coupled with a purchase order and/or statement of work. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience or published credit and financial information pertaining to the customer.

<u><u>Step 2: Identify the performance obligations in the contract:</u></u>

Performance obligations promised in a contract are identified based on the products and services that will be transferred. A product or service is distinct if both a) the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and b) is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised products or services, the Company must apply judgment to determine whether the products or services meet the criteria to be distinct.

If these criteria are not met the promised products or services are accounted for as a combined performance obligation. Substantially all of the Company's revenue is derived from the sale of manufactured products. The Company's revenue contracts typically include one performance obligation: the delivery of a manufactured product.

The Company provides an assurance-based warranty on certain products that is not accounted for as a separate performance obligation. Warranty expense was not material for the years ended December 31, 2025 and 2024.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

<u><u>Step 3: Determine the transaction price:</u></u>

The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products to the customer. The Company's contracts are fixed-fee arrangements, agreed to at contract inception. The Company's contracts may include variable consideration related to early pay discounts, sales returns or certain development-related contracts, which result in pricing based on actual hours incurred. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Variable consideration in the Company's revenue contracts was not material during the years ended December 31, 2025 and 2024.

In most instances, payments are due net 30 to 90 days from the customer's receipt of the invoice. This payment schedule aligns with standard commercial payment terms and does not significantly advance or delay payment in a way that would provide either party a significant financing benefit. Payments are neither explicitly nor implicitly structured to function as financing for the goods or services supplied under the contract. Based on these factors, there is no significant financing component in the Company's contracts.

The Company has elected to record taxes collected from customers on a net basis and as a result sales taxes are excluded from the transaction price and therefore are not included in revenue or costs of revenue.

The Company has elected to account for shipping and handling activities as a fulfillment cost and includes any fees received for shipping and handling as part of the transaction price and recognizes revenue when the related performance obligation is satisfied.

<u><u>Step 4: Allocate the transaction price to the performance obligations in the contract:</u></u>

The Company allocates the transaction price to each performance obligation based on its relative standalone selling price ("SSP"), which represents the price the Company would charge to sell the promised good or service separately to a customer. The Company's contracts typically include one performance obligation, and the allocation of transaction price is not necessary.

<u><u>Step 5: Recognize revenue when (or as) the Company satisfies a performance obligation:</u></u>

The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised product or service to a customer.

Revenue is recognized over time as work progresses when the Company is entitled to the reimbursement of costs plus a reasonable profit for work performed for which the Company has no alternative use. For these performance obligations that are satisfied over time, the Company generally recognizes revenue using an input method with revenue amounts being recognized proportionately as costs are incurred relative to the total expected costs to satisfy the performance obligation. The Company believes that costs incurred as a portion of total estimated costs is an appropriate measure of progress towards satisfaction of the performance obligation since this measure reasonably depicts the progress of the work effort.

Revenue for performance obligations that are not recognized over time are recognized at the point in time when control transfers to the customer. For performance obligations that are satisfied at a point in time, the Company evaluates the point in time when the customer can direct the use of, and obtain the benefits from, the products and services.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

#### Contract Assets and Contract Liabilities
The Company's contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations. The Company's accounts receivable balance is made up entirely of customer contract-related balances. Contract assets and contract liabilities are included in unbilled revenue and deferred revenue, respectively, on the consolidated balance sheets.

#### Contract Costs
The Company is required to capitalize certain costs to obtain customer contracts and costs to fulfill customer contracts. These costs consist primarily of sales commissions. Such costs are required to be amortized to expense on a systemic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. As a practical expedient, the Company recognizes any incremental costs to obtain a contract as an expense when incurred if the amortization period of the asset is one year or less. During the years ended December 31, 2025 and 2024, the Company did not capitalize any contract costs.

#### Shipping and Handling Costs
Amounts billed to customers related to shipping and handling are classified as revenue, and the Company's shipping and handling costs are included in cost of goods sold within the consolidated statements of operations.

#### Cost of Goods Sold
Cost of goods sold includes the cost of materials, direct labor, and manufacturing overhead costs used in the manufacture of products sold to customers. Cost of goods sold also consists of personnel, facility costs associated with operating our laboratory testing on behalf of the customers, costs related to maintenance, servicing equipment, training customers at customer sites, freight, other direct costs, and overhead.

#### Research and Development Costs
Research and development costs are expensed as incurred. Research and development expenses consist of costs incurred in performing research and development activities, including activities associated with performing services under research revenue arrangements, costs associated with the manufacture of developing products and include salaries and benefits, research related facility and overhead costs, laboratory supplies, and contract services.

#### Advertising Expense
The costs of advertising, marketing, and media are expensed as incurred. For the years ended December 31, 2025 and 2024, the Company expensed approximately $0.5 million and $0.3 million, respectively, which were included in sales and marketing expense in the consolidated statements of operations.

#### Derivative Instruments
The Company uses derivative instruments to manage its interest rate risk related to variable rate debt facilities. The Company's derivative instruments are recorded at fair value. The accounting for changes in fair value of derivatives depends upon whether or not the Company has elected to designate the derivative in a hedging relationship, and the derivative qualifies for hedge accounting. Under hedge accounting, changes in fair value for derivatives are recorded through other comprehensive income. When hedge accounting is not elected, changes in fair value for derivatives are recorded through the consolidated statements of operations.

The Company has two interest rate collars that have not been designated for hedge accounting. The interest rate collars have an original notional value of principal of approximately $10.0 million and $7.4 million as of December 31, 2025 and 2024. The interest rate collars mature on October 30, 2026 and August 1, 2028, respectively. The collective

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

fair value of the Company's interest rate collars as of December 31, 2025 and 2024 was approximately $0.1 million, which were included in other liabilities on the consolidated balance sheets. Changes in the fair value of derivatives totaled less than $0.1 million and approximately $0.2 million for the years ended December 31, 2025 and 2024, respectively, and have been recorded in other income, net in the consolidated statements of operations.

#### Fair Value Measurement
Financial instruments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy:

---

| | |
|:---|:---|
|  Level 1 — | quoted prices are available in active markets for identical financial instruments as of the measurement date. The Company does not adjust the quoted price for these financial instruments. |
|  Level 2 — | quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. |
|  Level 3 — | pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these financial instruments existed. |

---

Under normal market conditions, the fair value of a financial instrument is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Additionally, there is a hierarchical framework that prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is impacted by a number of factors, including the type of financial instrument and the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

For certain financial instruments, including accounts receivable, unbilled receivables, accounts payable, accrued expenses, deferred consideration, deferred revenue, deferred government grants, current portion of long-term debt, and other current liabilities, the carrying amounts approximate their fair values as of December 31, 2025 and 2024. These assessments reflect the short-term nature of the instruments and market conditions as of the reporting date.

The Company's equity marketable securities are classified as a Level 1 fair value measurement, as its valuation is based on quoted prices in active markets for identical instruments.

The fair value of the Company's interest rate collars is determined by using widely accepted valuation techniques based on their maturity and observable market-based inputs, including interest rate curves. This measurement is considered a Level 2 measurement.

Contingent consideration related to acquisitions is recorded at fair value as a liability on the acquisition date and is remeasured at each reporting date, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions management believes would be made by a market participant. Management assesses these estimates on an ongoing basis as additional data impacting the assumptions becomes available. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within other income, net in the consolidated statements of operations.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

Fair value of the Company's long-term debt is based on quoted market prices or on rates available for debt with similar terms and maturities. Based upon interest rates currently available to the Company, the carrying value of the Company's long-term debt approximates fair value.

Certain assets and liabilities are recognized or disclosed at fair value on a non-recurring basis, such as property, plant, and equipment, ROU assets, goodwill, and intangible assets. These assets are required to be assessed for impairment when events or circumstances indicated that the carrying value may not be recoverable, and at least annually for goodwill and identified-lived intangible assets. If an impairment charge is required, the asset is adjusted to fair value using Level 3 inputs.

The following table summarizes the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured/disclosed at fair value on a recurring basis as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Financial Statement <br>Classification** | **Level 1** | **Level 2** | **Level 3** | **Total Fair <br>Value** |
|  **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Equity securities | Marketable securities | $202 | $— | $— | $202 |
|  Total Assets |  | $202 | $— | $— | $202 |
|  **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest rate collar derivatives | Other liabilities | $— | $66 | $— | $66 |
| &nbsp;&nbsp;&nbsp; Contingent consideration | Other liabilities |  |  | 288 | 288 |
|  Total Liabilities |  | $— | $66 | $288 | $354 |

---

The following table summarizes the classification between the three levels of the fair value hierarchy of the Company's financial instruments measured/disclosed at fair value on a recurring basis as of December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Financial Statement <br>Classification** | **Level 1** | **Level 2** | **Level 3** | **Total Fair <br>Value** |
|  **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Equity securities | Marketable securities | $96 | $— | $— | $96 |
|  Total Assets |  | $96 | $— | $— | $96 |
|  **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest rate collar derivatives | Other liabilities | $— | $51 | $— | $51 |
|  Total Liabilities |  | $— | $51 | $— | $51 |

---

There were no changes in valuation techniques, nor were there any transfers among the fair value hierarchy levels during the years ended December 31, 2025 and 2024.

#### Noncontrolling Interests in Consolidated Subsidiaries
Noncontrolling interests represent the portion of subsidiaries' net assets the Company controls but are not wholly-owned. The Company recognizes each noncontrolling holder's respective share of the net assets at the date of formation or acquisition. Noncontrolling interests are subsequently adjusted for the noncontrolling holder's share of additional contributions, distributions and their share of the net earnings or losses of each respective consolidated entity. The Company allocates net income or loss to noncontrolling interests based on the weighted average ownership interest during the period. The net income or loss that is not attributable to the Company is reflected in net income attributable to noncontrolling interests in the consolidated statements of operations.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

#### Discontinued Operations
The Company categorizes the assets and liabilities of a disposal group, or business component, as discontinued operations once management commits to a plan to sell, the business segment is available for immediate sale, management has initiated a plan to sell at a price that is reasonable in relation to its fair value, management anticipates the sale will occur within one year, and it is unlikely that significant changes will be made to the plan to sell. For disposals other than by sale, such as abandonment or distribution, the results of operations of a business would not be recorded as a discontinued operation until the period in which the business is actually abandoned or distributed. The Company classifies such disposal group or business component as a discontinued operations, if the divested disposal group or business represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. In addition, the disposal group or business component must be comprised of operations and cash flows that are clearly distinguished from the rest of the entity. The results of discontinued operations are aggregated and presented separately in the consolidated balance sheets, consolidated statements of operations, and consolidated statements of cash flows. Unless otherwise noted, the disclosures in these footnotes relate solely to continuing operations. Information regarding discontinued operations, including results of operations, assets, and liabilities held for sale, is presented separately in Note 5 *— Discontinued Operations*.

#### Income Taxes
The Company is an S-corporation and the Company's income and losses are passed through to its stockholders and reported on their individual tax returns. The Company is no longer subject to U.S. federal or state and local income tax examinations by tax authorities for the years before the year ended December 31, 2023.

The Company is subject to foreign income taxes in jurisdictions in which it conducts business. The Company files foreign income tax returns and pays applicable income taxes in Germany as a result of the operations of its consolidated foreign subsidiary. For the years ended December 31, 2025 and 2024, the Company's foreign subsidiary recognized an income tax benefit of less than $0.1 million and approximately $0.1 million, respectively, as a result of refunds received, which exceeded current period tax liabilities. Additionally, no expense related to interest and penalties was recorded for the years ended December 31, 2025 and 2024.

The Company does not believe it is reasonably possible that its unrecognized tax benefits would materially change in the next twelve months. As a result, no provision for income taxes is recorded in the accompanying consolidated financial statements.

The Company files income tax returns in the U.S. federal, state, foreign, and local jurisdictions. As of December 31, 2025 and 2024, there were no current examinations by tax authorities for federal, foreign, or state income taxes.

The Company's policy has been to make distributions to its stockholders sufficient to cover their taxes related to Company taxable income. Stockholder distributions for taxes totaled approximately $1.7 million and $3.7 million, during the years ended December 31, 2025 and 2024, respectively, which were included within stockholder distributions in the consolidated statements of changes of stockholders' equity.

#### Stock-based Compensation
*Related Party Stock-based Awards*

Certain employees have received restricted stock as compensation for services rendered. The restricted stock was issued from TEG, a related party. The Company recognizes the stock-based compensation expense related to these stock-based awards within the consolidated financial statements based on their respective grant date fair values. For stock-based awards that include a service-based vesting condition, the Company recognizes the expense ratably over the requisite service period, which ranges from one to three years, subject to acceleration upon the occurrence of a

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (cont.)

qualifying liquidity event. For stock-based awards that include a performance-based vesting condition, the Company recognizes the expense when it is probable that the performance-based vesting condition will be satisfied and the award has satisfied other vesting conditions, if any.

*Consolidated Subsidiary Stock-based Awards*

The Company issues certain stock-based awards to employees in the form of restricted stock, settled in the equity of a consolidated subsidiary, to employees as compensation. The Company recognizes the stock-based compensation expense related to these stock-based awards within the consolidated financial statements based on their respective grant date fair values. For stock-based awards that include a service-based vesting condition, the Company recognizes the expense ratably over the requisite service period, typically eighteen months from the grant date. For stock-based awards that include a performance-based vesting condition, the Company recognizes the expense when it is probable that the performance-based condition will be satisfied and the award has satisfied other vesting conditions, if any.

*Valuation of Stock-based Awards*

Because there has been no public market for the equity of the related party and the equity of the consolidated subsidiary and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, *Valuation of Privately*-Held-Company *Equity Securities Issued as Compensation*, the Company has determined the fair value of the stock-based awards at the time of grant by considering a number of objective and subjective factors, including valuations performed by an independent third-party valuation specialist, comparable companies, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook.

#### Commitments and Contingencies
The Company is subject to various commitments and contingencies arising in the normal course of business, including but not limited to legal and contractual matters. Liabilities are recorded when it is probable that a loss has been incurred and the amount can be reasonably estimated. Matters that do not meet these criteria are disclosed if the likelihood of loss is reasonably possible and the potential impact could be material. The Company also discloses significant contractual obligations, including leases and purchase commitments, with information regarding their nature and timing of future cash flows. Management continuously evaluates these matters and updates the financial statements as appropriate.

#### Risks and Uncertainties
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates and would impact future results of operations and cash flows.

The Company's business, industry and the economy are influenced by a number of general macroeconomic factors, including, but not limited to, inflationary pressures impacting the Company's supply chain, reduced demand for the Company's products related to unfavorable macroeconomic conditions triggered by developments beyond the Company's control, including geopolitical dynamics and other events that trigger economic volatility. The Company actively monitors the impacts of the evolving macroeconomic and geopolitical landscape, including rapidly evolving conflicts, changes in tariff rates and global trade policies, on all aspects of its business. Sustained macroeconomic challenges could adversely impact the Company's operations.

Several of the Company's government contracts are being funded incrementally, and as such, are subject to the future authorization, appropriation, and availability of government funding. The Company has a history of successfully obtaining financing under incrementally funded contracts with the United States government and it expects to continue to obtain additional funding in the year ending December 31, 2026 and beyond as incremental funding is authorized and appropriated by the government.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**3. RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS**

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. The Company is considered to be an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the "Jobs Act"). The Jobs Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to avail itself of this extended transition period and, as a result, the Company will not be required to adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

#### Recently Adopted Accounting Pronouncements
In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): *Improvements to Reportable Segment Disclosures* ("ASU 2023-07"). The ASU expands public entities' segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to a company's chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment's profit or loss and assets. This pronouncement is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The guidance is required to be applied on a retrospective basis, with all such required disclosures to be made with regard to all fiscal years presented in the financial statements. Early adoption is permitted. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The Company adopted this guidance effective for its fiscal year ended December 31, 2024. See Note 17 — *Segments* for these disclosures.

In December 2023, the FASB issued ASU 2023-09, *Improvements to Income Tax Disclosures*. This new guidance requires additional disclosure with respect to specific categories in the rate reconciliation as well as require additional information for reconciling items that meet a certain quantitative threshold. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted this standard for the year ended December 31, 2025. There was no impact of adopting this standard on the Company's consolidated financial statements.

#### Recently Issued Accounting Pronouncements
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* ("ASU 2024-03"), which requires disaggregated disclosure of income statement expenses. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, *Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities* ("ASU 2025-10"), which provides guidance on the recognition, measurement, presentation, and disclosure of government grants received by for-profit entities. The ASU defines government grants as transfers of monetary or nonmonetary assets from a government, excluding exchange transactions, and clarifies scope exclusions such as tax credits, below-market loans, and nonfinancial asset transactions. Under the guidance, grants related to asset acquisition are generally recognized as a reduction of the asset's cost, while grants related to income are recognized in earnings once conditions are met, with appropriate classification in the statement of cash flows. Entities are required to disclose the nature of grants, significant terms and conditions, accounting policies adopted, and amounts recognized in the financial statements. ASU 2025-10 is effective for annual periods beginning after December 15, 2028, including interim periods, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**4. ACQUISITIONS**

*Legacy Acquisitions*

Prior to the year ended December 31, 2025, goodwill and intangible assets on the Company's consolidated balance sheets primarily relate to the historical acquisitions of Valvo Bauelemente GmbH, H.C. Starck Solutions Euclid, LLC and H.C. Starck Solutions Coldwater, LLC, completed during the year ended December 31, 2023, Elmet Technologies, completed during the year ended December 31, 2021, and Poly Labs and Ferrite Microwave Technologies, completed during the year ended December 31, 2020.

In connection with historical business acquisitions, certain inventory was recorded at its fair value, resulting in an aggregate inventory step-up of approximately $3.6 million, which was reflected in inventory, net as of the various acquisition dates. The inventory step-up is recognized through cost of goods sold as the inventory is sold, based on average inventory turnover. During the year ended December 31, 2025 and 2024, the Company recognized approximately $0.0 million and $0.8 million of amortization of the inventory step-up included within cost of goods for continuing operations within the consolidated statements of operations.

*Symphony Acquisition*

On November 14, 2025, the Company acquired 100% of the voting interests in Symphony Microwave Technologies, LLC ("Symphony"), a United States based company focused on the design and production of high-power microwave and RF components and subsystems, in exchange for total consideration of approximately $0.8 million. Total consideration consisted of (i) cash of approximately $0.2 million, (ii) the fair value of 9,790 membership units in a consolidated subsidiary of approximately $0.1 million, (iii) the fair value of contingent consideration of approximately $0.3 million and (iv) the fair value of deferred consideration of approximately $0.2 million.

The acquisition has been accounted for as a business combination. The Company allocated the purchase price to the assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. The excess of the purchase price paid by the Company over the estimated fair value of net assets acquired has been recorded as goodwill.

The following table summarizes the allocation of the purchase price based on the estimated fair values of the assets acquired and liabilities assumed in connection with the acquisition of Symphony:

---

| | |
|:---|:---|
|  | **Amount** |
|  Cash | $1 |
|  Accounts receivable | 358 |
|  Inventories | 221 |
|  Customer relationships | 335 |
|  Accounts payable and accrued expenses | (481) |
|  Current portion of long-term debt | (65) |
|  Long-term debt, net of current portion | (26) |
|  Total identifiable net assets acquired | 343 |
|  Goodwill | 504 |
|  **Total net assets acquired** | $847 |

---

Transaction-related costs incurred related to the acquisition were immaterial and were expensed as incurred in general and administrative within the consolidated statement of operations for the year ended December 31, 2025.

The fair value of contingent consideration included in consideration transferred was $0.3 million, which is related to an earnout arrangement with the sellers of Symphony, as estimated by a third-party valuation specialist. The contingent consideration is payable in quarterly installments through the third anniversary of the acquisition date

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**4. ACQUISITIONS** (cont.)

based on the post-acquisition sales to a customer of Symphony and does not include any continuing employment conditions. There is no cap on the amount payable under the earnout. The fair value of the instrument was based on the discounted cash flows of expected future payments to this customer based on forecasted revenue during the earnout period. During the year ended December 31, 2025, the change in fair value of contingent consideration was not material.

The deferred consideration of $0.2 million accrues interest monthly at an annual rate of 3.75% and is payable to the sellers within eighteen months from the acquisition date, which was included with other liabilities within the consolidated balance sheet as of December 31, 2025. Due to the short maturity of the deferred consideration, carrying value approximates fair value. During the year ended December 31, 2025, interest expense related to deferred consideration was not material.

The Company recognized customer-related intangible assets of approximately $0.3 million, which primarily consisted of contractual and non-contractual relationships with customers. The valuation method used to determine the estimated fair value of the intangible asset was based on the multi-period excess earnings approach. The customer relationship was assigned a useful life of ten years based on historical and forecasted customer attrition.

Goodwill resulting from the acquisition is attributable to the value of the acquired workforce and expected synergies. Goodwill resulting from the acquisition was assigned to the Company's EMP segment. The goodwill recognized is not deductible for tax purposes.

**5. DISCONTINUED OPERATIONS**

On October 1, 2025, the Company's ownership interest in Poly Labs was distributed pro rata to the individual stockholders of the Company to focus financial and managerial efforts on the CMC and EMP divisions. Concurrently, the Company's interest in a note payable of approximately $0.8 million, owed by Poly Labs to the Company, was distributed pro rata to the individual stockholders. The combined effect of these distributions had a net equity impact of $1.9 million, included within stockholder distributions — Poly Labs in the consolidated statements of changes of stockholders' equity and within stockholder distributions — Poly Labs in the consolidated statement of cash flows for the year ended December 31, 2025.

The Company concluded that Poly Labs met the criteria to be classified as discontinued operations as of December 31, 2025, as the divestiture represented a strategic shift, had a major impact on the Company's consolidated results and the Company disposed of Poly Labs during the period. The results of Poly Labs have been classified as discontinued operations in the consolidated financial statements, and the results for all periods presented have been recast to exclude Poly Labs from continuing operations.

Activity related to Poly Labs for the years ended December 31, 2025 and 2024, reflected in the consolidated financial statements, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended <br>December 31, <br>2025** | **Year Ended <br>December 31, <br>2024** |
|  Revenue | $4042 | $11295 |
|  Cost of goods sold | 5196 | 7468 |
|  Gross (loss) profit | (1154) | 3827 |
|  Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 1187 | 1441 |
| &nbsp;&nbsp;&nbsp; Research and development | 35 | 69 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 66 | 98 |
|  Total operating expenses | 1288 | 1608 |
|  Operating (loss) income | (2442) | 2219 |

---

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**5. DISCONTINUED OPERATIONS** (cont.)

---

| | | |
|:---|:---|:---|
|  | **Year Ended <br>December 31, <br>2025** | **Year Ended <br>December 31, <br>2024** |
|  Other income, net: |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense | 112 | 133 |
| &nbsp;&nbsp;&nbsp; Interest (income) expense – related party | (98) | 77 |
| &nbsp;&nbsp;&nbsp; Gain on sale-leaseback |  | (3669) |
| &nbsp;&nbsp;&nbsp; Other income, net | (58) | (36) |
|  Total other income, net | (44) | (3495) |
|  (Loss) income from discontinued operations | (2398) | 5714 |
|  (Loss) income from discontinued operations attributable to noncontrolling interests | (652) | 1429 |
|  (Loss) income from discontinued operations attributable to Anania & Associates stockholders | $(1746) | $4285 |

---

Following the Company's distribution of Poly Labs on October 1, 2025, a note payable in the amount of $1.7 million owed by the Company to Poly Labs remained outstanding and was recorded within current portion of long-term debt — related party on the consolidated balance sheet. As of December 31, 2025, there was approximately $0.5 million owed to Poly Labs related to the note payable, see Note 12 *— Debt* and Note 14 *— Related Party* for further information*.*

Additionally, as of December 31, 2025, Poly Labs owed the Company $0.2 million related to various management fees and other services provided by the Company to Poly Labs following the distribution date, which is included within related party receivables within the consolidated balance sheet. See Note 14 *— Related Party* for further information.

As the Company distributed its ownership interest in Poly Labs on October 1, 2025, there were no assets or liabilities, other than those noted above, related to Poly Labs that were included within the consolidated balance sheet as of December 31, 2025.

The following table summarizes Poly Labs assets and liabilities that were classified as discontinued operations within the consolidated balance sheet as of December 31, 2024:

---

| | |
|:---|:---|
|  | **December 31, <br>2024** |
|  **Assets** |  |
|  Current Assets: |  |
| &nbsp;&nbsp;&nbsp; Cash | $2923 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 325 |
| &nbsp;&nbsp;&nbsp; Unbilled revenue | 724 |
| &nbsp;&nbsp;&nbsp; Inventories, net | 962 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 151 |
|  Current assets – discontinued operations | 5085 |
|  Property, plant and equipment, net | 1324 |
|  Operating lease right-of-use assets | 4941 |
|  Intangible assets, net | 31 |
|  Non-current assets – discontinued operations | 6296 |
|  Total assets – discontinued operations | $11381 |

---

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**5. DISCONTINUED OPERATIONS** (cont.)

---

| | |
|:---|:---|
|  | **December 31, <br>2024** |
|  **Liabilities** |  |
|  Current Liabilities: |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | $353 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities | 1492 |
| &nbsp;&nbsp;&nbsp; Current portion of long-term debt | 1276 |
|  Current liabilities – discontinued operations | 3121 |
|  Operating lease liabilities, net of current portion | 5022 |
|  Long-term debt, net of current portion | 213 |
|  Long-term debt, net of current portion – related party | 500 |
|  Non-current liabilities – discontinued operations | 5735 |
|  Total liabilities – discontinued operations | $8856 |

---

**6. REVENUE RECOGNITION**

In general, the Company recognizes revenue at the point in time control transfers to its customer based on predetermined shipping terms. Revenue is recognized over time under certain contracts for highly customized products that have no alternative use and in which the contract specifies the Company has enforceable right to payment for its costs, plus a reasonable margin. For products recognized over time, the transfer of control is measured using the input method, which measures progress toward completion as costs are incurred based upon estimates of costs to complete such contracts. Losses on contracts are fully recognized in the period in which the losses become determinable. Revisions in profit estimates are reflected on a cumulative basis in the period in which the basis for such revision becomes known.

#### Disaggregation of Revenue
The following tables disaggregate the Company's revenue by timing and by geographic location for the years ended December 31, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **United States** | **Europe** | **Total** |
|  Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp; Revenue – Point in time | $156444 | $2737 | $159181 |
| &nbsp;&nbsp;&nbsp; Revenue – Over time | 42455 |  | 42455 |
|  Total revenue | $198899 | $2737 | $201636 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **United States** | **Europe** | **Total** |
|  Revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp; Revenue – Point in time | $150141 | $2734 | $152875 |
| &nbsp;&nbsp;&nbsp; Revenue – Over time | 36700 |  | 36700 |
|  Other revenues | 865 |  | 865 |
|  Total revenue | $187706 | $2734 | $190440 |

---

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**6. REVENUE RECOGNITION** (cont.)

#### Contract Balances from Contracts with Customers
The Company records contract assets or contract liabilities on a contract-by-contract basis. The Company's accounts receivable, contract assets and contract liabilities are summarized below:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, <br>2025** | **December 31, <br>2024** | **December 31, <br>2023** |
|  Accounts receivable, net | $28904 | $32759 | $22058 |
|  Unbilled revenue | $2621 | $1349 | $3206 |
|  Deferred revenue | $14853 | $10085 | $1714 |

---

The increase in unbilled revenue during the year ended December 31, 2025 reflects the net impact of revenue recognized in excess of billings during the period. The decrease in unbilled revenue during the year ended December 31, 2024 reflects the net impact of billings in excess of revenue recognized during the period.

The increase in deferred revenue for the years ended December 31, 2025 and 2024 reflects the impact of billings in excess of revenue recognized during the periods.

The Company recognized revenue of approximately $9.9 million and $1.6 million, during the years ended December 31, 2025 and 2024, that was included in the opening contract liabilities as of December 31, 2024 and 2023, respectively. There was no revenue recognized during the year ended December 31, 2025 or 2024 for performance obligations satisfied in prior periods.

The Company did not recognize impairment losses on its contract assets during the years ended December 31, 2025 and 2024.

**7. GOVERNMENT GRANTS**

The Company has entered into multiple subcontract agreements with multiple contract administrators engaged by the United States Government, to perform prototype development, manufacturing process enhancements, and capital equipment build-outs in support of government programs. Under the terms of these agreements, the Company is reimbursed for qualifying costs incurred, including equipment, labor, materials, and manufacturing expenses, plus a nominal contractual profit margin. The Company accounts for these contracts as government grants.

The following table summarizes a roll forward of the deferred government grants for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Year ended <br>December 31, <br>2025** | **Year ended <br>December 31, <br>2024** |
|  Beginning balance | $7605 | $7561 |
|  Cash received from government grants | 5292 | 7854 |
|  Grant receivable for capital expenditures | 1690 |  |
|  Capital expenditures related to government grants | (9915) | (6945) |
|  Other revenue (see Note 6 *– Revenue Recognition)* |  | (865) |
|  Ending balance | $4672 | $7605 |

---

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**7. GOVERNMENT GRANTS** (cont.)

During the years ended December 31, 2025 and 2024, there was approximately $1.7 million and $0.0 million of capital expenditures related to government grants of which the Company expected to receive shortly after the end of the period, included within government grant receivables on the consolidated balance sheets. The deferred government grant liability as of December 31, 2025 will be recognized in future periods as an offset to property, plant and equipment, net or as other revenue, subject to the conditions of the grant agreement being met.

**8. PROPERTY, PLANT AND EQUIPMENT, NET**

Property, plant and equipment, net consists of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2025** | **December 31, <br>2024** |
|  Machinery and equipment | $35141 | $33448 |
|  Buildings and building improvements | 19592 | 17866 |
|  Land | 1751 | 1900 |
|  Furniture, fixtures and vehicles | 2740 | 1708 |
|  Leasehold improvements | 1383 | 1251 |
|  Property and equipment, gross | 60607 | 56173 |
|  Less: Accumulated depreciation | (22182) | (17353) |
|  Plus: Construction in-progress | 3917 | 2002 |
|  Property and equipment, net | $42342 | $40822 |

---

During the years ended December 31, 2025 and 2024, depreciation expense for continuing operations associated with property, plant and equipment, net was approximately $4.8 million and $4.1 million, respectively, of which approximately $4.5 million and $3.9 million, respectively, were included within cost of goods sold, and $0.3 million and $0.2 million, respectively, were included in general and administrative expense. Depreciation expense for the years ended December 31, 2025 and 2024 was net of approximately $1.6 million and $1.3 million, respectively, of contra depreciation expense recognized related to government grants. See Note 7 *— Government Grants* for additional details.

**9. GOODWILL AND INTANGIBLE ASSETS**

#### Goodwill
The changes in the carrying amount of goodwill, which is assigned entirely to the Company's EMP segment (see Note 17 *— Segments),* during the years ended December 31, 2025 and 2024 were as follows:

---

| | |
|:---|:---|
|  | **Amount** |
|  Balance as of December 31, 2023 | $3965 |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustment | (114) |
|  Balance as of December 31, 2024 | 3851 |
| &nbsp;&nbsp;&nbsp; Symphony acquisition (See Note 4 *– Acquisitions*) | 504 |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustment | 228 |
|  Balance as of December 31, 2025 | $4583 |

---

The Company had no accumulated impairment losses as of December 31, 2025 or 2024.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**9. GOODWILL AND INTANGIBLE ASSETS** (cont.)

#### Intangible Assets
The gross carrying amount and accumulated amortization of the Company's intangible assets consisted of the following as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **<br>Gross <br>Carrying <br>Value** | **<br>Accumulated <br>Amortization** | **Foreign <br>Currency <br>Translation <br>Adjustment** | **<br>Net <br>Carrying <br>Value** | **Weighted Average <br>Remaining <br>Amortization <br>Period** |
|  Intangible assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Customer relationships | $10656 | $(5069) | $19 | $5606 | 5.6 years |
| &nbsp;&nbsp;&nbsp; Trademarks and patents | 2181 | (603) |  | 1578 | 10.9 years |
|  Total intangible assets | $12837 | $(5672) | $19 | $7184 |  |

---

The gross carrying amount and accumulated amortization of the Company's intangible assets consisted of the following as of December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **<br>Gross <br>Carrying <br>Value** | **<br>Accumulated <br>Amortization** | **Foreign <br>Currency <br>Translation <br>Adjustment** | **<br>Net <br>Carrying <br>Value** | **Weighted Average <br>Remaining <br>Amortization <br>Period** |
|  Intangible assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Customer relationships | $10321 | $(3999) | $(21) | $6301 | 6.3 years |
| &nbsp;&nbsp;&nbsp; Trademarks and patents | 2181 | (455) |  | 1726 | 11.9 years |
|  Total intangible assets | $12502 | $(4454) | $(21) | $8027 |  |

---

During the years ended December 31, 2025, and 2024, the Company recognized aggregate amortization expense of approximately $1.2 million and $1.3 million, respectively, of which $1.0 million and $1.2 million, respectively, was included within general and administrative expense and $0.2 million and $0.1 million, respectively, was included within cost of goods sold in the consolidated statements of operations.

As of December 31, 2025, estimated future amortization expense of finite-lived intangible assets is as follows:

---

| | |
|:---|:---|
|  **Year Ended December 31,** | **Amount** |
| 2026 | $1236 |
| 2027 | 1236 |
| 2028 | 1236 |
| 2029 | 1236 |
| 2030 | 705 |
|  Thereafter | 1535 |
|  | $7184 |

---

**10. LEASES**

The Company enters into a variety of operating lease agreements through the normal course of its business, but primarily real estate leases to support its operations. The Company leases properties located in Portland, Maine, Lewiston, Maine, Gorham, Maine, Nashua, New Hampshire and Hamburg, Germany. The real estate lease agreements generally provide for fixed minimum rental payments and the payment of real estate taxes and insurance. The Company has lease terms that expire between November 2026 through February 2037.

Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional four to five years. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**10. LEASES** (cont.)

The Company also enters into leases for equipment and service agreements, and other leases related to its manufacturing operations that are classified as finance leases that are not material.

The following table summarizes supplemental balance sheet information related to the Company's operating leases:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2025** | **December 31, <br>2024** |
|  Operating lease right-of-use assets | $10586 | $11477 |
|  Operating lease liabilities, current | $875 | $770 |
|  Operating lease liabilities, non-current | 10247 | 11128 |
|  Total operating lease liabilities | $11122 | $11898 |
|  Weighted-average remaining term | 9.6 years | 10.4 years |
|  Weighted-average discount rate | 10.9% | 11.2% |

---

For the years ended December 31, 2025 and 2024, the Company recognized approximately $2.1 million and $2.0 million of lease expense, respectively, which was recognized within cost of goods sold on the consolidated statements of operations. Variable and short-term lease expense recognized during the years ended December 31, 2025 and 2024 were not material.

As of December 31, 2025, maturities of operating lease liabilities were as follows:

---

| | |
|:---|:---|
|  **Year Ended December 31,** | **Amount** |
| &nbsp;&nbsp;&nbsp; 2026 | $2011 |
| &nbsp;&nbsp;&nbsp; 2027 | 2006 |
| &nbsp;&nbsp;&nbsp; 2028 | 2001 |
| &nbsp;&nbsp;&nbsp; 2029 | 1772 |
| &nbsp;&nbsp;&nbsp; 2030 | 1529 |
| &nbsp;&nbsp;&nbsp; Thereafter | 9162 |
|  Total operating lease payments | 18481 |
|  Less: Imputed interest | (7359) |
|  Present value of future lease payments | $11122 |

---

Supplemental cash flow related to the Company's operating leases were as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
|  Lease expense recognized for operating leases | $2094 | $2030 |
|  Cash paid for amounts included in the measurement of operating lease <br>liabilities | $1979 | $1900 |

---

As of December 31, 2025 and 2024, the Company did not have any leases that had not yet commenced.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

A summary of accrued expenses and other current liabilities as of December 31, 2025 and December 31, 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2025** | **December 31, <br>2024** |
|  Accrued compensation and employee benefits | $6359 | $6326 |
|  Accrued accounts payable | 4919 | 2401 |
|  Accrued interest | 671 | 517 |
|  Accrued sales returns and allowances | 610 | 542 |
|  Other | 1100 | 980 |
|  Total accrued expenses and other current liabilities | $13659 | $10766 |

---

Within accrued interest as of December 31, 2025 and 2024, there was approximately $0.5 million and $0.2 million of accrued interest owed to related parties, respectively. See Note 12 *— Debt* and Note 14 *— Related Party Transactions* for further information.

**12. DEBT**

The following table summarizes the components of long-term debt as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2025** | **December 31, <br>2024** |
|  **Term Loans:** |  |  |
| &nbsp;&nbsp;&nbsp; Wells Fargo Term Loan | $7684 | $9328 |
| &nbsp;&nbsp;&nbsp; First BankProv Term Note | 1688 | 2990 |
| &nbsp;&nbsp;&nbsp; United Federal Credit Union Term Note | 1144 | 1575 |
| &nbsp;&nbsp;&nbsp; October 2023 Term Loans | 500 | 500 |
| &nbsp;&nbsp;&nbsp; Other Equipment Loans | 188 | 357 |
| &nbsp;&nbsp;&nbsp; FAME 2023 Loan | 144 | 217 |
| &nbsp;&nbsp;&nbsp; Symphony Term Loans | 41 |  |
| &nbsp;&nbsp;&nbsp; March 2022 Promissory Note |  | 2580 |
| &nbsp;&nbsp;&nbsp; Second BankProv Term Note |  | 74 |
|  **Line of Credit Facilities:** |  |  |
| &nbsp;&nbsp;&nbsp; Wells Fargo Line of Credit | 20467 | 11531 |
| &nbsp;&nbsp;&nbsp; Domestic March 2020 Line of Credit | 3297 | 2885 |
| &nbsp;&nbsp;&nbsp; Auburn Savings Loan | 766 |  |
| &nbsp;&nbsp;&nbsp; Foreign March 2020 Line of Credit | 166 | 133 |
| &nbsp;&nbsp;&nbsp; Auburn Savings LOC | 148 |  |
| &nbsp;&nbsp;&nbsp; Symphony Line of Credit | 45 |  |
|  Total debt | 36278 | 32170 |
|  Current portion of long-term debt | (7755) | (6239) |
|  Deferred issuance costs | (68) | (108) |
|  Total long-term debt, net of current portion | $28455 | $25823 |

---

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

The following table summarizes the components of long-term debt — related party as of December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2025** | **December 31, <br>2024** |
|  **Related Party:** |  |  |
| &nbsp;&nbsp;&nbsp; Great Falls Term Loan | $15000 | $16500 |
| &nbsp;&nbsp;&nbsp; President Line of Credit | 1771 | 1167 |
| &nbsp;&nbsp;&nbsp; Poly Labs Note Payable (Due to Poly Labs) | 548 |  |
|  Total related party debt | 17319 | 17667 |
|  Current portion of long-term debt – related party | (2319) | (1500) |
|  Total long-term debt, net of current portion – related party | $15000 | $16167 |

---

The following table presents the future principal payments due under the Company's debt amounts, excluding forgivable loans and unamortized debt issuance costs, as of December 31, 2025:

---

| | |
|:---|:---|
|  **Year ended December 31,** | **Amount** |
| 2026 | $10074 |
| 2027 | 2770 |
| 2028 | 39897 |
| 2029 | 21 |
| 2030 | 22 |
|  Thereafter | 669 |
|  Total principal payments | $53453 |

---

#### Term Loans
As of December 31, 2025, the Company has borrowings under multiple term loans. The term loans contain certain restrictive and financial covenants. As of December 31, 2025 and 2024, the Company was in compliance with these covenants.

*<u>*<u>Wells Fargo Term Loan</u>*</u>*

On November 6, 2023, the Company entered into a secured $8.7 million term note with Wells Fargo Bank (the "Wells Fargo Term Loan"). Amounts under the Wells Fargo Term Loan were secured by substantially all of the assets of a consolidated subsidiary.

The Wells Fargo Term Loan accrues interest monthly based on a floating rate, as defined by the lender, and are subject to periodic adjustments based on prevailing market conditions. During the years ended December 31, 2025 and 2024, the Company recognized approximately $0.7 million and $0.7 million of interest expense, respectively. As of December 31, 2025 and 2024, the applicable interest rates were 6.62% and 7.30%, respectively, on the portion of outstanding principal entered into during November 2023, net of aggregate principal repayments of $1.6 million and $1.3 million, respectively, and 8.50% and 9.25%, respectively, on the $2.0 million incremental borrowings entered into during December 2024, net of aggregate principal repayments of $0.4 million and less than $0.1 million, respectively.

Under the Wells Fargo Term Loan, the Company makes monthly principal payments of approximately $0.1 million per month. During the years ended December 31, 2025 and 2024, the Company paid aggregate principal payments of approximately $1.6 million and $1.3 million, respectively, and aggregate interest payments of approximately $0.7 million during both periods related to the Wells Fargo Term Loan.

The Wells Fargo Term Loan has a maturity date of November 6, 2028.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

As of December 31, 2025 and 2024, the outstanding balance related to the Wells Fargo Term Loan was approximately $7.7 million and $9.3 million, of which approximately $1.6 million and $1.6 million, respectively, were included within current portion of long-term debt and $6.1 million and $7.7 million, respectively, were included long-term debt, net of current portion, on the consolidated balance sheets.

The Wells Fargo Term Loan contains financial covenants, including leverage ratio requirements.

*<u>*<u>First BankProv Term Note</u>*</u>*

On March 2, 2020, the Company entered into a secured $6.5 million term note with Provident Bank (the "First BankProv Term Note"). Amounts under the First BankProv Term Note are secured by certain assets of a consolidated subsidiary.

The First BankProv Term Note accrues monthly interest based on a stated interest rate of 4.79%. During the years ended December 31, 2025 and 2024, the Company recognized approximately $0.1 million and $0.2 million of interest expense, respectively.

During the years ended December 31, 2025 and 2024, the Company paid aggregate principal payments of approximately $1.3 million and $1.2 million, respectively, and aggregate interest payments of approximately $0.1 million and $0.2 million, respectively, related to the First BankProv Term Note.

The First BankProv Term Note has a maturity date of March 2, 2027.

As of December 31, 2025 and 2024, the outstanding balance of the First BankProv Term Note was approximately $1.7 million and $3.0 million, respectively, of which $1.4 million and $1.2 million were included within current portion of long-term debt, respectively, and $0.3 million and $1.8 million were included in long-term debt, net of current portion, respectively, on the consolidated balance sheets.

The First BankProv Term Note contains financial covenants, including leverage ratio requirements.

*<u>*<u>United Federal Credit Union Term Note</u>*</u>*

On September 23, 2024, the Company entered into a secured $1.6 million term note with United Federal Credit Union (the "United Federal Credit Union Note"). Amounts under the United Federal Credit Union Note are secured by the related solar project managed by one of the Company's consolidated subsidiaries.

The United Federal Credit Union Note accrues interest monthly based on a stated interest rate of 9.00% with monthly principal payments commencing in March 2025. During the years ended December 31, 2025 and 2024, the Company recognized approximately $0.1 million and less than $0.1 million of interest expense, respectively.

During the years ended December 31, 2025 and 2024, the Company paid aggregate principal payments of approximately $0.4 million and $0.0 million, respectively, and aggregate interest payments of approximately $0.1 million and less than $0.1 million, respectively, related to the United Federal Credit Union Term Note.

The United Federal Credit Union Note has a maturity date of September 10, 2027.

As of December 31, 2025 and 2024, the outstanding balance related to the United Federal Credit Union Note was approximately $1.1 million and $1.6 million, respectively, of which approximately $0.6 million and $0.5 million were included within current portion of long-term debt and $0.5 million and $1.1 million were included within long-term debt, net of current portion, respectively, on the consolidated balance sheets.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

*<u>October 2023 Term Loans</u>*

On October 6, 2023, the Company entered into two separate term loans with investors of a consolidated subsidiary, with aggregate gross proceeds of approximately $0.5 million (the "October 2023 Term Loans"). The October 2023 Term Loans are secured by real estate held by a consolidated subsidiary.

The October 2023 Term Loans accrue interest monthly based on a stated fixed interest rate of 8.00%. During the years ended December 31, 2025 and 2024, the Company recognized $0.1 million and less than $0.1 million of interest expense, respectively, related to the October 2023 Term Loans.

During both the years ended December 31, 2025 and 2024, the Company paid $0.0 million and less than $0.1 million of principal and interest, respectively, on the October 2023 Term Loans.

The maturity dates of the October 2023 Term Loans range from October 2026 to October 2027.

As of December 31, 2025 and 2024, the outstanding balance related to the October 2023 Term Loans was $0.5 million, of which approximately $0.3 million and $0.0 million were included within current portion of long-term debt, respectively, and $0.2 million and $0.5 million were included within long-term debt, net of current portion, respectively, on the consolidated balance sheets.

In April 2025, the Company amended one of the October 2023 Term Loans to add a conversion feature to enable the holder to convert the outstanding principal and accrued interest into membership units of one of the Company's consolidated subsidiaries upon certain liquidity events, including an initial public offering. The conversion option does not require separate accounting as a derivative. On December 29, 2025, the holder of this October 2023 Term Loan waived his right to convert the term loan into AAI membership units.

*<u>*<u>Other Equipment Loans</u>*</u>*

From March 2020 to December 2022, the Company entered into numerous agreements to borrow an aggregate amount of approximately $0.8 million related to secured equipment loans from various lenders (the "Other Equipment Loans"). The Other Equipment Loans are secured by certain assets owned by a consolidated subsidiary.

The Other Equipment Loans accrue monthly interest, with interest rates ranging from 0.00% to 7.25%. During the years ended December 31, 2025 and 2024, the Company recognized less than $0.1 million and approximately $0.1 million of interest expense, respectively.

During the years ended December 31, 2025 and 2024, the Company made aggregate principal payments of approximately $0.1 million and $0.4 million, respectively, and aggregate interest payments of less than $0.1 million and approximately $0.1 million, respectively, related to the Other Equipment Loans.

The Other Equipment Loans have maturity dates ranging from March 2026 through November 2028.

As of December 31, 2025 and 2024, the outstanding balance related to the Other Equipment Loans was approximately $0.2 million and $0.4 million, respectively, of which was $0.1 million and $0.0 million, respectively, and $0.1 million and $0.4 million, respectively, were included within current portion of long-term debt and long-term debt, net of current portion, respectively, on the consolidated balance sheets.

*<u>*<u>FAME 2023 Loan</u>*</u>*

On September 1, 2023, the Company entered into an unsecured and forgivable $0.3 million loan agreement with the Finance Authority of Maine COVID Relief Program (the "FAME 2023 Loan").

The FAME 2023 Loan was borrowed with no stated interest rate. The amount borrowed under the FAME 2023 Loan is forgiven annually, 30 days following each anniversary date, at 25% increments.

During the years ended December 31, 2025 and 2024, approximately $0.1 million of the FAME 2023 Loan was forgiven, and was included within other income, net on the consolidated statements of operations.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

As of December 31, 2025 and 2024, the outstanding balance of the FAME 2023 Loan was approximately $0.1 million and $0.2 million, respectively, which is expected to be fully forgiven.

The maturity date of the FAME 2023 Loan is October 1, 2026.

As of December 31, 2025 and 2024, $0.1 million and $0.1 million, respectively, were included within current portion of long-term debt, and $0.0 million and $0.1 million, respectively were included within long-term debt, net of current portion, respectively on the consolidated balance sheets.

*<u>*<u>Symphony Term Loans</u>*</u>*

On November 14, 2025, as of a result of the Company's acquisition of Symphony, the Company assumed certain liabilities related to approximately $0.1 million of promissory notes (the "Symphony Term Loans") with Rockland Trust Bank ("Rockland Trust'). The Symphony Term Loans are secured by substantially all the assets of a consolidated subsidiary.

The Symphony Term Loans accrue monthly interest, with interest rates ranging from 4.25% to 7.49%. During the year ended December 31, 2025, the Company recognized less than $0.1 million of interest expense.

During the year ended December 31, 2025, the Company made payments of less than $0.1 million of principal and interest, related to the Symphony Term Loans.

The Symphony Term Loans have maturity dates ranging from March 2026 through August 2029.

As of December 31, 2025, the outstanding balance related to the Symphony Term Loans was less than $0.1 million, of which less than $0.1 million and less than $0.1 million were included within current portion of long-term debt and long-term debt, net of current portion, respectively, on the consolidated balance sheet.

*<u>*<u>March 2022 Promissory Note</u>*</u>*

On March 1, 2022, the Company entered into a promissory note with a principal amount of $3.4 million owed to a former employee of the Company (the "March 2022 Promissory Note").

The March 2022 Promissory Note accrued interest monthly based on a floating rate equal to the Wall Street Journal prime rate plus a spread of 2.00%. As of December 31, 2024 the applicable interest rate was 8.00%. During the years ended December 31, 2025 and 2024, the Company recognized approximately $0.1 million and $0.2 million of interest expense, respectively, related to the March 2022 Promissory Note.

During the years ended December 31, 2025 and 2024, the Company made aggregate principal payments of approximately $2.6 million and $0.0 million, respectively, and aggregate interest payments of approximately $0.1 million and $0.2 million, respectively, related to the March 2022 Promissory Note.

In August 2025, the Company paid the remaining principal amount owed of approximately $2.6 million and the March 2022 Promissory Note was terminated.

As of December 31, 2025, there was no outstanding amount related to the March 2022 Promissory Note. As of December 31, 2024, the outstanding balance related to the March 2022 Promissory Note was $2.6 million, which was included within current portion of long-term debt on the consolidated balance sheet.

*<u>*<u>Second BankProv Term Note</u>*</u>*

On March 2, 2020, the Company entered into a secured $1.5 million term note with Provident Bank (the "Second BankProv Term Note"). Amounts under the Second BankProv Term Note were secured by certain assets of a consolidated subsidiary.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

The Second BankProv Term Note accrued monthly interest based on a stated interest rate of 4.08%. During each of the years ended December 31, 2025 and 2024, the Company recognized less than $0.1 million of interest expense, related to the Second BankProv Term Note.

During the years ended December 31, 2025 and 2024, the Company paid aggregate principal payments of approximately $0.1 million and $0.3 million, respectively, and aggregate interest payments of less than $0.1 million during both periods, related to the Second BankProv Term Note.

The Second BankProv Term Note had a maturity date of March 2, 2025. In March 2025, the Company paid the remaining principal amount owed of approximately $0.1 million and the Second BankProv Term Note was terminated.

As of December 31, 2025, there was no outstanding amount related to the Second BankProv Term Note. As of December 31, 2024, the outstanding balance of the Second BankProv Term Note was $0.1 million, which was included within current portion of long-term debt on the consolidated balance sheet.

The Second BankProv Term Note contained financial covenants, including leverage ratio requirements.

*<u>*<u>March 2023 Term Note</u>*</u>*

On March 1, 2023, the Company entered into a $0.4 million secured term note the ("March 2023 Term Note") with Auburn Savings Bank, FSB ("Auburn Savings Bank"). Amounts under the March 2023 Term Note were secured by real estate held by a consolidated subsidiary.

The March 2023 Term Note accrued interest monthly based on the greater of 5.00% or 0.50% plus the Wall Street Journal prime rate. During the years ended December 31, 2025 and 2024, the Company recognized $0.0 million and less than $0.1 million of interest expense, respectively.

The March 2023 Term Note had no stated maturity date; however, in August 2024, the amount owed under the March 2023 Term Note of approximately $0.4 million was settled in full and the March 2023 Term Note was terminated.

*<u>*<u>FAME 2020 Loan</u>*</u>*

On December 1, 2020, the Company entered into a secured $0.5 million term note with Financing Authority of Maine (the "FAME 2020 Loan"). Amounts under the FAME 2020 Loan were secured by substantially all of the assets of a consolidated subsidiary.

The FAME 2020 Loan accrued monthly interest based on a stated interest rate of 5.25% and required monthly payment of principal. During the years ended December 31, 2025 and 2024, the Company recognized $0.0 million and less than $0.1 million of interest expense, respectively.

In June 2024, the Company voluntarily prepaid the principal balance of approximately $0.4 million and the FAME 2020 Loan was terminated.

#### Line of Credit Facilities
As of December 31, 2025 and 2024, the Company has borrowings under revolving line of credit facilities. The lines of credit contain certain restrictive and financial covenants. As of December 31, 2025 and 2024, the Company was in compliance with these covenants.

*<u>*<u>Wells Fargo Line of Credit</u>*</u>*

On November 6, 2023, the Company entered into a $40.0 million revolving credit facility with Wells Fargo Bank (the "Wells Fargo LOC"). Amounts under the Wells Fargo LOC are secured by substantially all of the assets of a consolidated subsidiary.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

The Wells Fargo LOC accrues interest monthly based on a floating rate, as defined by the lender, and is subject to periodic adjustments based on prevailing market conditions. During the years ended December 31, 2025 and 2024, the Company recognized approximately $1.3 million and $1.5 million of interest expense, respectively, related to the Wells Fargo LOC.

During the year ended December 31, 2025, the Company received borrowings, net of repayments, of approximately $9.0 million from the Wells Fargo Line of Credit. During the year ended December 31, 2024, the Company paid aggregate amounts of principal, net of borrowings, of approximately $3.6 million, respectively, from the Wells Fargo Line of Credit. During the years ended December 31, 2025 and 2024, the Company paid aggregate interest payments of approximately $1.3 million and $1.5 million, respectively, related to the Wells Fargo Line of Credit.

The Wells Fargo LOC expires in November 2028.

As of December 31, 2025 and 2024, outstanding borrowings under the Wells Fargo LOC totaled approximately $20.5 million and $11.5 million, respectively. As of December 31, 2025, availability to borrow under the Wells Fargo Line of Credit was approximately $19.4 million, as the principal sum of up to $39.9 million was available to be borrowed. As of December 31, 2025 and 2024, the applicable interest rates were 5.92% and 6.57%, respectively, on $10.0 million outstanding as of each period and 7.75% and 8.50% respectively, on the remaining outstanding amount of approximately $10.5 million and $1.5 million, respectively. As of December 31, 2025 and 2024, the Wells Fargo LOC Credit was included within long-term debt, net of current portion on the consolidated balance sheets.

The Company is required to pay customary fees associated with the credit facility, including commitment and administrative fees. The Wells Fargo LOC contains financial covenants, including leverage ratio requirements.

*<u>*<u>Domestic March 2020 Line of Credit</u>*</u>*

On March 2, 2020, the Company entered into a $3.0 million demand line of credit with the Provident Bank (the "Domestic March 2020 Line of Credit") to finance domestic receivables and inventory. Amounts under the Domestic March 2020 Line of Credit are secured by certain assets of a consolidated subsidiary.

On January 30, 2025, the Company entered into an amendment to the Domestic March 2020 Line of Credit increasing its availability to borrow under the Domestic March 2020 Line of Credit from $3.0 million to $4.0 million. With the execution of the amendment, the Company and the lender also agreed to extend the maturity date from February 2025 to February 2026, which was subsequently extended to April 2026, as part of a second amendment to the Domestic March 2020 Line of Credit that was entered into on January 30, 2026. All other key terms of the original Domestic March 2020 Line of Credit agreement remained consistent.

The Domestic March 2020 Line of Credit accrues interest monthly based on a floating rate equal to the Wall Street Journal prime rate which was equal to 7.00% and 7.50% as of December 31, 2025 and 2024, respectively. During the years ended December 31, 2025 and 2024, the Company recognized approximately $0.1 million and $0.3 million of interest expense, respectively, related to the Domestic March 2020 Line of Credit.

During the years ended December 31, 2025 and 2024, the Company received borrowings, net of repayments, of approximately $0.4 million and $0.0 million, respectively, from the Domestic March 2020 Line of Credit. During the years ended December 31, 2025 and 2024, the Company paid aggregate interest payments of approximately $0.1 million and $0.3 million, respectively, related to the Domestic March 2020 Line of Credit.

As of December 31, 2025 and 2024, outstanding borrowings were approximately $3.3 million and $3.0 million, respectively, including $3.3 million and $2.9 million of principal, respectively, and $0.0 million and $0.1 million of accrued interest, respectively. As of December 31, 2025, availability to borrow under the Domestic March 2020 Line of Credit was approximately $0.7 million, as the principal sum of up to $4.0 million was available to be borrowed as of December 31, 2025.

The Domestic March 2020 Line of Credit expires in April 2026.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

As of December 31, 2025, the Domestic March 2020 Line of Credit was included within current portion of long-term debt on the consolidated balance sheet. As of December 31, 2024, the Domestic March 2020 Line of Credit was included within long-term debt, net of current portion on the consolidated balance sheet, as a result of the Company intent and ability to extend the maturity date beyond twelve months of the period ended December 31, 2024, which was finalized on January 30, 2025.

The Company is required to pay customary fees associated with the credit facility, including commitment and administrative fees. The Domestic March 2020 Line of Credit contains financial covenants, including leverage ratio requirements.

*<u>*<u>Auburn Savings Loan</u>*</u>*

On December 26, 2024, the Company entered into a $0.8 million construction loan with Auburn Savings Bank, FSB ("Auburn Savings Bank") pursuant to a Commercial Note Agreement (the "Auburn Savings Loan").

The Auburn Savings Loan accrues interest monthly based on a stated interest rate of 7.00% for the first five years, which will be adjusted every fifth anniversary of January 25, 2026 to the Federal Home Loan Banks 5/20 amortizing advance rate plus 3.00%. During the years ended December 31, 2025 and 2024, the Company incurred interest expense of less than $0.1 million and $0.0 million, respectively, related to the Auburn Savings Loan.

During the years ended December 31, 2025 and 2024, the Company drew principal amounts of approximately $0.8 million and $0.0 million, respectively, and paid interest of less than $0.1 million and $0.0 million, respectively, related to the Auburn Savings Loan.

As of December 31, 2025, the outstanding balance on the Auburn Savings Loan was approximately $0.8 million. There was no outstanding amount borrowed under the Auburn Savings Loan as of December 31, 2024. Availability to borrow under the Auburn Savings Loan was $0.0 million, as the principal sum of up to $0.8 million was available to be borrowed as of December 31, 2025.

The maturity date of the Auburn Savings Loan is December 25, 2046.

As of December 31, 2025, of the total outstanding balance on the Auburn Savings Loan of approximately $0.8 million, less than $0.1 million was included within current portion of long-term debt and approximately $0.8 million was included long-term debt, net, of current portion on the consolidated balance sheet.

The obligations under the Auburn Savings Loan are secured by a lien on certain real estate assets and guaranteed by a consolidated subsidiary. In addition, the Auburn Savings Loan is subject to customary conditions, including events of default.

*<u>*<u>Foreign March 2020 Line of Credit</u>*</u>*

On March 2, 2020, the Company entered into a $1.0 million demand line of credit with Provident Bank (the "Foreign March 2020 Line of Credit") to finance foreign receivables denominated in euros. Amounts under the Foreign March 2020 Line of Credit are secured by certain assets of the Company and are insured by accounts receivable credit insurance.

On January 30, 2025 and on January 30, 2026, the Company entered into two separate amendments to the Foreign March 2020 Line of Credit. The first amendment entered into during January 2025 extended the maturity date from February 2025 to February 2026, which was subsequently extended to April 2026 as executed under the second amendment entered into during January 2026. All other key terms of the original Foreign March 2020 Line of Credit agreement remained consistent.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

The Foreign March 2020 Line of Credit accrues interest monthly based on a floating rate equal to the Wall Street Journal prime rate which was 7.00% and 7.50% as of December 31, 2025 and 2024, respectively. During the years ended December 31, 2025 and 2024, the Company recognized less than $0.1 million of interest expense related to the Foreign March 2020 Line of Credit.

During the years ended December 31, 2025 and 2024, the Company received borrowings, net of repayments, of approximately $0.1 million and $0.0 million, respectively, from the Foreign March 2020 Line of Credit. During the years ended December 31, 2025 and 2024, the Company paid less than $0.1 million of interest, related to the Foreign March 2020 Line of Credit.

As of December 31, 2025 and 2024, outstanding borrowings were approximately $0.2 million and $0.1 million, respectively. As of December 31, 2025, availability to borrow under the Foreign March 2020 Line of Credit was approximately $0.8 million, as the principal sum of up to $1.0 million was available to be borrowed as of December 31, 2025.

The Foreign March 2020 Line of Credit expires in April 2026.

As of December 31, 2025, the Foreign March 2020 Line of Credit was included within current portion of long-term debt on the consolidated balance sheet. As of December 31, 2024, the Foreign March 2020 Line of Credit was included within long-term debt, net of current portion on the consolidated balance sheet, as a result of the Company intent and ability to extend the maturity date beyond twelve months of the period ended December 31, 2024, which was finalized on January 30, 2025.

The Company is required to pay customary fees associated with the credit facility, including commitment and administrative fees. The Foreign March 2020 Line of Credit contains financial covenants, including leverage ratio requirements.

*<u>*<u>Auburn Savings LOC</u>*</u>*

On April 14, 2025, the Company entered into a $0.6 million line of credit facility with Auburn Savings Bank pursuant to a Demand Commercial Line of Credit Agreement (the "Auburn Savings LOC").

The Auburn Savings LOC accrues interest monthly based on a floating rate equal to the Wall Street Journal prime rate plus 0.50%. The effective interest on the Auburn Savings LOC as of December 31, 2025 was 7.25%. During the year ended December 31, 2025, the Company incurred interest expense of less than $0.1 million related to the Auburn Savings LOC.

During the year ended December 31, 2025, the Company drew approximately $0.1 million in principal and paid interest of less than $0.1 million related to the Auburn Savings LOC.

As of December 31, 2025, the Auburn Savings LOC had an outstanding balance of approximately $0.1 million. Availability to borrow under the Auburn Savings LOC was approximately $0.5 million, as the principal sum of up to $0.6 million was available to be borrowed as of December 31, 2025.

The Auburn Savings LOC does not have a maturity date but is due on demand at Auburn Savings Bank's discretion or upon an event of default as defined in the Auburn Savings LOC.

As of December 31, 2025, the outstanding balance on the Auburn Savings LOC was included within current portion of long-term debt, in the consolidated balance sheet.

The obligations under the Auburn Savings LOC are secured by a lien on certain real estate assets and guaranteed by a consolidated subsidiary. In addition, the Auburn Savings LOC is subject to customary conditions, including events of default.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

*<u>*<u>Symphony Line of Credit</u>*</u>*

On November 14, 2025, as a result of the Company's acquisition of Symphony, the Company assumed certain liabilities related to a $0.1 million line of credit (the "Symphony Line of Credit") with Rockland Trust. Amounts under the Symphony Line of Credit are secured by certain assets of a consolidated subsidiary.

The Symphony Line of Credit accrues interest monthly based on a floating rate equal to the Wall Street Journal prime rate which was 4.25% as of December 31, 2025. During the year ended December 31, 2025, the Company recognized less than $0.1 million of interest expense related to the Symphony Line of Credit.

Under the Symphony Line of Credit, the Company makes monthly principal payments of less than $0.1 million per month. During the year ended December 31, 2025, the Company paid less than $0.1 million of principal and interest related to the Symphony Line of Credit.

As of December 31, 2025, the outstanding balance related to the Symphony Line of Credit was less than $0.1 million. Availability to borrow under the Symphony Line of Credit was less than $0.1 million, as the principal sum of up to $0.1 million was available to be borrowed as of December 31, 2025.

The Symphony Line of Credit does not have a maturity date but is due on demand at Rockland Trust's discretion or upon an event of default as defined in the Symphony Line of Credit.

As of December 31, 2025, the outstanding balance related to the Symphony Line of Credit was included within current portion of long-term debt on the consolidated balance sheet.

The Symphony Line of Credit is subject to customary conditions, including events of default.

#### Related Party Debt
*<u>*<u>Great Falls Term Loan</u>*</u>*

On November 6, 2023, the Company entered into a secured $20.0 million term note with Great Falls Property, LLC (the "Great Falls Term Loan"), which is owned by a principal stockholder of a consolidated subsidiary. The Great Falls Term Loan is secured by real estate held by a consolidated subsidiary.

The Great Falls Term Loan accrues interest monthly based on a floating rate equal to the Wall Street Journal prime rate plus a spread of 1.00%, with a floor of 9.50%. As of December 31, 2025 and 2024, the effective interest rate on the Great Falls Term Loan was 9.50%. During the years ended December 31, 2025 and 2024, the Company recognized approximately $1.5 million and $1.7 million of interest expense, respectively, related to the Great Falls Term Loan, included within "interest expense — related party" within the consolidated statements of operations.

During the years ended December 31, 2025 and 2024, the Company paid aggregate principal payments of $1.5 million and aggregate interest payments of approximately $1.4 million and $1.7 million, respectively, related to the Great Falls Term Loan. As of December 31, 2025 and 2024, the Company accrued interest expense of approximately $0.1 million and $0.0 million, respectively, which was included within accrued expenses and other current liabilities within the consolidated balance sheets.

The maturity date of the Great Falls Term Loan is November 6, 2028.

As of December 31, 2025 and 2024, the total amount outstanding related to the Great Falls Term Loan was approximately $15.0 million and $16.5 million, respectively, of which approximately $0.0 million and $1.5 million, respectively, were included within current portion of "long-term debt — related party" and $15.0 million and $15.0 million, respectively, were included within "long-term debt, net of current portion — related party", respectively, on the consolidated balance sheets.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

*<u>*<u>President Line of Credit</u>*</u>*

On January 1, 2023, the Company entered into a $2.0 million line of credit note with the Company's President (the "President Line of Credit").

On October 1, 2025, the Company entered into an amendment to the President Line of Credit, increasing the total amount available to borrow from $2.0 million to $2.5 million. All other key terms of the President Line of Credit agreement remained consistent.

The President Line of Credit accrues interest monthly based on a stated interest rate of 9.00%. During the years ended December 31, 2025 and 2024, the Company recognized approximately $0.1 million and $0.1 million of interest expense, respectively, included within "interest expense — related party" within the consolidated statements of operations.

During the year ended December 31, 2025, the Company received borrowings, net of repayments, of approximately $0.6 million related to the President Line of Credit. During the year ended December 31, 2024, the Company paid aggregate principal payments, net of borrowings, of approximately $0.1 million related to the President Line of Credit. During the years ended December 31, 2025 and 2024, the Company paid aggregate interest payments of $0.0 million, related to the President Line of Credit. As of December 31, 2025 and 2024, the Company accrued interest expense of approximately $0.4 million and $0.2 million, respectively, which was included within accrued expenses and other current liabilities within the consolidated balance sheets.

As of December 31, 2025, availability to borrow under the President Line of Credit was approximately $0.7 million, as the principal sum of up to $2.5 million was available to be borrowed as of December 31, 2025.

The original maturity date of the President Line of Credit is January 1, 2026. On January 1, 2026, the Company amended the President Line of Credit to extend the maturity date from January 1, 2026 to the earlier of: (i) the closing of an initial public offering, or (ii) July 1, 2026. In connection with the amendment, the Company agreed to pay an extension fee of $0.2 million at maturity in addition to the outstanding principal and accrued, unpaid interest.

As of December 31, 2025 and 2024, approximately $1.8 million and $1.2 million, respectively, was outstanding related to the President Line of Credit, of which approximately $1.8 million and $0.0 million, respectively, and $0.0 million and $1.2 million, respectively, were included within current portion of "long-term debt — related party" and "long-term debt, net of current portion — related party" on the consolidated balance sheets.

*<u>*<u>Poly Labs Note Payable (Due to Poly Labs)</u>*</u>*

Following the Company's distribution of Poly Labs, see Note 5 *— Discontinued Operations* for further information, the Company had an outstanding note payable owed to Poly Labs of approximately $1.7 million (the "Poly Labs Note Payable"). Prior to the distribution of Poly Labs, the Poly Labs Note Payable was eliminated in consolidation.

The Poly Labs Note Payable accrues interest monthly based on a stated interest rate of 10.00%. During the years ended December 31, 2025, the Company recognized less than $0.1 million of interest expense included within interest expense — related party within the consolidated statements of operations.

During the year ended December 31, 2025, the Company paid approximately $1.2 million and less than $0.1 million of principal and interest, respectively, related to the Poly Labs Note Payable.

The Poly Labs Note Payable was repaid on January 19, 2026.

As of December 31, 2025 approximately $0.5 million was outstanding related to the Poly Labs Note Payable, which was included within current portion of "long-term debt — related party" on the consolidated balance sheet.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**12. DEBT** (cont.)

*<u>*<u>March 2022 Term Note</u>*</u>*

On March 22, 2022, the Company entered into a $0.4 million unsecured term note with a principal stockholder of a consolidated subsidiary (the "March 2022 Term Note").

The March 2022 Term Note accrued interest monthly based on a stated interest rate of 5.00%. During the years ended December 31, 2025 and 2024, the Company recognized $0.0 million and less than $0.1 million of interest expense, respectively, included within "interest expense — related party" within the consolidated statements of operations.

The original maturity date of the March 2022 Related Party Term Note was March 22, 2027; however, in June 2024, the amount owed under the March 2022 Term Note of approximately $0.4 million was settled in full and the March 2022 Term Note was terminated.

**13. COMMON STOCK**

As of December 31, 2025 and 2024, the Company had 1,500,000 shares of zero par value common stock authorized, of which 782,670 shares of common stock were issued and outstanding. Holders of the Company's common stock are entitled to one vote per share. In the event of a liquidation, dissolution, winding-up, or deemed liquidation event of the Company, proceeds available for distribution or allocation will be distributed or allocated among the common stockholders on a pro rate basis. In addition, holders of common stock are entitled to receive dividends, if and when declared by the Company's board of directors. As of December 31, 2025 and 2024, the Company has not declared dividends. During the years ended December 31, 2025 and 2024, stockholder distributions for taxes totaled approximately $1.7 million and $3.7 million, respectively, which is included within stockholder distributions in the consolidated statements of changes of stockholders' equity.

**14. RELATED PARTY TRANSACTIONS**

As of December 31, 2025, Poly Labs owed the Company $0.2 million related to various management fees and other services provided by the Company to Poly Labs following the October 1, 2025 distribution date, which is included within related party receivables within the consolidated balance sheet. The related party receivable was non-interest bearing and contained no stated maturity date.

During the year ended December 31, 2025, the Company entered into a $1.7 million note payable with Poly Labs, which is majority owned by the Company's President. As of December 31, 2025, $0.5 million remained unpaid and outstanding. Prior to the distribution of Poly Labs, the note payable was eliminated in consolidation. Refer to Note 12 *— Debt* for further information.

During the year ended December 31, 2023, the Company and an employee of the Company entered into a note receivable, which consisted of a note bearing interest at 1.5% with an initial maturity date of August 31, 2025. In November 2025, the parties agreed to extend the maturity date of the note to March 1, 2026. At the maturity date the remaining principal and accrued interest will be due in full. As of December 31, 2025 and 2024, the outstanding balance on the note receivable was approximately $0.2 million and was included in related party receivables on the consolidated balance sheet.

During the year ended December 31, 2023, the Company entered into a $20.0 million term note with Great Falls Property, LLC, which is owned by a principal stockholder of a consolidated subsidiary. The loan proceeds were used to fund a portion of one of the Company's 2023 acquisitions. Refer to Note 12 *— Debt* for further information.

During the year ended December 31, 2023, the Company entered into a $2.0 million line of credit with the Company's President, which was further increased to $2.5 million as a result of an amendment entered into during the year ended December 31, 2025. The loan proceeds were used to fund working capital needs. Refer to Note 12 *— Debt* for further information.

During the year ended December 31, 2022, the Company entered into a term note with a principal stockholder of a consolidated subsidiary raising $0.4 million. The loan proceeds were used to fund working capital needs. During the year ended December 31, 2024, the term note was fully repaid. Refer to Note 12 *— Debt* for further information.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**15. STOCK — BASED COMPENSATION**

During the year ended December 31, 2025, the Company recognized stock-based compensation expense of approximately $0.3 million and $1.1 million, related to TEG stock-based awards and consolidated subsidiary stock-based awards, respectively, which are recorded within general and administrative expense in the accompanying consolidated statement of operations. The Company did not grant any stock-based awards that would require recognition prior to the year ended December 31, 2025.

As of December 31, 2025, the Company had unrecognized stock-based compensation expense of $2.0 million and $1.1 million related to TEG stock-based awards and consolidated subsidiary stock-based awards, respectively, that is expected to be recognized over a weighted-average period of 2.2 years and 0.7 years, respectively. The aggregate grant date fair value of stock-based payment awards issued to employees of the Company during the year ended December 31, 2025 was $2.3 million and $2.2 million related to TEG stock-based awards and consolidated subsidiary-based awards, respectively.

Certain TEG stock-based awards issued to employees include a performance-based vesting condition tied to a liquidity event, including an initial public offering, which is not probable until it occurs. The grant date fair value and unrecognized stock-based compensation expense for TEG stock-based awards with a performance-based vesting condition was $0.9 million, which will be recognized as stock-based compensation expense when the performance-based vesting condition is probable of being met. No consolidated subsidiary stock-based awards include a performance-based vesting condition.

**16. COMMITMENTS AND CONTINGENCIES**

*<u>*<u>Unit Appreciation Rights</u>*</u>*

The Company has granted unit appreciation rights ("UARs") in a consolidated subsidiary to certain employees which entitle the employees to cash payments upon the occurrence of a qualifying liquidity event. The Company accounts for these awards as a cash-settled profit-sharing bonus arrangement. For the years ended December 31, 2025 and 2024, no compensation expense was recorded in these consolidated financial statements related to the unit appreciation rights, as the Company determined that a qualifying liquidity event was not probable.

*<u>*<u>Litigation</u>*</u>*

In the normal course of business, the Company may become subject to various claims and litigation. The Company may also become subject to threatened or pending legal actions arising from activities of contractors. A liability is recorded for claims or other contingencies when the risk of loss is probable and the amount can be reasonably estimated. Legal fees are expensed as incurred. As of December 31, 2025 and 2024, the Company was not subject to any material litigation nor was the Company aware of any material litigation threatened against it.

*<u>*<u>Retirement Plans</u>*</u>*

The Company and its subsidiaries maintain defined contribution 401(k) plans for eligible employees. Eligibility generally requires employees to be at least 21 years of age and to have completed a minimum service period. The plans provide for employer matching contributions, which are recognized as expense when incurred. Total matching contributions for the years ended December 31, 2025 and 2024, were approximately $2.6 million and $2.8 million, respectively, of which approximately $2.1 million and $2.6 million, respectively, were included within cost of goods sold, $0.2 million and $0.2 million, respectively, were included in general and administrative expenses, $0.2 million and $0.0 million, respectively, were included in sales and marketing, and $0.1 million and $0.0 million, respectively were included in research and development in the consolidated statements of operations. As of December 31, 2025 and 2024, all matching contributions had been paid except for approximately $0.1 million and $0.2 million, respectively, which remained unpaid at year-end and were included in accrued expenses and other current liabilities in the consolidated balance sheets.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**16. COMMITMENTS AND CONTINGENCIES** (cont.)

Additionally, the Company makes contributions to a union retirement plan on behalf of its union employees at fixed rates based on hours worked. During the years ended December 31, 2025 and 2024, expenses associated with these contributions totaled approximately $0.4 million and $0.3 million, respectively.

*<u>*<u>Supplier Agreement</u>*</u>*

In 2024, the Company entered into a five-year supply agreement with a vendor for the purchase of raw materials. Pursuant to the terms of the agreement, the Company made a prepayment of approximately $0.7 million, which will be applied against future purchases in accordance with the contractual schedule. As of December 31, 2025 and 2024, approximately $0.6 million of the prepayment is classified as other assets, and approximately $0.1 million is included in prepaid and other current assets in the consolidated balance sheets.

**17. SEGMENTS**

The Company operates and manages its business through its divisions: CMC and EMP. Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the CODM, the Company's President, in deciding how to allocate resources, assess performance, and establish budgets and forward-looking forecasts.

The Company reports its financial results in two operating and reportable business segments: CMC and EMP. The Company's reportable segments reflect the way in which internally reported financial information is used to make decisions and allocate resources, as the CODM primarily reviews financial performance at distinct levels between CMC and EMP when making operating decisions, allocating resources, and evaluating financial performance. Refer to Note 1 *— Business and Organization* for further information on the operations of the CMC and EMP divisions.

The remaining operations of the Company do not meet the quantitative thresholds for separate segment disclosure and are included within Corporate and Other in the below reconciliation of reportable segment results to the Company's consolidated results. Corporate and Other includes corporate administrative functions and other consolidated entities that are insignificant to the Company's consolidated results.

The CODM assesses performance and decides how to allocate resources and make operating decisions based on income (loss) before taxes that is reported on the consolidated statements of operations. This metric is also used to monitor budget versus actual results. The measure of segment assets is reported on the consolidated balance sheets as total assets. Revenues, expenses, and assets requiring disclosure by segment are also included in the accompanying consolidated financial statements.

The following tables (i) summarize total revenues by segment, (ii) reconcile each segment's revenues to their respective segment operating income (loss), including segment operating expenses, (iii) reconcile each segment's income (loss) from continuing operations before taxes and (iv) reconcile income (loss) from continuing operations for the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** |
|  | **CMC** | **EMP** | **Corporate <br>and Other** | **Total** |
|  Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Revenue – Point in time | $132673 | $26508 | $— | $159181 |
| &nbsp;&nbsp;&nbsp; Revenue – Over time | 39283 | 3172 |  | 42455 |
|  Total revenue | 171956 | 29680 |  | 201636 |
|  Cost of goods sold | 140547 | 20070 |  | 160617 |
|  Gross profit | 31409 | 9610 |  | 41019 |

---

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**17. SEGMENTS** (cont.)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** |
|  | **CMC** | **EMP** | **Corporate <br>and Other** | **Total** |
|  Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative<sup>(1)</sup> | 8718 | 5038 | 5169 | 18925 |
| &nbsp;&nbsp;&nbsp; Research and development | 2110 | 1247 |  | 3357 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 4593 | 1494 | 576 | 6663 |
|  Operating expenses | 15421 | 7779 | 5745 | 28945 |
|  Operating income (loss) | 15988 | 1831 | (5745) | 12074 |
|  Interest expense | 2172 | 371 | 70 | 2613 |
|  Interest expense – related party | 1522 | 234 | 41 | 1797 |
|  Other income, net | (19) | (92) | (120) | (231) |
|  Income (loss) from continuing operations before taxes | 12313 | 1318 | (5736) | 7895 |
|  Income tax benefit |  | (45) |  | (45) |
|  Income (loss) from continuing operations | $12313 | $1363 | $(5736) | $7940 |

---

____________

(1) Operating expenses include stock-based compensation of approximately $1.1 million and less than $0.3 million within the CMC and Corporate and Other segments, respectively. There is no stock-based compensation within the EMP segment.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **CMC** | **EMP** | **Corporate <br>and Other** | **Total** |
|  Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Revenue – Point in time | $129720 | $23155 | $— | $152875 |
| &nbsp;&nbsp;&nbsp; Revenue – Over time | 33837 | 2863 |  | 36700 |
| &nbsp;&nbsp;&nbsp; Other revenues | 865 |  |  | 865 |
|  Total revenue | 164422 | 26018 |  | 190440 |
|  Cost of goods sold | 131768 | 18393 |  | 150161 |
|  Gross profit | 32654 | 7625 |  | 40279 |
|  Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 11018 | 4453 | 962 | 16433 |
| &nbsp;&nbsp;&nbsp; Research and development | 2439 | 1263 |  | 3702 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 4301 | 1190 | 440 | 5931 |
|  Operating expenses | 17758 | 6906 | 1402 | 26066 |
|  Operating income (loss) | 14896 | 719 | (1402) | 14213 |
|  Interest expense | 2176 | 527 | 411 | 3114 |
|  Interest expense (income) – related party | 1717 | 216 | (211) | 1722 |
|  Other expense (income), net | 70 | (268) | (8) | (206) |
|  Income (loss) from continuing operations before taxes | 10933 | 244 | (1594) | 9583 |
|  Income tax benefit |  | (135) |  | (135) |
|  Income (loss) from continuing operations | $10933 | $379 | $(1594) | $9718 |

---

For the year ended December 31, 2025, there were no customers that accounted for greater than 10% of total revenues. For the year ended December 31, 2024, the Company's largest customer, which accounted for more than 10% of total revenue, related to the CMC segment.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**17. SEGMENTS** (cont.)

Depreciation and amortization expense by segment for the years ended December 31, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **CMC** | **EMP** | **Corporate <br>and Other** | **Total** |
|  Depreciation and amortization | $4926 | $1122 | $— | $6048 |
|  Total depreciation and amortization | $4926 | $1122 | $— | $6048 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **CMC** | **EMP** | **Corporate <br>and Other** | **Total** |
|  Depreciation and amortization | $4139 | $1224 | $— | $5363 |
|  Total depreciation and amortization | $4139 | $1224 | $— | $5363 |

---

Total assets for the Company's business segments, as of December 31, 2025 and 2024, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **CMC** | **EMP** | **Corporate <br>and Other** | **Total** |
|  Total assets | $148704 | $26322 | $620 | $175646 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024<sup>(1)</sup>** | **December 31, 2024<sup>(1)</sup>** | **December 31, 2024<sup>(1)</sup>** | **December 31, 2024<sup>(1)</sup>** |
|  | **CMC** | **EMP** | **Corporate and <br>Other** | **Total** |
|  Total assets | $135437 | $25346 | $2316 | $163099 |

---

____________

(1) Total assets for the Company's business segments as of December 31, 2024 exclude discontinued operations.

Capital expenditures net of grants proceeds, by segment during the years ended December 31, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** | **Year Ended, December 31, 2025** |
|  | **CMC** | **EMP** | **Corporate and <br>Other** | **Total** |
|  Purchases of property, plant and equipment, net of grant proceeds | $10059 | $316 | $3 | $10378 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended, December 31, 2024** | **Year Ended, December 31, 2024** | **Year Ended, December 31, 2024** | **Year Ended, December 31, 2024** |
|  | **CMC** | **EMP** | **Corporate and <br>Other** | **Total** |
|  Purchases of property, plant and equipment, net of grant proceeds | $5818 | $201 | $27 | $6046 |

---

The accounting policies of the business segments are the same as those for the Company.

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#### ANANIA & ASSOCIATES AND SUBSIDIARIES (a / k / a THE ELMET GROUP CO.)

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
**17. SEGMENTS** (cont.)

As of December 31, 2025 and 2024, geographic information about long-lived assets associated with particular regions are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **United States** | **Europe** | **Total** |
|  Property, plant and equipment, net | $42342 | $— | $42342 |
|  Operating lease right-of-use assets | 10570 | 16 | 10586 |
|  Intangible assets, net | 6922 | 262 | 7184 |
|  Goodwill | 2685 | 1898 | 4583 |
|  Other assets | 878 |  | 878 |
|  Total long-lived assets | $63397 | $2176 | $65573 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **United States** | **Europe** | **Total** |
|  Property, plant and equipment, net | $40718 | $104 | $40822 |
|  Operating lease right-of-use assets | 11440 | 37 | 11477 |
|  Intangible assets, net | 7766 | 261 | 8027 |
|  Goodwill | 2182 | 1669 | 3851 |
|  Other assets | 823 | 6 | 829 |
|  Total long-lived assets | $62929 | $2077 | $65006 |

---

**18. SUBSEQUENT EVENTS**

The Company has evaluated its consolidated financial statements and disclosures for the impact of subsequent events through March 6, 2026, the date these consolidated financial statements were issued, for events requiring disclosure or recognition in the consolidated financial statements.

*Reorganization*

On January 2, 2026, the Company effected a reorganization (the "Reorganization") whereby the shareholders of Anania & Associates and the noncontrolling interest holders in consolidated subsidiaries of Anania & Associates contributed their ownership interests in the Anania & Associates and its consolidated subsidiaries to The Elmet Group Co. ("TEG") in exchange for shares of common stock in TEG. The Reorganization was a reorganization of entities under common control as Anania & Associates and TEG were controlled by the Company's President before and after the Reorganization. A reorganization of entities under common control is accounted for in a manner similar to a pooling of interests with the assets and liabilities being carried over at their historical amounts, however the impact of the Reorganization is not being recognized in the consolidated financial statements as of and for the years ended December 31, 2025 and 2024 as it occurred subsequent to December 31, 2025. Following the Reorganization, Anania & Associates and its consolidated subsidiaries are wholly owned by TEG, except for Anania and Associates Investment Company LLC ("AAI"), which as a result of the Reorganization is no longer controlled by TEG or Anania & Associates. Following the Reorganization, the Company is no longer an S-corporation for taxation purposes.

In connection with the Reorganization, all outstanding UARs in a consolidated subsidiary of the Company were converted into stock appreciation rights ("SARs") of TEG that entitle the SAR holders to receive cash or common stock of TEG, at the discretion of the Company, upon the occurrence of a liquidity event.

*Cyber Incident*

On February 7, 2026, the Company experienced a system outage caused by a cybersecurity incident, resulting in disruption of certain services related to the EMP and Corporate and Other segments. In response to the incident, the Company activated its incident response team, comprised of internal personnel and external cybersecurity experts to address the incident. Based on the information currently known as of the date these consolidated financial statements are available to be issued, the Company does not expect the incident to have a material impact on its business or financial results.

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 **Through and including , 2026 (the 25**<sup>th</sup> **day after the date of this offering), 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.**

#### 7,692,307 Shares of Common Stock

#### THE ELMET GROUP CO.

#### _____________________

#### PROSPECTUS

#### _____________________

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| | | |
|:---|:---|:---|
|  | **Cantor** |  |
|  **Needham & Company** |  | **Canaccord Genuity** |
|  | **Roth Capital Partners** |  |

---

#### ___________________, 2026

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#### PART II — INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 13. Other Expenses of Issuance and Distribution
The following table sets forth the expenses in connection with this registration statement. All of such expenses are estimates, other than the filing fees payable to the Securities and Exchange Commission and to FINRA.

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| | |
|:---|:---|
|  | **Amount <br>to be paid** |
|  SEC registration fee | $15881.50 |
|  FINRA filing fee | $17750.00 |
|  The Nasdaq initial listing fee | $80000.00 |
|  Transfer agent and registrar fees | $10000.00 |
|  Accounting fees and expenses | $828000.00 |
|  Legal fees and expenses | $1000000.00 |
|  Printing expenses | $40000.00 |
|  Miscellaneous expenses | $450000.00 |
|  Total | $2441631.50 |

---

#### Item 14. Indemnification of Directors and Officers
Section 145 of the Delaware General Corporation Law provides that a corporation may indemnify directors and officers as well as other employees and individuals against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any threatened, pending or completed actions, suits or proceedings in which such person is made a party by reason of such person being or having been a director, officer, employee or agent of the corporation. Section 145 of the Delaware General Corporation Law also provides that expenses (including attorneys' fees) incurred by a director or officer in defending an action may be paid by a corporation in advance of the final disposition of an action if the director or officer undertakes to repay the advanced amounts if it is determined such person is not entitled to be indemnified by the corporation. The Delaware General Corporation Law provides that Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise. Our amended and restated bylaws, which will be in effect upon the consummation of this offering, provide that, to the fullest extent permitted by law, we shall indemnify and hold harmless any person who was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such person, or the person for whom he is the legally representative, is or was a director or officer of ours, against all liabilities, losses, expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such proceeding.

Section 102(b)(7) of the Delaware General Corporation Law permits a corporation to provide in its certificate of incorporation that 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, except for liability (i) for any breach of the director's duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) for unlawful payments of dividends or unlawful stock repurchases, redemptions or other distributions, or (iv) for any transaction from which the director derived an improper personal benefit. Our amended and restated certificate of incorporation that will be in effect immediately prior to the consummation of this offering will include this provision.

Additionally, our amended and restated certificate of incorporation will provide that we shall, to the maximum extent permitted from time to time under the law of the State of Delaware, indemnify and upon request shall advance expenses to any person who is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit, proceeding or claim, whether civil, criminal, administrative or investigative, by reason of the fact that such person is or was or has agreed to be a director or officer of ours or while a director or officer is or was serving at our request as a director, officer, partner, trustee, employee or agent of any corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including

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attorneys' fees and expenses), judgments, fines, penalties and amounts paid in settlement incurred in connection with the investigation, preparation to defend or defense of such action, suit, proceeding or claim; provided, however, that the foregoing shall not require us to indemnify or advance expenses to any person in connection with any action, suit, proceeding or claim initiated by or on behalf of such person or any counterclaim against us initiated by or on behalf of such person. Such indemnification shall not be exclusive of other indemnification rights arising under any by-law, agreement, vote of directors or stockholders or otherwise and shall inure to the benefit of the heirs and legal representatives of such person. Any person seeking indemnification shall be deemed to have met the standard of conduct required for such indemnification unless the contrary shall be established. Any repeal or modification of our amended and restated certificate of incorporation shall not adversely affect any right or protection of a director or officer of ours with respect to any acts or omissions of such director or officer occurring prior to such repeal or modification.

Expenses incurred by such a person in defending a civil or criminal action, suit or proceeding by reason of the fact that such person is or was, or has agreed to become, a director or officer of ours, or is or was serving, or has agreed to serve, at our request, as a director, officer or trustee of, or in a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise, including any employee benefit plan, or by reason of any action alleged to have been taken or omitted in such capacity shall be paid by us in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such person to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified by us as authorized by relevant sections of the Delaware General Corporation Law. Notwithstanding the foregoing, we shall not be required to advance such expenses to a person who is a party to an action, suit or proceeding brought by us and approved by a majority of our board of directors that alleges willful misappropriation of corporate assets by such person, disclosure of confidential information in violation of such person's fiduciary or contractual obligations to us or any other willful and deliberate breach in bad faith of such person's duty to us or our stockholders.

We shall not indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person unless the initiation thereof was approved by our board of directors.

The indemnification rights provided in our amended and restated bylaws, which will be in effect upon the consummation of this offering, shall not be deemed exclusive of any other rights to which those indemnified may be entitled under any by-law, agreement or vote of stockholders or disinterested directors or otherwise, both as to action in their official capacities and as to action in another capacity while holding such office, continue as to such person who has ceased to be a director or officer, and inure to the benefit of the heirs, executors and administrators of such a person.

If the Delaware General Corporation Law is amended to expand further the indemnification permitted to indemnitees, then we shall indemnify such persons to the fullest extent permitted by the Delaware General Corporation Law, as so amended.

We may, to the extent authorized from time to time by our board of directors, grant indemnification rights to other employees or agents of ours or other persons serving us and such rights may be equivalent to, or greater or less than, those set forth in our amended and restated bylaws, which will be in effect upon the consummation of this offering.

Our obligation to provide indemnification under our amended and restated bylaws, which will be in effect upon the consummation of this offering, shall be offset to the extent of any other source of indemnification or any otherwise applicable insurance coverage under a policy maintained by us or any other person.

To assure indemnification under our amended and restated bylaws, which will be in effect upon the consummation of this offering, of all directors, officers, employees or agents who are determined by us or otherwise to be or to have been "fiduciaries" of any employee benefit plan of ours that may exist from time to time, Section 145 of the Delaware General Corporation Law shall, for the purposes of our amended and restated bylaws, which will be in effect upon the consummation of this offering, be interpreted as follows: an "other enterprise" shall be deemed to include such an employee benefit plan, including without limitation, any plan of ours that is governed by the Act of Congress entitled "Employee Retirement Income Security Act of 1974," as amended from time to time; we shall be deemed to have requested a person to serve an employee benefit plan where the performance by such person of his duties to us also imposes duties on, or otherwise involves services by, such person to the plan or participants or beneficiaries of the plan; and excise taxes assessed on a person with respect to an employee benefit plan pursuant to such Act of Congress shall be deemed "fines."

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

Our amended and restated bylaws, which will be in effect upon the consummation of this offering, shall be deemed to be a contract between us and each person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that person is or was, or has agreed to become, a director or officer of ours, or is or was serving, or has agreed to serve, at our request, as a director, officer or trustee of, or in a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise, including any employee benefit plan, or by reason of any action alleged to have been taken or omitted in such capacity, at any time while this by-law is in effect, and any repeal or modification thereof shall not affect any rights or obligations then existing with respect to any state of facts then or theretofore existing or any action, suit or proceeding theretofore or thereafter brought based in whole or in part upon any such state of facts.

The indemnification provision of our amended and restated bylaws, which will be in effect upon the consummation of this offering, does not affect directors' responsibilities under any other laws, such as the federal securities laws or state or federal environmental laws.

We may purchase and maintain insurance on behalf of any person who is or was a director, officer or employee of ours, or is or was serving at our request as a director, officer, employee or agent of another company, partnership, joint venture, trust or other enterprise against liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not we would have the power to indemnify him against liability under the provisions of this section. We currently maintain such insurance.

The right of any person to be indemnified is subject to our right, in lieu of such indemnity, to settle any such claim, action, suit or proceeding at our expense of by the payment of the amount of such settlement and the costs and expenses incurred in connection therewith.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission, 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 of expenses incurred or paid by a director, officer or controlling person in a successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered herewith, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to the court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

#### Item 15. Recent Sales of Unregistered Securities
During the last three years, the Company has not issued unregistered securities to any person, except as described below. None of these transactions involved any underwriters, underwriting discounts or commissions, except as specified below, or any public offering, and, unless otherwise indicated below, the Company believes that each transaction was exempt from the registration requirements of the Securities Act by virtue of Section 4(a)(2) thereof and/or Rule 506 of Regulation D promulgated thereunder, and/or Regulation S promulgated thereunder regarding offshore offers and sales. All recipients had adequate access, though their relationships with the Company, to information about the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On September 13, 2024, Messrs. Peter V. Anania, Scott Knoll, and Christian T. Chandler were issued 512,294, 512,294, and 256,147 shares, respectively, of our common stock at par value in connection with the formation and initial capitalization of our Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On September 1, 2025, we granted 98,000 shares of restricted stock to Michael Lee, our Chief Financial Officer, under our 2025 Plan. Of these shares, 49,000 will vest upon the earlier of the consummation of this offering and September 1, 2028, with the remainder vesting in two equal increments on September 1, 2027, and September 1, 2028.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On October 15, 2025, we granted 24,500 shares of restricted stock to Michael Lee, our Chief Financial Officer, under our 2025 Plan. The restricted stock granted is scheduled to vest in full upon the earlier to occur of the consummation of this offering and October 15, 2028.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On September 1, 2025, we granted 100,000 shares of restricted stock to certain of our employees under our 2025 Plan. The restricted stock granted will vest upon the continued service of each employee upon certain dates or events, including 80,000 shares that will vest upon the consummation of this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On October 15, 2025, we granted 60,000 shares of restricted stock to certain of our employees under our 2025 Plan. The restricted stock granted will vest upon the continued service of each employee upon certain dates or events, including 20,000 shares that will vest six months following the consummation of this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On January 2, 2026, as part of the Reorganization and pursuant to the Contribution Agreement, the holders of the equity interests of Elmet Tech, Microwave Techniques, and A&A were issued an aggregate of 18,841,986 shares of our Class A Common Stock in exchange for all of the outstanding equity interests of Elmet Tech, Microwave Techniques, and A&A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On January 2, 2026, as part of the Reorganization, Peter V. Anania was issued 466 shares of Class B Common Stock pursuant to the Subscription Agreement.

#### Item 16. Exhibits and Financial Statement Schedules
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exhibits.

The following is a list of exhibits filed as a part of this registration statement:

---

| | |
|:---|:---|
|  **Exhibit <br>Number** | **Description of Document** |
|  1.1# | [Form of Underwriting Agreement](ea027036005ex1-1.htm) |
|  3.1\* | [Amended and Restated Certificate of Incorporation of The Elmet Group Co.](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex3-1.htm) |
|  3.2\* | [Bylaws of The Elmet Group Co.](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex3-2.htm) |
| 3.3 | [Form of Second Amended and Restated Certificate of Incorporation of The Elmet Group Co.](ea027036005ex3-3.htm) |
|  3.4\* | [Form of Amended and Restated Bylaws of The Elmet Group Co.](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex3-4.htm) |
| 4.1 | [Form of Broker's Warrant](ea027036005ex4-1.htm) |
| 5.1 | [Opinion of Ellenoff Grossman & Schole LLP](ea027036005ex5-1.htm) |
|  10.1†# | [Subcontract Agreement, dated October 30, 2019, by and between InSitech, Inc., and Elmet Technologies LLC](ea027036005ex10-1.htm) |
|  10.2†# | [Modification to Subcontract Agreement dated October 30, 2019, dated July 21, 2020, by and between InSitech, Inc., and Elmet Technologies LLC](ea027036005ex10-2.htm) |
|  10.3†# | [Modification to Subcontract Agreement dated October 30, 2019, dated July 12, 2021, by and between InSitech, Inc., and Elmet Technologies LLC](ea027036005ex10-3.htm) |
|  10.4†# | [Subcontract Agreement, dated December 22, 2022, by and between InSitech, Inc. and Elmet Technologies LLC](ea027036005ex10-4.htm) |
|  10.5†# | [Modification #1 to Subcontract Agreement dated December 22, 2022, dated November 9, 2023, by and between InSitech, Inc., and Elmet Technologies LLC](ea027036005ex10-5.htm) |
|  10.6†# | [Modification #2 to Subcontract Agreement dated December 22, 2022, dated December 10, 2024, by and between InSitech, Inc., and Elmet Technologies LLC](ea027036005ex10-6.htm) |
|  10.7†# | [Molybdenum Supply Agreement, dated January 1, 2024, by and between Climax Molybdenum Marketing Corporation and Elmet Coldwater LLC](ea027036005ex10-7.htm) |
|  10.8† | [Assignment and amendment Number One to the Molybdenum Supply Agreement, dated January 1, 2025, by and between Climax Molybdenum Marketing Corporation and Elmet Coldwater LLC](ea027036005ex10-8.htm) |
|  10.9† | [Promissory Note, dated September 23, 2024, issued by Elmet Technologies LLC and Elmet Coldwater LLC, to United Federal Credit Union](ea027036005ex10-9.htm) |
|  10.10† | [Business Loan Agreement, dated September 23, 2024, by and among Elmet Technologies LLC, Elmet Coldwater LLC and United Federal Credit Union](ea027036005ex10-10.htm) |
|  10.11† | [Commercial Security Agreement, dated September 23, 2024, by and among Elmet Technologies LLC, Elmet Coldwater LLC and United Federal Credit Union](ea027036005ex10-11.htm) |
|  10.12†# | [Amended and Restated Credit Agreement, dated November 6, 2023, by and between Wells Fargo Bank, Elmet Technologies LLC, H.C. Stark Solutions Coldwater LLC and H.C. Stark Solutions Euclid, LLC](ea027036005ex10-12.htm) |
|  10.13\* | [Secured Promissory Note, dated November 6, 2023, issued by H.C. Starck Solutions Euclid, LLC, H.C. Starck Solutions Coldwater, LLC and Elmet Technologies LLC to Great Falls Property, LLC](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-13.htm) |
|  10.14+\* | [Line of Credit Note, dated October 1, 2025, issued by Anania & Associates to Peter V. Anania](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-14.htm) |

---

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

---

| | |
|:---|:---|
|  **Exhibit <br>Number** | **Description of Document** |
|  10.15\* | [Demand Commercial Line of Credit Agreement, dated April 14, 2025, by and between Auburn Savings Bank FSB, Poly Labs Solar LLC, Peter V. Anania and Elmet Technologies LLC](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-15.htm) |
|  10.16#\* | [Domestic Working Capital Revolving Loan Facility, dated March 2, 2020, by and between Mega Industries LLC, The Provident Bank and Ferrite Microwave Technologies, LLC](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-16.htm) |
|  10.17#\* | [EXIM Working Capital Guarantee Program Revolving Loan Facility, dated March 2, 2020, by and between Mega Industries LLC and The Provident Bank](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-17.htm) |
|  10.18+\* | [Line of Credit Note, dated January 1, 2023, issued by Anania & Associates to Peter V. Anania](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-18.htm) |
|  10.19\* | [Commercial Note, December 26, 2024, issued by Poly Labs Solar LLC, guaranteed by Elmet Technologies, LLC and Peter V. Anania, to Auburn Savings Bank, FSB](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-19.htm) |
|  10.20\* | [2016 Equity Incentive Plan of Elmet Technologies LLC](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-20.htm) |
|  10.21\* | [2025 Equity Incentive Plan of The Elmet Group Co.](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-21.htm) |
|  10.22\* | [Form of 2026 Equity Incentive Plan of The Elmet Group Co.](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-22.htm) |
|  10.23†# | [Supply & Purchase Agreement, dated October 30, 2024, by and between Elmet Technologies LLC and EQ Resources LTD](ea027036005ex10-23.htm) |
|  10.24† | [Side Letter to Supply & Purchase Agreement, dated October 30, 2024, by and between Elmet Technologies LLC and EQ Resources LTD](ea027036005ex10-24.htm) |
|  10.25† | [First Amendment to Supply & Purchase Agreement, dated December 17, 2024, by and between Elmet Technologies LLC and EQ Resources LTD](ea027036005ex10-25.htm) |
|  10.26\* | [Form of Indemnification Agreement](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-26.htm) |
|  10.27+† | [Employment Agreement by and between Anania & Associates and Scott W. Knoll](ea027036005ex10-27.htm) |
|  10.28†# | [Purchase Order, dated August 4, 2025, by and between BlueForge Alliance and Elmet Technologies, LLC](ea027036005ex10-28.htm) |
|  10.29\* | [Collective Bargaining Agreement, dated May 15, 2025, by and between Elmet Technologies LLC, Teamsters Local Union #340 and the International Brotherhood of Teamsters](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-29.htm) |
|  10.30#\* | [Contribution Agreement, dated January 2, 2026, by and among The Elmet Group Co., the members of Elmet Technologies LLC, the members of Microwave Techniques LLC and the stockholders of Anania & Associates](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-30.htm) |
|  10.31\* | [Securities Subscription Agreement, dated January 2, 2026, by and between The Elmet Group Co. and Peter V. Anania](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-31.htm) |
|  10.32\* | [Redemption Agreement, dated January 2, 2026, by and between Anania & Associates and Anania & Associates Investment Company, LLC](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-32.htm) |
|  10.33\* | [Promissory Note, dated January 2, 2026, issued by The Elmet Group Co, to Anania & Associates Investment Co. LLC](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-33.htm) |
|  10.34\* | [Stock Appreciation Rights Conversion Agreement, dated January 15, 2026, by and between The Elmet Group Co. and Derek Fox](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-34.htm) |
|  10.35\* | [Employment Agreement by and between Anania & Associates and Michael Lee](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-35.htm) |
|  10.36\* | [Form of Executive Employment Letter](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-36.htm) |
|  10.37\* | [Form of Executive Employment Letter with Prior Employment Agreement](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-37.htm) |
|  10.38\* | [Form of Executive Severance Policy](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-38.htm) |
|  10.39\* | [Form of Executive Change in Control Severance Policy](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex10-39.htm) |
| 10.40 | [Form of Stock Option Award Agreement](ea027036005ex10-40.htm) |
| 10.41 | [Form of Restricted Stock Unit Award Agreement](ea027036005ex10-41.htm) |
|  14.1\* | [Form of Code of Ethics of The Elmet Group Co.](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex14-1.htm) |
|  19.1\* | [Form of Insider Trading Policies and Procedures](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex19-1.htm) |
|  21.1\* | [List of Subsidiaries](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex21-1.htm) |
| 23.1 | [Consent of RSM US LLP, Independent Registered Public Accounting Firm](ea027036005ex23-1.htm) |
| 23.2 | [Consent of Ellenoff Grossman & Schole LLP (contained in Exhibit 5.1)](ea027036005ex5-1.htm) |
|  24.1\* | [Powers of Attorney (included on signature page of the initial filing of this Registration Statement)](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea0270360-04.htm#T2026) |
|  99.1\* | [Form of Audit Committee Charter](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-1.htm) |
|  99.2\* | [Form of Compensation Committee Charter](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-2.htm) |
|  99.3\* | [Form of Nominating and Corporate Governance Committee Charter](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-3.htm) |
|  99.4\* | [Consent of Director Nominee](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-4.htm) |
|  99.5\* | [Consent of Director Nominee](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-5.htm) |
|  99.6\* | [Consent of Director Nominee](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-6.htm) |

---

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

---

| | |
|:---|:---|
|  **Exhibit <br>Number** | **Description of Document** |
|  99.7\* | [Consent of Director Nominee](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-7.htm) |
|  99.8\* | [Consent of Director Nominee](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-8.htm) |
|  99.9\* | [Consent of Director Nominee](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-9.htm) |
|  99.10\* | [Consent of Director Nominee](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-10.htm) |
|  99.11\* | [Form of Policy Related to Recovery of Erroneously Awarded Compensation](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex99-11.htm) |
|  107\* | [Filing Fee Table](http://www.sec.gov/Archives/edgar/data/2101698/000121390026035970/ea027036004ex-fee.htm) |

---

____________

\* Previously filed.

+ Certain portions of this exhibit (indicated by "[\*]") have been omitted pursuant to Item 601(a)(6) of Regulation S-K.

† Certain portions of this exhibit (indicated by "[\*\*]") have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.

# Certain annexes, schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted attachment to the SEC on a confidential basis upon request.

(b). Financial Statement Schedules.

All financial statement schedules are omitted because the information required to be set forth therein is not applicable or is shown in the consolidated financial statements or notes thereto.

#### Item 17. Undertakings
The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 hereunder, 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 of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of determining any liability under the Securities Act of 1933, 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) For the purpose of determining any liability under the Securities Act of 1933, 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.

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

#### SIGNATURES
Pursuant to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Portland, State of Maine, on April 14, 2026.

---

| | |
|:---|:---|
|  **The Elmet Group Co.** | **The Elmet Group Co.** |
|  By: | */s/ Peter V. Anania* |
|  Name: | Peter V. Anania |
|  Title: | Chief Executive Officer and Chairman |

---

Pursuant to the requirements of the Securities Act, this registration statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
|  **Person** | **Capacity** | **Date** |
|  */s/ Peter V. Anania* | Chief Executive Officer and Chairman | April 14, 2026 |
|  Peter V. Anania | *(Principal Executive Officer)* |  |
|  */s/ Michael Lee* | Chief Financial Officer *(Principal Financial Officer and* | April 14, 2026 |
|  Michael Lee | *Principal Accounting Officer)* |  |
|  */s/ Scott Knoll* | Director | April 14, 2026 |
|  Scott Knoll |  |  |
|  */s/ Christian T. Chandler* | Director | April 14, 2026 |
|  Christian T. Chandler |  |  |

---

## Exhibit 1.1

**Exhibit 1.1**

**THE ELMET GROUP CO.** <br> [●] Shares of Common Stock

(par value $0.001 per share)

**<u>Underwriting Agreement</u>**

[●], 2026

Cantor Fitzgerald & Co.

As Representative of the several Underwriters listed in <u>Schedule A</u> hereto

499 Park Avenue

New York, NY 10022

Ladies and Gentlemen:

The Elmet Group Co., a Delaware corporation (the "**Company**"), proposes to issue and sell to the several underwriters named in <u>Schedule A</u> (the "**Underwriters**") an aggregate of [●] shares of its common stock, par value $0.001 per share (the "**Shares**"). The [●] Shares to be sold by the Company are called the "**Firm Shares**." In addition, the Company has granted to the Underwriters a 30-day option to purchase up to an additional [●] Shares (the "**Over-Allotment Option**"). The additional [●] Shares to be sold by the Company pursuant to the Over-Allotment Option are collectively called the "Over-Allotment **Option Shares**." The Firm Shares and, if and to the extent the Over-Allotment Option is exercised, the Over-Allotment Option Shares, are collectively called the "**Offered Shares**." Cantor Fitzgerald & Co. ("**Cantor**") has agreed to act as representative of the several Underwriters (in such capacity, the "**Representative**") in connection with the offering and sale of the Offered Shares. To the extent there are no additional underwriters listed on <u>Schedule A</u>, the term "Underwriter" as used herein shall mean Cantor, as Underwriter, and the term "Underwriters" shall mean either the singular or the plural, as the context requires.

Cantor has agreed to reserve a portion of the Offered Shares to be purchased by it under this agreement (the "**Agreement**") for sale to the Company's directors, officers, employees and business associates and other parties related to the Company (collectively, "**Participants**"), as set forth in the Prospectus (as defined below) under the heading "Underwriting" (the "**Directed Share Program**"), subject to the terms of this Agreement, the applicable rules, regulations and interpretations of the Financial Industry Regulatory Authority Inc. ("**FINRA**") and all other applicable laws, rules and regulations. The Directed Share Program shall be administered by Needham & Company LLC. The Offered Shares to be sold by Cantor and its affiliates pursuant to the Directed Share Program, at the direction of the Company, are referred to hereinafter as the "**Directed Shares**." Any Directed Shares not orally confirmed for purchase by any Participant by the end of the Business Day (as defined below) on which this Agreement is executed may be offered to the public by the Underwriters as set forth in the Prospectus.

The Company has prepared and filed with the Securities and Exchange Commission (the "**Commission**") a registration statement on Form S-1, as amended (File No. 333-294725). Such registration statement, as amended, including the financial statements, exhibits and schedules thereto, in the form in which it became effective under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (collectively, the "**Securities Act**"), including any information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430A under the Securities Act, is called the "**Registration Statement**." Any registration statement filed by the Company pursuant to Rule 462(b) under the Securities Act in connection with the offer and sale of the Offered Shares is called the "**Rule 462(b) Registration Statement**," and from and after the date and time of filing of any such Rule 462(b) Registration Statement the term "Registration Statement" shall include the Rule 462(b) Registration Statement. The preliminary prospectus dated April [●], 2026 describing the Offered Shares and the offering thereof is called the "**Preliminary Prospectus**," and the Preliminary Prospectus and any other prospectus in preliminary form that describes the Offered Shares and the offering thereof and is used prior to the filing of the Prospectus (as defined below) is called a "**preliminary prospectus**." As used herein, the term "**Prospectus**" shall mean the prospectus in the form first used by the Underwriters to confirm sales of the Offered Shares or in the form first made available to the Underwriters by the Company to meet requests of purchasers pursuant to Rule 173 under the Securities Act. The Company has prepared and filed, in accordance with Section 12 of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively, the "**Exchange Act**"), a registration statement (as amended, the "**Exchange Act Registration Statement**") on Form 8-A (File No. [●]) under the Exchange Act to register, under Section 12(b) of the Exchange Act, the Shares.

As used herein, the "**Applicable Time**" is [●][a.m.][p.m.] (New York time) on [●]. As used herein, "**free writing prospectus**" has the meaning set forth in Rule 405 under the Securities Act, and "**Time of Sale Prospectus**" means the Preliminary Prospectus, as amended or supplemented immediately prior to the Applicable Time, together with the free writing prospectuses, if any, identified on <u>Schedule B</u> hereto and the pricing information set forth on <u>Schedule C</u> hereto. As used herein, **"Road Show"** means a "road show" (as defined in Rule 433 under the Securities Act) relating to the offering of the Offered Shares contemplated hereby that is a "written communication" (as defined in Rule 405 under the Securities Act). As used herein, "**Section 5(d) Written Communication**" means each written communication (within the meaning of Rule 405 under the Securities Act) that is made in reliance on Section 5(d) of the Securities Act by the Company or any person authorized to act on behalf of the Company to one or more potential investors that are qualified institutional buyers ("**QIBs**") and/or institutions that are accredited investors ("**IAIs**"), as such terms are respectively defined in Rule 144A and Rule 501(a) under the Securities Act, to determine whether such investors might have an interest in the offering of the Offered Shares; "**Section 5(d) Oral Communication**" means each oral communication, if any, made in reliance on Section 5(d) of the Securities Act by the Company or any person authorized to act on behalf of the Company made to one or more QIBs and/or one or more IAIs to determine whether such investors might have an interest in the offering of the Offered Shares; "**Marketing Materials**" means any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the Offered Shares, including any Road Show or investor presentations made to investors by the Company (whether in person or electronically); and "**Permitted Section 5(d) Communication**" means the Section 5(d) Written Communication(s) and Marketing Materials listed on <u>Schedule D</u> attached hereto.

All references in this Agreement to (i) the Registration Statement, the Preliminary Prospectus, any preliminary prospectus or the Prospectus, any amendments or supplements to any of the foregoing, or any free writing prospectus, shall include any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System ("**EDGAR**") and (ii) the Prospectus shall be deemed to include any "electronic Prospectus" provided for use in connection with the offering of the Offered Shares as contemplated by Section 3(n).

The Company hereby confirms its agreements with the Underwriters as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Representations and Warranties of the Company</u>. The Company represents and warrants to each Underwriter as of the date of this Agreement, the Applicable Time, the First Closing Date (as hereinafter defined) and each Option Closing Date (as hereinafter defined), if any, 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;**(a)** <u>Compliance with Registration Requirements</u>. The Registration Statement has become effective under the Securities Act. The Company has complied, to the Commission's satisfaction, with all requests of the Commission for additional or supplemental information, if any. No stop order suspending the effectiveness of the Registration Statement is in effect and no proceedings for such purpose have been instituted or are pending or, to the best knowledge of the Company, are contemplated or threatened by the Commission. The Exchange Act Registration Statement has become effective as provided in Section 12 of the Exchange 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;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** <u>Disclosure</u>. Each preliminary prospectus and the Prospectus when filed complied in all material respects with the Securities Act and, if filed by electronic transmission pursuant to EDGAR, was identical (except as may be permitted by Regulation S-T under the Securities Act) to the copy thereof delivered to the Underwriters for use in connection with the offer and sale of the Offered Shares. Each of the Registration Statement and any post-effective amendment thereto, at the time it became or becomes effective and at all subsequent times, complied and will comply in all material respects with the Securities Act and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. As of the Applicable Time, the Time of Sale Prospectus did not, and at the time of each sale of the Offered Shares and at the First Closing Date (as defined in Section 2), the Time of Sale Prospectus, as then amended or supplemented by the Company, if applicable, will not, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Prospectus, as of its date and (as then amended or supplemented) at all subsequent times, did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties set forth in the three immediately preceding sentences do not apply to statements in or omissions from the Registration Statement or any post-effective amendment thereto, or the Prospectus or the Time of Sale Prospectus, or any amendments or supplements thereto, made in reliance upon and in conformity with written information relating to any Underwriter furnished to the Company in writing by the Representative expressly for use therein, it being understood and agreed that the only such information consists of the information described in Section 9(b). There are no contracts or other documents required to be described in the Time of Sale Prospectus or the Prospectus or to be filed as an exhibit to the Registration Statement which have not been described or filed as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Free Writing Prospectuses; Road Show</u>. As of the determination date referenced in Rule 164(h) under the Securities Act, the Company was not, is not or will not be (as applicable) an "ineligible issuer" in connection with the offering of the Offered Shares pursuant to Rules 164, 405 and 433 under the Securities Act. Each free writing prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act. Each free writing prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used or referred to by the Company complies or will comply in all material respects with the requirements of Rule 433 under the Securities Act, including timely filing with the Commission or retention where required and legending, and each such free writing prospectus, as of its issue date and at all subsequent times through the completion of the public offer and sale of the Offered Shares did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement, the Prospectus or any preliminary prospectus and not superseded or modified. Except for the free writing prospectuses, if any, identified in <u>Schedule B</u>, and electronic Road Shows, if any, furnished to the Representative before first use, the Company has not prepared, used or referred to, and will not, without the Representative's prior written consent, prepare, use or refer to, any free writing prospectus. Each Road Show, when considered together with the Time of Sale Prospectus, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Emerging Growth Company</u>. From the time of initial confidential submission of the Registration Statement to the Commission (or, if earlier, the first date on which the Company engaged directly or through any person authorized to act on its behalf in any Section 5(d) Written Communication or Section 5(d) Oral Communication) through the date hereof, the Company has been and is an "emerging growth company," as defined in Section 2(a) of the Securities Act (an "**Emerging Growth 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;**(e)** <u>Testing-the-Waters Materials</u>. The Company (i) has not alone engaged in any Section 5(d) Written Communication or Section 5(d) Oral Communication and (ii) has not authorized anyone other than the Representative to engage in such Permitted Section 5(d) Communications. The Company reconfirms that the Representative has been authorized to act on its behalf in conveying Marketing Materials, Section 5(d) Oral Communications and Section 5(d) Written Communications. The Company has not distributed or approved for distribution any Section 5(d) Written Communications. Any individual Permitted Section 5(d) Communication does not conflict with the information contained in the Registration Statement or the Time of Sale Prospectus, and when taken together with the Time of Sale Prospectus as of the Applicable Time, did not, and as of the First Closing Date and as of each Option Closing Date, as the case may be, will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Company has filed publicly on EDGAR at least 15 calendar days prior to any "road show" (as defined in Rule 433 under the Act), any confidentially submitted registration statement and registration statement amendments relating to the offer and sale of the Offered Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** <u>Distribution of Offering Material By the Company</u>. Prior to the later of (i) the expiration or termination of the Over-Allotment Option to the several Underwriters in ‎Section 2, (ii) the completion of the Underwriters' distribution of the Offered Shares and (iii) the expiration of 25 days after the date of the Prospectus, the Company has not distributed and will not distribute any offering material in connection with the offering and sale of the Offered Shares other than the Registration Statement, the Time of Sale Prospectus, the Prospectus or any free writing prospectus reviewed and consented to by the Representative, and the free writing prospectuses, if any, identified on <u>Schedule B</u> hereto and any Permitted Section 5(d) Communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Financial Information</u>. The consolidated financial statements of the Company included in the Registration Statement, the Time of Sale Prospectus and the Prospectus, together with the related notes and schedules, present fairly, in all material respects, the consolidated financial position of the Company and the Subsidiaries (as defined below) as of the dates indicated and the consolidated results of operations, cash flows and changes in stockholders' equity of the Company for the periods specified and have been prepared in compliance with the requirements of the Securities Act and in conformity with GAAP (as defined below) applied on a consistent basis during the periods involved; there are no financial statements (historical or pro forma) that are required to be included in the Registration Statement, the Time of Sale Prospectus or the Prospectus that are not included as required; the Company and the Subsidiaries do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described in the Registration Statement (excluding the exhibits thereto), the Time of Sale Prospectus and the Prospectus; and all disclosures contained in the Registration Statement, the Time of Sale Prospectus or the Prospectus and the free writing prospectuses, if any, regarding "non-GAAP financial measures" (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable. The financial data set forth in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus under the captions "Prospectus Summary—Summary Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Capitalization" fairly present the information set forth therein on a basis consistent with that of the audited financial statements contained in the Registration Statement, the Time of Sale Prospectus and the Prospectus. The pro forma financial information and the related notes thereto included in the Registration Statement, the Time of Sale Prospectus and the Prospectus have been prepared in accordance with the applicable requirements of the Securities Act, and the assumptions underlying such pro forma financial information are reasonable and are set forth in the Registration Statement, the Time of Sale Prospectus and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Conformity with EDGAR Filing</u>. The Preliminary Prospectus and Final Prospectus delivered to the Underwriters for use in connection with the offer and sale of the Offered Shares pursuant to this Agreement will be identical to the versions of the Preliminary Prospectus and Final Prospectus created to be transmitted to the Commission for filing via EDGAR, except to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Organization</u>. The Company and each of its subsidiaries (as defined in Rule 405 under the Securities Act) (the "**Subsidiaries**") are duly organized, validly existing as a corporation, partnership or limited liability company, as applicable, and in good standing under the Laws (as defined below) of their respective jurisdictions of organization. The Company and each of the Subsidiaries are duly licensed or qualified as a foreign corporation for transaction of business and in good standing under the Laws of each other jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such license or qualification, and have all corporate power and authority necessary to own or hold their respective properties and to conduct their respective businesses as described in the Registration Statement, the Time of Sale Prospectus or the Prospectus, except where the failure to be so qualified or in good standing or have such power or authority could not, individually or in the aggregate, have a material adverse effect on or affect the assets, business, operations, earnings, properties, condition (financial or otherwise), prospects, stockholders' equity or results of operations of the Company and the Subsidiaries taken as a whole, or prevent or materially interfere with the consummation of the transactions contemplated hereby (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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** <u>Subsidiaries</u>. Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus, the Company owns, directly or indirectly, all of the equity interests of the Subsidiaries free and clear of any lien, charge, security interest, encumbrance, right of first refusal or other restriction. All the equity interests of the Subsidiaries are validly issued and are fully paid, nonassessable and free of preemptive and similar rights. No Subsidiary has outstanding any options to purchase, or any rights or warrants to subscribe for, or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares of its capital stock or other securities. No Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such Subsidiary's capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary's property or assets to the Company or any other 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;**(k)** <u>No Violation or Default</u>. Neither the Company nor any of the Subsidiaries is (i) in violation of its charter or by-laws or similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of the Subsidiaries is a party or by which the Company or any of the Subsidiaries is bound or to which any of the property or assets of the Company or any of the Subsidiaries is subject; or (iii) in violation of any Law of any Governmental Authority (as defined below), except, in the case of each of clauses (ii) and (iii) above, for any such violation or default that could not, individually or in the aggregate, have a Material Adverse Effect. To the Company's knowledge, no other party under any material contract or other agreement to which it or any of the Subsidiaries is a party is in default in any respect 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)** <u>No Material Adverse Effect</u>. Subsequent to the respective dates as of which information is given in the Registration Statement, the Time of Sale Prospectus, the Prospectus and the free writing prospectuses, if any, there has not been (i) any Material Adverse Effect or the occurrence of any development that could, individually or in the aggregate, have a Material Adverse Effect, (ii) any transaction which is material to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability, direct or contingent (including any off-balance sheet obligations), incurred by the Company or any Subsidiary, which is material to the Company and the Subsidiaries taken as a whole, (iv) any material change in the capital stock or outstanding long-term indebtedness of the Company or any of the Subsidiaries or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company or any 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(m)** <u>Capitalization</u>. The issued and outstanding shares of capital stock of the Company have been validly issued, are fully paid and nonassessable and are not subject to any preemptive rights, rights of first refusal or similar rights. The Company has an authorized, issued and outstanding capitalization as set forth in the Registration Statement, the Time of Sale Prospectus and the Prospectus as of the dates referred to therein (other than the grant of additional options under the Company's existing equity incentive or stock option plans, or changes in the number of outstanding Shares due to the issuance of shares upon the exercise or conversion of securities exercisable for, or convertible into, Shares outstanding on the date hereof) and such authorized capital stock conforms to the description thereof set forth in the Registration Statement, the Time of Sale Prospectus and the Prospectus. The description of the Shares in the Registration Statement, the Time of Sale Prospectus and the Prospectus is complete and accurate in all material respects. Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus, as of the date referred to therein, the Company does not have outstanding any options to purchase, or any rights or warrants to subscribe for, or any securities or obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares of capital stock or other 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;**(n)** <u>Authorization; Enforceability</u>. The Company has full legal right, power and authority to enter into this Agreement and perform the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and binding agreement of the Company enforceable in accordance with its terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors' rights generally and by general equitable 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(o)** <u>Authorization of the Offered Shares</u>. The Offered Shares have been duly authorized for issuance and sale pursuant to this Agreement and, when issued and delivered by the Company against payment therefor pursuant to this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of any pledge, lien, encumbrance, security interest or other claim, including any statutory or contractual preemptive rights, resale rights, rights of first refusal or other similar rights, and will be registered pursuant to Section 12 of the Exchange Act. The Offered Shares, when issued, will conform to the description thereof set forth in the Registration Statement, the Time of Sale Prospectus and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>No Consents Required</u>. No consent, approval, authorization, order, registration or qualification of or with any Governmental Authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance and sale by the Company of the Offered Shares, except for such consents, approvals, authorizations, orders and registrations or qualifications as may be required under applicable state securities Laws or Laws of FINRA or the Capital Market tier of The Nasdaq Stock Market LLC ("**Nasdaq**") in connection with the sale of the Offered Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(q)** <u>No Preferential Rights</u>. Except as expressly disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus: (i) no person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act (each, a "**Person**"), has the right, contractual or otherwise, to cause the Company to issue or sell to such Person any Shares or shares of any other capital stock or other securities of the Company, other than pursuant to outstanding stock appreciation rights and shares of restricted stock subject to vesting criteria held by certain of the Company's non-executive employees as described in the Registration Statement, the Time of Sale Prospectus and the Prospectus; (ii) no Person has any preemptive rights, resale rights, rights of first refusal, rights of co-sale, or any other rights (whether pursuant to a "poison pill" provision or otherwise) to purchase any Shares or shares of any other capital stock or other securities of the Company; (iii) no Person has the right to act as an underwriter or financial advisor to the Company in connection with the offer and sale of the Shares; and (iv) no Person has the right, contractual or otherwise, to require the Company to register under the Securities Act the offer and sale of any Shares or shares of any other capital stock or other securities of the Company, or to include any such shares or other securities in Registration Statement or the offering contemplated thereby, whether as a result of the filing or effectiveness of the Registration Statement or the sale of the Offered Shares as contemplated thereby 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(r)** <u>Independent Public Accounting Firm</u>. RSM US, LLP (the "**Accountant**"), whose report on the consolidated financial statements of the Company is filed with the Commission as part of the Registration Statement, the Time of Sale Prospectus and the Prospectus, are and, during the periods covered by their report, were an independent registered public accounting firm within the meaning of the Securities Act and the Public Company Accounting Oversight Board (United States). To the best of the Company's knowledge, the Accountant is not in violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (the "**Sarbanes-Oxley Act**") with respect to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(s)** <u>Enforceability of Agreements</u>. To the best of the Company's knowledge and belief, all agreements between the Company or one of its Subsidiaries and third parties referenced in the Prospectus are legal, valid and binding obligations of the Company or such Subsidiary enforceable in accordance with their respective terms, except to the extent that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors' rights generally and by general equitable principles and (ii) the indemnification provisions of certain agreements may be limited by federal or state securities Laws or public policy considerations in respect 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;**(t)** <u>No Litigation</u>. There are no actions, suits or proceedings by or before any Governmental Authority pending, nor any audits or, to the Company's knowledge after due inquiry, any investigations, by or before any Governmental Authority, to which the Company or a Subsidiary is a party or to which any property of the Company or any of the Subsidiaries is the subject that could, individually or in the aggregate, have a Material Adverse Effect and, to the Company's knowledge, no such actions, suits, proceedings, audits or investigations are threatened or contemplated by any Governmental Authority or threatened by others; and (i) there are no current or pending audits, actions, suits, proceedings or investigations by or before any Governmental Authority that are required under the Securities Act to be described in the Registration Statement, the Time of Sale Prospectus or the Prospectus that are not so described; and (ii) there are no contracts or other documents that are required under the Securities Act to be filed as exhibits to the Registration Statement that are not so filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Consents and Permits</u>. Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus or as would not reasonably be expected to have a Material Adverse Effect, the Company and each Subsidiary possess such valid and current certificates, authorizations or permits issued by the appropriate state, federal or foreign regulatory agencies or bodies necessary to conduct their respective businesses, and neither the Company nor any Subsidiary has received, or has any reason to believe that it will receive, any written notice of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate, authorization or permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Intellectual Property</u>. The Company and the Subsidiaries own, possess, license or have other rights to use all foreign and domestic patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain names, know-how and other intellectual property (collectively, the "**Intellectual Property**") necessary for the conduct of their respective businesses as now conducted except to the extent that the failure to own, possess, license or otherwise hold adequate rights to use such Intellectual Property could not, individually or in the aggregate, have a Material Adverse Effect. To the best of the Company's knowledge and except, in the case of any of clauses (i)-(vii) below, for any such infringement by third parties or any such pending or threatened suit, action, proceeding or claim as could not, individually or in the aggregate, have a Material Adverse Effect: (i) there are no rights of third parties to any such Intellectual Property owned by the Company and the Subsidiaries; (ii) there is no infringement by third parties of any such Intellectual Property; (iii) there is no pending or, threatened action, suit, proceeding or claim by others challenging the Company's and the Subsidiaries' rights in or to any such Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or claim; (iv) there is no pending or threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property; (v) there is no pending or threatened action, suit, proceeding or claim by others that the Company or the Subsidiaries infringe or otherwise violate any patent, trademark, copyright, trade secret or other proprietary rights of others; (vi) there is no third-party U.S. patent or published U.S. patent application which contains claims for which an Interference Proceeding (as defined in 35 U.S.C. § 135) has been commenced against any patent or patent application described in the Registration Statement, the Time of Sale Prospectus or the Prospectus as being owned by or licensed to the Company; and (vii) the Company and the Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual Property has been licensed to the Company or such Subsidiary, and all such agreements are 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(w)** <u>Cybersecurity; Data Protection</u>. Except as described in the Registration Statement, the Time of Sale Prospectus and the Prospectus, the Company and the Subsidiaries' information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, "**IT Systems**") are: (i) adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company and the Subsidiaries as currently conducted: and (ii) free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company and the Subsidiaries have implemented and maintained commercially reasonable controls, policies, procedures, and safeguards designed to maintain and protect (i) their material confidential information (including "**Personal Data**," as such term is defined under applicable Laws) in their possession or control and (ii) the integrity, operation, redundancy and security of all IT Systems used in connection with their businesses. Except as described in the Registration Statement, the Time of Sale Prospectus and the Prospectus, or that have been remedied without material cost or liability or the duty to notify any other person, there have been no breaches, violations, outages or unauthorized uses of or accesses to IT Systems or Personal Data in the Company's and the Subsidiaries' possession or control. The Company and the Subsidiaries are presently in material compliance with all applicable Laws, internal policies and contractual obligations governing the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>No Material Defaults</u>. Neither the Company nor any of the Subsidiaries has defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, and neither the Company nor any of the Subsidiaries has failed to pay any dividend or sinking fund installment on preferred stock, which defaults or failures could, individually or in the aggregate, have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(y)** <u>Certain Market Activities</u>. Neither the Company nor any of the Subsidiaries has taken, directly or indirectly, any action designed to or that might cause or result in stabilization or manipulation of the price of the Shares or of any "reference security" (as defined in Rule 100 of Regulation M under the Exchange Act ("**Regulation M**")) with respect to the Shares, whether to facilitate the sale or resale of the Offered Shares or otherwise, and has taken no action which would directly or indirectly violate Regulation 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(z)** <u>Broker/Dealer Relationships</u>. Neither the Company nor any of the Subsidiaries (i) is required to register as a "broker" or "dealer" in accordance with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls or is a "person associated with a member" or "associated person of a member" (within the meaning set forth in the FINRA Manual).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(aa)** <u>No Reliance</u>. The Company has not relied upon the Underwriters or legal counsel for the Underwriters for any legal, tax or accounting advice in connection with the offering and sale of the Offered Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(bb)** <u>Taxes</u>. The Company and each of the Subsidiaries have filed all U.S. federal, state, local and foreign tax returns which have been required to be filed and paid all taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not being contested in good faith, except where the failure to so file or pay could not, individually or in the aggregate, have a Material Adverse Effect. Except as otherwise disclosed in or contemplated by the Registration Statement, the Time of Sale Prospectus and the Prospectus, no tax deficiency has been determined adversely to the Company or any of the Subsidiaries which has had, or could have, individually or in the aggregate, a Material Adverse Effect. The Company has no knowledge of any federal, state or other governmental tax deficiency, penalty or assessment which has been or might be asserted or threatened against it which could, individually or in the aggregate, have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(cc)** <u>Title to Real and Personal Property</u>. Except as described in the Registration Statement, the Time of Sale Prospectus and the Prospectus, the Company and the Subsidiaries have good and marketable title in fee simple to all items of real property owned by them, and good and valid title to all personal property described in the Registration Statement, the Time of Sale Prospectus or the Prospectus as being owned by them that are material to the businesses of the Company or such Subsidiary, in each case free and clear of all liens, encumbrances and claims, except those matters that (i) do not materially interfere with the use made and proposed to be made of such property by the Company and any of the Subsidiaries or (ii) could not, individually or in the aggregate, have a Material Adverse Effect. Any real or personal property described in the Registration Statement, the Time of Sale Prospectus or the Prospectus as being leased by the Company or any of the Subsidiaries is held by them under valid, existing and enforceable leases, except those that (A) do not materially interfere with the use made or proposed to be made of such property by the Company or any of the Subsidiaries or (B) could not, individually or in the aggregate, have a Material Adverse Effect. Each of the properties of the Company and the Subsidiaries complies with all applicable Laws (including building and zoning Laws and Laws relating to access to such properties) except for such failures to comply that could not, individually or in the aggregate, have a Material Adverse Effect. None of the Company or the Subsidiaries has received from any Governmental Authorities any notice of any condemnation of, or zoning change affecting, the properties of the Company and the Subsidiaries, and the Company knows of no such condemnation or zoning change which is threatened, except for such that could not, individually or in the aggregate, have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(dd)** <u>Environmental Laws</u>. The Company and the Subsidiaries (i) are in compliance with any and all applicable federal, state, local and foreign Laws relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, "**Environmental Laws**"); (ii) have received and are in compliance with all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses as described in the Registration Statement, the Time of Sale Prospectus or the Prospectus; and (iii) have not received notice of any actual or potential liability for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above, for any such failure to comply or failure to receive required permits, licenses, other approvals or liability as could not, individually or in the aggregate, have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ee)** <u>Disclosure Controls</u>. The Company and each of the Subsidiaries maintain systems of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as expressly described in the Registration Statement, the Time of Sale Prospectus and the Prospectus, the Company's internal control over financial reporting is effective, and the Company is not aware of any material weaknesses in its internal control over financial reporting. Since the date of the latest audited financial statements of the Company included in the Time of Sale Prospectus, there has been no change in the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company and each of the Subsidiaries is made known to the certifying officers by others within those entities. Since the date of the latest audited financial statements of the Company included in the Time of Sale Prospectus, there have been no significant changes in the Company's internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Securities Act) or, to the Company's knowledge, in other factors that could significantly affect the Company's internal controls.

**(ff**) <u>Accounting Controls</u>. Except as described in the Registration Statement, the Time of Sale Prospectus and the Prospectus, the Company and the Subsidiaries maintain systems of "internal control over financial reporting" (as defined in Rule 13a-15(f) of the Exchange Act) that comply in all material respects with the requirements of the Exchange Act and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons performing similar functions, and designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. The Company and the Subsidiaries maintain internal accounting controls designed, and which the Company believes sufficient, to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as disclosed in the Registration Statement, the Time of Sale Prospectus and the Prospectus, there are no material weaknesses in the Company's internal controls. The Accountant and the Board of Directors of the Company have been advised in writing of: (i) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which have adversely affected or are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(gg)** <u>Sarbanes-Oxley</u>. There is and has been no failure on the part of the Company or any of the Company's directors or officers, in their capacities as such, to comply in all material respects with any applicable provisions of the Sarbanes-Oxley Act 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(hh)** <u>Brokers</u>. Neither the Company nor any of the Subsidiaries has incurred any liability for any finder's fees, brokerage commissions or similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to or pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** <u>Labor Disputes</u>. No labor disturbance by or dispute with employees of the Company or any of the Subsidiaries exists or, to the knowledge of the Company, is threatened which could, individually or in the aggregate, have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(jj)** <u>Investment Company Act</u>. Neither the Company nor any of the Subsidiaries is, or will be, either after receipt of payment for the Offered Shares or after the application of the proceeds therefrom as described under "Use of Proceeds" in the Registration Statement, the Time of Sale Prospectus or the Prospectus, required to register as an "investment company" or an entity "controlled" by an "investment company," as such terms are defined in the Investment Company Act of 1940, as amended (the **"Investment Company 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;&nbsp;&nbsp;&nbsp;&nbsp;**(kk)** <u>Operations</u>. The operations of the Company and the Subsidiaries are and have been conducted at all times in compliance with applicable money laundering, financial record keeping and reporting requirements and counter-terrorism financing Laws, rules and regulations, including but not limited to the Currency and Foreign Transactions Reporting Act of 1970, as amended by the USA PATRIOT Act of 2001, and the rules and regulations promulgated thereunder, and the anti-money laundering Laws and counter-terrorism financing Laws, rules and regulations of all jurisdictions to which the Company or the Subsidiaries are subject, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority (collectively, the "**Money Laundering Laws**"); and no investigation, action, suit or proceeding by or before any Governmental Authority involving the Company or any of the Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ll)** <u>Off-Balance Sheet Arrangements</u>. There are no transactions, arrangements or other relationships between and/or among the Company, on the one hand, and/or any of its affiliates and any unconsolidated entity, on the other hand, including any structured finance, special purpose or limited purpose entity (each, an "**Off-Balance Sheet Transaction**") that could reasonably be expected to affect materially the Company's liquidity or the availability of or requirements for its capital resources, including those Off-Balance Sheet Transactions described in the Commission's Statement about Management's Discussion and Analysis of Financial Condition and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be described in the Prospectus which have not been described as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(mm)** <u>ERISA</u>. Each material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("**ERISA**"), that is maintained, administered or contributed to by the Company or any of its affiliates for employees or former employees of the Company and any of the Subsidiaries has been maintained in material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including ERISA and the Internal Revenue Code of 1986, as amended (the "**Code**"); no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in a material liability to the Company with respect to any such plan, excluding transactions effected pursuant to a statutory or administrative exemption; and for each such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no "accumulated funding deficiency" as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present value of all benefits accrued under such plan determined using reasonable actuarial assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(nn)** <u>Forward-Looking Statements</u>. Each financial or operational projection or other "forward-looking statement" (as defined by Section 27A of the Securities Act or Section 21E of the Exchange Act) contained in the Registration Statement, the Time of Sale Prospectus or the Prospectus (i) was so included by the Company in good faith and with reasonable basis after due consideration by the Company of the underlying assumptions, estimates and other applicable facts and circumstances and (ii) is accompanied by meaningful cautionary statements identifying those factors that could cause actual results to differ materially from those in such forward-looking statement. No such statement was made with the knowledge of an executive officer or director of the Company that it was false or misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(oo)** <u>Margin Rules</u>. Neither the issuance, sale and delivery of the Offered Shares nor the application of the proceeds thereof by the Company as described in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(pp)** <u>Insurance</u>. The Company and each of the Subsidiaries carry, or are covered by, insurance covering their respective properties, operations, personnel and businesses, including business interruption insurance, in such amounts and covering such risks as the Company and each of the Subsidiaries reasonably believe are adequate for the conduct of their business and the maintenance of their properties and as is customary for companies engaged in similar businesses in similar industries; and neither the Company nor any of the Subsidiaries has (i) received notice from any insurer or agent of such insurer that any material capital improvements or other expenditures are required or necessary to be made in order to continue such insurance or (ii) any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its 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;**(qq)** <u>Government Contracts and Government Bids</u>. The Company and each of its Subsidiaries has complied in all material respects with: (i) all terms and conditions of each Government Contract and Government Bid; (ii) all legal requirements applicable to each such Government Contract and Government Bid; and (iii) all representations, certifications and disclosure statements made by or submitted on behalf of the Company or any Subsidiary with respect to each Government Contract and Government Bid, and all such representations, certifications and disclosure statements were current, accurate, and complete in all material respects as of the date of submission. Neither the Company nor any of the Subsidiaries has identified or received written or, to the Company's knowledge, oral notice of any actual or alleged violation or breach of any statute, regulation, representation, certification, disclosure obligation, or term or condition of a Government Contract or Government Bid that would reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect. Neither the Company nor any Subsidiary has received written or, to the Company's knowledge, oral notice of termination for cause or default, cure notice, show cause notice, or stop work order relating to any Government Contract, other than with respect to any ordinary course of business termination for convenience due to a change in scope of a Government Contract. No Government Contract has been terminated for default or cause and, to the best of the Company's knowledge, no facts or circumstances exist upon which a termination for convenience, default, or cause may be based in the future. Neither the Company nor any Subsidiary has received written or, to the best of the Company's knowledge, oral notice of any pending or threatened investigation, prosecution, or administrative proceeding or audit related to any Government Contract or Government Bid. None of the Company, any Subsidiary, any of the Company's or any Subsidiary's owners, officers or directors, or, to the best of the Company's knowledge, any of its subcontractors, employees, consultants, agents, or representatives, is currently debarred or suspended from doing business with any Governmental Authority, or proposed for debarment or suspension, or otherwise ineligible to hold, perform, or bid on any Government Contract. To the Company's knowledge, there exist no facts or circumstances that would be reasonably likely to result in a suspension, debarment proceeding or ineligibility on the part of the Company, any Subsidiary, or any of the Company's or any Subsidiary's owners, officers, or directors. Neither the Company nor any Subsidiary has been determined to be ineligible for award or received a negative determination of responsibility or an adverse or negative past performance evaluation or rating with respect to any Government Contract or Government Bid, and there exist (i) no outstanding claims, requests for equitable adjustment, or disputes against the Company or a Subsidiary by a Governmental Authority, prime contractor, subcontractor, or whistleblower arising under any Government Contract; (ii) to the best of the Company's knowledge, no facts over which a claim, request for equitable adjustment, or dispute would reasonably be expected to arise in the future; and (iii) no bid protests relating to a Government Contract or Government Bid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(rr)** <u>Export Control and Import Compliance</u>. The Company, the Subsidiaries, its or their directors and officers and, to the best of the Company's knowledge, employees, are and have been in compliance, in all material respects, with (i) all applicable trade, export control, import and antiboycott laws and regulations imposed, administered or enforced by the U.S. government, including: (a) laws, regulations and policies enforced by U.S. Customs and Border Protection; (b) the Arms Export Control Act (22 U.S.C. § 1778) and the International Traffic in Arms Regulations (22 C.F.R. Part 120 et seq.) administered by the U.S. Department of State's Directorate of Defense Trade Controls; (c) the Export Administration Regulations (15 C.F.R. Part 730 et seq.) administered by the U.S. Department of Commerce's Bureau of Industry and Security; (d) the U.S. anti-boycott regulations administered by the U.S. Department of Commerce's Bureau of Industry and Security and the IRS; (e) all laws concerning export and import reporting administered by the U.S. Census Bureau; (f) the International Emergency Economic Powers Act (50 U.S.C. §§ 1701–1706); the Foreign Trade Regulations (15 C.F.R. Part 30); and the Export Control Reform Act of 2018 (50 U.S.C. §§ 4801-4861), and (ii) the antiboycott Laws and regulations imposed, administered or enforced by any other country, except to the extent inconsistent with U.S. law (collectively, the "**Export Control and Import Laws**"). The Company and the Subsidiaries have obtained all registrations, approvals, license exceptions, and licenses necessary for exporting, importing, conducting their operations, and providing their products and services in accordance with all Export Control and Import Laws (collectively, the "**Export Approvals**"), and have complied with the terms of all Export Approvals 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;**(ss)** <u>No Improper Practices</u>. Neither the Company nor any of the Subsidiaries, nor any director or officer, nor, to the best of the Company's knowledge, any employee of the Company or any Subsidiary or any other agent, affiliate or other person acting on behalf of the Company or any Subsidiary, has undertaken or is aware of any of the following: (i) in the past five years and in connection with, or to further, the Company's business, made any unlawful contributions to any candidate for any political office (or failed fully to disclose any contribution in violation of applicable Law) or made any contribution or other payment to any official of, or candidate for, any federal, state, municipal, or foreign office or other person charged with similar public or quasi-public duty in violation of any applicable Law or of the character required to be disclosed in the Prospectus; (ii) any relationship, direct or indirect, that exists between or among the Company or any Subsidiary or any affiliate of any of them, on the one hand, and the directors, officers and stockholders of the Company or any Subsidiary, on the other hand, that is required by the Securities Act to be described in the Registration Statement, the Time of Sale Prospectus or the Prospectus that is not so described; (iii) any relationship, direct or indirect, that exists between or among the Company or any Subsidiary or any affiliate of them, on the one hand, and the directors, officers, or stockholders of the Company or any Subsidiary, on the other hand, that is required by the rules of FINRA to be described in the Registration Statement, the Time of Sale Prospectus or the Prospectus that is not so described; (iv) that there are any outstanding loans or advances or guarantees of indebtedness by the Company or any Subsidiary to or for the benefit of any of their respective officers or directors or any of the members of the families of any of them; (v) that the Company has not offered, or caused any placement agent to offer, Shares to any person with the intent to influence unlawfully (A) a customer or supplier of the Company or any Subsidiary to alter the customer's or supplier's level or type of business with the Company or any Subsidiary or (B) a trade journalist or publication to write or publish favorable information about the Company or any Subsidiary or any of their respective products or services; and (vi) neither the Company nor any Subsidiary nor any director, officer or employee of the Company or any Subsidiary or any agent, affiliate or other person acting on behalf of the Company or any Subsidiary has (A) violated or is in violation of any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Official in International Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom, or any other applicable anti-bribery or anti-corruption Law (collectively, "**Anti-Corruption Laws**"), (B) promised, offered, provided, attempted to provide or authorized the provision of anything of value, directly or indirectly, to any person for the purpose of obtaining or retaining business, influencing any act or decision of the recipient or securing any improper advantage, or (C) made any payment of funds of the Company or any Subsidiary or received or retained any funds in violation of any Anti-Corruption Laws. The Company and the Subsidiaries have instituted, maintain and enforce, and will continue to maintain and enforce, policies and procedures designed to promote and ensure compliance with all applicable anti-bribery and Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(tt)** <u>No Conflicts</u>. Neither the execution of this Agreement, nor the issuance, offering or sale of the Offered Shares as contemplated by the Registration Statement, the Time of Sale Prospectus or the Prospectus, nor the consummation of any of the transactions contemplated herein and therein, nor the compliance by the Company with the terms and provisions hereof and thereof will conflict with, or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute a default under, or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any Subsidiary pursuant to the terms of any contract or other agreement to which the Company or any Subsidiary may be bound or to which any of the property or assets of the Company or any Subsidiary is subject, except (i) such conflicts, breaches or defaults as may have been waived and (ii) such conflicts, breaches and defaults that could not, individually or in the aggregate, have a Material Adverse Effect; nor will such action result in (x) any violation of the provisions of the organizational or governing documents of the Company or any Subsidiary, or (y) any material violation of the provisions of any statute or any order, rule or regulation applicable to the Company or any Subsidiary or of any Governmental Authority having jurisdiction over the Company or any 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(uu)** <u>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;&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) Neither the Company nor any of its Subsidiaries, nor any director, officer, employee, agent, affiliate or representative of the Company or any of the Subsidiaries, is an individual, or entity (in this paragraph (vv), "**Person**") that is, or is owned or controlled by a Person that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 subject or target of any sanctions or trade embargoes administered or enforced by the U.S. government (including, without limitation, the U.S. Department of Treasury's Office of Foreign Assets Control ("**OFAC**") or the U.S. Department of State and including, without limitation, the designation as a "specially designated national" or "blocked person"), the United Nations Security Council, the European Union, any European Union member state or the United Kingdom (collectively, "**Sanctions**"), nor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) operating from, located, organized or resident in a country or territory that is the subject or target of Sanctions that broadly prohibit dealings with that country or territory (including, as of the date of this Agreement, Cuba, Iran, North Korea, Russia, and the Crimea, Donetsk and Luhansk Regions of the Ukraine) (the "**Sanctioned Countries**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Since [●], 2021, neither the Company nor any Subsidiary has engaged in, and none of them are now engaging in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject or target of Sanctions or is or was a Sanctioned Country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vv)** <u>Compliance with Laws</u>. To the best of the Company's knowledge, the Company and each of the Subsidiaries are in compliance with all applicable Laws (including all environmental Laws), except where failure to be so in compliance would not reasonably be expected, individually or in the aggregate, to cause a Material Adverse Effect, in the jurisdictions in which they carry on business; neither the Company nor any Subsidiary has received a notice of non-compliance, and the Company does not know of, or have reasonable grounds to know of, any facts that could give rise to a notice of non-compliance with any such Laws, and is not aware of any pending change or contemplated change to any applicable Law or governmental positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ww)** <u>Statistical and Market-Related Data</u>. All statistical, demographic and market-related data included in the Registration Statement, the Time of Sale Prospectus or the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate or represent the Company's good faith estimates that are made on the basis of data derived from such 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(xx)** <u>Stock Exchange Listing</u>. The Shares are registered pursuant to Section 12(b) of the Exchange Act and have been approved for listing on Nasdaq, subject only to official notice of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(yy)** <u>Related-Party Transactions</u>. There are no business relationships or related-party transactions involving the Company or any of the Subsidiaries or any other person required to be described in the Registration Statement, the Time of Sale Prospectus or the Prospectus that have not been described as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(zz)** <u>FINRA Matters</u>. All of the information provided to the Underwriters or to counsel for the Underwriters related to FINRA matters by the Company, its counsel, its officers and directors and the holders of any securities (debt or equity) or options to acquire any securities of the Company in connection with the offering of the Offered Shares is true, complete and correct and any letters, filings or other supplemental information provided by such persons to FINRA is true, complete and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(aaa)** <u>Parties to Lock-Up Agreements</u>. The Company has furnished to the Underwriters a letter agreement in the form attached hereto as <u>Exhibit A</u> (the "**Lock-up Agreement**") from the holders of all of the Company's outstanding capital stock and each of the persons listed on <u>Exhibit B</u>. Such <u>Exhibit B</u> lists under an appropriate caption the directors and officers of the Company. If any additional persons shall become directors or officers of the Company prior to the end of the Company Lock-up Period (as defined below), the Company shall cause each such person, prior to or contemporaneously with their appointment or election as a director or officer of the Company, to execute and deliver to the Underwriters a Lock-up 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;**(bbb)** <u>FINCEN Beneficial Ownership Certification</u>. As required by the Financial Crimes Enforcement Network within the U.S. Department of the Treasury, the Company has delivered to the Representative, on or prior to the date of execution of this Agreement, such beneficial ownership certifications and information as the Representative may have requested, together with copies of identifying documentation, and the Company undertakes to provide such additional information and supporting documentation as the Representative may reasonably request in connection with the verification of the foregoing certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ccc)** <u>Directed Share Program</u>. The Registration Statement, the Prospectus, the Time of Sale Prospectus and any preliminary prospectus comply, and any amendments or supplements thereto will comply, with any applicable laws or regulations of foreign jurisdictions in which the Prospectus, the Time of Sale Prospectus or any preliminary prospectus, as amended or supplemented, if applicable, are distributed in connection with the Directed Share Program. No consent, approval, authorization or order of, or qualification with, any governmental body or agency, other than those obtained, is required in connection with the offering of the Directed Shares in any jurisdiction where the Directed Shares are being offered. The Company has not offered, or caused the Underwriters to offer, Shares to any person pursuant to the Directed Share Program with the specific intent to unlawfully influence (i) a customer or supplier of the Company to alter the customer's or supplier's level or type of business with the Company, or (ii) a trade journalist or publication to write or publish favorable information about the Company or its products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ddd)** <u>No Ratings</u>. There are (and prior to the Closing Date, will be) no debt securities, convertible securities or preferred stock issued or guaranteed by the Company or any of its subsidiaries that are rated by a "nationally recognized statistical rating organization", as such term is defined in Section 3(a)(62) under the Exchange 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;&nbsp;&nbsp;&nbsp;&nbsp;**(eee)** <u>No Rights to Purchase Preferred Stock</u>. The issuance and sale of the Shares as contemplated hereby will not cause any holder of any shares of capital stock, securities convertible into or exchangeable or exercisable for capital stock or options, warrants or other rights to purchase capital stock or any other securities of the Company to have any right to acquire any shares of preferred stock of the Company.

**(fff**) <u>No Contract Terminations</u>. Neither the Company nor any of the Subsidiaries has sent or received any communication regarding termination of, or intent not to renew, any of the contracts or agreements referred to or described in the Registration Statement, the Time of Sale Prospectus or the Prospectus, and no such termination or non-renewal has been threatened by the Company or any of its subsidiaries or, to the Company's knowledge, any other party to any such contract or agreement, which threat of termination or non-renewal has not been rescinded as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ggg)** <u>Dividend Restrictions</u>. None of the Subsidiaries is prohibited or restricted, directly or indirectly, from paying dividends to the Company, or from making any other distribution with respect to such Subsidiary's equity securities or from repaying to the Company or any other Subsidiary of the Company any amounts that may from time to time become due under any loans or advances to such Subsidiary from the Company or from transferring any property or assets to the Company or to any other Subsidiary.

Any certificate signed by any officer of the Company or any of the Subsidiaries and delivered to any Underwriter or to counsel for the Underwriters in connection with the offering, or the purchase and sale, of the Offered Shares shall be deemed a representation and warranty by the Company to each Underwriter as to the matters covered thereby.

The Company has a reasonable basis for making each of the representations set forth in this Section 1. The Company acknowledges that the Underwriters and, for purposes of the opinions to be delivered pursuant to Section 6, counsel to the Company and counsel to the Underwriters, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Purchase, Sale and Delivery of the Offered Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** <u>The Firm Shares</u>. Upon the terms herein set forth, the Company agrees to issue and sell to the several Underwriters an aggregate of [●] Firm Shares. On the basis of the representations, warranties and agreements herein contained, and upon the terms but subject to the conditions herein set forth, the Underwriters agree, severally and not jointly, to purchase from the Company the respective number of Firm Shares set forth opposite their names on <u>Schedule A</u>. The purchase price per Firm Share to be paid by the several Underwriters to the Company shall be $[●] per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** <u>The First Closing Date</u>. Settlement of the Firm Shares to be purchased by the Underwriters and payment therefor shall be made at the offices of Thompson Coburn LLP, 55 East Monroe Street, Chicago, IL 60603 (or such other place as may be agreed to by the Company and the Representative) at [●] a.m. Eastern time, on [●], or such other time and date not later than [●] p.m. Eastern time, on [●] as the Representative shall designate by notice to the Company (the time and date of such closing are called the "**First Closing Date**"). The Company hereby acknowledges that circumstances under which the Representative may provide notice to postpone the First Closing Date as originally scheduled include, but are not limited to, any determination by the Company or the Representative to recirculate to the public copies of an amended or supplemented Prospectus or a delay as contemplated by the provisions of Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>The Over-Allotment Option Shares; Option Closing Date</u>. In addition, on the basis of the representations, warranties and agreements herein contained, and upon the terms but subject to the conditions herein set forth, the Company hereby grants the Over-Allotment Option to the several Underwriters to purchase, severally and not jointly, up to an aggregate of [●]Over-Allotment Option Shares from the Company at the purchase price per share to be paid by the Underwriters for the Firm Shares. The Over-Allotment Option granted hereunder may be exercised at any time and from time to time in whole or in part upon notice by the Representative to the Company, which notice may be given at any time within 30 days from the date of this Agreement. Such notice shall set forth (i) the aggregate number of Over-Allotment Option Shares as to which the Underwriters are exercising the Over-Allotment Option and (ii) the time, date and place at which the Over-Allotment Option Shares will be delivered (which time and date may be simultaneous with, but not earlier than, the First Closing Date; and in the event that such time and date are simultaneous with the First Closing Date, the term "**First Closing Date**" shall refer to the time and date of delivery of the Firm Shares and such Over-Allotment Option Shares). Any such time and date of delivery, if subsequent to the First Closing Date, is called an "**Option Closing Date**," shall be determined by the Representative, and shall not be earlier than one or later than five full Business Days after delivery of such notice of exercise. If any Over-Allotment Option Shares are to be purchased, (A) each Underwriter agrees, severally and not jointly, to purchase the number of Over-Allotment Option Shares (subject to such adjustments to eliminate fractional shares as the Representative may determine) that bears the same proportion to the total number of Over-Allotment Option Shares to be purchased as the number of Firm Shares set forth on <u>Schedule A</u> opposite the name of such Underwriter bears to the total number of Firm Shares and (B) the Company agrees to sell the number of Over-Allotment Option Shares set forth in the paragraph "Introductory" of this Agreement (subject to such adjustments to eliminate fractional shares as the Representative may determine). The Representative may cancel the Over-Allotment Option at any time prior to its expiration by giving written notice of such cancellation to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** <u>Public Offering of the Offered Shares</u>. The Representative hereby advises the Company that the Underwriters intend to offer for sale to the public, initially on the terms set forth in the Registration Statement, the Time of Sale Prospectus and the Prospectus, their respective portions of the Offered Shares as soon after this Agreement has been executed as the Representative, in its sole judgment, has determined is advisable and practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** <u>Payment for the Offered Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Payment for the Offered Shares shall be made at the First Closing Date (and, if applicable, payment for the Over-Allotment Option Shares shall be made at the First Closing Date or the applicable Option Closing Date, as the case may be) by wire transfer of immediately available funds 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It is understood that the Representative has been authorized, for its own account and the accounts of the several Underwriters, to accept delivery of and receipt for, and make payment of the purchase price for, the Firm Shares and any Over-Allotment Option Shares the Underwriters have agreed to purchase. Cantor, individually and not as the Representative of the Underwriters, may (but shall not be obligated to) make payment for any Offered Shares to be purchased by any Underwriter whose funds shall not have been received by the Representative by the First Closing Date or the applicable Option Closing Date, as the case may be, for the account of such Underwriter, but any such payment shall not relieve such Underwriter from any of its obligations under 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** <u>Delivery of the Offered Shares</u>. The Company shall deliver, or cause to be delivered, through the facilities of The Depository Trust Company ("**DTC**"), to the Representative for the accounts of the several Underwriters, the Firm Shares at the First Closing Date, against the irrevocable release of a wire transfer of immediately available funds for the amount of the purchase price therefor. The Company shall also deliver, or cause to be delivered through the facilities of DTC unless the Representative shall otherwise instruct, to the Representative for the accounts of the several Underwriters, the Over-Allotment Option Shares the Underwriters have agreed to purchase at the First Closing Date or the applicable Option Closing Date, as the case may be, against the release of a wire transfer of immediately available funds for the amount of the purchase price therefor. If the Representative so elects, delivery of the Offered Shares may be made by credit to the accounts designated by the Representative through DTC's full fast transfer or DWAC programs. The certificates, if any, for the Offered Shares shall be registered in such names and denominations as the Representative shall have requested at least two full Business Days prior to the First Closing Date (or the applicable Option Closing Date, as the case may be) and shall be made available for inspection on the Business Day preceding the First Closing Date (or the applicable Option Closing Date, as the case may be) at a location in New York City as the Representative may designate. Time shall be of the essence, and delivery at the time and place specified in this Agreement is a further condition to the obligations of the Underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Additional Covenants of the Company</u>.

The Company further covenants and agrees with each Underwriter 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;**(a)** <u>Delivery of Registration Statement, Time of Sale Prospectus and Prospectus</u>. The Company shall furnish to the Representative, without charge, [●] signed copies of the Registration Statement (including exhibits thereto) and for delivery to each other Underwriter a conformed copy of the Registration Statement (without exhibits thereto) and shall furnish to the Representative in New York City, without charge, prior to 10:00 a.m. New York City time on the Business Day next succeeding the date of this Agreement and during the period when a prospectus relating to the Offered Shares is required by the Securities Act to be delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule) in connection with the sale of the Offered Shares, as many copies of the Time of Sale Prospectus, the Prospectus and any supplements and amendments thereto or to the Registration Statement as the Representative 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** <u>Representative's Review of Proposed Amendments and Supplements</u>. During the period when a prospectus relating to the Offered Shares is required by the Securities Act to be delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule), the Company (i) will furnish to the Representative for review, a reasonable period of time prior to the proposed time of filing of any proposed amendment or supplement to the Registration Statement, a copy of each such amendment or supplement and (ii) will not amend or supplement the Registration Statement without the Representative's prior written consent. Prior to amending or supplementing any preliminary prospectus, the Time of Sale Prospectus or the Prospectus, the Company shall furnish to the Representative for review, a reasonable amount of time prior to the time of filing or use of the proposed amendment or supplement, a copy of each such proposed amendment or supplement. The Company shall not file or use any such proposed amendment or supplement without the Representative's prior written consent. The Company shall file with the Commission within the applicable period specified in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant to such 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** <u>Free Writing Prospectuses</u>. The Company shall furnish to the Representative for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of each proposed free writing prospectus or any amendment or supplement thereto prepared by or on behalf of, used by or referred to by the Company, and the Company shall not file, use or refer to any proposed free writing prospectus or any amendment or supplement thereto without the Representative's prior written consent. The Company shall furnish to each Underwriter, without charge, as many copies of any free writing prospectus prepared by or on behalf of, used by or referred to by the Company as such Underwriter may reasonably request. If at any time when a prospectus is required by the Securities Act to be delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule) in connection with the sale of the Offered Shares (but in any event if at any time through and including the First Closing Date) there occurred or occurs an event or development as a result of which any free writing prospectus prepared by or on behalf of, used by or referred to by the Company conflicted or would conflict with the information contained in the Registration Statement or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at such time, not misleading, the Company shall promptly amend or supplement such free writing prospectus so that the statements in such free writing prospectus as so amended or supplemented will not conflict with information contained in the Registration Statement and will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at such time, not misleading, as the case may be; <u>provided</u>, <u>however</u>, that prior to amending or supplementing any such free writing prospectus, the Company shall furnish to the Representative for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of such proposed amended or supplemented free writing prospectus, and the Company shall not file, use or refer to any such amended or supplemented free writing prospectus without the Representative's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Filing of Underwriter Free Writing Prospectuses</u>. The Company shall not take any action that would result in an Underwriter or the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of such Underwriter that such Underwriter otherwise would not have been required to file 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** <u>Amendments and Supplements to Time of Sale Prospectus</u>. If the Time of Sale Prospectus is being used to solicit offers to buy the Offered Shares at a time when the Prospectus is not yet available to prospective purchasers, and any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Time of Sale Prospectus so that the Time of Sale Prospectus does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances when delivered to a prospective purchaser, not misleading, or if any event shall occur or condition exist as a result of which the Time of Sale Prospectus conflicts with the information contained in the Registration Statement, or if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the Time of Sale Prospectus to comply with applicable Law, the Company shall (subject to Section 3(b) and Section 3(c)) promptly prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to any dealer upon request, either amendments or supplements to the Time of Sale Prospectus so that the statements in the Time of Sale Prospectus as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances when delivered to a prospective purchaser, not misleading or so that the Time of Sale Prospectus, as amended or supplemented, will no longer conflict with the information contained in the Registration Statement, or so that the Time of Sale Prospectus, as amended or supplemented, will comply 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** <u>Certain Notifications and Required Actions</u>. After the date of this Agreement, the Company shall promptly advise the Representatives in writing of: (i) the receipt of any comments of, or requests for additional or supplemental information from, the Commission; (ii) the time and date of any filing of any post-effective amendment to the Registration Statement or any amendment or supplement to any preliminary prospectus, the Time of Sale Prospectus, any free writing prospectus or the Prospectus; (iii) the time and date that any post-effective amendment to the Registration Statement becomes effective; and (iv) the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto or any amendment or supplement to any preliminary prospectus, the Time of Sale Prospectus or the Prospectus or of any order preventing or suspending the use of any preliminary prospectus, the Time of Sale Prospectus, any free writing prospectus or the Prospectus, or of any proceedings to remove, suspend or terminate from listing or quotation the Shares from any securities exchange upon which they are listed for trading or included or designated for quotation, or of the threatening or initiation of any proceedings for any of such purposes. If the Commission shall enter any such stop order at any time, the Company will use its best efforts to obtain the lifting of such order at the earliest possible moment. Additionally, the Company agrees that it shall comply with all applicable provisions of Rule 424(b), Rule 433 and Rule 430A under the Securities Act and will use its reasonable efforts to confirm that any filings made by the Company under Rule 424(b) or Rule 433 were received in a timely manner by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Amendments and Supplements to the Prospectus and Other Securities Act Matters</u>. If any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Prospectus so that the Prospectus does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances when the Prospectus is delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule) to a purchaser, not misleading, or if in the opinion of the Representative or counsel for the Underwriters it is otherwise necessary to amend or supplement the Prospectus to comply with applicable Law, the Company agrees (subject to Section 3(b) and Section 3(c)) to promptly prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to any dealer upon request, amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances when the Prospectus is delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule) to a purchaser, not misleading or so that the Prospectus, as amended or supplemented, will comply with applicable Law. Neither the Representative's consent to, nor delivery of, any such amendment or supplement shall constitute a waiver of any of the Company's obligations under Section 3(b) or Section 3(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Blue Sky Compliance</u>. The Company shall cooperate with the Representative and counsel for the Underwriters to qualify or register the Offered Shares for sale under (or obtain exemptions from the application of) the state securities or blue sky Laws or Canadian provincial securities Laws (or other foreign Laws) of those jurisdictions designated by the Representative, shall comply with such Laws and shall continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Offered Shares. The Company shall not be required to qualify as a foreign corporation or to take any action that would subject it to general service of process in any such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign corporation. The Company will advise the Representative promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Offered Shares for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company shall use its best efforts to obtain the withdrawal thereof at the earliest possible moment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Use of Proceeds</u>. The Company shall apply the net proceeds from the sale of the Offered Shares sold by it in the manner described under the caption "Use of Proceeds" in the Registration Statement, the Time of Sale Prospectus and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Transfer Agent</u>. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(k)** <u>Earnings Statement</u>. The Company will make generally available to its security holders and to the Representative as soon as practicable an earnings statement (which need not be audited) covering a period of at least twelve months beginning with the first fiscal quarter of the Company commencing after the date of this Agreement that will satisfy the provisions of Section 11(a) of the Securities Act and the rules and regulations of the Commission 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(l)** <u>Continued Compliance with Securities Laws</u>. The Company will comply with the Securities Act and the Exchange Act so as to permit the completion of the distribution of the Offered Shares as contemplated by this Agreement, the Registration Statement, the Time of Sale Prospectus and the Prospectus. Without limiting the generality of the foregoing, the Company will, during the period when a prospectus relating to the Offered Shares is required by the Securities Act to be delivered (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule), file on a timely basis with the Commission and Nasdaq all reports and documents required to be filed under the Exchange 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;&nbsp;&nbsp;&nbsp;&nbsp;**(m)** <u>Listing</u>. The Company will use its best efforts to list, subject to notice of issuance, the Offered Shares on Nasdaq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Company to Provide Copy of the Prospectus in Form That May be Downloaded from the Internet</u>. If requested by the Representative, the Company shall cause to be prepared and delivered, at its expense, within one Business Day from the effective date of this Agreement, to the Representative, an "**electronic Prospectus**" to be used by the Underwriters in connection with the offering and sale of the Offered Shares. As used herein, the term "**electronic Prospectus**" means a form of Time of Sale Prospectus, and any amendment or supplement thereto, that meets each of the following conditions: (i) it shall be encoded in an electronic format, satisfactory to the Representative, that may be transmitted electronically by the Representative and the other Underwriters to offerees and purchasers of the Offered Shares; (ii) it shall disclose the same information as the paper Time of Sale Prospectus, except to the extent that graphic and image material cannot be disseminated electronically, in which case such graphic and image material shall be replaced in the electronic Prospectus with a fair and accurate narrative description or tabular representation of such material, as appropriate; and (iii) it shall be in or convertible into a paper format or an electronic format, satisfactory to the Representative, that will allow investors to store and have continuously ready access to the Time of Sale Prospectus at any future time, without charge to investors (other than any fee charged for subscription to the Internet as a whole and for on-line time). The Company hereby confirms that it has included or will include in the Prospectus filed pursuant to EDGAR or otherwise with the Commission and in the Registration Statement at the time it was declared effective an undertaking that, upon receipt of a request by an investor or his or her representative, the Company shall transmit or cause to be transmitted promptly, without charge, a paper copy of the Time of Sale Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Agreement Not to Offer or Sell Additional Shares</u>. During the period commencing on and including the date hereof and continuing through and including the 180th day following the date of the Prospectus (such period, as extended as described below, being referred to herein as the "**Lock-up Period**"), the Company will not, without the prior written consent of the Representative (which consent may be withheld in its sole discretion), directly or indirectly: (i) sell, offer to sell, contract to sell or lend any Shares or Related Securities (as defined below); (ii) effect any short sale, or establish or increase any "put equivalent position" (as defined in Rule 16a-1(h) under the Exchange Act) or liquidate or decrease any "call equivalent position" (as defined in Rule 16a-1(b) under the Exchange Act) of any Shares or Related Securities; (iii) pledge, hypothecate or grant any security interest in any Shares or Related Securities; (iv) in any other way transfer or dispose of any Shares or Related Securities; (v) enter into any swap, hedge or similar arrangement or agreement that transfers, in whole or in part, the economic risk of ownership of any Shares or Related Securities, regardless of whether any such transaction is to be settled in securities, in cash or otherwise; (vi) announce the offering of any Shares or Related Securities; (vii) file any registration statement under the Securities Act in respect of any Shares or Related Securities (other than as contemplated by this Agreement with respect to the Offered Shares); or (viii) publicly announce the intention to do any of the foregoing; <u>provided</u>, <u>however</u>, that the Company may (A) sell the Offered Shares pursuant to the terms of this Agreement and (B) issue Shares, Related Securities or options to purchase Shares, or issue Shares upon exercise of options, pursuant to any stock option, stock bonus or other stock plan or arrangement described in the Registration Statement, the Time of Sale Prospectus and the Prospectus, but only if the holders of such Shares or options agree in writing with the Underwriters not to sell, offer, dispose of or otherwise transfer any such Shares or options during the Lock-up Period without the prior written consent of Cantor (which consent may be withheld in its sole discretion). For purposes of the foregoing, "**Related Securities**" shall mean any options or warrants or other rights to acquire Shares or any securities exchangeable or exercisable for or convertible into Shares, or to acquire other securities or rights ultimately exchangeable or exercisable for, or convertible into, Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(p)** <u>Future Reports to the Representative</u>. During the period of five years hereafter, the Company will furnish to the Representative, c/o Cantor Fitzgerald & Co., at 110 East 59<sup>th</sup> Street, New York, NY 10022, Attention: Equity Capital Markets, Email: notices-IBD@cantor.com, with copies to Cantor Fitzgerald & Co., 110 East 59th Street, New York, NY 10022, Attention: General Counsel, Email: legal-IBD@cantor.com: (i) as soon as practicable after the end of each fiscal year, copies of the Annual Report of the Company containing the balance sheet of the Company as of the close of such fiscal year and statements of income, stockholders' equity and cash flows for the year then ended and the opinion thereon of the Company's independent public or certified public accountants; (ii) as soon as practicable after the filing thereof, copies of each proxy statement, Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other report filed by the Company with the Commission, FINRA or any securities exchange; and (iii) as soon as available, copies of any report or communication of the Company furnished or made available generally to holders of its capital stock; <u>provided</u>, <u>however</u>, that the requirements of this Section 3(p) shall be satisfied to the extent that such reports, statement, communications, financial statements or other documents are available on EDGAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Emerging Growth Company</u>. The Company will promptly notify the Representative if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) completion of the distribution of Shares within the meaning of the Securities Act and (ii) completion of the Lock-Up 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;**(r)** <u>Investment Limitation</u>. The Company shall not invest or otherwise use the proceeds received by the Company from its sale of the Offered Shares in such a manner as would require the Company or any of the Subsidiaries to register as an investment company under the Investment Company 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;&nbsp;&nbsp;&nbsp;&nbsp;**(s)** <u>No Stabilization or Manipulation; Compliance with Regulation M</u>. The Company will not take, and will ensure that no affiliate of the Company will take, directly or indirectly, without giving effect to activities by the Underwriters, any action designed to or that might cause or result in stabilization or manipulation of the price of the Shares or any reference security with respect to the Shares, whether to facilitate the sale or resale of the Offered Shares or otherwise, and the Company will, and shall cause each of its affiliates to, comply with all applicable provisions of Regulation 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(t)** <u>Enforce Lock-up Agreements</u>. During the Lock-up Period, the Company will enforce all agreements between the Company and any of its security holders that restrict or prohibit, expressly or in operation, the offer, sale or transfer of Shares or Related Securities or any of the other actions restricted or prohibited under the terms of the form of Lock-up Agreement. In addition, the Company will direct the transfer agent to place stop transfer restrictions upon any such securities of the Company that are bound by such "lock-up" agreements for the duration of the periods contemplated in such agreements, including "lock-up" agreements entered into by the Company's officers, directors and stockholders pursuant to Section 6(d) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Company to Provide Interim Financial Statements</u>. Prior to the First Closing Date and each applicable Option Closing Date, the Company will furnish the Underwriters, as soon as they have been prepared by or are available to the Company, a copy of any unaudited interim financial statements of the Company for any period subsequent to the period covered by the most recent financial statements appearing in the Registration Statement and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Amendments and Supplements to Permitted Section 5(d) Communications</u>. If at any time following the distribution of any Permitted Section 5(d) Communication, there occurred or occurs an event or development as a result of which such Permitted Section 5(d) Communication included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent time, not misleading, the Company will promptly notify the Representative and will promptly amend or supplement, at its own expense, such Permitted Section 5(d) Communication to eliminate or correct such untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(w)** <u>Directed Share Program</u>. In connection with the Directed Share Program, the Company will ensure that the Directed Shares will be restricted to the extent required by FINRA or its rules from sale, transfer, assignment, pledge or hypothecation for a period of three months following the date of the effectiveness of the Registration Statement. The Company will direct the transfer agent to place stop transfer restrictions upon such securities for such period of time. Should the Company release, or seek to release, from such restrictions any of the Directed Shares, the Company agrees to reimburse the Underwriters for any reasonable expenses (including, without limitation, legal expenses) they incur in connection with such release. The Company will comply with all applicable securities and other laws, rules and regulations in each jurisdiction in which the Directed Shares are offered in connection with the Directed Share Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x)** <u>Announcement Regarding Lock-ups</u>**.** The Company agrees to announce the Representative's intention to release any director or "officer" (within the meaning of Rule 16a-1(f) under the Exchange Act) of the Company from any of the restrictions imposed by any Lock-up Agreement, by issuing, through a major news service, a press release, in the form set forth in <u>Exhibit C</u> hereto, promptly following the Company's receipt of any notification from the Representative in which such intention is indicated, but in any case not later than the close of the third Business Day prior to the date on which such release or waiver is to become effective; *provided*, *however*, that nothing shall prevent the Representative, on behalf of the Underwriters, from announcing the same through a major news service, irrespective of whether the Company has made the required announcement; and *provided, further,* that no such announcement shall be made of any release or waiver granted solely to permit a transfer of securities that is not for consideration and where the transferee has agreed in writing to be bound by the terms of a Lock-up Agreement in the form set forth as <u>Exhibit A</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(y)** <u>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;&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 Company and each of the Subsidiaries covenants that it will not, directly or indirectly, use the proceeds of the offering and sale of the Shares, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions or is a Sanctioned Country; 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) in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company will not engage in any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is the subject of Sanctions or is a Sanctioned Country.

The Representative, on behalf of the several Underwriters, may, in its sole discretion, waive in writing the performance by the Company of any one or more of the foregoing covenants or extend the time for their performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Payment of Expenses</u>. The Company agrees to pay or reimburse all costs, fees and expenses incurred in connection with the performance of its obligations hereunder and in connection with the transactions contemplated hereby, including (i) all expenses incident to the issuance and delivery of the Offered Shares (including all printing and engraving costs); (ii) all fees and expenses of the registrar and transfer agent of the Shares; (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Offered Shares to the Underwriters; (iv) all fees and expenses of the Company's counsel, independent public or certified public accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates of experts), the Time of Sale Prospectus, the Prospectus, each free writing prospectus prepared by or on behalf of, used by, or referred to by the Company, and each preliminary prospectus, each Permitted Section 5(d) Communication, and all amendments and supplements thereto, and this Agreement; (vi) all filing fees, attorneys' fees and expenses incurred by the Company or the Underwriters in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Offered Shares for offer and sale under the state securities or blue sky laws, and, if requested by the Representative, preparing and printing a "Blue Sky Survey," and any supplements thereto, advising the Underwriters of such qualifications, registrations and exemptions; (vii) the costs, fees and expenses incurred by the Underwriters in connection with determining their compliance with the rules and regulations of FINRA related to the Underwriters' participation in the offering and distribution of the Offered Shares, including any related filing fees and the legal fees of, and disbursements by, counsel to the Underwriters; (viii) the costs and expenses of the Company relating to investor presentations on any "road show," any Permitted Section 5(d) Communication or any Section 5(d) Oral Communication undertaken in connection with the offering of the Shares, including expenses associated with the preparation or dissemination of any electronic road show, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, travel and lodging expenses of the Representative, employees and officers of the Company and any such consultants; (ix) all fees and expenses in connection with the preparation and filing of the registration statement on Form 8-A relating to the Shares and all fees and expenses associated with listing the Offered Shares on Nasdaq; (x) all costs and expenses of the Underwriters, including the fees and disbursements of counsel for the Underwriters and stamp duties, similar taxes or duties or other taxes, if any, in connection with matters related to the Directed Shares which are designated by the Company for sale to Participants; and (xi) all other fees, costs and expenses of the nature referred to in Item 13 of Part II of the Registration Statement. Any such amount payable to the Underwriters may be deducted from the purchase price for the Offered Shares. Except as provided in this Section 4 or in Section 7, Section 9 or Section 10, or in the engagement letter dated October 23, 2025 (the "**Engagement Letter**"), the Underwriters shall pay their own expenses, including the fees and disbursements of their counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Covenant of the Underwriters</u>. Each Underwriter severally and not jointly covenants with the Company not to take any action that would result in the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of such Underwriter that otherwise would not, but for such actions, be required to be filed by the Company under Rule 433(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Conditions of the Obligations of the Underwriters</u>. The respective obligations of the several Underwriters hereunder to purchase and pay for the Offered Shares as provided herein on the First Closing Date and, with respect to the Over-Allotment Option Shares, each Option Closing Date, shall be subject to the accuracy of the representations and warranties on the part of the Company set forth in Section 1 as of the date hereof and as of the First Closing Date as though then made and, with respect to the Over-Allotment Option Shares, as of each Option Closing Date as though then made, to the timely performance by the Company of its covenants and other obligations hereunder, and to each of the following additional 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;**(a)** <u>Comfort Letter</u>. On the date hereof, the Representative shall receive from RSM US, LLP, independent registered public accountants for the Company, a letter dated the date hereof addressed to the Underwriters, in form and substance satisfactory to the Representative, containing statements and information of the type ordinarily included in accountant's "comfort letters" to underwriters, delivered according to Statement of Auditing Standards No. 72 (or any successor bulletin), with respect to the audited and unaudited financial statements and certain financial information contained in the Registration Statement, the Time of Sale Prospectus, and each free writing prospectus, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Compliance with Registration Requirements; No Stop Order; No Objection from FINRA</u>. For a period from and after the date of this Agreement and through and including the First Closing Date and, with respect to any Over-Allotment Option Shares purchased after the First Closing Date, each Option 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;&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 Company shall have filed the Prospectus with the Commission (including the information required by Rule 430A under the Securities Act) in the manner and within the time period required by Rule 424(b) under the Securities Act; or the Company shall have filed a post-effective amendment to the Registration Statement containing the information required by such Rule 430A, and such post-effective amendment shall have 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;&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) No stop order suspending the effectiveness of the Registration Statement or any post-effective amendment to the Registration Statement shall be in effect, and no proceedings for such purpose shall have been instituted or threatened by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) FINRA shall have raised no objection to the fairness and reasonableness of the underwriting terms and 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** <u>No Material Adverse Effect</u>. For the period from and after the date of this Agreement and through and including the First Closing Date and, with respect to any Over-Allotment Option Shares purchased after the First Closing Date, each Option Closing Date, in the judgment of the Representative there shall not have occurred any material adverse change in the authorized capital stock of the Company or any Material Adverse Effect or any development that could cause 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** <u>Lock-up Agreements</u>. On or prior to the date hereof, the Company shall have furnished to the Representative an agreement in the form of <u>Exhibit A</u> hereto from each director and officer (as defined in Rule 16a-1(f) under the Exchange Act), and holders of all of the Company's outstanding capital stock and each such agreement shall be in full force and effect on each of the First Closing Date and each Option 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** <u>Opinion of Counsel for the Company</u>. On each of the First Closing Date and each Option Closing Date, the Representative shall have received the opinion and negative assurance letter of Ellenoff Grossman & Schole LLP, counsel for the Company, dated as of such date, in form and substance satisfactory to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Opinion of Counsel for the Underwriters</u>. On each of the First Closing Date and each Option Closing Date, the Representative shall have received the opinion of Thompson Coburn LLP, counsel for the Underwriters in connection with the offer and sale of the Offered Shares, in form and substance satisfactory to the Representative, dated as of such 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;**(g)** <u>Officers' Certificate</u>. On each of the First Closing Date and each Option Closing Date, the Representative shall have received a certificate executed by the Chief Executive Officer or President of the Company and the Chief Financial Officer of the Company, dated as of such date, to the effect set forth in Section 6(b)(ii) and further to the effect 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the period from and including the date of this Agreement through and including such date, there has not occurred any 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the representations, warranties and covenants of the Company set forth in Section 1 are true and correct with the same force and effect as though expressly made on and as of such 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;(iii) the Company has complied with all the agreements hereunder and satisfied all the conditions on its part to be performed or satisfied hereunder at or prior to such 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;**(h)** <u>Chief Financial Officer's Certificate</u>. On each of the First Closing Date and each Option Closing Date, the Representative shall have received a certificate executed by the Chief Financial Officer of the Company, dated as of such date, in the form and substance reasonably satisfactory to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Bring-down Comfort Letter</u>. On each of the First Closing Date and each Option Closing Date the Representative shall have received from RSM US, LLP, independent registered public accountants for the Company, a letter dated such date, in form and substance satisfactory to the Representative, which letter shall: (i) reaffirm the statements made in the letter furnished by them pursuant to Section 6(a), except that the specified date referred to therein for the carrying out of procedures shall be no more than three Business Days prior to the First Closing Date or the applicable Option Closing Date, as the case may be; and (ii) cover certain financial information contained in the Registration Statement, the Time of Sale Prospectus, Prospectus, and each free writing prospectus, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Rule 462(b) Registration Statement</u>. In the event that a Rule 462(b) Registration Statement is filed in connection with the offering contemplated by this Agreement, such Rule 462(b) Registration Statement shall have been filed with the Commission on the date of this Agreement and shall have become effective automatically upon such filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Nasdaq</u>. The Offered Shares shall have been approved for listing on Nasdaq, subject only to receipt of official notice of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** <u>Additional Documents</u>. On or before each of the First Closing Date and each Option Closing Date, the Representative and counsel for the Underwriters shall have received such information, documents and opinions as they may reasonably request for the purposes of enabling them to pass upon the issuance and sale of the Offered Shares as contemplated herein, or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained; and all proceedings taken by the Company in connection with the issuance and sale of the Offered Shares as contemplated herein and in connection with the other transactions contemplated by this Agreement shall be satisfactory in form and substance to the Representative and counsel for the Underwriters.

If any condition specified in this Section 6 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Representative by notice from the Representative to the Company at any time on or prior to the First Closing Date and, with respect to the Over-Allotment Option Shares, at any time on or prior to the applicable Option Closing Date, which termination shall be without liability on the part of any party to any other party, except that Section 4, Section 7, Section 9 and Section 10 shall at all times be effective and shall survive such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Reimbursement of Underwriters' Expenses</u>. Subject to the terms of Section 4 of the Engagement Letter, if this Agreement is terminated by the Representative pursuant to Section 6, Section 11 or Section 12, or if the sale to the Underwriters of the Offered Shares on the First Closing Date is not consummated because of any refusal, inability or failure on the part of the Company to perform any agreement herein or to comply with any provision hereof, the Company agrees to reimburse the Representative and the other Underwriters (or such Underwriters as have terminated this Agreement with respect to themselves), severally, upon demand for all out-of-pocket expenses that shall have been reasonably incurred by the Representative and the Underwriters in connection with the proposed purchase and the offering and sale of the Offered Shares, including fees and disbursements of counsel, printing expenses, travel expenses, postage, facsimile and telephone charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Effectiveness of this Agreement</u>. This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Indemnification</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)** <u>Indemnification of the Underwriters</u>. The Company agrees to indemnify and hold harmless each Underwriter, its affiliates and their respective partners, members, directors, officers, employees and agents, and each person, if any, who controls each Underwriter or any affiliate within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act 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;(i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any untrue statement or alleged untrue statement of a material fact included in any preliminary prospectus, Time of Sale Prospectus, any free writing prospectus, any Marketing Material, any Section 5(d) Written Communication or the Prospectus (or any amendment or supplement to the foregoing), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or several, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any Governmental Authority, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; <u>provided</u> that (subject to Section 9(d)) any such settlement is effected with the written consent of the Company, which consent shall not unreasonably be delayed, conditioned or withheld; 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;(iii) against any and all expense whatsoever, as incurred (including the fees and disbursements of counsel), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any Governmental Authority, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission (whether or not a party), to the extent that any such expense is not paid under (i) or (ii) above;

<u>provided</u>, <u>however</u>, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission made solely in reliance upon and in conformity with the Underwriter Information (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;**(b)** <u>Indemnification of the Company, its Directors and Officers</u>. Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Company, and its directors, each officer of the Company who signed the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 9(a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement, any preliminary prospectus, the Time of Sale Prospectus, any free writing prospectus, any Section 5(d) Written Communication or the Prospectus (or any amendment or supplement to the foregoing), in reliance upon and in conformity with information relating to such Underwriter and furnished to the Company in writing by such Underwriter or Underwriters expressly for use therein. The Company hereby acknowledges that the only information that the Underwriter or Underwriters has furnished to the Company expressly for use in the Registration Statement, any preliminary prospectus, the Time of Sale Prospectus, any free writing prospectus, any Section 5(d) Written Communication or the Prospectus (or any amendment or supplement to the foregoing) are the statements set forth in the [fifth] paragraph under the caption "Underwriting," the [first and second] sentences of the [first] paragraph, the [first] sentence of the [second] paragraph, the [second and third] sentences of the [third] paragraph and the [second] sentence of the [fourth] paragraph under the caption "Underwriting—Market Making, Stabilization and Other Transactions," the [first, second, third and fifth] sentences under the heading "Underwriting—Passive Market Making" and the [first, second and third] sentences under the heading "Underwriting—Electronic Distribution" in the Preliminary Prospectus and Prospectus (the "**Underwriter 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** <u>Notifications and Other Indemnification Procedures</u>. Any party that proposes to assert the right to be indemnified under this Section 9 will, promptly after receipt of notice of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section 9, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified party otherwise than under this Section 9 and (ii) any liability that it may have to any indemnified party under the foregoing provision of this Section 9 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense of, the action, with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party for any other legal expenses except as provided below and except for the reasonable costs of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (A) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (B) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (C) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (D) the indemnifying party has not in fact employed counsel to assume the defense of such action or counsel reasonably satisfactory to the indemnified party, in each case, within a reasonable time after receiving notice of the commencement of the action; in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction (plus local counsel) at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not, in any event, be liable for any settlement of any action or claim effected without its written consent. No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 9 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent (x) includes an express and unconditional release of each indemnified party, in form and substance reasonably satisfactory to such indemnified party, from all liability arising out of such litigation, investigation, proceeding or claim and (y) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Settlement Without Consent if Failure to Reimburse</u>. If an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 9(a)(ii) (including with respect to a settlement relating to the Directed Shares) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Directed Share Program Indemnification</u>. In connection with the offer and sale of the Directed Shares, the Company agrees, promptly upon a request in writing, to indemnify and hold harmless the Underwriters from and against any and all losses, liabilities, claims, damages and expenses incurred by any of them as a result of the failure of the Participants to pay for and accept delivery of Directed Shares which, by the end of the Business Day on which this Agreement is executed, were subject to a properly confirmed agreement to purchase. The Company agrees to indemnify and hold harmless the Underwriters and their respective affiliates, partners, members, directors, officers, employees and agents, and each person, if any, who controls any of the Underwriters or any of their affiliates within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any loss, claim, damage, liability or expense, as incurred, to which the Underwriters or such controlling person may become subject, which is (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material prepared by or with the consent of the Company for distribution to Participants in connection with the Directed Share Program (including any prospectus wrapper material distributed in connection with the reservation and sale of Directed Shares) or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) caused by the failure of any Participant to pay for and accept delivery of Directed Shares that such Participant agreed to purchase; or (iii) related to, arising out of, or in connection with the Directed Share Program. The indemnity agreement set forth in this paragraph shall be in addition to any liabilities that the Company may otherwise have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Contribution</u>. In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of Section 9 is applicable in accordance with its terms but for any reason is held to be unavailable or insufficient from the Company or the Underwriters, the Company and the Underwriters will contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted) to which any indemnified party may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand. The relative benefits received by the Company on the one hand and the Underwriters on the other hand shall be deemed to be in the same proportion as the total net proceeds from the sale of the Offered Shares (or Directed Shares in the case of indemnification pursuant to Section 9(e)) (before deducting expenses) received by the Company bear to the total compensation received by the Underwriters (before deducting expenses) from the sale of Offered Shares (or Directed Shares in the case of indemnification pursuant to Section 9(e)) on behalf of the Company. If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable Law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and the Underwriters, on the other hand, with respect to the statements or omission that resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contributions pursuant to this Section 10 were to be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense or damage, or action in respect thereof, referred to above in this Section 10 shall be deemed to include, for the purpose of this Section 10, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim to the extent consistent with Section 9(c). Notwithstanding the foregoing provisions of Section 9 and this Section 10, the Underwriters shall not be required to contribute any amount in excess of the commissions actually received by it under this Agreement and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 10, any person who controls a party to this Agreement within the meaning of the Securities Act, any affiliates of the respective Underwriters and any officers, directors, partners, employees or agents of the Underwriters or their respective affiliates, will have the same rights to contribution as that party, and each director of the Company and each officer of the Company who signed the Registration Statement will have the same rights to contribution as the Company, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made under this Section 10, will notify any such party or parties from whom contribution may be sought, but the omission to so notify will not relieve that party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 10 except to the extent that the failure to so notify such other party materially prejudiced the substantive rights or defenses of the party from whom contribution is sought. Except for a settlement entered into pursuant to the last sentence of Section 9(c), no party will be liable for contribution with respect to any action or claim settled without its written consent if such consent is required pursuant to Section 9(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Default of One or More of the Several Underwriters</u>. If, on the First Closing Date or any Option Closing Date, any one or more of the several Underwriters shall fail or refuse to purchase Offered Shares that it or they have agreed to purchase hereunder on such date, and the aggregate number of Offered Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase does not exceed 10% of the aggregate number of the Offered Shares to be purchased on such date, the Representative may make arrangements satisfactory to the Company for the purchase of such Offered Shares by other persons, including any of the Underwriters, but if no such arrangements are made by such date, the other Underwriters shall be obligated, severally and not jointly, in the proportions that the number of Firm Shares set forth opposite their respective names on <u>Schedule A</u> bears to the aggregate number of Firm Shares set forth opposite the names of all such non-defaulting Underwriters, or in such other proportions as may be specified by the Representative with the consent of the non-defaulting Underwriters, to purchase the Offered Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such date. If, on the First Closing Date or any Option Closing Date, any one or more of the several Underwriters shall fail or refuse to purchase Offered Shares that it or they have agreed to purchase hereunder on such date, and the aggregate number of Offered Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase exceeds 10% of the aggregate number of Offered Shares to be purchased on such date, and arrangements satisfactory to the Representative and the Company for the purchase of such Offered Shares are not made within 48 hours after such default, this Agreement shall terminate without liability of any party to any other party except that the provisions of Section 4, Section 7, Section 9 and Section 10 shall at all times be effective and shall survive such termination. In any such case either the Representative or the Company shall have the right to postpone the First Closing Date or the applicable Option Closing Date, as the case may be, but in no event for longer than seven days in order that the required changes, if any, to the Registration Statement and the Prospectus or any other documents or arrangements may be effected.

As used in this Agreement, the term "**Underwriter**" shall be deemed to include any person substituted for a defaulting Underwriter under this Section 11. Any action taken under this Section 11 shall not relieve any defaulting Underwriter from liability in respect of any default of such Underwriter under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Termination of this Agreement</u>. Prior to the purchase of the Firm Shares by the Underwriters on the First Closing Date, this Agreement may be terminated by the Representative by notice given to the Company if at any time: (i) trading or quotation in any of the Company's securities shall have been suspended or limited by the Commission or by Nasdaq, or trading in securities generally on either Nasdaq or the New York Stock Exchange shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges; (ii) a general banking moratorium shall have been declared by any of federal, or New York authorities; (iii) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or calamity, or any change in the United States or international financial markets, or any substantial change or development involving a prospective substantial change in United States' or international political, financial or economic conditions, as in the sole judgment of the Representative is material and adverse and makes it impracticable to market the Offered Shares in the manner and on the terms described in the Time of Sale Prospectus or the Prospectus or to enforce contracts for the sale of securities; (iv) in the sole judgment of the Representative there shall have occurred any change, or any development or event involving a prospective change, in the condition, financial or otherwise, or in the business, properties, earnings, results of operations or prospects of the Company and the Subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business; or (v) the Company shall have sustained a loss by strike, fire, flood, earthquake, accident or other calamity of such character as in the sole judgment of the Representative may interfere materially with the conduct of the business and operations of the Company regardless of whether or not such loss shall have been insured. Any termination pursuant to this Section 12 shall be without liability on the part of (A) the Company to any Underwriter, except that the Company shall be obligated to reimburse the expenses of the Representative and the Underwriters pursuant to Section 4 or Section 7 hereof or (B) any Underwriter to the Company; <u>provided</u>, <u>however</u>, that the provisions of Section 9 and Section 10 shall at all times be effective and shall survive such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>No Advisory or Fiduciary Relationship</u>. The Company acknowledges and agrees that (a) the purchase and sale of the Offered Shares pursuant to this Agreement, including the determination of the public offering price of the Offered Shares and any related discounts and commissions, is an arm's-length commercial transaction between the Company, on the one hand, and the several Underwriters, on the other hand; (b) in connection with the offering contemplated hereby and the process leading to such transaction, each Underwriter is and has been acting solely as a principal and is not the agent or fiduciary of the Company, or its stockholders, or its creditors, employees or any other party; (c) no Underwriter has assumed or will assume an advisory or fiduciary responsibility in favor of the Company with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising the Company on other matters) and no Underwriter has any obligation to the Company with respect to the offering contemplated hereby except the obligations expressly set forth in this Agreement; (d) the Underwriters and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company; and (e) the Underwriters have not provided any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Representations and Agreements to Survive Delivery</u>. The respective indemnities, agreements, representations, warranties and other statements of the Company, its officers and the several Underwriters set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of any Underwriter or the Company or any of its or their partners, affiliates, officers, directors or employees or any controlling person, as the case may be, and, anything herein to the contrary notwithstanding, will survive delivery of and payment for the Offered Shares sold hereunder and any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Notices</u>. All communications hereunder shall be in writing and shall be mailed, hand delivered or telecopied and confirmed to the parties hereto as follows:

If to the Representative: Cantor Fitzgerald & Co.

110 East 59<sup>th</sup> Street

New York, NY 10022

Email: notices-IBD@cantor.com;

legal-IBD@cantor.com

Facsimile: (212) 829-4708

Attention: General Counsel

with a copy to: Thompson Coburn LLP

55 East Monroe Street, Suite 3700

Chicago, IL 60603

Attn: David J. Kaufman, Esq.

If to the Company: The Elmet Group Co.

2 Portland Fish Pier

Suite 214

Portland, ME 04101

Attn: Christian Chandler, General Counsel

with a copy to: Ellenoff Grossman & Schole LLP

1345 Avenue of the Americas

New York, NY 10105

Attn: Adam Berkaw, Esq.

Each party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose. Each such notice or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Electronic Notice</u>. An electronic communication ("**Electronic Notice**") shall be deemed written notice for purposes of this Section 16 if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form ("**Nonelectronic Notice**") which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the Company and the Underwriters and their respective successors and the parties referred to in Section 11. References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party; <u>provided</u>, <u>however</u>, that the Representative may assign its rights and obligations hereunder to an affiliate thereof without obtaining the Company's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Partial Unenforceability</u>. The invalidity or unenforceability of any section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other section, paragraph or provision hereof. If any section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Entire Agreement; Amendment; Severability; Waiver</u>. This Agreement (including all schedules and exhibits attached hereto issued pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Representative. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this Agreement. No implied waiver by a party shall arise in the absence of a waiver in writing signed by such party. No failure or delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power, or privilege hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>GOVERNING LAW AND TIME; WAIVER OF JURY TRIAL</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>CONSENT TO JURISDICTION</u>. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered by facsimile, electronic mail (including pdf) or any electronic signature complying with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Recognition of the U.S. Special Resolution Regimes</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)** In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

As used in this Section 23:

"**BHC Act Affiliate**" has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

"**Covered Entity**" means 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"**Default Right**" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"**U.S. Special Resolution Regime**" means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Construction</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)** The section and exhibit headings herein are for convenience only and shall not affect the construction hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** words defined in the singular shall have a comparable meaning when used in the plural, and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** the words "hereof," "hereto," "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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** wherever the word "include," "includes" or "including" is used in this Agreement, it shall be deemed to be followed by the words "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;**(e)** references herein to any gender shall include each other gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)** references herein to any law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority shall be deemed to refer to such law, statute, ordinance, code, regulation, rule or other requirement of any Governmental Authority as amended, reenacted, supplemented or superseded in whole or in part and in effect from time to time and also to all 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** if the last day for the giving of any notice or the performance of any act required or permitted under this Agreement is a day that is not a Business Day, then the time for the giving of such notice or the performance of such action shall be extended to the next succeeding Business 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h)** "**knowledge**" means, as it pertains to the Company, the actual knowledge of the officers and directors of the Company, together with the knowledge which such officers and directors would have had if they had conducted a reasonable inquiry of the relevant persons into the relevant subject 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;**(i)** "**Governmental Authority**" means (i) any federal, provincial, state, local, municipal, national or international government or governmental authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court, tribunal, arbitrator or arbitral body (public or private); (ii) any self-regulatory organization; or (iii) any political subdivision of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j)** "**Government Bid**" means any quotation, offer, bid or proposal made by the Company or a Subsidiary that, if accepted, would result in or lead to a Government Contract (as defined below). For avoidance of doubt, the term Government Bid includes only quotations, offers, bids or proposals that have not expired and for which award has not been 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;**(k)** "**Government Contract**" means any contract, task order, delivery order, purchase order, grant, program or other binding commitment between the Company or any Subsidiary, on the one hand, and an agency of the United States or an agency of any of its respective States, or any municipality, or an agency of a foreign sovereign or agency of a provincial, regional, or metropolitan government thereof, or any intergovernmental agency or quasi-governmental agency, on the other hand. "Government Contract" also includes any subcontract, subgrant, reseller agreement, or other agreement (at any tier) of the Company or any Subsidiary, (i) with another entity under a prime contract held by the Company or a Subsidiary, and (ii) with another entity that holds either a prime contract or other agreement with such a governmental agency or a subcontract or other agreement (at any tier) under such a prime 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;**(l)** "**Law**" means any and all laws, including all federal, state, local, municipal, national or foreign statutes, codes, ordinances, guidelines, decrees, rules, regulations and by-laws and all judicial, arbitral, administrative, ministerial, departmental or regulatory judgments, orders, directives, decisions, rulings or awards or other requirements of any Governmental Authority, binding on or affecting the person referred to in the context in which the term is used and rules, regulations and policies of any stock exchange on which securities of the Company are listed for trading; 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;**(m)** "**Business Day**" means any day on which the Nasdaq and commercial banks in the City of New York are open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>General Provisions</u>.

Each of the parties hereto acknowledges that it is a sophisticated business person who was adequately represented by counsel during negotiations regarding the provisions hereof, including the indemnification provisions of Section 9 and the contribution provisions of Section 10, and is fully informed regarding said provisions. Each of the parties hereto further acknowledges that the provisions of Section 9 and Section 10 hereof fairly allocate the risks in light of the ability of the parties to investigate the Company, its affairs and its business in order to assure that adequate disclosure has been made in the Registration Statement, any preliminary prospectus, the Time of Sale Prospectus, each free writing prospectus and the Prospectus (and any amendments and supplements to the foregoing), as contemplated by the Securities Act and the Exchange Act.

[***Signature Page Follows***]

If the foregoing correctly sets forth the understanding between the Company and the Underwriters, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Company and the Underwriters.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| THE ELMET GROUP CO. | THE ELMET GROUP CO. |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| ACCEPTED as of the date first-above written: | ACCEPTED as of the date first-above written: |
| CANTOR FITZGERALD & CO. | CANTOR FITZGERALD & CO. |
| By: |  |
|  | Name: |
|  | Title: |
| For itself and the other several Underwriters named in <u>Schedule A</u> to this Agreement. | For itself and the other several Underwriters named in <u>Schedule A</u> to this Agreement. |

---

**SCHEDULE A**

---

| | |
|:---|:---|
| **Underwriters** | **Number of Firm Shares to be Purchased** |
| Cantor Fitzgerald & Co. | [●] |
| Needham & Company, LLC | [●] |
| Canaccord Genuity LLC | [●] |
| Roth Capital Partners, LLC | [●] |
| &nbsp;&nbsp;&nbsp;Total | [●] |

---

**SCHEDULE B**

**<u>Free Writing Prospectuses Included in the Time of Sale Prospectus</u>**

**[None]**

**Schedule C**

**<u>Pricing Information</u>**

Firm Shares: [●]

Over-Allotment Option Shares: [●]

Price to Public: $[●]

Underwriters' Discount: $[●]

**Schedule D**

**<u>Permitted Section 5(d) Communications</u>**

1. -47-

**Exhibit A**

**Form of Lock-up Agreement**

Cantor Fitzgerald & Co.

499 Park Avenue

New York, New York 10022

Attn: Equity Capital Markets

**Re: Proposed Initial Public Offering by The Elmet Group Co.**

Ladies and Gentlemen:

The undersigned, a direct or indirect securityholder and/or officer and/or a director of The Elmet Group Co., a Delaware corporation (the "<u>Company</u>"), understands that the Company proposes to enter into an Underwriting Agreement (the "<u>Underwriting Agreement</u>") with Cantor Fitzgerald & Co., as representative of the several underwriters named therein (the "<u>Representative"</u>) relating to the proposed initial public offering (the "<u>Offering</u>") of shares of the Company's common stock, par value $0.001 per share (the "<u>Common Stock</u>"). The undersigned acknowledges that the underwriters are relying on the representations and agreements of the undersigned contained in this lock-up agreement in conducting the Offering and in entering into the Underwriting Agreement and other related arrangements with the Company with respect to the Offering.

In recognition of the benefit that the Offering will confer upon the undersigned as a securityholder and/or officer and/or a director of the Company, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees that, during the period beginning on the date hereof and ending on the date that is one hundred eighty (180) days from the date of the Underwriting Agreement (the "<u>Lock-Up Period</u>"), the undersigned will not (and will cause any immediate family member not to), without the prior written consent of the Representative, which may withhold its consent in its sole discretion, directly or indirectly, (i) sell, offer to sell, contract to sell or lend, effect any short sale or establish or increase a Put Equivalent Position (as defined in Rule 16a-1(h) under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>")) or liquidate or decrease any Call Equivalent Position (as defined in Rule 16a-1(b) under the Exchange Act), pledge, hypothecate or grant any security interest in, or in any other way transfer or dispose of, any Common Stock or any securities convertible into or exchangeable or exercisable for Common Stock, in each case whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the "<u>Lock-Up Securities</u>"), (ii) make any demand for, or exercise any right with respect to the registration of any of the Lock-Up Securities, or the filing of any registration statement, prospectus or prospectus supplement (or an amendment or supplement thereto) in connection therewith, under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"); provided, however, that nothing herein shall prohibit the filing with the Securities and Exchange Commission by the Company of a registration statement on Form S-8 (or an amendment or supplement thereto) that relates to any of the Lock-Up Securities, (iii) enter into any swap, hedge or any other agreement or any transaction that transfers, in whole or in part, the economic consequence of ownership of the Lock-Up Securities, whether any such swap or transaction is to be settled by delivery of Common Stock or other securities, in cash or otherwise, or (iv) publicly announce the intention to do any of the foregoing.

Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer the Lock-Up Securities pursuant to clauses (i) through (vii) below without the prior written consent of the Representative, <u>provided</u> that (1) prior to any such transfer, the Representative receives a signed lock-up agreement, substantially in the form of this lock-up agreement, for the balance of the Lock-Up Period from each donee, trustee, distributee or transferee, as the case may be, (2) any such transfer shall not involve a disposition for value, (3) in the case of clauses (i) through (vi) below, such transfers are not required to be reported with the Securities and Exchange Commission under the Exchange Act, and (4) the undersigned does not otherwise voluntarily effect any public filing or report regarding such transfers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) as a bona fide gift or gifts; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned (for purposes of this lock-up agreement, "immediate family" shall mean any relationship by blood, marriage or adoption, not more remote than first cousin); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to any corporation, partnership, limited liability company, or other business entity all of the equity holders of which consist of the undersigned and/or the immediate family of the undersigned; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the undersigned is 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 controls, is controlled by or is under common control with the undersigned (with "control" being as defined in Rule 405 under the Securities Act); or (b) in the form of a distribution to limited partners, limited liability company members or stockholders of the undersigned; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if the undersigned is a trust, to the beneficiary of such trust; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi) pursuant to a qualified domestic order or in connection with a divorce settlement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii) by will or intestate succession to the legal representative, heir, beneficiary or immediate family of the undersigned upon the death of the undersigned.

The undersigned further agrees that the foregoing provisions shall be equally applicable to any Common Stock the undersigned may purchase or otherwise receive in the Offering (including pursuant to the Directed Share Program).

The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the Lock-Up Securities except in compliance with the foregoing restrictions.

With respect to the Offering only, the undersigned waives any registration rights relating to registration under the Securities Act of the offer and sale of any shares of Common Stock and/or any options or warrants or other rights to acquire Common Stock or any securities exchangeable or exercisable for or convertible into Common Stock, or to acquire other securities or rights ultimately exchangeable or exercisable for or convertible into Common Stock, owned either of record or beneficially by the undersigned, including any rights to receive notice of the Offering.

In addition, if the undersigned is an officer or director of the Company, (i) the Representative agrees that, at least three (3) business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of Lock-Up Securities, the Representative will notify the Company of the impending release or waiver, and (ii) the Company (in accordance with the provisions of the Underwriting Agreement) will announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release or waiver. Any release or waiver granted by the Representative hereunder to any such officer or director shall only be effective two business days after the publication date of such press release. The provisions of this paragraph will not apply if both (a) the release or waiver is effected solely to permit a transfer not for consideration and (b) the transferee has agreed in writing to be bound by the same terms described in this letter agreement that are applicable to the transferor to the extent and for the duration that such terms remain in effect at the time of the transfer.

The undersigned confirms that the undersigned has not, and has no knowledge that any immediate family member has, directly or indirectly, taken any action designed to or that might reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale of the Common Stock. The undersigned will not, and will cause any immediate family member not to take, directly or indirectly, any such action.

As used herein, "immediate family" shall mean the spouse, domestic partner, lineal descendant, father, mother, brother, sister, or any other person with whom the undersigned has a relationship by blood, marriage or adoption not more remote than first cousin.

The undersigned represents and warrants that the undersigned has full power, capacity and authority to enter into this letter agreement. This letter agreement is irrevocable and will be binding on the undersigned and the successors, heirs, personal representatives and assigns of the undersigned.

This lock-up agreement shall be governed by and construed in accordance with the laws of the State of New York.

Whether or not the Offering actually occurs depends on a number of factors, including market conditions. Any Offering will only be made pursuant to an Underwriting Agreement, the terms of which are subject to negotiation between the Company and the underwriters.

This lock-up agreement shall automatically terminate, and the undersigned shall be released from its obligations hereunder, upon the earliest to occur, if any, of (i) the Company advising the Representative in writing, prior to the execution of the Underwriting Agreement, that it has determined not to proceed with the Offering, (ii) the executed Underwriting Agreement being terminated prior to the closing of the Offering (other than the provisions thereof that survive termination), and (iii) June 30, 2026, in the event that the Underwriting Agreement has not been executed by such date.

[*Signature Page Follows*]

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| Name of Securityholder/Director/Officer | Name of Securityholder/Director/Officer |
| *(Print exact name*) | *(Print exact name*) |
| By: |  |
|  | Signature |
| If not signing in an individual capacity: | If not signing in an individual capacity: |
| Name of Authorized Signatory | Name of Authorized Signatory |
| *(Print*) | *(Print*) |
| Title of Authorized Signatory | Title of Authorized Signatory |
| *(Print and indicate capacity of person signing if signing as custodian, trustee or on behalf of an entity)* | *(Print and indicate capacity of person signing if signing as custodian, trustee or on behalf of an entity)* |

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**Exhibit B**

**Parties to Lock-up Agreement**

**Exhibit C**

**Form of Lock-up Release Announcement**

[Name of Company]

[Date]

[Name of Issuer] (the "**Company**") announced today that Cantor Fitzgerald & Co., the lead book-running manager in the Company's recent public sale of [ ] shares of common stock is [waiving][releasing] a lock-up restriction with respect to [ ] shares of the Company's common stock held by [certain officers or directors] [an officer or director] of the Company. The [waiver][release] will take effect on [ ], 20[ ], and the shares may be sold on or after such date.

**This press release is not an offer for sale of the securities in the United States or in any other jurisdiction where such offer is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended.**

## Exhibit 3.3

**Exhibit 3.3**

**SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF**

**THE ELMET GROUP CO.**

**ARTICLE I<br> NAME OF THE CORPORATION**

The name of the corporation is The Elmet Group Co. (the "**Corporation**").

**ARTICLE II**

**REGISTERED AGENT**

The address of the registered office of the Corporation in the State of Delaware is at 16192 Coastal Highway, Lewes, Delaware 19958, County of Sussex. The name of its registered agent at such address is Harvard Business Services, Inc.

**ARTICLE III<br> BUSINESS PURPOSE**

The nature of the business or purposes to be conducted or promoted by 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 "**DGCL**").

**ARTICLE IV<br> CAPITAL STOCK**

**Section 4.01 Authorized Classes of Stock**. The total number of shares of capital stock of all classes of capital stock that the Corporation is authorized to issue is five hundred and sixty million (560,000,000) shares, par value $0.001 per share, of 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;(a) five hundred forty million (540,000,000) shall be shares of common stock (the "**Common Stock**"); 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) twenty million (20,000,000) shares shall be shares of preferred stock ("**Preferred Stock**").

**Upon the effective time of the filing of this Second Amended and Restated Certificate of Incorporation (the "Effective Time"), and without any further action of the Corporation or any stockholder of the Corporation, each share of Class A Common Stock, par value $0.001 per share of the Corporation and each share of Class B Common Stock, par value $0.001 per share of the Corporation that is issued and outstanding immediately prior to the Effective Time (the "Former Common Stock") shall be automatically reclassified and converted into one (1) share of a single class of Common Stock and both series of Former Common Stock shall be consolidated into a single class of Common Stock of the Corporation. Each stock certificate or book-entry position that, immediately prior to the Effective Time, represented shares of Former Common Stock shall, from and after the Effective Time, automatically and without the necessity of presenting the same for the exchange, represent that number of shares of Class A Common Stock into which the shares formerly represented by such certificate or book-entry position have been automatically reclassified and converted pursuant to this <u>Article IV</u>.** 

**Section 4.02 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;(a) <u>General; Equal Status</u>. Except as otherwise provided in this Article IV or required by applicable law, shares of Common Stock shall have the same rights, privileges, preferences and powers, rank equally, share ratably and be identical in all respects and as to all matters. The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the rights, powers and privileges of any series of Preferred Stock as may be designated by the Board of Directors of the Corporation (the "**Board of Directors**") and outstanding at any 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;(b) <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;(i) Except as required by applicable law, each share of Common Stock shall entitle the holder to one (1) vote for each share of Common Stock held of record on any matter submitted to the stockholders of the Corporation for a vote or approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Unless required by applicable law, there shall be no cumulative voting. The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by (in addition to any vote of the holders of one or more series of Preferred Stock entitled to vote thereon) the affirmative vote of the holders of a majority in voting power of the outstanding shares of capital stock of the Corporation entitled to vote thereon, irrespective of the provisions of Section 242(b)(2) of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Except as otherwise required by applicable law, holders of Common Stock shall not be entitled to vote on any amendment to this Second Amended and Restated Certificate of Incorporation (including any certificate of designation relating to any series of Preferred Stock) 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 Second Amended and Restated Certificate of Incorporation (including any certificate of designation relating to any series of Preferred Stock) or pursuant to the DGCL.

&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>Dividends</u>. Subject to applicable law and the rights, if any, of the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference senior to or the right to participate with the Common Stock with respect to the payment of dividends, such dividends and other distributions of cash, stock or property may be declared and paid on the Common Stock out of the assets of the Corporation that are by law available therefor, at the times and in the amounts as the Board in its discretion may determine.

&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>Liquidation, Dissolution, Etc</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of the Corporation, after payment or provision for payment of the debts and other liabilities of the Corporation and of the preferential and other amounts, if any, to which the holders of Preferred Stock are entitled, if any, the holders of all outstanding shares of Common Stock will be entitled to receive, *pari passu*, an amount per share equal to the par value thereof, and thereafter the holders of all outstanding shares of Common Stock will be entitled to receive the remaining assets of the Corporation available for distribution ratably in proportion to the number of 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;(e) <u>Preemptive or Subscription Rights</u>. No holders of shares of Common Stock shall be entitled to preemptive or subscription rights.

**Section 4.03 Preferred Stock**. The Board of Directors is hereby authorized to provide, out of the unissued shares of Preferred Stock, for one or more series of Preferred Stock and, with respect to each such series, to fix the number of shares constituting such series and the designation of such series, the voting powers, if any, of the shares of such series, and the preferences and relative, participating, optional, or other special rights, if any, and any qualifications, limitations, or restrictions thereof, of the shares of such series, as shall be stated in the resolution or resolutions providing for the issuance of such series adopted by the Board of Directors. The authority of the Board with respect to each series of Preferred Stock shall include, but not be limited to, determination 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) the designation of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of shares of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the dividend rate or rates on the shares of that series, whether dividends will be cumulative, and if so, from which date or dates, and the relative rights of priority, if any, of payment of dividends on shares of that series;

&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) whether the series will have voting rights in addition to the voting rights provided by law, and, if so, the terms of such voting 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;(e) whether the series will have conversion privileges, and, if so, the terms and conditions of such conversion, including provision for adjustment of the conversion rate in such events as the Board of Directors shall determine;

&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) whether or not the shares of that series shall be redeemable, in whole or in part, at the option of the Corporation or the holder thereof, and if made subject to such redemption, the terms and conditions of such redemption, including the date or dates upon or after which they shall be redeemable, and the amount per share payable in case of redemptions, which amount may vary under different conditions and at different redemption rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the terms and amount of any sinking fund provided for the purchase or redemption of the shares of such series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the rights of the shares of that series in the event of voluntary or involuntary liquidation, dissolution, or winding up of the Corporation, and the relative rights of priority, if any, of payment of shares of that series;

&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 restrictions, if any, on the issue or reissue of any additional Preferred Stock; 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;(j) any other relative rights, preferences, and limitations of that series.

**Section 4.04 Options, Warrants & 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;(a) The Corporation may issue options, warrants and rights for the purchase of shares of any class or series of the Corporation. The Board of Directors, in its sole discretion, shall determine the terms and conditions on which the options, warrants or rights are issued, their form and content and the consideration for which, and terms and conditions upon which, such securities or any underlying class or series of shares of the Corporation are to be 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;(b) The terms and conditions of rights or options to purchase shares of any class or series of the Corporation may include, without limitation, restrictions or conditions that preclude or limit the exercise, transfer, receipt or holding of such rights or options by any person or persons, including any person or persons owning (beneficially or of record) or offering to acquire a specified number or percentage of the outstanding shares of any class or series, or any transferee or transferees of any such person or persons, or that invalidate or void such rights or options held by any such person or persons or any such transferee or transferees.

**ARTICLE V<br> BOARD OF DIRECTORS**

**Section 5.01 General Powers.** The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors and the directors are empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation.

**Section 5.02 Number.** Subject to any rights of the holders of any series of Preferred Stock to elect additional directors under specified circumstances, the number of directors of the Corporation which shall constitute the entire Board of Directors shall be as fixed from time to time in accordance with the bylaws of the Corporation (the "**Bylaws**").

**Section 5.03 Organization of the Board.** Subject to the special rights of the holders of any series of Preferred Stock to elect directors, the directors shall be divided, with respect to the time for which they severally hold office, into three classes designated as Class I, Class II and Class III, respectively (the "**Classified Board**"). The Board is authorized to assign members of the Board already in office to such classes of the Classified Board, which assignments shall become effective at the same time the Classified Board becomes effective. Directors shall be assigned to each class in accordance with a resolution or resolutions adopted by the Board, with the number of directors in each class to be divided as nearly equal as reasonably possible. The initial term of office of the Class I directors shall expire at the Corporation's annual meeting of stockholders to be held in 2027, the initial term of office of the Class II directors shall expire at the Corporation's annual meeting of stockholders to be held in 2028 and the initial term of office of the Class III directors shall expire at the Corporation's annual meeting of stockholders to be held in 2029. Thereafter, directors elected to succeed those directors of the class whose terms then expire shall be elected for a term of office to expire at the third succeeding annual meeting of stockholders after their election. In the event of any increase or decrease in the authorized number of directors (a) each director then serving as such shall nevertheless continue as a director of the class of which the director is a member and (b) the newly created or eliminated directorships resulting from such increase or decrease shall be apportioned by the Board of Directors among the three classes of directors so as to ensure that no one class has more than one director more than any other class.

**Section 5.04 Term and Removal**. Each director shall hold office until the annual meeting at which such director's term expires and until such director's successor is elected and qualified, or until such director's earlier death, resignation, disqualification or removal. Any director may resign at any time upon notice to the Corporation given in writing or by any electronic transmission permitted by the Bylaws. Subject to the special rights of the holders of any series of Preferred Stock, a director may be removed, whether for cause or without cause, from the Board of Directors only by the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of the then-outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors voting together as a single class. In the event of any increase or decrease in the authorized number of directors, (a) each director then serving as such shall nevertheless continue as a director of the class of which the director is a member and (b) the newly created or eliminated directorships resulting from such increase or decrease shall be apportioned by the Board of Directors among the classes of directors so as to ensure that no one class has more than one director more than any other class. To the extent possible, consistent with the foregoing rule, any newly created directorships shall be added to those classes whose terms of office are to expire at the latest dates following such allocation, and any newly eliminated directorships shall be subtracted from those classes whose terms of office are to expire at the earliest dates following such allocation, unless otherwise provided from time to time by resolution adopted by the Board of Directors. No decrease in the authorized number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

**Section 5.05 Newly Created Directorships and Vacancies**. Except as otherwise required by law and subject to any rights of the holders of any series of Preferred Stock to elect directors under specified circumstances, any newly created directorships resulting from an increase in the authorized number of directors and any vacancies occurring in the Board of Directors, shall, unless (a) the Board of Directors determines by resolution that any such vacancies or newly created directorships shall be filled by the stockholders or (b) as otherwise provided by law, be filled solely by the affirmative votes of a majority of the remaining members of the Board of Directors, although less than a quorum, or by a sole remaining director, and not by the stockholders. Any director so elected shall be elected to hold office for a term expiring at the annual meeting of stockholders at which the term of office of the class to which the director has been assigned expires or until such director's successor shall have been duly elected and qualified, or the earlier of such director's death, resignation, or removal. No decrease in the authorized number of directors shall shorten the term of any incumbent director.

**Section 5.06 Written Ballot.** Unless and except to the extent that the Bylaws shall so require, the election of directors of the Corporation need not be by written ballot.

**ARTICLE VI<br> LIMITATION OF LIABILITY; INDEMNIFICATION**

**Section 6.01 Limitation of Liability.** To the fullest extent permitted by the DGCL as it presently exists or may hereafter be amended, a director or officer of the Corporation shall not be personally liable to the Corporation or to its stockholders for monetary damages for any breach of fiduciary duty as a director or officer. No amendment to, modification of, or repeal of this Section 6.01 shall apply to or have any effect on the liability or alleged liability of any director of the Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment.

**Section 6.02 Indemnification**. The Corporation shall indemnify and advance expenses to the fullest extent permitted by law as it presently exists or may hereafter be amended any person made or threatened to be made a party to an action or proceeding, whether criminal, civil, administrative, or investigative, by reason of the fact that such person, or such person's testator or intestate, is or was a director or officer of the Corporation or any predecessor of the Corporation, or serves or served at any other enterprise as a director or officer at the request of the Corporation or any predecessor to the Corporation. Any amendment, repeal, or modification of this Section 6.02 shall not adversely affect any right or protection hereunder of any person in respect of any act or omission occurring prior to the time of such repeal or modification.

**ARTICLE VII<br> CERTAIN STOCKHOLDER ACTION**

**Section 7.01 Special Meetings of Stockholders**. Except as otherwise required by law and subject to the rights of the holders of any series of Preferred Stock, special meetings of the stockholders of the Corporation shall be called only by the Board of Directors and may not be called by any other person or persons. Only such business shall be considered at a special meeting of stockholders as shall have been stated in the notice for such meeting.

**Section 7.02 Stockholder Nominations**. Advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders of the Corporation shall be given in the manner and to the extent provided in the Bylaws.

**ARTICLE VIII<br> BYLAWS**

**Section 8.01 Board of Directors.** In furtherance and not in limitation of the powers conferred by law, the Board of Directors is expressly authorized and empowered to adopt, amend, alter, or repeal the Bylaws without any action on the part of the stockholders.

**Section 8.02 Stockholders**. The stockholders shall also have the power to adopt, amend, alter, or repeal the Bylaws; provided that, in addition to any affirmative vote of the holders of any particular class or series of capital stock of the Corporation required by applicable law or this Second Amended and Restated Certificate of Incorporation, such adoption, amendment, alteration, or repeal shall be approved by the affirmative vote of the holders of at least two thirds (2/3) of the voting power of the shares of the then outstanding voting stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

**ARTICLE IX<br> CERTAIN GOVERNANCE MATTERS**

**Section 9.01** The following provisions are inserted for the management of the business and for the conduct of the affairs of the Corporation, and for further definition, limitation and regulation of the powers of the Corporation and of its directors and stockholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No contract or other transaction between the Corporation and one or more of its directors, or between the Corporation and any other corporation, firm, association or other entity in which one or more of the directors are directors or officers, or are financially interested, shall be either void or voidable because of such relationship or interest or because such director or directors are present at the meeting of the Board of Directors or a committee thereof which authorizes, approves or ratifies such contract or transaction or because his or her votes are counted for such purpose, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 fact of such relationship or interest is disclosed or known to the Board of Directors, or a duly empowered committee thereof, which authorizes, approves or ratifies the contract or transaction by a vote or consent sufficient for such purpose without counting the vote or votes of such interested director or 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;(ii) The fact of such relationship or interest is disclosed or known to the stockholders entitled to vote and they authorize, approve or ratify such contract or transaction by vote or written consent; 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;(iii) The contract or transaction is fair and reasonable as to the Corporation at the time it is authorized by the Board of Directors, committee or 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;(b) Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors or a committee thereof which authorizes, approves or ratifies a contract or transaction described in paragraph (d) of this Article IX.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A director of the Corporation may transact business, borrow, lend, or otherwise deal or contract with the Corporation to the fullest extent and subject only to the limitations and provisions of the laws of the State of Delaware and the laws of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Board of Directors in its sole discretion may (but shall not be required to) submit any contract or act for approval or ratification at any annual meeting of the stockholders or at any meeting of the stockholders called for the purpose of considering any such act or contract, and any contract or act that shall be approved or be ratified by the vote of the holders of a majority of the stock of the Corporation which is represented in person or by proxy at such meeting and entitled to vote thereat (provided that a lawful quorum of stockholders be there represented in person or by proxy) shall be as valid and binding upon the Corporation and upon all the stockholders as though it had been approved or ratified by every stockholder of the Corporation, whether or not the contract or act would otherwise be open to legal attack because of directors' interests, or for any other reason.

&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) In addition to the powers and authorities hereinbefore or by statute expressly conferred upon them, the directors are hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation; subject, nevertheless, to the provisions of the statutes of Delaware, of this Certificate of Incorporation, and to any bylaws from time to time made by the stockholders; <u>provided</u>, <u>however</u>, that no bylaw so made shall invalidate any prior act of the directors which would have been valid if such bylaw had not been 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;(f) Whenever a compromise or arrangement is proposed between the Corporation and its creditors or any class of them and/or between the Corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a summary way of the Corporation or of any creditor or stockholder thereof or on the application of any receiver or receivers appointed for the Corporation under Section 291 of Title 8 of the Delaware Code or on the application of trustees in dissolution or of any receiver or receivers appointed for the Corporation under Section 279 of Title 8 of the Delaware Code order a meeting of the creditors or class of creditors, and/or of the stockholders or class of stockholders of the Corporation, as the case may be, to be summoned in such manner as the said court directs. If a majority in number representing three fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of the Corporation as a consequence of such compromise or arrangement, the said compromise or arrangement and the said reorganization shall, if sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all the stockholders or class of stockholders, of the Corporation, as the case may be, and also on the Corporation.

**ARTICLE X<br> EXCLUSIVE FORUM**

**Section 10.01** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery (the "Chancery Court") 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) and any appellate court thereof (the "**Chosen Courts**") 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, employee 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, the Bylaws or this Second Amended and Restated Certificate of Incorporation (as any of the foregoing may be amended from time to time), (iv) any action, suit or proceeding as to which the DGCL confers jurisdiction on the Chancery Court, or (v) any action, suit or proceeding asserting a claim governed by the internal affairs doctrine. If any action, suit or proceeding the subject matter of which is within the scope of the immediately preceding sentence is filed in a court other than the Chosen Courts (a "**Foreign Action**") in the name of any stockholder, such stockholder shall be deemed to have consented to (a) the personal jurisdiction of the Chosen Courts in connection with any action brought in any such court to enforce the provisions of the immediately preceding sentence and (b) 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.

&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) Unless the Corporation consents 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 shall be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended (and as may be further amended 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;(d) Any person or entity purchasing or otherwise acquiring or holding any interest in any security of the Corporation (including, but not limited to, shares of capital stock of the Corporation) shall be deemed to have notice of and consented to the provisions of this Article X.

**ARTICLE XI**

**POWER TO AMEND OR REPEAL**

**Section 11.01** The Corporation reserves the right to amend or repeal any provision contained in this Second Amended and Restated Certificate of Incorporation in the manner prescribed by the laws of the State of Delaware and all rights conferred upon stockholders are granted subject to this reservation; provided, however, that, notwithstanding any other provision of this Second Amended and Restated Certificate of Incorporation (including any Certificate of Designation) or any provision of law that might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock of the Corporation required by law or by this Second Amended and Restated Certificate of Incorporation (including any Certificate of Designation), and subject to Sections 4.01 and 4.03 hereof, the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all of the then-outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend or repeal or adopt any provision inconsistent with Article V hereof.

## Exhibit 4.1

**Exhibit 4.1**

**Form of Broker's Warrant**

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

THE REGISTERED HOLDER OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE PRICING DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

THIS PURCHASE WARRANT IS NOT EXERCISABLE PRIOR TO **XXXXXXXX,** 2026, AND IS VOID AFTER 5:00 P.M., EASTERN TIME, ON **XXXXXXX**, 2030.

**COMMON STOCK PURCHASE WARRANT**

For the Purchase of [●] Shares of Common Stock

of

The Elmet Group Co.

1. <u>Purchase Warrant</u>. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of Cantor Fitzgerald & Co. ("**Holder**"), as registered owner of this Purchase Warrant, to The Elmet Group Co., a Delaware corporation (the "**Company**"), Holder is entitled, at any time or from time to time from **XXXXXXXX<sup>1</sup>,** 2026 (the "**Commencement Date**"), and at or before 5:00 p.m., New York City time, **XXXXXXX<sup>2</sup>**, 2030 (the "**Expiration Date**"), but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to [●]<sup>3</sup> shares of common stock of the Company, par value $0.001 per share (the "**Common Stock**"), subject to adjustment as provided in <u>Section 6</u> hereof. If the Expiration Date is a day on which banking institutions in the State of New York are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period commencing on the Pricing Date and ending on the Expiration Date, the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at **$**[●] per share of Common Stock<sup>4</sup>; *provided, however*, that upon the occurrence of any of the events specified in <u>Section 6</u> hereof, the rights granted by this Purchase Warrant, including the exercise price per share of Common Stock and the number of shares of Common Stock to be received upon such exercise, shall be adjusted as therein specified. The term "**Exercise Price**" shall mean the initial exercise price or the adjusted exercise price, depending on the context. The term "**Pricing Date**" shall mean **XXXXXX**, 2026, the date of pricing of the initial public offering of Common Stock by the Company (the "**Offering**"), pursuant to the Registration Statement on Form S-1 (File No. 333-**XXXXX**) of the Company. All references to amounts of money in this Purchase Warrant are to the lawful money of the United States.

<sup>1</sup> **NTD**: 180 days from commencement of sales.

<sup>2</sup> **NTD**: 4 years from closing date.

<sup>3</sup> **NTD**: 1.5% of number of shares offered.

<sup>4</sup> **NTD**: 125% of per share IPO price.

2. <u>Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Exercise Form</u>. In order to exercise this Purchase Warrant, the exercise form attached hereto as Schedule "A" (the "**Notice of Exercise**") must be duly executed and completed and delivered to the Company, together with this Purchase Warrant and payment of the aggregate Exercise Price for the number of shares of Common Stock being purchased payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or official bank check unless the cashless exercise procedure specified in <u>Section 2.2</u> below is specified in the applicable Notice of Exercise. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented hereby shall cease and expire. Each exercise hereof shall be irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Cashless Exercise</u>. In lieu of exercising this Purchase Warrant by payment by wire transfer or cashier's check pursuant to <u>Section 2.1</u> above, this Purchase Warrant may also be exercised, in whole or in part, at the Holder's option, at such time by means of a "cashless exercise" in which the Holder shall be entitled to receive the number of shares of Common Stock equal to the quotient obtained by dividing [(A-B)\*(X)] by (A), where:

(A) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to <u>Section 2.1</u> hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to <u>Section 2.1</u> hereof on a Trading Day prior to the opening of "regular trading hours" (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws, "**Regular Trading Hours**") on such Trading Day, (ii) at the option of the Holder, either (x) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise, or (y) the Bid Price per share of Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder's execution of the applicable Notice of Exercise if such Notice of Exercise is executed during "regular trading hours" on a Trading Day and is delivered within two hours thereafter (including until two hours after the close of Regular Trading Hours on a Trading Day) pursuant to <u>Section 2.1</u> hereof, which Bid Price shall be shown on supporting documents provided by the Holder to the Company concurrently with, or as soon as practicable, after, the delivery of the Notice of Exercise, or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to <u>Section 2.1</u> hereof after the close of Regular Trading Hours on such Trading Day;

(B) = the Exercise Price of this Purchase Warrant, as adjusted hereunder; and

(X) = the number of shares of Common Stock that would be issuable upon exercise of this Purchase Warrant in accordance with the terms of this Purchase Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

If shares of Common Stock are issued in such a "cashless exercise", the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act of 1933, as amended (the "**Securities Act**"), the shares of Common Stock shall take on the securities law characteristics of the Purchase Warrants being exercised, and the holding period of the Purchase Warrants being exercised may be tacked on to the holding period of the shares of Common Stock. The Company agrees not to take any position contrary to this <u>Section 2.2</u>. For the avoidance of doubt, this Purchase Warrant may only be exercised by the Holder pursuant to a "cashless exercise" if, at the time of exercise hereof, a registration statement registering the issuance of the shares of Common Stock purchased hereunder under the Securities Act is not effective or available for the issuance of all of the Warrant Shares to the Holder or for the immediate resale of all of the Warrant Shares by the Holder.

"**Bid Price**" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price per share of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)), (b) if the Common Stock is then quoted on the OTCQB or OTCQX but not listed on any Trading Market, the volume weighted average price per share of Common Stock for such date (or the nearest preceding date) on the OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on any Trading Market, the OTCQB or OTCQX and if prices for the Common Stock are then reported on the OTC Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of Common Stock so reported, or (d) in all other cases, the fair market value per share of the Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

"**Trading Day**" means a day on which the Trading Market is open for trading.

"**Trading Market**" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing).

"**VWAP**" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price per share of Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)), (b) if the Common Stock is then quoted on the OTCQB or OTCQX but not listed on any Trading Market, the volume weighted average price per share of Common Stock for such date (or the nearest preceding date) on the OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on the OTCQB or OTCQX and if prices for the Common Stock are then reported on the OTC Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the daily volume weighted average price per share of the Common Stock for such date (or the nearest preceding date), or (d) in all other cases, the fair market value per share of the Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Mechanics of Exercise.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. <u>Delivery of Common Stock Upon Exercise</u>. The Company shall cause the shares of Common Stock purchased hereunder to be transmitted by its transfer agent to the Holder by crediting the account of the Holder's or its designee's balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system ("**DWAC**") if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the shares of Common Stock to or resale of the shares of Common Stock by the Holder, or (B) the shares of Common Stock are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144, and otherwise by issuance of such shares of Common Stock, registered in the Company's share register in the name of the Holder or its designee, equal to the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise, within one (1) Trading Day after the delivery to the Company of the Notice of Exercise (the "**Exercise Date**") together with the applicable aggregate Exercise Price or if the Exercise Notice and payment of the Exercise Price are delivered after trading hours on the Principal Trading Market on the Exercise Date, then no later than two Trading Days after the Exercise Date (unless the cashless exercise procedure is specified in the applicable Notice of Exercise) (such date, the "**Warrant Share Delivery Date**"). If the shares of Common Stock can be delivered via DWAC, the transfer agent shall have received from the Company, at the expense of the Company, any legal opinions or other documentation required by it to deliver such Warrant Shares without legend (subject to timely receipt by the Company of reasonable back up documentation from the Holder, including with respect to affiliate status) and, if applicable and requested by the Company prior to the Warrant Share Delivery Date, the transfer agent shall have received from the Holder a confirmation of sale of the shares of Common Stock (provided the requirement of the Holder to provide a confirmation as to the sale of Common Stock shall not be applicable to the issuance of unlegended shares of Common Stock upon a cashless exercise of this Purchase Warrant if the shares of Common Stock are then eligible for resale pursuant to Rule 144(b)(l)). The shares of Common Stock shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Notice of Exercise is delivered to the Company, concurrently with payment to the Company of the aggregate Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to <u>Section 2.3.6</u> prior to the issuance of such shares, having been paid. If the Company fails for any reason to deliver to the Holder the shares of Common Stock subject to a Notice of Exercise by the second Trading Day following the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of shares of Common Stock subject to such exercise (based on the VWAP per share of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after the second Trading Day following such Warrant Share Delivery Date until such shares of Common Stock are delivered or Holder rescinds such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.3.2. <u>Delivery of New Warrants Upon Exercise</u>. If this Purchase Warrant shall have been exercised in part, the Company shall, at the request of the Holder and upon surrender of this Purchase Warrant certificate, at the time of delivery of the shares of Common Stock, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased shares of Common Stock called for by this Purchase Warrant, which new Warrant shall in all other respects be identical with this Purchase Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. <u>Rescission Rights</u>. If the Company fails to cause its transfer agent to deliver to the Holder the shares of Common Stock pursuant to <u>Section 2.3.1</u> by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise; provided, however, that the Holder shall be required to return any shares of Common Stock subject to any such rescinded exercise notice concurrently with the return to Holder of the aggregate Exercise Price paid to the Company for such shares of Common Stock and the restoration of Holder's right to acquire such shares of Common Stock pursuant to this Purchase Warrant (including, issuance of a replacement warrant certificate evidencing such restored right).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.4. <u>Compensation for Buy-In on Failure to Timely Deliver Common Stock Upon Exercise</u>. In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder the shares of Common Stock in accordance with the provisions of <u>Section 2.3.1</u> hereof pursuant to an exercise on or before the Warrant Share Delivery Date (other than any failure that is solely due to any action or inaction by the Holder with respect to such exercise), and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder's brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the shares of Common Stock which the Holder anticipated receiving upon such exercise (a "**Buy-In**"), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of shares of Common Stock that the Company was required to deliver to the Holder in connection with the exercise at issue, by (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Purchase Warrant and equivalent number of shares of Common Stock for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit the Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver shares of Common Stock upon exercise of the Purchase Warrant as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.5. <u>No Fractional Shares of Common Stock or Scrip</u>. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Purchase Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either (a) pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or (b) round up to the next whole share if such fraction is greater than or equal to one-half or round down to the next whole share if such fraction is less than one-half.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.6. <u>Charges, Taxes and Expenses</u>. Issuance of Common Stock shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such shares of Common Stock, all of which issue or transfer taxes and expenses shall be paid by the Company, and such shares of Common Stock shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; <u>provided</u>, <u>however</u>, that in the event that shares of Common Stock are to be issued in a name other than the name of the Holder, this Purchase Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto as Schedule "B" duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all transfer agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.7. <u>Closing of Books</u>. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Purchase Warrant, pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.8. <u>Signature</u>. This <u>Section 2</u> and the exercise form attached hereto set forth the totality of the procedures required of the Holder in order to exercise this Purchase Warrant. Without limiting the preceding sentences, no ink-original exercise form shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of the exercise form be required in order to exercise this Purchase Warrant, subject to the requirements of the Company's transfer agent. The Company shall honor exercises of this Purchase Warrant and shall deliver the shares of Common Stock underlying this Purchase Warrant in accordance with the terms, conditions and time periods set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <u>Holder's Exercise Limitations</u>. The Company shall not effect any exercise of this Purchase Warrant, and the Holder shall not have the right to exercise any portion of this Purchase Warrant, pursuant to <u>Section 2</u> or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder's Affiliates (as defined below), and any other Persons (as defined below) acting as a group together with the Holder or any of the Holder's affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Purchase Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Purchase Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents (as defined below)) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this <u>Section 2.4</u>, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**") and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this <u>Section 2.4</u> applies, the determination of whether this Purchase Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Purchase Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder's determination of whether this Purchase Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Purchase Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this <u>Section 2.4</u>, in determining the number of shares of outstanding Common Stock, the Holder may rely on the number of shares of outstanding Common Stock as reflected in (A) the Company's most recent periodic or annual report filed with the Securities and Exchange Commission (the "**Commission**"), as the case may be, (B) a more recent public announcement by the Company, or (C) a more recent written notice by the Company or the Company's transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of the Holder, the Company shall within two Trading Days (as defined herein) confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Purchase Warrant, by the Holder or its Affiliates since the date as of which such number of shares of outstanding Common Stock was reported. The "<u>Beneficial Ownership Limitation</u>" shall be 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of the shares of Common Stock issuable upon exercise of this Purchase Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this <u>Section 2.4</u>, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Purchase Warrant held by the Holder and the provisions of this <u>Section 2.4</u> shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this <u>Section 2.4</u> to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Purchase Warrant.

"**Affiliate**" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

"**Common Stock Equivalents**" means any securities of the Company that would entitle the holder thereof to acquire shares of Common Stock.

"**Person**" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <u>Legend</u>. Each security purchased under this Purchase Warrant shall bear a legend as follows unless such securities have been registered under the Securities Act:

"NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES."

3. <u>Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>General Restrictions</u>. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder will not, for a period of 180 days following the Pricing Date: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant or any of the securities issuable hereunder to anyone other than: (i) an underwriter or a selected dealer participating in the Offering, or (ii) a *bona fide* officer or partner of any such underwriter or selected dealer, in each case in accordance with FINRA Rule 5110(e)(2)(B)(i), or (b) cause this Purchase Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(e)(2). On and after 180 days after the Pricing Date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five (5) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of shares of Common Stock purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Restrictions Imposed by the Securities Act</u>. The securities evidenced by this Purchase Warrant shall not be transferred unless and until: (i) the Company has received an opinion of counsel that the securities may be transferred pursuant to an exemption from registration under the Securities Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of the Company, or (ii) a registration statement or a post-effective amendment to the Registration Statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the Commission and compliance with applicable state securities law has been established.

4. <u>Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Demand Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1. <u>Definition</u>. This Purchase Warrant is being issued pursuant to the terms of the Engagement Letter dated October 23, 2025 by and between the Company and the Representative (as defined in the Underwriting Agreement, dated **XXXXXX**, 2026, by and among the Company and the underwriters named therein (the "**Underwriting Agreement**")). The Representative, as the initial Holder of this Purchase Warrant, will receive warrants exercisable for the number of shares of Common Stock equal to 1.5% of the total number of shares of Common Stock (the "**Broker's Warrants**" and the shares underlying such Broker's Warrants, the "**Underlying Shares**") sold and issued pursuant to the Underwriting Agreement. For purposes of this Section 4 only, the term "Holders" shall not refer to the Holder of this particular Purchase Warrant but will refer instead to the Holders of the Broker's Warrants, collectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2. <u>Grant of Right</u>. The Company, upon written demand (a "**Demand Notice**") of the Holders whose Broker's Warrants can be exercisable for at least 51% of the Underlying Shares, agrees to register, on one occasion, all or any portion of the shares of Common Stock underlying the Broker's Warrants (collectively, the "**Registrable Securities**"). On such occasion, the Company will file a registration statement with the Commission covering the Registrable Securities within sixty (60) days after receipt of a Demand Notice and use its reasonable best efforts to have the registration statement declared effective promptly thereafter, subject to compliance with review by the Commission; <u>provided</u>, <u>however</u>, that the Company shall not be required to comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holders is entitled to piggyback registration rights pursuant to <u>Section 4.2</u> hereof and either: (i) a Holder has elected to participate in the offering covered by such registration statement, or (ii) if such registration statement relates to an underwritten primary offering of securities of the Company, until the offering covered by such registration statement has been withdrawn or until 30 days after such offering is consummated, subject to any contractual standstill provisions contained in the associated underwriting agreement in connection with the respective underwritten primary offering. In the event that a Demand Notice is provided and the Company fails to comply with such Demand Notice pursuant to clause (i) or (ii) above, such Demand Notice will not be considered the one (1) occasion under this <u>Section 4.1.2</u>. The Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holders to all other registered Holders of the Broker's Warrants and/or the Registrable Securities within ten (10) days after the date of the receipt of any such Demand Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3. <u>Terms</u>. The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to <u>Section 4.1.2</u>, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts to cause the filing required herein to become effective promptly and to qualify or register the Registrable Securities in such states as are reasonably requested by the Holders; <u>provided</u>, <u>however</u>, that in no event shall the Company be required to register the Registrable Securities in a State in which such registration would cause: the Company to be obligated to register or license to do business in such State or submit to general service of process in such State. The Company shall cause any registration statement filed pursuant to the demand right granted under <u>Section 4.1.2</u> hereof to remain effective for a period of at least 12 consecutive months after the date that the Holders of the Registrable Securities covered by such registration statement are first given the opportunity to sell all of such securities. The Holders shall only use the prospectuses provided by the Company to sell the shares covered by such registration statement, and will immediately cease to use any prospectus furnished by the Company if the Company advises the Holders that such prospectus may no longer be used due to a material misstatement or omission. Notwithstanding the provisions of this <u>Section 4</u>, the Holders shall be entitled to a demand registration under this <u>Section 4</u> on only one occasion and such demand registration right shall terminate on the five-year anniversary of the Pricing Date in accordance with FINRA Rule 5110(g)(8)(B)-(C).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>"Piggy-Back" Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1. <u>Grant of Right</u>. In addition to the demand right of registration described in <u>Section 4.1</u> hereof, the Holder shall have the right, for a period of no more than five years from the Pricing Date in accordance with FINRA Rule 5110(g)(8)(D), to include the Registrable Securities as part of any other registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form S-8 or Form S-4 or any equivalent form); <u>provided</u>, <u>however</u>, that, if, solely in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on the number of shares of Common Stock which may be included in such Registration Statement because, in such underwriter(s)' judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable Securities sought to be included by such Holders; <u>provided</u>, <u>however</u>, that the Company shall not exclude any Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2. <u>Terms</u>. The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to <u>Section 4.2.1</u> hereof, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Registrable Securities with not less than thirty (30) days' written notice prior to the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration statement filed by the Company until such time as all of the Registrable Securities have been registered for issuance to the Holders or resale by the Holders. The Holders of the Registrable Securities shall exercise the "piggy-back" rights provided for herein by giving written notice within ten (10) days of the receipt of the Company's notice of its intention to file a registration statement. Except as otherwise provided in this Purchase Warrant, there shall be no limit on the number of times the Holder may request registration under this <u>Section 4.2.2</u>; <u>provided</u>, <u>however</u>, that such registration rights shall terminate on the five-year anniversary of the Pricing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>General Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1. <u>Indemnification</u>. The Company shall indemnify the Holders of the Registrable Securities to be sold pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify the Underwriters contained in Section 9(a) of the Underwriting Agreement. The Holders of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, its directors and officers, and each person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in Section 9(b) of the Underwriting Agreement pursuant to which the Underwriters have agreed to indemnify the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2. <u>Exercise of Purchase Warrants</u>. Nothing contained in this Purchase Warrant shall be construed as requiring the Holders to exercise their Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3. <u>Documents Delivered to Underwriters</u>. To the extent a registration of some or all of the Registrable Securities is made under Section 4.1.2 and such registered offering is an underwritten public offering, the Company shall use commercially reasonable efforts to facilitate such underwritten public offering of such Registrable Securities, including but not limited to furnishing to the underwriters of any such offering a signed counterpart, addressed to the managing underwriters, of: (i) an opinion of counsel to the Company, dated the date of the closing of such underwritten public offering, and (ii) a "cold comfort" letter dated the date of the pricing of such underwritten public offering and a letter dated the date of the closing of such underwritten public offering signed by the independent registered public accounting firm which has issued a report on the Company's financial statements included in such registration statement, in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of such accountants' letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer's counsel and in accountants' letters delivered to underwriters in underwritten public offerings of securities. The Holders whose Registrable Securities are subject to the underwritten public offering shall agree to reimburse the Company for the reasonable costs incurred by the Company, not to exceed $25,000, to deliver such opinion of counsel and comfort letters, to the extent that such costs are incurred due to the underwritten nature of the registered offering. All other costs and expenses related to the registration of such Registrable Securities shall be borne by the parties as set forth in <u>Section 4.1.3</u> hereof. The Company shall also deliver promptly to the managing underwriter, if any, copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda or summaries relating to discussions with the Commission or its staff with respect to the registration statement and permit such underwriters to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws or rules of FINRA. Such investigation shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times as any such managing underwriter shall reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.4. <u>Underwriting Agreement</u>. To the extent a registration of some or all of the Registrable Securities is made under Section 4.1.2 and such registered offering is an underwritten public offering, the Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any Holders whose Registrable Securities are being registered pursuant to such <u>Section 4.1.2</u>, which managing underwriter shall be reasonably satisfactory to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder, and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other terms as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to any underwriting agreement relating to an underwritten sale of their Registrable Securities. Such Holders shall not be required to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate to such Holders, their shares of Common Stock, and their intended methods of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.5. <u>Documents to be Delivered by Holders</u>. Each of the Holders participating in any of the foregoing offerings shall furnish to the Company a completed and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.6. <u>Damages</u>. Should the registration or the effectiveness thereof required by <u>Sections 4.1</u> and <u>4.2</u> hereof be delayed by the Company or the Company otherwise fails to comply with such provisions, the Holders shall, in addition to any other legal or other relief available to the Holders, be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the necessity of posting bond or other security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Termination of Registration Rights</u>. The registration rights afforded to the Holders under this <u>Section 4</u> shall terminate on the earliest of (a) the five-year anniversary of the Pricing Date for demand registration rights and the five-year anniversary of the Pricing Date for piggyback registration rights, and (b) the date when all Registrable Securities of such Holder either: (i) have been publicly sold by such Holder pursuant to a registration statement, (ii) have been covered by an effective registration statement on Form S-1 or Form S-3 (or successor forms thereto), which must be kept effective for a period of three years from its effective date, or (iii) may be sold by the Holder within a 90-day period without registration pursuant to Rule 144 or consistent with applicable SEC interpretive guidance (including Commission Staff interpretation no. 201.04 updated April 2, 2007 as part of "Rule 144 – Persons Deemed Not to be Engaged in a Distribution and Therefore Not Underwriters," which was restated as Commission Staff CD&I No. 528.04 under Securities Act Rules, or similar interpretive guidance).

5. <u>New Purchase Warrants to be Issued</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Partial Exercise or Transfer</u>. Subject to the restrictions in <u>Section 3</u> hereof, this Purchase Warrant may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax if exercised pursuant to <u>Section 2.1</u> hereof, the Company shall cause to be delivered to the Holder without charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number of shares of Common Stock purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Lost Purchase Warrant.</u> Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction, or mutilation of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond (and upon surrender and cancellation of such Purchase Warrant, if mutilated), the Company shall execute and deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation, or destruction shall constitute a substitute contractual obligation on the part of the Company.

6. <u>Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Adjustments to Exercise Price and Number of Securities</u>. The Exercise Price and the number of shares of Common Stock underlying the Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1. <u>Stock Dividends and Splits</u>. If the Company, at any time while this Purchase Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on the Common Stock or any other equity or equity equivalent securities payable in Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon (A) exercise of this Purchase Warrant, or (B) exercise, conversion or exchange of options, warrants, preferred stock, convertible notes, other convertible securities or other Common Stock Equivalents), (ii) subdivides the outstanding shares of Common Stock into a larger number of shares of Common Stock, (iii) combines (including by way of reverse stock split) the outstanding shares of Common Stock into a smaller number of shares of Common Stock, or (iv) issues by reclassification of any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares of Common Stock issuable upon exercise of this Purchase Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Purchase Warrant shall remain unchanged. Any adjustment made pursuant to this <u>Section 6.1</u> shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination, or re-classification. For the purposes of clarification, neither the Exercise Price of this Purchase Warrant nor the number of shares of Common Stock issuable upon exercise of this Purchase Warrant will be adjusted in the event that the Company or any subsidiary thereof, as applicable, sells or grants any option to purchase, or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common Stock Equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2. <u>Subsequent Rights Offerings</u>. In addition to any adjustments pursuant to <u>Section 6.1.1</u> above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock of the Company (the "**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Purchase Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3. <u>Pro Rata Distributions</u>. During such time as this Purchase Warrant is outstanding, if the Company shall declare or make any dividend (other than cash dividends) or other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of Common Stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Distribution**"), at any time after the issuance of this Purchase Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock then acquirable upon complete exercise of this Purchase Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4. <u>Fundamental Transaction</u>. If, at any time while this Purchase Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock of the Company are permitted to sell, tender or exchange their shares of Common Stock for other securities, cash or property and has been accepted by the holders of more than 50% of the outstanding shares of Common Stock of the Company, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of Common Stock or any compulsory share exchange pursuant to which shares of Common Stock are effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock of the Company (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a "**Fundamental Transaction**"), then, upon any subsequent exercise of this Purchase Warrant, the Holder shall have the right to receive, for each Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in <u>Section 2.4</u> hereof on the exercise of this Purchase Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the "**Alternate Consideration**") receivable by holders of Common Stock as a result of such Fundamental Transaction for each Share for which this Purchase Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in <u>Section 2.4</u> hereof on the exercise of this Purchase Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one Share in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock of the Company are given any choice as to the securities, cash, or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Purchase Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the "**Successor Entity**") to assume in writing all of the obligations of the Company under this Purchase Warrant in accordance with the provisions of this Section 6.1.4 prior to such Fundamental Transaction, and shall, at the option of the Holder, deliver to the Holder in exchange for this Purchase Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Purchase Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Purchase Warrant (without regard to any limitations on the exercise of this Purchase Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Purchase Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Purchase Warrant referring to the "Company" shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Purchase Warrant with the same effect as if such Successor Entity had been named as the Company herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.5. <u>Calculations</u>. All calculations under this <u>Section 6.1</u> shall be made to the nearest cent or the nearest l/100th of a share, as the case may be. For purposes of this <u>Section 6.1</u>, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.6. <u>Notice to Holder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustment to Exercise Price</u>. Whenever the Exercise Price is adjusted pursuant to any provision of this <u>Section 6.1</u>, the Company shall promptly deliver to the Holder (in accordance with <u>Section 8.3</u> hereof) a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of shares of Common Stock and the method of calculating such adjustments to the Exercise Price and the number of shares of Common Stock and setting forth a brief statement of the facts requiring such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Notice to Allow Exercise by Holder</u>. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered a notice to the Holder (in accordance with <u>Section 8.3</u> hereof), at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined, and (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of record of the Common Stock shall be entitled to exchange their shares of Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to provide such notice or any defect therein shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Purchase Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.7. <u>Changes in Form of Purchase Warrant</u>. This form of Purchase Warrant need not be changed because of any change pursuant to this <u>Section 6.1</u>, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of shares of Common Stock as are stated in the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Commencement Date or the computation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Substitute Purchase Warrant</u>. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does not result in any reclassification or change of the outstanding shares of Common Stock), the corporation formed by such consolidation or share reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable upon such consolidation or share reconstruction or amalgamation, by a holder of the number of shares of Common Stock for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this <u>Section 6</u>. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or amalgamations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Rules</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1. Any adjustment made pursuant to this <u>Section 6</u> shall be made successively whenever an event referred to therein shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.2. No adjustment in the Exercise Price is required to be made unless such adjustment would result in a change of at least 1% in the prevailing Exercise Price and no adjustment in the Exercise Price is required unless such adjustment would result in a change of at least 1/100 of a share; <u>provided</u>, <u>however</u>, that any adjustments which, except for the provisions of this <u>Section 6</u>, would otherwise have been required to be made, will be carried forward and taken into account in any subsequent adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.3. No adjustment in the Exercise Price will be made in respect of any event described in <u>Section 6.1</u> hereof, other than the events referred to in <u>Section 6.1.4</u> hereof, if the Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had exercised this Purchase Warrant prior to or on the effective date or record date of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.4. If at any time period from the date of issue of this Purchase Warrant and ending at the Expiration Date the Company shall take any action affecting the Common Stock, other than an action described in <u>Section 6.1</u> hereof, which in the opinion of the board of directors of the Company (the "**Board of Directors**") would have a material adverse effect upon the rights of the Holder, either or both the Exercise Price and the number of shares of Common Stock purchasable upon exercise of this Purchase Warrant shall be adjusted in such manner and at such time by action by the Board of Directors, in their sole discretion, as may be equitable in the circumstances. Failure of the taking of action by the Board of Directors so as to provide for an adjustment prior to the effective date of any action by the Company affecting the Common Stock shall be deemed to be conclusive evidence that the directors have determined that it is equitable to make no adjustment in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.5. If a dispute shall at any time arise with respect to adjustments of the Exercise Price or the number of shares of Common Stock purchasable upon the exercise of this Purchase Warrant, such disputes shall be conclusively determined by the auditors of the Company or if they are unable or unwilling to act, by such other firm of certified public accountants as may be selected by the Board of Directors and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to <u>Section 6.1</u> hereof and shall be binding upon the Company and the Holder. The Company will provide such auditors or chartered accountants with access to all necessary records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.6. If the Company sets a record date to determine the holders of Common Stock for the purpose of entitling them to receive any dividend or distribution or sets a record date to take any other action and, thereafter and before the distribution to such stockholders of any such dividend or distribution or the taking of any other action, decides not to implement its plan to pay or deliver such dividend or distribution or take such other action, then no adjustment in the Exercise Price will be required by reason of the setting of such record date. In the absence of a resolution of the Board of Directors fixing a record date for any event which would require any adjustment to this Purchase Warrant, the Company will be deemed to have fixed as the record date therefor the date on which the event is effected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.7. As a condition precedent to the taking of any action which would require any adjustment to the shares of Common Stock issuable under this Purchase Warrant, including the Exercise Price, the Company shall take any corporate action which may be necessary in order that the Company or any successor to the Company or successor to the undertaking or assets of the Company have unissued and reserved in its authorized capital and may validly and legally issue as fully paid and non-assessable all the shares or other securities which the Holder is entitled to receive on the full exercise thereof in accordance with the provisions hereof.

7. <u>Reservation and Listing</u>. The Company shall at all times reserve and keep available out of its authorized shares of Common Stock, solely for the purpose of issuance upon exercise of the Purchase Warrants, such number of shares of Common Stock or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of the Exercise Price therefor, in accordance with the terms hereby, all shares of Common Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid and nonassessable, free and clear of any pledge, lien, encumbrance, security interest or other claim, including any statutory or contractual preemptive rights, resale rights, rights of first refusal or other similar rights. As long as the Purchase Warrants shall be outstanding, the Company shall use its commercially reasonable efforts to cause all shares of Common Stock issuable upon exercise of the Purchase Warrants to be listed (subject to official notice of issuance) on the national securities exchange (or, if applicable, on the OTC Bulletin Board or any successor trading market) on which the shares of Common Stock issued to the public in the Offering may then be listed and/or quoted. The Company hereby represents and warrants that this Purchase Warrant is a valid, legal and binding obligation of the Company, enforceable against the Company 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.

8. <u>Certain Notice Requirements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <u>Holder's Right to Receive Notice</u>. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to receive notice as a stockholder for the election of directors or any other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events described in <u>Section 8.2</u> hereof shall occur, then, in one or more of said events, the Company shall give written notice of such event at least 15 days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other stockholders of the Company at the same time and in the same manner that such notice is given to the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <u>Events Requiring Notice</u>. The Company shall be required to give the notice described in this <u>Section 8</u> upon one or more of the following events: (i) if the Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company; (ii) the Company shall offer to all the holders of its Common Stock any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor; or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business shall be proposed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <u>Transmittal of Notices</u>. All notices, requests, consents and other communications under this Purchase Warrant shall be (i) in writing, (ii) deemed to have been duly made, (A) if hand delivered or mailed by express mail or private courier service, on the date of delivery, and (B) if sent by electronic mail, on the day it was sent if during regular business hours, and, if sent outside of regular business hours, on the following business day, and (iii) made: (a) if to the registered Holder of the Purchase Warrant, to the following address or to the address of such Holder as shown on the books of the Company, or (b) if to the Company, to the following address or to such other address as the Company may designate by notice to the Holders:

If to the Holder:

Cantor Fitzgerald & Co.<br> 110 East 59<sup>th</sup> Street<br> New York, NY 10022<br> Email: notices-IBD@cantor.com; legal-IBD@cantor.com<br> Facsimile: (212) 829-4708<br> Attention: General Counsel

with a copy (which shall not constitute notice) to:

Thompson Coburn LLP

55 East Monroe Street, Suite 3700

Chicago, Illinois 60603

Tel: +1 312.346.7500

Attention: David J. Kaufman

Email: djkaufman@thompsoncoburn.com

If to the Company:

The Elmet Group Co.

2 Portland Fish Pier

Suite 214

Portland, ME 04101

Attn: General Counsel

Email: cchandler@theelmetgroup.com

with a copy (which shall not constitute notice) to:

Ellenoff Grossman & Schole LLP

1345 Avenue of the Americas

New York, NY 10105

Attn: Adam Berkaw, Esq.

Email: aberkaw@egsllp.com

9. <u>General</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Amendments</u>. The Company and the Representative (as defined in the Underwriting Agreement) may from time to time supplement or amend the Broker's Warrants (including this Purchase Warrant) without the approval of any of the Holders in order to cure any ambiguity, to correct or supplement any provision contained herein or therein that may be defective or inconsistent with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder or thereunder that the Company and the Representative may deem necessary or desirable and that the Company and the Representative deem shall not adversely affect the interest of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Headings</u>. The headings contained herein are for the sole purpose of convenience of reference and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. <u>Entire Agreement</u>. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. <u>Binding Effect</u>. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. <u>Governing Law; Submission to Jurisdiction; Trial by Jury</u>. This Purchase Warrant shall be governed by and construed and enforced in accordance with the law of the State of New York. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought and enforced in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company must be effected by personal service upon the Company in accordance with applicable law. Service by mail, including registered or certified mail, return receipt requested, shall not constitute valid service. Personal service effected in compliance with this provision shall be legal and binding upon the Company in any action, proceeding, or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6. <u>Waiver, etc.</u> The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7. <u>Execution in Counterparts</u>. This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8. <u>Exchange Agreement</u>. As a condition of the Holder's receipt and acceptance of this Purchase Warrant, the Holder agrees that, at any time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and the Representative enter into an agreement ("**Exchange Agreement**") pursuant to which they agree that all outstanding Broker's Warrants will be exchanged for securities or cash or a combination of both, then the Holder shall agree to such exchange and become a party to the Exchange Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9. <u>Time.</u> Time shall be of the essence of this Purchase Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10. <u>Language</u>. The parties hereto acknowledge and confirm that they have requested that this Purchase Warrant as well as all notices and other documents contemplated hereby be drawn up in the English language.

[*Signature Page Follows*]

IN WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the ____ day of _______, 2026.

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| |
|:---|
| Very truly yours, |
| THE ELMET GROUP CO. |
| By: |
| Name: |
| Title: |

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**SCHEDULE "A"**

**<u>EXERCISE FORM</u>**

Date: __________, 20___

☐ The undersigned hereby elects irrevocably to exercise that certain Common Stock Purchase Warrant, dated as of [ ], 2026 (the "**Purchase Warrant**") for [●] shares of common stock, par value $0.001 per share (the "**Common Stock**"), of The Elmet Group Co., a Delaware corporation (the "**Company**"), and hereby makes payment of $[●] (at the price of $[●] per share of Common Stock) in payment of the Exercise Price pursuant thereto. Please issue (i) the shares of Common Stock as to which the Purchase Warrant is exercised in accordance with the instructions given below, and (ii) if applicable, a new Purchase Warrant representing the number of shares of Common Stock for which this Purchase Warrant has not been exercised.

Or, in the case of a cashless exercise:

☐ The undersigned hereby elects irrevocably to convert its right to purchase [●] shares of Common Stock under the Purchase Warrant for [●] shares of Common Stock, as determined in accordance with the Section 2.2 of the Purchase Warrant.

The undersigned agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with respect to the calculation shall be resolved by the Company in its sole discretion.

Please issue the shares of Common Stock as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of shares of Common Stock for which this Purchase Warrant has not been converted.

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| |
|:---|
| Signature |
| INSTRUCTIONS FOR REGISTRATION OF SECURITIES |
| Name: |
| (Print in Block Letters) |
| Address: |

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*[Form to be used to exercise Purchase Warrant]*

 

**SCHEDULE "B"**

**<u>ASSIGNMENT FORM</u>**

(To be executed by the registered Holder to effect a transfer of the within Purchase Warrant):

FOR VALUE RECEIVED, __________________ does hereby sell, assign and transfer unto _______________ the right to purchase [●] shares of common stock, par value $0.001 per share, of The Elmet Group Co., a Delaware corporation (the "**Company**"), evidenced by the Purchase Warrant, dated as of [ ], 2026, and does hereby authorize the Company to transfer such right on the books of the Company.

Dated: __________, 20___

Signature

*[Form to be used to assign Purchase Warrant]*

## Exhibit 5.1

**Exhibit 5.1**

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|:---|:---|
| ![](ea027036005ex5-1img1.jpg) | 1345 AVENUE OF THE AMERICAS, 11<sup>th</sup> FLOOR<br> NEW YORK, NY 10105<br> TELEPHONE: (212) 370-1300<br> FACSIMILE: (212) 370-7889<br> www.egsllp.com |

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April 14, 2026

The Elmet Group Co.

2 Portland Fish Pier

Portland, ME 04101

Re: <u>Registration Statement on Form S-1 (File No. 333-294725)</u>

Ladies and Gentlemen:

We have acted as counsel to The Elmet Group Co., a Delaware corporation (the "**Company**"), in a public offering pursuant to the Registration Statement on Form S-1, as amended (Registration Statement No. 333-294725) initially filed with the Securities and Exchange Commission (the "**Commission**") under the Securities Act of 1933, as amended (the "**Act**"), on March 30, 2026 (the "**Registration Statement**"), of $115,000,000 of shares of the Company's common stock, par value $0.001 per share (the "**Common Stock**"), including shares of Common Stock pursuant to the exercise of the underwriters' option to purchase additional shares of Common Stock, to be sold to the Underwriters (the "**Underwritten Shares**") as contemplated by the Registration Statement.

The Underwritten Shares are to be sold by the Company to the Underwriters pursuant to an underwriting agreement (the "**Underwriting Agreement**") to be entered into by and between the Company and underwriters to be named therein, of which Cantor Fitzgerald & Co. is acting as representative. The Underwritten Shares are to be offered and sold in the manner described in the Registration Statement and the related prospectus included therein (the "**Prospectus**").

For purposes of rendering the opinions set forth below, we have examined such documents and reviewed such questions of law as we have considered necessary and appropriate for the purposes of our opinion including (i) the Registration Statement, including the exhibits filed therewith, (ii) the Prospectus, (iii) the Company's Amended and Restated Certificate of Incorporation, (iv) the Company's Bylaws, (v) the form of Second Amended and Restated Certificate of Incorporation, filed as an exhibit to the Registration Statement, which will be in effect upon effectiveness of the Registration Statement, (vi) the form of Amended and Restated Bylaws, filed as an exhibit to the Registration Statement, which will be in effect upon effectiveness of the Registration Statement (vii) the form of Underwriting Agreement filed as an exhibit to the Registration Statement and (vii) the corporate resolutions and other actions of the Company that authorize and provide for the filing of the Registration Statement, and we have made such other investigation as we have deemed appropriate. We have not independently established any of the facts so relied on.

We have further assumed the legal capacity of natural persons, and we have assumed that each party to the documents we have examined or relied on (other than the Company) has the legal capacity or authority and has satisfied all legal requirements that are applicable to that party to the extent necessary to make such documents enforceable against that party.

Based on the foregoing, we are of the opinion 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;**1. <u>Underwritten Shares</u>**. When the Registration Statement becomes effective under the Act and when the offering is completed as contemplated by the Registration Statement, the Underwritten Shares will be validly issued, fully paid and non-assessable.

We express no opinion as to matters governed by any laws other than the Delaware General Corporation Law, the laws of the State of New York and the federal laws of the United States of America, as in effect on the date hereof.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the reference to our firm under the caption "Legal Matters" in the Prospectus. In giving such permission, we do not admit hereby that we come within the category of persons whose consent is required under Section 7 of the Act, or the rules and regulations of the Commission thereunder. This opinion is expressed as of the date hereof, and we disclaim any undertaking to advise you of any subsequent changes in the facts stated or assumed herein or of any subsequent changes in applicable law.

Very truly yours,

---

| |
|:---|
| */s/ Ellenoff Grossman & Schole LLP* |
| Ellenoff Grossman & Schole LLP |

---

## Exhibit 10.1

**Exhibit 10.1**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

![](ea027036005_ex10-1img1.jpg)

**SUBCONTRACT AGREEMENT**

---

| | |
|:---|:---|
| **Contractor Number:** | [\*\*] |
| **Subrecipient:** | Elmet Technologies LLC |
| **Address:** | 1560 Lisbon St, Lewiston, ME 04240 |

---

IN CONSIDERATION of the promises, mutual covenants, and agreements contained herein, InSitech, Inc. ("INSITECH") and Elmet Technologies LLC ("Subrecipient" and collectively with InSitech, Inc., the "Parties") agree as follows:

This Subcontract Agreement (this "Agreement") constitutes the entire agreement and understanding between the Parties with respect to ALL documents incorporated herein, and supersedes all prior representations and agreements. It shall not be varied except by an instrument in writing of subsequent date duly executed by authorized representatives of the Parties.

IN WITNESS WHEREOF, the parties hereto have, through duly authorized officials, executed this Agreement effective as of the date indicated below.

---

| | |
|:---|:---|
| InSitech, Inc. | Elmet Technologies LLC |
| /s/ Joseph N. Moran | /s/ Andrew Nichols |
| SIGNATURE | SIGNATURE |
| Joseph N. Moran | Andrew Nichols |
| NAME<br>President | NAME<br>Chief Executive Officer |
| TITLE | TITLE |
| October 30, 2019 | October 30, 2019 |
| DATE | DATE |

---

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WHEREAS, INSITECH desires to have the Subrecipient perform certain services and the Subrecipient desires to undertake the performance of said services, NOW, THEREFORE, the parties hereby covenant and agree pursuant to this Agreement, including without limitation, the Schedule, General Provisions, and Exhibits hereinafter incorporated as follows:

**SCHEDULE**

1. <u>STATEMENT OF WORK</u> 

The Subrecipient agrees to complete the Statement of Work, herein incorporated as Exhibit A. The Subrecipient's proposal is herein incorporated as Exhibit B.

2. <u>SUBAWARD TYPE</u> 

This is a firm fixed price payable milestone type Subaward incorporated as Exhibit D.

3. <u>PERIOD OF PERFORMANCE</u> 

The services for this effort to be performed by the Subrecipient shall commence on October 30, 2019 and shall be completed October 29, 2022.

4. <u>SUBAWARD VALUE</u> 

The Subaward Value shall be a Not-to-exceed amount of $6,922,315.09 for services rendered as described in Paragraph 1 above. As outlined in Exhibit D, $4,086,531.53 represents the initial funding, with the remaining $2,835,783.56 allocated to Optional Milestones to potentially be executed at a later date, pending Government funding. Unless modified in writing by mutual agreement of the parties, INSITECH is not obligated to compensate Subrecipient beyond the $4,086,531.53 in initial funding, including any travel requirements. The foregoing notification requirement applies to each increment of funding provided to Subrecipient under the Statement of Work.

5. <u>NOTICE OF DELAYS</u> 

In the event Subrecipient encounters difficulty in meeting performance requirements or anticipates difficulty in complying with this Agreement's delivery schedule, dates, or whenever Subrecipient has knowledge that any actual or potential situation is delaying or threatens to delay the timely performance of this Agreement, Subrecipient shall notify INSITECH, in writing, within twenty-four (24) hours of discovery, giving pertinent details. This notification shall be informational only and compliance with this notification provision shall not be construed as a waiver by INSITECH of any delivery schedule, date, or of any rights or remedies provided by law or under this Agreement.

6. <u>INVOICES AND PAYMENT</u> 

The Subrecipient shall submit invoices for this effort in accordance with the payable milestone table above. Invoices shall be submitted to Joseph N. Moran, President, via email at [\*\*].

All invoices shall be certified and submitted in accordance with the invoice schedule provided in each Task Order, and shall contain the following information:

1) Subrecipient's name and business address

2) Contract Number

3) Date of Invoice

4) Description of Services (Title)

5) Period covered by invoice

6) Firm Fixed Price amount billed figure

7) Name, title, phone number, and complete mailing address of responsible official to whom payment is to be sent

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A final invoice for the Agreement shall be marked "Final Invoice" and shall be submitted within thirty (30) calendar days after each payable milestone is completed. Payment of the final invoice for the Agreement shall constitute final acceptance.

7. <u>PAYMENT TERMS</u> 

Payment terms are net sixty (60) days after INSITECH's receipt of a proper invoice and acceptance by the Government.

Unless specifically authorized in writing by INSITECH, Subrecipient is not authorized to perform and INSITECH is not obligated to reimburse Subrecipient for work performed on an overtime, extended work week, shift premium, or uncompensated time basis.

INSITECH reserves the right to impose financial penalties on Subrecipient due to shortages, late delivery, rejections, or other failure to comply with the requirements of this Agreement before payment. Payment shall not constitute final acceptance. INSITECH may offset against any payment hereunder any amount owed to INSITECH by Subrecipient including fines and/or penalties imposed on INSITECH related to Subrecipient's misrepresentation and/or false certifications.

8. <u>REPRESENTATIVES AND COMMUNICATIONS</u> 

The following Representatives of INSITECH and Subrecipient are hereby designated for this Agreement:

Subrecipient Representatives:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Technical Representative | &nbsp;&nbsp;Contracts Representative |
| &nbsp;&nbsp;Name: John Johnson, VP Technology | &nbsp;&nbsp;Name: Andrew Nichols, CEO |
| &nbsp;&nbsp;Phone Number: [\*\*] | &nbsp;&nbsp;Phone Number: [\*\*] |
| &nbsp;&nbsp;Email Address: [\*\*] | &nbsp;&nbsp;Email Address: [\*\*] |

---

INSITECH Representatives:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Technical Representative | &nbsp;&nbsp;Subcontracts Representative |
| &nbsp;&nbsp;Name: Joseph Moran, President | &nbsp;&nbsp;Name: Joseph Moran, President |
| &nbsp;&nbsp;Phone Number: [\*\*] | &nbsp;&nbsp;Phone Number: [\*\*] |
| &nbsp;&nbsp;Email Address: [\*\*] | &nbsp;&nbsp;Email Address: [\*\*] |

---

INSITECH's Technical Representative is responsible for day-to-day clarifications and guidance as may be required within the scope of the technical work requirements. All written communications to the INSITECH shall be transmitted to both the designated Technical Representative and Subcontracts Representative.

Contact with INSITECH regarding prices, terms, quantities, deliveries and financial adjustments shall be made only between INSITECH's Subcontracts Representative and the Subrecipient's Contracts Representative. Actions taken by the Subrecipient, which by their nature affect a change to this Agreement, shall only be binding upon INSITECH when such action is specifically authorized in writing by INSITECH's Subcontracts Representative. All written communications between Subrecipient and INSITECH shall be addressed and directed to INSITECH's Subcontracts Representative.

All commitments hereunder (subsequent to execution of this Agreement) shall be made through the respective parties' Contracts/Subcontracts Representative. No verbal or written request, notices, authorization, direction or order received by the Subrecipient shall be binding upon INSITECH, or serve as the basis for a change in the subcontract cost, fee, price, schedule or any other provision of this Agreement, unless issued (or confirmed) in writing by the INSITECH's Subcontracts Representative.

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INSITECH shall be responsible for all liaisons and communications with INSITECH's customer as well as INSITECH's other subcontractors for the term of this Agreement. The Subrecipient shall not communicate with INSITECH's customer nor INSITECH's other subcontractors regarding this Agreement except with the prior consent of INSITECH's Subcontracts Representative.

The Subrecipient shall immediately notify INSITECH's Subcontracts Representative whenever a verbal or written change notification has been received from an employee of INSITECH (other than the Subcontracts Representative), which would affect any of the terms, conditions, cost, schedules, etc. of this Agreement. Subrecipient is to perform no work or make any changes in response to any such notification or make any claim on INSITECH, unless INSITECH's Subcontracts Representative directs the Subrecipient, in writing, to implement such change notification.

Notwithstanding the foregoing, Subrecipient shall be permitted to directly contact the Government at any time as required or otherwise provided under application law or regulation, including, without limitation, in connection with Subrecipient's rights to any invention or other intellectual property created under this Agreement, as permitted under 37 CFR 401, 32 CFR 32.26.

9. <u>REPRESENTATIONS AND CERTIFICATIONS</u> 

The Representations and Certifications completed by the Subrecipient are hereby incorporated as part of this Subaward as Exhibit C.

10. <u>SECURITY</u> 

The Security requirements for the Subrecipient are hereby incorporated as part of the Subaward as referenced in Exhibit A.

11. <u>AUDITS</u> 

The Subrecipient is subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (USC 7501 – 7507) and revised OMB Circular A-133, "Audits of States, Local Governments, and Non-profit Organizations."

12. <u>PROGRESS REPORTS</u> 

If not defined in an attached Statement of Work or in any resulting communications, the Subrecipient shall submit a progress reports within five (5<sup>th</sup>) calendar days following the report period, as outlined in the milestone payments, to include the following, as applicable:

● Performance Metrics Task Order Schedule

● Items for Government Review Accomplishments

● Significant Open Issues, Risk and Mitigation Action Summary of Issues Closed

● Meetings Completed Projected Meetings

● Subrecipient Performance - discuss 1st Tier subcontractors and vendor performance Projected Activities for Next Reporting Period

● Summary of the work performed during the reporting period

● Summary of progress achieved in the completion of work in relation to the planned schedule

● Brief discussion of any potential problems, their anticipated impact on task performance, and recommended problem solutions, including planned or corrective action to be taken

● Statement of the work planned to be performed during the next reporting period

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13. <u>OWNERSHIP</u> 

The Parties agree and acknowledge that Subrecipient retains ownership and all rights to any inventions or other intellectual property and grants no license, right, title, or interest, directly or indirectly, in or to any such inventions or other intellectual property to INSITECH.

**GENERAL PROVISIONS**

<u>GP1 SUBRECIPIENT RESPONSIBILITY</u>

The Subrecipient has full responsibility for the conduct of the effort supported by this Subaward, in accordance with the Subrecipient's Proposal and the terms and conditions specified in this Subaward. The Subrecipient is encouraged to suggest, or propose to discontinue, or modify unpromising efforts. The Subrecipient shall submit, within 30 calendar days after the date of expiration of the Subaward, all financial, performance and other reports as required by the terms and conditions of this Subaward. Requests for extensions should be submitted at least 30 days before the current expiration date.

<u>GP2 REVISION OF BUDGET AND/OR PROGRAM PLANS</u>

The budget plan is the financial expression of the project or program as approved during the award process. Subrecipients are required to report deviations from the budget and program plans, and request prior approval for budget and program plan revisions. When requesting approval for budget revisions, the Subrecipient shall use the budget forms submitted with its proposal and show the original budget and the requested changes by cost element (e.g., labor, travel, materials, indirect costs, etc.). The Subrecipient shall also show any requested changes to the original payable milestone table, as appropriate.

The Subrecipient shall immediately request, in writing, prior approval of INSITECH when there is reason to believe that a programmatic or budgetary revision will be necessary due to change in the scope or objective of the project or program (even if there is no associated budget revision requiring prior written approval), the need for additional funds, the transfer of funds among direct cost categories, functions and activities when the cumulative amount of such transfers is expected to exceed 10% of the total budget as last approved by INSITECH, or the need for an extension of the expiration date of the Subaward.

No changes in direction or delivery of this Subaward by the Subrecipient shall proceed prior to receipt of written consent from INSITECH.

<u>GP3 RETENTION OF RECORDS</u>

INSITECH shall have access to the Subrecipient's records pertaining to this Subaward, for the purpose of audit during normal business hours, upon reasonable notice for so long as such records are required to be retained. Audit rights shall be available to INSITECH on all performance related reports and other records, except records pertaining to proprietary indirect cost data. Audit of any proprietary indirect cost data may be accomplished through its cognizant Government audit representative, or a mutually agreeable third party auditor from a nationally recognized firm of certified public accountants. The Subrecipient's relevant financial records are subject to examination or audit for a period not to exceed 5 years after expiration of the term of this Agreement.

<u>GP4 PROCUREMENT STANDARDS</u>

The uniform standards for the Subrecipient's procurement of supplies and other expendable property, equipment, real property and other services with Federal funds are set forth in 32 CFR 32.40 through 32.48.

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<u>GP5 PROPERTY STANDARDS</u>

The uniform standards for governing management and disposition of property furnished by the Federal Government or property whose cost is charged to a project supported by this Subaward are set forth at 32 CFR Sections 32.30 through 32.37.

<u>GP6 FINANCIAL MANAGEMENT SYSTEMS</u>

Prior to the submission of invoices, the Subrecipient shall have and maintain an established accounting system which complies with Generally Accepted Accounting Principles (GAAP) and the requirements of this Agreement. The Subrecipient shall ensure the appropriate arrangements have been made for receiving, distributing and accounting for the funds under this Agreement.

<u>GP7 PROGRAM INCOME</u> 

Program income, if any, shall be used as set forth at 32. CFR 32.24 (b)(1).

<u>GP8 RIGHTS TO INVENTIONS</u>

The uniform standards for the Government's rights to invention are set forth in 37 CFR 401, Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements, and E.O. 12591.

<u>GP9 INTANGIBLE PROPERTY</u>

The uniform standards regarding Intangible Property for the Subrecipient are set forth in 32 CFR 32.36.

<u>GP10 INSURANCE</u>

The Subrecipient shall secure, pay the premiums for, and keep in force until the expiration of this Agreement (including any renewal thereof), adequate insurance to specifically include liability assumed by the Subrecipient under this Agreement.

The following types of insurance are required and shall be maintained by the Subrecipient for the full duration of this Agreement and any extensions thereof: Workers Compensation and Employers Liability; Commercial General Liability; Automobile; and an Umbrella policy. INSITECH reserves the right to require a full and complete copy of any insurance policy for review prior to commencement of work under this Agreement.

<u>GP11 TERMINATION FOR CONVENIENCE</u>

INSITECH may terminate the Agreement in whole or in part if it is determined that a termination is in INSITECH's and/or the Government's best interests or if the Government exercises its termination for convenience rights under the contract. INSITECH may terminate this Agreement by issuing a written notice of termination to the Subrecipient. The written notice will include the termination effective date, justification and actions to be taken by the Subrecipient.

In the event that INSITECH terminates this Agreement pursuant to Government direction, Subrecipient's recovery of termination costs shall be limited to the extent that INSITECH is able to recover such costs from the Government.

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<u>GP12 TERMINATION FOR DEFAULT (SUPPLY AND SERVICE)</u>

&nbsp;&nbsp;&nbsp;&nbsp;a) INSITECH may, subject to paragraphs c) and d) below, by written notice of default to the Subrecipient,
terminate this Agreement in whole or in part at any time if the Subrecipient fails to: (1) Deliver the supplies or perform the services
within the time specified in this Agreement, or any extension; (2) Make progress, so as to endanger performance of the Agreement; or (3)
Perform any of the other provisions of this Agreement.

INSITECH's right to terminate this Agreement under subdivisions (2) and (3) above may be exercised if the Subrecipient does not cure such failure within seven (7) calendar days (or more if authorized in writing by INSITECH) after receipt of notice from INSITECH specifying the failure.

&nbsp;&nbsp;&nbsp;&nbsp;b) If INSITECH terminates this Agreement in whole or in part, it may acquire, under the terms and in the
manner INSITECH considers appropriate, supplies or services equivalent to those terminated and the Subrecipient shall be liable to INSITECH
for any excess costs for those supplies or services. However, unless otherwise instructed by INSITECH's Subcontracts Representative,
the INSITECH shall continue any work not terminated.

&nbsp;&nbsp;&nbsp;&nbsp;c) The Subrecipient shall not be liable for any excess costs if the failure to perform under this Agreement
arises from causes beyond the control and without the fault or negligence of the Subrecipient. Examples of such causes include: (1) acts
of God or of the public enemy, (2) acts of the Government in either its sovereign or contractual capacity, (3) fires, (4) floods, (5)
epidemics, (6) quarantine restrictions, (7) strikes, (8) freight embargoes, and (9) unusually severe weather. In each instance the failure
to perform must be beyond the control and without the fault or negligence of the Subrecipient.

&nbsp;&nbsp;&nbsp;&nbsp;d) If the failure to perform is caused by the default of a Lower-tier Subcontractor, and if the cause of
the default is beyond the control of both the Subrecipient and Lower-tier Subcontractor, and without the fault or negligence of either,
the Subrecipient shall not be liable for any excess costs for failure to perform, unless the subcontracted supplies or services were obtainable
from other sources in sufficient time for the Subrecipient to meet the required delivery schedule.

&nbsp;&nbsp;&nbsp;&nbsp;e) If this Agreement is terminated for default, INSITECH may require the Subrecipient to transfer title and
deliver to INSITECH, as directed by INSITECH, any (1) completed supplies, and (2) partially completed supplies and materials, parts, tools,
dies, jigs, fixtures, plans, drawings, information, and contract rights (collectively referred to as "manufacturing materials"
in this clause) that the Subrecipient has specifically produced or acquired from the terminated portion of this Agreement. Upon direction
of INSITECH, the Subrecipient shall also protect and preserve property in its possession in which INSITECH has an interest.

&nbsp;&nbsp;&nbsp;&nbsp;f) INSITECH shall pay the Agreement price(s) for completed supplies delivered and accepted. The Subrecipient
and INSITECH shall agree on the amount of payment for manufacturing materials delivered and accepted and for the protection and preservation
of property. Failure to agree will be considered a dispute under the Disputes Clause. INSITECH may withhold from these amounts any sum
INSITECH determines to be necessary to protect INSITECH against loss because of outstanding liens or claims of former lien holders.

&nbsp;&nbsp;&nbsp;&nbsp;g) If, after termination, it is determined that the Subrecipient was not in default, or that the default
was excusable, the rights and obligations of the parties shall be the same as if the termination had been issued for convenience.

&nbsp;&nbsp;&nbsp;&nbsp;h) The rights and remedies of INSITECH in this clause are in addition to any other rights and remedies provided
by law or under this Agreement.

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<u>GP13 CONFIDENTIALITY</u>

It is recognized that in the course of performance of their obligations under this Subaward, either party (INSITECH or Subrecipient) may disclose to the other certain confidential and/or proprietary information of their own or received from a third party. In the event of such a disclosure, the party receiving the disclosure agrees to maintain the information in confidence, and subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All information of a proprietary nature exchanged between the parties, e.g., descriptions, drawings, photographs, tapes, or other tangible things, will be clearly identified and marked with an appropriate notice, such as "Proprietary", and provided that each page of such information exchanged is marked or stamped with the appropriate notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Information imparted orally, visually or physically shall not be included under this Subaward unless such information is subsequently reduced to tangible form within fifteen (15) days of disclosure, and a copy furnished to the party receiving the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Not included is any information which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is known to the public prior to the effective date of this Subaward;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) becomes known to the public through no act or omission of the party receiving the information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is already known to the party receiving it at the time the information is given to that party, as documented
by such party's prior written records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is disclosed with the written approval of the other party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) was independently developed by the receiving party without use of or reference to the disclosing party's
confidential and/or proprietary information; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) information which a party is required by law to disclose, provided that the party required to so disclose
promptly notifies the other party and reasonably cooperates with the other party to obtain a protective order limiting such disclosure.

Neither party shall be liable for the inadvertent or accidental disclosure of such information marked as proprietary information as provided above if such disclosure occurs despite the exercise of the same degree of care as such party normally takes to preserve and safeguard its own proprietary information.

The foregoing restrictions as to proprietary and confidential information shall terminate three (3) years from the expiration or termination of this Subaward, unless the parties agree upon an alternate agreement, in which case the rights and obligations of the parties shall be governed by such agreement.

<u>GP14 ACKNOWLEDGEMENT OF SPONSORSHIP</u>

The Subrecipient agrees that in the release of information relating to this Subaward, such release shall include a statement to the effect that: (a) the effort is/was sponsored by the Office of the Secretary of Defense, Director, Office of Administration and Management; (b) the content of the information does not necessarily reflect the position or policy of the Government; and (c) that no official endorsement should be inferred. "Information" includes news releases, articles, manuscripts, brochures, advertisements, still and motion pictures, speeches, trade association proceedings, symposia, etc.

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<u>GP15 LIABILITY AND INDEMNIFICATION</u>

Each party hereto is responsible for its own activities and those of its agents and employees in carrying out its responsibilities under this Subaward. INSITECH will not be responsible for, and the Subrecipient will assume all liability to persons which may be attributable or incident to the Subrecipient's negligence or breach of this Subaward, or by the negligence or breach of this Subaward by any of the Subrecipient's agents and employees. The Subrecipient further agrees to indemnify, save, hold harmless and defend INSITECH, its officers, agents and employees, and the Government, from and against all suits, claims, demands or actions, liabilities, judgments, costs and attorneys' fee arising out of, or in any manner predicated upon personal injury or death resulting from, related to, caused by or incident to the Subrecipient's negligence in carrying out the terms of this Subaward, or breach thereof, or any and all other activities conducted by the Subrecipient, its agents, employees and contractors incident to this Subaward.

<u>GP16 RISK OF LOSS</u>

Subrecipient assumes the following risks: (1) all risks of loss or damage to all goods, services, work in process, materials, and Government Property until acceptance regardless of INSITECH's physical possession of the deliverables; (2) all risks of loss or damage to the property of third parties which relate to Subrecipient's performance under this Agreement until the acceptance of all the goods and/or services has occurred; (3) all risks of loss or damage to any property received by Subrecipient or held by Subrecipient, or its supplier for the account of INSITECH, until such property has been accepted by INSITECH or its customer, as the case may be; and (4) all risks of loss or damage to any of the goods or parts rejected by INSITECH, from the time of shipment to Subrecipient until redelivery to INSITECH.

<u>GP17 OFFICIALS NOT TO BENEFIT</u>

No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this Subaward, or to any benefit arising from it, in accordance with 41 USC §22.

<u>GP18 CHANGES OF CIRCUMSTANCES</u>

Each party will promptly notify the other party of any legal impediment, change of circumstances, pending litigation, or any other event or condition that may adversely affect such party's ability to carry out any of its obligations under this Subaward.

<u>GP19 WARRANTY</u>

The Subrecipient warrants that it is and shall remain free of any obligation or restriction which would interfere or be inconsistent with or present an Organizational Conflict of Interest as defined in Section GP28 or a Personal Conflict of Interest as defined in Section GP29; provided, however, InSitech will not ask the Subrecipient to do any work that would create any such conflict. Subrecipient warrants that it will perform the services under this Subaward with the degree of high professional skill and sound practices and judgment, which is normally exercised by recognized professional firms with respect to services of a similar nature.

Subrecipient represents and warrants: (1) that all goods and services delivered pursuant hereto will be new, unless otherwise specified, and free from defects in material and workmanship; (2) that all goods and services will conform to applicable specifications, drawings, and standards of quality and performance, and that all items will be free from defects in design and suitable for their intended purpose; and (3) that the goods covered by this order are fit and safe for consumer use, if so intended. All representations and warranties of Subrecipient together with its service warranties and guarantees, if any, shall run to INSITECH and INSITECH's customers. The foregoing warranties shall survive any delivery, inspection, acceptance, or payment by INSITECH.

Any additional and specific warranty requirements shall be covered by the Statement of Work.

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<u>GP20 SUSPECT/COUNTERFEIT PARTS</u>

Subrecipient represents and warrants that it has policies and procedures in place (or similar measures in the absence of such policies and procedures) to ensure that none of the supplies or materials furnished under this Agreement are "suspect/counterfeit parts" and certifies, to the best of its knowledge and belief, that no such parts have been or are being furnished to INSITECH by Subrecipient. "Suspect/counterfeit parts" are parts that may be of new manufacture, but are misleadingly labeled to provide the impression they are of a different class or quality or from a different source than is actually the case. They also include refurbished parts, complete with false labeling, that are represented as new parts or any parts that are designated as suspect by the U.S. Government, such as parts listed in alerts published by the Defense Contract Management Agency under the Government-Industry Data Exchange Program (GIDEP). If INSITECH reasonably determines that Subrecipient has supplied suspect/counterfeit parts to INSITECH, INSITECH shall promptly notify Subrecipient and Subrecipient shall immediately replace the suspect/counterfeit parts with parts acceptable to INSITECH. Notwithstanding any other provision contained herein, Subrecipient shall be liable for all costs incurred by INSITECH to remove and replace the suspect/counterfeit parts, including without limitation INSITECH's external and internal costs of removing such counterfeit parts, of reinserting replacement parts and of any testing necessitated by the reinstallation of Subrecipient's goods after counterfeit parts have been exchanged. Subrecipient's warranty against suspect/counterfeit parts shall survive any termination or expiration of this Agreement.

<u>GP 21 WARRANTY OF AUTHENTICITY</u>

Subrecipient warrants that all products delivered under this order are new and in their original packaging. No substitutions are to be supplied without the prior written consent of the INSITECH's Subcontract Representative. Subrecipient certifies that the products are genuine products authorized by the manufacturer and are entitled to the full manufacturer's warranty and service including any related software.

<u>GP22 AMENDMENTS REQUIRED BY INSITECH</u>

No amendment to or modification of this Subaward is effective unless it is in writing and signed by both Parties. If any such amendment to this Subaward causes an increase or decrease in the estimated cost of, or the time required for, performance of any part of the Work under this Subaward, an equitable adjustment will be made.

<u>GP23 ASSIGNMENT AND SUBAWARDS</u>

This Subaward may not be assigned, transferred, or conveyed, in whole or in part, without prior written consent of INSITECH. The Subrecipient agrees to obtain INSITECH's written approval before issuing lower tier sub-subawards under this Subaward. This limitation shall not apply to the purchase of standard commercial supplies or raw material.

<u>GP24 WAIVER</u>

Failure to exercise any right under this Subaward in one or more instances shall not be deemed a waiver of such rights in any other instance.

<u>GP25 SEVERABILITY</u> 

In the event that any part, term or provision of this Subaward shall be held to be illegal, void or in conflict with any law of a federal, state, or local government entity having jurisdiction over this Subaward, the validity of the remaining portions or provisions hereof shall not be affected or rendered invalid thereby; provided, however, the Parties agree to negotiate amendments to this Subaward in good faith so that to the maximum extent possible the Parties shall each receive the intended benefits and burdens of this Subaward.

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<u>GP26 DISPUTES</u>

Any claim for the threatened, alleged, or actual breach of this Agreement by either Party (a "Dispute"), which cannot otherwise be resolved after good faith negotiations by the Parties, shall first be referred for resolution to the Parties' respective executive management in writing. If the Parties' executive management are unable to resolve the Dispute within thirty (30) calendar days of such referral, then the Parties may mutually agree upon alternate dispute resolution or either Party may file suit in a court of competent jurisdiction in accordance with Section (clause referring to applicable law) above. Notwithstanding the prior two sentences, either Party may immediately seek injunctive relief in a court of competent jurisdiction to prevent irreparable harm or to protect against improper use, disclosure, or threatened improper use or disclosure of Intellectual Property.

Pending the final resolution of any Dispute under this Section, Subrecipient shall proceed diligently to perform this Subaward.

<u>GP27 GOVERNING LAW</u>

This Subaward and all matters arising from or related to it shall be construed, interpreted and enforced in accordance with the laws of the State of New Jersey, without regard to its conflicts of laws provisions, except that any provision in this Subaward that is (i) incorporated in full text or by reference from the Code of Federal Regulation (CFR); or (ii) incorporated in full text or by reference from any agency regulation that implements or supplements the CFR; or (iii) that is substantially based on any such agency regulation or CFR provision, shall be construed and interpreted according to the United States federal common law of government contracts as enumerated and applied by federal judicial bodies, boards of contract appeals, and quasi-judicial agencies of the Federal Government of the United States.

<u>GP28 ORGANIZATIONAL CONFLICT OF INTEREST</u> 

For purposes of this Subaward, the term "Organizational Conflict of Interest" means any situation which places the Subrecipient (including its chief executives, directors, subsidiaries and affiliates, consultants, or Subrecipients at any tier) in a position which may impair its ability to render unbiased advice and recommendations or in which its interests and the interests of the United States Government are not the same or in which it may have an unfair competitive advantage as a result of the knowledge, information, and experience gained during the performance of this Subaward.

The Subrecipient represents and warrants that, to the best of its knowledge and belief, no actual or potential conflict of interest exists with respect to the Services to be provided under this Subaward. Furthermore, the Subrecipient agrees that it shall not accept work during the performance of this Subaward which would create an organizational conflict of interest as defined above.

The Subrecipient agrees that if after the Subaward is awarded it discovers any potential, actual or apparent potential organizational conflict of interest, a prompt and full disclosure shall be made in writing to INSITECH. This disclosure shall include a description of the actions the Subrecipient has taken or proposes to take to avoid or mitigate such conflicts. The Subrecipient shall refer to Federal Acquisition Regulations (FAR) Subpart 9.5 for policies and procedures for avoiding, neutralizing, or mitigating organizational conflicts of interest. Failure to provide written disclosure and adequately avoid or mitigate any organizational conflicts of interest shall entitle INSITECH to immediately terminate this Subaward for default.

The Subrecipient shall incorporate this organizational conflict of interest provision into any lower tiered Subawards awarded by the Subrecipient for performance under this Subaward.

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<u>GP29 PERSONAL CONFLICT OF INTEREST</u>

Subrecipient agrees and certifies that it shall not provide either its own personnel or subcontract personnel ("personnel"), for performance under this Agreement that have a personal conflict of interest. "Personal Conflict of Interest" is defined as a situation in which personnel has a financial interest, personal activity, or relationship that could impair the personnel's ability to act impartially and in the best interest of INSITECH or the Government when performing under this Agreement.

Personal conflicts of interest may arise, but not necessarily be limited to, performance under this Agreement involving acquisition functions closely associated with inherently governmental functions. The Subrecipient is responsible for ensuring that: (1) personnel are not placed for work under this Agreement that have a personal conflict of interest, (2) personnel who are working under this Agreement in which a personal conflict of interest is discovered report such instance to INSITECH, and (3) comply with the requirements of FAR 52.203-16.

Failure to comply with this requirement may result, at INSITECH's sole discretion, in the Subrecipient being terminated in accordance with the Termination Articles of this Agreement.

<u>GP30 EXPORT CONTROLS</u>

Information furnished under this Subaward may be controlled for export purposes under the International Traffic in Arms Regulations ("ITAR") controlled by the U.S. Department of State or the Export Administration Regulations ("EAR") controlled by the U.S. Department of Commerce. ITAR and EAR controlled technology may not be exported without prior written authorization and certain technology requires a temporary import or export license depending upon its categorization, destination, end-user and end-use. The Subrecipient agrees to comply with all applicable U.S. export control laws and regulations. Without limiting the foregoing, the Subrecipient agrees that it will not transfer any export controlled item, data or services, to include transfer to foreign persons employed by or associated with, or under contract to the Subrecipient, without the authority of an Export License or applicable license exception. The Subrecipient shall indemnify and hold INSITECH harmless from and against any and all claims, liabilities and expenses resulting from the Subrecipient's failure to comply with the export laws and regulations of the United States.

Information Subject to Export Control Laws/International Traffic in Arms Regulation (ITAR): Public Law 90-629, "Arms Export Control Act," as amended (22 U.S.C. 2751 et. Seq.) requires that all unclassified technical data with military application may not be exported lawfully without an approval, authorization or license under EO 12470 or the Arms Export Control Act and that such data required an approval, authorization, of license for export under EO 12470 or Arms Export Control Act. For purposes of making this determination, the Military Critical Technologies List Control (MCTL) shall be used as general guidance. All documents determined to contain export controlled technical data will be marked with the following notice: **WARNING: - This document contains technical data whose export is restricted by the Arms Export Control Act (Title 22, U.S.C., App. 2401 et seq. Violations of these export laws are subject to severe criminal penalties. Disseminate in accordance with provisions of DoD Directive 5230.25.**

<u>GP31 FORCE MAJEURE</u>

Neither party shall be liable for damages for delay in delivery arising out of causes beyond its reasonable control and without its fault or negligence, including, but not limited to, acts of God or of the public enemy, acts of any Government authority, fires, floods, epidemics, quarantine restrictions, strikes, embargoes, or unusually severe weather. If the delay is caused by the delay of a lower tiered supplier of the Subrecipient and if such delay arises out of causes beyond the reasonable control of both the Subrecipient and lower tiered supplier, and without the fault or negligence of either of them, the Subrecipient shall not be liable to INSITECH for damages unless the articles or services to be furnished by the lower tiered supplier were obtainable from other sources in sufficient time to permit the Subrecipient to meet the required delivery schedule. The Subrecipient will notify INSITECH in writing within ten (10) days after the beginning of any such cause.

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<u>GP32 COMMUNICATION WITH INSITECH'S CUSTOMER</u>

Unless as otherwise specified in this Agreement, INSITECH shall be solely responsible for all communication and coordination with INSITECH's customer, as it affects the applicable Government contract.

Unless as otherwise specified in this Agreement or by INSITECH in writing, all contact with the INSITECH's Customer with respect to the work to be performed under the Government contract, including Subrecipient's work under this Subaward, shall be the responsibility of INSITECH. Any contact with the INSITECH's Customer relating to this Subaward initiated by Subrecipient shall be only with the prior concurrence and the participation of INSITECH. The Subrecipient shall promptly report to INSITECH any Subrecipient contact with INSITECH's Customer that is initiated by INSITECH's Customer. The Subrecipient's failure to perform its obligations as set forth in the two preceding sentences shall be a material breach of this Subaward.

<u>GP33 USE OF INSITECH'S NAME</u>

In connection with this Subaward or any relationships arising out of, by or through this Subaward or any report, study, or document produced in connection therewith, the Subrecipient shall not, without the prior written consent of INSITECH, use the name of INSITECH, its members, affiliates, agents or assignees, or any member of its staff of any of the foregoing or any logo, symbol or insignia of INSITECH or any of the foregoing, in any form of document, publicity, advertising, or disseminated material.

<u>GP34 PUBLICITY/CONFIDENTIAL RELATIONSHIP</u>

Subrecipient shall not disclose information concerning work under this Agreement to any third party. No news release, public announcement, or advertising material, regardless of media, pertaining to this Agreement, the Statement of Work, or the relationship between the parties hereto in any manner whatsoever shall be issued by Subrecipient without the prior review and written consent of the INSITECH's Subcontracts Representative.

Subrecipient shall use information supplied by the INSITECH only to accomplish work covered by this Agreement and subsequent work efforts. Such information shall not be used for any other purposes. Upon completion or termination of this Agreement, all information is to be returned to the INSITECH or destroyed upon written request of the INSITECH.

INSITECH authorizes Subrecipient to release routine Past Performance Information (PPI) regarding Subrecipient's work performed on this Agreement for purposes of responding to proposals for new work. PPI will not require approval from INSITECH for its release.

Release of any information on this contract to any person or organization who is not a party to this contract is prohibited without the prior written permission of the INSITECH's Subcontracts Representative.

Prior to access to proprietary information, all employees of contractors or subcontractors performing work under this contract will be required to sign non-disclosure agreements.

<u>GP35 SURVIVABILITY</u>

Upon expiration or termination of this Agreement, all articles herein, that by their applicability, would extend beyond said termination or expiration date and will remain in full force and effect.

<u>GP36 ENTIRE AGREEMENT</u> 

This Subaward is the entire Agreement between the Parties with respect to the subject matter hereof and supersede all prior and contemporaneous negotiations or agreements whether written or oral.

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**EXHIBIT A**

**STATEMENT OF WORK**

&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Overview** 

The United States Government, hereinafter referred to as the "Government", and InSitech, Inc., hereinafter referred to as "InSitech", agree to implement a prototype for manufacturing processes for Tungsten and Tungsten alloy components, the funded phase is specifically related to a 6-Ton Press line, Furnace Upgrade, and Powder Blender. The additional full contract, with the options, includes; a large swager, medium swager, multi-axis turning center, and optical inspection equipment. This effort shall be performed in accordance with the contents in this agreement, as well as Prototype Obligation Agreement [\*\*] and its corresponding attachments.

&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Scope** 

There is a critical need in support of the Office of the Secretary of Defense (OSD), Industrial Base Analysis and Sustainment Program (IBAS) to strengthen and expand tungsten product producers and strategically integrate tungsten based materials and products in a modern industrial base. There is particular interest in domestic suppliers and producers in the tungsten supply chain that provides secure parentage of tungsten materials and products. This initiative will leverage existing industrial and Governmental partners and process to deliver novel tungsten based products and assure critical component availability and continuity across the material lifecycle. This product centric approach will improve affordability, upgradeability, and supportability along with facilitating hardware and prototype cost objectives through a set of robust and resilient suppliers.

This effort seeks to strengthen the domestic tungsten industrial base through the development of manufacturing processes for tungsten and tungsten alloy components in support of Department of Defense (DoD) products, with specific priority given to [\*\*]. In order to develop these manufacturing processes, specialized equipment may be required for operations such as pressing/compaction, sintering, annealing, swaging, and general process automation. The objective deliverable sought is a validated manufacturing process (or processes) for the aforementioned DoD items.

&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Objective** 

The primary objective of this agreement is to prototype new manufacturing processes for Tungsten and Tungsten alloy components in support of Department of Defense products. The initiative will help to improve DoD related tungsten supply chain sustainment and resiliency.

&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Requirements and Tasks** 

This effort will follow a multi-stage process to identify, assess, challenge and improve the industrial base for tungsten based materials for defense applications.

**Phase 1:** Assess Key Providers, Materials, Facilities, Processes and Applications in the Tungsten Material Supply Chain

**Task 1.1**: Supply Chain Strategy Report

**Task 1.2**: Facility, Process, and Equipment Assessment

Phase 1 is expected to result in the contractors' assessment(s) of their own capabilities within the DoD application tungsten supply chain, i.e. Task 1.1 Supply Chain Strategy Report. This effort will begin from baseline performance characteristics and material properties of existing materials like pure tungsten and tungsten heavy alloy materials. This will require the selection of key performers in both metal powder manufacturers and material processing. Work will focus on improving the mechanical properties, performance characteristics, ammunition design and/or processing techniques.

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Throughout Phase 1 milestone execution, the contractor(s) will develop plans and strategies to enable cross DoD platform leveraging of capabilities and technologies that will directly enable improved cost and supplier resiliency. The contractor(s) will perform financial and capability assessments of their tungsten manufacturing capabilities that support defense systems and platforms in accordance with Title 10, United States Code (USC), Section 2501: National Security Strategy for National Technology and Industrial Base. At the conclusion of Phase 1, the contractor will provide a report showing their current defense supply vulnerabilities as it relates to assurance, resiliency, foreign supply vulnerabilities and affordably delivering critical applications, i.e. Task 1.1 Supply Chain Strategy Report. The contractor will provide a plan which proactively engages with traditional and emerging industrial sectors to more clearly assess and predict their vulnerabilities and address them rapidly to mitigate their impact to the defense suppliers. This may include capital investments and/or facilitization to improve their current capability and capacity, i.e. Task 1.2 Facility, Process, and Equipment Assessment.

**Phase 2:** Prototype Preliminary Methodology Recommendations

**Task 2.1**: Development of specific concepts that enable Government determination of objective prototype(s) that ultimately meet operational requirements (Initial Prototype Process and Samples)

**Task 2.2**: Show the current production can be expanded to meet critical weapon system supply requirements (Production Assessment and Industrial Process Report)

The requirements of Phase 2 may be modified based on the results of Phase 1. This phase will entail the development of specific concepts that will enable the Government to determine if the objective prototype(s) will ultimately meet operational requirements. Any required scope clarifications will be provided by the Government inclusive of any additional reporting requirements and other data requirements. The execution of requirements in this phase requires a notice to proceed from the contracting office, prior to the contractor proceeding with any of these requirements.

As part of applicable milestones, the contractor will execute the development of prototype processes that address key government product needs and the proliferation of that increased capability across the industrial base and supply chains. At the conclusion of Phase 2 milestones, the contractor will show the current production can be expanded to meet critical weapon system supply requirements. This may be accomplished, for example, by capability and skill improvements with traditional and nontraditional suppliers through innovative financial investments and technology infusion. Deliverables will include end item products relevant to DoD applications and demonstrate the effectiveness of the current capability prototype process.

**Phase 3:** Prototype Detailed Methodology Development

**Task 3.1**: The contractor(s) will assess their strategy for materials, facility, processes and applications in the tungsten material supply chain

**Task 3.1.**1: Develop Tungsten Supply Chain Resiliency and Affordability Strategy

**Task 3.1.2**: Identify and Procure Facility, Process, and Equipment Requirements to Achieve Requirements

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**Task 3.2**: The contractor(s) will demonstrate initial prototype process and production capability to support DoD tungsten product lines

**Task 3.2.1**: Deliver tungsten products representative of prototype processes that represent current capacity and capability

**Task 3.2.2**: Define Process Improvements Based on Initial Results and Assessments of Prototypes

**Task 3.3**: The contractor will deliver improved end items representative of improved prototype processes and based on facility and process improvements

**Task 3.3.1**: Demonstrate Production Scale Up Strategy, Process and End Item Delivery

**Task 3.3.2**: Demonstrate Production Improvements of Prototype Processes Representative of Operational Requirements

The requirements of Phase 3 may be modified based on the results of earlier phases. This phase will develop a detailed approach to the objective prototype process(es) to assure that the end item(s) capability meets Government requirements. As opposed to Phase 2, these deliverables represent the improved prototype process as a result of the investments and strategies laid out in Phase I, to include new equipment or technology integrated into existing capability. Any required scope clarifications will be provided by the Government, including any additional reporting requirements and other data requirements. The execution of requirements in this phase requires a notice to proceed from the contracting office, prior to the contractor proceeding with any of these requirements.

&nbsp;&nbsp;&nbsp;&nbsp;**V.** **Metrics for Successful Completion** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Phase I - Assess Key Providers, Materials, Facility, Processes and Applications in the Tungsten Material Supply Chain: Government
approval of the contractor's report demonstrating their current defense supply vulnerabilities as it relates to assurance, resiliency,
foreign supply vulnerabilities, affordability of delivering critical applications. Government approval of the contractor's plan,
which proactively engages with traditional and emerging industrial sectors to more clearly assess and predict their vulnerabilities and
address them rapidly to mitigate their impact to the defense suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Phase II – Prototype Preliminary Methodology Recommendations: The requirements of Phase II may be modified based on the results
of Phase I. Any required scope clarifications will be provided by the Government inclusive of any additional reporting requirements and
other data requirements. The execution of requirements in this phase requires a notice to proceed from the AO, prior to the contractor
proceeding with any of these requirements. Phase II will be determined successful upon Government approval that the contractor adequately
demonstrated that current production can be expanded to meet critical weapon system supply requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Phase III – Prototype Detailed Methodology Development: The requirements of Phase III may be modified based on the results of
previous Phases. Any required scope clarifications will be provided by the Government inclusive of any additional reporting requirements
and other data requirements. The execution of requirements in this phase requires a notice to proceed from the AO, prior to the contractor
proceeding with any of these requirements. Phase III will be determined successful upon Government approval of the contractor's
detailed methodology for prototype development and successful delivery and testing of prototype units.

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&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **Payable Milestones and Deliverables** 

See Exhibit D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **Use of Funds and Comptroller General Access** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. All funds are to be used only for costs that a reasonable and prudent person would incur in carrying out this prototype project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. To the extent required by 10 U.S.C. § 2371b(c), the Comptroller General shall be permitted to examine the records of any party
to this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Clauses** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Government Property: No Government property is being furnished under this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Real Property: Subject to the obligations and conditions set
forth in 2 CFR 200.311, title to real property acquired or improved under a Federal award will vest upon acquisition in the Awardee (or
Awardee's subcontractor). The Awardee's property system(s) will meet the standards as set forth in 2 CFR 200.310-316. It
is agreed that improvements and additions to real property already owned by the Awardee (or Awardee Subcontractor) will vest and transfer
ownership immediately and are eligible for encumbrances. It is agreed that any new real property will fully vest over the contract period
and transfer ownership to the Awardee (or Awardee Subcontractor) at the completion of the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Equipment: All equipment being purchased under this Agreement
will be listed as exempt property with conditional title throughout the performance of the Agreement. Exempt property is defined as tangible
personal property acquired in whole or in part with Federal funds, where the DoD Component has statutory authority to vest title in the
Awardee (or Awardee's subcontractor) without further obligation to the Federal Government. The DoD will vest title to Elmet at
the end of the contract and it is agreed that improvements and additions to equipment already owned by the Awardee (or Awardee Subcontractor)
will vest and transfer ownership immediately and are eligible for encumbrances. It is agreed that any new equipment will fully vest over
the contract period and transfer ownership to the Awardee (or Awardee Subcontractor) at the completion of the contract. CFR 200.313 "Equipment"
will apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Awardee's subcontractor (Elmet) will be making the
capital equipment purchases and therefore any language in paragraph IX.B or IX.C above would apply to Elmet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Supplies will be managed in accordance with 2 CFR 200.314

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Follow-on Contract: The potential for follow-on production for projects awarded from this CIR will be in accordance with 10 U.S.C.
2371b(f). Upon determination that the competitively awarded prototype project has been successfully completed, the requiring office may
determine to award a follow-on production contract or transaction without the use of competitive procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Freedom of Information Act (FOIA): Any sensitive documents or other proprietary data submitted by non-Government parties to this agreement
shall be marked with a restrictive legend. The Government will follow its FOIA procedures, including submitter notice, in the event that
any person requests sensitive or proprietary data which belongs to a non-Government party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Limitation of Government Liability: Claims for damages of any nature whatsoever pursued under this agreement shall be limited to direct
damages only up to the aggregate amount of Government funding disbursed as of the time the dispute arises. In no event shall the Government
be liable for claims for consequential, punitive, special and incidental damages, claims for lost profits, or other indirect damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Equipment Use and Recoupment of Investment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. As aligned with the intent of the IBAS program, the AO authorizes the Awardee's subcontractor (Elmet) to leverage equipment
acquired with Federal funds to proactively engage with the DoD, DoD contractors and also traditional and emerging industrial sectors (broad
dual use allowed) with the intent of strengthening the tungsten industrial base resiliency and to help mitigate vulnerabilities to defense
suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. During the term of this contract, the Government maintains rights to scheduling and the determination of usage of any new equipment
purchased under this agreement and shall maintain priority at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. In the event the contractor fails to fully adhere to the terms and conditions of this clause, the contractor agrees to reimburse the
Government in-whole of its investment under this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**IX.** **Intellectual Property/Data Rights** 

The Government will retain Government Purpose Rights in all technical data for the manufacturing processes for the new tungsten alloy sphere component process funded by this contract, including the processes and procedures necessary to maintain those capabilities as determined by the Government. Tech data includes, but is not limited to, all process records, descriptions of manufacture, operating and inspection procedures, quality performance and test procedures, maintenance procedures and records, material and component purchase descriptions, software, and software applications.

&nbsp;&nbsp;&nbsp;&nbsp;**X.** **Modifications** 

&nbsp;&nbsp;&nbsp;&nbsp;A. All modifications, except for minor or administrative corrections, shall be made by mutual agreement of the parties and be subject
to negotiations. Minor or administrative agreement corrections (e.g., changes in the paying office or appropriation data, changes to Government
or the Contractor personnel identified in the agreement, etc.) may be made unilaterally by the Government.

&nbsp;&nbsp;&nbsp;&nbsp;B. Any modification to this agreement shall be executed, in writing, and signed by an authorized representatives.

&nbsp;&nbsp;&nbsp;&nbsp;C. The Government will be responsible for executing all modifications to this agreement. There is no modification unless there is a formal
written modification to the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;D. In the event of a material breach of any term of this agreement, the aggrieved party shall provide notice to the other party in accordance
with the Disputes section of this agreement. Willful failure to perform a material term of this agreement, unless excused by circumstances
beyond that party's control, will be considered a breach of this agreement. The aggrieved party shall have all contractual remedies
available under Federal law, including specific performance and other equitable relief.

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&nbsp;&nbsp;&nbsp;&nbsp;E. If one party desires the termination of this agreement for its convenience, the parties agree to negotiate in good faith for a mutual
resolution of any settlement issues, including payment of costs incurred and a reasonable allowance for profit on work performed, data
rights, and deliveries of prototype items and data. Upon receiving notice that one party desires a convenience termination of this agreement,
all parties will take reasonable efforts to minimize additional costs while the settlement is negotiated. In the event that a settlement
cannot be reached, the Disputes section of this agreement will be utilized to reach a final determination.

&nbsp;&nbsp;&nbsp;&nbsp;**XI.** **Disputes** 

&nbsp;&nbsp;&nbsp;&nbsp;A. Whenever disputes, disagreements, or misunderstandings arise, the Parties shall attempt to resolve the issue(s) involved by discussion
and mutual agreement as soon as practicable. The Parties are committed to an open and forthright handling of disputes, with a good faith
attempt to resolve such issues at the lowest level possible.

&nbsp;&nbsp;&nbsp;&nbsp;B. In the event of a dispute, the aggrieved party shall document the factual issues in a concise written format, and provide a copy to
the other party for review. Within 10 calendar days, the other party shall respond in writing to the issues raised, and both parties will
attempt to resolve the issues. If a dispute remains after this point, the issue shall be elevated to the contractor point of contact for
resolution. In the event that this senior level of discussion does not settle the issue, the Senior Contracting Official (SCO) for Army
Contracting Command - Rock Island (ACC-RI), shall review the issue and provide a final decision in writing within 20 calendar days. The
SCO's resolution of the issue shall be considered final and binding unless the Contractor appeals or files a suit as provided in
the Tucker Act, 28 U.S.C. § 1491.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XII.** **Accounting System Requirements** 

&nbsp;&nbsp;&nbsp;&nbsp;A. The Contractor shall ensure that appropriate arrangements have been made for receiving, distributing and accounting for Federal funds
under this agreement. Consistent with this stipulation, an acceptable accounting system will be one in which all cash receipts and disbursements
are controlled and documented properly and which is capable of generating a cost element summary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XIII.** **Security, Safety, Environmental** 

&nbsp;&nbsp;&nbsp;&nbsp;A. SECURITY:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Security level is unclassified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The contractor shall ensure that all controlled unclassified information is handled in accordance with Department of Defense (DoD)
Instruction 8582.01 and DoD Manual (DoDM) 5200.01 Volume 4, and DoD 5010.12-M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The contractor shall implement the security requirements of NIST SP 800-171 for safeguarding its unclassified internal information
system. All cyber incidents that affect the controlled unclassified information shall be reported directly to the AO and DoD at [\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Information Subject to Export Control Laws/International Traffic in Arms Regulation (ITAR): Public Law 90-629, "Arms Export
Control Act," as amended (22 U.S.C 2751 et. Seq.) requires that all unclassified technical data with military application may not
be exported lawfully without an approval, authorization, or license under EO 12470 or the Arms Export Control Act and that such data required
an approval, authorization, or license for export under EO 12470 or Arms Export Control Act. For purposes of making this determination,
the Militarily Critical Technologies List (MCTL) shall be used as general guidance. All documents determined to contain export controlled
technical data will be marked with the following notice: WARNING: - This document contains technical data whose export is restricted by
the Arms Export Control Act (Title 22, U.S.C., App. 2401 et seq). Violations of these export laws are subject to severe criminal penalties.
Disseminate in accordance with provisions of DoD Directive 5230.25, "Withholding of Unclassified Technical Data from Public Disclosure,
6 Nov 1984 Incorporating Change 1, dated 18 Aug 1995."

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&nbsp;&nbsp;&nbsp;&nbsp;B. SAFETY:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Contractor shall comply with all Federal, State, and Local safety laws and regulations in order to maintain a safe and non-hazardous
occupational environment during execution of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Accident/Incident Report: The contractor shall report immediately any major accident/incident (including fire) resulting in any one
or more of the following: causing one or more fatalities or one or more disabling injuries; damage of Government property exceeding $10,000;
affecting program planning or production schedules; degrading the safety of equipment under contract, such as personnel injury or property
damage may be involved; identifying a potential hazard requiring corrective action. The contractor shall prepare an Accident/Incident
report for each incident per the reporting requirements section of the SOW.

&nbsp;&nbsp;&nbsp;&nbsp;C. ENVIRONMENTAL: The contractor shall adhere with Federal, State,
and local environmental laws and regulations, Executive Orders, treaties, and agreements. The contractor shall consider alternate materials
and processes in order to eliminate, reduce or minimize the generation of hazardous waste while minimizing item cost and risk/degradation
to system performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XIV.** **Foreign Participation** 

&nbsp;&nbsp;&nbsp;&nbsp;A. FOREIGN INVOLVEMENT **:** For the entirety of this agreement, keeping with the Cornerstone Mission of "Strengthen the force
posture of the US Defense Industrial Base (DIB)," and in accordance with the 2018 Unclassified National Defense Strategy (NDS) which
articulates the threat from foreign predatory economics and inter-state strategic competitions that are the primary threats to US security,
Cornerstone will restrict foreign participation, access and transfers. Any proposed foreign participation, access or transfer will require
government notification and concurrence on a case-by-case basis prior to initiating any work effort.

&nbsp;&nbsp;&nbsp;&nbsp;B. NON-US RESEARCH PROGRAMS: For the entirety of this agreement, keeping with the Cornerstone Mission of "Strengthen the force posture
of the US Defense Industrial Base (DIB)," and the intent of protecting tax-payer investments and intellectual property, Cornerstone
will restrict direct or indirect participation, collaboration, communication or acceptance of funding with non-US research programs, such
as the Thousand Talent Program (TTP), even in the case the activity is conducted with and/or through a US citizen, entity or company.
Any proposed non-US research program involvement will require government notification and concurrence on a case-by-case basis prior to
initiating any work effort.

&nbsp;&nbsp;&nbsp;&nbsp;C. FOREIGN ACQUISITIONS AND MERGERS: For the entirety of this agreement, the Cornerstone Member shall notify the Government within three
business days of entering any discussions regarding potential foreign acquisition or merger, for itself or any business unit of the Cornerstone
Member. Said notification will include all relevant details of the potential merger or acquisition. Per the "Foreign Involvement"
clause, above, the Government retains the right to consent to any foreign acquisition or merger, considering whether or not the merger/acquisition
is consistent with the best interests of the Government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XVI.** **Non-Government Personnel** 

This contract will utilize non-Government personnel to function as technical advisors to the Government. These Non-Government personnel will have access to the information submitted under this contract and will provide technical expertise and/or advice as required. All non-Government personnel have Non-Disclosure Agreements on file with the Government and are required to protect information to the same standards as Government personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XVII.** **Performance** 

&nbsp;&nbsp;&nbsp;&nbsp;A. PLACE OF PERFORMANCE: Contractor Facilities

&nbsp;&nbsp;&nbsp;&nbsp;B. PERIOD OF PERFORMANCE (PoP): The PoP is 36 months and will commence upon execution of this Agreement.

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**EXHIBIT B**

**[SUBRECIPIENT'S PROPOSAL]**

21 of 23

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**EXHIBIT C**

**REPRESENTATIONS AND CERTIFICATIONS**

Each Party to this Agreement represents and warrants to the other Parties that (1) it is free to enter into this Agreement;(2) in so doing, it will not violate any other agreement to which it is a party; and (3) it has taken all action necessary to authorize the execution and delivery of this Agreement and the performance of its obligations under this Agreement.

Limitations

Except as expressly provided herein, no party to this Agreement makes any warranty, express or implied, either in fact or by operation of law, by statute or otherwise, relating to (1) any research conducted under this agreement, or (2) any invention conceived and/or reduced to practice under this agreement, or (3) any other intellectual property developed under this Agreement, and each party to this Agreement specifically disclaims any implied warranty of merchantability or warranty of fitness for a particular purpose.

22 of 23

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**EXHIBIT D** 

**[Schedules of Payable Milestones under the Base Award and Option and Deliverables specifications]**

23 of 23

## Exhibit 10.2

**Exhibit 10.2**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

![](ea027036005_ex10-2img1.jpg)

**SUBCONTRACT AGREEMENT MODIFICATION**

---

| | |
|:---|:---|
| **Contractor Number:** | [\*\*] |
| **Subrecipient:** | Elmet Technologies LLC |
| **Address:** | 1560 Lisbon St, Lewiston, ME 04240 |

---

IN CONSIDERATION of the promises, mutual covenants, and agreements contained herein, InSitech, Inc. ("INSITECH" or "Awardee") and Elmet Technologies LLC ("Subrecipient" and collectively with InSitech, Inc., the "Parties") agree as follows:

The purpose of this Modification is to amend the funded amount of the Subcontract Agreement between the Parties dated October 30, 2019 to $7,886,383.17, increased $3,799,851.64 from $4,086,531.53, under the exact terms and conditions. The milestone delivery and corresponding invoicing schedule for the increased funding is incorporated at Exhibit A. The Subrecipient agrees to complete the proposed work efforts under the Subcontract Agreement, as outlined in Exhibit B and clarified to the government in the Responses to June 29, 2020 Email Questions on Contract Modifications, included in Exhibit B. Unless modified in writing by mutual agreement of the parties, InSitech, Inc. is not obligated to compensate Elmet Technologies LLC beyond the $7,886,383.17.

IN WITNESS WHEREOF, the parties hereto have, through duly authorized officials, executed this Agreement effective as of the date indicated below.

---

| | |
|:---|:---|
| InSitech, Inc. | Elmet Technologies, LLC |
| /s/ Joseph N. Moran | /s/ Andrew Nichols |
| SIGNATURE | SIGNATURE |
| Joseph N. Moran | Andrew Nichols |
| NAME | NAME |
| President | Chief Executive Officer |
| TITLE | TITLE |
| July 21, 2020 | July 21, 2020 |
| DATE | DATE |

---

![](ea027036005_ex10-2img1.jpg)

**EXHIBIT A**

**[Exhibit A provides the milestone payment schedule in connection with the additional funding.]**

![](ea027036005_ex10-2img1.jpg)

**EXHIBIT B**

**[Exhibit B provides the subrecipient's proposal, deliverables specifications and payment schedule in connection with this Subcontractor Agreement]**

## Exhibit 10.3

**Exhibit 10.3**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

**Prototype Project Agreement**

FOR

**Tungsten Supply Chain Resiliency Prototype**

BETWEEN

**the United States of America**

AND

**InSitech, Inc.**

UNDER

**"Cornerstone" Other Transaction Authority (OTA)**

**Agreement Number: [\*\*]/ Invoicing: [\*\*]**

**Agreement Type: Fixed Amount**

**Total Amount: $12,761,571.40**

**Government Share: $12,761,571.40 (Fully Funded)**

**Contractor Share: $0**

**Authority: 10 U.S.C. § 2371b**

**Effective Date: 12 July 2021**

**Modification Log:**

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Date** | &nbsp;&nbsp;**Obligated Amount** | &nbsp;&nbsp;**Description** |
| &nbsp;&nbsp;[\*\*] | &nbsp;&nbsp;31-Oct-2019 | &nbsp;&nbsp;$4256803.68 | &nbsp;&nbsp;Obligate funding for the base effort |
| &nbsp;&nbsp;[\*\*] | &nbsp;&nbsp;20-Jul-2020 | &nbsp;&nbsp;$3951945.72 | &nbsp;&nbsp;Update Agreement total and obligate funding for the Option. |
| &nbsp;&nbsp;[\*\*] | &nbsp;&nbsp;28-Sep-2020 | &nbsp;&nbsp;$0.00 | &nbsp;&nbsp;Incorporate FAR 52.204-25 |
| &nbsp;&nbsp;[\*\*] |  | &nbsp;&nbsp;$4552822.00 | &nbsp;&nbsp;Ceiling Increase |
| &nbsp;&nbsp;**Total** |  | &nbsp;&nbsp;**$12761571.40** |  |

---

**I.** **Authority** 

This agreement is an "Other Transaction" pursuant to 10 U.S.C. § 2371b. This agreement is not a procurement contract, cooperative agreement or grant agreement for purposes of Federal Acquisition Regulation (FAR) Subsection 31.205-18 or any other purpose. The provisions of the FAR, Department of Defense Federal Acquisition Regulation Supplement and Army Federal Acquisition Regulation Supplement do not apply, unless explicitly included in this agreement.

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**II.** **Overview** 

&nbsp;&nbsp;&nbsp;&nbsp;A. The United States Government, hereinafter referred to as the "Government",
 and InSitech, Inc., hereinafter referred to as "InSitech", agree to implement
 a prototype for manufacturing processes for Tungsten and Tungsten alloy components, the funded
 phase is specifically related to a 6-Ton Press line, Furnace Upgrade, and Powder Blender.
 The additional full contract, with the options, includes; a large swager, medium swager,
 multi-axis turning center, and optical inspection equipment. This effort shall be performed
 in accordance with the contents in this agreement, as well as Prototype Obligation Agreement
 [\*\*] and its corresponding attachments.

&nbsp;&nbsp;&nbsp;&nbsp;B. This is a fixed amount OTA Prototype Project Agreement. InSitech
 will be paid a fixed amount for each payable milestone accomplished in accordance with Payable
 Milestones and Deliverables set forth in Section VII.

&nbsp;&nbsp;&nbsp;&nbsp;C. To meet 10 U.S.C. § 2371b, InSitech is a non-traditional defense
 contractor.

**III.** **Objective** 

The primary objective of this agreement is to prototype new manufacturing processes for Tungsten and Tungsten alloy components in support of Department of Defense products. The initiative will help to improve DoD related tungsten supply chain sustainment and resiliency.

**IV.** **Responsibilities** 

&nbsp;&nbsp;&nbsp;&nbsp;A. The Agreements Officer (AO) will use reasonable efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Provide agreement support and management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Provide Manufacturing Resiliency and Assurance (MRA) technical support
 in the monitoring and assessment of the industrial base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Provide technical support in the performance of contractor efforts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Perform efforts as agreed upon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Make mutual changes to requirement/timeline when necessary.

&nbsp;&nbsp;&nbsp;&nbsp;B. The Office of MRA will use reasonable efforts to, in accordance with
 10 U.S.C. § 2508 Industrial Base Analysis and Sustainment Program (IBAS):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Support the monitoring and assessment of the industrial base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Address critical issues in the industrial base relating to urgent operational
 needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Support efforts to expand the industrial base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Address supply chain vulnerabilities.

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&nbsp;&nbsp;&nbsp;&nbsp;C. The Contractor will use reasonable efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Manage the agreement and potential subcontractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Manage the intellectual property and technical design packages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Perform efforts as agreed upon by both parties.

**V.** **Tasks** 

The Contractor shall be responsible for executing the agreed subset of requirements of Statement of Objectives (SOO) – Tungsten Supply Chain Resiliency dated 11 May 2021. The funded award includes the spherical fragment (b.i.4), powder (b.i.5), and thermionic cathode (b.i.7) programs. The full contract with the options adds the additional objectives; rod penetrator (b.i.1) and rocket motor nozzle (b.i.6) programs. The SOO can be found at Attachment 0002 of [\*\*]. The specific funded milestones are listed in the Payable Milestones for the Base Award of the Primary Prototype Tasks under section VII.

**VI.** **Metrics for Successful Completion** 

&nbsp;&nbsp;&nbsp;&nbsp;A. Phase I - Assess Key Providers, Materials, Facility, Processes and
 Applications in the Tungsten Material Supply Chain: Government approval of the contractor's
 report demonstrating their current defense supply vulnerabilities as it relates to assurance,
 resiliency, foreign supply vulnerabilities, affordability of delivering critical applications.
 Government approval of the contractor's plan, which proactively engages with traditional
 and emerging industrial sectors to more clearly assess and predict their vulnerabilities
 and address them rapidly to mitigate their impact to the defense suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;B. Phase II – Prototype Preliminary Methodology Recommendations:
 The requirements of Phase II may be modified based on the results of Phase I. Any required
 scope clarifications will be provided by the Government inclusive of any additional reporting
 requirements and other data requirements. The execution of requirements in this phase requires
 a notice to proceed from the AO, prior to the contractor proceeding with any of these requirements.
 Phase II will be determined successful upon Government approval that the contractor adequately
 demonstrated that current production can be expanded to meet critical weapon system supply
 requirements. Payable Milestones for the Base Award of the Primary Prototype Tasks under
 section VII.

&nbsp;&nbsp;&nbsp;&nbsp;C. Phase III – Prototype Detailed Methodology Development: The
 requirements of Phase III may be modified based on the results of previous Phases. Any required
 scope clarifications will be provided by the Government inclusive of any additional reporting
 requirements and other data requirements. The execution of requirements in this phase requires
 a notice to proceed from the AO, prior to the contractor proceeding with any of these requirements.
 Phase III will be determined successful upon Government approval of the contractor's
 detailed methodology for prototype development and successful delivery and testing of prototype
 units.

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&nbsp;&nbsp;&nbsp;&nbsp;D. Phase IV – Production Scale Up and Tolerancing: This is an addition
 to the original three phases of work to address lessons learned and adjust to emerging requirements
 in the supply chain. The initial three phases have established new capability to meet the
 original customer specifications for DoD applications. Any required scope clarifications
 will be provided by the Government inclusive of any additional reporting requirements and
 other data requirements. The execution of requirements in this phase requires a notice to
 proceed from the AO, prior to the contractor proceeding with any of these requirements. Phase
 4 will allow current production improvements to meet end item customer demands for quality
 and capacity.

**VII. Payable Milestones and Deliverables**

Milestone payments will be made in accordance with this section. Each deliverable shall demonstrate progress towards meeting objectives of this initiative. Deliverable reports shall be submitted to the AO, Agreements Officer Representative (AOR), Program Manager, and Agreements Specialist found at the bottom of this agreement. Prior to invoicing, the Contractor must receive Government approval of each deliverable item. Further detail can be found in section VIII, Financial Obligations.

Within 10 calendar days after the completion of each milestone, the Contractor will provide the Government with a milestone status report that provides, as applicable: updates on progress to meet the requirements of the SOO, questions or concerns related to the overall status of the program, a breakdown of any information or status updates needed from the Government, and a breakdown of the planned activities in the follow-on reporting period. In addition to providing a milestone status report, the Contractor will hold monthly teleconference calls with the Government to present the reporting deliverables and cooperatively develop and redirect project plans on an as-needed basis.

**[Description of the Payable Milestones for the Base Award of the Primary Prototype Tasks]**

**1.** **Summary:** 

**[Description of the Project Deliverables specifications]**

&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Financial Obligations** 

&nbsp;&nbsp;&nbsp;&nbsp;A. Government Obligation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Government will provide $4,256,803.68 to fund the Primary Prototype
 Tasks for this effort and $3,951,845.72 for Option I, as described in Section VI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Government will provide $4,552,822.00 to fund Phase IV associated
 with the Ceiling Increase for this effort, as described in Section VI.

&nbsp;&nbsp;&nbsp;&nbsp;B. Basis of Payment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The basis of payment for this effort will be in accordance with Section
 VII. The milestones represent meaningful efforts that are an integral and necessary part
 of performance. Each milestone shall be tracked on an integrated master schedule. For each
 milestone, the Contractor shall provide a status report detailing the completion of each
 specific Contract Line Item Number (CLIN). No specific format is required for the milestone
 status report. Initial submission of the milestone report submitted to the AO, AOR, and Agreements
 Specialist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Acceptance criteria for each milestone will be approved/disapproved by
 the AOR within 14 calendar days of receipt from the Contractor. Once the Government has determined
 the milestone has been successfully completed and provided notification of approval, the
 Contractor may invoice through Wide Area Work Flow (WAWF) as outlined in paragraph D below.

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&nbsp;&nbsp;&nbsp;&nbsp;C. Use of Funds and Comptroller General Access

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. All funds are to be used only for costs that a reasonable and prudent
 person would incur in carrying out this prototype project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. To the extent required by 10 U.S.C. § 2371b(c), the Comptroller
 General shall be permitted to examine the records of any party to this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;D. WAWF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Payments will be made by the Defense Finance and Accounting Services,
 as indicated below, within 30 calendar days of an accepted invoice in WAWF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Contractor is required to utilize the WAWF system when processing
 invoices and receiving reports under this agreement. The Contractor shall (i) ensure an electronic
 business point of contact is designated in System for Award Management (SAM) at http://www.sam.gov
 and (ii) register to use WAWF-RA at the https://wawf.eb.mil site within 10 calendar days
 after award of this agreement. Systematic procedures to register are available at https://wawf.eb.mil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The Contractor shall use the "2-in-1" Combo format when
 submitting invoices. The following inputs shall be included on each invoice submitted in
 WAWF:

[Invoice specifications]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. The following guidance is provided for invoicing processed under
 this agreement through WAWF:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Contractor shall attach the AOR's approval of each milestone
 with each invoice in WAWF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Contractor, when entering invoices in WAWF shall utilize the
 CLINs associated with each payable milestone. The description of the CLIN shall include reference
 to the associated milestone number along with other necessary descriptive information. The
 Contractor agrees that the Government may reject invoices not submitted in accordance with
 this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The AOR will formally inspect and accept all deliverables/payable
 milestones. The AOR will review the invoices in WAWF and either accept or reject them.

&nbsp;&nbsp;&nbsp;&nbsp;E. Payment by Electronic Funds Transfer: All payments by the Government
 under this contract, shall be made by electronic funds transfer (EFT). The Government will
 make payment to the Contractor using the EFT information contained in the SAM. In the event
 that the EFT information changes, the Contractor shall be responsible for providing the updated
 information to the SAM.

**IX.** **Clauses** 

&nbsp;&nbsp;&nbsp;&nbsp;A. Government Property: No Government property is being furnished under
 this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;B. Real Property: Subject to the obligations and conditions set forth
 in 2 CFR 200.311, title to real property acquired or improved under a Federal award will
 vest upon acquisition in the Awardee (or Awardee's subcontractor). The Awardee's
 property system(s) will meet the standards as set forth in 2 CFR 200.310-316. It is agreed
 that improvements and additions to real property already owned by the Awardee (or Awardee
 Subcontractor) will vest and transfer ownership immediately and are eligible for encumbrances.
 It is agreed that any new real property will fully vest over the contract period and transfer
 ownership to the Awardee (or Awardee Subcontractor) at the completion of the contract.

&nbsp;&nbsp;&nbsp;&nbsp;C. Equipment: All equipment being purchases under this Agreement will
 be listed as exempt property with conditional title throughout the performance of the Agreement.
 Exempt property is defined as tangible person property acquired in whole or in part with
 Federal funds, where the DoD Component has statutory authority to vest title in the Awardee
 (or Awardee's subcontractor) without further obligation to the Federal Government.
 The DoD will vest title to Elmet at the end of the contract and it is agreed that improvements
 and additions to equipment already owned by the Awardee (or Awardee Subcontractor) will vest
 and transfer ownership immediately are eligible for encumbrances. It is agreed that any new
 equipment will fully vest over the contract period and transfer ownership to the Awardee
 (or Awardee Subcontractor) at the completion of the contract. CFR 200.313 "Equipment"
 will apply.

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&nbsp;&nbsp;&nbsp;&nbsp;D. The Awardee's subcontractor (Elmet) will be making the capital
 equipment purchases and therefore any language in paragraph IX.B. or IX.C above would apply
 to Elmet.

&nbsp;&nbsp;&nbsp;&nbsp;E. Supplies will be managed in accordance with 2 CFR 200.314.

&nbsp;&nbsp;&nbsp;&nbsp;F. Follow-on Contract: The potential for follow-on production for projects
 awarded from this CIR will be in accordance with 10 U.S.C. 237b(f). Upon determination that
 the competitively awarded prototype project has been successfully completed, the requiring
 office may determine to award a follow-on production contract or transaction without the
 use of the competitive procedures.

&nbsp;&nbsp;&nbsp;&nbsp;G. Freedom of Information Act (FOIA): Any sensitive documents or other
 proprietary data submitted by non-Government parties to this agreement shall be marked with
 restrictive legend. The Government will follow its FOIA procedures, including submitter notice,
 in the event that any persons requests sensitive or proprietary data which belongs to a non-Government
 party.

&nbsp;&nbsp;&nbsp;&nbsp;H. Limitation of Government Liability: Claims for damages of any nature
 whatsoever pursued under this agreement shall be limited to direct damages only up to the
 aggregated amount of Government funding disbursed as of the time the dispute arises. In no
 event shall the Government be liable for claims for consequential, punitive, special and
 incidental damages, claims for lost profits, or other indirect damages.

&nbsp;&nbsp;&nbsp;&nbsp;I. Equipment Use and Recoupment of Investment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. As aligned with the intent of the IBAS program, the AO authorizes
 the Awardee's subcontractor (Elmet) to leverage equipment acquired with Federal funds
 to proactively engage with the DoD, DoD contractors and also traditional and emerging industrial
 sectors (broad dual use allowed) with the intent of strengthening the tungsten industrial
 base resiliency and to help mitigate vulnerabilities to defense suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. During the term of this contract, the Government maintains the rights
 to scheduling and the determination of usage of any new equipment purchased under this agreement
 and shall maintain priority at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. In the event the contractor fails to fully adhere to the terms
 and conditions of this clause, the contractor agrees to reimburse the Government in-whole
 of its investment under this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;J. FAR 52.204-25, Prohibition on Contracting for Certain Telecommunications
 and Video Surveillance Services or Equipment.

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**X.** **Intellectual Property/Data Rights** 

The Government will retain Government Purpose Rights in all technical data for the manufacturing processes for the new tungsten alloy sphere component process funded by this contract, including the processes and procedures necessary to maintain those capabilities as determined by the Government. Tech data includes, but is not limited to, all process records, descriptions of manufacture, operating and inspection procedures, quality performance and test procedures, maintenance procedures and records, material and component purchase descriptions, software, and software applications.

**XI.** **Modifications** 

&nbsp;&nbsp;&nbsp;&nbsp;A. All modifications, except for minor or administrative corrections,
 shall be made by mutual agreement of the parties and be subject to negotiations. Minor or
 administrative agreement corrections (e.g., changes in the paying office or appropriation
 data, changes to Government or the Contractor personnel identified in the agreement, etc.)
 may be made unilaterally by the Government.

&nbsp;&nbsp;&nbsp;&nbsp;B. Any modification to this agreement shall be executed, in writing,
 and signed by an authorized representative of the Government and the Contractor. Modification
 of this agreement does not modify the terms of the Cornerstone OTA found at: http://ibasp-public.ria.army.mil/cornerstone/.

&nbsp;&nbsp;&nbsp;&nbsp;C. The Government will be responsible for executing all modifications
 to this agreement. There is no modification unless there is a formal written modification
 to the agreement by the AO.

&nbsp;&nbsp;&nbsp;&nbsp;D. In the event of a material breach of any term of this agreement,
 the aggrieved party shall provide notice to the other party in accordance with the Disputes
 section of this agreement. Willful failure to perform a material term of this agreement,
 unless excused by circumstances beyond that party's control, will be considered a breach
 of this agreement. The aggrieved party shall have all contractual remedies available under
 Federal law, including specific performance and other equitable relief.

&nbsp;&nbsp;&nbsp;&nbsp;E. If one party desires the termination of this agreement for its convenience,
 the parties agree to negotiate in good faith for a mutual resolution of any settlement issues,
 including payment of costs incurred and a reasonable allowance for profit on work performed,
 data rights, and deliveries of prototype items and data. Upon receiving notice that one party
 desires a convenience termination of this agreement, all parties will take reasonable efforts
 to minimize additional costs while the settlement is negotiated. In the event that a settlement
 cannot be reached, the Disputes section of this agreement will be utilized to reach a final
 determination.

**XII.** **Disputes** 

&nbsp;&nbsp;&nbsp;&nbsp;A. Whenever disputes, disagreements, or misunderstandings arise, the
 Parties shall attempt to resolve the issue(s) involved by discussion and mutual agreement
 as soon as practicable. The Parties are committed to an open and forthright handling of disputes,
 with a good faith attempt to resolve such issues at the lowest level possible.

&nbsp;&nbsp;&nbsp;&nbsp;B. In the event of a dispute, the aggrieved party shall document the
 factual issues in a concise written format, and provide a copy to the other party for review.
 Within 10 calendar days, the other party shall respond in writing to the issues raised, and
 both parties will attempt to resolve the issues. If a dispute remains after this point, the
 issue shall be elevated to the contractor point of contact listed in Section XIX of this
 document, and the Government AO, for resolution. In the event that this senior level of discussion
 does not settle the issue, the Senior Contracting Official (SCO) for Army Contracting Command
 - Rock Island (ACC-RI), shall review the issue and provide a final decision in writing within
 20 calendar days. The SCO's resolution of the issue shall be considered final and binding
 unless the Contractor appeals or files a suit as provided in the Tucker Act, 28 U.S.C. §
 1491.

**XIII.** **Accounting System Requirements** 

&nbsp;&nbsp;&nbsp;&nbsp;A. The Contractor shall ensure that appropriate arrangements have been
 made for receiving, distributing and accounting for Federal funds under this agreement. Consistent
 with this stipulation, an acceptable accounting system will be one in which all cash receipts
 and disbursements are controlled and documented properly and which is capable of generating
 a cost element summary.

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**XIV.** **Security, Safety, Environmental** 

&nbsp;&nbsp;&nbsp;&nbsp;A. SECURITY:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Security level is unclassified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The contractor shall ensure that all controlled unclassified information
 is handled in accordance with Department of Defense (DoD) Instruction 8582.01 and DoD Manual
 (DoDM) 5200.01 Volume 4, and DoD 5010.12-M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The contractor shall implement the security requirements of NIST SP
 800-171 for safeguarding its unclassified internal information system. All cyber incidents
 that affect the controlled unclassified information shall be reported directly to the AO
 and DoD at https://dibnet.dod.mil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Information Subject to Export Control Laws/International Traffic in Arms
 Regulation (ITAR): Public Law 90-629, "Arms Export Control Act," as amended (22
 U.S.C 2751 et. Seq.) requires that all unclassified technical data with military application
 may not be exported lawfully without an approval, authorization, or license under EO 12470
 or the Arms Export Control Act and that such data required an approval, authorization, or
 license for export under EO 12470 or Arms Export Control Act. For purposes of making this
 determination, the Militarily Critical Technologies List (MCTL) shall be used as general
 guidance. All documents determined to contain export controlled technical data will be marked
 with the following notice: WARNING: - This document contains technical data whose export
 is restricted by the Arms Export Control Act (Title 22, U.S.C., App. 2401 et seq). Violations
 of these export laws are subject to severe criminal penalties. Disseminate in accordance
 with provisions of DoD Directive 5230.25, "Withholding of Unclassified Technical Data
 from Public Disclosure, 6 Nov 1984 Incorporating Change 1, dated 18 Aug 1995."

12 July 2021

Prototype Project Agreement:

Tungsten Supply Chain Resiliency

InSitech, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;B. SAFETY:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Contractor shall comply with all Federal, State, and Local safety
 laws and regulations in order to maintain a safe and non-hazardous occupational environment
 during execution of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Accident/Incident Report: The contractor shall report immediately
 any major accident/incident (including fire) resulting in any one or more of the following:
 causing one or more fatalities or one or more disabling injuries; damage of Government property
 exceeding $10,000; affecting program planning or production schedules; degrading the safety
 of equipment under contract, such as personnel injury or property damage may be involved;
 identifying a potential hazard requiring corrective action. The contractor shall prepare
 an Accident/Incident report for each incident per the reporting requirements section of the
 SOW.

&nbsp;&nbsp;&nbsp;&nbsp;C. ENVIRONMENTAL: The contractor shall adhere with Federal, State,
and local environmental laws and regulations, Executive Orders, treaties, and agreements. The contractor shall consider alternate materials
and processes in order to eliminate, reduce or minimize the generation of hazardous waste while minimizing item cost and risk/degradation
to system performance.

**XV.** **Foreign Participation** 

&nbsp;&nbsp;&nbsp;&nbsp;A. FOREIGN INVOLVEMENT **:** For the entirety of this agreement, keeping
 with the Cornerstone Mission of "Strengthen the force posture of the US Defense Industrial
 Base (DIB)," and in accordance with the 2018 Unclassified National Defense Strategy
 (NDS) which articulates the threat from foreign predatory economics and inter-state strategic
 competitions that are the primary threats to US security, Cornerstone will restrict foreign
 participation, access and transfers. Any proposed foreign participation, access or transfer
 will require government notification and concurrence on a case-by-case basis prior to initiating
 any work effort.

&nbsp;&nbsp;&nbsp;&nbsp;B. NON-US RESEARCH PROGRAMS: For the entirety of this agreement, keeping
 with the Cornerstone Mission of "Strengthen the force posture of the US Defense Industrial
 Base (DIB)," and the intent of protecting tax-payer investments and intellectual property,
 Cornerstone will restrict direct or indirect participation, collaboration, communication
 or acceptance of funding with non-US research programs, such as the Thousand Talent Program
 (TTP), even in the case the activity is conducted with and/or through a US citizen, entity
 or company. Any proposed non-US research program involvement will require government notification
 and concurrence on a case-by-case basis prior to initiating any work effort.

&nbsp;&nbsp;&nbsp;&nbsp;C. FOREIGN ACQUISITIONS AND MERGERS: For the entirety of this agreement,
 the Cornerstone Member shall notify the Government within three business days of entering
 any discussions regarding potential foreign acquisition or merger, for itself or any business
 unit of the Cornerstone Member. Said notification will include all relevant details of the
 potential merger or acquisition. Per the "Foreign Involvement" clause, above,
 the Government retains the right to consent to any foreign acquisition or merger, considering
 whether or not the merger/acquisition is consistent with the best interests of the Government.

12 July 2021

Prototype Project Agreement:

Tungsten Supply Chain Resiliency

InSitech, Inc.

**XVI.** **Non-Government Personnel** 

This OTA will utilize non-Government personnel to function as technical advisors to the Government. These Non-Government personnel will have access to the information submitted under this OTA and will provide technical expertise and/or advice as required. All non-Government personnel have Non-Disclosure Agreements on file with the Government and are required to protect information to the same standards as Government personnel.

**XVII.** **Performance** 

&nbsp;&nbsp;&nbsp;&nbsp;A. PLACE OF PERFORMANCE: Contractor Facilities

&nbsp;&nbsp;&nbsp;&nbsp;B. PERIOD OF PERFORMANCE (PoP): The PoP is 36 months and will commence
 upon execution of this OT agreement. PoP for the Phase IV ceiling increase is 24 months after
 contract award.

**XIX.** **Points of Contact** 

The following personnel are designated as the Points of Contact between the Parties in the performance of this Prototype Project Agreement:

President

InSitech, Inc.

[\*\*]

**Joseph Moran**

President

InSitech, Inc.

[\*\*]

## Exhibit 10.4

**Exhibit 10.4**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

![](ea027036005_ex10-4img1.jpg)

**SUBCONTRACT AGREEMENT <br> [\*\*]**

---

| | |
|:---|:---|
| **Subrecipient:** | **Elmet Technologies** |
| **Address:** | 1560 Lisbon Street, Lewiston, ME 04240 |

---

IN CONSIDERATION of the promises, mutual covenants, and agreements contained herein, InSitech, Inc. ("INSITECH") and Elmet Technologies ("Subrecipient" and collectively with InSitech, the "Parties") agree as follows:

This Subcontract Agreement (this "Agreement") constitutes the entire agreement and understanding between the Parties with respect to ALL documents incorporated herein, and supersedes all prior representations and agreements. It shall not be varied except by an instrument in writing of subsequent date duly executed by authorized representatives of the Parties.

IN WITNESS WHEREOF, the Parties hereto have, through duly authorized officials, executed this Agreement effective as of the date indicated below.

---

| | |
|:---|:---|
| **INSITECH, Inc.** | **ELMET TECHNOLOGIES** |
| /s/ Joseph N. Moran | /s/ Peter Anania |
| SIGNATURE | SIGNATURE |
| Joseph N. Moran | Peter Anania |
| NAME | NAME |
| President | Chief Executive Officer |
| TITLE | TITLE |
| December 22, 2022 | December 22, 2022 |
| DATE | DATE |

---

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WHEREAS, INSITECH desires to have the Subrecipient perform certain services and the Subrecipient desires to undertake the performance of said services, NOW, THEREFORE, the Parties hereby covenant and agree pursuant to this Agreement, including, without limitation, the Schedule, General Provisions, and Exhibits hereinafter incorporated as follows:

**SCHEDULE**

1. <u>STATEMENT OF WORK</u> 

The Subrecipient agrees to complete the Statement of Work, herein incorporated as Exhibit A, and the Assured Munitions Critical Materials Supply Chain Statement of Objectives (SOO) dated 7 June 2022. The Subrecipient's proposal is herein incorporated as Exhibit B.

2. <u>SUBAWARD TYPE</u>

This is a firm fixed price payable milestone type Sub-award incorporated as Exhibit C.

3. <u>PERIOD OF PERFORMANCE</u>

The services for this effort to be performed by the Subrecipient shall commence on December 22, 2022, and shall be completed December 21, 2023.

4. <u>SUBAWARD VALUE</u>

The Subaward Value shall be a firm fixed price of **$6,724,547** for services rendered as described in Paragraph 1 above. Unless modified in writing by mutual agreement of the Parties, INSITECH is not obligated to compensate Subrecipient beyond the **$6,724,547** in funding, including any travel requirements. The foregoing notification requirement applies to each increment of funding provided to Subrecipient under the Statement of Work.

5. <u>NOTICE OF DELAYS</u>

In the event Subrecipient encounters difficulty in meeting performance requirements or anticipates difficulty in complying with this Agreement's delivery schedule, dates, or whenever Subrecipient has knowledge that any actual or potential situation is delaying or threatens to delay the timely performance of this Agreement, Subrecipient shall notify INSITECH, in writing, within twenty-four (24) hours of discovery, giving pertinent details. This notification shall be informational only and compliance with this notification provision shall not be construed as a waiver by INSITECH of any delivery schedule, date, or of any rights or remedies provided by law or under this Agreement.

6. <u>INVOICES AND PAYMENT</u>

The Subrecipient shall submit invoices for this effort in accordance with the payable milestone table above. Invoices shall be submitted to Joseph Moran via email at [\*\*].

All invoices shall be certified and submitted in accordance with the invoice schedule provided in milestone payment above, and shall contain the following information:

1) Subrecipient's name and business address

2) Contract Number

3) Date of Invoice

4) Description of Services (Title)

5) Period covered by invoice

6) Firm Fixed Price amount billed figure

7) Name, title, phone number, and complete mailing address of responsible official to whom payment is to be sent

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A final invoice for the Agreement shall be marked "Final Invoice" and shall be submitted within thirty (30) calendar days after the associated payable milestone is completed. Payment of the final invoice for the Agreement shall constitute final acceptance.

7. <u>PAYMENT TERMS</u>

Payment terms are net sixty (60) days after INSITECH's receipt of a proper invoice and acceptance by the Government. If INSITECH pays any invoice(s) on terms other than net 60 days during the term of this Agreement, that does not create any obligation on INSITECH's part to pay other invoices earlier than 60 days nor any obligation on Subrecipient's part to accept payment later than 60 days.

Unless specifically authorized in writing by both Parties, Subrecipient is not authorized or obligated to perform and INSITECH is not obligated to reimburse Subrecipient for work performed on an overtime, extended work week, shift premium, or uncompensated time basis.

Payment shall not constitute final acceptance; *<u>provided, however</u>*, payment of the final invoice for the Agreement shall constitute final acceptance.

8. <u>REPRESENTATIVES AND COMMUNICATIONS</u>

The following Representatives of INSITECH and Subrecipient are hereby designated for this Agreement:

Subrecipient Representatives:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Technical Representative | &nbsp;&nbsp;Contracts Representative |
| &nbsp;&nbsp;Name: Bill Stewart | &nbsp;&nbsp;Name: Landon Mertz |
| &nbsp;&nbsp;Phone Number: [\*\*] | &nbsp;&nbsp;Phone Number: [\*\*] |
| &nbsp;&nbsp;Email Address: [\*\*] | &nbsp;&nbsp;Email Address: [\*\*] |

---

INSITECH Representatives:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Technical Representative | &nbsp;&nbsp;Subcontracts Representative |
| &nbsp;&nbsp;Name: Joseph Moran | &nbsp;&nbsp;Name: Joseph Moran |
| &nbsp;&nbsp;Phone Number: [\*\*] | &nbsp;&nbsp;Phone Number: [\*\*] |
| &nbsp;&nbsp;Email Address: [\*\*] | &nbsp;&nbsp;Email Address: [\*\*] |

---

INSITECH's Technical Representative is responsible for day-to-day clarifications and guidance as may be required within the scope of the technical work requirements. All written communications to INSITECH shall be transmitted to both the designated Technical Representative and Subcontracts Representative.

Contact with INSITECH regarding prices, terms, quantities, deliveries and financial adjustments shall be made only between INSITECH's Subcontracts Representative and the Subrecipient's Contracts Representative. Actions taken by either Party, which by their nature affect a change to this Agreement, shall only be binding upon the other Party when such action is specifically authorized in writing by such Party's Subcontracts or Contracts Representative. All written communications between Subrecipient and INSITECH shall be addressed and directed to INSITECH's Subcontracts Representative.

All commitments hereunder (subsequent to execution of this Agreement) shall be made through the respective Parties' Contracts/Subcontracts Representative. No verbal or written request, notices, authorization, direction or order received by either Party shall be binding upon the other Party, or serve as the basis for a change in the subcontract cost, fee, price, schedule or any other provision of this Agreement, unless issued (or confirmed) in writing by the other Party's Subcontracts or Contracts Representative.

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INSITECH shall be responsible for all liaisons and communications with INSITECH's customer as well as INSITECH's other subcontractors for the term of this Agreement. Except as otherwise provided in this Agreement, the Subrecipient shall not communicate with INSITECH's customer nor INSITECH's other subcontractors regarding this Agreement except with the prior consent of INSITECH's Subcontracts Representative.

A Party shall immediately notify the other Party's Subcontracts or Contracts Representative whenever a verbal or written change notification has been received from an employee of such Party (other than the Technical Representative), which would affect any of the terms, conditions, cost, schedules, etc. of this Agreement. Subrecipient is to perform no work or make any changes in response to any such notification, unless both Parties' agree, in writing, to implement such change notification.

Notwithstanding the foregoing, Subrecipient shall be permitted to directly contact the Government at any time as required or otherwise provided under application law or regulation, including, without limitation, in connection with Subrecipient's rights to any invention or other intellectual property created under this Agreement, as permitted under 37 CFR 401, 32 CFR 32.26.

9. <u>REPRESENTATIONS AND CERTIFICATIONS</u>

The Representations and Certifications completed by the Parties are hereby incorporated as part of this Subaward as Exhibit D.

10. <u>SECURITY, SAFETY, ENVIRONMENTAL, FOREIGN PARTICIPATION & NON-GOVERNMENT PERSONNEL</u>

The Security requirements for the Subrecipient are hereby incorporated as part of this Subaward as referenced in Exhibit E.

11. <u>AUDITS</u>

The Subrecipient is subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (USC 7501 – 7507) and revised OMB Circular A-133, "Audits of States, Local Governments, and Non-profit Organizations."

12. <u>PROGRESS REPORTS</u>

If not defined in an attached Statement of Work or in any resulting communications, the Subrecipient shall submit a progress report within five (5) calendar days following the report period, as outlined in the milestone payments, to include the following, as applicable:

● Performance Metrics Task Order Schedule

● Items for Government Review Accomplishments

● Significant Open Issues, Risk and Mitigation Action Summary of Issues Closed

● Meetings Completed Projected Meetings

● Subrecipient Performance - discuss 1st Tier subcontractors and vendor performance Projected Activities for Next Reporting Period

● a summary of the work performed during the reporting period

● a summary of progress achieved in the completion of work in relation to the planned schedule

● a brief discussion of any potential problems, their anticipated impact on task performance, and recommended problem solutions, including planned or corrective action to be taken

● a statement of the work planned to be performed during the next reporting period

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13. <u>OWNERSHIP</u>

The Parties agree and acknowledge that Subrecipient retains ownership and all rights to any inventions or other intellectual property and grants no license, right, title, or interest, directly or indirectly, in or to any such inventions or other intellectual property to INSITECH.

14. <u>PATENT, DATA RIGHTS AND COPYRIGHTS</u>

The Government will establish Government Purpose rights in all technical data for the manufacturing processes, including the processes and procedures necessary to maintain those capabilities as determined by the Government. Technical data includes, but is not limited to, all process records, descriptions of manufacture, operating and inspection procedures, quality performance and test procedures, maintenance procedures and records, material and component purchase descriptions, software, and software applications. Irrespective of the source of funds, the contractor grants nothing less than Government Purpose rights in all technical data used in the execution of this agreement, except as otherwise specifically negotiated. Government Purpose rights involve the right to use, modify, release, reproduce, perform, display or disclose the data within the Government without restriction but may release or disclose the data outside the Government only for government purposes. Technical data will be provided to the Government at the end of the contract performance period in its most current form; i.e., current as of the last date of its use. Technical data delivered with Government Purpose rights will automatically revert to unlimited rights 5 years after the end of the contract performance period. The offeror may identify and assert restrictions on the Government's use, release, or disclosure of technical data.

15. <u>SPECIAL TERMS AND CONDITIONS</u>

&nbsp;&nbsp;&nbsp;&nbsp;A. Government Property: None

&nbsp;&nbsp;&nbsp;&nbsp;B. Freedom of Information Act (FOIA): Any sensitive documents or other proprietary data submitted by non-Government
parties to this agreement shall be marked with a restrictive legend. The Government will follow its FOIA procedures, including submitter
notice, in the event that any person requests sensitive or proprietary data which belongs to a non-Government party.

&nbsp;&nbsp;&nbsp;&nbsp;C. Limitation of Liability: Claims for damages of any nature whatsoever pursued under this agreement shall
be limited to direct damages only up to the aggregate amount of Government funding disbursed as of the time the dispute arises. In no
event shall the Government or INSITECH be liable for claims for consequential, punitive, special and incidental damages, claims for lost
profits, or other indirect damages.

&nbsp;&nbsp;&nbsp;&nbsp;D. FAR Clause 52.204-25, Prohibition on Contracting for Certain Telecommunications and Video Surveillance
Services or Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;E. Export Control Technology:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Foreign Firm or Institution means a firm or institution organize or existing under the laws of a country
other than the United States, its territories, or possessions. The term includes, for purpose of this Agreement, any agency or instrumentality
of a foreign government; and firms, institutions or business organizations, which are owned or substantially controlled by foreign governments,
firms, institutions, or individuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Subrecipient will notify the Government and INSITECH of its intention to export any technology developed
under this agreement to a Foreign Firm or Institution. No technology will be transferred, and no technical data, assistance or service
will be furnished, to any Foreign Firm or Institution in violation of the International Traffic in Arms Regulations (ITAR).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. If the export or re-export of the technology or information is restricted by Export Control laws without
an available exemption under the law, the Subrecipient will receive Government and INSITECH approval before assigning or granting access
to the technology or information to foreign persons or their representatives. The notification will include the name and country of origin
of the foreign person or representative, and the specific work, equipment, or data to which the person will have access.

&nbsp;&nbsp;&nbsp;&nbsp;F. Title to Property and Equipment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Real Property – Subject to the obligations and conditions set forth in 2 CFR 200.311, title to real
property acquired or improved under a Federal award will vest upon acquisition to the Subrecipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Equipment – All equipment being purchased under this Agreement will be listed as exempt property
with conditional title throughout the performance of the Agreement. Exempt property is defined as tangible personal property acquired
in whole or in part with Federal funds, where the DoD Component has statutory authority to vest title in the Subrecipient without further
obligation to the Federal Government. If the DoD does not elect to retain title, 2 CFR 200.313 "Equipment" will apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Supplies will be managed in accordance with 2 CFR 200.314.

&nbsp;&nbsp;&nbsp;&nbsp;G. Property System: The Subrecipient's property system will meet the standards as set forth in 2 CFR
200.310-316.

&nbsp;&nbsp;&nbsp;&nbsp;H. Equipment Use and Recoupment of Investment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Subrecipient shall not use equipment acquired with Federal funds to provide services to non-Federal
entities that are not performing under this Agreement unless specifically authorized by the Government and INSITECH.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Subrecipient shall only use the equipment in the project or program for which it was acquired, whether
or not the project or program continues to be supported by Federal funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Government and INSITECH maintains rights to the scheduling and determination of usage of any equipment
purchased under this Agreement. In the event of Government and INSITECH approval for use of equipment in support of non-Federal entities
is approved, the Government and INSITECH maintains rights to scheduling and the determination of usage of any equipment purchased under
this Agreement and shall maintain priority at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. In the event the Subrecipient fails to fully adhere to the terms and conditions of this clause, the Subrecipient
will agree to reimburse the Government and INSITECH in-whole of its investment under this Agreement.

16. <u>MODIFICATIONS</u>

&nbsp;&nbsp;&nbsp;&nbsp;A. All modifications, except for minor or administrative corrections, shall be made by mutual agreement of
the parties and be subject to negotiations. Minor or administrative agreement corrections may be made unilaterally.

&nbsp;&nbsp;&nbsp;&nbsp;B. Any modification to this agreement shall be executed, in writing, and signed by an authorized representative
of the Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;C. In the event of a material breach of any term of this agreement, the aggrieved party shall provide notice
to the other party in accordance with the Disputes section of this agreement. Willful failure to perform a material term of this agreement,
unless excused by circumstances beyond that party's control, will be considered a breach of this agreement. The aggrieved party
shall have all contractual remedies available under Federal law, including specific performance and other equitable relief.

If one party desires the termination of this agreement for its convenience, the parties agree to negotiate in good faith for a mutual resolution of any settlement issues, including payment of costs incurred and a reasonable allowance for profit on work performed, data rights, and deliveries of prototype items and data. Upon receiving notice that one party desires a convenience termination of this agreement, all parties will take reasonable efforts to minimize additional costs while the settlement is negotiated. In the event that a settlement cannot be reached, the Disputes section of this agreement will be utilized to reach a final determination.

17. <u>DISPUTES</u>

&nbsp;&nbsp;&nbsp;&nbsp;A. Whenever disputes, disagreements, or misunderstandings arise, the Parties shall attempt to resolve the
issue(s) involved by discussion and mutual agreement as soon as practicable. The Parties are committed to an open and forthright handling
of disputes, with a good faith attempt to resolve such issues at the lowest level possible.

&nbsp;&nbsp;&nbsp;&nbsp;B. In the event of a dispute, the aggrieved party shall document the factual issues in a concise written
format and provide a copy to the other party for review. Within ten (10) calendar days, the other party shall respond in writing to the
issues raised, and both parties will attempt to resolve the issues.

**GENERAL PROVISIONS**

<u>GP1 SUBRECIPIENT RESPONSIBILITY</u>

The Subrecipient has full responsibility for the conduct of the effort supported by this Subaward, in accordance with the Subrecipient's Proposal and the terms and conditions specified in this Subaward. The Subrecipient is encouraged to suggest, or propose to discontinue, or modify unpromising efforts. The Subrecipient shall submit, within 30 calendar days after the date of expiration of the Subaward, all financial, performance and other reports as required by the terms and conditions of this Subaward. Requests for extensions should be submitted at least 30 days before the current expiration date.

<u>GP2 REVISION OF BUDGET AND/OR PROGRAM PLANS</u>

The budget plan is the financial expression of the project or program as approved during the award process. The Subrecipient is required to report deviations from the budget and program plans, and request prior approval for budget and program plan revisions. When requesting approval for budget revisions, the Subrecipient shall use the budget forms submitted with its proposal and show the original budget and the requested changes by cost element (e.g., labor, travel, materials, indirect costs, etc.). The Subrecipient shall also show any requested changes to the original payable milestone table, as appropriate.

A Party shall immediately request, in writing, prior approval of the other Party when there is reason to believe that a programmatic or budgetary revision will be necessary due to change in the scope or objective of the project or program (even if there is no associated budget revision requiring prior written approval), the need for additional funds, the transfer of funds among direct cost categories, functions and activities when the cumulative amount of such transfers is expected to exceed 10% of the total budget, or the need for an extension of the expiration date of the Subaward.

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No changes in direction or delivery of this Subaward by either Party shall proceed prior to receipt of written consent from both Parties.

<u>GP3 RETENTION OF RECORDS</u>

INSITECH shall have access to the Subrecipient's records pertaining to this Subaward, for the purpose of audit during normal business hours, upon reasonable notice for so long as such records are required to be retained. Audit rights shall be available to INSITECH on all performance related reports and other records, except records pertaining to proprietary indirect cost data. Audit of any proprietary indirect cost data may be accomplished through its cognizant Government audit representative, or a mutually agreeable third party auditor from a nationally recognized firm of certified public accountants. The Subrecipient's relevant financial records are subject to examination or audit for a period not to exceed 5 years after expiration of the term of this Agreement.

<u>GP4 PROCUREMENT STANDARDS</u>

The uniform standards for the Subrecipient's procurement of supplies and other expendable property, equipment, real property and other services with Federal funds are set forth in 32 CFR 32.40 through 32.48.

<u>GP5 PROPERTY STANDARDS</u>

The uniform standards for governing management and disposition of property furnished by the Federal Government or property whose cost is charged to a project supported by this Subaward are set forth at 32 CFR Sections 32.30 through 32.37.

<u>GP6 FINANCIAL MANAGEMENT SYSTEMS</u>

Prior to the submission of invoices, the Subrecipient shall have and maintain an established accounting system which complies with Generally Accepted Accounting Principles (GAAP) and the requirements of this Agreement. The Subrecipient shall ensure that appropriate arrangements have been made for receiving, distributing and accounting for the funds under this Agreement.

<u>GP7 PROGRAM INCOME</u>

Program income, if any, shall be used as set forth at 32. CFR 32.24 (b)(1).

<u>GP8 RIGHTS TO INVENTIONS</u>

The uniform standards for the Government's rights to invention are set forth in 37 CFR 401, Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements, and E.O. 12591.

<u>GP9 INTANGIBLE PROPERTY</u>

The uniform standards regarding Intangible Property for the Subrecipient are set forth in 32 CFR 32.36.

<u>GP10 INSURANCE</u>

The Subrecipient shall secure, pay the premiums for, and keep in force until the expiration of this Agreement (including any renewal thereof), adequate insurance to specifically include liability assumed by the Subrecipient under this Agreement.

The following types of insurance are required and shall be maintained by the Subrecipient for the full duration of this Agreement and any extensions thereof: Workers Compensation and Employers Liability; Commercial General Liability; Automobile; and an Umbrella policy. INSITECH reserves the right to require a full and complete copy of any insurance policy for review prior to commencement of work under this Agreement.

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<u>GP11 TERMINATION FOR CONVENIENCE</u>

INSITECH may terminate the Agreement in whole or in part if it is determined that a termination is in INSITECH's and/or the Government's best interests or if the Government exercises its termination for convenience rights under the contract. INSITECH may terminate this Agreement by issuing a written notice of termination to the Subrecipient. The written notice will include the termination effective date, justification and actions to be taken by the Subrecipient.

In the event that INSITECH terminates this Agreement pursuant to Government direction, Subrecipient's recovery of termination costs shall be limited to the extent that INSITECH is able to recover such costs from the Government.

<u>GP12 TERMINATION FOR DEFAULT</u>

(1) Either Party may terminate this Agreement, by written notice of default to the other Party, in whole or in part at any time if the other Party (the "Defaulting Party"): (a) breaches this Agreement and such breach is incapable of cure or with respect to a breach capable of cure, the Defaulting Party does not cure such breach within 30 days after receipt of written notice of breach; (b) becomes insolvent or admits its inability to pay its debts generally as they become due; (c) becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy of insolvency law; (d) is dissolved or liquidated or takes any corporate action for such purpose; (e) makes a general assignment for the benefit of creditors; or (f) has a receiver, trust, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business.

(2) If the failure to perform is caused by the default of a Lower-tier Subcontractor, and if the cause of the default is beyond the control of both the Subrecipient and Lower-tier Subcontractor, and without the fault or negligence of either, the Subrecipient shall not be liable for any excess costs for failure to perform.

(3) INSITECH shall pay the Agreement price(s) for completed supplies delivered and accepted. The Subrecipient and INSITECH shall agree on the amount of payment for manufacturing materials delivered and accepted and for the protection and preservation of property.

<u>GP13 CONFIDENTIALITY</u>

It is recognized that in the course of performance of their obligations under this Subaward, either party (INSITECH or Subrecipient) may disclose to the other certain confidential and/or proprietary information of their own or received from a third party. In the event of such a disclosure, the Party receiving the disclosure agrees to maintain the information in confidence pursuant to a certain Mutual Confidentiality and Nondisclosure Agreement entered into between the Parties, dated November 30, 2015.

<u>GP14 ACKNOWLEDGEMENT OF SPONSORSHIP</u>

The Subrecipient agrees that in any release of information (on or before the date of this Agreement) relating to this Subaward, such release shall include a statement to the effect that: (a) the effort is/was sponsored by the Office of the Secretary of Defense, Director, Office of Administration and Management; (b) the content of the information does not necessarily reflect the position or policy of the Government; and (c) that no official endorsement should be inferred. "Information" includes news releases, articles, manuscripts, brochures, advertisements, still and motion pictures, speeches, trade association proceedings, symposia, etc.

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<u>GP15 LIABILITY AND INDEMNIFICATION</u>

(1) Each Party hereto is responsible for its own activities and those of its agents and employees in carrying out its responsibilities under this Subaward. Subject to the terms and conditions of Section GP 15(2) and (3) below, each Party (as "Indemnifying Party") shall indemnify, hold harmless and defend the other Party (the "Indemnified Party") against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs or expenses of whatever kind, including reasonable attorneys' fees, that are incurred by Indemnified Party (collectively, "Losses"), arising out of (a) bodily injury or death caused by the grossly negligent or more culpable acts or omissions of Indemnifying Party, or its employees, agents or contractors; or (b) any failure by Indemnifying Party, or its employees, agents or contractors, to materially comply with any applicable federal, state or local laws, regulations or codes in the performance of its obligations under this Agreement.

(2) EXCEPT FOR LIABILITY FOR BREACH OF CONFIDENTIALITY OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY THIRD PARTY FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES OR DIMINUTION IN VALUE, ARISING OUT OF, OR RELATING TO, OR IN CONNECTION WITH ANY BREACH OF THIS AGREEMENT, REGARDLESS OF (A) WHETHER SUCH DAMAGES WERE FORESEEABLE, (B) WHETHER OR NOT IT WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND (C) THE LEGAL AND EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH THE CLAIM IS BASED.

(3) EXCEPT FOR LIABILITY FOR BREACH OF CONFIDENTIALITY OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS, IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE EXCEED THE AMOUNTS ACTUALLY PAID TO SUBRECIPIENT PURSUANT TO THIS AGREEMENT.

(4) THE LIMITATIONS AND EXCLUSIONS SET FORTH IN THIS SECTION GP16 SHALL NOT APPLY TO DAMAGES OR LIABILITIES ARISING FROM (A) THE NEGLIGENT ACTS OR OMISSIONS OR WILLFUL MISCONDUCT OF EITHER PARTY IN PERFORMING ITS OBLIGATIONS UNDER THIS AGREEMENT; OR (B) THE TERMINATION OF THIS AGREEMENT BY SUBRECIPIENT OTHER THAN AS PERMITTED BY SECTION GP12.

<u>GP16 RISK OF LOSS</u>

Subrecipient assumes the following risks: (1) all risks of loss or damage to all goods, services, work in process, materials, and Government Property until acceptance regardless of INSITECH's physical possession of the deliverables; (2) all risks of loss or damage to the property of third parties which relate to Subrecipient's performance under this Agreement until the acceptance of all the goods and/or services has occurred; (3) all risks of loss or damage to any property received by Subrecipient or held by Subrecipient, or its supplier for the account of INSITECH, until such property has been accepted by INSITECH or its customer, as the case may be; and (4) all risks of loss or damage to any of the goods or parts rejected by INSITECH, from the time of shipment to Subrecipient until redelivery to INSITECH.

<u>GP17 OFFICIALS NOT TO BENEFIT</u>

No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this Subaward, or to any benefit arising from it, in accordance with 41 USC §22.

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<u>GP18 CHANGES OF CIRCUMSTANCES</u>

Each Party will promptly notify the other Party of any legal impediment, change of circumstances, pending litigation, or any other event or condition that may adversely affect such Party's ability to carry out any of its obligations under this Subaward.

<u>GP19 WARRANTY</u>

The Subrecipient warrants that it is and shall remain free of any obligation or restriction which would interfere or be inconsistent with or present an Organizational Conflict of Interest as defined in Section GP28 or a Personal Conflict of Interest as defined in Section GP29; provided, however, InSitech will not ask the Subrecipient to do any work that would create any such conflict. Subrecipient warrants that it will perform the services under this Subaward with the degree of high professional skill and sound practices and judgment which is normally exercised by recognized professional firms with respect to services of a similar nature.

Subrecipient represents and warrants: (1) that all goods and services delivered pursuant hereto by Subrecipient will be new, unless otherwise specified, and free from defects in material and workmanship; and (2) that all goods and services delivered pursuant hereto by Subrecipient will conform to specifications, drawings, and standards of quality and performance mutually agreed to by the Parties, and that all items delivered pursuant hereto by Subrecipient will be free from defects in design and suitable for their intended purpose. All representations and warranties of Subrecipient together with its service warranties and guarantees, if any, shall run to INSITECH and INSITECH's customers. The foregoing warranties shall survive any delivery, inspection, acceptance, or payment by INSITECH.

Any additional and specific warranty requirements shall be covered by the Statement of Work as mutually agreed to by the Parties.

<u>GP20 SUSPECT/COUNTERFEIT PARTS</u>

Subrecipient represents and warrants that it has policies and procedures in place (or similar measures in the absence of such policies and procedures) to ensure that none of the supplies or materials furnished under this Agreement are "suspect/counterfeit parts" and certifies, to the best of its knowledge and belief, that no such parts have been or are being furnished to INSITECH by Subrecipient. "Suspect/counterfeit parts" are parts that may be of new manufacture, but are misleadingly labeled to provide the impression they are of a different class or quality or from a different source than is actually the case. They also include refurbished parts, complete with false labeling, that are represented as new parts or any parts that are designated as suspect by the U.S. Government, such as parts listed in alerts published by the Defense Contract Management Agency under the Government-Industry Data Exchange Program (GIDEP). If INSITECH reasonably determines that Subrecipient has supplied suspect/counterfeit parts to INSITECH, INSITECH shall promptly notify Subrecipient and Subrecipient shall immediately replace the suspect/counterfeit parts with parts acceptable to INSITECH. Notwithstanding any other provision contained herein, Subrecipient shall be liable for all costs incurred by INSITECH to remove and replace the suspect/counterfeit parts, including without limitation INSITECH's external and internal costs of removing such counterfeit parts, of reinserting replacement parts and of any testing necessitated by the reinstallation of Subrecipient's goods after counterfeit parts have been exchanged. Subrecipient's warranty against suspect/counterfeit parts shall survive any termination or expiration of this Agreement.

<u>GP 21 WARRANTY OF AUTHENTICITY</u>

Subrecipient warrants that all products delivered under this order are new. No substitutions are to be supplied without the prior written consent of the INSITECH's Subcontract Representative. Subrecipient certifies that the products are genuine products authorized by the manufacturer and are entitled to the full manufacturer's warranty and service including any related software.

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<u>GP22 AMENDMENTS REQUIRED BY INSITECH</u>

No amendment to or modification of this Subaward is effective unless it is in writing and signed by both Parties. If any such amendment to this Subaward causes an increase or decrease in the estimated cost of, or the time required for, performance of any part of the Work under this Subaward, an equitable adjustment will be made.

<u>GP23 ASSIGNMENT AND SUBAWARDS</u>

This Subaward may not be assigned, transferred, or conveyed, in whole or in part, without prior written consent of INSITECH, which consent shall not be unreasonably withheld. The Subrecipient agrees to obtain INSITECH's written consent before issuing lower tier sub-subawards under this Subaward, which consent shall not be unreasonably withheld. This limitation shall not apply to the purchase of standard commercial supplies or raw material.

<u>GP24 WAIVER</u>

Failure to exercise any right under this Subaward in one or more instances shall not be deemed a waiver of such rights in any other instance.

<u>GP25 SEVERABILITY</u> 

In the event that any part, term or provision of this Subaward shall be held to be illegal, void or in conflict with any law of a federal, state, or local government entity having jurisdiction over this Subaward, the validity of the remaining portions or provisions hereof shall not be affected or rendered invalid thereby; provided, however, the Parties agree to negotiate amendments to this Subaward in good faith so that to the maximum extent possible the Parties shall each receive the intended benefits and burdens of this Subaward.

<u>GP26 GOVERNING LAW</u>

This Subaward and all matters arising from or related to it shall be construed, interpreted and enforced in accordance with the laws of the State of New Jersey, without regard to its conflicts of laws provisions, except that any provision in this Subaward that is (i) incorporated in full text or by reference from the Code of Federal Regulation (CFR); or (ii) incorporated in full text or by reference from any agency regulation that implements or supplements the CFR; or (iii) that is substantially based on any such agency regulation or CFR provision, shall be construed and interpreted according to the United States federal common law of government contracts as enumerated and applied by federal judicial bodies, boards of contract appeals, and quasi-judicial agencies of the Federal Government of the United States.

<u>GP27 ORGANIZATIONAL CONFLICT OF INTEREST</u> 

For purposes of this Subaward, the term "Organizational Conflict of Interest" means any situation which places the Subrecipient (including its chief executives, directors, subsidiaries and affiliates, consultants, or Subrecipients at any tier) in a position which may impair its ability to render unbiased advice and recommendations or in which its interests and the interests of the United States Government are not the same or in which it may have an unfair competitive advantage as a result of the knowledge, information, and experience gained during the performance of this Subaward.

The Subrecipient represents and warrants that, to the best of its knowledge and belief, no actual or potential conflict of interest exists with respect to the Services to be provided under this Subaward. Furthermore, the Subrecipient agrees that it shall not accept work during the performance of this Subaward which would create an organizational conflict of interest as defined above.

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The Subrecipient agrees that if after the Subaward is awarded it discovers any potential, actual or apparent potential organizational conflict of interest, a prompt and full disclosure shall be made in writing to INSITECH. This disclosure shall include a description of the actions the Subrecipient has taken or proposes to take to avoid or mitigate such conflicts. The Subrecipient shall refer to Federal Acquisition Regulations (FAR) Subpart 9.5 for policies and procedures for avoiding, neutralizing, or mitigating organizational conflicts of interest. Failure to provide written disclosure and adequately avoid or mitigate any organizational conflicts of interest shall entitle INSITECH to immediately terminate this Subaward for default.

The Subrecipient shall incorporate this organizational conflict of interest provision into any lower tiered Subawards awarded by the Subrecipient for performance under this Subaward.

<u>GP28 PERSONAL CONFLICT OF INTEREST</u>

Subrecipient agrees and certifies that it shall not provide either its own personnel or subcontract personnel ("personnel"), for performance under this Agreement that have a personal conflict of interest. "Personal Conflict of Interest" is defined as a situation in which personnel has a financial interest, personal activity, or relationship that could impair the personnel's ability to act impartially and in the best interest of INSITECH or the Government when performing under this Agreement.

Personal conflicts of interest may arise, but not necessarily be limited to, performance under this Agreement involving acquisition functions closely associated with inherently governmental functions. The Subrecipient is responsible for ensuring that: (1) personnel are not placed for work under this Agreement that have a personal conflict of interest, (2) personnel who are working under this Agreement in which a personal conflict of interest is discovered report such instance to INSITECH, and (3) comply with the requirements of FAR 52.203-16.

Failure to comply with this requirement may result, at INSITECH's sole discretion, in the Subrecipient being terminated in accordance with the Termination Articles of this Agreement.

<u>GP29 EXPORT CONTROLS</u>

Information furnished under this Subaward may be controlled for export purposes under the International Traffic in Arms Regulations ("ITAR") controlled by the U.S. Department of State or the Export Administration Regulations ("EAR") controlled by the U.S. Department of Commerce. ITAR and EAR controlled technology may not be exported without prior written authorization and certain technology requires a temporary import or export license depending upon its categorization, destination, end-user and end-use. The Subrecipient agrees to comply with all applicable U.S. export control laws and regulations. Without limiting the foregoing, the Subrecipient agrees that it will not transfer any export controlled item, data or services, to include transfer to foreign persons employed by or associated with, or under contract to the Subrecipient, without the authority of an Export License or applicable license exception. The Subrecipient shall indemnify and hold INSITECH harmless from and against any and all claims, liabilities and expenses resulting from the Subrecipient's failure to comply with the export laws and regulations of the United States.

Information Subject to Export Control Laws/International Traffic in Arms Regulation (ITAR): Public Law 90-629, "Arms Export Control Act," as amended (22 U.S.C 2751 et. Seq.) requires that all unclassified technical data with military application may not be exported lawfully without an approval, authorization, or license under EO 12470 or the Arms Export Control Act and that such data required an approval, authorization, or license for export under EO 12470 or Arms Export Control Act. For purposes of making this determination, the Militarily Critical Technologies List (MCTL) shall be used as general guidance. All documents determined to contain export controlled technical data will be marked with the following notice: **WARNING: - This document contains technical data whose export is restricted by the Arms Export Control Act (Title 22, U.S.C., App. 2401 et seq. Violations of these export laws are subject to severe criminal penalties. Disseminate in accordance with provisions of DoD Directive 5230.25.**

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<u>GP30 FORCE MAJEURE</u>

Neither party shall be liable for damages for delay in delivery arising out of causes beyond its reasonable control and without its fault or negligence, including, but not limited to, acts of God or of the public enemy, acts of any Government authority, fires, floods, epidemics, quarantine restrictions, strikes, embargoes, or unusually severe weather. If the delay is caused by the delay of a lower tiered supplier of the Subrecipient and if such delay arises out of causes beyond the reasonable control of both the Subrecipient and lower tiered supplier, and without the fault or negligence of either of them, the Subrecipient shall not be liable to INSITECH for damages. The Subrecipient will notify INSITECH in writing within ten (10) days after the beginning of any such force majeure event.

<u>GP31 COMMUNICATION WITH INSITECH'S CUSTOMER</u>

Unless as otherwise specified in this Agreement, INSITECH shall be solely responsible for all communication and coordination with INSITECH's customer, as it affects the applicable Government contract.

Unless as otherwise specified in this Agreement or by INSITECH in writing, all contact with the INSITECH's Customer with respect to the work to be performed under the Government contract, including Subrecipient's work under this Subaward, shall be the responsibility of INSITECH. Any contact with the INSITECH's Customer relating to this Subaward initiated by Subrecipient shall be only with the prior concurrence and the participation of INSITECH. The Subrecipient shall promptly report to INSITECH any Subrecipient contact with INSITECH's Customer that is initiated by INSITECH's Customer. The Subrecipient's failure to perform its obligations as set forth in the two preceding sentences shall be a material breach of this Subaward.

<u>GP32 USE OF INSITECH'S OR SUBRECIPIENT'S NAME</u>

In connection with this Subaward or any relationships arising out of, by or through this Subaward or any report, study, or document produced in connection therewith, neither Party shall, without the prior written consent of the other Party, use the name of the other Party, its members, affiliates, agents or assignees, or any member of its staff of any of the foregoing or any logo, symbol or insignia of the other Party or any of the foregoing, in any form of document, publicity, advertising, or disseminated material. Such approval shall not be unreasonably delayed by either Party, but in any event, shall be given in less than 30 days.

<u>GP33 PUBLICITY/CONFIDENTIAL RELATIONSHIP</u>

Subrecipient shall not disclose information concerning work under this Agreement to any third party, unless required by legal, accounting or regulatory requirements beyond the reasonable control of Subrecipient. From the effective date of this Agreement and thereafter, no news release, public announcement, or advertising material, regardless of media, pertaining to this Agreement, the Statement of Work, or the relationship between the Parties hereto in any manner whatsoever shall be issued by Subrecipient without the prior review and written consent of the INSITECH's Subcontracts Representative. Such approval shall not be unreasonably delayed by INSITECH, but in any event, shall be given in less than 30 days.

Subrecipient shall use information supplied by INSITECH only to accomplish work covered by this Agreement and subsequent work efforts. Such information shall not be used for any other purposes. Upon completion or termination of this Agreement, all information is to be returned to the INSITECH or destroyed upon written request of the INSITECH.

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INSITECH authorizes Subrecipient to release routine Past Performance Information (PPI) regarding Subrecipient's work performed on this Agreement for purposes of responding to proposals for new work. PPI will not require approval from INSITECH for its release.

Release of any information on this contract to any person or organization who is not a party to this contract is prohibited without the prior written permission of the INSITECH's Subcontracts Representative.

Prior to access to proprietary information, all employees of contractors or subcontractors performing work under this contract will be required to sign non-disclosure agreements.

<u>GP34 SURVIVABILITY</u>

Upon expiration or termination of this Agreement, all articles herein, that by their applicability, would extend beyond said termination or expiration date and will remain in full force and effect.

<u>GP35 ENTIRE AGREEMENT</u> 

This Subaward is the entire Agreement between the Parties with respect to the subject matter hereof and supersede all prior and contemporaneous negotiations or agreements whether written or oral.

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**EXHIBIT A**

**STATEMENT OF WORK**

**[Description and specifications of the Statement of Work pursuant to this Agreement]**

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**EXHIBIT B**

**[SUBRECIPIENT'S PROPOSAL]**

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**EXHIBIT C** 

**[Proposed Milestone Payment Schedule under this Agreement]**

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**EXHIBIT D**

**REPRESENTATIONS AND CERTIFICATIONS**

Each Party to this Agreement represents and warrants to the other Parties that (1) it is free to enter into this Agreement; (2) in so doing, it will not violate any other agreement to which it is a party; and (3) it has taken all action necessary to authorize the execution and delivery of this Agreement and the performance of its obligations under this Agreement.

Limitations

Except as expressly provided herein, no party to this Agreement makes any warranty, express or implied, either in fact or by operation of law, by statute or otherwise, relating to (1) any research conducted under this agreement, or (2) any invention conceived and/or reduced to practice under this agreement, or (3) any other intellectual property developed under this Agreement, and each party to this Agreement specifically disclaims any implied warranty of merchantability or warranty of fitness for a particular purpose.

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**EXHIBIT E**

**SECURITY, SAFETY, ENVIRONMENTAL, FOREIGN PARTICIPATION**

**& NON-GOVERNMENT PERSONNEL**

**SECURITY:**

The Security level is unclassified.

**SAFETY:**

The Subrecipient shall comply with all Federal, State, and Local safety laws and regulations in order to maintain a safe and non-hazardous occupational environment during execution of this agreement.

The Subrecipient shall maintain full compliance with Occupational Safety and Health Administration regulations and utilize industries best practices to include applicable American industry standards and codes during execution of this effort.

Accident/Incident Report: The Subrecipient shall report immediately any major accident/incident (including fire) resulting in any one or more of the following: causing one or more fatalities or one or more disabling injuries; damage of Government property exceeding $10,000; affecting program planning or production schedules; degrading the safety of equipment under contract, such as personnel injury or property damage may be involved; identifying a potential hazard requiring corrective action. The Subrecipient shall prepare the report in accordance with Data Item Description (DID) DI-SAFT-81563 for each incident (all DIDs referenced in this SOW can be found at https://quicksearch.dla.mil/qssearch.aspx).

**ENVIRONMENTAL:**

The Subrecipient shall adhere with Federal, State, and local environmental laws and regulations, Executive Orders, treaties, and agreements.

The Subrecipient shall consider alternate materials and processes in order to eliminate, reduce or minimize the generation of hazardous waste while minimizing item cost and risk/degradation to system performance.

**FOREIGN PARTICIPATON:**

&nbsp;&nbsp;&nbsp;&nbsp;A. FOREIGN INVOLVEMENT **:** For the entirety of this agreement, keeping with the Cornerstone Mission of
"Strengthen the force posture of the US Defense Industrial Base (DIB)," and in accordance with the 2018 Unclassified National
Defense Strategy (NDS) which articulates the threat from foreign predatory economics and inter-state strategic competitions that are the
primary threats to US security, the Government will restrict foreign participation, access and transfers. Any proposed foreign participation,
access or transfer will require government notification and concurrence on a case-by-case basis prior to initiating any work effort.

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&nbsp;&nbsp;&nbsp;&nbsp;B. NON-US RESEARCH PROGRAMS: For the entirety of this agreement, keeping with the Cornerstone Mission of
"Strengthen the force posture of the US Defense Industrial Base (DIB)," and the intent of protecting tax-payer investments and
intellectual property, the Government will restrict direct or indirect participation, collaboration, communication or acceptance of funding
with non-US research programs, such as the Thousand Talent Program (TTP), even in the case the activity is conducted with and/or through
a US citizen, entity or company. Any proposed non-US research program involvement will require government notification and concurrence
on a case-by-case basis prior to initiating any work effort.

&nbsp;&nbsp;&nbsp;&nbsp;C. FOREIGN ACQUISITIONS AND MERGERS: For the entirety of this agreement, the Cornerstone Member shall notify
the Government within three (3) business days of entering any discussions regarding potential foreign acquisition or merger, for itself
or any business unit of the Cornerstone Member. Said notification will include all relevant details of the potential merger or acquisition.
Per the "Foreign Involvement" clause, above, the Government retains the right to consent to any foreign acquisition or merger,
considering whether or not the merger/acquisition is consistent with the best interests of the Government.

**NON-GOVERNMENT PERSONNEL:**

This Agreement will utilize non-Government personnel to function as technical advisors to the Government. These Non-Government personnel will have access to the information submitted under this Agreement and will provide technical expertise and/or advice as required. All non-Government personnel have Non-Disclosure Agreements on file with the Government and are required to protect information to the same standards as Government personnel.

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## Exhibit 10.5

**Exhibit 10.5**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

## InSitech
**SUBCONTRACT AGREEMENT<br> [\*\*]**

**MODIFICATION #1**

---

| | |
|:---|:---|
| **Subrecipient:** | **Elmet Technologies** |
| **Address:** | 1560 Lisbon Street, Lewiston, ME 04240 |

---

IN CONSIDERATION of the promises, mutual covenants, and agreements contained herein, InSitech, Inc. ("INSITECH") and Elmet Technologies ("Subrecipient" and collectively with InSitech, the "Parties") agree as follows:

The purpose of this Modification is to amend the funded amount of the Subcontract Agreement dated December 23, 2022 to **$14,706,325**, increased **$7,981,778** from **$6,724,547**. The Subrecipient agrees to complete the Year 2 Statement of Work under the terms of the Subrecipient's proposal incorporated as Exhibit A. The services for this modification to be performed by the Subrecipient shall commence on November 9, 2023, and shall be completed November 8, 2025. The milestone delivery and corresponding invoicing schedule for the increased funding is incorporated as Exhibit B. Unless modified in writing by mutual agreement of the parties, InSitech, Inc. is not obligated to compensate Elmet Technologies beyond the **$7,981,778** for this modification.

IN WITNESS WHEREOF, the Parties hereto have, through duly authorized officials, executed this Agreement effective as of the date indicated below.

---

| | |
|:---|:---|
| **INSITECH, Inc.** | **ELMET TECHNOLOGIES** |
| /s/ Joseph N. Moran | /s/ Peter Anania |
| SIGNATURE | SIGNATURE |
| Joseph N. Moran | Peter Anania |
| NAME | NAME |
| President | Chief Executive Officer |
| TITLE | TITLE |
| November 9, 2023 | November 9, 2023 |
| DATE | DATE |

---

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**InSitech**

**EXHIBIT A**

**[STATEMENT OF WORK & SUBRECIPIENT'S PROPOSAL]**

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**InSitech**

**EXHIBIT B**

**[Schedule detailing the Milestone Payments pursuant to this Modification #1<br> to the Subcontract Agreement]**

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## Exhibit 10.6

**Exhibit 10.6**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

**SUBCONTRACT AGREEMENT**

**[\*\*]**

**MODIFICATION #2**

---

| | |
|:---|:---|
| **Subrecipient:** | **Elmet Technologies** |
| **Address:** | 1560 Lisbon Street, Lewiston, ME 04240 |

---

IN CONSIDERATION of the promises, mutual covenants, and agreements contained herein, InSitech, Inc. ("INSITECH") and Elmet Technologies ("Subrecipient" and collectively with InSitech, the "Parties") agree as follows:

The purpose of this Modification is to amend the funded amount of the Subcontract Agreement dated December 23, 2022 to **$22,683,353,** increased **$7,977,028** from **$14,706,325.** The Subrecipient agrees to complete the Year 3 Statement of Work under the terms of the Subrecipient's proposal incorporated as Exhibit A. The services for this modification to be performed by the Subrecipient shall commence on December 10, 2024, and shall be completed December 9, 2026. The milestone delivery and corresponding invoicing schedule for the increased funding is incorporated as Exhibit B. Unless modified in writing by mutual agreement of the parties, InSitech, Inc. is not obligated to compensate Elmet Technologies beyond the **$7,977,028** for this modification.

IN WITNESS WHEREOF, the Parties hereto have, through duly authorized officials, executed this Agreement effective as of the date indicated below.

---

| | |
|:---|:---|
| **INSITECH, INC.** | **ELMET TECHNOLOGIES** |
| /s/ Joseph N. Moran | /s/ Peter Anania |
| SIGNATURE | SIGNATURE |
| Joseph N. Moran | Peter Anania |
| NAME | NAME |
| President | Chief Executive Officer |
| TITLE | TITLE |
| December 10, 2024 | December 10, 2024 |
| DATE | DATE |

---

![](ea027036005_ex10-6img1.jpg)

**EXHIBIT A**

[**STATEMENT OF WORK &<br> SUBRECIPIENT'S PROPOSAL]**

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**EXHIBIT B**

**[Exhibit B describes the milestone payment schedule<br> pursuant to this Modification #2 to the Subcontractor Agreement]** 

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## Exhibit 10.7

**Exhibit 10.7**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

![](ea027036005_ex10-7img1.jpg)

**MOLYBDENUM SUPPLY AGREEMENT NO. CC-ELMET-2024**

THIS MOLYBDENUM SUPPLY AGREEMENT (this <u>"Agreement"</u>) is entered into as of January 1, 2024 (the <u>"Effective Date"</u>) by and between Climax Molybdenum Marketing Corporation, a Delaware corporation located at 333 North Central Avenue, Phoenix, Arizona 85004-4415 (<u>"Climax"</u>) and Elmet Coldwater LLC, a Delaware corporation located at 460 Jay Street, Coldwater, Michigan 49036 (<u>"Buyer"</u>). Climax and Buyer are sometimes referred to collectively herein as the "<u>parties</u>" and individually as a "<u>party</u>."

**1. <u>Term</u>.** The term of this Agreement will begin on the Effective Date and end on December 31, 2024 (the <u>"Term"</u>).

**2. <u>Products</u>.** During the Term, Climax will sell, and Buyer will buy, ammonium dimolybdate (<u>"ADM"</u>) and sublimed pure molybdic oxide (<u>"POS"</u>), each meeting the specifications set forth on <u>Exhibit A</u> (collectively, ADM and POS are referred to as the <u>"Moly Products"</u>). The Moly Products may be supplied by Climax from any of the Climax affiliated-facilities at the sole and absolute discretion of Climax. The Moly Products will be packaged as set forth on <u>Exhibit A</u>.

**3. <u>Quantity; Forecasts</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.1 *Quantity.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1. <u>Quantity of ADM.</u> During the Term, Buyer will purchase a minimum purchase of [\*\*] of ADM each month (the <u>"Minimum Monthly ADM Obligation"</u>). each containing [\*\*] pounds (a <u>"FTL")</u> of molybdenum contained (<u>"Contained Mo"</u>) in ADM; provided, however, Climax will have no obligation to supply more than [\*\*] of Contained Mo in ADM (the <u>"Maximum Annual ADM Obligation")</u> during the Term and no more than [\*\*] of the Maximum Annual ADM Obligation during any month during the Term (the <u>"Maximum Monthly ADM Obligation"</u>). If in any month during the Term Buyer does not purchase the Maximum Monthly ADM Obligation, then that amount not purchased by Buyer cannot be purchased in any subsequent month. For example, if only [\*\*] ([\*\*] of Contained Mo in ADM) are purchased by Buyer in January 2024, then Climax's Maximum Annual ADM Obligation is reduced automatically by [\*\*] ([\*\*] of Contained Mo in ADM) for the balance of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2. <u>Quantity of POS.</u> During the Term, Buyer will purchase a minimum of [\*\*] up to a maximum of [\*\*] of POS; provided, however, Climax will have no obligation to supply more than [\*\*] of Contained Mo in POS (<u>"Maximum Quarterly POS"</u>) in each calendar quarter of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3. <u>Additional Quantities: Sales to Third Parties.</u> During the Term, Buyer may request that Climax sell additional quantities of the Moly Products that are in excess of the Maximum Annual Obligations; provided that Climax is under no obligation to supply such additional quantities of Moly Products. Buyer will not purchase any of the Moly Products from Climax for resale to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 *Forecasts.* By the 15th day of each month during the Term, Buyer will deliver to Climax a written three (3) month rolling forecast of the quantity of Moly Products expected to be delivered in the succeeding months, with the quantity forecasted for the first two (2) months to be designated as firm orders.

**4. <u>Consignment of Moly Products</u>.** Climax shall deliver Moly Products into consignment (the <u>"Consignment Inventory"</u>) at the warehouse located at Elmet Coldwater LLC, 460 Jay Street, Coldwater, Michigan 49036 (the <u>"Elmet Warehouse")</u> in accordance with the forecast delivered to Climax pursuant to <u>Section 3,</u> which will maintain [\*\*] Contained Mo ([\*\*]) per month; provided, however, at the end of each calendar month, Buyer will be deemed to have withdrawn all of the Consignment Inventory in excess of two full truckloads of the Moly Products plus any additional volume consumed throughout the month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Withdrawals from Consignment Inventory.</u> The withdrawal of Moly Products from the Consignment Inventory shall occur in full [\*\*] multiples based on the principle of "first-in, first-out." On or before the last working day of each calendar month, Elmet will provide Climax with written notice of the actual quantity of Moly Products delivered to and withdrawn from the Consignment Inventory at the Elmet Warehouse during that month and any Moly Products withdrawn during prior calendar months that were not previously reported. Any Moly Products in the Consignment Inventory that are opened, missing, lost or damaged after delivery by Climax and any Moly Products remaining in the Consignment Inventory for more than three (3) months following delivery by Climax shall be deemed withdrawn by Buyer from the Consignment Inventory. Upon termination of this Agreement, all Consignment Inventory will be deemed to be withdrawn at the time of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Title Transfer to Consignment Inventory.</u> All Moly Products withdrawn or deemed withdrawn from the Consignment Inventory shall be purchased by Buyer as of the date of actual or deemed withdrawal. Title shall transfer from Climax to Buyer upon actual or deemed withdrawal of the Moly Products from the Consignment Inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Liens and Other Encumbrances.</u> Buyer shall keep the Consignment Inventory free and clear of all liens, charges and other encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Risk of Loss, Insurance and Storage.</u> Risk of loss with respect to any Moly Products shall transfer from Climax to Buyer upon delivery of the Moly Products into the Consignment Inventory. Buyer shall provide general liability and property insurance against loss, damage, fire and theft with respect to the Moly Products in the Consignment Inventory with a policy limit amount that exceeds the full replacement value of the Consignment Inventory at all times. Buyer shall maintain the Consignment Inventory in a safe and clean storage area that is separate from similar products of Buyer or third parties and that reasonably identifies the Moly Products as belonging to Climax. Upon reasonable notice and during regular business hours Elmet shall permit representatives of Climax to inspect the Consignment Inventory.

**5. <u>Purchase Price</u>.** The <u>"Purchase Price"</u> for the Moly Products delivered to Buyer during the Term, stated as U.S. dollars per pound of Contained Mo during any given calendar month, will be the sum of the Base Price (defined below) plus the Conversion Fee (defined below). Purchase Price to be invoiced on a net kg basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 *Base Price Defined.* <u>"Base Price"</u> means the average of all high and low quotations of the *"Molybdenum Oxide, Daily Dealer"* during the Quotation Period (hereafter defined) published in Platts Metals Daily. The <u>"Quotation Period"</u> means the 26th day that is two calendar months prior to the calendar month of consignment withdrawal through the 25th day of the calendar month that is one calendar month prior to the calendar month of consignment withdrawal. If Platts Metals Daily or the Molybdenum Oxide, Daily Dealer cease publication, then the parties will agree upon a suitable substitute index for the Base Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 *Conversion Fee Defined.* <u>"Conversion Fee"</u> means: (a) $[\*\*] per pound of Contained Mo for ADM; and (b) $[\*\*] per pound of Contained Mo for POS.

**6. <u>Invoices; Payment</u>.** Climax will invoice Buyer for withdrawals or deemed withdrawals of Moly Products from Consignment Inventory, immediately after any deemed withdrawal or upon notice of such withdrawal from Buyer. All invoices for Moly Products will be payable by electronic funds transfer within thirty (30) calendar days of the date of invoice.

**7. <u>Delivery; Transfer of Title and Risk of Loss</u>.** The Moly Products will be delivered in full truckload quantities CIP (INCOTERMS® 2020), Buyer's Plant. Title to the Moly Products will transfer from Climax to Buyer upon the withdrawal of the Moly Products from the consignment inventory.

**8. <u>Duties: Taxes: Export Control Compliance</u>.** Buyer will reimburse Climax for all customs duties for the importation of the Moly Products, if any, into the country of destination and/or foreign, federal, state or local taxes payable with respect to the purchase, use and importation of the Moly Products. The Purchase Price includes all export duties imposed by the country of origin or export. To the extent the Moly Products are listed on the U.S. Commerce Control List and are being exported from the United States of America (<u>"U.S."</u>), these items are controlled by the U.S. government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.

**9. <u>Warranty</u>.** Climax warrants to Buyer that the Moly Products will meet the specifications set forth on <u>Exhibit A</u>. EXCEPT FOR THE FOREGOING, CLIMAX EXPRESSLY DISCLAIMS ANY OTHER REPRESENTATION OR WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, IN FACT OR BY LAW, WRITTEN OR ORAL, WHETHER OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE OR USE OR OTHERWISE. Buyer's sole and exclusive remedy under this <u>Section 8</u> will be to request Climax to replace non-conforming Moly Products with conforming Moly Products at no additional cost to Buyer. Buyer will promptly notify Climax in writing of any claim of breach of warranty and in any event no later than ninety (90) days following shipment of the non-conforming Moly Products and Buyer will afford Climax a reasonable opportunity to investigate the claim.

**10. <u>Force Majeure</u>.** The prevention or delay in the performance of this Agreement, whether or not foreseeable: (a) caused by a circumstance beyond the reasonable control of an affected party, or (b) whether or not beyond the reasonable control of an affected party, acts of war, riot, rebellion, insurrection, terrorist attack, or other civil disturbance, fire, flood, hurricane, tornado, lightning strike, unusually severe weather, earthquake, volcanic activity, tsunami, sink hole, drought or explosion, strike, lockout, blockade, labor dispute, labor shortage, pandemic, epidemic or quarantine, accident, equipment breakdown, lack of rail or truck transportation from regular point of shipment, economic shutdown of mine or related plant facilities, shortage of raw material, shortage, interruption or unavailability of water or raw materials, laws, regulations or requirements, change in law, governmental action or restriction of any other federal, state, or local government or governmental body, (each such event being called a <u>"Force Majeure Event"</u>), will entitle the affected party to delay its performance under this Agreement (other than the payment for Moly Products delivered hereunder) to the extent and for so long as its performance is made commercially impracticable by such Force Majeure Event, by the affected party giving written notice thereof to the other party. Except for the payment for Moly Products delivered hereunder, the party invoking the provisions of this <u>Section 9</u> will not be liable for non-performance of any obligations hereunder during continuation of such event; provided, however, that the affected party exercises all commercially reasonable efforts to limit and obviate the Force Majeure Event, but the affected party will not be required to settle any strike. If any Force Majeure Event lasts for longer than 180 days, then the affected party will be entitled to cancel this Agreement without further liability or obligation to the other party (except for payment for Moly Products delivered hereunder).

**11. <u>Confidentiality</u>.** <u>"Confidential Information"</u> includes any proprietary information or data (including but not limited to either party's formulations, plans, programs, plants, processes, technical materials, products, production requirements, standard specifications, costs, equipment, operations, procedures, instructions, business operations or customers disclosed by either party to the other party) and the terms and conditions of this Agreement. Neither party will, without the prior written consent of the other party, use or disclose any Confidential Information of the other party to others during the term of this Agreement or thereafter for a period of five (5) years after the expiration or termination of this Agreement.

**12. <u>Entire Agreement</u>.** This Agreement will replace and supersede any other purchase and sale agreements for Moly Products between the parties dated prior to the date hereof and this Agreement will constitute the entire agreement of the parties with respect to the purchase and sale of Moly Products. No terms or provisions contained in any purchase orders, invoices, or other similar documents issued by or between the parties to this Agreement with respect to the Moly Products (whether or not such terms or provisions reference this Agreement or are in addition to, contrary to or not in conflict with the terms and provisions of this Agreement) will have any effect whatsoever on this Agreement. Only a writing signed by both Climax and Buyer may amend this Agreement.

**13. <u>Notice</u>.** All communications under this Agreement will be in writing, will be deemed to have been duly made: (i) upon receipt if personally delivered; (ii) upon the next business day if sent by internationally recognized overnight courier service for next day delivery; (iii) on the third business day after posting for domestic mail or on the fifth business day after posting for international mail if mailed by registered or certified mail, postage prepaid; or (iv) upon confirmed receipt if sent by electronic mail or facsimile provided that such notice is also sent by one of the other means specified in this <u>Section 12</u>; at the addresses set forth on the last page of this Agreement. Either party may, by written notice delivered in accordance herewith, change the address to which communications will be thereafter sent.

**14. <u>Limitation of Damages</u>.** Climax will not be liable to Buyer for any special, indirect, incidental, consequential, exemplary or punitive damages, including, without limitation, those based upon lost goodwill, lost profits, work stoppages, impairment of other goods or breach of another contract, whether or not Climax had reason to know of such potential damages incurred by Buyer as a result of any breach of any provision hereof by Climax or for the use by Buyer of the Moly Products, singularly or in combination with other products or otherwise.

**15. <u>Uniform Commercial Code</u>.** Unless otherwise provided for in or limited by this Agreement, each party reserves all rights and remedies of a seller and buyer of goods under the Uniform Commercial Code.

**16. <u>Choice of Law</u>.** This Agreement will be governed by and construed in accordance with the laws of the State of Arizona excluding choice of law provisions that would apply the law of any other jurisdiction. The application to this Agreement of: (i) the United Nations Convention on Contracts for the International Sale of Goods, (ii) the United Nations 1974 Convention on the Limitation Period in Contracts for the International Sale of Goods (the <u>"1974 Convention"</u>), and (iii) the Protocol Amending the 1974 Convention done at Vienna, Austria on April 11, 1980, are hereby expressly disclaimed. Notwithstanding the incorporation of a delivery term set forth in INCOTERMS® 2020, to the extent that any other express term of this Agreement varies from such definition in INCOTERMS® 2020, the express terms of this Agreement will govern.

**17. <u>Successors and Assigns; No Third Party Beneficiaries</u>.** This Agreement and the rights and obligations hereunder may not be assigned by Buyer without the prior written consent of Climax. This Agreement will be binding upon and will inure to the benefit of the parties hereto and their respective successors and permitted assigns. There are no third party beneficiaries to the terms and conditions of this Agreement.

**18. <u>Counterparts; Signatures</u>.** This Agreement may be executed in multiple counterparts, each of which will be an original and all of which will constitute one and the same agreement. Each party agrees that this Agreement and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Agreement or such other documents are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility.

**19. <u>Resolution of Disputes</u>.** Any dispute, controversy, or claim (each, a <u>"Dispute"</u>) arising out of this Agreement or any breach hereof (including any Dispute regarding the obligations contained under this <u>Section 19</u>) will be submitted to arbitration by written demand of either party no later than one year after the Dispute arises, if, after a period of thirty (30) days following the first written notice of such dispute, the parties have been unable to resolve such Dispute. The arbitration will take place in the State of Arizona in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitration will be conducted by one arbitrator, unless either party hereto will request, either in the written demand for arbitration or by written response within ten (10) days to such demand for arbitration, that the arbitration be conducted by three arbitrators. If the arbitration is to be conducted by one arbitrator, the parties will mutually agree upon the selection of the arbitrator. If the parties are unable to mutually agree on the identity of the arbitrator, three arbitrators will conduct the arbitration. If the arbitration is to be conducted by three arbitrators, each party will select one arbitrator and the two arbitrators selected by the parties will mutually agree on the selection of the third arbitrator. The arbitrator(s) may award legal fees and expenses to the party that it decides in favor of in the arbitration. If either party hereto will fail or refuse to arbitrate hereunder, the arbitrator(s) may award the other party reimbursement of any legal fees and expenses incurred in such action or proceeding or in any action or proceeding to compel arbitration. Any award rendered as a result of arbitration will be final and binding upon both parties hereto, and judgment upon the award rendered may be entered in any court of competent jurisdiction. Notwithstanding the provisions of this <u>Section 19</u>, Climax may, in its sole discretion, commence suit in a court of law for non-payment of the Purchase Price.

**20. <u>Weighing</u>.** Climax will weigh the Maly Products prior to shipment using procedures generally recommended by IMOA®. Such weights performed by Climax will be considered final and binding for all purposes; provided however, Buyer may make a claim if there is a difference of more than 0.50% in the weight in the Maly Products delivered. In case of a claim, the parties will agree on a procedure to resolve the claim.

**21. <u>Compliance with Laws, Safety and FCX PBC</u>.** Climax agrees that the Maly Products shall comply with applicable federal, provincial, state and local laws and regulations in force at the time of supply and/or performance and where the Maly Products are produced and delivered pursuant to this Agreement, including with occupational safety, health and environment laws and regulations. Such compliance shall also include registration under the European Union Regulation 1907/2006/EC concerning the Registration, Evaluation, Authorization and Restriction of Chemicals (<u>"REACH"</u>), where applicable. Climax agrees that it will perform the work under this Agreement in conformity with *The Freeport-McMoRan Principles of Business Conduct (FCX PBC),* available at: https://fcx.com/sites/fcx/files/documents/policies/pbc english.pdf. Buyer acknowledges and agrees that Buyer will use the Maly Products only for the uses identified in the Safety Data Sheets provided to Buyer.

The parties have executed this Agreement as of the Effective Date:

---

| | | | |
|:---|:---|:---|:---|
| **CLIMAX:** | **CLIMAX:** | **BUYER:** | **BUYER:** |
| **Climax Molybdenum Marketing Corporation** | **Climax Molybdenum Marketing Corporation** | **Elmet Coldwater LLC** | **Elmet Coldwater LLC** |
| */s/ Chris Gnann* | */s/ Chris Gnann* | */s/ Derek Fox* | */s/ Derek Fox* |
| By: | Chris Gnann | By: | Derek Fox |
| Title: | Vice President, Sales & Marketing | Title: | CFO |
| 333 North Central Avenue | 333 North Central Avenue | 460 Jay Street | 460 Jay Street |
| Phoenix, Arizona 85004-4415 | Phoenix, Arizona 85004-4415 | Coldwater, Michigan 49036 | Coldwater, Michigan 49036 |
| Attention: VP, Sales and Marketing | Attention: VP, Sales and Marketing | Attention: Brad Lemon | Attention: Brad Lemon |
| Email: ClimaxMoly_CustomerService@fmi.com | Email: ClimaxMoly_CustomerService@fmi.com | Email: brad.lemon@hcstarcksolutions.com | Email: brad.lemon@hcstarcksolutions.com |

---

**<u>EXHIBIT A</u>**

[Exhibit A describes the product specifications for of the ADM and POS to be purchased and sold pursuant to this Agreement]

## Exhibit 10.8

**Exhibit 10.8**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

![](ea027036005_ex10-8img1.jpg)

**ASSIGNMENT AND AMENDMENT NUMBER ONE TO THE MOLYBDENUM SUPPLY AGREEMENT NO. CC-ELMET-2024**

THIS ASSIGNMENT AND AMENDMENT NUMBER ONE (this "<u>Amendment</u>") is dated effective as of January 1, 2025 (the "<u>Effective Date</u>") and is entered into in order to assign and amend the Molybdenum Supply Agreement dated effective as of January 1, 2024, (the "<u>Original Agreement</u>") and is by and among Climax Molybdenum Marketing Corporation, a Delaware corporation ("<u>Climax</u>") and Elmet Coldwater LLC, a Delaware corporation located at 460 Jay Street, Coldwater, Michigan 49036 ("<u>Assignor</u>") and Elmet Technologies LLC, a Maine Limited Liability Company located at 1560 Lisbon St. Lewiston, Maine 04240 ("<u>Buyer")</u>, Climax, Assignor and Buyer are collectively referred to herein as the "<u>Parties</u>" and individually as a "<u>Party</u>." All capitalized terms used in this amendment but not separately defined in this Amendment will have the meanings given those terms in the Original Agreement.

**<u>Recitals</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Parties wish to assign this Agreement to Elmet Technologies LLC, the parent company of the Assignor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Parties wish to amend the Original Agreement to amend the Term, the Products, the Quantity, and Conversion
Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Pursuant to <u>Section 12</u> of the Original Agreement, only a writing signed by both Climax and Buyer
may amend the Original Agreement, so the Parties have executed this amendment to set forth their understanding.

**<u>Assignment:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The parties hereby agree to assign the Agreement as of January 1, 2025, together with all rights and responsibilities
provided thereby to Elmet Technologies LLC and Elmet Technologies LLC agrees to assume such obligations (as the " <u>Buyer</u> ")
as of January 1, 2025 in full substitution of the Assignor.

**<u>Amendment</u>:**

In consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Original Agreement is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.  **<u>Section 1 Term.</u>** The <u>Term</u> section will be deleted and replaced with:

The term of the Original Agreement will begin on its Effective Date and end on December 31, 2025. The contract will be renewed on an annual basis no later than September 30<sup>th</sup> of each year of the Term following written consent by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.  **<u>Section 2. Products</u>** shall be amended to include the following:

During the Term, Climax will sell and Buyer will buy sublimed pure molybdic oxide ("POS"), meeting the specification set forth in Exhibit A. Collectively, ADM, POC, and POS are referred to as the "Moly Products".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.  **<u>Sections 3.1.1 Quantity of ADM and 3.1.2 Quantity of POS</u>.** <u>Section 3.1.1 Quantity of ADM</u> will have the first sentence amended by
removing the first sentence in its entirety and replacing with the sentence below. Section <u>3.1.2 Quantity of POS</u> will be deleted
in its entirety and replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>3.1.1</u>  **<u>Quantity of ADM or POC.</u>** During the Term, Buyer
will purchase [\*\*] of ADM per month (the " <u>Minimum Monthly ADM Obligation</u> "), each containing [\*\*] pounds (a " <u>FTL</u> ")
of molybdenum contained (" <u>Contained Mo</u> ") in ADM; provided, however, Climax will have no obligation to supply more
than [\*\*] pounds of Contained Mo in ADM (the " <u>Maximum Annual ADM Obligation</u> ")
during the Term and no more than [\*\*] of the Maximum Annual ADM Obligation
during any month during the Term (the " <u>Maximum Monthly ADM Obligation</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>3.1.2</u>**  **<u>Quantity of POS</u>** During the Term, Buyer will purchase [\*\*] of either POS or POC; provided however, Climax will have no obligation to supply more than [\*\*] pounds of Contained Mo in POS or POC (" <u>Maximum POS/POC Quantity</u> ") in each calendar year of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.  **<u>Section 5.2 Conversion Fee Defined.</u>** Section 5.2 Conversion Fee Defined will be deleted in its entirety and
 replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 *Conversion Fee Defined.* "<u>Conversion Fee</u>" means (a) $[\*\*] per pound of Contained Mo for ADM; and (b) $[\*\*] per pound of Contained Mo for POS and POC.

The Conversion Fee will be adjusted annually in December, to be effective as of January 1 of each calendar year during the Term, if the variation in the Composite Index (as defined below and calculated with data available on December 1) for the Comparison Period (as defined below) exceeds 5% of the Composite Index for the Base Period (as defined below); provided, however that if the Conversion Fee is not adjusted at the end of any calendar year during the Term because the variation did not exceed 5% during that calendar year, then the Conversion Fee will be adjusted at the end of the next calendar year by the variation in the Composite Index for the entire period of two calendar years provided that the variation of the Composite Index for that 2-year-period exceeds 5%. The adjusted Conversion Fee will be rounded to two decimal points.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The "**Base Period**" means the 9-month period of January 2023 through September 2023,
provided that if an adjustment to the Conversion Fee is made during the Term, the new Base Period will be January through September of
the calendar year prior to the adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The "**Comparison Period**" means the 9-month period of January through September for each
calendar period during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The "**Composite Index**" means the sum calculated as
follows:

[\*\*], where

CPI = 9-month average for Jan-Sep of the US Consumer Price Index (Series ID CUSR0000SA0 as published by the US Bureau of Labor Statistics https://beta.bls.gov/dataViewer/view/timeseries/CUSR0000SA0)

PPI = 9-month average for Jan-Sep of the US Producer Price Index (Series ID WPS054321; Industrial Electric Power as published by the US Bureau of Labor

Statistics https://beta.bls.gov/dataViewer/view/timeseries/WPS054321)

Composite index for initial base period is:

[\*\*]

[\*\*]

[\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.  **<u>No Further Amendments</u>** . This Amendment, along with the Original Agreement is the entire agreement
of Climax and Buyer. There are no further amendments to the Original Agreement, which subject to this Amendment, remains in full force
and effect.

[Signature page follows]

The Parties have executed this Amendment as of the date first written above:

---

| | | | |
|:---|:---|:---|:---|
| **CLIMAX:** | **CLIMAX:** | **BUYER:** | **BUYER:** |
| **Climax Molybdenum Marketing Corporation** | **Climax Molybdenum Marketing Corporation** | **Elmet Coldwater LLC** | **Elmet Coldwater LLC** |
| */s/ Chris Gnann* | */s/ Chris Gnann* | */s/ Derek Fox* | */s/ Derek Fox* |
| By: | Chris Gnann | By: | Derek Fox |
| Title: | Vice President, Sales & Marketing | Title: | Chief Executive Officer |
|  |  | Date: | 9/25/25 |

---

## Exhibit 10.9

**Exhibit 10.9**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

**PROMISSORY NOTE**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Principal** | **Loan Date** | **Maturity** | **Loan No** | **Call / Coll** | **Account** | **Officer** | **Initials** |
| **$1575000.00** | **09-23-2024** | **09-10-2027** | **[\*\*]** | **1HCI / OTCS** | **[\*\*]** | **\*\*\*** |  |
| References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing "\*\*\* " has been omitted due to text length limitations.  | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing "\*\*\* " has been omitted due to text length limitations.  | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing "\*\*\* " has been omitted due to text length limitations.  | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing "\*\*\* " has been omitted due to text length limitations.  | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing "\*\*\* " has been omitted due to text length limitations.  | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing "\*\*\* " has been omitted due to text length limitations.  | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing "\*\*\* " has been omitted due to text length limitations.  | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing "\*\*\* " has been omitted due to text length limitations.  |

---

---

| | | | |
|:---|:---|:---|:---|
| **Borrower:** | **ELMET TECHNOLOGIES LLC** | **Lender:** | **United Federal Credit Union** |
|  | **ELMET COLDWATER LLC** |  | **Corporate Office** |
|  | **1560 Lisbon Rd** |  | **150 Hilltop** |
| | **Lewiston, ME 04240** | | **St. Joseph, MI 49085** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Principal Amount:** | **$1575000.00** | **Date of Note:** | **September 23, 2024** |

---

**PROMISE TO PAY. ELMET TECHNOLOGIES LLC and ELMET COLDWATER LLC ("Borrower") jointly and severally promise to pay to United Federal Credit Union ("Lender"), or order, in lawful money of the United States of America, the principal amount of One Million Five Hundred Seventy-five Thousand & 00/100 Dollars ($1,575,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance.**

**PAYMENT. Borrower will pay this loan in accordance with the following payment schedule, which calculates interest on the unpaid principal balances as described in the "INTEREST CALCULATION METHOD" paragraph using the interest rates described in this paragraph: 6 monthly consecutive interest payments, beginning October 10, 2024, with subsequent payments due the same day each month after that, and with interest calculated on the unpaid principal balances using an interest rate of 9.000% per annum based on a year of 360 days; 29 monthly consecutive principal and interest payments of $58,928.47 each, beginning April 10, 2025, with subsequent payments due the same day each month after that, and with interest calculated on the unpaid principal balances using an interest rate of 9.000% per annum based on a year of 360 days; and one principal and interest payment of $58,928.37 on September 10, 2027, with interest calculated on the unpaid principal balances using an interest rate of 9.000% per annum based on a year of 360 days. This estimated final payment is based on the assumption that all payments will be made exactly as scheduled; the actual final payment will be for all principal and accrued interest not yet paid, together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing.**

**MAXIMUM INTEREST RATE.** Under no circumstances will the interest rate on this Note exceed (except for any higher default rate shown below) the lesser of 18.000% per annum or the maximum rate allowed by applicable law.

**INTEREST CALCULATION METHOD**. **Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is computed using this method.**

**PRINCIPAL REDUCTION.** Within 10 days of receipt of the REAP Grant, Borrower shall use the proceeds to paydown the subject loan with Lender.

**PREPAYMENT.** Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. **All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: United Federal Credit Union, Main Office, 150 Hilltop Rd. St. Joseph, MI 49085.**

**LATE CHARGE.** If a payment is 10 days or more late, Borrower will be charged **5.000% of the regularly scheduled payment or $25.00, whichever is greater**.

**INTEREST AFTER DEFAULT.** Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding an additional 4.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. After maturity, or after this Note would have matured had there been no default, the Default Rate Margin will continue to apply to the final interest rate described in this Note. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.

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| | | |
|:---|:---|:---|
| **Loan No: [\*\*]** | **PROMISSORY NOTE (Continued)** | **Page 2** |

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**DEFAULT.** Each of the following shall constitute an event of default ("Event of Default") under this Note:

**Payment Default.** Borrower fails to make any payment when due under this Note.

**Other Defaults.** Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

**Default in Favor of Third Parties.** Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents.

**False Statements.** Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

**Death or Insolvency.** The dissolution of Borrower (regardless of whether election to continue is made), any member withdraws from Borrower, or any other termination of Borrower's existence as a going business or the death of any member, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

**Creditor or Forfeiture Proceedings.** Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

**Events Affecting Guarantor.** Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

**Adverse Change.** A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired.

**Insecurity.** Lender in good faith believes itself insecure.

**LENDER'S RIGHTS.** Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

**ATTORNEYS' FEES; EXPENSES.** Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law.

**JURY WAIVER.** **Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.**

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| | | |
|:---|:---|:---|
| **Loan No: [\*\*]** | **PROMISSORY NOTE (Continued)** | **Page 3** |

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**GOVERNING LAW.** **This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Michigan without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Michigan**.

**CHOICE OF VENUE.** If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Berrien County, State of Michigan.

**DISHONORED ITEM FEE.** Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored.

**STATUTORY LIEN.** Borrower agrees that all loan advances under this Note are secured by all shares and deposits in all joint and individual accounts Borrower has with Lender now and in the future. Borrower authorizes Lender, to the extent permitted by applicable law, to apply the balance in these accounts to pay any amounts due under this Note when Borrower is in default under this Note. Shares and deposits in an Individual Retirement Account and any other account that would lose special tax treatment under state or federal law if given as security are not subject to the security interest Borrower has given in Borrower's shares and deposits.

**COLLATERAL.** Borrower acknowledges this Note is secured by Purchase money interest in 2,106 solar panels along with the 100 kW high power CPS three-phase string inverters more fully described in a commercial security agreement dated September 23, 2024 pledged by Elmet Coldwater LLC to Lender.

**LINE OF CREDIT.** This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled to further loan advances. Advances under this Note may be requested orally by Borrower or as provided in this paragraph. All oral requests shall be confirmed in writing on the day of the request. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. The following person or persons are authorized, except as provided in this paragraph, to request advances and authorize payments during the construction loan phase under this Note until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority: **PETER V. ANANIA, President of ELMET TECHNOLOGIES LLC; DEREK S. FOX, CFO of ELMET TECHNOLOGIES LLC; PETER V. ANANIA, President of ELMET COLDWATER LLC; and DEREK S. FOX, CFO of ELMET COLDWATER LLC. Draw requests are to be reviewed and approved by Lender prior to funding.** Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs.

**SUCCESSOR INTERESTS.** The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

**NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES.** Borrower may notify Lender if Lender reports any inaccurate information about Borrower's account(s) to a consumer reporting agency. Borrower's written notice describing the specific inaccuracy(ies) should be sent to Lender at the following address: United Federal Credit Union Main Office 150 Hilltop Rd. St. Joseph, MI 49085.

**GENERAL PROVISIONS.** If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with or without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation, any non-judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine; (e) release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; and (f) determine how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several.

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| | | |
|:---|:---|:---|
| **Loan No: [\*\*]** | **PROMISSORY NOTE (Continued)** | **Page 4** |

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**PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. EACH BORROWER AGREES TO THE TERMS OF THE NOTE.**

**BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.**

**BORROWER:**

**ELMET TECHNOLOGIES LLC**

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| | |
|:---|:---|
| **By:** | /s/ Derek S. Fox |
|  | **DEREK S. FOX, CFO of ELMET TECHNOLOGIES LLC** |

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**ELMET COLDWATER LLC**

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| | |
|:---|:---|
| **By:** | /s/ Derek S. Fox |
|  | **DEREK S. FOX, CFO of ELMET COLDWATER LLC** |

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**LENDER:**

**UNITED FEDERAL CREDIT UNION**

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| | |
|:---|:---|
| **X** | /s/ Jeff Hannan |
|  | **Jeff Hannan, Commercial Loan Officer** |

---

## Exhibit 10.10

**Exhibit 10.10**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

**BUSINESS LOAN AGREEMENT**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Principal** | **Loan Date** | **Maturity** | **Loan No** | **Call / Coll** | **Account** | **Officer** | **Initials** |
| **$1575000.00** | **09-23-2024** | **09-10-2027** | **[\*\*]** | **1HCI / OTCS** | **[\*\*]** | **\*\*\*** |  |
| References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. |

---

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| | | | |
|:---|:---|:---|:---|
| **Borrower:** | **ELMET TECHNOLOGIES LLC** | **Lender:** | **United Federal Credit Union** |
|  | **ELMET COLDWATER LLC** |  | **Corporate Office** |
|  | **1560 Lisbon Rd** |  | **150 Hilltop** |
| | **Lewiston, ME 04240** | | **St. Joseph, MI 49085** |

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**THIS BUSINESS LOAN AGREEMENT dated September 23, 2024, is made and executed between ELMET TECHNOLOGIES LLC and ELMET COLDWATER LLC ("Borrower") and United Federal Credit Union ("Lender") on the following terms and conditions. Borrower has received prior commercial loans from Lender or has applied to Lender for a commercial loan or loans or other financial accommodations, including those which may be described on any exhibit or schedule attached to this Agreement. Borrower understands and agrees that: (A) in granting, renewing, or extending any Loan, Lender is relying upon Borrower's representations, warranties, and agreements as set forth in this Agreement; (B) the granting, renewing, or extending of any Loan by Lender at all times shall be subject to Lender's sole judgment and discretion; and (C) all such Loans shall be and remain subject to the terms and conditions of this Agreement.**

**TERM.** This Agreement shall be effective as of September 23, 2024, and shall continue in full force and effect until such time as all of Borrower's Loans in favor of Lender have been paid in full, including principal, interest, costs, expenses, attorneys' fees, and other fees and charges, or until such time as the parties may agree in writing to terminate this Agreement.

**LINE OF CREDIT.** The Indebtedness contemplates multiple loan advances. Advances under the Indebtedness, as well as directions for payment from Borrower's accounts, may be requested orally by Borrower or as provided in the "Advance Authority" section below. All requests shall be confirmed in writing on the day of the request. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person as described in the "Advance Authority" section below or (B) credited to any of Borrower's accounts with Lender.

**ADVANCE AUTHORITY.** The following person or persons are authorized, except as provided in this paragraph, to request advances and authorize payments during the construction loan phase under the Note until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of such authority: **PETER V. ANANIA, President of ELMET TECHNOLOGIES LLC; DEREK S. FOX, CFO of ELMET TECHNOLOGIES LLC; PETER V. ANANIA, President of ELMET COLDWATER LLC; and DEREK S. FOX, CFO of ELMET COLDWATER LLC. Draw requests are to be reviewed and approved by Lender prior to funding.**

**CONDITIONS PRECEDENT TO EACH ADVANCE.** Lender's obligation to make the initial Advance and each subsequent Advance under this Agreement shall be subject to the fulfillment to Lender's satisfaction of all of the conditions set forth in this Agreement and in the Related Documents.

**Loan Documents.** Borrower shall provide to Lender the following documents for the Loan: (1) the Note; (2) Security Agreements granting to Lender security interests in the Collateral; (3) financing statements and all other documents perfecting Lender's Security Interests; (4) evidence of insurance as required below; (5) together with all such Related Documents as Lender may require for the Loan; all in form and substance satisfactory to Lender and Lender's counsel.

**Borrower's Authorization.** Borrower shall have provided in form and substance satisfactory to Lender properly certified resolutions, duly authorizing the execution and delivery of this Agreement, the Note and the Related Documents. In addition, Borrower shall have provided such other resolutions, authorizations, documents and instruments as Lender or its counsel, may require.

**Payment of Fees and Expenses.** Borrower shall have paid to Lender all fees, charges, and other expenses which are then due and payable as specified in this Agreement or any Related Document.

**Representations and Warranties.** The representations and warranties set forth in this Agreement, in the Related Documents, and in any document or certificate delivered to Lender under this Agreement are true and correct.

**No Event of Default.** There shall not exist at the time of any Advance a condition which would constitute an Event of Default under this Agreement or under any Related Document.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 2** |

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**MULTIPLE BORROWERS.** This Agreement has been executed by multiple obligors who are referred to in this Agreement individually, collectively and interchangeably as "Borrower." Unless specifically stated to the contrary, the word "Borrower" as used in this Agreement, including without limitation all representations, warranties and covenants, shall include all Borrowers. Borrower understands and agrees that, with or without notice to any one Borrower, Lender may (A) make one or more additional secured or unsecured loans or otherwise extend additional credit with respect to any other Borrower; (B) with respect to any other Borrower alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (C) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (D) release, substitute, agree not to sue, or deal with any one or more of Borrower's or any other Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (E) determine how, when and what application of payments and credits shall be made on any indebtedness; (F) apply such security and direct the order or manner of sale of any Collateral, including without limitation, any non-judicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) sell, transfer, assign or grant participations in all or any part of the Loan; (H) exercise or refrain from exercising any rights against Borrower or others, or otherwise act or refrain from acting; (I) settle or compromise any indebtedness; and (J) subordinate the payment of all or any part of any of Borrower's indebtedness to Lender to the payment of any liabilities which may be due Lender or others.

**REPRESENTATIONS AND WARRANTIES.** Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement of loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at all times any Indebtedness exists:

**Organization.** ELMET TECHNOLOGIES LLC is a limited liability company which is, and at all times shall be, duly organized, validly existing, and in good standing under and by virtue of the laws of the State of Maine. ELMET TECHNOLOGIES LLC is duly authorized to transact business in all other states in which ELMET TECHNOLOGIES LLC is doing business, having obtained all necessary filings, governmental licenses and approvals for each state in which ELMET TECHNOLOGIES LLC is doing business. Specifically, ELMET TECHNOLOGIES LLC is, and at all times shall be, duly qualified as a foreign limited liability company in all states in which the failure to so qualify would have a material adverse effect on its business or financial condition. ELMET TECHNOLOGIES LLC has the full power and authority to own its properties and to transact the business in which it is presently engaged or presently proposes to engage. ELMET TECHNOLOGIES LLC maintains an office at 1560 Lisbon Rd, Lewiston, ME 04240. Unless ELMET TECHNOLOGIES LLC has designated otherwise in writing, the principal office is the office at which ELMET TECHNOLOGIES LLC keeps its books and records including its records concerning the Collateral. ELMET TECHNOLOGIES LLC will notify Lender prior to any change in the location of ELMET TECHNOLOGIES LLC's state of organization or any change in ELMET TECHNOLOGIES LLC's name. ELMET TECHNOLOGIES LLC shall do all things necessary to preserve and to keep in full force and effect its existence, rights and privileges, and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to ELMET TECHNOLOGIES LLC and ELMET TECHNOLOGIES LLC's business activities.

ELMET COLDWATER LLC is a limited liability company which is, and at all times shall be, duly organized, validly existing, and in good standing under and by virtue of the laws of the State of Delaware. ELMET COLDWATER LLC is duly authorized to transact business in all other states in which ELMET COLDWATER LLC is doing business, having obtained all necessary filings, governmental licenses and approvals for each state in which ELMET COLDWATER LLC is doing business. Specifically, ELMET COLDWATER LLC is, and at all times shall be, duly qualified as a foreign limited liability company in all states in which the failure to so qualify would have a material adverse effect on its business or financial condition. ELMET COLDWATER LLC has the full power and authority to own its properties and to transact the business in which it is presently engaged or presently proposes to engage. ELMET COLDWATER LLC maintains an office at 460 Jay St, Coldwater, MI 49036. Unless ELMET COLDWATER LLC has designated otherwise in writing, the principal office is the office at which ELMET COLDWATER LLC keeps its books and records including its records concerning the Collateral. ELMET COLDWATER LLC will notify Lender prior to any change in the location of ELMET COLDWATER LLC's state of organization or any change in ELMET COLDWATER LLC's name. ELMET COLDWATER LLC shall do all things necessary to preserve and to keep in full force and effect its existence, rights and privileges, and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to ELMET COLDWATER LLC and ELMET COLDWATER LLC's business activities.

**Assumed Business Names**. Borrower has filed or recorded all documents or filings required by law relating to all assumed business names used by Borrower. Excluding the name of Borrower, the following is a complete list of all assumed business names under which Borrower does business: **None.**

**Authorization**. Borrower's execution, delivery, and performance of this Agreement and all the Related Documents have been duly authorized by all necessary action by Borrower and do not conflict with, result in a violation of, or constitute a default under (1) any provision of (a) Borrower's articles of organization or membership agreements, or (b) any agreement or other instrument binding upon Borrower or (2) any law, governmental regulation, court decree, or order applicable to Borrower or to Borrower's properties.

**Financial Information.** Each of Borrower's financial statements supplied to Lender truly and completely disclosed Borrower's financial condition as of the date of the statement, and there has been no material adverse change in Borrower's financial condition subsequent to the date of the most recent financial statement supplied to Lender. Borrower has no material contingent obligations except as disclosed in such financial statements.

**Legal Effect.** This Agreement constitutes, and any instrument or agreement Borrower is required to give under this Agreement when delivered will constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 3** |

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**Properties.** Except as contemplated by this Agreement or as previously disclosed in Borrower's financial statements or in writing to Lender and as accepted by Lender, and except for property tax liens for taxes not presently due and payable, Borrower owns and has good title to all of Borrower's properties free and clear of all Security Interests, and has not executed any security documents or financing statements relating to such properties. All of Borrower's properties are titled in Borrower's legal name, and Borrower has not used or filed a financing statement under any other name for at least the last five (5) years.

**Hazardous Substances.** Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that: (1) During the period of Borrower's ownership of the Collateral, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from any of the Collateral. (2) Borrower has no knowledge of, or reason to believe that there has been (a) any breach or violation of any Environmental Laws; (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Collateral by any prior owners or occupants of any of the Collateral; or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters. (3) Neither Borrower nor any tenant, contractor, agent or other authorized user of any of the Collateral shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from any of the Collateral; and any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations, and ordinances, including without limitation all Environmental Laws. Borrower authorizes Lender and its agents to enter upon the Collateral to make such inspections and tests as Lender may deem appropriate to determine compliance of the Collateral with this section of the Agreement. Any inspections or tests made by Lender shall be at Borrower's expense and for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Borrower or to any other person. The representations and warranties contained herein are based on Borrower's due diligence in investigating the Collateral for hazardous waste and Hazardous Substances. Borrower hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Borrower becomes liable for cleanup or other costs under any such laws, and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Agreement or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance on the Collateral. The provisions of this section of the Agreement, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the termination, expiration or satisfaction of this Agreement and shall not be affected by Lender's acquisition of any interest in any of the Collateral, whether by foreclosure or otherwise.

**Litigation and Claims.** No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Borrower is pending or threatened, and no other event has occurred which may materially adversely affect Borrower's financial condition or properties, other than litigation, claims, or other events, if any, that have been disclosed to and acknowledged by Lender in writing.

**Taxes.** To the best of Borrower's knowledge, all of Borrower's tax returns and reports that are or were required to be filed, have been filed, and all taxes, assessments and other governmental charges have been paid in full, except those presently being or to be contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been provided.

**Lien Priority.** Unless otherwise previously disclosed to Lender in writing, Borrower has not entered into or granted any Security Agreements, or permitted the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly securing repayment of Borrower's Loan and Note, that would be prior or that may in any way be superior to Lender's Security Interests and rights in and to such Collateral.

**Binding Effect**. This Agreement, the Note, all Security Agreements (if any), and all Related Documents are binding upon the signers thereof, as well as upon their successors, representatives and assigns, and are legally enforceable in accordance with their respective terms.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 4** |

---

**AFFIRMATIVE COVENANTS.** Borrower covenants and agrees with Lender that, so long as this Agreement remains in effect, Borrower will:

**Notices of Claims and Litigation**. Promptly inform Lender in writing of (1) all material adverse changes in Borrower's financial condition, and (2) all existing and all threatened litigation, claims, investigations, administrative proceedings or similar actions affecting Borrower or any Guarantor which could materially affect the financial condition of Borrower or the financial condition of any Guarantor.

**Financial Records**. Maintain its books and records in accordance with GAAP, or an OCBOA acceptable to Lender, applied on a consistent basis, and permit Lender to examine and audit Borrower's books and records at all reasonable times.

**Financial Statements.** Furnish Lender with the following:

**Additional Requirements.**

Annual submission of audited financial statements from Elmet Technologies LLC due within 120 days of fiscal year end in a form acceptable to Lender.

Annual submission of audited financial statements from Elmet Coldwater LLC due within 120 days of fiscal year end in a form acceptable to Lender.

All financial reports required to be provided under this Agreement shall be prepared in accordance with GAAP, or an OCBOA acceptable to Lender, applied on a consistent basis, and certified by Borrower as being true and correct.

**Additional Information.** Furnish such additional information and statements, as Lender may request from time to time.

**Insurance.** Maintain fire and other risk insurance, public liability insurance, and such other insurance as Lender may require with respect to Borrower's properties and operations, in form, amounts, coverages and with insurance companies acceptable to Lender. Borrower, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least thirty (30) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Borrower or any other person. In connection with all policies covering assets in which Lender holds or is offered a security interest for the Loans, Borrower will provide Lender with such lender's loss payable or other endorsements as Lender may require.

**Insurance Reports.** Furnish to Lender, upon request of Lender, reports on each existing insurance policy showing such information as Lender may reasonably request, including without limitation the following: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the properties insured; (5) the then current property values on the basis of which insurance has been obtained, and the manner of determining those values; and (6) the expiration date of the policy. In addition, upon request of Lender (however not more often than annually), Borrower will have an independent appraiser satisfactory to Lender determine, as applicable, the actual cash value or replacement cost of any Collateral. The cost of such appraisal shall be paid by Borrower.

**Other Agreements**. Comply with all terms and conditions of all other agreements, whether now or hereafter existing, between Borrower and any other party and notify Lender immediately in writing of any default in connection with any other such agreements.

**Loan Proceeds.** Use all Loan proceeds solely for Borrower's business operations, unless specifically consented to the contrary by Lender in writing.

**Taxes, Charges and Liens.** Pay and discharge when due all of its indebtedness and obligations, including without limitation all assessments, taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits, prior to the date on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any of Borrower's properties, income, or profits. Provided however, Borrower will not be required to pay and discharge any such assessment, tax, charge, levy, lien or claim so long as (1) the legality of the same shall be contested in good faith by appropriate proceedings, and (2) Borrower shall have established on Borrower's books adequate reserves with respect to such contested assessment, tax, charge, levy, lien, or claim in accordance with GAAP or an OCBOA acceptable to Lender.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 5** |

---

**Performance.** Perform and comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, in the Related Documents, and in all other instruments and agreements between Borrower and Lender. Borrower shall notify Lender immediately in writing of any default in connection with any agreement.

**Operations.** Maintain executive and management personnel with substantially the same qualifications and experience as the present executive and management personnel; provide written notice to Lender of any change in executive and management personnel; conduct its business affairs in a reasonable and prudent manner.

**Environmental Studies.** Promptly conduct and complete, at Borrower's expense, all such investigations, studies, samplings and testings as may be requested by Lender or any governmental authority relative to any substance, or any waste or by-product of any substance defined as toxic or a hazardous substance under applicable federal, state, or local law, rule, regulation, order or directive, at or affecting any property or any facility owned, leased or used by Borrower.

**Compliance with Governmental Requirements.** Comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the conduct of Borrower's properties, businesses and operations, and to the use or occupancy of the Collateral, including without limitation, the Americans With Disabilities Act. Borrower may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Borrower has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Collateral are not jeopardized. Lender may require Borrower to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.

**Beneficial Ownership Information.** Comply with all beneficial ownership information reporting requirements of the Corporate Transparency Act and its implementing regulations (collectively the CTA), if applicable to any Borrower. Any Borrower that is or becomes a reporting company as defined in the CTA: (1) has filed, or will file within required timeframes a complete and accurate report of its beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN) as required by the CTA; (2) will update or correct its beneficial ownership information with FinCEN within required timeframes upon any change in its beneficial ownership information; (3) will provide Lender with a copy of its beneficial ownership information report filed with FinCEN upon request; (4) consents to allow Lender to obtain from FinCEN beneficial ownership information filed by Borrower; and (5) will notify Lender in writing of any change in its beneficial ownership information within 30 days of such change.

**Inspection.** Permit employees or agents of Lender at any reasonable time to inspect any and all Collateral for the Loan or Loans and Borrower's other properties and to examine or audit Borrower's books, accounts, and records and to make copies and memoranda of Borrower's books, accounts, and records. If Borrower now or at any time hereafter maintains any records (including without limitation computer generated records and computer software programs for the generation of such records) in the possession of a third party, Borrower, upon request of Lender, shall notify such party to permit Lender free access to such records at all reasonable times and to provide Lender with copies of any records it may request, all at Borrower's expense.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 6** |

---

**Environmental Compliance and Reports.** Borrower shall comply in all respects with any and all Environmental Laws; not cause or permit to exist, as a result of an intentional or unintentional action or omission on Borrower's part or on the part of any third party, on property owned and/or occupied by Borrower, any environmental activity where damage may result to the environment, unless such environmental activity is pursuant to and in compliance with the conditions of a permit issued by the appropriate federal, state or local governmental authorities; shall furnish to Lender promptly and in any event within thirty (30) days after receipt thereof a copy of any notice, summons, lien, citation, directive, letter or other communication from any governmental agency or instrumentality concerning any intentional or unintentional action or omission on Borrower's part in connection with any environmental activity whether or not there is damage to the environment and/or other natural resources.

**Additional Assurances.** Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, assignments, financing statements, instruments, documents and other agreements as Lender or its attorneys may reasonably request to evidence and secure the Loans and to perfect all Security Interests.

**RECOVERY OF ADDITIONAL COSTS.** If the imposition of or any change in any law, rule, regulation, guideline, or generally accepted accounting principle, or the interpretation or application of any thereof by any court, administrative or governmental authority, or standard-setting organization (including any request or policy not having the force of law) shall impose, modify or make applicable any taxes (except federal, state or local income or franchise taxes imposed on Lender), reserve requirements, capital adequacy requirements or other obligations which would (A) increase the cost to Lender for extending or maintaining the credit facilities to which this Agreement relates, (B) reduce the amounts payable to Lender under this Agreement or the Related Documents, or (C) reduce the rate of return on Lender's capital as a consequence of Lender's obligations with respect to the credit facilities to which this Agreement relates, then Borrower agrees to pay Lender such additional amounts as will compensate Lender therefor, within five (5) days after Lender's written demand for such payment, which demand shall be accompanied by an explanation of such imposition or charge and a calculation in reasonable detail of the additional amounts payable by Borrower, which explanation and calculations shall be conclusive in the absence of manifest error.

**LENDER'S EXPENDITURES.** If any action or proceeding is commenced that would materially affect Lender's interest in the Collateral or if Borrower fails to comply with any provision of this Agreement or any Related Documents, including but not limited to Borrower's failure to discharge or pay when due any amounts Borrower is required to discharge or pay under this Agreement or any Related Documents, Lender on Borrower's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on any Collateral and paying all costs for insuring, maintaining and preserving any Collateral. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Borrower. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity.

**CESSATION OF ADVANCES.** If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other agreement, Lender shall have no obligation to make Loan Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor is in default under the terms of this Agreement or any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender; (B) Borrower or any Guarantor dies, becomes incompetent or becomes insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged a bankrupt; (C) there occurs a material adverse change in Borrower's financial condition, in the financial condition of any Guarantor, or in the value of any Collateral securing any Loan; or (D) any Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any other loan with Lender; or (E) Lender in good faith deems itself insecure, even though no Event of Default shall have occurred.

**STATUTORY LIEN.** Borrower agrees that all loan advances under this Agreement are secured by all shares and deposits in all joint and individual accounts Borrower has with Lender now and in the future. Borrower authorizes Lender, to the extent permitted by applicable law, to apply the balance in these accounts to pay any amounts due under this Agreement when Borrower is in default under this Agreement. Shares and deposits in an Individual Retirement Account and any other account that would lose special tax treatment under state or federal law if given as security are not subject to the security interest Borrower has given in Borrower's shares and deposits.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 7** |

---

**DEFAULT.** Each of the following shall constitute an Event of Default under this Agreement:

**Payment Default.** Borrower fails to make any payment when due under the Loan.

**Other Defaults.** Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

**Default in Favor of Third Parties.** Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's or any Grantor's property or Borrower's or any Grantor's ability to repay the Loans or perform their respective obligations under this Agreement or any of the Related Documents.

**False Statements.** Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

**Death or Insolvency.** The dissolution of Borrower (regardless of whether election to continue is made), any member withdraws from Borrower, or any other termination of Borrower's existence as a going business or the death of any member, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

**Defective Collateralization.** This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason.

**Creditor or Forfeiture Proceedings.** Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the Loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

**Events Affecting Guarantor.** Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 8** |

---

**Adverse Change.** A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of the Loan is impaired.

**Insecurity.** Lender in good faith believes itself insecure.

**EFFECT OF AN EVENT OF DEFAULT.** If any Event of Default shall occur, except where otherwise provided in this Agreement or the Related Documents, all commitments and obligations of Lender under this Agreement or the Related Documents or any other agreement immediately will terminate (including any obligation to make further Loan Advances or disbursements), and, at Lender's option, all Indebtedness immediately will become due and payable, all without notice of any kind to Borrower, except that in the case of an Event of Default of the type described in the "Insolvency" subsection above, such acceleration shall be automatic and not optional. In addition, Lender shall have all the rights and remedies provided in the Related Documents or available at law, in equity, or otherwise. Except as may be prohibited by applicable law, all of Lender's rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Borrower or of any Grantor shall not affect Lender's right to declare a default and to exercise its rights and remedies.

**MISCELLANEOUS PROVISIONS.** The following miscellaneous provisions are a part of this Agreement:

**Amendments.** This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.

**Attorneys' Fees;** Expenses. Borrower agrees to pay upon demand all of Lender's costs and expenses, including Lender's reasonable attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement, and Borrower shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's reasonable attorneys' fees and legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Borrower also shall pay all court costs and such additional fees as may be directed by the court.

**Caption Headings.** Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.

**Consent to Loan Participation.** Borrower agrees and consents to Lender's sale or transfer, whether now or later, of one or more participation interests in the Loan to one or more purchasers, whether related or unrelated to Lender. Lender may provide, without any limitation whatsoever, to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any other matter relating to the Loan, and Borrower hereby waives any rights to privacy Borrower may have with respect to such matters. Borrower additionally waives any and all notices of sale of participation interests, as well as all notices of any repurchase of such participation interests. Borrower also agrees that the purchasers of any such participation interests will be considered as the absolute owners of such interests in the Loan and will have all the rights granted under the participation agreement or agreements governing the sale of such participation interests. Borrower further waives all rights of offset or counterclaim that it may have now or later against Lender or against any purchaser of such a participation interest and unconditionally agrees that either Lender or such purchaser may enforce Borrower's obligation under the Loan irrespective of the failure or insolvency of any holder of any interest in the Loan. Borrower further agrees that the purchaser of any such participation interests may enforce its interests irrespective of any personal claims or defenses that Borrower may have against Lender.

**Governing Law. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Michigan without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the State of Michigan.**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 9** |

---

**Choice of Venue.** If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Berrien County, State of Michigan.

**Joint and Several Liability.** All obligations of Borrower under this Agreement shall be joint and several, and all references to Borrower shall mean each and every Borrower. This means that each Borrower signing below is responsible for all obligations in this Agreement. Where any one or more of the parties is a corporation, partnership, limited liability company or similar entity, it is not necessary for Lender to inquire into the powers of any of the officers, directors, partners, members, or other agents acting or purporting to act on the entity's behalf, and any obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Agreement.

**No Waiver by Lender.** Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Borrower, or between Lender and any Grantor, shall constitute a waiver of any of Lender's rights or of any of Borrower's or any Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

**Notices.** Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Borrower agrees to keep Lender informed at all times of Borrower's current address. Unless otherwise provided or required by law, if there is more than one Borrower, any notice given by Lender to any Borrower is deemed to be notice given to all Borrowers.

**Severability.** If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any person or circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other person or circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement.

**Subsidiaries and Affiliates of Borrower.** To the extent the context of any provisions of this Agreement makes it appropriate, including without limitation any representation, warranty or covenant, the word "Borrower" as used in this Agreement shall include all of Borrower's subsidiaries and affiliates. Notwithstanding the foregoing however, under no circumstances shall this Agreement be construed to require Lender to make any Loan or other financial accommodation to any of Borrower's subsidiaries or affiliates.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 10** |

---

**Successors and Assigns.** All covenants and agreements by or on behalf of Borrower contained in this Agreement or any Related Documents shall bind Borrower's successors and assigns and shall inure to the benefit of Lender and its successors and assigns. Borrower shall not, however, have the right to assign Borrower's rights under this Agreement or any interest therein, without the prior written consent of Lender.

**Survival of Representations and Warranties.** Borrower understands and agrees that in making the Loan, Lender is relying on all representations, warranties, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by Borrower to Lender under this Agreement or the Related Documents. Borrower further agrees that regardless of any investigation made by Lender, all such representations, warranties and covenants will survive the making of the Loan and delivery to Lender of the Related Documents, shall be continuing in nature, and shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full, or until this Agreement shall be terminated in the manner provided above, whichever is the last to occur.

**Time is of the Essence.** Time is of the essence in the performance of this Agreement.

**Waive Jury. All parties to this Agreement hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party.**

**DEFINITIONS.** The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code. Accounting words and terms not otherwise defined in this Agreement shall have the meanings assigned to them in accordance with generally accepted accounting principles as in effect on the date of this Agreement:

**Advance.** The word "Advance" means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower's behalf on a line of credit or multiple advance basis under the terms and conditions of this Agreement.

**Agreement.** The word "Agreement" means this Business Loan Agreement, as this Business Loan Agreement may be amended or modified from time to time, together with all exhibits and schedules attached to this Business Loan Agreement from time to time.

**Borrower.** The word "Borrower" means ELMET TECHNOLOGIES LLC and ELMET COLDWATER LLC and includes all co-signers and co-makers signing the Note and all their successors and assigns.

**Environmental Laws.** The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.

**Event of Default.** The words "Event of Default" mean any of the events of default set forth in this Agreement in the default section of this Agreement.

**GAAP.** The word "GAAP" means generally accepted accounting principles.

**Grantor.** The word "Grantor" means each and all of the persons or entities granting a Security Interest in any Collateral for the Loan, including without limitation all Borrowers granting such a Security Interest.

**Guarantor.** The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Loan.

**Guaranty.** The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** | &nbsp;&nbsp;**BUSINESS LOAN AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 11** |

---

**Hazardous Substances.** The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos.

**Indebtedness.** The word "Indebtedness" means the indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other indebtedness and costs and expenses for which Borrower is responsible under this Agreement or under any of the Related Documents.

**Lender.** The word "Lender" means United Federal Credit Union, its successors and assigns.

**Loan.** The word "Loan" means any and all loans and financial accommodations from Lender to Borrower whether now or hereafter existing, and however evidenced, including without limitation those loans and financial accommodations described herein or described on any exhibit or schedule attached to this Agreement from time to time.

**Note.** The word "Note" means the Note dated September 23, 2024 and executed by ELMET TECHNOLOGIES LLC and ELMET COLDWATER LLC in the principal amount of $1,575,000.00, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the note or credit agreement.

**OCBOA.** The term "OCBOA" means Other Comprehensive Basis of Accounting, as designated by Lender in writing as an acceptable alternative to GAAP.

**Related Documents.** The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Loan.

**BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED SEPTEMBER 23, 2024.**

**BORROWER:**

**ELMET TECHNOLOGIES LLC**

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| | |
|:---|:---|
| **By:** | /s/ Derek S. Fox |
|  | **DEREK S. FOX, CFO of ELMET TECHNOLOGIES LLC** |

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**ELMET COLDWATER LLC**

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| | |
|:---|:---|
| **By:** | /s/ Derek S. Fox |
|  | **DEREK S. FOX, CFO of ELMET COLDWATER LLC** |

---

**LENDER:**

**UNITED FEDERAL CREDIT UNION**

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| | |
|:---|:---|
| **By:** | /s/ Jeff Hannan |
|  | **Jeff Hannan, Commercial Loan Officer** |

---

## Exhibit 10.11

**Exhibit 10.11**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

**COMMERCIAL SECURITY AGREEMENT**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Principal** | **Loan Date** | **Maturity** | **Loan No** | **Call / Coll** | **Account** | **Officer** | **Initials** |
| **$1575000.00** | **09-23-2024** | **09-10-2027** | **[\*\*]** | **1HCI / OTCS** | **[\*\*]** | **\*\*\*** |  |
| References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. | References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.<br> Any item above containing " \*\*\* " has been omitted due to text length limitations. |

---

---

| | | | |
|:---|:---|:---|:---|
| **Borrower:** | **ELMET TECHNOLOGIES LLC** | **Lender:** | **United Federal Credit Union** |
|  | **ELMET COLDWATER LLC** |  | **Corporate Office** |
|  | **1560 Lisbon Rd** |  | **150 Hilltop** |
|  | **Lewiston, ME 04240** |  | **St. Joseph, MI 49085** |
| **Grantor:** | **ELMET COLDWATER LLC** |  |  |
|  | **460 Jay St** |  |  |
|  | **Coldwater, MI 49036** |  |  |

---

**THIS COMMERCIAL SECURITY AGREEMENT dated September 23, 2024, is made and executed among ELMET COLDWATER LLC ("Grantor"); ELMET TECHNOLOGIES LLC and ELMET COLDWATER LLC ("Borrower"); and United Federal Credit Union ("Lender").**

**GRANT OF SECURITY INTEREST. For valuable consideration, Grantor grants to Lender a security interest in the Collateral to secure the Indebtedness and agrees that Lender shall have the rights stated in this Agreement with respect to the Collateral, in addition to all other rights which Lender may have by law.**

**COLLATERAL DESCRIPTION**. The word "Collateral" as used in this Agreement means the following described property, whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever located, in which Grantor is giving to Lender a security interest for the payment of the Indebtedness and performance of all other obligations under the Note and this Agreement:

**Purchase money interest in 2,106 solar panels along with the 100 kW high power CPS three-phase string inverters located at 460 Jay Street, Coldwater, MI 49036; whether any of the foregoing is owned now or acquired later; all accessions, additions, replacements, any substitutions relating to any of the foregoing; all records of any kind relating to any of the foregoing.**

In addition, the word "Collateral" also includes all the following, whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever located:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) All accessions, attachments, accessories, tools, parts, supplies, replacements of and additions to any of the collateral described herein, whether added now or later.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) All products and produce of any of the property described in this Collateral section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) All accounts, general intangibles, instruments, rents, monies, payments, and all other rights, arising out of a sale, lease, consignment or other disposition of any of the property described in this Collateral section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (D) All proceeds (including insurance proceeds) from the sale, destruction, loss, or other disposition of any of the property described in this Collateral section, and sums due from a third party who has damaged or destroyed the Collateral or from that party's insurer, whether due to judgment, settlement or other process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (E) All records and data relating to any of the property described in this Collateral section, whether in the form of a writing, photograph, microfilm, microfiche, or electronic media, together with all of Grantor's right, title, and interest in and to all computer software required to utilize, create, maintain, and process any such records or data on electronic media.

**CROSS-COLLATERALIZATION.** In addition to the Note, this Agreement secures all obligations, debts and liabilities, plus interest thereon, of either Grantor or Borrower to Lender, or any one or more of them, as well as all claims by Lender against Borrower and Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Borrower or Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable.

**FUTURE ADVANCES.** In addition to the Note, this Agreement secures all future advances made by Lender to Borrower regardless of whether the advances are made a) pursuant to a commitment or b) for the same purposes.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 2** |

---

**BORROWER'S WAIVERS AND RESPONSIBILITIES.** Except as otherwise required under this Agreement or by applicable law, (A) Borrower agrees that Lender need not tell Borrower about any action or inaction Lender takes in connection with this Agreement; (B) Borrower assumes the responsibility for being and keeping informed about the Collateral; and (C) Borrower waives any defenses that may arise because of any action or inaction of Lender, including without limitation any failure of Lender to realize upon the Collateral or any delay by Lender in realizing upon the Collateral; and Borrower agrees to remain liable under the Note no matter what action Lender takes or fails to take under this Agreement.

**GRANTOR'S REPRESENTATIONS AND WARRANTIES.** Grantor warrants that: (A) this Agreement is executed at Borrower's request and not at the request of Lender; (B) Grantor has the full right, power and authority to enter into this Agreement and to pledge the Collateral to Lender; (C) Grantor has established adequate means of obtaining from Borrower on a continuing basis information about Borrower's financial condition; and (D) Lender has made no representation to Grantor about Borrower or Borrower's creditworthiness.

**GRANTOR'S WAIVERS.** Grantor waives all requirements of presentment, protest, demand, and notice of dishonor or non-payment to Borrower or Grantor, or any other party to the Indebtedness or the Collateral. Lender may do any of the following with respect to any obligation of any Borrower, without first obtaining the consent of Grantor: (A) grant any extension of time for any payment, (B) grant any renewal, (C) permit any modification of payment terms or other terms, or (D) exchange or release any Collateral or other security. No such act or failure to act shall affect Lender's rights against Grantor or the Collateral.

**STATUTORY LIEN.** Grantor agrees that all Indebtedness is secured by all shares and deposits in all joint and individual accounts Grantor has with Lender now and in the future. Grantor authorizes Lender, to the extent permitted by applicable law, to apply the balance in these accounts to pay any amounts due under this Agreement when Grantor is in default under this Agreement. Shares and deposits in an Individual Retirement Account and any other account that would lose special tax treatment under state or federal law if given as security are not subject to the security interest Grantor has given in Grantor's shares and deposits.

**GRANTOR'S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL.** With respect to the Collateral, Grantor represents and promises to Lender that:

**Perfection of Security Interest.** Grantor agrees to take whatever actions are requested by Lender to perfect and continue Lender's security interest in the Collateral. Upon request of Lender, Grantor will deliver to Lender any and all of the documents evidencing or constituting the Collateral, and Grantor will note Lender's interest upon any and all chattel paper and instruments if not delivered to Lender for possession by Lender. **This is a continuing Security Agreement and will continue in effect even though all or any part of the Indebtedness is paid in full and even though for a period of time Borrower may not be indebted to Lender.**

**Notices to Lender.** Grantor will promptly notify Lender in writing at Lender's address shown above (or such other addresses as Lender may designate from time to time) prior to any (1) change in Grantor's name; (2) change in Grantor's assumed business name(s); (3) change in the management or in the members or managers of the limited liability company Grantor; (4) change in the authorized signer(s); (5) change in Grantor's principal office address; (6) change in Grantor's state of organization; (7) conversion of Grantor to a new or different type of business entity; or (8) change in any other aspect of Grantor that directly or indirectly relates to any agreements between Grantor and Lender. No change in Grantor's name or state of organization will take effect until after Lender has received notice.

**No Violation.** The execution and delivery of this Agreement will not violate any law or agreement governing Grantor or to which Grantor is a party, and its membership agreement does not prohibit any term or condition of this Agreement.

**Enforceability of Collateral.** To the extent the Collateral consists of accounts, chattel paper, or general intangibles, as defined by the Uniform Commercial Code, the Collateral is enforceable in accordance with its terms, is genuine, and fully complies with all applicable laws and regulations concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. There shall be no setoffs or counterclaims against any of the Collateral, and no agreement shall have been made under which any deductions or discounts may be claimed concerning the Collateral except those disclosed to Lender in writing.

**Location of the Collateral.** Except in the ordinary course of Grantor's business, Grantor agrees to keep the Collateral at Grantor's address shown above or at such other locations as are acceptable to Lender. Upon Lender's request, Grantor will deliver to Lender in form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor's operations, including without limitation the following: (1) all real property Grantor owns or is purchasing; (2) all real property Grantor is renting or leasing; (3) all storage facilities Grantor owns, rents, leases, or uses; and (4) all other properties where Collateral is or may be located.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 3** |

---

**Removal of the Collateral.** Except in the ordinary course of Grantor's business, Grantor shall not remove the Collateral from its existing location without Lender's prior written consent. To the extent that the Collateral consists of vehicles, or other titled property, Grantor shall not take or permit any action which would require application for certificates of title for the vehicles outside the State of Delaware, without Lender's prior written consent. Grantor shall, whenever requested, advise Lender of the exact location of the Collateral.

**Transactions Involving Collateral.** Except for inventory sold or accounts collected in the ordinary course of Grantor's business, or as otherwise provided for in this Agreement, Grantor shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral. Grantor shall not pledge, mortgage, encumber or otherwise permit the Collateral to be subject to any lien, security interest, encumbrance, or charge, other than the security interest provided for in this Agreement, without the prior written consent of Lender. This includes security interests even if junior in right to the security interests granted under this Agreement. Unless waived by Lender, all proceeds from any disposition of the Collateral (for whatever reason) shall be held in trust for Lender and shall not be commingled with any other funds; provided however, this requirement shall not constitute consent by Lender to any sale or other disposition. Upon receipt, Grantor shall immediately deliver any such proceeds to Lender.

**Repairs and Maintenance.** Grantor agrees to keep and maintain, and to cause others to keep and maintain, the Collateral in good order, repair and condition at all times while this Agreement remains in effect. Grantor further agrees to pay when due all claims for work done on, or services rendered or material furnished in connection with the Collateral so that no lien or encumbrance may ever attach to or be filed against the Collateral.

**Inspection of Collateral.** Lender and Lender's designated representatives and agents shall have the right at all reasonable times to examine and inspect the Collateral wherever located.

**Taxes, Assessments and Liens.** Grantor will pay when due all taxes, assessments and liens upon the Collateral, its use or operation, upon this Agreement, upon any promissory note or notes evidencing the Indebtedness, or upon any of the other Related Documents. Grantor may withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding to contest the obligation to pay and so long as Lender's interest in the Collateral is not jeopardized in Lender's sole opinion. If the Collateral is subjected to a lien which is not discharged within fifteen (15) days, Grantor shall deposit with Lender cash, a sufficient corporate surety bond or other security satisfactory to Lender in an amount adequate to provide for the discharge of the lien plus any interest, costs, reasonable attorneys' fees or other charges that could accrue as a result of foreclosure or sale of the Collateral. In any contest Grantor shall defend itself and Lender and shall satisfy any final adverse judgment before enforcement against the Collateral. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Grantor further agrees to furnish Lender with evidence that such taxes, assessments, and governmental and other charges have been paid in full and in a timely manner. Grantor may withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding to contest the obligation to pay and so long as Lender's interest in the Collateral is not jeopardized.

**Compliance with Governmental Requirements.** Grantor shall comply promptly with all laws, ordinances, rules and regulations of all governmental authorities, now or hereafter in effect, applicable to the ownership, production, disposition, or use of the Collateral, including all laws or regulations relating to the undue erosion of highly-erodible land or relating to the conversion of wetlands for the production of an agricultural product or commodity. Grantor may contest in good faith any such law, ordinance or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Lender's interest in the Collateral, in Lender's opinion, is not jeopardized.

**Hazardous Substances.** Grantor represents and warrants that the Collateral never has been, and never will be so long as this Agreement remains a lien on the Collateral, used in violation of any Environmental Laws or for the generation, manufacture, storage, transportation, treatment, disposal, release or threatened release of any Hazardous Substance. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Collateral for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any Environmental Laws, and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims and losses resulting from a breach of this provision of this Agreement. This obligation to indemnify and defend shall survive the payment of the Indebtedness and the satisfaction of this Agreement.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 4** |

---

**Maintenance of Casualty Insurance.** Grantor shall procure and maintain all risks insurance, including without limitation fire, theft and liability coverage together with such other insurance as Lender may require with respect to the Collateral, in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least thirty (30) days' prior written notice to Lender and not including any disclaimer of the insurer's liability for failure to give such a notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. In connection with all policies covering assets in which Lender holds or is offered a security interest, Grantor will provide Lender with such loss payable or other endorsements as Lender may require. If Grantor at any time fails to obtain or maintain any insurance as required under this Agreement, Lender may (but shall not be obligated to) obtain such insurance as Lender deems appropriate, including if Lender so chooses "single interest insurance," which will cover only Lender's interest in the Collateral.

**Application of Insurance Proceeds.** Grantor shall promptly notify Lender of any loss or damage to the Collateral if the estimated cost of repair or replacement exceeds Borrower must contact Lender whenever damage to collateral exceeds $2,000.00, whether or not such casualty or loss is covered by insurance. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. All proceeds of any insurance on the Collateral, including accrued proceeds thereon, shall be held by Lender as part of the Collateral. If Lender consents to repair or replacement of the damaged or destroyed Collateral, Lender shall, upon satisfactory proof of expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration. If Lender does not consent to repair or replacement of the Collateral, Lender shall retain a sufficient amount of the proceeds to pay all of the Indebtedness, and shall pay the balance to Grantor. Any proceeds which have not been disbursed within six (6) months after their receipt and which Grantor has not committed to the repair or restoration of the Collateral shall be used to prepay the Indebtedness.

**Insurance Reports.** Grantor, upon request of Lender, shall furnish to Lender reports on each existing policy of insurance showing such information as Lender may reasonably request including the following: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the property insured; (5) the then current value on the basis of which insurance has been obtained and the manner of determining that value; and (6) the expiration date of the policy. In addition, Grantor shall upon request by Lender (however not more often than annually) have an independent appraiser satisfactory to Lender determine, as applicable, the cash value or replacement cost of the Collateral.

**Financing Statements.** Grantor authorizes Lender to file a UCC financing statement, or alternatively, a copy of this Agreement to perfect Lender's security interest. At Lender's request, Grantor additionally agrees to sign all other documents that are necessary to perfect, protect, and continue Lender's security interest in the Property. Grantor will pay all filing fees, title transfer fees, and other fees and costs involved unless prohibited by law or unless Lender is required by law to pay such fees and costs. Grantor irrevocably appoints Lender to execute documents necessary to transfer title if there is a default. Lender may file a copy of this Agreement as a financing statement.

**GRANTOR'S RIGHT TO POSSESSION.** Until default, Grantor may have possession of the tangible personal property and beneficial use of all the Collateral and may use it in any lawful manner not inconsistent with this Agreement or the Related Documents, provided that Grantor's right to possession and beneficial use shall not apply to any Collateral where possession of the Collateral by Lender is required by law to perfect Lender's security interest in such Collateral. If Lender at any time has possession of any Collateral, whether before or after an Event of Default, Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if Lender takes such action for that purpose as Grantor shall request or as Lender, in Lender's sole discretion, shall deem appropriate under the circumstances, but failure to honor any request by Grantor shall not of itself be deemed to be a failure to exercise reasonable care. Lender shall not be required to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain any security interest given to secure the Indebtedness.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 5** |

---

**LENDER'S EXPENDITURES.** If any action or proceeding is commenced that would materially affect Lender's interest in the Collateral or if Grantor fails to comply with any provision of this Agreement or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Agreement or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Collateral and paying all costs for insuring, maintaining and preserving the Collateral. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Agreement also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon the occurrence of any Event of Default.

**DEFAULT.** Each of the following shall constitute an Event of Default under this Agreement:

**Payment Default.** Borrower fails to make any payment when due under the Indebtedness.

**Other Defaults.** Borrower or Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower or Grantor.

**Default in Favor of Third Parties.** Borrower or Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's or Grantor's property or ability to perform their respective obligations under this Agreement or any of the Related Documents.

**False Statements.** Any warranty, representation or statement made or furnished to Lender by Borrower or Grantor or on Borrower's or Grantor's behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

**Defective Collateralization.** This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 6** |

---

**Insolvency.** The dissolution of Grantor (regardless of whether election to continue is made), any member withdraws from the limited liability company, or any other termination of Borrower's or Grantor's existence as a going business or the death of any member, the insolvency of Borrower or Grantor, the appointment of a receiver for any part of Borrower's or Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower or Grantor.

**Creditor or Forfeiture Proceedings.** Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or Grantor or by any governmental agency against any collateral securing the Indebtedness. This includes a garnishment of any of Borrower's or Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower or Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower or Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

**Events Affecting Guarantor.** Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or guarantor, endorser, surety, or accommodation party dies or becomes incompetent or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

**Adverse Change.** A material adverse change occurs in Borrower's or Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired.

**Insecurity.** Lender in good faith believes itself insecure.

**RIGHTS AND REMEDIES ON DEFAULT.** If an Event of Default occurs under this Agreement, at any time thereafter, Lender shall have all the rights of a secured party under the Delaware Uniform Commercial Code. In addition and without limitation, Lender may exercise any one or more of the following rights and remedies:

**Accelerate Indebtedness.** Lender may declare the entire Indebtedness, including any prepayment penalty which Borrower would be required to pay, immediately due and payable, without notice of any kind to Borrower or Grantor.

**Assemble Collateral.** Lender may require Grantor to deliver to Lender all or any portion of the Collateral and any and all certificates of title and other documents relating to the Collateral. Lender may require Grantor to assemble the Collateral and make it available to Lender at a place to be designated by Lender. Lender also shall have full power to enter upon the property of Grantor to take possession of and remove the Collateral. If the Collateral contains other goods not covered by this Agreement at the time of repossession, Grantor agrees Lender may take such other goods, provided that Lender makes reasonable efforts to return them to Grantor after repossession.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 7** |

---

**Sell the Collateral.** Lender shall have full power to sell, lease, transfer, or otherwise deal with the Collateral or proceeds thereof in Lender's own name or that of Grantor. Lender may sell the Collateral at public auction or private sale. Unless the Collateral threatens to decline speedily in value or is of a type customarily sold on a recognized market, Lender will give Grantor, and other persons as required by law, reasonable notice of the time and place of any public sale, or the time after which any private sale or any other disposition of the Collateral is to be made. However, no notice need be provided to any person who, after Event of Default occurs, enters into and authenticates an agreement waiving that person's right to notification of sale. The requirements of reasonable notice shall be met if such notice is given at least ten (10) days before the time of the sale or disposition. All expenses relating to the disposition of the Collateral, including without limitation the expenses of retaking, holding, insuring, preparing for sale and selling the Collateral, shall become a part of the Indebtedness secured by this Agreement and shall be payable on demand, with interest at the Note rate from date of expenditure until repaid.

**Appoint Receiver.** Lender shall have the right to have a receiver appointed to take possession of all or any part of the Collateral, with the power to protect and preserve the Collateral, to operate the Collateral preceding foreclosure or sale, and to collect the rents from the Collateral and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Collateral exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver.

**Collect Revenues, Apply Accounts.** Lender, either itself or through a receiver, may collect the payments, rents, income, and revenues from the Collateral. Lender may at any time in Lender's discretion transfer any Collateral into Lender's own name or that of Lender's nominee and receive the payments, rents, income, and revenues therefrom and hold the same as security for the Indebtedness or apply it to payment of the Indebtedness in such order of preference as Lender may determine. Insofar as the Collateral consists of accounts, general intangibles, insurance policies, instruments, chattel paper, choses in action, or similar property, Lender may demand, collect, receipt for, settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as Lender may determine, whether or not Indebtedness or Collateral is then due. For these purposes, Lender may, on behalf of and in the name of Grantor, receive, open and dispose of mail addressed to Grantor; change any address to which mail and payments are to be sent; and endorse notes, checks, drafts, money orders, documents of title, instruments and items pertaining to payment, shipment, or storage of any Collateral. To facilitate collection, Lender may notify account debtors and obligors on any Collateral to make payments directly to Lender.

**Obtain Deficiency.** If Lender chooses to sell any or all of the Collateral, Lender may obtain a judgment against Borrower for any deficiency remaining on the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this Agreement. Borrower shall be liable for a deficiency even if the transaction described in this subsection is a sale of accounts or chattel paper.

**Other Rights and Remedies.** Lender shall have all the rights and remedies of a secured creditor under the provisions of the Uniform Commercial Code, as may be amended from time to time. In addition, Lender shall have and may exercise any or all other rights and remedies it may have available at law, in equity, or otherwise.

**Election of Remedies.** Except as may be prohibited by applicable law, all of Lender's rights and remedies, whether evidenced by this Agreement, the Related Documents, or by any other writing, shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Agreement, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies.

**MISCELLANEOUS PROVISIONS.** The following miscellaneous provisions are a part of this Agreement:

**Amendments**. This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 8** |

---

**Attorneys' Fees; Expenses.** Grantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's reasonable attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement, and Grantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's reasonable attorneys' fees and legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Lender may also recover from Grantor all court, alternative dispute resolution or other collection costs (including, without limitation, fees and charges of collection agencies) actually incurred by Lender.

**Caption Headings.** Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.

**Governing Law. With respect to procedural matters related to the perfection and enforcement of Lender's rights against the Collateral, this Agreement will be governed by federal law applicable to Lender and to the extent not preempted by federal law, the laws of the State of Delaware. In all other respects, this Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Michigan without regard to its conflicts of law provisions. However, if there ever is a question about whether any provision of this Agreement is valid or enforceable, the provision that is questioned will be governed by whichever state or federal law would find the provision to be valid and enforceable. The loan transaction that is evidenced by the Note and this Agreement has been applied for, considered, approved and made, and all necessary loan documents have been accepted by Lender in the State of Michigan.**

**Choice of Venue.** If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Berrien County, State of Michigan.

**Joint and Several Liability.** All obligations of Borrower and Grantor under this Agreement shall be joint and several, and all references to Grantor shall mean each and every Grantor, and all references to Borrower shall mean each and every Borrower. This means that each Borrower and Grantor signing below is responsible for all obligations in this Agreement. Where any one or more of the parties is a corporation, partnership, limited liability company or similar entity, it is not necessary for Lender to inquire into the powers of any of the officers, directors, partners, members, or other agents acting or purporting to act on the entity's behalf, and any obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Agreement.

**No Waiver by Lender.** Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

**Notices.** Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 9** |

---

**Power of Attorney.** Grantor hereby appoints Lender as Grantor's irrevocable attorney-in-fact for the purpose of executing any documents necessary to perfect, amend, or to continue the security interest granted in this Agreement or to demand termination of filings of other secured parties. Lender may at any time, and without further authorization from Grantor, file a carbon, photographic or other reproduction of any financing statement or of this Agreement for use as a financing statement. Grantor will reimburse Lender for all expenses for the perfection and the continuation of the perfection of Lender's security interest in the Collateral.

**Severability.** If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement.

**Successors and Assigns.** Subject to any limitations stated in this Agreement on transfer of Grantor's interest, this Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Collateral becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Agreement and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Agreement or liability under the Indebtedness.

**Survival of Representations and Warranties.** All representations, warranties, and agreements made by Grantor in this Agreement shall survive the execution and delivery of this Agreement, shall be continuing in nature, and shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full.

**Time is of the Essence.** Time is of the essence in the performance of this Agreement.

**Waive Jury. All parties to this Agreement hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party.**

**DEFINITIONS.** The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code:

**Agreement.** The word "Agreement" means this Commercial Security Agreement, as this Commercial Security Agreement may be amended or modified from time to time, together with all exhibits and schedules attached to this Commercial Security Agreement from time to time.

**Borrower.** The word "Borrower" means ELMET TECHNOLOGIES LLC and ELMET COLDWATER LLC and includes all co-signers and co-makers signing the Note and all their successors and assigns.

**Collateral.** The word "Collateral" means all of Grantor's right, title and interest in and to all the Collateral as described in the Collateral Description section of this Agreement.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 10** |

---

**Environmental Laws.** The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.

**Event of Default.** The words "Event of Default" mean any of the events of default set forth in this Agreement in the default section of this Agreement.

**Grantor.** The word "Grantor" means ELMET COLDWATER LLC.

**Guaranty.** The word "Guaranty" means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note.

**Hazardous Substances.** The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos.

**Indebtedness.** The word "Indebtedness" means the indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other indebtedness and costs and expenses for which Borrower is responsible under this Agreement or under any of the Related Documents. Specifically, without limitation, Indebtedness includes the future advances set forth in the Future Advances provision, together with all interest thereon and all amounts that may be indirectly secured by the Cross-Collateralization provision of this Agreement.

**Lender.** The word "Lender" means United Federal Credit Union, its successors and assigns.

**Note.** The word "Note" means the Note dated September 23, 2024 and executed by ELMET TECHNOLOGIES LLC and ELMET COLDWATER LLC in the principal amount of $1,575,000.00, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the note or credit agreement.

**Property.** The word "Property" means all of Grantor's right, title and interest in and to all the Property as described in the "Collateral Description" section of this Agreement.

**Related Documents**. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness.

**BORROWER AND GRANTOR HAVE READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT AND AGREE TO ITS TERMS. THIS AGREEMENT IS DATED SEPTEMBER 23, 2024.**

**THIS AGREEMENT IS DELIVERED UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.**

**GRANTOR:**

**ELMET COLDWATER LLC**

---

| | |
|:---|:---|
| **By:** | /s/ Derek S. Fox |
|  | **DEREK S. FOX, CFO of ELMET COLDWATER LLC** |

---

**BORROWER:**

**ELMET TECHNOLOGIES LLC**

---

| | |
|:---|:---|
| **By:** | /s/ Derek S. Fox |
|  | **DEREK S. FOX, CFO of ELMET TECHNOLOGIES LLC** |

---

**ELMET COLDWATER LLC**

---

| | |
|:---|:---|
| **By:** | /s/ Derek S. Fox |
|  | **DEREK S. FOX, CFO of ELMET COLDWATER LLC** |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** | &nbsp;&nbsp;**COMMERCIAL SECURITY AGREEMENT** |
| &nbsp;&nbsp;**Loan No: [\*\*]** | &nbsp;&nbsp;**(Continued)** | &nbsp;&nbsp;**Page 11** |

---

**LENDER:**

**UNITED FEDERAL CREDIT UNION**

---

| | |
|:---|:---|
| **X** | /s/ Jeff Hannan |
|  | **Jeff Hannan, Commercial Loan Officer** |

---

## Exhibit 10.12

**Exhibit 10.12**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

![](ea027036005_ex10-12img1.jpg)

**AMENDED AND RESTATED<br> CREDIT AGREEMENT**

**by and among**

**WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender, and**

**ELMET TECHNOLOGIES LLC, H.C. STARCK SOLUTIONS COLDWATER, LLC, H.C. STARCK SOLUTIONS EUCLID, LLC**

**and**

**THE OTHER BORROWERS THAT ARE PARTIES HERETO, as Borrowers**

**Dated as of November 6, 2023**

**<u>**TABLE OF CONTENTS**</u>**

---

| | | | |
|:---|:---|:---|:---|
|  | | | Page |
| 1. | DEFINITIONS AND CONSTRUCTION | DEFINITIONS AND CONSTRUCTION | 1 |
|  | 1.1 | Definitions | 1 |
|  | 1.2 | Accounting Terms | 44 |
|  | 1.3 | Code | 44 |
|  | 1.4 | Construction | 44 |
|  | 1.5 | Time References | 45 |
|  | 1.6 | Schedules and Exhibits | 45 |
|  | 1.7 | Divisions | 45 |
|  | 1.8 | Rates | 45 |
| 2. | LOANS AND TERMS OF PAYMENT | LOANS AND TERMS OF PAYMENT | 46 |
|  | 2.1 | Revolving Loans | 46 |
|  | 2.2 | Term Loan | 46 |
|  | 2.3 | Borrowing Procedures | 47 |
|  | 2.4 | Payments; Prepayments | 48 |
|  | 2.5 | Promise to Pay; Promissory Notes | 51 |
|  | 2.6 | Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations | 52 |
|  | 2.7 | Crediting Payments | 53 |
|  | 2.8 | Designated Account | 54 |
|  | 2.9 | Maintenance of Loan Account; Statements of Obligations | 54 |
|  | 2.10 | Fees | 54 |
|  | 2.11 | Letters of Credit | 55 |
|  | 2.12 | SOFR Option | 62 |
|  | 2.13 | Capital Requirements | 65 |
|  | 2.14 | Incremental Facilities | 66 |
|  | 2.15 | Joint and Several Liability of Borrowers | 67 |
|  | 2.16 | Capex Loans | 69 |

---

i

3. CONDITIONS; TERM OF AGREEMENT 71

3.1 Conditions Precedent to the Initial Extension of Credit 71

3.2 Conditions Precedent to all Extensions of Credit 71

3.3 Maturity 71

3.4 Effect of Maturity 71

3.5 Early Termination by Borrowers 72

3.6 Conditions Subsequent 72

4. REPRESENTATIONS AND WARRANTIES 72

4.1 Due Organization and Qualification; Subsidiaries 72

4.2 Due Authorization; No Conflict 73

4.3 Governmental Consents 73

4.4 Binding Obligations; Perfected Liens 73

4.5 Title to Assets; No Encumbrances 74

4.6 Litigation 74

4.7 Compliance with Laws 74

4.8 No Material Adverse Effect 74

4.9 Solvency 74

4.10 Employee Benefits 75

4.11 Environmental Condition 75

4.12 Complete Disclosure 75

4.13 Patriot Act 75

4.14 Indebtedness 75

4.15 Payment of Taxes 76

4.16 Margin Stock 76

4.17 Governmental Regulation 76

4.18 OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws 76

4.19 Employee and Labor Matters 77

4.20 [Reserved] 77

ii

4.21 Leases 77

4.22 Eligible Accounts 77

4.23 Eligible Inventory 77

4.24 [Reserved] 77

4.25 Location of Inventory and Equipment 77

4.26 Inventory Records 78

4.27 Hedge Agreements 78

4.28 Closing Date Transaction Documents 78

5. AFFIRMATIVE COVENANTS 78

5.1 Financial Statements, Reports, Certificates 78

5.2 Reporting 79

5.3 Existence 79

5.4 Maintenance of Properties 79

5.5 Taxes 79

5.6 Insurance 79

5.7 Inspection 80

5.8 Compliance with Laws 81

5.9 Environmental 81

5.10 Disclosure Updates 81

5.11 Formation or Acquisition of Subsidiaries 82

5.12 Further Assurances 82

5.13 Location of Inventory and Equipment; Chief Executive Office 83

5.14 OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws 83

5.15 Right of First Refusal 83

6. NEGATIVE COVENANTS 84

6.1 Indebtedness 84

6.2 Liens 84

6.3 Restrictions on Fundamental Changes 84

6.4 Disposal of Assets 84

iii

6.5 Nature of Business 84

6.6 Prepayments and Amendments 85

6.7 Restricted Payments 85

6.8 Accounting Methods 86

6.9 Investments 86

6.10 Transactions with Affiliates 86

6.11 Use of Proceeds 87

6.12 Limitation on Issuance of Equity Interests 87

6.13 Inventory or Equipment with Bailees 87

6.14 [Reserved] 87

6.15 Consignments 87

7. FINANCIAL COVENANTS 87

8. EVENTS OF DEFAULT 88

8.1 Payments 88

8.2 Covenants 88

8.3 Judgments 89

8.4 Voluntary Bankruptcy, etc 89

8.5 Involuntary Bankruptcy, etc 89

8.6 Default Under Other Agreements 89

8.7 Representations, etc 89

8.8 Guaranty 89

8.9 Security Documents 89

8.10 Loan Documents 89

8.11 Change of Control 90

9. RIGHTS AND REMEDIES 90

9.1 Rights and Remedies 90

9.2 Remedies Cumulative 91

iv

---

| | | | |
|:---|:---|:---|:---|
| 10. | WAIVERS; INDEMNIFICATION | WAIVERS; INDEMNIFICATION | 91.0 |
|  | 10.1 | Demand; Protest; etc | 91.0 |
|  | 10.2 | Lender's Liability for Collateral | 91.0 |
|  | 10.3 | Indemnification | 91.0 |
| 11. | NOTICES | NOTICES | 92.0 |
| 12. | CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION | CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION | 93.0 |
| 13. | ASSIGNMENTS; SUCCESSORS | ASSIGNMENTS; SUCCESSORS | 94.0 |
| 14. | AMENDMENTS; WAIVERS | AMENDMENTS; WAIVERS | 94.0 |
| 15. | TAXES | TAXES | 95.0 |
| 16. | GENERAL PROVISIONS | GENERAL PROVISIONS | 95.0 |
|  | 16.1 | Effectiveness | 95.0 |
|  | 16.2 | Section Headings | 95.0 |
|  | 16.3 | Interpretation | 95.0 |
|  | 16.4 | Severability of Provisions | 95.0 |
|  | 16.5 | Bank Product Providers | 96.0 |
|  | 16.6 | Debtor-Creditor Relationship | 96.0 |
|  | 16.7 | Counterparts; Electronic Execution | 96.0 |
|  | 16.8 | Revival and Reinstatement of Obligations; Certain Waivers | 97.0 |
|  | 16.9 | Confidentiality | 97.0 |
|  | 16.10 | Survival | 98.0 |
|  | 16.11 | Patriot Act; Due Diligence | 98.0 |
|  | 16.12 | Integration | 98.0 |
|  | 16.13 | Parent as Administrative Borrower for Borrowers | 99.0 |
|  | 16.14 | Acknowledgment Regarding Any Supported QFCs | 99.0 |
|  | 16.15 | Amendment and Restatement; Limited Waiver | 100.0 |

---

v

**<u>EXHIBITS AND SCHEDULES</u>**

---

| | |
|:---|:---|
| Exhibit B-1 | Form of Borrowing Base Certificate |
| Exhibit C-1 | Form of Compliance Certificate |
| Exhibit J-1 | Form of Joinder |
| Exhibit P-1 | Form of Perfection Certificate |
| Exhibit S-1 | Form of SOFR Notice |
| Schedule A-1 | Lender's Account |
| Schedule A-2 | Authorized Persons |
| Schedule A-3 | Approved Tier 1 Jurisdictions |
| Schedule C-1 | Commitments |
| Schedule D-1 | Designated Account |
| Schedule P-1 | Permitted Investments |
| Schedule P-2 | Permitted Liens |
| Schedule 3.1 | Conditions Precedent |
| Schedule 3.6 | Conditions Subsequent |
| Schedule 4.1(b) | Capitalization of Loan Parties |
| Schedule 4.1(c) | Capitalization of Loan Parties' Subsidiaries |
| Schedule 4.1(d) | Subscriptions, Options, Warrants, Calls |
| Schedule 4.6(b) | Litigation |
| Schedule 4.11 | Environmental Matters |
| Schedule 4.14 | Permitted Indebtedness |
| Schedule 4.19 | Employee and Labor Matters |
| Schedule 4.25 | Location of Inventory and Equipment |
| Schedule 5.1 | Financial Statements, Reports, Certificates |
| Schedule 5.2 | Collateral Reporting |
| Schedule 6.5 | Nature of Business |

---

vi

**<u>AMENDED AND RESTATED CREDIT AGREEMENT</u>**

**THIS AMENDED AND RESTATED CREDIT AGREEMENT**, is entered into as of November 6, 2023 by and among **WELLS FARGO BANK, NATIONAL ASSOCIATION**, a national banking association ("<u>Lender</u>"), **ELMET TECHNOLOGIES LLC**, a Maine limited liability company ("<u>Parent</u>"), **H.C. STARCK SOLUTIONS COLDWATER, LLC**, a Delaware limited liability company ("<u>Coldwater</u>"), **H.C. STARCK SOLUTIONS EUCLID, LLC**, a Delaware limited liability company ("<u>Euclid</u>"), and those additional entities that hereafter become parties hereto as Borrowers in accordance with the terms hereof by executing the form of Joinder attached hereto as <u>Exhibit J-1</u> (together with Parent, Coldwater and Euclid, each, a "<u>Borrower</u>" and individually and collectively, jointly and severally, the "<u>Borrowers</u>").

The parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. DEFINITIONS AND CONSTRUCTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **<u>Definitions</u>**. As used in this Agreement, the following terms shall have the following definitions:

"<u>Acceptable Appraisal</u>" means, with respect to an appraisal of Inventory or Equipment the most recent appraisal of such property received by Lender (a) from an appraisal company satisfactory to Lender, (b) the scope and methodology (including, to the extent relevant, any sampling procedure employed by such appraisal company) of which are satisfactory to Lender, and (c) the results of which are satisfactory to Lender, in each case, in Lender's Permitted Discretion.

"<u>Account</u>" means an account (as that term is defined in the Code).

"<u>Account Debtor</u>" means any Person who is obligated on an Account, chattel paper, or a general intangible.

"<u>Account Party</u>" has the meaning specified therefor in <u>Section 2.11(g)</u> of this Agreement.

"<u>Accounting Changes</u>" means changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with similar functions).

"<u>Acquired Indebtedness</u>" means Indebtedness of a Person whose assets or Equity Interests are acquired by a Loan Party or any of its Subsidiaries in a Permitted Acquisition; <u>provided</u>, that such Indebtedness (a) is either purchase money Indebtedness or a Capital Lease with respect to Equipment or mortgage financing with respect to Real Property, (b) was in existence prior to the date of such Permitted Acquisition, and (c) was not incurred in connection with, or in contemplation of, such Permitted Acquisition.

"<u>Acquisition</u>" means (a) the purchase or other acquisition by a Person or its Subsidiaries of all or substantially all of the assets of (or any division or business line of) any other Person, or (b) the purchase or other acquisition (whether by means of a merger, consolidation, or otherwise) by a Person or its Subsidiaries of all of the Equity Interests of any other Person.

"<u>Additional Documents</u>" has the meaning specified therefor in <u>Section 5.12</u> of this Agreement.

"<u>Administrative Borrower</u>" has the meaning specified therefor in <u>Section 16.13</u> of this Agreement.

"<u>Affiliate</u>" means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of Equity Interests, by contract, or otherwise; <u>provided</u>, that for purposes of the definition of Eligible Accounts and <u>Section 6.10</u> of this Agreement: (a) any Person which owns directly or indirectly 10% or more of the Equity Interests having ordinary voting power for the election of directors or other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person), shall be deemed an Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership in which a Person is a general partner shall be deemed an Affiliate of such Person.

"<u>Agreement</u>" means this Amended and Restated Credit Agreement, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

"<u>Announcements</u>" has the meaning specified therefor in <u>Section 1.7</u> of this Agreement.

"<u>Anti-Corruption Laws</u>" means the FCPA, the U.K. Bribery Act of 2010, as amended, and all other applicable laws and regulations or ordinances concerning or relating to bribery or corruption in any jurisdiction in which any Loan Party or any of its Subsidiaries or Affiliates is located or is doing business.

"<u>Anti-Money Laundering Laws</u>" means the applicable laws or regulations in any jurisdiction in which any Loan Party or any of its Subsidiaries or Affiliates is located or is doing business that relates to money laundering, any predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto.

"<u>Applicable Margin</u>" means (a) in the case of a Base Rate Loan which is a Term Loan, 1.75% (the "<u>Term Loan Base Rate Margin</u>"), (b) in the case of a SOFR Loan which is a Term Loan, 2.75% (the "<u>Term Loan SOFR Margin</u>"), (c) in the case of a Base Rate Loan which is a Capex Loan, 1.75% (the "<u>Capex Loan Base Rate Margin</u>"), (d) in the case of a SOFR Loan which is a Capex Loan, 2.75% (the "<u>Capex Loan SOFR Margin</u>"), and (e) as of any date of determination and in the case of Revolving Loans, the applicable margin set forth in the following table that corresponds to the Monthly Average Excess Availability for the most recently completed month; <u>provided</u>, that for the period from the Closing Date through and including March 31, 2024, the Applicable Margin shall be set at the margin in the row styled "Level II"; <u>provided</u>, <u>further</u>, that any time an Event of Default has occurred and is continuing, the Applicable Margin shall be set at the margin in the row styled "Level III":

---

| | | | |
|:---|:---|:---|:---|
| <u>Level</u> | <u>Monthly Average Excess Availability</u> | <u>Applicable Margin for Base Rate Loans which are Revolving Loans</u> (the "<u>Revolving Loan Base Rate Margin</u>") | <u>Applicable Margin for SOFR Loans which are Revolving Loans</u> (the "<u>Revolving Loan SOFR Margin</u>") |
| I | <u>></u> 60% of the Maximum Revolver Amount | 0.75% | 1.75% |
| II | < 60% of the Maximum Revolver Amount and <u>></u> 25% of the Maximum Revolver Amount | 1.00% | 2.00% |
| III | < 25% of the Maximum Revolver Amount | 1.25% | 2.25% |

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The Applicable Margin shall be re-determined as of the first day of each month. "<u>Applicable Unused Line Fee Percentage</u>" means 0.25%.

"<u>Application Event</u>" means the occurrence of (a) a failure by Borrowers to repay all of the Obligations in full on the Maturity Date, or (b) an Event of Default and the election by Lender to require that payments and proceeds of Collateral be applied pursuant to <u>Section 2.4(b)(ii)</u> of this Agreement.

"<u>Approved Tier 1 Jurisdiction</u>" means, collectively, each country or jurisdiction listed on <u>Schedule A-3</u> and each additional country or jurisdiction as Lender and Administrative Borrower may from time to time agree.

"<u>Approved Tier 1 Jurisdiction Sublimit</u>" means $3,000,000.

"<u>Authorized Person</u>" means any one of the individuals identified as an officer of a Borrower on <u>Schedule A-2</u> to this Agreement, or any other individual identified by Administrative Borrower as an authorized person and authenticated through Lender's electronic platform or portal in accordance with its procedures for such authentication.

"<u>Availability</u>" means, as of any date of determination, the amount that Borrowers are entitled to borrow as Revolving Loans under <u>Section 2.1</u> of this Agreement (after giving effect to the then outstanding Revolver Usage).

"<u>Available Increase Amount</u>" means, as of any date of determination, an amount equal to the result of (a) $10,000,000, *<u>minus</u>* (b) the aggregate principal amount of Increases to the Revolver Commitments previously made pursuant to <u>Section 2.15</u> of this Agreement.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (a) 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 pursuant to this Agreement or (b) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark pursuant to this Agreement, in each case, 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 <u>Section 2.12(d)(iii)(D)</u>.

"<u>Average Excess Availability</u>" means, with respect to any period, the sum of the aggregate amount of Excess Availability for each day in such period (as calculated by Lender as of the end of each respective day) divided by the number of days in such period.

"<u>Average Revolver Usage</u>" means, with respect to any period, the sum of the aggregate amount of Revolver Usage for each day in such period (calculated as of the end of each respective day) divided by the number of days in such period.

"<u>Bank Product</u>" means any one or more of the following financial products or accommodations extended to any Loan Party or any of its Subsidiaries by a Bank Product Provider: (a) credit cards (including commercial cards (including so-called "purchase cards", "procurement cards" or "p-cards")), (b) payment card processing services, (c) debit cards, (d) stored value cards, (e) Cash Management Services, or (f) transactions under Hedge Agreements.

"<u>Bank Product Agreements</u>" means those agreements entered into from time to time by any Loan Party or any of its Subsidiaries with a Bank Product Provider in connection with the obtaining of any of the Bank Products, including all Cash Management Documents.

"<u>Bank Product Collateralization</u>" means providing cash collateral (pursuant to documentation reasonably satisfactory to Lender) to be held by Lender for the benefit of the Bank Product Providers (other than the Hedge Providers) in an amount determined by Lender as sufficient to satisfy the reasonably estimated credit exposure, operational risk or processing risk with respect to the then existing Bank Product Obligations (other than Hedge Obligations).

"<u>Bank Product Obligations</u>" means (a) all obligations, liabilities, reimbursement obligations, fees, or expenses owing by each Loan Party and its Subsidiaries to any Bank Product Provider pursuant to or evidenced by a Bank Product Agreement and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and (b) all Hedge Obligations, and (c) all amounts that Lender is obligated to pay to a Bank Product Provider as a result of Lender purchasing participations from, or executing guarantees or indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank Product Provider to a Loan Party or its Subsidiaries.

"<u>Bank Product Provider</u>" means Lender or any of its Affiliates, including each of the foregoing in its capacity, if applicable, as a Hedge Provider.

"<u>Bank Product Reserves</u>" means, as of any date of determination, those reserves that Lender deems necessary or appropriate to establish (based upon the Bank Product Providers' determination of the liabilities and obligations of each Loan Party and its Subsidiaries in respect of Bank Product Obligations) in respect of Bank Products then provided or outstanding.

"<u>Bankruptcy Code</u>" means title 11 of the United States Code, as in effect from time to time.

"<u>Base Rate</u>" means, for any day, the greatest of (a) the Floor, (b) the Federal Funds Rate in effect on such day *<u>plus</u>* ½%, (c) Term SOFR for a one month tenor in effect on such day, *<u>plus</u>* 1%, <u>provided</u> that this clause (c) shall not be applicable during any period in which Term SOFR is unavailable or unascertainable, and (d) the rate of interest announced, from time to time, within Lender at its principal office in San Francisco as its "prime rate" in effect on such day, with the understanding that the "prime rate" is one of Lender's base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications as Lender may designate.

"<u>Base Rate Loan</u>" means each portion of the Revolving Loans, the Term Loan or the Capex Loans that bears interest at a rate determined by reference to the Base Rate.

"<u>Base Rate Margin</u>" means the Revolving Loan Base Rate Margin, the Term Loan Base Rate Margin or the Capex Loan Base Rate Margin, as applicable.

"<u>Base Rate Term SOFR Determination Day</u>" has the meaning specified therefor in the definition of "Term SOFR".

"<u>Benchmark</u>" means, initially, the Term SOFR Reference Rate; <u>provided</u> that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate 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 2.12(d)(iii)(A)</u>.

"<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 Lender and Administrative Borrower 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 for the then-current Benchmark for Dollar-denominated syndicated credit facilities 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 shall 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 for any applicable Available Tenor, 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 Lender and Administrative Borrower 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 all Available Tenors of such Benchmark (or such component 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;(b) in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has 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 any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 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 any Available Tenor of such Benchmark (or such component 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;(b) 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 of Governors, 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 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 any Available Tenor of such Benchmark (or such component 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) 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) announcing that 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 the then-current Benchmark has any Available Tenors, 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 90th 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 90 days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>" means the period (if any) (x) 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 2.12(d)(iii)</u> and (y) 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 2.12(d)(iii)</u>.

"<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>Benefit Plan</u>" means a "defined benefit plan" (as defined in Section 3(35) of ERISA) for which any Loan Party or any of its Subsidiaries or ERISA Affiliates has been an "employer" (as defined in Section 3(5) of ERISA) within the past six years.

"<u>BHC Act Affiliate</u>" of a Person means an "affiliate" (as such term is defined under and interpreted in accordance with, 12 U.S.C. 1841(k)) of such Person.

"<u>Board of Directors</u>" means, as to any Person, the board of directors (or comparable managers) of such Person, or any committee thereof duly authorized to act on behalf of the board of directors (or comparable managers).

"<u>Board of Governors</u>" means the Board of Governors of the Federal Reserve System of the United States (or any successor).

"<u>Borrower</u>" and "<u>Borrowers</u>" have the respective meanings specified therefor in the preamble to this Agreement.

"<u>Borrowing</u>" means a borrowing consisting of Revolving Loans, Capex Loans, or the Term Loan, as applicable, made by Lender.

"<u>Borrowing Base</u>" means, as of any date of determination, the result 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;(a) 85% of the amount of Eligible Accounts owing by non-Investment Grade Account Debtors located in the United States and Canada, *<u>less</u>* the amount, if any, of the Dilution Reserve, *<u>plus</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;(b) 90% of the amount of Eligible Accounts owing by Investment Grade Account Debtors located in the United States and Canada, *<u>less</u>* the amount, if any, of the Dilution Reserve, *<u>plus</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;(c) the lesser of (i) 85% of the amount of Eligible Accounts owing by Account Debtors located in an Approved Tier 1 Jurisdiction, *<u>less</u>* the amount, if any, of the Dilution Reserve, and (ii) the Approved Tier 1 Jurisdiction Sublimit, *<u>plus</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; (d) the lesser of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the sum 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the lesser of (1) the product of 70% multiplied by the value (calculated at the lower of (x) cost on a basis consistent with Borrowers' historical accounting practices (or cost based upon such applicable market index as determined by Lender in its Permitted Discretion) or (y) market on a basis consistent with Borrowers' historical accounting practices) of Eligible Finished Goods Inventory at such time, and (2) the product of 85% multiplied by the Net Recovery Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value (calculated at the lower of (x) cost on a basis consistent with Borrowers' historical accounting practices (or cost based upon such applicable market index as determined by Lender in its Permitted Discretion) or (y) market on a basis consistent with Borrowers' historical accounting practices) of Eligible Finished Goods Inventory (such determination may be made as to different categories of Eligible Finished Goods Inventory based upon the Net Recovery Percentage applicable to such categories) at such time, *<u>plus</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;(B) the lesser of (1) the product of 70% multiplied by the value (calculated at the lower of cost or market on a basis consistent with Borrowers' historical accounting practices) of Eligible Raw Materials Inventory at such time, and (2) the product of 85% multiplied by the Net Recovery Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value (calculated at the lower of cost or market on a basis consistent with Borrowers' historical accounting practices) of Eligible Raw Materials Inventory (such determination may be made as to different categories of Eligible Raw Materials Inventory based upon the Net Recovery Percentage applicable to such categories) at such time, *<u>plus</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;(C) the lesser of (1) the product of 70% multiplied by the value (calculated at the lower of cost or market on a basis consistent with Borrowers' historical accounting practices) of Eligible Scrap Inventory at such time, and (2) the product of 85% multiplied by the Net Recovery Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value (calculated at the lower of cost or market on a basis consistent with Borrowers' historical accounting practices) of Eligible Scrap Inventory (such determination may be made as to different categories of Eligible Scrap Inventory based upon the Net Recovery Percentage applicable to such categories) at such time, *<u>plus</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;(D) the lesser of (1) the lesser of (x) the product of 70% multiplied by the value (calculated at the lower of cost or market on a basis consistent with Borrowers' historical accounting practices) of Eligible Work-In-Process Inventory at such time, and (y) the product of 85% multiplied by the Net Recovery Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value (calculated at the lower of cost or market on a basis consistent with Borrowers' historical accounting practices) of Eligible Work-In-Process Inventory (such determination may be made as to different categories of Eligible Work-In-Process Inventory based upon the Net Recovery Percentage applicable to such categories) at such time, and (2) the Work-In-Process Sublimit, 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) the Inventory Sublimit, *<u>less</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;(e) the aggregate amount of Reserves, if any, established by Lender from time to time under <u>Section 2.1(c)</u> of this Agreement.

"<u>Borrowing Base Certificate</u>" means a certificate substantially in the form of Exhibit B-1 to this Agreement, which such form of Borrowing Base Certificate may be amended, restated, supplemented or otherwise modified from time to time (including without limitation, changes to the format thereof), as approved by Lender in Lender's Permitted Discretion.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day on which the Federal Reserve Bank of New York is closed.

"<u>Capex Loan Advance Period</u>" has the meaning specified therefor in <u>Section 2.16(a)</u> of this Agreement.

"<u>Capex Loan Base Rate Margin</u>" has the meaning set forth in the definition of Applicable Margin.

"<u>Capex Loan Commitment</u>" means Lender's Capex Loan Commitment as set forth beside Lender's name on <u>Schedule C-1</u> to this Agreement.

"<u>Capex Loan Limit</u>" means $2,000,000.

"<u>Capex Loan Request</u>" has the meaning specified therefor in <u>Section 2.16(d)(i)</u> of this Agreement.

"<u>Capex Loan SOFR Margin</u>" has the meaning set forth in the definition of Applicable Margin.

"<u>Capex Loans</u>" means the secured loans made by Lender to Borrowers after the Closing Date, as provided for in <u>Section 2.16</u> of the Agreement and shall be deemed and shall constitute the Capex Loans for all purposes of this Agreement and the other Loan Documents.

"<u>Capital Expenditures</u>" means, with respect to any Person for any period, the amount of all expenditures by such Person and its Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed, but excluding, without duplication (a) expenditures made during such period in connection with the replacement, substitution, or restoration of assets or properties pursuant to <u>Section 2.4(d)(iii)</u> of this Agreement, (b) with respect to the purchase price of assets that are purchased substantially contemporaneously with the trade-in of existing assets during such period, the amount that the gross amount of such purchase price is reduced by the credit granted by the seller of such assets for the assets being traded in at such time, and (c) expenditures made during such period to consummate one or more Permitted Acquisitions.

"<u>Capital Lease</u>" means a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP; <u>provided</u>, that if at any time an operating lease (or a lease or other arrangement to use property that would be an operating lease under GAAP as in effect on the Closing Date) is required to be recharacterized as a capital lease as a result of a change in GAAP after the Closing Date, then for all purposes hereof such lease shall continue to be treated as an operating lease and not a Capital Lease.

"<u>Capitalized Lease Obligation</u>" means that portion of the obligations under a Capital Lease that is required to be capitalized in accordance with GAAP.

"<u>Cash Equivalents</u>" means (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition thereof, (b) marketable direct obligations issued or fully guaranteed by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor's Rating Group ("<u>S&P</u>") or Moody's Investors Service, Inc. ("<u>Moody's</u>"), (c) commercial paper maturing no more than 270 days from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody's, (d) certificates of deposit, time deposits, overnight bank deposits or bankers' acceptances maturing within one year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof or the District of Columbia or any United States branch of a foreign bank having at the date of acquisition thereof combined capital and surplus of not less than $1,000,000,000, (e) Deposit Accounts maintained with (i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other bank organized under the laws of the United States or any state thereof so long as the full amount maintained with any such other bank is insured by the Federal Deposit Insurance Corporation, (f) repurchase obligations of any commercial bank satisfying the requirements of clause (d) of this definition or of any recognized securities dealer having combined capital and surplus of not less than $1,000,000,000, having a term of not more than seven days, with respect to securities satisfying the criteria in clauses (a) or (d) above, (g) debt securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any commercial bank satisfying the criteria described in clause (d) above, and (h) Investments in money market funds substantially all of whose assets are invested in the types of assets described in clauses (a) through (g) above.

"<u>Cash Management Documents</u>" means the agreements governing each of the Cash Management Services of Lender utilized by a Loan Party, which agreements shall currently include the Master Agreement for Treasury Management Services or other applicable treasury management services agreement, the "Acceptance of Services", the "Service Description" governing each such treasury management service used by a Loan Party, and all replacement or successor agreements which govern such Cash Management Services of Lender.

"<u>Cash Management Services</u>" means any cash management or related services including treasury, depository, return items, overdraft, controlled disbursement, merchant store value cards, e-payables services, electronic funds transfer, interstate depository network, automatic clearing house transfer (including the Automated Clearing House processing of electronic funds transfers through the direct Federal Reserve Fedline system) and other cash management arrangements.

"<u>CFC</u>" means a controlled foreign corporation (as that term is defined in the IRC) in which any Loan Party is a "United States shareholder" within the meaning of Section 951(b) of the IRC.

"<u>Change of Control</u>" means that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Permitted Holders shall (i) fail to own beneficially (within the meaning of Rule 13d-5 of the Exchange Act), directly or indirectly, in the aggregate Equity Interests representing at least a majority of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of Parent, or (ii) fail to have the right, directly or indirectly, by voting power, contract or otherwise, to elect or designate for election at least a majority of the Board of Directors of Parent,

&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) Parent fails to own and control, directly or indirectly, 100% of the Equity Interests of each other Loan 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;(c) a majority of the members of the Board of Directors of Parent do not constitute Continuing Directors.

"<u>Change in Law</u>" means the occurrence after the date of this Agreement of: (a) the adoption or effectiveness of any law, rule, regulation, judicial ruling, judgment or treaty, (b) any change in any law, rule, regulation, judicial ruling, judgment or treaty or in the administration, interpretation, implementation or application by any Governmental Authority of any law, rule, regulation, guideline or treaty, (c) any new, or adjustment to, requirements prescribed by the Board of Governors for "Eurocurrency Liabilities" (as defined in Regulation D of the Board of Governors), requirements imposed by the Federal Deposit Insurance Corporation, or similar requirements imposed by any domestic or foreign governmental authority or resulting from compliance by Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority and related in any manner to SOFR, the Term SOFR Reference Rate or Term SOFR, or (d) the making or issuance by any Governmental Authority of any request, rule, guideline or directive, whether or not having the force of law; <u>provided</u>, that notwithstanding anything in this Agreement to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, and (ii) all requests, rules, guidelines or directives concerning capital adequacy 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 shall, in each case, be deemed to be a "<u>Change in Law</u>," regardless of the date enacted, adopted or issued.

"<u>Citibank Documents</u>" means, collectively, all agreements, documents, guarantees and instruments at any time executed and/or delivered by Parent or any other Loan Party with, to or in favor of any of the Citibank Entities in connection with or related to the Citibank Supply Chain Finance Program, as all of the foregoing now exist or may hereafter be amended, restated, supplemented or otherwise modified from time to time.

"<u>Citibank Entities</u>" means, collectively, Citibank US and Citibank Europe.

"<u>Citibank Europe</u>" means Citibank Europe PLC, a corporation organized and existing under the laws of the Republic of Ireland.

"<u>Citibank Europe Letter Agreement</u>" means that certain letter agreement by and among Citibank Europe, Parent and Lender relating to the Citibank Supply Chain Finance Program, as amended, restated, supplemented or otherwise modified from time to time.

"<u>Citibank Letter Agreements</u>" means, collectively, the Citibank US Letter Agreement and the Citibank Europe Letter Agreement.

"<u>Citibank Supply Chain Finance Program</u>" means, individually and collectively, (a) the financing arrangement between Citibank US and Parent pursuant to which Citibank US may, at its option, purchase certain Accounts and related assets from Parent arising from the sales of goods or services to Praxair, and (b) the financing arrangement between Citibank Europe and Parent pursuant to which Citibank Europe may, at its option, purchase certain Accounts and related assets from Parent arising from the sales of goods or services to Philips.

"<u>Citibank US</u>" means Citibank, N.A., its branches and subsidiaries and affiliates.

"<u>Citibank US Letter Agreement</u>" means that certain letter agreement by and among Citibank US, Parent and Lender relating to the Citibank Supply Chain Finance Program, as amended, restated, supplemented or otherwise modified from time to time.

"<u>Closing Date</u>" means the date of the making of the initial Revolving Loan and the Term Loan (or other extension of credit) under this Agreement.

"<u>Closing Date Term Loan</u>" has the meaning specified therefor in <u>Section 2.2</u> of this Agreement.

"<u>Closing Date Transaction Documents</u>" means, collectively, (a) the Opus Acquisition Documents and (b) the Great Falls Mortgage Documents.

"<u>Closing Date Transactions</u>" means, collectively, (a) the Opus Acquisition and (b) the Great Falls Mortgage Transaction.

"<u>Code</u>" means the New York Uniform Commercial Code, as in effect from time to time.

"<u>Coldwater</u>" has the meaning specified therefor in the preamble to this Agreement.

"<u>Collateral</u>" means all assets and interests in assets and proceeds thereof now owned or hereafter acquired by any Loan Party or its Subsidiaries in or upon which a Lien is granted by such Person in favor of Lender under any of the Loan Documents.

"<u>Collateral Access Agreement</u>" means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or interests in any Loan Party's or its Subsidiaries' books and records, Equipment or Inventory, in each case, in form and substance reasonably satisfactory to Lender.

"<u>Collateral Assignment of Transition Services Agreement</u>" means that certain Collateral Assignment of Rights Under Transition Services Agreement, dated as of the Closing Date, by and between Parent and Lender and acknowledged by Opus ServicesCo, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

"<u>Commitment</u>" means, with respect to Lender, its Revolver Commitment, its Term Loan Commitment or its Capex Loan Commitment, as the context requires.

"<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>Compliance Certificate</u>" means a certificate substantially in the form of <u>Exhibit C-1</u> to this Agreement delivered by the chief financial officer or treasurer of Administrative Borrower to Lender.

"<u>Confidential Information</u>" has the meaning specified therefor in <u>Section 16.9(a)</u> of this Agreement.

"<u>Conforming Changes</u>" means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "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 2.12(b)(ii)</u> and other technical, administrative or operational matters) that Lender decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by Lender in a manner substantially consistent with market practice (or, if Lender decides that adoption of any portion of such market practice is not administratively feasible or if Lender determines that no market practice for the administration of any such rate exists, in such other manner of administration as Lender decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"<u>Continuing Director</u>" means (a) any member of the Board of Directors who was a director (or comparable manager) of Parent on the Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was approved, appointed or nominated for election to the Board of Directors by either Parent or a majority of the Continuing Directors.

"<u>Control Agreement</u>" means a control agreement, in form and substance reasonably satisfactory to Lender, executed and delivered by a Loan Party or one of its Subsidiaries, Lender, and the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account).

"<u>Copyright Security Agreement"</u> has the meaning specified therefor in the Guaranty and Security Agreement.

"<u>Covered Entity</u>" means 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) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(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;(b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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>" has the meaning set forth in <u>Section 16.14</u> of this Agreement.

"<u>Default</u>" means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of Default.

"<u>Default Right</u>" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"<u>Deposit Account</u>" means any deposit account (as that term is defined in the Code).

"<u>Designated Account</u>" means the Deposit Account of Administrative Borrower identified on <u>Schedule D-1</u> to this Agreement (or such other Deposit Account of Administrative Borrower located at Designated Account Bank that has been designated as such, in writing, by Borrowers to Lender).

"<u>Designated Account Bank</u>" has the meaning specified therefor in <u>Schedule D-1</u> to this Agreement (or such other bank that is located within the United States that has been designated as such, in writing, by Borrowers to Lender).

"<u>Dilution</u>" means, as of any date of determination, a percentage, based upon the experience of the immediately prior 12 months, that is the result of dividing the Dollar amount of (a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items with respect to Borrowers' Accounts during such period, by (b) Borrowers' billings with respect to Accounts during such period.

"<u>Dilution Reserve</u>" means, as of any date of determination, an amount sufficient to reduce the advance rate against Eligible Accounts by the extent to which Dilution is in excess of (a) 2.5% for Investment Grade Account Debtors and (b) 5.0% for non-Investment Grade Account Debtors.

"<u>Disqualified Equity Interests</u>" means any Equity Interests that, by their terms (or by the terms of any security or other Equity Interests into which they are convertible or for which they are exchangeable), or upon the happening of any event or condition (a) matures or are mandatorily redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), (b) are redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part, (c) provide for the scheduled payments of dividends in cash, or (d) are or become convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is 180 days after the Maturity Date.

"<u>Dollars</u>" or "<u>$</u>" means United States dollars.

"<u>Drawing Document</u>" means any Letter of Credit or other document presented for purposes of drawing under any Letter of Credit, including by electronic transmission such as SWIFT, electronic mail, facsimile or computer generated communication.

"<u>Earn-Outs</u>" means unsecured liabilities of a Loan Party arising under an agreement to make any deferred payment as a part of the Purchase Price for a Permitted Acquisition, including performance bonuses or consulting payments in any related services, employment or similar agreement, in an amount that is subject to or contingent upon the revenues, income, cash flow or profits (or the like) of the target of such Permitted Acquisition.

"<u>EBITDA</u>" means, with respect to any fiscal period and with respect to Parent and its Subsidiaries determined, in each case, on a consolidated basis in accordance with GAAP:

&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 consolidated net income (or loss), *<u>minus</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;(b) without duplication, the sum of the following amounts for such period to the extent included in determining consolidated net income (or loss) for 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; (i) unusual or non-recurring gains, 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) interest income, *<u>plus</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;(c) without duplication, the sum of the following amounts for such period to the extent deducted in determining consolidated net income (or loss) for 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; (i) non-cash unusual or non-recurring losses,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Interest Expense,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) income taxes, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) depreciation and amortization.

For the purposes of calculating EBITDA for any period of 12 consecutive months (each, a "<u>Reference Period</u>"), if at any time during such Reference Period (and after the Closing Date), any Loan Party or any of its Subsidiaries shall have made a Permitted Acquisition, EBITDA for such Reference Period shall be calculated after giving *pro forma* effect thereto (including *pro forma* adjustments arising out of events which are directly attributable to such Permitted Acquisition, are factually supportable, and are expected to have a continuing impact, in each case, determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Securities Act and as interpreted by the staff of the SEC) or in such other manner acceptable to Lender as if any such Permitted Acquisition or adjustment occurred on the first day of such Reference 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;(a) Accounts that the Account Debtor has failed to pay within 120 days of original invoice date or 60 days of due 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;(b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,

&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) Accounts with selling terms of more than 90 days,

&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) Accounts with respect to which the Account Debtor is an Affiliate of any Borrower or an employee or agent of any Borrower or any Affiliate of any 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;(e) Accounts (i) arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional, or (ii) with respect to which the payment terms are "C.O.D.", cash on delivery or other similar 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; (f) Accounts that are not payable in Dollars,

&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) Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in the United States or Canada, (ii) is not organized under the laws of the United States or Canada or any state or province thereof, (iii) is not located in an Approved Tier 1 Jurisdiction or (iv) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (A) the Account is supported by an irrevocable letter of credit reasonably satisfactory to Lender (as to form, substance, and issuer or domestic confirming bank) that has been delivered to Lender and, if requested by Lender, is directly drawable by Lender, or (B) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, reasonably satisfactory 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;(h) Accounts with an aggregate value not to exceed $200,000 with respect to which the Account Debtor is either (i) the United States or any department, agency, or instrumentality of the United States (exclusive, however, of Accounts with respect to which Borrowers have complied, to the reasonable satisfaction of Lender, with the Assignment of Claims Act, 31 USC §3727), or (ii) any state of the United States or any other 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;(i) Accounts with respect to which the Account Debtor is a creditor of a Borrower, has or has asserted a right of recoupment or setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such claim, right of recoupment or setoff, or dispute,

&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) Accounts owing by (i) an Account Debtor (other than GE Healthcare and its Affiliates so long as their corporate family rating is Investment Grade) whose Eligible Accounts owing to Borrowers exceed 15% (such percentage, as applied to a particular Account Debtor, being subject to reduction by Lender in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible Accounts, to the extent of the obligations owing by such Account Debtor in excess of such percentage, and (ii) GE Healthcare and its Affiliates so long as their corporate family rating is Investment Grade whose Eligible Accounts owing to Borrowers exceed 30% (such percentage, as applied to GE Healthcare and its Affiliates, being subject to reduction by Lender in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible Accounts, to the extent of the obligations owing by such Account Debtor in excess of such percentage; <u>provided</u>, that in each case under this clause (j), the amount of Eligible Accounts that are excluded because they exceed the foregoing percentage shall be determined by Lender based on all of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit,

&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) Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or as to which any Borrower has received notice of an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor,

&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) Accounts, the collection of which, Lender, in its Permitted Discretion, believes to be doubtful, including by reason of the Account Debtor's financial condition,

&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) Accounts that are not subject to a valid and perfected first priority Lender's Lien,

&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) Accounts with respect to which (i) the goods giving rise to such Account have not been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor,

&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) Accounts with respect to which the Account Debtor is a Sanctioned Person or Sanctioned 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;(p) Accounts (i) that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by the applicable Borrower of the subject contract for goods or services, or (ii) that represent credit card sales,

&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) Accounts owned by a Person that is joined to this Agreement as a Borrower pursuant to the provisions of this Agreement, until the completion of a field examination with respect to such Accounts, in each case, satisfactory to Lender in its Permitted Discretion, 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) Accounts owned by a target acquired in connection with a Permitted Acquisition or Permitted Investment, or Accounts owned by a Person that is joined to this Agreement as a Borrower pursuant to the provisions of this Agreement, until the completion of a field examination with respect to such Accounts, in each case, satisfactory to Lender in its Permitted Discretion.

Notwithstanding anything to the contrary contained herein, the maximum amount of Revolving Loans made to Borrowers in respect of the Philips Accounts and the Praxair Accounts shall not exceed, at any one time outstanding, $500,000 in the aggregate.

"<u>Eligible Closing Date M&E</u>" means the M&E of Borrowers satisfactory to Lender in its Permitted Discretion and described in each of those certain appraisals dated as of July 24, 2023 and January 10, 2023 and performed by Hilco Appraisal Services LLC against which the Term Loan is predicated.

"<u>Eligible Finished Goods Inventory</u>" means Inventory that qualifies as Eligible Inventory and consists of first quality finished goods held for sale in the ordinary course of Borrowers' business.

"<u>Eligible Inventory</u>" means Inventory of a Borrower, that complies with each of the representations and warranties respecting Eligible Inventory made in the Loan Documents, and that is not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; <u>provided</u>, that such criteria may be revised from time to time by Lender in Lender's Permitted Discretion to address the results of any information with respect to the Borrowers' business or assets of which Lender becomes aware after the Closing Date, including any field examination or appraisal performed or received by Lender from time to time after the Closing Date. In determining the amount to be so included, Inventory shall be valued at the lower of cost or market on a basis consistent with Borrowers' historical accounting practices. An item of Inventory shall not be included in Eligible Inventory if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) a Borrower does not have good, valid, and marketable title 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) a Borrower does not have actual and exclusive possession thereof (either directly or through a bailee or agent of a Borrower), including as a result of the lease thereof by a 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;(c) it is not located at one of the locations in the continental United States set forth on <u>Schedule 4.25</u> to this Agreement (as such <u>Schedule 4.25</u> may be amended from time to time in accordance with <u>Section 5.13</u>) (or in-transit from one such location to another such location),

&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) it is stored at locations holding less than $100,000 of the aggregate value of such Borrower's Inventory,

&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) it is in-transit to or from a location of a Borrower (other than in-transit from one location set forth on <u>Schedule 4.25</u> to this Agreement to another location set forth on <u>Schedule 4.25</u> to this Agreement (as such <u>Schedule 4.25</u> may be amended from time to time in accordance with <u>Section 5.13</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;(f) it is located on real property leased by a Borrower or in a contract warehouse or with a bailee, in each case, unless either (i) it is subject to a Collateral Access Agreement executed by the lessor or warehouseman, as the case may be, and it is segregated or otherwise separately identifiable from goods of others, if any, stored on the premises, or (ii) Lender has established a Landlord Reserve with respect to such location,

&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) it is the subject of a bill of lading or other document of 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; (h) it is not subject to a valid and perfected first priority Lender's Lien,

&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) it consists of goods returned or rejected by a Borrower's customers,

&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) it consists of goods that are obsolete, slow moving, spoiled or are otherwise past the stated expiration, "sell-by" or "use by" date applicable thereto, restrictive or custom items or otherwise is manufactured in accordance with customer-specific requirements or goods that constitute spare parts, packaging and shipping materials, supplies used or consumed in Borrowers' business, bill and hold goods, defective goods, "seconds," or Inventory acquired on consignment,

&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) it is subject to third party intellectual property, licensing or other proprietary rights, unless Lender is satisfied that such Inventory can be freely sold by Lender on and after the occurrence of an Event of Default despite such third party rights, 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) it was acquired in connection with a Permitted Acquisition or Permitted Investment, or such Inventory is owned by a Person that is joined to this Agreement as a Borrower pursuant to the provisions of this Agreement, until the completion of an Acceptable Appraisal of such Inventory and the completion of a field examination with respect to such Inventory that is satisfactory to Lender in its Permitted Discretion.

"<u>Eligible New M&E</u>" means any M&E acquired by a Borrower on or after the Closing Date which is in good order, repair, operating and marketable condition (ordinary wear and tear excepted), and that is not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; <u>provided</u>, that such criteria may be revised from time to time by Lender in Lender's Permitted Discretion to address the results of any due diligence information with respect to the Borrowers' business or assets of which Lender becomes aware after the Closing Date, including any field examination or appraisal performed or received by Lender from time to time after the Closing Date. An item of M&E shall not be included in Eligible M&E if:

&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) it is not subject to a valid and perfected first priority Lender's Lien,

&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) a Borrower does not have good, valid, and marketable title 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;(c) a Borrower does not have actual and exclusive possession thereof (either directly or through a bailee or agent of a Borrower), including as a result of the lease thereof by a 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) it is not located at one of the locations in the continental United States set forth on <u>Schedule 4.25</u> to this Agreement (or in-transit from one such location to another such location) (as such <u>Schedule 4.25</u> may be amended from time to time in accordance with <u>Section 5.13</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;(e) it is in-transit to or from a location of a Borrower (other than in-transit from one location set forth on <u>Schedule 4.25</u> to this Agreement to another location set forth on <u>Schedule 4.25</u> to this Agreement) (as such <u>Schedule 4.25</u> may be amended from time to time in accordance with <u>Section 5.13</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;(f) it is "subject to" (within the meaning of Section 9-311 of the Code) any certificate of title (or comparable) statute (unless Lender has a first priority, perfected Lien under such statute and Lender has possession and custody of such 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;(g) it does not meet, or is not under repair or held for repair for the purpose of meeting, in each case in all material respects, all applicable safety or regulatory requirements applicable to it by law for the use for which it is intended or for which it is being used,

&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) it is not used or usable in the ordinary course of the Borrowers' business due to a damaged or inoperable condition (other than M&E under repair or held for repair for 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;(i) it does not meet, or is not under repair or held for repair for the purpose of meeting, in each case in all material respects, all applicable requirements of all motor vehicle laws or other statutes and regulations established by any Governmental Authority then applicable to such M&E, or is subject to any licensing or similar 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;(j) it is located on real property leased by a Borrower or in a contract warehouse, in each case, unless either (i) it is subject to a Collateral Access Agreement executed by the lessor or warehouseman, as the case may be, and unless it is segregated or otherwise separately identifiable from equipment of others, if any, stored on the premises, or (ii) Lender has established a Landlord Reserve with respect to such location,

&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) it is not covered by "all risk" hazard insurance for an amount equal to its replacement cost,

&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) it consists of computer hardware, software, tooling, or molds, 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) its use or operation requires proprietary software that is not freely assignable to Lender.

"<u>Eligible Raw Material Inventory</u>" means Inventory that qualifies as Eligible Inventory and consists of goods that are first quality raw materials.

"<u>Eligible Scrap Inventory</u>" means Inventory that qualifies as Eligible Inventory and consists of excess molybdenum and tungsten left over after goods have been manufactured.

"<u>Eligible Work-in-Process Inventory</u>" means Inventory that qualifies as Eligible Inventory and consists of goods that are first quality work-in-process; <u>provided</u>, that anything to the contrary contained herein notwithstanding, the value of such Inventory shall not include the value of any labor or other services rendered to produce such Inventory.

"<u>Environmental Action</u>" means any written complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter, or other written communication from any Governmental Authority, or any third party involving violations of Environmental Laws or releases of Hazardous Materials (a) from any assets, properties, or businesses of any Loan Party, any Subsidiary of any Loan Party, or any of their predecessors in interest, (b) from adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous Materials generated by any Loan Party, any Subsidiary of any Loan Party, or any of their predecessors in interest.

"<u>Environmental Law</u>" means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, in each case, to the extent binding on any Loan Party or its Subsidiaries, relating to the environment, the effect of the environment on employee health, or Hazardous Materials, in each case as amended from time to time.

"<u>Environmental Liabilities</u>" means all liabilities, monetary obligations, losses, damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or demand, or Remedial Action required, by any Governmental Authority or any third party, and which relate to any Environmental Action.

"<u>Environmental Lien</u>" means any Lien in favor of any Governmental Authority for Environmental Liabilities.

"<u>Equipment</u>" means equipment (as that term is defined in the Code).

"<u>Equity Interests</u>" means, with respect to a Person, all of the shares, options, warrants, interests, participations, or other equivalents (regardless of how designated) of or in such Person, whether voting or nonvoting, including capital stock (or other ownership or profit interests or units), preferred stock, or any other "equity security" (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act).

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto.

"<u>ERISA Affiliate</u>" means (a) any Person subject to ERISA whose employees are treated as employed by the same employer as the employees of any Loan Party or its Subsidiaries under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer as the employees of any Loan Party or its Subsidiaries under IRC Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA that is a member of an affiliated service group of which any Loan Party or any of its Subsidiaries is a member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that is a party to an arrangement with any Loan Party or any of its Subsidiaries and whose employees are aggregated with the employees of such Loan Party or its Subsidiaries under IRC Section 414(o).

"<u>Euclid</u>" has the meaning specified therefor in the preamble to this Agreement.

"<u>Event of Default</u>" has the meaning specified therefor in <u>Section 8</u> of this Agreement.

"<u>Excess Availability</u>" means, as of any date of determination, the amount equal to Availability *<u>minus</u>* the aggregate amount, if any, of all trade payables of the Loan Parties and their Subsidiaries aged in excess of historical levels with respect thereto and all book overdrafts of the Loan Parties and their Subsidiaries in excess of historical practices with respect thereto, in each case as determined by Lender in its Permitted Discretion.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as in effect from time to time.

"<u>Excluded Swap Obligation</u>" means, with respect to any Loan Party, any Swap Obligation if, and to the extent that, all or a portion of the guaranty of such Loan Party of (including by virtue of the joint and several liability provisions of <u>Section 2.15</u>), or the grant by such Loan Party of a security interest to secure, such Swap Obligation (or any guaranty thereof) 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) by virtue of such Loan Party's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act and the regulations thereunder at the time the guaranty of such Loan Party or the grant of such security interest becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guaranty or security interest is or becomes illegal.

"<u>Existing Borrower</u>" means Parent.

"<u>Existing Capex Loans</u>" means the "Capex Loans", as defined in the Existing Credit Agreement.

"<u>Existing Closing Date</u>" means October 15, 2018.

"<u>Existing Guarantors</u>" means each Person party to the Existing Credit Agreement and the other Existing Loan Documents as a "Guarantor".

"<u>Existing Credit Agreement</u>" means the Credit Agreement, dated as of the Existing Closing Date, between Existing Borrower and Lender, as in effect on the Closing Date.

"<u>Existing Loan Documents</u>" means the "Loan Documents", as defined in the Existing Credit Agreement.

"<u>Existing Obligations</u>" means the "Obligations", as defined in the Existing Credit Agreement.

"<u>Existing Term Loan</u>" means the "Term Loan", as defined in the Existing Credit Agreement.

"<u>Extraordinary Advances</u>" has the meaning specified therefor in <u>Section 2.3(c)(ii)</u> of this Agreement.

"<u>Extraordinary Receipts</u>" means (a) so long as no Event of Default has occurred and is continuing, proceeds of judgments, proceeds of settlements, or other consideration of any kind received in connection with any cause of action or claim, and (b) if an Event of Default has occurred and is continuing, any payments received by any Loan Party or any of its Subsidiaries not in the ordinary course of business (and not consisting of proceeds described in <u>Section 2.4(d)(iii)</u> of this Agreement) consisting of (i) proceeds of judgments, proceeds of settlements, or other consideration of any kind received in connection with any cause of action or claim (and not consisting of proceeds described in <u>Section 2.4(d)(iii)</u> of this Agreement, (ii) indemnity payments (other than to the extent such indemnity payments are immediately payable to a Person that is not an Affiliate of any Loan Party or any of its Subsidiaries, and (iii) any purchase price adjustment received in connection with any purchase agreement.

"<u>FCPA</u>" means the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.

"<u>Federal Funds Rate</u>" means, for any period, a fluctuating interest rate *per annum* equal to, for each day during such period, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Lender from three Federal funds brokers of recognized standing selected by it (and, if any such rate is below zero, then the rate determined pursuant to this definition shall be deemed to be zero).

"<u>Fixed Charge Coverage Ratio</u>" means, with respect to any fiscal period and with respect to Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP, the ratio of (a) EBITDA for such period *<u>minus</u>* Unfinanced Capital Expenditures made (to the extent not already incurred in a prior period) or incurred during such period, to (b) Fixed Charges for such period.

For the purposes of calculating Fixed Charge Coverage Ratio (i) for any Reference Period, if at any time during such Reference Period (and after the Closing Date), any Loan Party or any of its Subsidiaries shall have made a Permitted Acquisition, Fixed Charges and Unfinanced Capital Expenditures for such Reference Period shall be calculated after giving *pro forma* effect thereto or in such other manner acceptable to Lender as if any such Permitted Acquisition occurred on the first day of such Reference Period, and (ii) for any period prior to the first anniversary of the Closing Date, each of the items set forth in the definition of Fixed Charges shall be determined on an annualized basis in a manner reasonably satisfactory to Lender.

"<u>Fixed Charges</u>" means, with respect to any fiscal period and with respect to Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP, the sum, without duplication, of (a) Interest Expense required to be paid (other than interest paid-in-kind, amortization of financing fees, and other non-cash Interest Expense) during such period, (b) scheduled principal payments in respect of the Term Loan, the Capex Loans and all other Indebtedness that are required to be paid during such period, (c) all federal, state, and local income taxes required to be paid during such period, (d) all directors, management, consulting, monitoring and advisory fees paid to the Managers or their respective Affiliates during such period, (e) all Restricted Payments paid (whether in cash or other property, other than common Equity Interests) during such period, and (f) to the extent not otherwise deducted from EBITDA for such period, all payments required to be made during such period in respect of any funding deficiency or funding shortfall with respect to any Pension Plan or for any Withdrawal Liability.

"<u>Flood Laws</u>" means the National Flood Insurance Act of 1968, Flood Disaster Protection Act of 1973, and related laws, rules and regulations, including any amendments or successor provisions.

"<u>Floor</u>" means a rate of interest equal to 0%.

"<u>Forced Liquidation Value</u>" means, as of any date of determination, with respect to Eligible Closing Date M&E or Eligible New M&E of any Person (as applicable), the value of such Eligible Closing Date M&E or Eligible New M&E (as applicable) that is estimated to be recoverable in a forced liquidation of such Eligible Closing Date M&E or Eligible New M&E (as applicable), net of all associated costs and expenses of such liquidation, as determined based upon the most recent Acceptable Appraisal of M&E; <u>provided</u>, that if such Acceptable Appraisal does not provide the costs and expenses of such liquidation on an item by item basis, then costs and expenses of liquidation for each item of Eligible Closing Date M&E or Eligible New M&E (as applicable) will be such amount as determined by Lender in its Permitted Discretion.

"<u>Funding Date</u>" means the date on which a Borrowing occurs.

"<u>Funding Losses</u>" has the meaning specified therefor in <u>Section 2.12(b)(ii)</u> of this Agreement.

"<u>GAAP</u>" means generally accepted accounting principles as in effect from time to time in the United States, consistently applied.

"<u>Governing Documents</u>" means, with respect to any Person, the certificate or articles of incorporation, by-laws, or other organizational documents of such Person.

"<u>Governmental Authority</u>" means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, county, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government (including any supra-national bodies such as the European Union or the European Central Bank).

<u>"Great Falls</u>" means Great Falls Property, LLC, a Maine limited liability company.

"<u>Great Falls Mortgage Agreements</u>" means, collectively, (a) that certain Mortgage dated on the Closing Date by Coldwater, as mortgagor, in favor of Great Falls, as mortgagee, including all exhibits and schedules thereto, with respect to the Great Falls Real Property, (b) that certain Mortgage dated on the Closing Date by Euclid, as mortgagor, in favor of Great Falls, as mortgagee, including all exhibits and schedules thereto, with respect to the Great Falls Real Property, (c) that certain Assignment of Rents and Leases dated on the Closing Date by Coldwater, as assignor, in favor of Great Falls, as assignee, including all exhibits and schedules thereto, with respect to the Great Falls Real Property, and (d) that certain Assignment of Rents and Leases dated on the Closing Date by Euclid, as assignor, in favor of Great Falls, as assignee, including all exhibits and schedules thereto, with respect to the Great Falls Real Property, in each case, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms hereof.

"<u>Great Falls Mortgage Documents</u>" means, collectively, (a) the Great Falls Mortgage Agreements, (b) the Great Falls Mortgage Note and (c) all of the other agreements, documents and instruments executed and/or delivered in connection therewith, in each case, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms hereof.

"<u>Great Falls Mortgage Note</u>" means the Secured Promissory Note dated on the Closing Date in the original principal amount of $20,000,000 made by Borrowers in favor of Great Falls, as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms hereof.

"<u>Great Falls Mortgage Transaction</u>" means mortgages executed and delivered by the H.C. Starck Borrowers of the Great Falls Real Property pursuant to the terms of the Great Falls Mortgage Documents on the terms and conditions set forth therein, for secured amount of not greater than

$20,000,000, plus interest and costs thereunder.

"<u>Great Falls Real Property</u>" means the Real Property owned by the H.C. Starck Borrowers and situated in (a) the Township of Coldwater, Branch County, Michigan, and (b) the City of Euclid, Cuyahoga County, Ohio, in each case, as more fully described in the Great Falls Mortgage Agreements.

"<u>Great Falls Subordination Agreement</u>" means that certain Subordination Agreement, dated as of the Closing Date, by and among Great Falls, Lender and the Borrowers, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

"<u>Guarantor</u>" means (a) each Person that guaranties all or a portion of the Obligations, including any Person that is a "Guarantor" under the Guaranty and Security Agreement, and (b) each other Person that becomes a guarantor after the Closing Date pursuant to <u>Section 5.11</u> of this Agreement.

"<u>Guaranty and Security Agreement</u>" means the Amended and Restated Guaranty and Security agreement, dated as of the Closing Date, executed and delivered by each of the Loan Parties to Lender, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.

"<u>Hard Costs</u>" means, with respect to the purchase by any Borrower of an item of Eligible New M&E, the net cash amount actually paid to acquire title to such item, net of all incentives, trade in allowances, discounts and rebates, and exclusive of freight, delivery charges, installation costs and charges, software costs, charges and fees, warranty costs, taxes, insurance and other incidental costs or expenses and all indirect costs or expenses of any kind.

"<u>Hazardous Materials</u>" means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws or regulations as "hazardous substances," "hazardous materials," "hazardous wastes," "toxic substances," or any other formulation intended to define, list, or classify substances by reason of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or "EP toxicity", (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, 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 or any radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million.

"<u>H.C. Starck Borrowers</u>" means, collectively, Euclid and Coldwater.

"<u>Hedge Agreement</u>" means a "swap agreement" as that term is defined in Section 101(53B)(A) of the Bankruptcy Code.

"<u>Hedge Obligations</u>" means any and all obligations or liabilities, whether absolute or contingent, due or to become due, now existing or hereafter arising, of each Loan Party and its Subsidiaries arising under, owing pursuant to, or existing in respect of Hedge Agreements entered into with one or more of the Hedge Providers.

"<u>Hedge Provider</u>" means Lender or any of its Affiliates.

"<u>Increase</u>" has the meaning specified therefor in <u>Section 2.15</u>.

"<u>Increased Reporting Event</u>" means (a) if, at any time, Excess Availability is less than 10% of the Maximum Revolver Amount or (b) if, at any time, (i) Excess Availability is less than 15% of the Maximum Revolver Amount and (ii) Fixed Charge Coverage Ratio, determined for the most recently ended 12 consecutive fiscal months for which Lender has received financial statements, is less than or equal to

1.40 to 1.00.

"<u>Increased Reporting Period</u>" means any period commencing after the occurrence of an Increased Reporting Event and continuing until the date when no Increased Reporting Event has occurred for any 60 consecutive day period.

"<u>Indebtedness</u>" as to any Person means (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, or other financial products, (c) all obligations of such Person as a lessee under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of such Person, irrespective of whether such obligation or liability is assumed, (e) all obligations of such Person to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary course of business and repayable in accordance with customary trade practices and, for the avoidance of doubt, other than royalty payments payable in the ordinary course of business in respect of non-exclusive licenses) and any earn-out or similar obligations, (f) all monetary obligations of such Person owing under Hedge Agreements (which amount shall be calculated based on the amount that would be payable by such Person if the Hedge Agreement were terminated on the date of determination), (g) any Disqualified Equity Interests of such Person, and (h) any obligation of such Person guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that constitutes Indebtedness under any of clauses (a) through (g) above. For purposes of this definition, (i) the amount of any Indebtedness represented by a guaranty or other similar instrument shall be the lesser of the principal amount of the obligations guaranteed and still outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Indebtedness, and (ii) the amount of any Indebtedness which is limited or is non-recourse to a Person or for which recourse is limited to an identified asset shall be valued at the lesser of (A) if applicable, the limited amount of such obligations, and (B) if applicable, the fair market value of such assets securing such obligation.

"<u>Indemnified Liabilities</u>" has the meaning specified therefor in <u>Section 10.3</u> of this Agreement.

"<u>Indemnified Person</u>" has the meaning specified therefor in <u>Section 10.3</u> of this Agreement.

"<u>Insolvency Proceeding</u>" means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.

"<u>Intercompany Subordination Agreement</u>" means an intercompany subordination agreement executed and delivered by each Loan Party, each of its Subsidiaries, and Lender, the form and substance of which is reasonably satisfactory to Lender.

"<u>Interest Expense</u>" means, for any period, the aggregate of the interest expense of Borrowers for such period, determined on a consolidated basis in accordance with GAAP.

"<u>Interest Period</u>" means, with respect to any SOFR Loan, a period commencing on the date of the making of such SOFR Loan (or the continuation of a SOFR Loan or the conversion of a Base Rate Loan to a SOFR Loan) and ending one or three months thereafter; <u>provided</u>, that (a) interest shall accrue at the applicable rate based upon Term SOFR from and including the first day of each Interest Period to, but excluding, the day on which any Interest Period expires, (b) any Interest Period that would end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day, (c) with respect to an Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period), the Interest Period shall end on the last Business Day of the calendar month that is one or three months after the date on which the Interest Period began, as applicable, (d) Borrowers may not elect an Interest Period which will end after the Maturity Date and (e) no tenor that has been removed from this definition pursuant to <u>Section 2.12(d)(iii)(D)</u> shall be available for specification in any SOFR Notice or conversion or continuation notice.

"<u>Inventory</u>" means inventory (as that term is defined in the Code).

"<u>Inventory Reserves</u>" means, as of any date of determination, (a) Landlord Reserves in respect of Inventory, and (b) those reserves that Lender deems necessary or appropriate, in its Permitted Discretion and subject to <u>Section 2.1(c)</u>, to establish and maintain (including reserves for slow moving Inventory and Inventory shrinkage) with respect to Eligible Inventory or the Maximum Revolver Amount, including based on the results of appraisals.

"<u>Inventory Sublimit</u>" means $25,000,000.

"<u>Investment</u>" means, with respect to any Person, any investment by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in the ordinary course of business, and (b) *bona fide* accounts receivable arising in the ordinary course of business), or acquisitions of Indebtedness, Equity Interests, or all or substantially all of the assets of such other Person (or of any division or business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. The amount of any Investment shall be the original cost of such Investment *<u>plus</u>* the cost of all additions thereto, without any adjustment for increases or decreases in value, or write-ups, write-downs, or write-offs with respect to such Investment.

"<u>Investment Grade</u>" means, with respect to any person, a rating of (a) "BBB-" or higher as determined by S&P and (b) "Baa3" or higher as determined by Moody's (it being understood that if S&P ceases to provide a corporate family credit rating with respect to any Person, clause (a) shall no longer apply so long as clause (b) is satisfied with respect to such Person, and if Moody's ceases to provide a corporate family credit rating with respect to any Person, clause (b) shall no longer apply so long as clause (a) is satisfied with respect to such Person.

"<u>IRC</u>" means the Internal Revenue Code of 1986, as in effect from time to time.

"<u>ISP</u>" means, with respect to any Letter of Credit, the International Standby Practices 1998 (International Chamber of Commerce Publication No. 590) and any version or revision thereof accepted by Lender for such use.

"<u>Issuer Document</u>" means, with respect to any Letter of Credit, a letter of credit application, a letter of credit agreement, or any other document, agreement or instrument entered into (or to be entered into) by a Borrower in favor of Lender and relating to such Letter of Credit.

"<u>Joinder</u>" means a joinder agreement substantially in the form of <u>Exhibit J-1</u> to this Agreement.

"<u>Landlord Reserve</u>" means, as to each location at which a Borrower has Inventory, Equipment or books and records located and as to which a Collateral Access Agreement has not been received by Lender, a reserve in an amount equal to three months' rent, storage charges, fees or other amounts under the lease or other applicable agreement relative to such location or, if greater and Lender so elects, the number of months' rent, storage charges, fess or other amounts for which the landlord, bailee, warehouseman or other property owner will have, under applicable law, a Lien in the Inventory or Equipment of such Borrower to secure the payment of such amounts under the lease or other applicable agreement relative to such location.

"<u>Lender</u>" has the meaning set forth in the preamble to this Agreement, and shall include its successors and assigns.

"<u>Lender Expenses</u>" means all (a) costs or expenses (including taxes and insurance premiums) required to be paid by any Loan Party or its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by Lender, (b) documented out-of-pocket fees or charges paid or incurred by Lender in connection with Lender's transactions with each Loan Party and its Subsidiaries under any of the Loan Documents, including, photocopying, notarization, couriers and messengers, telecommunication, public record searches, filing fees, recording fees, publication, real estate surveys, real estate title policies and endorsements, and environmental audits, (c) Lender's customary fees and charges imposed or incurred in connection with any background checks or OFAC/PEP searches related to any Loan Party or its Subsidiaries, (d) Lender's customary fees and charges (as adjusted from time to time) with respect to the disbursement of funds (or the receipt of funds) to or for the account of any Borrower (whether by wire transfer or otherwise), together with any out-of-pocket costs and expenses incurred in connection therewith, (e) customary charges imposed or incurred by Lender resulting from the dishonor of checks payable by or to any Loan Party or its Subsidiaries, (f) reasonable, documented out-of-pocket costs and expenses paid or incurred by Lender to correct any default or enforce any provision of the Loan Documents, or during the continuance of an Event of Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (g) field examination, appraisal, and valuation fees and expenses of Lender related to any field examinations, appraisals, or valuation to the extent of the fees and charges (and up to the amount of any limitation) provided in <u>Section 2.10</u> of this Agreement, (h) Lender's reasonable, documented costs and expenses (including reasonable and documented attorneys' fees and expenses) relative to third party claims or any other lawsuit or adverse proceeding paid or incurred, whether in enforcing or defending the Loan Documents or otherwise in connection with the transactions contemplated by the Loan Documents, Lender's Liens in and to the Collateral, or Lender's relationship with any Loan Party or any of its Subsidiaries, (i) Lender's reasonable costs and expenses (including reasonable attorneys' fees and due diligence expenses) incurred in advising, structuring, drafting, reviewing, administering (including travel, meals, and lodging), or amending, waiving, or modifying the Loan Documents, and (j) Lender's reasonable and documented costs and expenses (including reasonable and documented attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection with a "workout," a "restructuring," or an Insolvency Proceeding concerning any Loan Party or any of its Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether a lawsuit or other adverse proceeding is brought, or in taking any enforcement action or any Remedial Action with respect to the Collateral.

"<u>Lender Representatives</u>" has the meaning specified therefor in <u>Section 16.9</u> of this Agreement.

"<u>Lender-Related Person</u>" means Lender, together with its Affiliates, officers, directors, employees, attorneys, and agents.

"<u>Lender's Account</u>" means the Deposit Account of Lender identified on <u>Schedule A-1</u> to this Agreement (or such other Deposit Account of Lender that has been designated as such, in writing, by Lender to Borrowers).

"<u>Lender's Liens</u>" means the Liens granted by each Loan Party or its Subsidiaries to Lender under the Loan Documents and securing the Obligations.

"<u>Letter of Credit</u>" means a letter of credit (as that term is defined in the Code) issued by Lender for the account of a Loan Party or its Subsidiaries.

"<u>Letter of Credit Collateralization</u>" means either (a) providing cash collateral (pursuant to documentation reasonably satisfactory to Lender (including that Lender has a first priority perfected Lien in such cash collateral), including provisions that specify that the Letter of Credit Fees and all commissions, fees, charges and expenses provided for in <u>Section 2.11(j)</u> of this Agreement (including any fronting fees) will continue to accrue while the Letters of Credit are outstanding) to be held by Lender for the benefit of Lender in an amount equal to 110% of the then existing Letter of Credit Usage, (b) delivering to Lender documentation executed by all beneficiaries under the Letters of Credit, in form and substance reasonably satisfactory to Lender, terminating all of such beneficiaries' rights under the Letters of Credit, or (c) providing Lender with a standby letter of credit, in form and substance reasonably satisfactory to Lender, from a commercial bank acceptable to Lender (in its sole discretion) in an amount equal to 110% of the then existing Letter of Credit Usage (it being understood that the Letter of Credit Fee and all fronting fees set forth in this Agreement will continue to accrue while the Letters of Credit are outstanding and that any such fees that accrue must be an amount that can be drawn under any such standby letter of credit).

"<u>Letter of Credit Disbursement</u>" means a payment made by Lender pursuant to a Letter of Credit.

"<u>Letter of Credit Fee</u>" has the meaning specified therefor in <u>Section 2.6(b)</u> of this Agreement.

"<u>Letter of Credit Indemnified Costs</u>" has the meaning specified therefor in <u>Section 2.11(e)</u> of this Agreement.

"<u>Letter of Credit Related Person</u>" has the meaning specified therefor in <u>Section 2.11(e)</u> of this Agreement.

"<u>Letter of Credit Sublimit</u>" means $500,000.

"<u>Letter of Credit Usage</u>" means, as of any date of determination, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit, *<u>plus</u>* (b) the aggregate amount of outstanding reimbursement obligations with respect to Letters of Credit which remain unreimbursed or which have not been paid through a Revolving Loan.

"<u>Lien</u>" means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien (statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement of any kind or nature whatsoever, including any conditional sale contract or other title retention agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing.

"<u>Loan</u>" means any Revolving Loan, any Extraordinary Advance, the Term Loan or any Capex Loan made (or to be made) hereunder.

"<u>Loan Account</u>" has the meaning specified therefor in <u>Section 2.9</u> of this Agreement.

"<u>Loan Documents</u>" means this Agreement, the Control Agreements, the Copyright Security Agreement, any Borrowing Base Certificate, the Cash Management Documents, the Guaranty and Security Agreement, the Intercompany Subordination Agreement, the Collateral Assignment of Transition Services Agreement, any Issuer Documents, the Letters of Credit, the Mortgages, the Patent Security Agreement, each Subordination Agreement, the Citibank Letter Agreements, the Trademark Security Agreement, any note or notes executed by Borrowers in connection with this Agreement and payable to Lender, and any other instrument or agreement entered into, now or in the future, by any Loan Party or any of its Subsidiaries and Lender in connection with this Agreement (but specifically excluding Bank Product Agreements).

"<u>Loan Management Service</u>" means Lender's proprietary loan management program currently known as "Loan Manager" and any successor service or product of Lender which performs similar services.

"<u>Loan Party</u>" means any Borrower or any Guarantor.

"<u>Lockbox</u>" means "Lockbox" as defined and described in the Cash Management

Documents.

"<u>M&E</u>" means all Equipment that constitutes CNC metal working machines, air compressors and support equipment (in each case, other than fixtures (unless otherwise agreed by Lender), tooling, rolling stock and any equipment subject to special perfection requirements under federal law).

"<u>Management Agreements</u>" means, collectively, (a) the Management Agreement, dated as of January 23, 2015, as may be amended from time to time in accordance with the terms of this Agreement, among Anania & Associates, Parent and the other Loan Parties party thereto, reflecting the payment of management fees in the aggregate amount of up to $300,000 per year, and (b) the unwritten agreement between or among Parent and/or any other Loan Party and George Schott with respect to the payment of directors' fees in the aggregate amount of up to $100,000 per year.

"<u>Managers</u>" means, collectively, (a) Anania & Associates and (b) George Schott, an individual.

"<u>Margin Stock</u>" as defined in Regulation U of the Board of Governors as in effect from time to time.

"<u>Material Adverse Effect</u>" means (a) a material adverse effect in the business, operations, results of operations, assets, liabilities or financial condition of the Loan Parties and their Subsidiaries, taken as a whole, (b) a material impairment of the Loan Parties' and their Subsidiaries' ability to perform their obligations under the Loan Documents to which they are parties or of Lender's ability to enforce the Obligations or realize upon the Collateral (other than as a result of as a result of an action taken or not taken that is solely in the control of Lender), or (c) a material impairment of the enforceability or priority of Lender's Liens with respect to all or a material portion of the Collateral.

"<u>Maturity Date</u>" means the earlier to occur of (a) November 6, 2028 and (b) 90 days prior to the maturity date of the Great Falls Mortgage Note (as in effect on the date hereof or as amended in accordance with the terms hereof).

"<u>Maximum Revolver Amount</u>" means $40,000,000, as decreased by the amount of reductions in the Revolver Commitments made in accordance with <u>Section 2.4(c)</u> of this Agreement and increased by the amount of any Increase made in accordance with <u>Section 2.15</u> of this Agreement.

"<u>Monthly Average Excess Availability</u>" means, for any one calendar month period commencing on the first day of the month of such period, the daily Average Excess Availability for such calendar month period.

"<u>Moody's</u>" has the meaning specified therefor in the definition of Cash Equivalents.

"<u>Mortgages</u>" means, individually and collectively, one or more mortgages, deeds of trust, or deeds to secure debt, executed and delivered by a Loan Party or one of its Subsidiaries in favor of Lender, in form and substance reasonably satisfactory to Lender, that encumber the Real Property Collateral.

"<u>Net Cash Proceeds</u>" means:

&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) with respect to any sale or disposition by any Loan Party or any of its Subsidiaries of assets, the amount of cash proceeds received (directly or indirectly) from time to time (whether as initial consideration or through the payment of deferred consideration) by or on behalf of such Loan Party or such Subsidiary, in connection therewith after deducting therefrom only (i) the amount of any Indebtedness secured by any Permitted Lien on any asset (other than (A) Indebtedness owing to Lender under this Agreement or the other Loan Documents and (B) Indebtedness assumed by the purchaser of such asset) which is required to be, and is, repaid in connection with such sale or disposition, (ii) reasonable fees, commissions, and expenses related thereto and required to be paid by such Loan Party or such Subsidiary in connection with such sale or disposition, (iii) taxes paid or payable to any taxing authorities by such Loan Party or such Subsidiary in connection with such sale or disposition, in each case to the extent, but only to the extent, that the amounts so deducted are, at the time of receipt of such cash, actually paid or payable to a Person that is not an Affiliate of any Loan Party or any of its Subsidiaries, and are properly attributable to such transaction, and (iv) all amounts that are set aside as a reserve (A) for adjustments in respect of the purchase price of such assets, (B) for any liabilities associated with such sale or casualty, to the extent such reserve is required by GAAP, and (C) for the payment of unassumed liabilities relating to the assets sold or otherwise disposed of at the time of, or within 30 days after, the date of such sale or other disposition, to the extent that in each case the funds described above in this clause (iv) are (x) deposited into escrow with a third party escrow agent or set aside in a separate Deposit Account that is subject to a Control Agreement in favor of Lender, and (y) paid to Lender as a prepayment of the applicable Obligations in accordance with <u>Section 2.4(e)</u> of this Agreement at such time when such amounts are no longer required to be set aside as such a reserve; 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) with respect to the issuance or incurrence of any Indebtedness by any Loan Party or any of its Subsidiaries, or the issuance by any Loan Party or any of its Subsidiaries of any Equity Interests, the aggregate amount of cash received (directly or indirectly) from time to time (whether as initial consideration or through the payment or disposition of deferred consideration) by or on behalf of such Loan Party or such Subsidiary in connection with such issuance or incurrence, after deducting therefrom only (i) reasonable fees, commissions, and expenses related thereto and required to be paid by such Loan Party or such Subsidiary in connection with such issuance or incurrence, and (ii) taxes paid or payable to any taxing authorities by such Loan Party or such Subsidiary in connection with such issuance or incurrence, in each case to the extent, but only to the extent, that the amounts so deducted are, at the time of receipt of such cash, actually paid or payable to a Person that is not an Affiliate of any Loan Party or any of its Subsidiaries, and are properly attributable to such transaction.

"<u>Net Recovery Percentage</u>" means, as of any date of determination, the percentage of the book value of Borrowers' Inventory that is estimated to be recoverable in an orderly liquidation of such Inventory net of all associated costs and expenses of such liquidation, such percentage to be determined as to each category of Inventory and to be as specified in the most recent Acceptable Appraisal of Inventory.

"<u>Obligations</u>" means (a) all loans (including the Term Loan, the Revolving Loans (inclusive of Extraordinary Advances) and the Capex Loans), debts, principal, interest (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), reimbursement or indemnification obligations with respect to Letters of Credit (irrespective of whether contingent), premiums, liabilities (including all amounts charged to the Loan Account pursuant to this Agreement), obligations (including indemnification obligations), fees, Lender Expenses (including any fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), guaranties, and all covenants and duties of any other kind and description owing by any Loan Party arising out of, under, pursuant to, in connection with, or evidenced by this Agreement or any of the other Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all other expenses or other amounts that any Loan Party is required to pay or reimburse by the Loan Documents or by law or otherwise in connection with the Loan Documents, and (b) all Bank Product Obligations; <u>provided</u>, that, anything to the contrary contained in the foregoing notwithstanding, the Obligations shall exclude any Excluded Swap Obligation. Without limiting the generality of the foregoing, the Obligations of Borrowers under the Loan Documents include the obligation to pay (i) the principal of the Revolving Loans, the Term Loan and the Capex Loans, (ii) interest accrued on the Revolving Loans, the Term Loan and the Capex Loans, (iii) the amount necessary to reimburse Lender for amounts paid or payable pursuant to Letters of Credit, (iv) Letter of Credit commissions, fees (including fronting fees) and charges, (v) Lender Expenses, (vi) fees payable under this Agreement or any of the other Loan Documents, and (vii) indemnities and other amounts payable by any Loan Party under any Loan Document. Any reference in this Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.

"<u>OFAC</u>" means The Office of Foreign Assets Control of the U.S. Department of the Treasury.

"<u>Opus Acquisition</u>" means, contemporaneously with the Closing Date, the purchase by Parent from the Opus Seller of 100% of the Equity Interests of the H.C. Starck Borrowers pursuant to the terms of the Opus Acquisition Documents on the terms and conditions set forth therein, for a purchase price of not greater than $44,067,001.00.

"<u>Opus Acquisition Agreement</u>" means that certain Equity Interest Purchase Agreement dated as of the Closing Date by and among Parent, as purchaser, the Opus Seller, as seller, and the other Persons party thereto, including all exhibits and schedules thereto.

"<u>Opus Acquisition Documents</u>" means, collectively, (a) the Opus Acquisition Agreement, (b) the Opus Transition Services Agreement and (c) all of the other agreements, documents and instruments executed and/or delivered in connection therewith, in each case, as the same may be amended, restated, supplemented or otherwise modified from time to time.

"<u>Opus Purchased Cash Prepayment Amount</u>" means an amount equal to (a) $4,000,000 *<u>minus</u>* (b) an amount equal to one week of cash needs of the H.C. Starck Borrowers (which amount shall be approved by Lender in writing).

"<u>Opus Seller</u>" means H.C. Starck Solutions Coldwater Inc., a Delaware corporation.

"<u>Opus ServicesCo</u>" means H.C. Starck Solutions Services Inc., a Delaware corporation.

"<u>Opus Transition Services Agreement</u>" means that certain Transition Services Agreement, dated as of the Closing Date (including all exhibits and schedules thereto), by and among Parent, as purchaser and Opus ServicesCo, as a "Provider" of services thereunder, as amended as of the date hereof and as may be further amended, restated or otherwise modified from time to time.

"<u>Overadvance</u>" means, as of any date of determination, that the Revolver Usage is greater than any of the limitations set forth in <u>Section 2.1</u> or <u>Section 2.11</u> of this Agreement.

"<u>Parent</u>" has the meaning specified therefor in the preamble to this Agreement.

"<u>Pass-Through Tax Liabilities</u>" means the amount of state and federal income tax paid or to be paid by the owner of any Equity Interest in Parent on taxable income earned by Parent and attributable to such owner of such Equity Interest as a result of Parent's "pass-through" tax status, assuming the highest marginal income tax rate for federal and state (for the state or states in which any owner of an Equity Interest in Parent is liable for income taxes with respect to such income) income tax purposes, after taking into account any deduction for state income taxes in calculating the federal income tax liability and all other deductions, credits, deferrals and other reductions available to such owner of such Equity Interest from or through Parent.

"<u>Patent Security Agreement</u>" has the meaning specified therefor in the Guaranty and Security Agreement.

"<u>Patriot Act</u>" has the meaning specified therefor in <u>Section 4.13</u> of this Agreement.

"<u>Payment Conditions</u>" means, at the time of determination with respect to a proposed Specified Transaction, that (a) no Default or Event of Default then exists or would arise as a result of the consummation of such Specified Transaction; (b) on a *pro forma* basis after giving effect to such proposed Specified Transaction, Excess Availability on such date and for the 30 consecutive day period preceding such proposed Specified Transaction is equal to or greater than $12,500,000; and (c) on a *pro forma* basis after giving effect to such Specified Transaction, the Fixed Charge Coverage Ratio (with such Fixed Charge Coverage Ratio to be tested as of the most recently ended Test Period) is at least 1.10 to 1.00; <u>provided</u>, that, in each case, Administrative Borrower shall have delivered an officer's certificate to Lender certifying to compliance with the conditions above, including a reasonably detailed calculation of such Excess Availability and the Fixed Charge Coverage Ratio.

"<u>Perfection Certificate</u>" means a certificate in the form of <u>Exhibit P-1</u> to this Agreement.

"<u>Periodic Term SOFR Determination Day</u>" has the meaning specified therefor in the definition of "Term SOFR".

"<u>Permitted Acquisition</u>" means any Acquisition so long as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no Default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed Acquisition and the proposed Acquisition is consensual,

&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) no Indebtedness will be incurred, assumed, or would exist with respect to any Loan Party or its Subsidiaries as a result of such Acquisition, other than Indebtedness permitted under clauses (e), (i) or (j) of the definition of Permitted Indebtedness and no Liens will be incurred, assumed, or would exist with respect to the assets of any Loan Party or its Subsidiaries as a result of such Acquisition other than Permitted Liens,

&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) Borrowers have provided Lender with its due diligence package relative to the proposed Acquisition, including forecasted balance sheets, profit and loss statements, and cash flow statements of the Person or assets to be acquired, all prepared on a basis consistent with such Person's (or assets') historical financial statements, together with appropriate supporting details and a statement of underlying assumptions for the one year period following the date of the proposed Acquisition, on a quarter by quarter basis), in form and substance (including as to scope and underlying assumptions) reasonably satisfactory 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; (e) [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;(f) the assets being acquired or the Person whose Equity Interests are being acquired did not have negative EBITDA during the 12 consecutive month period most recently concluded prior to the date of the proposed 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;(g) Administrative Borrower has provided Lender with written notice of the proposed Acquisition at least 15 Business Days prior to the anticipated closing date of the proposed Acquisition and, not later than five Business Days prior to the anticipated closing date of the proposed Acquisition, copies of the acquisition agreement and other material documents relative to the proposed Acquisition, which agreement and documents must be reasonably acceptable 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;(h) the assets being acquired (other than a *de minimis* amount of assets in relation to Parent's and its Subsidiaries' total assets), or the Person whose Equity Interests are being acquired, are useful in or engaged in, as applicable, the business of the Loan Parties and their Subsidiaries or a business reasonably 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;(i) the assets being acquired (other than a *de minimis* amount of assets in relation to the assets being acquired) are located within the United States or Canada, or the Person whose Equity Interests are being acquired is organized in a jurisdiction located within the United States or Canada,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the subject assets or Equity Interests, as applicable, are being acquired directly by a Borrower or one of its Subsidiaries that is a Loan Party, and, in connection therewith, the applicable Loan Party shall have complied with <u>Section 5.11</u> or <u>5.12</u> of this Agreement, as applicable, of this Agreement and, in the case of an acquisition of Equity Interests, the Person whose Equity Interests are acquired shall become a Loan Party and the applicable Loan Party shall have demonstrated to Lender that the new Loan Parties have received consideration sufficient to make the joinder documents binding and enforceable against such new Loan Parties, 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; (k) the Payment Conditions are satisfied.

"<u>Permitted Discretion</u>" means a determination made in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment.

"<u>Permitted Dispositions</u>" means:

&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) sales, abandonment, or other dispositions of Equipment that is substantially worn, damaged, or obsolete or no longer used or useful in the ordinary course of business (other than Eligible Closing Date M&E and Eligible New M&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; (b) sales of Inventory to buyers 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; (c) the granting of Permitted Liens,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the making of Restricted Payments that are expressly permitted to be made pursuant to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) the making of Permitted Investments,

&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) dispositions of assets acquired by the Loan Parties and their Subsidiaries pursuant to a Permitted Acquisition consummated within 12 months of the date of the proposed disposition so long as (i) the consideration received for the assets to be so disposed is at least equal to the fair market value of such assets, (ii) the assets to be so disposed are not necessary or economically desirable in connection with the business of the Loan Parties and their Subsidiaries, and (iii) the assets to be so disposed are readily identifiable as assets acquired pursuant to the subject Permitted Acquisition, 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;(g) dispositions by Parent to the Citibank Entities of the Praxair Accounts and the Philips Accounts, in each case, in accordance with the terms of the Citibank Documents (subject to the terms of the Citibank Letter Agreements).

"<u>Permitted Holders</u>" means, collectively, (a) Anania & Associates Investment Company, LLC and (b) George Schott.

"<u>Permitted Indebtedness</u>" means:

&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) Indebtedness in respect of the 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) Indebtedness as of the Closing Date set forth on <u>Schedule 4.14</u> to this Agreement and any Refinancing Indebtedness in respect of such Indebtedness,

&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) Permitted Purchase Money Indebtedness and any Refinancing Indebtedness in respect of such Indebtedness,

&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) Indebtedness arising in connection with the endorsement of instruments or other payment items for deposit,

&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) unsecured Indebtedness of any Loan Party that is incurred on the date of the consummation of a Permitted Acquisition solely for the purpose of consummating such Permitted Acquisition so long as (i) no Event of Default has occurred and is continuing or would result therefrom, (ii) such unsecured Indebtedness is not incurred for working capital purposes, (iii) such unsecured Indebtedness does not mature prior to the date that is 12 months after the Maturity Date, (iv) such unsecured Indebtedness does not amortize until 12 months after the Maturity Date, (v) such unsecured Indebtedness does not provide for the payment of interest thereon in cash or Cash Equivalents prior to the date that is 12 months after the Maturity Date, and (vi) such Indebtedness is subordinated in right of payment to the Obligations on terms and conditions reasonably satisfactory to Lender and is otherwise on terms and conditions (including economic terms and absence of covenants) reasonably satisfactory 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;(f) the incurrence by any Loan Party or its Subsidiaries of Indebtedness under Hedge Agreements that is incurred for the bona fide purpose of hedging the interest rate, commodity, or foreign currency risks associated with such Loan Party's or such Subsidiary's operations and not for speculative 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;(g) Indebtedness incurred in the ordinary course of business in respect of credit cards, credit card processing services, debit cards, stored value cards, commercial cards (including so-called "purchase cards", "procurement cards" or "p-cards"), or Cash Management 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; (h) Indebtedness comprising Permitted Investments,

&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) contingent liabilities in respect of any indemnification obligation, adjustment of purchase price, non-compete, or similar obligation of any Loan Party incurred in connection with the consummation of one or more Permitted Acquisitions,

&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) unsecured Indebtedness of any Loan Party or its Subsidiaries in respect of Earn- Outs owing to sellers of assets or Equity Interests to such Loan Party or its Subsidiaries that is incurred in connection with the consummation of one or more Permitted Acquisitions so long as such unsecured Indebtedness is on terms and conditions reasonably acceptable 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; (k) secured Indebtedness pursuant to the Great Falls Mortgage 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;(l) Acquired Indebtedness in an amount not to exceed $150,000 outstanding at any one 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; (m) [reserved], 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;(n) unsecured Subordinated Indebtedness of the Loan Parties in an aggregate principal amount not to exceed $50,000.

"<u>Permitted Intercompany Advances</u>" means loans made by (a) a Loan Party to another Loan Party, (b) a Subsidiary of a Loan Party that is not a Loan Party to another Subsidiary of a Loan Party that is not a Loan Party, and (c) a Subsidiary of a Loan Party that is not a Loan Party to a Loan Party, so long as the parties thereto are party to the Intercompany Subordination Agreement.

"<u>Permitted Investments</u>" means:

&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) Investments in cash and Cash Equivalents,

&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) Investments in negotiable instruments deposited or to be deposited for collection 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;(c) advances made in connection with purchases of goods or services 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;(d) Investments owned by any Loan Party or any of its Subsidiaries on the Closing Date and set forth on <u>Schedule P-1</u> to this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) Permitted Intercompany Advances,

&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) Permitted Acquisitions,

&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) Investments held by a Person acquired in a Permitted Acquisition to the extent that such Investments were not made in contemplation of or in connection with such Permitted Acquisition and were in existence on the date of such Permitted Acquisition, 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;(h) Investments resulting from entering into (i) Bank Product Agreements, or (ii) agreements relative to obligations permitted under clause (g) of the definition of Permitted Indebtedness.

"<u>Permitted Liens</u>" means:

&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) Liens granted to, or for the benefit of, Lender to secure the 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) Liens for unpaid taxes, assessments, or other governmental charges or levies that either (i) are not yet delinquent, or (ii) do not have priority over Lender's Liens and the underlying taxes, assessments, or charges or levies are the subject of Permitted Protests,

&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) judgment Liens arising solely as a result of the existence of judgments, orders, or awards that do not constitute an Event of Default under <u>Section 8.3</u> 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;(d) Liens set forth on <u>Schedule P-2</u> to this Agreement; <u>provided</u>, that to qualify as a Permitted Lien, any such Lien described on <u>Schedule P-2</u> to this Agreement shall only secure the Indebtedness that it secures on the Closing Date and any Refinancing Indebtedness in respect 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) the interests of lessors under operating leases (including, for the avoidance of doubt, operating leases that are recharacterized as capital leases as a result of a change in GAAP after the Closing Date) and non-exclusive licensors under license 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;(f) purchase money Liens on fixed assets or the interests of lessors under Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so long as (i) such Lien attaches only to the fixed asset purchased or acquired and the proceeds thereof, and (ii) such Lien only secures the Indebtedness that was incurred to acquire the fixed asset purchased or acquired or any Refinancing Indebtedness in respect 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) Liens solely on any cash earnest money deposits made by a Loan Party or any of its Subsidiaries in connection with any letter of intent or purchase agreement with respect to a Permitted 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;(h) Liens assumed by any Loan Party or its Subsidiaries in connection with a Permitted Acquisition that secure Acquired Indebtedness that is Permitted Indebtedness,

&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) Liens securing the Indebtedness in respect of the Great Falls Mortgage Documents permitted under clause (k) of the definition of Permitted Indebtedness,

&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) [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;(k) Liens pursuant to, and in accordance with, the terms of the Citibank Documents as in effect on the Closing Date and subject to the terms of the Citibank Letter Agreements as in effect on the Closing Date; <u>provided</u>, that the Citibank Letter Agreements shall remain in full force and effect and enforceable in accordance with their respective terms, 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;(l) Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is the subject of permitted Refinancing Indebtedness and so long as the replacement Liens only encumber those assets that secured the original Indebtedness.

"<u>Permitted Protest</u>" means the right of any Loan Party or any of its Subsidiaries to protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or rental payment; <u>provided</u>, that (a) a reserve with respect to such obligation is established on such Loan Party's or its Subsidiaries' books and records in such amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by such Loan Party or its Subsidiary, as applicable, in good faith, and (c) Lender is satisfied that, while any such protest is pending, there will be no impairment of the enforceability, validity, or priority of any of Lender's Liens.

"<u>Permitted Purchase Money Indebtedness</u>" means, as of any date of determination, Indebtedness (other than the Obligations, but including Capitalized Lease Obligations), incurred after the Closing Date and at the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof, in an aggregate principal amount outstanding at any one time not in excess of $150,000.

"<u>Person</u>" means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof.

"<u>Philips</u>" means, collectively, Koninklijke Philipselectronics N.V., Philips Medical Systems (Cleveland), Inc. and its various Subsidiaries and Affiliates.

"<u>Philips Accounts</u>" means, collectively, all Accounts (and the related assets) of Philips purchased, or subject to purchase, by Citibank Europe pursuant to the Citibank Supply Chain Finance Program.

"<u>Praxair</u>" means, collectively, Praxair, Inc. and its various Subsidiaries and Affiliates.

"<u>Praxair Accounts</u>" means, collectively, all Accounts (and the related assets) of Praxair purchased, or subject to purchase, by Citibank US pursuant to the Citibank Supply Chain Finance Program.

"<u>Projections</u>" means Parent's and its Subsidiaries' forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow statements, all prepared on a basis consistent Parent's and its Subsidiaries' historical financial statements, together with appropriate supporting details and a statement of underlying assumptions.

"<u>Protective Advances</u>" has the meaning specified therefor in <u>Section 2.3(c)(i)</u> of this Agreement.

"<u>Purchase Price</u>" means, with respect to any Acquisition, an amount equal to the aggregate consideration, whether cash, property or securities (including the fair market value of any Equity Interests of any Loan Party issued in connection with such Acquisition and including the maximum amount of Earn- Outs), paid or delivered by a Loan Party or one of its Subsidiaries in connection with such Acquisition (whether paid at the closing thereof or payable thereafter and whether fixed or contingent), but excluding therefrom (a) any cash of the seller and its Affiliates used to fund any portion of such consideration, and (b) any cash or Cash Equivalents acquired in connection with such Acquisition.

"<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>" has the meaning set forth in <u>Section 16.14</u> of this Agreement.

"<u>Qualified Equity Interests</u>" means and refers to any Equity Interests issued by Parent (and not by one or more of its Subsidiaries) that is not a Disqualified Equity Interest.

"<u>Real Property</u>" means any estates or interests in real property now owned or hereafter acquired by any Loan Party or one of its Subsidiaries and the improvements thereto.

"<u>Real Property Collateral</u>" means any Real Property hereafter acquired by any Loan Party or one of its Subsidiaries with a fair market value in excess of $3,000,000.

"<u>Receivable Reserves</u>" means, as of any date of determination, those reserves that Lender deems necessary or appropriate, in its Permitted Discretion and subject to <u>Section 2.1(c)</u>, to establish and maintain (including Landlord Reserves for books and records locations and reserves for rebates, discounts, warranty claims, and returns) with respect to the Eligible Accounts or the Maximum Revolver Amount.

"<u>Record</u>" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

"<u>Reference Period</u>" has the meaning specified therefor in the definition of EBITDA.

"<u>Refinancing Indebtedness</u>" means refinancings, renewals, or extensions of Indebtedness so long as:

&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) such refinancings, renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, other than by the amount of premiums paid thereon and the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with respect 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) such refinancings, renewals, or extensions do not result in a shortening of the final stated maturity or the average weighted maturity (measured as of the refinancing, renewal, or extension) of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are or could reasonably be expected to be materially adverse to the interests of 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) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include subordination terms and conditions that are at least as favorable to Lender as those that were applicable to the refinanced, renewed, or extended Indebtedness,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended,

&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) if the Indebtedness that is refinanced, renewed or extended was unsecured, such refinancing, renewal or extension shall be unsecured, 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;(f) if the Indebtedness that is refinanced, renewed, or extended was secured (i) such refinancing, renewal, or extension shall be secured by substantially the same or less collateral as secured such refinanced, renewed or extended Indebtedness on terms no less favorable to Lender, and (ii) the Liens securing such refinancing, renewal or extension shall not have a priority more senior than the Liens securing such Indebtedness that is refinanced, renewed or extended.

"<u>Relevant Governmental Body</u>" means the Board of Governors or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Remedial Action</u>" means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment,

(c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial operation and maintenance activities, or (e) conduct any other actions with respect to Hazardous Materials required by Environmental Laws.

"<u>Required Availability</u>" means that Excess Availability exceeds $15,000,000.

"<u>Required Liquidity</u>" means (a) the Required Availability and (b) cash equal to or greater than $2,500,000 in immediately available funds.

"<u>Reserves</u>" means, as of any date of determination, Inventory Reserves, Receivables Reserves, Bank Product Reserves, and those other reserves that Lender deems necessary or appropriate, in its Permitted Discretion and subject to <u>Section 2.1(c)</u>, to establish and maintain (including reserves with respect to (a) sums that any Loan Party or its Subsidiaries are required to pay under any Section of this Agreement or any other Loan Document (such as taxes, assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases) and has failed to pay, and (b) amounts owing by any Loan Party or its Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than a Permitted Lien), which Lien or trust, in the Permitted Discretion of Lender likely would have a priority superior to Lender's Liens (such as Liens or trusts in favor of landlords, warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority under applicable law) in and to such item of the Collateral) with respect to the Borrowing Base or the Maximum Revolver Amount.

"<u>Restricted Payment</u>" means (a) any declaration or payment of any dividend or the making of any other payment or distribution, directly or indirectly, on account of Equity Interests issued by Parent or any of its Subsidiaries (including any payment in connection with any merger or consolidation involving any Borrower) or to the direct or indirect holders of Equity Interests issued by Parent or any of its Subsidiaries in their capacity as such (other than dividends or distributions payable in Qualified Equity Interests issued by Parent or any of its Subsidiaries), or (b) any purchase, redemption, making of any sinking fund or similar payment, or other acquisition or retirement for value (including in connection with any merger or consolidation involving any Borrower) any Equity Interests issued by Parent or any of its Subsidiaries, or (c) any making of any payment to retire, or to obtain the surrender of, any outstanding warrants, options, or other rights to acquire Equity Interests of any Borrower now or hereafter outstanding.

"<u>Revolver Commitment</u>" means Lender's Revolver Commitment as set forth beside Lender's name on <u>Schedule C-1</u> to this Agreement, as such amount may be decreased by the amount of reductions in the Revolver Commitments made in accordance with <u>Section 2.4(c)</u> of this Agreement and increased by the amount of any Increase made in accordance with <u>Section 2.15</u> of this Agreement.

"<u>Revolver Usage</u>" means, as of any date of determination, the sum of (a) the amount of outstanding Revolving Loans (inclusive of Protective Advances), *<u>plus</u>* (b) the amount of the Letter of Credit Usage.

"<u>Revolving Loan Base Rate Margin</u>" has the meaning set forth in the definition of Applicable Margin.

"<u>Revolving Loan SOFR Margin</u>" has the meaning set forth in the definition of Applicable Margin.

"<u>Revolving Loans</u>" has the meaning specified therefor in <u>Section 2.1(a)</u> of this Agreement.

"<u>Sanctioned Entity</u>" means (a) a country or territory or a government of a country or territory, (b) an agency of the government of a country or territory, (c) an organization directly or indirectly controlled by a country or territory or its government, or (d) a Person resident in or determined to be resident in a country or territory, in each case of clauses (a) through (d) that is a target of Sanctions, including a target of any country sanctions program administered and enforced by OFAC.

"<u>Sanctioned Person</u>" means, at any time, (a) any Person named on the list of Specially Designated Nationals and Blocked Persons maintained by OFAC, OFAC's consolidated Non-SDN list or any other Sanctions-related list maintained by any Governmental Authority, (b) a Person or legal entity that is a target of Sanctions, (c) any Person operating, organized or resident in a Sanctioned Entity, or (d) any Person directly or indirectly owned or controlled (individually or in the aggregate) by or acting on behalf of any such Person or Persons described in clauses (a) through (c) above.

"<u>Sanctions</u>" means individually and collectively, respectively, any and all economic sanctions, trade sanctions, financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes anti-terrorism laws and other sanctions laws, regulations or embargoes, including those imposed, administered or enforced from time to time by: (a) the United States of America, including those administered by OFAC, the U.S. Department of State, the U.S. Department of Commerce, or through any existing or future executive order, (b) the United Nations Security Council, (c) the European Union or any European Union member state, (d) Her Majesty's Treasury of the United Kingdom, or (d) any other Governmental Authority with jurisdiction over Lender or any Loan Party or any of their respective Subsidiaries or Affiliates.

"<u>S&P</u>" has the meaning specified therefor in the definition of Cash Equivalents.

"<u>SEC</u>" means the United States Securities and Exchange Commission and any successor thereto.

"<u>Securities Account</u>" means a securities account (as that term is defined in the Code).

"<u>Securities Act</u>" means the Securities Act of 1933, as amended from time to time, and any successor statute.

"<u>Small Business Act</u>" means the Small Business Act of 1953 (15 U.S.C. § 636(a) et seq.), as amended from time to time.

"<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>SOFR Deadline</u>" has the meaning specified therefor in <u>Section 2.12(b)(i)</u> of this Agreement.

"<u>SOFR Loan</u>" means each portion of a Revolving Loan, the Term Loan or a Capex Loan that bears interest at a rate determined by reference to Term SOFR (other than pursuant to clause (c) of the definition of "Base Rate").

"<u>SOFR Margin</u>" means the Revolving Loan SOFR Margin, the Term Loan SOFR Margin or the Capex Loan SOFR Margin, as applicable.

"<u>SOFR Notice</u>" means a written notice in the form of <u>Exhibit S-1</u> to this Agreement.

"<u>SOFR Option</u>" has the meaning specified therefor in <u>Section 2.12(a)</u> of this Agreement.

"<u>Solvent</u>" means, with respect to any Person as of any date of determination, that (a) at fair valuations, the sum of such Person's debts (including contingent liabilities) is less than all of such Person's assets, (b) such Person is not engaged or about to engage in a business or transaction for which the remaining assets of such Person are unreasonably small in relation to the business or transaction or for which the property remaining with such Person is an unreasonably small capital, (c) such Person has not incurred and does not intend to incur, or reasonably believe that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise), and (d) such Person is "solvent" or not "insolvent", as applicable within the meaning given those terms and similar terms under applicable laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be 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 (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).

"<u>Specified Transaction</u>" means any Permitted Acquisition or Restricted Payment (or declaration of any prepayment or Restricted Payment).

"<u>Standard Letter of Credit Practice</u>" means, for Lender, any domestic or foreign law or letter of credit practices applicable in the city in which Lender issued the applicable Letter of Credit or, for its branch or correspondent, such laws and practices applicable in the city in which it has advised, confirmed or negotiated such Letter of Credit, as the case may be, in each case, (a) which letter of credit practices are of banks that regularly issue letters of credit in the particular city, and (b) which laws or letter of credit practices are required or permitted under ISP or UCP, as chosen in the applicable Letter of Credit.

"<u>Subject Holder</u>" has the meaning specified therefor in <u>Section 2.4(d)(vi)</u> of this Agreement.

"<u>Subordinated Indebtedness</u>" means any Indebtedness of any Loan Party or its Subsidiaries incurred from time to time that is subordinated in right of payment to the Obligations and is subject to a Subordination Agreement or contains terms and conditions of subordination that are acceptable to Lender.

"<u>Subordination Agreement</u>" means any subordination agreement in favor of Lender with respect to Subordinated Indebtedness, which subordination agreement shall be in form and content acceptable to Lender.

"<u>Subsidiary</u>" of a Person means a corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly owns or controls the Equity Interests having ordinary voting power to elect a majority of the Board of Directors of such corporation, partnership, limited liability company, or other entity.

"<u>Supported QFC</u>" has the meaning set forth in <u>Section 16.14</u> of this Agreement.

"<u>Swap Obligation</u>" means, with respect to any Loan Party, any obligation 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.

"<u>Taxes</u>" means any taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments and all interest, penalties or similar liabilities with respect thereto; <u>provided</u>, that Taxes shall exclude any tax imposed on the net income or net profits of Lender (including any branch profits taxes), in each case imposed by the jurisdiction (or by any political subdivision or taxing authority thereof in which Lender is organized or the jurisdiction (or by any political subdivision or taxing authority thereof) in which Lender's principal office is located in each case as a result of a present or former connection between Lender and the jurisdiction or taxing authority imposing the tax (other than any such connection arising solely from Lender having executed, delivered or performed its obligations or received payment under, or enforced its rights or remedies under this Agreement or any other Loan Document).

"<u>Term Loan</u>" has the meaning specified therefor in <u>Section 2.2</u> of this Agreement.

"<u>Term Loan Amount</u>" means $8,709,684.00.

"<u>Term Loan Base Rate Margin</u>" has the meaning set forth in the definition of Applicable Margin.

"<u>Term Loan Commitment</u>" means Lender's Term Loan Commitment as set forth beside Lender's name on <u>Schedule C-1</u> to this Agreement.

"<u>Term Loan SOFR Margin</u>" has the meaning set forth in the definition of Applicable Margin.

"<u>Term SOFR</u>" means,

&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) for any calculation with respect to a SOFR 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 day of such Interest Period, as such rate is published by the Term SOFR Administrator; <u>provided</u>, however, 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 and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, 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

&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) for any calculation with respect to a Base Rate Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the "<u>Base Rate Term SOFR Determination Day</u>") that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; <u>provided</u>, however, that if as of 5:00 p.m. (New York City time) on any Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, 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 Base Rate Term SOFR Determination Day; <u>provided</u>, <u>further</u>, that if Term SOFR determined as provided above (including pursuant to the proviso under clause (a) or clause (b) 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 Lender in its reasonable discretion).

"<u>Term SOFR Reference Rate</u>" means the forward-looking term rate based on SOFR.

"<u>Test Period</u>" means, for any date of determination under this Agreement, the 12 consecutive fiscal months of Parent most recently ended as of such date of determination for which financial statements were required to have been delivered pursuant to <u>Section 5.1</u> of this Agreement.

"<u>Trademark Security Agreement</u>" has the meaning specified therefor in the Guaranty and Security Agreement.

"<u>UCP</u>" means, with respect to any Letter of Credit, the Uniform Customs and Practice for Documentary Credits 2007 Revision, International Chamber of Commerce Publication No. 600 and any version or revision thereof accepted by Lender for use.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>Unfinanced Capital Expenditures</u>" means Capital Expenditures (a) not financed with the proceeds of any incurrence of Indebtedness (other than the incurrence of any Revolving Loans), the proceeds of any sale or issuance of Equity Interests or equity contributions, the proceeds of any asset sale (other than the sale of Inventory in the ordinary course of business), or any insurance proceeds, and (b) that are not reimbursed by a third person (excluding any Loan Party or any of its Affiliates) in the period, such expenditures are made pursuant to a written agreement. For the avoidance of doubt, the following shall not constitute Unfinanced Capital Expenditures: (i) Capital Expenditures financed with Revolving Loans and (ii) Capital Expenditures financed with proceeds from governmental grants issued by the U.S. Department of Defense.

"<u>United States</u>" means the United States of America.

"<u>Unused Line Fee</u>" has the meaning specified therefor in <u>Section 2.10(c)</u> of this Agreement.

"<u>U.S. Government Securities Business Day</u>" means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association, or any successor thereto, recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities; provided, that for purposes of notice requirements in <u>Sections 2.3(a)</u>, <u>2.3(c)</u> and <u>2.12(b)</u>, in each case, such day is also a Business Day.

"<u>U.S. Special Resolution Regimes</u>" has the meaning set forth in <u>Section 16.14</u> of this Agreement.

"<u>Voidable Transfer</u>" has the meaning specified therefor in <u>Section 16.8</u> of this Agreement.

"<u>Work-In-Process Sublimit</u>" means $5,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **<u>Accounting Terms</u>**. All accounting terms not specifically defined herein shall be construed in accordance with GAAP; <u>provided</u>, that if Administrative Borrower notifies Lender that Borrowers request an amendment to any provision hereof to eliminate the effect of any Accounting Change occurring after the Closing Date or in the application thereof on the operation of such provision (or if Lender notifies Administrative Borrower that Lender requests an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such Accounting Change or in the application thereof, then Lender and Borrowers agree that they will negotiate in good faith amendments to the provisions of this Agreement that are directly affected by such Accounting Change with the intent of having the respective positions of Lender and Borrowers after such Accounting Change conform as nearly as possible to their respective positions immediately before such Accounting Change took effect and, until any such amendments have been agreed upon, the provisions in this Agreement shall be calculated as if no such Accounting Change had occurred. When used herein, the term "financial statements" shall include the notes and schedules thereto. Whenever the term "Parent", "Borrowers" or "Loan Parties" is used in respect of a financial covenant or a related definition, it shall be understood to mean the Loan Parties and their Subsidiaries on a consolidated basis, unless the context clearly requires otherwise. Notwithstanding anything to the contrary contained herein, (a) all financial statements delivered hereunder shall be prepared, and all financial covenants contained herein shall be calculated, without giving effect to any election under the Statement of Financial Accounting Standards Board's Accounting Standards Codification Topic 825 (or any similar accounting principle) permitting a Person to value its financial liabilities or Indebtedness at the fair value thereof, and (b) the term "unqualified opinion" as used herein to refer to opinions or reports provided by accountants shall mean an opinion or report that is (i) unqualified, and (ii) does not include any explanation, supplemental comment, or other comment concerning the ability of the applicable Person to continue as a going concern or concerning the scope of the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 **<u>Code</u>**. Any terms used in this Agreement that are defined in the Code shall be construed and defined as set forth in the Code unless otherwise defined herein; <u>provided</u>, that to the extent that the Code is used to define any term herein and such term is defined differently in different Articles of the Code, the definition of such term contained in Article 9 of the Code shall govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 **<u>Construction</u>**. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms "includes" and "including" are not limiting, and the term "or" has, except where otherwise indicated, the inclusive meaning represented by the phrase "and/or." The words "hereof," "herein," "hereby," "hereunder," and similar terms in this Agreement or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). 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. Any reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations shall mean (a) the payment or repayment in full in immediately available funds of (i) the principal amount of, and interest accrued and unpaid with respect to, all outstanding Loans, together with the payment of any premium applicable to the repayment of the Loans, (ii) all Lender Expenses that have accrued and are unpaid regardless of whether demand has been made therefor, and (iii) all fees or charges that have accrued hereunder or under any other Loan Document (including the Letter of Credit Fee and the Unused Line Fee) and are unpaid, (b) in the case of contingent reimbursement obligations with respect to Letters of Credit, providing Letter of Credit Collateralization, (c) in the case of obligations with respect to Bank Products (other than Hedge Obligations), providing Bank Product Collateralization, (d) the receipt by Lender of cash collateral in order to secure any other contingent Obligations for which a claim or demand for payment has been made on or prior to such time or in respect of matters or circumstances known to Lender at such time that are reasonably expected to result in any loss, cost, damage, or expense (including attorneys' fees and legal expenses), such cash collateral to be in such amount as Lender reasonably determines is appropriate to secure such contingent Obligations, (e) the payment or repayment in full in immediately available funds of all other outstanding Obligations (including the payment of any termination amount then applicable (or which would or could become applicable as a result of the repayment of the other Obligations) under Hedge Agreements provided by Hedge Providers) other than (i) unasserted contingent indemnification Obligations, (ii) any Bank Product Obligations (other than Hedge Obligations) that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding without being required to be repaid or cash collateralized, and (iii) any Hedge Obligations that, at such time, are allowed by the applicable Hedge Provider to remain outstanding without being required to be repaid, and (f) the termination of all of the Commitments of Lender. A Default or Event of Default, respectively, shall exist or continue or be continuing unless and until such Default has been cured within any applicable grace period provided for herein or until such Event of Default has been waived in writing by Lender in accordance with the terms and conditions hereof. Any reference herein to any Person shall be construed to include such Person's successors and assigns. Any requirement of a writing contained herein or in any other Loan Document shall be satisfied by the transmission of a Record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 **<u>Time References</u>**. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, all references to time of day refer to Eastern standard time or Eastern daylight savings time, as in effect in New York, New York on such day. For purposes of the computation of a period of time from a specified date to a later specified date, unless otherwise expressly provided, the word "from" means "from and including" and the words "to" and "until" each means "to and including"; <u>provided</u>, that with respect to a computation of fees or interest payable to Lender, such period shall in any event consist of at least one full day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 **<u>Schedules and Exhibits</u>**. All of the schedules and exhibits attached to this Agreement shall be deemed incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 **<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 Equity Interests at such time.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 **<u>Rates</u>**. Lender does not warrant or accept any 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 Term SOFR Reference Rate, Term SOFR or any other Benchmark, any component definition thereof or rates referred to in the definition thereof, or with respect to any alternative, successor or replacement rate thereto (including any then-current Benchmark or any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to <u>Section 2.12(d)(iii)</u>, will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Term SOFR Reference Rate, Term SOFR or any other Benchmark, prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. Lender and its affiliates or other related entities may engage in transactions that affect the calculation of the Term SOFR Reference Rate, Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto and such transactions may be adverse to a Borrower. Lender may select information sources or services in its reasonable discretion to ascertain the Term SOFR Reference Rate or Term SOFR, or any other Benchmark, 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 any Borrower, 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.

&nbsp;&nbsp;&nbsp;&nbsp;2. LOANS AND TERMS OF PAYMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.1 <u>Revolving 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;(a) Subject to the terms and conditions of this Agreement, and during the term of this Agreement, Lender agrees to make revolving loans ("<u>Revolving Loans</u>") to Borrowers in an amount at any one time outstanding not to exceed *the lesser of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the Revolver Commitment, 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) an amount equal to *the lesser of*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the amount equal to (1) the Maximum Revolver Amount, *<u>less</u>* (2) the Letter of Credit Usage at such time, *<u>less</u>* (3) Reserves established by Lender in accordance with <u>Section 2.1(c)</u>, 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;(B) the amount equal to (1) the Borrowing Base as of such date (based upon the most recent Borrowing Base Certificate delivered by Borrowers to Lender), as adjusted for Reserves established by Lender in accordance with <u>Section 2.1(c)</u>, *<u>less</u>* (2) the sum of (x) the Letter of Credit Usage at such time, *<u>plus</u>* (y) the principal amount of the Term Loan outstanding at such time, *<u>plus</u>* (z) the principal amount of all Capex Loans outstanding at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Amounts borrowed pursuant to this <u>Section 2.1</u> may be repaid and, subject to the terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement. The outstanding principal amount of the Revolving Loans, together with interest accrued and unpaid thereon, shall constitute Obligations and shall be due and payable on the Maturity Date or, if earlier, on the date on which they otherwise become due and payable pursuant to 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;(c) Anything to the contrary in this <u>Section 2.1</u> notwithstanding, Lender shall have the right (but not the obligation) at any time, in the exercise of its Permitted Discretion, to establish and increase or decrease Reserves against the Borrowing Base or the Maximum Revolver Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 **<u>Term Loan</u>**. Subject to the terms and conditions of this Agreement, on the Closing Date, Lender agrees to make a term loan (the "<u>Closing Date Term Loan</u>") to Borrowers in an aggregate amount equal to the lesser of (a) the Term Loan Commitment and (b) the Term Loan Amount. The Closing Date Term Loan shall be added to and consolidated with the Existing Term Loan outstanding as of the Closing Date in an amount equal to $1,661,720.00, and, as so consolidated to equal an amount equal to $8,709,684.00 (the "<u>Term Loan</u>"), shall be deemed and shall constitute the Term Loan for all purposes of this Agreement and the other Loan Documents. Following the Closing Date, the principal amount of the Term Loan shall be repaid in consecutive monthly installments in an amount equal to $103,687.00, with each such installment payable on the first day of each calendar month commencing with the calendar month beginning on December 1, 2023. The outstanding unpaid principal balance and all accrued and unpaid interest on the Term Loan shall be due and payable on the earlier of (i) the Maturity Date and (ii) the date on which the Term Loan otherwise becomes due and payable pursuant to the terms of this Agreement. Any principal amount of the Term Loan that is repaid or prepaid may not be reborrowed. All principal of, interest on, and other amounts payable in respect of the Term Loan shall constitute Obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.3 <u>Borrowing Procedures</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) **Procedure for Borrowing Revolving Loans**. Provided Lender has not separately agreed that Borrowers may use the Loan Management Service, each Borrowing shall be made by a written request by an Authorized Person delivered to Lender (which may be delivered through Lender's electronic platform or portal). Such written request must be received by Lender no later than 2:00 p.m. (i) on the Business Day that is one Business Day prior to the requested Funding Date in the case of a request for a Base Rate Loan, and (ii) on the U.S. Government Securities Business Day that is three U.S. Government Securities Business Days prior to the requested Funding Date in the case of a request for a SOFR Loan, specifying (A) the amount of such Borrowing, and (B) the requested Funding Date (which shall be a Business Day); provided, that Lender may, in its sole discretion, elect to accept as timely requests that are received later than 2:00 p.m. on the applicable Business Day or U.S. Government Securities Business Day, as applicable. All Borrowing requests which are not made on-line via Lender's electronic platform or portal shall be subject to (and unless Lender elects otherwise in the exercise of its sole discretion, such Borrowings shall not be made until the completion of) Lender's authentication process (with results satisfactory to Lender) prior to the funding of any such requested Revolving 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;(b) **Making of Revolving Loans**. After receipt of a request for a Borrowing pursuant to <u>Section 2.3(a)</u>, Lender shall make the proceeds thereof available to Borrowers on the applicable Funding Date by transferring immediately available funds equal to such amount to the Designated Account; <u>provided</u>, that Lender shall not have an obligation to make any Revolving Loan, if (1) one or more of the applicable conditions precedent set forth in <u>Section 3</u> will not be satisfied on the requested Funding Date for the applicable Borrowing unless such condition has been waived, or (2) the requested Borrowing would exceed the Availability on such 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;(c) **Protective Advances and Optional Overadvances.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any contrary provision of this Agreement or any other Loan Document notwithstanding, at any time (A) after the occurrence and during the continuance of a Default or an Event of Default, or (B) that any of the other applicable conditions precedent set forth in <u>Section 3</u> are not satisfied, Lender hereby is authorized by Borrowers from time to time, in Lender's sole discretion, to make Revolving Loans to, or for the benefit of, Borrowers, that Lender, in its Permitted Discretion, deems necessary or desirable (1) to preserve or protect the Collateral, or any portion thereof, or (2) to enhance the likelihood of repayment of the Obligations (other than the Bank Product Obligations) (the Revolving Loans described in this <u>Section 2.3(c)(i)</u> shall be referred to as "<u>Protective Advances</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;(ii) Each Protective Advance and each Overadvance (each, an "<u>Extraordinary Advance</u>") shall be deemed to be a Revolving Loan hereunder (<u>except</u>, that no Extraordinary Advance shall be eligible to be a SOFR Loan), and all payments on the Extraordinary Advances, including interest thereon, shall be payable to Lender. The Extraordinary Advances shall be repayable on demand, secured by Lender's Liens, constitute Obligations hereunder, and bear interest at the rate applicable from time to time to Revolving Loans that are Base Rate Loans. The provisions of this <u>Section 2.3(c)</u> are for the exclusive benefit of Lender and are not intended to benefit Borrowers (or any other Loan Party) in any way.

&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) **Loan Management Service**. If Lender has separately agreed that Borrowers may use the Loan Management Service, Borrowers shall not request and Lender shall no longer honor a request for a Borrowing made in accordance with <u>Section 2.3(a)</u> and all Borrowings will instead be initiated by Lender and credited to the Designated Account as Revolving Loans as of the end of each Business Day in an amount sufficient to maintain an agreed upon ledger balance in the Designated Account, subject only to Availability as provided in <u>Section 2.1</u>. If Lender terminates Borrowers' access to the Loan Management Service, Borrowers may continue to request Borrowings as provided in <u>Section 2.3(a)</u>, subject to the other terms and conditions of this Agreement. Lender shall have no obligation to make a Borrowing through the Loan Management Service after the occurrence of a Default or an Event of Default, or in an amount in excess of Availability, and may terminate the Loan Management Service at any time in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.4 <u>Payments; Prepayments</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) **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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Payments by Borrowers**. Except as otherwise expressly provided herein, all payments by Borrowers shall be made (i) to Lender's Account for the account of Lender and shall be made in immediately available funds, no later than 1:30 p.m. on the date specified herein, or (ii) as otherwise specified in the applicable Cash Management Documents. Any payment received by Lender later than 1:30 p.m. shall be deemed to have been received (unless Lender, in its sole discretion, elects to credit it on the date received) on the following Business Day and any applicable interest or fee shall continue to accrue until such following Business 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Payments by Account Debtors**. Borrowers shall instruct all Account Debtors to make payments either directly to the Lockbox for deposit by Lender directly to the Lender's Account, or instruct them to deliver such payments to Lender by wire transfer, ACH, or other means as Lender may direct for deposit to the Lockbox or Lender's Account or for direct application to reduce the outstanding Revolving Loans. If any Borrower receives a payment of the Proceeds of Collateral directly, such Borrower will promptly deposit the payment or Proceeds into the Lender's Account. Until so deposited, such Borrower will hold all such payments and Proceeds in trust for Lender without commingling with other funds or 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;(b) **Apportionment and Application.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Subject to <u>Section 2.4(b)(iii)</u>, <u>Section 2.4(c)(ii)</u>, <u>Section 2.4(c)(iii)</u> and <u>Section 2.4(d)</u>, all payments to be made hereunder by Borrowers shall be remitted to Lender and all such payments, and all proceeds of Collateral received by Lender, shall be applied, so long as no Application Event has occurred and is continuing, to reduce the balance of the Revolving Loans outstanding and, thereafter, to Borrowers (to be wired to the Designated Account) or such other Person entitled thereto under 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At any time that an Application Event has occurred and is continuing, all payments remitted to Lender and all proceeds of Collateral received by Lender shall be applied by Lender to the Obligations in such order and manner as Lender shall determine in its sole discretion, and, after payment in full of the Obligations, to Borrowers (to be wired to the Designated Account) or such other Person entitled thereto under 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In each instance, so long as no Application Event has occurred and is continuing, <u>Section 2.4(b)(ii)</u> shall not apply to any payment made by Borrowers to Lender and specified by Borrowers to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In the event of a direct conflict between the priority provisions of this <u>Section 2.4</u> and any other provision contained in this Agreement or any other Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other.

&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) Optional Prepayments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **Revolving Loans**. Borrowers may prepay the principal of any Revolving Loan at any time in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **Term Loan**. Borrowers may, upon at least ten Business Days' prior written notice to Lender, prepay the principal of the Term Loan, in whole or in part. Each prepayment made pursuant to this <u>Section 2.4(c)(ii)</u> shall be accompanied by the payment of accrued interest to the date of such payment on the amount prepaid. Proceeds of the Revolving Loans shall not be used by Borrowers to make a prepayment of the Term Loan. Each such prepayment shall be applied against the remaining installments of principal due on the Term Loan in the inverse order of maturity (for the avoidance of doubt, any amount that is due and payable on the Maturity Date shall constitute an installment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **Capex Loans**. Borrowers may, upon at least ten Business Days' prior written notice to Lender, prepay the principal of the Capex Loans, in whole or in part. Each prepayment of principal made pursuant to this <u>Section 2.4(c)(iii)</u> shall be accompanied by the payment of accrued interest to the date of such payment on the amount prepaid. Proceeds of the Revolving Loans shall not be used by Borrowers to make a prepayment of the Capex Loans. Each such prepayment shall be applied against the remaining installments of principal due on the Capex Loans in the inverse order of maturity (for the avoidance of doubt, any amount that is due and payable on the Maturity Date shall constitute an installment).

&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) Mandatory Prepayments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **Borrowing Base**. If, at any time, (A) the Revolver Usage on such date exceeds (B) the lesser of (x) the Borrowing Base reflected in the Borrowing Base Certificate most recently delivered by Borrowers to Lender, or (y) the Maximum Revolver Amount, in all cases as adjusted for Reserves established by Lender in accordance with <u>Section 2.1(c)</u>, then Borrowers shall immediately prepay the Obligations in accordance with <u>Section 2.4(e)(i)</u> in an aggregate amount equal to the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **Term Loan**. At any time that the Forced Liquidation Value of any Eligible Closing Date M&E of Borrowers, as set forth in the most recent Acceptable Appraisal, if any, received by Lender in accordance with this Agreement (in each case, net of operating expenses, liquidation expenses and commissions (without duplication) estimated to be incurred in connection with the liquidation thereof), has declined such that the aggregate unpaid principal amount of Term Loan is greater than 85% of the Forced Liquidation Value of Eligible Closing Date M&E), Lender may, at its option, (A) require Borrowers to immediately prepay the unpaid principal amount of Term Loan in the amount of such excess or (B) establish a Reserve in an amount equal to such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **Dispositions**. Within one Business Day of the date of receipt by any Loan Party or any of its Subsidiaries of the Net Cash Proceeds of any voluntary or involuntary sale or disposition of assets of any Loan Party or any of its Subsidiaries (including Net Cash Proceeds of insurance or arising from casualty losses or condemnations and payments in lieu thereof, but excluding Net Cash Proceeds from sales or dispositions which qualify as Permitted Dispositions under the definition of Permitted Dispositions), Borrowers shall prepay the outstanding principal amount of the Obligations in accordance with <u>Section 2.4(e)(ii)</u> in an amount equal to 100% of such Net Cash Proceeds received by such Person in connection with such sales or dispositions; <u>provided</u>, that so long as (A) no Default or Event of Default shall have occurred and is continuing or would result therefrom, (B) Borrowers shall have given Lender prior written notice of Borrowers' intention to apply such monies to the costs of replacement of the properties or assets that are the subject of such sale or disposition or the cost of purchase or construction of other assets useful in the business of such Loan Party or its Subsidiaries, (C) the monies are held in a Deposit Account in which Lender has a perfected first-priority security interest, and (D) such Loan Party or its Subsidiary, as applicable, completes such replacement, purchase, or construction within 180 days (or 270 days in the case of any involuntary disposition resulting from a casualty loss or condemnation) after the initial receipt of such monies, then the Loan Party or such Loan Party's Subsidiary whose assets were the subject of such disposition shall have the option to apply such monies to the costs of replacement of the assets that are the subject of such sale or disposition unless and to the extent that such applicable period shall have expired without such replacement, purchase, or construction being made or completed, in which case, any amounts remaining in the Deposit Account referred to in clause (C) above shall be paid to Lender and applied in accordance with <u>Section 2.4(e)(ii)</u>; <u>provided</u>, that no Loan Party nor any of its Subsidiaries shall have the right to use such Net Cash Proceeds to make such replacements, purchases, or construction in excess of $250,000 in any given fiscal year. Nothing contained in this <u>Section 2.4(d)(iii)</u> shall permit any Loan Party or any of its Subsidiaries to sell or otherwise dispose of any assets other than in accordance with <u>Section 6.4</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;(iv) **Extraordinary Receipts**. Within one Business Day of the date of receipt by any Loan Party or any of its Subsidiaries of any Extraordinary Receipts, Borrowers shall prepay the outstanding principal amount of the Obligations in accordance with <u>Section 2.4(e)(ii)</u> in an amount equal to 100% of such Extraordinary Receipts, net of any reasonable expenses incurred in collecting such Extraordinary Receipts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **Indebtedness**. Within one Business Day of the date of incurrence by any Loan Party or any of its Subsidiaries of any Indebtedness (other than Permitted Indebtedness), Borrowers shall prepay the outstanding principal amount of the Obligations in accordance with <u>Section 2.4(e)(ii)</u> in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection with such incurrence. The provisions of this <u>Section 2.4(d)(v)</u> shall not be deemed to be implied consent to any such incurrence otherwise prohibited by 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) **Equity**. Within one Business Day of the date of the issuance by any Loan Party or any of its Subsidiaries of any Equity Interests (other than (A) in the event that any Loan Party or any of its Subsidiaries forms any Subsidiary in accordance with the terms hereof, the issuance by such Subsidiary of Equity Interests to such Loan Party or such Subsidiary, as applicable, (B) the issuance of Equity Interests by Parent to any Person that is an equity holder of Parent prior to such issuance (a "<u>Subject Holder</u>") so long as such Subject Holder did not acquire any Equity Interests of Parent so as to become a Subject Holder concurrently with, or in contemplation of, the issuance of such Equity Interests to such Subject Holder, (C) the issuance of Equity Interests of Parent to directors, officers and employees of Parent and its Subsidiaries pursuant to employee stock option plans (or other employee incentive plans or other compensation arrangements) approved by the Board of Directors, (D) the issuance of Equity Interests of Parent in order to finance the purchase consideration (or a portion thereof) in connection with a Permitted Acquisition, and (E) the issuance of Equity Interests by a Subsidiary of a Loan Party to its parent or member in connection with the contribution by such parent or member to such Subsidiary of the proceeds of an issuance described in clauses (A) – (D) above), Borrowers shall prepay the outstanding principal amount of the Obligations in accordance with <u>Section 2.4(e)(ii)</u> in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection with such issuance. The provisions of this <u>Section 2.4(d)(vi)</u> shall not be deemed to be implied consent to any such issuance otherwise prohibited by 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) **Capex Loans**. At any time that the Forced Liquidation Value of any Eligible New M&E of Borrowers, as set forth in the most recent Acceptable Appraisal, if any, received by Lender in accordance with this Agreement (in each case, net of operating expenses, liquidation expenses and commissions (without duplication) estimated to be incurred in connection with the liquidation thereof), has declined such that the aggregate unpaid principal amount of all Capex Loans is greater than 85% of the Forced Liquidation Value of all Eligible New M&E), Lender may, at its option, (A) require Borrowers to immediately prepay the unpaid principal amount of Capex Loans in the amount of such excess or (B) establish a Reserve in an amount equal to such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) **Opus Purchased Cash**. Within 10 days of the Closing Date, Borrowers shall prepay the outstanding principal amount of the Obligations in accordance with <u>Section 2.4(e)(i)</u> in an amount equal the Opus Purchased Cash Prepayment 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; (e) Application of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) Each prepayment pursuant to <u>Section 2.4(d)(i)</u> or <u>2.4(d)(viii)</u> shall, (1) so long as no Application Event shall have occurred and be continuing, be applied, *first*, to the outstanding principal amount of the Revolving Loans until paid in full, and *second*, to cash collateralize the Letters of Credit in an amount equal to 110% of the then outstanding Letter of Credit Usage, and (2) if an Application Event shall have occurred and be continuing, be applied in the manner set forth in <u>Section 2.4(b)(ii)</u>, (B) each prepayment pursuant to <u>Section 2.4(d)(ii)</u> shall (1) so long as no Application Event shall have occurred and be continuing, be applied to the outstanding principal amount of the Term Loan until paid in full, and (2) if an Application Event shall have occurred and be continuing, be applied in the manner set forth in <u>Section 2.4(b)(ii)</u>, and (C) each prepayment pursuant to <u>Section 2.4(d)(vii)</u> shall (1) so long as no Application Event shall have occurred and be continuing, be applied to the outstanding principal amount of the Capex Loans until paid in full, and (2) if an Application Event shall have occurred and be continuing, be applied in the manner set forth in <u>Section 2.4(b)(ii)</u>. Each such prepayment of the Term Loan shall be applied against the remaining installments of principal of the Term Loan in the inverse order of maturity (for the avoidance of doubt, any amount that is due and payable on the Maturity Date shall constitute an installment). Each such prepayment of the Capex Loans shall be applied against the remaining installments of principal of the Capex Loans in the inverse order of maturity (for the avoidance of doubt, any amount that is due and payable on the Maturity Date shall constitute an installment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each prepayment pursuant to <u>Section 2.4(d)(iii)</u>, <u>2.4(d)(iv)</u>, <u>2.4(d)(v)</u>, or <u>2.4(d)(vi)</u> shall, (A) so long as no Application Event shall have occurred and be continuing, be applied, *first*, to the outstanding principal amount of the Term Loan until paid in full, *second*, to the outstanding principal amount of the Capex Loans until paid in full, *third*, to the outstanding principal amount of the Revolving Loans (with a corresponding permanent reduction in the Maximum Revolver Amount), until paid in full, and *fourth*, to cash collateralize the Letters of Credit in an amount equal to 110% of the then outstanding Letter of Credit Usage (with a corresponding permanent reduction in the Maximum Revolver Amount), and (B) if an Application Event shall have occurred and be continuing, be applied in the manner set forth in <u>Section 2.4(b)(ii)</u>. Each such prepayment of the Term Loan shall be applied against the remaining installments of principal of the Term Loan in the inverse order of maturity (for the avoidance of doubt, any amount that is due and payable on the Maturity Date shall constitute an installment). Each such prepayment of the Capex Loans shall be applied against the remaining installments of principal of the Capex Loans in the inverse order of maturity (for the avoidance of doubt, any amount that is due and payable on the Maturity Date shall constitute an installment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.5 <u>Promise to Pay; Promissory 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) Borrowers agree to pay the Lender Expenses on the earlier of (a) the first day of the month following the date on which the applicable Lender Expenses were first incurred, or (b) the date on which demand therefor is made by Lender (it being acknowledged and agreed that any charging of such costs, expenses or Lender Expenses to the Loan Account pursuant to the provisions of <u>Section 2.6(d)</u> shall be deemed to constitute a demand for payment thereof for the purposes of this subclause (b)). Borrowers promise to pay all of the Obligations (including principal, interest, premiums, if any, fees, costs, and expenses (including Lender Expenses)) in full on the Maturity Date or, if earlier, on the date on which the Obligations (other than the Bank Product Obligations) become due and payable pursuant to the terms of this Agreement. Borrowers agree that their obligations contained in the first sentence of this <u>Section 2.5</u> shall survive payment or satisfaction in full of all other 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) Lender may request that any portion of its Commitments or the Loans made by it be evidenced by one or more promissory notes. In such event, Borrowers shall execute and deliver to Lender the requested promissory notes payable to the order of Lender in a form furnished by Lender and reasonably satisfactory to Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.6 <u>Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations</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) **Interest Rates**. Except as provided in <u>Section 2.6(c)</u>, all Obligations (except for undrawn Letters of Credit) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest 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;(i) if the relevant Obligation is a SOFR Loan, at a *per annum rate* equal to Term SOFR *<u>plus</u>* the SOFR 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) otherwise, at a *per annum rate* equal to the Base Rate *<u>plus</u>* the Base Rate Margin.

&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) **Letter of Credit Fee**. Borrowers shall pay Lender a Letter of Credit fee (the "<u>Letter of Credit Fee</u>") (which fee shall be in addition to the fronting fees and commissions, other fees, charges and expenses set forth in <u>Section 2.11(j)</u>) that shall accrue at a *per annum* rate equal to the Revolving Loan SOFR Margin <u>times</u> the average amount of the Letter of Credit Usage during the immediately preceding month.

&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) **Default Rate**. (i) Automatically upon the occurrence and during the continuation of an Event of Default under <u>Section 8.4</u> or <u>8.5</u>, and (ii) upon the occurrence and during the continuation of any other Event of Default (other than an Event of Default under <u>Section 8.4</u> or <u>8.5</u>), at the election of Lender and upon written notice by Lender to Borrowers of such election (<u>provided</u>, that such notice shall not be required for any Event of Default under <u>Section 8.1</u>), (A) all Loans and all other Obligations (except for undrawn Letters of Credit) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest at a *per annum* rate equal to two percentage points above the *per annum* rate otherwise applicable thereunder, and (B) the Letter of Credit Fee shall be increased to two percentage points above the *per annum* rate otherwise applicable hereunder. For the avoidance of doubt, in the case of an Event of Default described in clause (ii) above, Lender may elect to impose the default rates under subclauses (A) and (B) above effective as of the date of the occurrence of such Event of Default or as of any date after the occurrence of such Event of Default regardless of the date Lender gives written notice of its election to impose such default rates and regardless of the date Lender received notice of, or obtained knowledge of, the occurrence of such 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;(d) **Payment**. Except to the extent provided to the contrary in <u>Section 2.10</u>, <u>Section 2.11(j)</u> or <u>Section 2.12(a)</u>, (i) all interest and all other fees payable hereunder or under any of the other Loan Documents (other than Letter of Credit Fees) shall be due and payable, in arrears, on the first day of each month, (ii) all Letter of Credit Fees payable hereunder, and all commissions, other fees, charges and expenses provided for in <u>Section 2.11(j)</u> shall be due and payable, in arrears, on the first Business Day of each month, and (iii) all costs and expenses payable hereunder or under any of the other Loan Documents, and all other Lender Expenses shall be due and payable on (x) with respect to Lender Expenses outstanding as of the Closing Date, the Closing Date, and (y) otherwise, the earlier of (A) the first day of the month following the date on which the applicable costs, expenses, or Lender Expenses were first incurred, or (B) the date on which demand therefor is made by Lender (it being acknowledged and agreed that any charging of such costs, expenses or Lender Expenses to the Loan Account pursuant to the provisions of the following sentence shall be deemed to constitute a demand for payment thereof for the purposes of this subclause (y)). Borrowers hereby authorize Lender, from time to time without prior notice to Borrowers, to charge to the Loan Account (A) on the first day of each month, all interest accrued during the prior month on the Revolving Loans, the Term Loan or the Capex Loans hereunder, (B) on the first Business Day of each month, all Letter of Credit Fees accrued or chargeable hereunder during the prior month, (C) [reserved], (D) on the first day of each month, the Unused Line Fee accrued during the prior month pursuant to <u>Section 2.10(c)</u>, (E) as and when due and payable, all other fees payable hereunder or under any of the other Loan Documents, (F) on the Closing Date and thereafter as and when incurred or accrued, all other Lender Expenses, and (G) as and when due and payable all other payment obligations payable under any Loan Document or any Bank Product Agreement (including any amounts due and payable to the Bank Product Providers in respect of Bank Products). All amounts (including interest, fees, costs, expenses, Lender Expenses, or other amounts payable hereunder or under any other Loan Document or under any Bank Product Agreement) charged to the Loan Account shall thereupon constitute Revolving Loans hereunder, shall constitute Obligations hereunder, and shall accrue interest at the rate then applicable to Revolving Loans that are Base Rate Loans (unless and until converted into SOFR Loans 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;(e) **Computation**. All interest and fees chargeable under the Loan Documents shall be computed on the basis of a 360 day year, in each case, for the actual number of days elapsed in the period during which the interest or fees accrue. In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the Base Rate automatically and immediately shall be increased or decreased by an amount equal to such change in the Base 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;(f) **Intent to Limit Charges to Maximum Lawful Rate**. In no event shall the interest rate or rates payable under this Agreement, *<u>plus</u>* any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem applicable. Borrowers and Lender, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; <u>provided</u>, that anything contained herein to the contrary notwithstanding, if such rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, *ipso facto*, as of the date of this Agreement, Borrowers are and shall be liable only for the payment of such maximum amount as is allowed by law, and payment received from Borrowers in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess.

&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) **Term SOFR Conforming Changes**. In connection with the use or administration of Term SOFR, Lender 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. Lender will promptly notify Administrative Borrower of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 **<u>Crediting Payments</u>**. The receipt of any payment item by Lender shall not be required to be considered a payment on account unless such payment item is a wire transfer of immediately available funds made to Lender's Account or unless and until such payment item is honored when presented for payment. Should any payment item not be honored when presented for payment, then Borrowers shall be deemed not to have made such payment. Anything to the contrary contained herein notwithstanding, for purposes of calculating Availability and the accrual of interest on outstanding Obligations, each payment shall be applied to the Obligations as of the first Business Day following the Business Day of deposit to the Lender's Account of immediately available funds or other receipt of immediately available funds by Lender provided such payment is received in accordance with Lender's usual and customary practices as in effect from time to time. Any payment received by Lender that is not a transfer of immediately available funds shall be considered provisional until the item or items representing such payment have been finally paid under applicable law. Each reduction in outstanding Revolving Loans resulting from the application of such payment to the outstanding Revolving Loans shall be accompanied by an equal reduction in the amount of outstanding Accounts. In the event of any inconsistency between the provisions of this <u>Section 2.7</u> and the provisions of any Cash Management Document, the provisions of this <u>Section 2.7</u> shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 **<u>Designated Account</u>**. Lender is authorized to make the Revolving Loans, the Term Loan and the Capex Loans, and Lender is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received from anyone purporting to be an Authorized Person or, without instructions, if pursuant to <u>Section 2.6(d)</u>. Borrowers agree to establish and maintain the Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of the Revolving Loans requested by Borrowers and made by Lender hereunder. Unless otherwise agreed by Lender and Borrowers, any Revolving Loan and any Capex Loan requested by Borrowers and made by Lender hereunder shall be made to the Designated Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 **<u>Maintenance of Loan Account; Statements of Obligations</u>**. Lender shall maintain an account on its books in the name of Borrowers (the "<u>Loan Account</u>") on which Borrowers will be charged with the Term Loan, all Revolving Loans (including Extraordinary Advances) and all Capex Loans made by Lender to Borrowers or for Borrowers' account, the Letters of Credit issued or arranged by Lender for Borrowers' account, and with all other payment Obligations hereunder or under the other Loan Documents, including, accrued interest, fees and expenses, and Lender Expenses. In accordance with <u>Section 2.7</u>, the Loan Account will be credited with all payments received by Lender from Borrowers or for Borrowers' account. Lender shall make available to Borrowers monthly statements regarding the Loan Account, including the principal amount of the Term Loan, the Revolving Loans and the Capex Loans, interest accrued hereunder, fees accrued or charged hereunder or under the other Loan Documents, and a summary itemization of all charges and expenses constituting Lender Expenses accrued hereunder or under the other Loan Documents, and each such statement, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrowers and Lender unless, within 30 days after Lender first makes such a statement available to Borrowers, Borrowers shall deliver to Lender written objection thereto describing the error or errors contained in such statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.10 <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) **Closing Fee**. Borrowers shall pay to Lender a one-time closing fee of$126,774.21, which shall be fully earned and payable 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; (b) [**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;(c) **Unused Line Fee**. Borrowers shall pay to Lender an unused line fee (the "<u>Unused Line Fee</u>") in an amount equal to the Applicable Unused Line Fee Percentage *per annum* times the result of (i) the aggregate amount of the Revolver Commitments, less (ii) the Average Revolver Usage during the immediately preceding month (or portion thereof), which Unused Line Fee shall be due and payable, in arrears, on the first day of each month from and after the Closing Date up to the first day of the month prior to the date on which the Obligations are paid in full and on the date on which the Obligations are 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;(d) **Servicing Fee**. Borrowers shall pay to Lender an annual servicing fee of $18,000 per year, which fee shall be due and payable (i) on the Closing Date and (ii) thereafter, on each anniversary of the Closing Date, until the date the Obligations are paid in full, which servicing fee shall be paid on the first day of each calendar month immediately following each anniversary 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;(e) **Field Examination, Appraisal and Other Fees**. Subject to any limitations set forth in <u>Section 5.7(c)</u>, Borrowers shall pay to Lender field examination, appraisal, and valuation fees and charges, as and when incurred or chargeable, as follows (i) the per diem charge at Lender's then standard rate for examiners in the field and office, plus out-of-pocket expenses (including travel, meals, and lodging) for each field examination of any Loan Party or its Subsidiaries performed by or on behalf of Lender, and (ii) the fees, charges or expenses paid or incurred by Lender if it elects to employ the services of one or more third Persons to appraise the Collateral, or any portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.11 <u>Letters of Credit</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) Subject to the terms and conditions of this Agreement, upon the request of Borrowers made in accordance herewith, and prior to the Maturity Date, Lender agrees to issue a requested standby Letter of Credit or a sight commercial Letter of Credit for the account of Borrowers. By submitting a request to Lender for the issuance of a Letter of Credit, Borrowers shall be deemed to have requested that Lender issue the requested Letter of Credit. Each request for the issuance of a Letter of Credit, or the amendment, renewal, or extension of any outstanding Letter of Credit, shall be (i) irrevocable and made in writing by an Authorized Person, (ii) delivered to Lender via telefacsimile or other electronic method of transmission reasonably acceptable to Lender and reasonably in advance of the requested date of issuance, amendment, renewal, or extension, and (iii) subject to Lender's authentication procedures with results satisfactory to Lender. Each such request shall be in form and substance reasonably satisfactory to Lender and (i) shall specify (A) the amount of such Letter of Credit, (B) the date of issuance, amendment, renewal, or extension of such Letter of Credit, (C) the proposed expiration date of such Letter of Credit, (D) the name and address of the beneficiary of the Letter of Credit, and (E) such other information (including, the conditions to drawing, and, in the case of an amendment, renewal, or extension, identification of the Letter of Credit to be so amended, renewed, or extended) as shall be necessary to prepare, amend, renew, or extend such Letter of Credit, and (ii) shall be accompanied by such Issuer Documents as Lender may request or require, to the extent that such requests or requirements are consistent with the Issuer Documents that Lender generally requests for Letters of Credit in similar circumstances. Lender's records of the content of any such request will be conclusive. Anything contained herein to the contrary notwithstanding, Lender may, but shall not be obligated to, issue a Letter of Credit that supports the obligations of a Loan Party or one of its Subsidiaries in respect of (x) a lease of real property to the extent that the face amount of such Letter of Credit exceeds the highest rent (including all rent-like charges) payable under such lease for a period of one year, or (y) an employment contract to the extent that the face amount of such Letter of Credit exceeds the highest compensation payable under such contract for a period of one 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;(b) Lender shall have no obligation to issue a Letter of Credit if any of the following would result after giving effect to the requested issuance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Letter of Credit Usage would exceed the Letter of Credit Sublimit, 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) the Letter of Credit Usage would exceed the Maximum Revolver Amount *<u>less</u>* the outstanding amount of Revolving Loans, 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;(iii) the Letter of Credit Usage would exceed the Borrowing Base at such time *<u>less</u>* the outstanding principal balance of the Revolving Loans at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lender shall have no obligation to issue or extend a Letter of Credit if (A) any order, judgment, or decree of any Governmental Authority or arbitrator shall, by its terms, purport to enjoin or restrain Lender from issuing such Letter of Credit, or any law applicable to Lender or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over Lender shall prohibit or request that Lender refrain from the issuance of letters of credit generally or such Letter of Credit in particular, (B) the issuance of such Letter of Credit would violate one or more policies of Lender applicable to letters of credit generally, or (C) if amounts demanded to be paid under any Letter of Credit will not or may not be in United States Dollars.

&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) Each Letter of Credit shall be in form and substance reasonably acceptable to Lender, including the requirement that the amounts payable thereunder must be payable in Dollars. If Lender makes a payment under a Letter of Credit, Borrowers shall pay to Lender an amount equal to the applicable Letter of Credit Disbursement on the Business Day such Letter of Credit Disbursement is made and, in the absence of such payment, the amount of the Letter of Credit Disbursement immediately and automatically shall be deemed to be a Revolving Loan hereunder (notwithstanding any failure to satisfy any condition precedent set forth in <u>Section 3</u>) and, initially, shall bear interest at the rate then applicable to Revolving Loans that are Base Rate Loans. If a Letter of Credit Disbursement is deemed to be a Revolving Loan hereunder, Borrowers' obligation to pay the amount of such Letter of Credit Disbursement to Lender shall be automatically converted into an obligation to pay the resulting Revolving 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;(e) Each Borrower agrees to indemnify, defend and hold harmless Lender (including its branches, Affiliates, and correspondents) and each such Person's respective directors, officers, employees, attorneys and agents (each, including Lender, a "<u>Letter of Credit Related Person</u>") (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses actually incurred in connection therewith or in connection with the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), which may be incurred by or awarded against any such Letter of Credit Related Person (other than Taxes, which shall be governed by <u>Section 15</u>) (the "<u>Letter of Credit Indemnified Costs</u>"), and which arise out of or in connection with, or as a result 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) any Letter of Credit or any pre-advice of its issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any transfer, sale, delivery, surrender or endorsement (or lack thereof) of any Drawing Document at any time(s) held by any such Letter of Credit Related Person in connection with any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any action or proceeding arising out of, or in connection with, any Letter of Credit (whether administrative, judicial or in connection with arbitration), including any action or proceeding to compel or restrain any presentation or payment under any Letter of Credit, or for the wrongful dishonor of, or honoring a presentation under, any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any independent undertakings issued by the beneficiary of any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 unauthorized instruction or request made to Lender in connection with any Letter of Credit or requested Letter of Credit, or any error, omission, interruption or delay in such instruction or request, whether transmitted by mail, courier, electronic transmission, SWIFT, or any other telecommunication, including communications through a correspondent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) an adviser, confirmer or other nominated person seeking to be reimbursed, indemnified or compensated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any third party seeking to enforce the rights of an applicant, beneficiary, nominated person, transferee, assignee of Letter of Credit proceeds or holder of an instrument or document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the fraud, forgery or illegal action of parties other than the Letter of Credit Related 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;(ix) any prohibition on payment or delay in payment of any amount payable by Lender to a beneficiary or transferee beneficiary of a Letter of Credit arising out of Anti-Corruption Laws, Anti-Money Laundering Laws, or Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender's performance of the obligations of a confirming institution or entity that wrongfully dishonors a confirmation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any foreign language translation provided to Lender in connection with any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any foreign law or usage as it relates to Lender's issuance of a Letter of Credit in support of a foreign guaranty, including, without limitation, the expiration of such guaranty after the related Letter of Credit expiration date and any resulting drawing paid by Lender 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) the acts or omissions, whether rightful or wrongful, of any present or future de jure or de facto governmental or regulatory authority or cause or event beyond the control of the Letter of Credit Related Person;

<u>provided</u>, that such indemnity shall not be available to any Letter of Credit Related Person claiming indemnification under clauses (i) through (x) above to the extent that such Letter of Credit Indemnified Costs may be finally determined in a final, non-appealable judgment of a court of competent jurisdiction to have resulted directly from the gross negligence or willful misconduct of the Letter of Credit Related Person claiming indemnity. Borrowers hereby agree to pay the Letter of Credit Related Person claiming indemnity on demand from time to time all amounts owing under this <u>Section 2.11(e)</u>. If and to the extent that the obligations of Borrowers under this <u>Section 2.11(e)</u> are unenforceable for any reason, Borrowers agree to make the maximum contribution to the Letter of Credit Indemnified Costs permissible under applicable law. This indemnification provision shall survive termination of this Agreement and all Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The liability of Lender (or any other Letter of Credit Related Person) under, in connection with or arising out of any Letter of Credit (or pre-advice), regardless of the form or legal grounds of the action or proceeding, shall be limited to direct damages suffered by Borrowers that are caused directly by Lender's gross negligence or willful misconduct in (i) honoring a presentation under a Letter of Credit that on its face does not at least substantially comply with the terms and conditions of such Letter of Credit, (ii) failing to honor a presentation under a Letter of Credit that strictly complies with the terms and conditions of such Letter of Credit, or (iii) retaining Drawing Documents presented under a Letter of Credit. Borrowers' aggregate remedies against Lender and any Letter of Credit Related Person for wrongfully honoring a presentation under any Letter of Credit or wrongfully retaining honored Drawing Documents shall in no event exceed the aggregate amount paid by Borrowers to Lender in respect of the honored presentation in connection with such Letter of Credit under <u>Section 2.11(d)</u>, *<u>plus</u>* interest at the rate then applicable to Base Rate Loans hereunder. Borrowers shall take action to avoid and mitigate the amount of any damages claimed against Lender or any other Letter of Credit Related Person, including by enforcing its rights against the beneficiaries of the Letters of Credit. Any claim by Borrowers under or in connection with any Letter of Credit shall be reduced by an amount equal to the sum of (x) the amount (if any) saved by Borrowers as a result of the breach or alleged wrongful conduct complained of, and (y) the amount (if any) of the loss that would have been avoided had Borrowers taken all reasonable steps to mitigate any loss, and in case of a claim of wrongful dishonor, by specifically and timely authorizing Lender to effect a cure.

&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) Borrowers are responsible for the final text of the Letter of Credit as issued by Lender, irrespective of any assistance Lender may provide such as drafting or recommending text or by Lender's use or refusal to use text submitted by Borrowers. Borrowers understand that the final form of any Letter of Credit may be subject to such revisions and changes as are deemed necessary or appropriate by Lender, and Borrowers hereby consent to such revisions and changes not materially different from the application executed in connection therewith. Borrowers are solely responsible for the suitability of the Letter of Credit for Borrowers' purposes. If Borrowers request Lender to issue a Letter of Credit for an affiliated or unaffiliated third party (an "<u>Account Party</u>"), (i) such Account Party shall have no rights against Lender; (ii) Borrowers shall be responsible for the application and obligations under this Agreement; and (iii) communications (including notices) related to the respective Letter of Credit shall be among Lender and Borrowers. Borrowers will examine the copy of the Letter of Credit and any other documents sent by Lender in connection therewith and shall promptly notify Lender (not later than three (3) Business Days following Borrowers' receipt of documents from Lender) of any non-compliance with Borrowers' instructions and of any discrepancy in any document under any presentment or other irregularity. Borrowers understand and agree that Lender is not required to extend the expiration date of any Letter of Credit for any reason. With respect to any Letter of Credit containing an "automatic amendment" to extend the expiration date of such Letter of Credit, Lender, in its sole and absolute discretion, may give notice of nonrenewal of such Letter of Credit and, if Borrowers do not at any time want the then current expiration date of such Letter of Credit to be extended, Borrowers will so notify Lender at least 30 calendar days before Lender is required to notify the beneficiary of such Letter of Credit or any advising bank of such non-extension pursuant to the terms of such Letter of Credit.

&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) Borrowers' reimbursement and payment obligations under this <u>Section 2.11</u> are absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lack of validity, enforceability or legal effect of any Letter of Credit, any Issuer Document, this Agreement or any Loan Document or any term or provision therein or 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;(ii) payment against presentation of any draft, demand or claim for payment under any Drawing Document that does not comply in whole or in part with the terms of the applicable Letter of Credit or which proves to be fraudulent, forged or invalid in any respect or any statement therein being untrue or inaccurate in any respect, or which is signed, issued or presented by a Person or a transferee of such Person purporting to be a successor or transferee of the beneficiary of such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender or any of its branches or Affiliates being the beneficiary of any Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender or any correspondent honoring a drawing against a Drawing Document up to the amount available under any Letter of Credit even if such Drawing Document claims an amount in excess of the amount available under the Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the existence of any claim, set-off, defense or other right that any Loan Party or any of its Subsidiaries may have at any time against any beneficiary or transferee beneficiary, any assignee of proceeds, Lender or any other 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;(vi) Lender or any correspondent honoring a drawing upon receipt of an electronic presentation under a Letter of Credit requiring the same, regardless of whether the original Drawing Documents arrive at Lender's counters or are different from the electronic presentation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other event, circumstance or conduct whatsoever, whether or not similar to any of the foregoing that might, but for this <u>Section 2.11(h)</u>, constitute a legal or equitable defense to or discharge of, or provide a right of set-off against, any Borrower's or any of its Subsidiaries' reimbursement and other payment obligations and liabilities, arising under, or in connection with, any Letter of Credit, whether against Lender, the beneficiary or any other Person; 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;(viii) the fact that any Default or Event of Default shall have occurred and be continuing;

<u>provided</u>, that subject to <u>Section 2.11(f)</u> above, the foregoing shall not release Lender from such liability to Borrowers as may be finally determined in a final, non-appealable judgment of a court of competent jurisdiction against Lender following reimbursement or payment of the obligations and liabilities, including reimbursement and other payment obligations, of Borrowers to Lender arising under, or in connection with, this <u>Section 2.11</u> or any Letter of Credit. (i) Without limiting any other provision of this Agreement, Lender and each other Letter of Credit Related Person (if applicable) shall not be responsible to Borrowers for, and Lender's rights and remedies against Borrowers and the obligation of Borrowers to reimburse Lender for each drawing under each Letter of Credit shall not be impaired 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;(i) honor of a presentation under any Letter of Credit that on its face substantially complies with the terms and conditions of such Letter of Credit, even if the Letter of Credit requires strict compliance by the beneficiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) honor of a presentation of any Drawing Document that appears on its face to have been signed, presented or issued (A) by any purported successor or transferee of any beneficiary or other Person required to sign, present or issue such Drawing Document or (B) under a new name of the beneficiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) acceptance as a draft of any written or electronic demand or request for payment under a Letter of Credit, even if nonnegotiable or not in the form of a draft or notwithstanding any requirement that such draft, demand or request bear any or adequate reference to the Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the identity or authority of any presenter or signer of any Drawing Document or the form, accuracy, genuineness or legal effect of any Drawing Document (other than Lender's determination that such Drawing Document appears on its face substantially to comply with the terms and conditions of the Letter of Credit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) acting upon any instruction or request relative to a Letter of Credit or requested Letter of Credit that Lender in good faith believes to have been given by a Person authorized to give such instruction or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any errors, omissions, interruptions or delays in transmission or delivery of any message, advice or document (regardless of how sent or transmitted) or for errors in interpretation of technical terms or in translation or any delay in giving or failing to give notice to any 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any acts, omissions or fraud by, or the insolvency of, any beneficiary, any nominated person or entity or any other Person or any breach of contract between any beneficiary and any Borrower or any of the parties to the underlying transaction to which the Letter of Credit relates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) assertion or waiver of any provision of the ISP or UCP that primarily benefits an issuer of a letter of credit, including any requirement that any Drawing Document be presented to it at a particular hour or place;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) payment to any presenting bank (designated or permitted by the terms of the applicable Letter of Credit) claiming that it rightfully honored or is entitled to reimbursement or indemnity under Standard Letter of Credit Practice applicable to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) acting or failing to act as required or permitted under Standard Letter of Credit Practice applicable to where Lender has issued, confirmed, advised or negotiated such Letter of Credit, as the case may 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) honor of a presentation after the expiration date of any Letter of Credit notwithstanding that a presentation was made prior to such expiration date and dishonored by Lender if subsequently Lender or any court or other finder of fact determines such presentation should have been honored;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) dishonor of any presentation that does not strictly comply or that is fraudulent, forged or otherwise not entitled to honor; 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;(xiii) honor of a presentation that is subsequently determined by Lender to have been made in violation of international, federal, state or local restrictions on the transaction of business with certain prohibited Persons.

&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) Borrowers shall pay immediately upon demand to Lender for the account of Lender as non-refundable fees, commissions, and charges (it being acknowledged and agreed that any charging of such fees, commissions, and charges to the Loan Account pursuant to the provisions of <u>Section 2.6(d)</u> shall be deemed to constitute a demand for payment thereof for the purposes of this <u>Section 2.11(j)</u>): (i) a fronting fee which shall be imposed by Lender equal to 0.125% per annum <u>times</u> the average amount of the Letter of Credit Usage during the immediately preceding month, *<u>plus</u>* (ii) any and all customary commissions, fees and charges then in effect imposed by, and any and all expenses incurred by, Lender, or by any adviser, confirming institution or entity or other nominated person, relating to Letters of Credit, at the time of issuance of any Letter of Credit and upon the occurrence of any other activity with respect to any Letter of Credit (including transfers, assignments of proceeds, amendments, drawings, renewals or cancellations).

&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) If by reason of (x) any Change in Law, or (y) compliance by Lender with any direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or monetary authority including, Regulation D of the Board of Governors as from time to time in effect (and any successor 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of Credit issued or caused to be issued hereunder or hereby, or any Loans or obligations to make Loans hereunder or hereby, 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) there shall be imposed on Lender any other condition regarding any Letter of Credit, Loans, or obligations to make Loans hereunder, and the result of the foregoing is to increase, directly or indirectly, the cost to Lender of issuing, making, participating in, or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof, then, and in any such case, Lender may, at any time within a reasonable period after the additional cost is incurred or the amount received is reduced, notify Borrowers, and Borrowers shall pay within 30 days after demand therefor, such amounts as Lender may specify to be necessary to compensate Lender for such additional cost or reduced receipt, together with interest on such amount from the date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans hereunder; <u>provided</u>, that (A) Borrowers shall not be required to provide any compensation pursuant to this <u>Section 2.11(k)</u> for any such amounts incurred more than 180 days prior to the date on which the demand for payment of such amounts is first made to Borrowers, and (B) if an event or circumstance giving rise to such amounts is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof. The determination by Lender of any amount due pursuant to this <u>Section 2.11(k)</u>, as set forth in a certificate setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final and conclusive and binding on all of the parties 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;(l) Each standby Letter of Credit shall expire not later than the date that is 12 months after the date of the issuance of such Letter of Credit; <u>provided</u>, that any standby Letter of Credit may provide for the automatic extension thereof for any number of additional periods each of up to one year in duration; <u>provided, further</u>, that with respect to any Letter of Credit which extends beyond the Maturity Date, Letter of Credit Collateralization shall be provided therefor on or before the date that is five Business Days prior to the Maturity Date. Each commercial Letter of Credit shall expire on the earlier of (i) 120 days after the date of the issuance of such commercial Letter of Credit and (ii) five Business 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;(m) If (i) any Event of Default shall occur and be continuing, or (ii) Availability shall at any time be less than zero, then on the Business Day following the date when the Administrative Borrower receives notice from Lender demanding Letter of Credit Collateralization pursuant to this <u>Section 2.11(m)</u> upon such demand, Borrowers shall provide Letter of Credit Collateralization with respect to the then existing Letter of Credit Usage. If Borrowers fail to provide Letter of Credit Collateralization as required by this <u>Section 2.11(m)</u>, Lender may advance as Revolving Loans the amount of the cash collateral required pursuant to the Letter of Credit Collateralization provision so that the then existing Letter of Credit Usage is cash collateralized in accordance with the Letter of Credit Collateralization provision (whether or not the Revolver Commitment has terminated, an Overadvance exists or the conditions in <u>Section 3</u> are 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;(n) Unless otherwise expressly agreed by Lender and Borrowers when a Letter of Credit is issued, (i) the rules of the ISP shall apply to each standby Letter of Credit, and (ii) the rules of the UCP shall apply to each commercial Letter of Credit.

&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) Lender shall be deemed to have acted with due diligence and reasonable care if Lender's conduct is in accordance with Standard Letter of Credit Practice or 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;(p) In the event of a direct conflict between the provisions of this <u>Section 2.11</u> and any provision contained in any Issuer Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this <u>Section 2.11</u> shall control and govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The provisions of this <u>Section 2.11</u> shall survive the termination of this Agreement and the repayment in full of the Obligations with respect to any Letters of Credit that remain outstanding.

&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) At Borrowers' cost and expense, Borrowers shall execute and deliver to Lender such additional certificates, instruments and/or documents and take such additional action as may be reasonably requested by Lender to enable Lender to issue any Letter of Credit pursuant to this Agreement and related Issuer Document, to protect, exercise and/or enforce Lender's rights and interests under this Agreement or to give effect to the terms and provisions of this Agreement or any Issuer Document. Each Borrower irrevocably appoints Lender as its attorney-in-fact and authorizes Lender, without notice to Borrowers, to execute and deliver ancillary documents and letters customary in the letter of credit business that may include but are not limited to advisements, indemnities, checks, bills of exchange and issuance documents. The power of attorney granted by Borrowers is limited solely to such actions related to the issuance, confirmation or amendment of any Letter of Credit and to ancillary documents or letters customary in the letter of credit business. This appointment is coupled with an interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.12 <u>SOFR Option</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Interest and Interest Payment Dates**. In lieu of having interest charged at the rate based upon the Base Rate, Borrowers shall have the option, subject to <u>Section 2.12(b)</u> below (the "<u>SOFR Option</u>") to have interest on all or a portion of the Revolving Loans, the Term Loan or the Capex Loans be charged (whether at the time when made (unless otherwise provided herein), upon conversion from a Base Rate Loan to a SOFR Loan, or upon continuation of a SOFR Loan as a SOFR Loan) at a rate of interest based upon Term SOFR. Interest on SOFR Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable thereto; <u>provided</u>, that subject to the following clauses (ii) and (iii), in the case of any Interest Period greater than three months in duration, interest shall be payable at three month intervals after the commencement of the applicable Interest Period and on the last day of such Interest Period, (ii) the date on which all or any portion of the Obligations are accelerated pursuant to the terms hereof, or (iii) the date on which this Agreement is terminated pursuant to the terms hereof. On the last day of each applicable Interest Period, unless Borrowers have properly exercised the SOFR Option with respect thereto, the interest rate applicable to such SOFR Loan automatically shall convert to the rate of interest then applicable to Base Rate Loans of the same type hereunder. At any time that an Event of Default has occurred and is continuing, at the written election of Lender, Borrowers no longer shall have the option to request that Revolving Loans or any portion of the Term Loan or a Capex Loan bear interest at a rate based upon Term SOFR.

&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) **SOFR Election.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Borrowers may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect to exercise the SOFR Option by notifying Lender prior to 11:00 a.m. at least three U.S. Government Securities Business Days prior to the commencement of the proposed Interest Period (the "<u>SOFR Deadline</u>"). Notice of Borrowers' election of the SOFR Option for a permitted portion of the Revolving Loans, the Term Loan or the Capex Loans and an Interest Period pursuant to this Section shall be made by delivery to Lender of a SOFR Notice received by Lender before the SOFR Deadline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each SOFR Notice shall be irrevocable and binding on Borrowers. In connection with each SOFR Loan, each Borrower shall indemnify, defend, and hold Lender harmless against any loss, cost, or expense actually incurred by Lender as a result of (A) the payment or required assignment of any principal of any SOFR Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (B) the conversion of any SOFR Loan other than on the last day of the Interest Period applicable thereto, or (C) the failure to borrow, convert, continue or prepay any SOFR Loan on the date specified in any SOFR Notice delivered pursuant hereto (such losses, costs, or expenses, "<u>Funding 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A certificate of Lender delivered to Borrowers setting forth in reasonable detail any amount or amounts that Lender is entitled to receive pursuant to this <u>Section 2.12</u> shall be conclusive absent manifest error. Borrowers shall pay such amount to Lender within 30 days of the date of its receipt of such certificate. If a payment of a SOFR Loan on a day other than the last day of the applicable Interest Period would result in a Funding Loss, Lender may, in its sole discretion at the request of Borrowers, hold the amount of such payment as cash collateral in support of the Obligations until the last day of such Interest Period and apply such amounts to the payment of the applicable SOFR Loan on such last day of such Interest Period, it being agreed that Lender has no obligation to so defer the application of payments to any SOFR Loan and that, in the event that Lender does not defer such application, Borrowers shall be obligated to pay any resulting Funding Losses.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Unless Lender, in its sole discretion, agrees otherwise, Borrowers shall have not more than five SOFR Loans in effect at any given time. Borrowers may only exercise the SOFR Option for proposed SOFR Loans of at <u>least</u> $1,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Conversion; Prepayment**. Borrowers may convert SOFR Loans to Base Rate Loans or prepay SOFR Loans at any time; <u>provided</u>, that in the event that SOFR Loans are converted or prepaid on any date that is not the last day of the Interest Period applicable thereto, including as a result of any prepayment through the required application by Lender of any payments or proceeds of Collateral in accordance with <u>Section 2.4(b)</u> or for any other reason, including early termination of the term of this Agreement or acceleration of all or any portion of the Obligations pursuant to the terms hereof, each Borrower shall indemnify, defend, and hold Lender and their Participants harmless against any and all Funding Losses in accordance with <u>Section 2.12 (b)(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;(d) **Special Provisions Applicable to Term SOFR.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Term SOFR may be adjusted by Lender on a prospective basis to take into account any additional or increased costs (other than Taxes which shall be governed by <u>Section 16</u>), in each case, due to changes in applicable law occurring subsequent to the commencement of the then applicable Interest Period, or pursuant to any Change in Law or change in the reserve requirements imposed by the Board of Governors, which additional or increased costs would increase the cost of funding or maintaining loans bearing interest at Term SOFR. In any such event, Lender shall give Borrowers notice of such a determination and adjustment and, upon its receipt of the notice from the Lender, Borrowers may, by notice to Lender (A) require Lender to furnish to Borrowers a statement setting forth in reasonable detail the basis for adjusting Term SOFR and the method for determining the amount of such adjustment, or (B) repay the SOFR Loans or Base Rate Loans determined with reference to Term SOFR, in each case, of Lender with respect to which such adjustment is made (together with any amounts due under <u>Section 2.12(b)(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to the provisions set forth in <u>Section 2.12(d)(iii)</u> below, in the event that any change in market conditions or any Change in Law shall at any time after the date hereof, in the reasonable opinion of Lender, make it unlawful or impractical for Lender to fund or maintain SOFR Loans (or Base Rate Loans determined with reference to Term SOFR) or to continue such funding or maintaining, or to determine or charge interest rates at the Term SOFR Reference Rate, Term SOFR, or SOFR, Lender shall give notice of such changed circumstances to Borrowers and (y)(i) in the case of any SOFR Loans of Lender that are outstanding, such SOFR Loans of Lender will be deemed to have been converted Base Rate Loans on the last day of the Interest Period of such SOFR Loans, if Lender may lawfully continue to maintain such SOFR Loans, or immediately, if Lender may not lawfully continue to maintain such SOFR Loans, and thereafter interest upon the SOFR Loans of Lender thereafter shall accrue interest at the rate then applicable to Base Rate Loans (and if applicable, without reference to the Term SOFR component thereof) and (ii) in the case of any such Base Rate Loans of Lender that are outstanding and that are determined with reference to Term SOFR, interest upon the Base Rate Loans of Lender after the date specified in Lender's notice shall accrue interest at the rate then applicable to Base Rate Loans without reference to the Term SOFR component thereof and (z) Borrowers shall not be entitled to elect the SOFR Option and Base Rate Loans shall not be determined with reference to the Term SOFR component thereof, in each case, until Lender determines that it would no longer be unlawful or impractical to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Benchmark Replacement Setting</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;(A) <u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event, Lender and Administrative Borrower 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. on the fifth Business Day after Lender has posted such proposed amendment to Administrative Borrower. No replacement of a Benchmark with a Benchmark Replacement pursuant to this <u>Section 2.12(d)(iii)</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;&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>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, Lender 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Notices; Standards for Decisions and Determinations</u>. Lender will promptly notify Administrative Borrower of (1) the implementation of any Benchmark Replacement and (2) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. Lender will notify Administrative Borrower of (x) the removal or reinstatement of any tenor of a Benchmark pursuant to <u>Section 2.12(d)(iii)(D)</u> and (y) the commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by Lender pursuant to this <u>Section 2.12(d)(iii)</u>, 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 sole 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 2.12(d)(iii)</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;(D) <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), (1) if the then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (I) 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 Lender in its reasonable discretion or (II) 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 Lender may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable, non-representative tenor and (2) if a tenor that was removed pursuant to clause (1) above either (I) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (II) 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 Lender 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Benchmark Unavailability Period</u>. Upon Administrative Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, (1) Administrative Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, Administrative Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Base Rate Loans and (2) any outstanding affected SOFR Loans will be deemed to have been converted to Base Rate Loans at the end of the applicable Interest Period. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Base 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;(e) **No Requirement of Matched Funding**. Anything to the contrary contained herein notwithstanding, Lender is not required actually to match fund any Obligation as to which interest accrues at Term SOFR or the Term SOFR Reference Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.13 <u>Capital 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;(a) If, after the date hereof, Lender determines that (i) any Change in Law regarding capital, liquidity or reserve requirements for banks or bank holding companies, or (ii) compliance by Lender or its parent bank holding companies with any guideline, request or directive of any Governmental Authority regarding capital adequacy or liquidity requirements (whether or not having the force of law), has the effect of reducing the return on Lender's or such holding companies' capital or liquidity as a consequence of Lender's commitments, Loans, participations or other obligations hereunder to a level below that which Lender or such holding companies could have achieved but for such Change in Law or compliance (taking into consideration Lender's or such holding companies' then existing policies with respect to capital adequacy or liquidity requirements and assuming the full utilization of such entity's capital) by any amount deemed by Lender to be material, then Lender may notify Borrowers thereof. Following receipt of such notice, Borrowers agree to pay Lender on demand the amount of such reduction of return of capital as and when such reduction is determined, payable within 30 days after presentation by Lender of a statement in the amount and setting forth in reasonable detail Lender's calculation thereof and the assumptions upon which such calculation was based (which statement shall be deemed true and correct absent manifest error). In determining such amount, Lender may use any reasonable averaging and attribution methods. Failure or delay on the part of Lender to demand compensation pursuant to this Section shall not constitute a waiver of Lender's right to demand such compensation; <u>provided</u>, that Borrowers shall not be required to compensate Lender pursuant to this Section for any reductions in return incurred more than 180 days prior to the date that Lender notifies Borrowers of such Change in Law giving rise to such reductions and of Lender's intention to claim compensation therefor; <u>provided, further</u>, that if such claim arises by reason of the Change in Law that is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect 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;(b) If Lender requests additional or increased costs referred to in <u>Section 2.11(k)</u> or <u>Section 2.12</u> or amounts under <u>Section 2.13(a)</u> or sends a notice under <u>Section 2.12</u> relative to changed circumstances, then, at the request of Administrative Borrower, Lender shall use reasonable efforts to promptly designate a different one of its lending offices or to assign its rights and obligations hereunder to another of its offices or branches, if (i) in the reasonable judgment of Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to <u>Section 2.11(k)</u>, <u>Section 2.12</u> or <u>Section 2.13(a)</u>, as applicable, or would eliminate the illegality or impracticality of funding or maintaining SOFR Loans (or Base Rate Loans determined with reference to Term SOFR), and (ii) in the reasonable judgment of Lender, such designation or assignment would not subject it to any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to it. Borrowers agree to pay all reasonable out-of-pocket costs and expenses incurred by Lender in connection with any such designation or assignment.

&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) Notwithstanding anything herein to the contrary, the protection of <u>Sections 2.11(k)</u>, <u>2.12</u>, and <u>2.13</u> shall be available to Lender regardless of any possible contention of the invalidity or inapplicability of the law, rule, regulation, judicial ruling, judgment, guideline, treaty or other change or condition which shall have occurred or been imposed, so long as it shall be customary for Lender to comply therewith. Notwithstanding any other provision herein, Lender shall not demand compensation pursuant to this <u>Section 2.13</u> if it shall not at the time be the general policy or practice of Lender to demand such compensation in similar circumstances under comparable provisions of other credit agreements, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.14 <u>Incremental Facilities</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) At any time from and after the Closing Date, at the request of Borrowers and in the sole discretion of Lender, the Revolver Commitments and the Maximum Revolver Amount may be increased by an amount in the aggregate for each such increase of the Revolver Commitments and the Maximum Revolver Amount not to exceed the Available Increase Amount (each such increase, an "<u>Increase</u>"); <u>provided</u>, that, after giving effect to each such Increase, the Revolver Commitments and the Maximum Revolver Amount shall in no event exceed $50,000,000. Any Increase shall be in an amount of at least $5,000,000 and integral multiples of $1,000,000 in excess thereof. In no event may the Revolver Commitments and the Maximum Revolver Amount be increased pursuant to this <u>Section 2.14</u> on more than three occasions during the term 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;(b) In the event that Lender, in its sole discretion, elects to increase the Revolver Commitments and the Maximum Revolver Amount in accordance with <u>Section 2.14(a)</u> above, any such Increase shall be subject to, among other conditions precedent, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) each of the conditions precedent set forth in <u>Section 3.2</u> are 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;(ii) in connection with any Increase, if any Loan Party or any of its Subsidiaries owns or will acquire any Margin Stock, Borrowers shall deliver to Lender an updated Form U-1, duly executed and delivered by the Borrowers, together with such other documentation as Lender shall reasonably request, in order to enable Lender to comply with any of the requirements under Regulations T,

U or X of the Board of Governors, 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;(iii) Borrowers have delivered to Lender updated pro forma Projections (after giving effect to the applicable Increase) for the Loan Parties and their Subsidiaries evidencing compliance on a pro forma basis with <u>Section 7</u> for the 12 months (on a month-by-month basis) immediately following the proposed date of the applicable Increase.

&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) Unless otherwise specifically provided herein, all references in this Agreement and any other Loan Document to Revolving Loans shall be deemed, unless the context otherwise requires, to include Revolving Loans made pursuant to the increased Revolver Commitments and Maximum Revolver Amount pursuant to this <u>Section 2.14</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.15 <u>Joint and Several Liability of Borrowers</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) Each Borrower is accepting joint and several liability hereunder and under the other Loan Documents in consideration of the financial accommodations to be provided by Lender under this Agreement, for the mutual benefit, directly and indirectly, of each Borrower and in consideration of the undertakings of the other Borrowers to accept joint and several liability for the 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) Each Borrower, 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 Borrowers, with respect to the payment and performance of all of the Obligations (including any Obligations arising under this <u>Section 2.15</u>), it being the intention of the parties hereto that all the Obligations shall be the joint and several obligations of each Borrower without preferences or distinction among them. Accordingly, each Borrower hereby waives any and all suretyship defenses that would otherwise be available to such Borrower under 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;(c) If and to the extent that any Borrower shall fail to make any payment with respect to any of the Obligations as and when due, whether upon maturity, acceleration, or otherwise, or to perform any of the Obligations in accordance with the terms thereof, then in each such event the other Borrowers will make such payment with respect to, or perform, such Obligations until such time as all of the Obligations are paid in full, and without the need for demand, protest, or any other notice or formality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Obligations of each Borrower under the provisions of this <u>Section 2.15</u> constitute the absolute and unconditional, full recourse Obligations of each Borrower enforceable against each Borrower to the full extent of its properties and assets, irrespective of the validity, regularity or enforceability of the provisions of this Agreement (other than this <u>Section 2.15(d)</u>) or any other circumstances 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;(e) Without limiting the generality of the foregoing and except as otherwise expressly provided in this Agreement, each Borrower hereby waives presentments, demands for performance, protests and notices, including notices of acceptance of its joint and several liability, notice of any Revolving Loans, any Capex Loans, any portion of the Term Loan or any Letters of Credit issued under or pursuant to this Agreement, notice of the occurrence of any Default or Event of Default, notices of nonperformance, notices of protest, notices of dishonor, notices of acceptance of this Agreement, notices of the existence, creation, or incurring of new or additional Obligations or other financial accommodations or of any demand for any payment under this Agreement, notice of any action at any time taken or omitted by Lender under or in respect of any of the Obligations, any right to proceed against any other Borrower or any other Person, to proceed against or exhaust any security held from any other Borrower or any other Person, to protect, secure, perfect, or insure any security interest or Lien on any property subject thereto or exhaust any right to take any action against any other Borrower, any other Person, or any collateral, to pursue any other remedy in Lender's or any Bank Product Provider's power whatsoever, any requirement of diligence or to mitigate damages and, generally, to the extent permitted by applicable law, all demands, notices and other formalities of every kind in connection with this Agreement (except as otherwise provided in this Agreement), any right to assert against Lender or any Bank Product Provider, any defense (legal or equitable), set-off, counterclaim, or claim which any Borrower may now or at any time hereafter have against any other Borrower or any other party liable to Lender or any Bank Product Provider, any defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or enforceability of the Obligations or any security therefor, and any right or defense arising by reason of any claim or defense based upon an election of remedies by Lender or any Bank Product Provider including any defense based upon an impairment or elimination of such Borrower's rights of subrogation, reimbursement, contribution, or indemnity of such Borrower against any other Borrower. Without limiting the generality of the foregoing, each Borrower hereby assents to, and waives notice of, any extension or postponement of the time for the payment of any of the Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by Lender at any time or times in respect of any default by any Borrower in the performance or satisfaction of any term, covenant, condition or provision of this Agreement, any and all other indulgences whatsoever by Lender in respect of any of the Obligations, and the taking, addition, substitution or release, in whole or in part, at any time or times, of any security for any of the Obligations or the addition, substitution or release, in whole or in part, of any Borrower. Without limiting the generality of the foregoing, each Borrower assents to any other action or delay in acting or failure to act on the part of Lender with respect to the failure by any Borrower to comply with any of its respective Obligations, including any failure strictly or diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or regulations thereunder, which might, but for the provisions of this <u>Section 2.15</u> afford grounds for terminating, discharging or relieving any Borrower, in whole or in part, from any of its Obligations under this <u>Section 2.15</u>, it being the intention of each Borrower that, so long as any of the Obligations hereunder remain unsatisfied, the Obligations of each Borrower under this <u>Section 2.15</u> shall not be discharged except by performance and then only to the extent of such performance. The Obligations of each Borrower under this <u>Section 2.15</u> shall not be diminished or rendered unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect to any other Borrower or Lender. Each of the Borrowers waives, to the fullest extent permitted by law, the benefit of any statute of limitations affecting its liability hereunder or the enforcement hereof. Any payment by any Borrower or other circumstance which operates to toll any statute of limitations as to any Borrower shall operate to toll the statute of limitations as to each of the Borrowers. Each of the Borrowers waives any defense based on or arising out of any defense of any Borrower or any other Person, other than payment of the Obligations to the extent of such payment, based on or arising out of the disability of any Borrower or any other Person or the validity, legality or unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any Borrower other than payment of the Obligations to the extent of such payment. Lender may foreclose upon any Collateral held by Lender by one or more judicial or nonjudicial sales or other dispositions, whether or not every aspect of any such sale is commercially reasonable or otherwise fails to comply with applicable law or may exercise any other right or remedy Lender or any Bank Product Provider may have against any Borrower or any other Person, or any security, in each case, without affecting or impairing in any way the liability of any of the Borrowers hereunder except to the extent the Obligations have 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;(f) Each Borrower represents and warrants to Lender that such Borrower is currently informed of the financial condition of Borrowers and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations. Each Borrower further represents and warrants to Lender that such Borrower has read and understands the terms and conditions of the Loan Documents. Each Borrower hereby covenants that such Borrower will continue to keep informed of Borrowers' financial condition and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the 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;(g) The provisions of this <u>Section 2.15</u> are made for the benefit of Lender, each Bank Product Provider, and their respective successors and assigns, and may be enforced by it or them from time to time against any or all Borrowers as often as occasion therefor may arise and without requirement on the part of Lender, any Bank Product Provider, or any of their successors or assigns first to marshal any of its or their claims or to exercise any of its or their rights against any Borrower or to exhaust any remedies available to it or them against any Borrower or to resort to any other source or means of obtaining payment of any of the Obligations hereunder or to elect any other remedy. The provisions of this <u>Section 2.15</u> shall remain in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied. If at any time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be restored or returned by Lender upon the insolvency, bankruptcy or reorganization of any Borrower, or otherwise, the provisions of this <u>Section 2.15</u> will forthwith be reinstated in effect, as though such payment had not been 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;(h) Each Borrower hereby agrees that it will not enforce any of its rights that arise from the existence, payment, performance or enforcement of the provisions of this <u>Section 2.15</u>, including rights of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of Lender or any Bank Product Provider against any Borrower whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including the right to take or receive from any Borrower, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim, remedy or rights, unless and until such time as all of the Obligations have been paid in full in cash. Any claim which any Borrower may have against any other Borrower with respect to any payments to Lender hereunder or under any of the Bank Product Agreements are hereby expressly made subordinate and junior in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash of the Obligations and, in the event of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any Borrower, its debts or its assets, whether voluntary or involuntary, all such Obligations shall be paid in full in cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to any other Borrower therefor. If any amount shall be paid to any Borrower in violation of the immediately preceding sentence, such amount shall be held in trust for the benefit of Lender and the Bank Product Providers, and shall forthwith be paid to Lender to be credited and applied to the Obligations and all other amounts payable under this Agreement, whether matured or unmatured, in accordance with the terms of this Agreement, or to be held as Collateral for any Obligations or other amounts payable under this Agreement thereafter arising. Notwithstanding anything to the contrary contained in this Agreement, no Borrower may exercise any rights of subrogation, contribution, indemnity, reimbursement or other similar rights against, and may not proceed or seek recourse against or with respect to any property or asset of, any other Borrower (the "<u>Foreclosed Borrower</u>"), including after payment in full of the Obligations, if all or any portion of the Obligations have been satisfied in connection with an exercise of remedies in respect of the Equity Interests of such Foreclosed Borrower whether pursuant to this Agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.16 <u>Capex 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;(a) Subject to, and upon the terms and conditions contained herein, during the period from and after the Closing Date but prior to the date that is the two-year anniversary of the Closing Date (the "<u>Capex Loan Advance Period</u>"), at the request of Borrowers (such requests to be made by Borrowers no more frequently than one time in any calendar quarter), Lender will make Capex Loans to Borrowers in an amount equal to 80% of the Hard Costs of the Eligible New M&E purchased by Borrowers after the Closing Date. The proceeds of each Capex Loan will be used solely for the payment of the purchase price (or to reimburse Borrowers for the cash payments previously paid by Borrowers for the purchase price) for the Eligible New M&E specified in the Capex Loan Request applicable to such Capex Loan; <u>provided</u>, that, (A) to the extent that the proceeds of any Capex Loan are used to reimburse Borrowers for the cash payments paid by Borrowers for the purchase price of any Eligible New M&E, Borrowers shall have taken possession of such Eligible New M&E within 60 days prior to the date of Borrowers' request for such Capex Loan, and (B) no Capex Loan Request will include any Eligible New M&E that supports any other Capex Loan. Each Capex Loan will be in an amount of not less than $100,000. A single Capex Loan may be used for the purchase price of one or more items constituting Eligible New M&E specified in the Capex Loan Request required to be delivered to Lender pursuant to <u>Section 2.16(d)(i)</u>. The minimum amount of each Capex Loan applies to the amount of such Capex Loan, not to the amount of the purchase price of any individual item of Eligible New M&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;(b) The outstanding aggregate principal amount of the Capex Loans made by Lender will not at any time exceed *the lesser of* (i) the Capex Loan Commitment and (ii) *the lesser of* (A) 85% of the Forced Liquidation Value of all Eligible New M&E purchased by Borrowers based upon the most recent Acceptable Appraisal received by Lender, and (B) the Capex Loan Limit, as reduced by the amount of all principal payments in respect of the Capex Loans.

&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) Each Capex Loan to Borrowers will be (i) repaid, together with interest and other amounts payable, in accordance with the provisions of this Agreement and the other Loan Documents, and (ii) secured by all of the Collateral. All principal of, interest on, and other amounts payable in respect of the Capex Loans shall constitute Obligations 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;(d) In addition to the other conditions precedent to any extension of credit set forth in this Agreement, the provision of each Capex Loan will be subject to the satisfaction of each of the following additional conditions precedent, as determined 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Lender will have received from Borrowers not less than five Business Days and not more than 20 Business Days prior written notice of the proposed Capex Loan (each such notice being an "<u>Capex Loan Request</u>"), which notice will specify and include the following: (A) the proposed date and amount of the Capex Loan, (B) a list and description of the Eligible New M&E (by model, make, manufacturer, serial number and/or such other identifying information as may be reasonably requested by Lender), (C) whether any of such Eligible New M&E has been purchased prior to the date of the proposed Capex Loan and if so, the date of such purchase and identifying the specific Eligible New M&E that has been so purchased, (D) the Hard Costs and total purchase price for such Eligible New M&E (and the terms of payment of such purchase price), and (E) such other information and documents as Lender may from time to time reasonably request with respect 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Lender shall have a valid and perfected first priority security interest in and lien upon such Eligible New M&E and such Eligible New M&E shall be free and clear of all other Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Lender shall have received, with respect to Eligible New M&E that has been purchased prior to the date of the proposed Capex Loan (A) copies, or upon Lender's request, originals, of all agreements, documents and instruments relating to the sale of the Eligible New M&E to Borrowers, including, without limitation, any purchase orders, invoices, bills of sale or similar documents, and (B) evidence satisfactory to Lender that the Eligible New M&E has been received and installed by Borrowers and is in good working order and operating for its intended purpose; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as of the date of such Capex Loan and after giving effect thereto, no Default or Event of Default shall exist or shall have occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The principal amount of each Capex Loan (if any) shall be payable (subject to earlier payment as provided herein) in 60 equal, consecutive monthly installments of principal, each in an amount calculated below, commencing on the first day of the calendar month immediately following the date that the first Capex Loan is made by Lender, together with interest and other amounts as provided herein with respect to such Capex 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;(f) The amount of each monthly installment of principal in respect of each Capex Loan (other than the last installment which will be in an amount equal to the entire unpaid balance of each such Capex Loan) will equal: (i) the original principal amount of such Capex Loan divided by (ii) 60; <u>provided</u>, that, the entire unpaid principal balance and all accrued and unpaid interest on such Capex Loan shall be due and payable on the earlier of (A) the Maturity Date and (B) the date on which such Capex Loan otherwise becomes due and payable pursuant to the terms of this Agreement. Amounts repaid on account of the Capex Loans may not be reborrowed.

&nbsp;&nbsp;&nbsp;&nbsp;3. CONDITIONS; TERM OF AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 **<u>Conditions Precedent to the Initial Extension of Credit</u>**. The obligation of Lender to make the initial extensions of credit provided for hereunder is subject to the fulfillment, to the satisfaction of Lender, of each of the conditions precedent set forth on <u>Schedule 3.1</u> to this Agreement (the making of such initial extensions of credit by Lender being conclusively deemed to be its satisfaction or waiver of the conditions precedent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **<u>Conditions Precedent to all Extensions of Credit</u>**. The obligation of Lender to make any Revolving Loans hereunder (or to extend any other credit hereunder) at any time shall be subject to the following conditions precedent:

&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 representations and warranties of each Loan Party or its Subsidiaries contained in this Agreement or in the other Loan Documents shall be true and correct in all material respects (<u>except</u>, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of such extension of credit, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (<u>except</u>, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier 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;(b) no Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall either result from the making thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 **<u>Maturity</u>**. The Commitments shall continue in full force and effect for a term ending on the Maturity Date (unless terminated earlier in accordance with the terms hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 **<u>Effect of Maturity</u>**. On the Maturity Date, all commitments of Lender to provide additional credit hereunder shall automatically be terminated and all of the Obligations (other than Hedge Obligations) immediately shall become due and payable without notice or demand and Borrowers shall be required to repay all of the Obligations (other than Hedge Obligations) in full. No termination of the obligations of Lender shall relieve or discharge any Loan Party of its duties, obligations, or covenants hereunder or under any other Loan Document and Lender's Liens in the Collateral shall continue to secure the Obligations and shall remain in effect until all Obligations have been paid in full. When (a) there are no suits, actions, proceedings or claims pending or threatened against any Indemnified Person under this Agreement with respect to any Indemnified Liabilities, and (b) all of the Obligations have been paid in full, Lender will, at Borrowers' sole expense, execute and deliver any termination statements, lien releases, discharges of security interests, and other similar discharge or release documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, Lender's Liens and all notices of security interests and liens previously filed by Lender, in each case upon Lender's receipt of each of the following, in form and content satisfactory to Lender: (i) a general release of all claims against Lender and its Affiliates by each Borrower and each Loan Party relating to Lender's performance and obligations under the Loan Documents, and (ii) an agreement by each Borrower and each Guarantor to indemnify Lender and its Affiliates for any payments received by Lender or its Affiliates that are applied to the Obligations as a final payoff that may subsequently be returned or otherwise not paid for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 **<u>Early Termination by Borrowers</u>**. Borrowers have the option, at any time upon ten Business Days prior written notice to Lender, to repay all of the Obligations in full and terminate the Commitments. The foregoing notwithstanding, (a) Borrowers may rescind termination notices relative to proposed payments in full of the Obligations with the proceeds of third party Indebtedness if the closing for such issuance or incurrence does not happen on or before the date of the proposed termination (in which case, a new notice shall be required to be sent in connection with any subsequent termination), and (b) Borrowers may extend the date of termination at any time with the consent of Lender (which consent shall not be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 **<u>Conditions Subsequent</u>**. The obligation of Lender to continue to make Revolving Loans (or otherwise extend credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of the conditions subsequent set forth on <u>Schedule 3.6</u> to this Agreement (the failure by Borrowers to so perform or cause to be performed such conditions subsequent as and when required by the terms thereof (unless such date is extended, in writing, by Lender), shall constitute an Event of Default).

&nbsp;&nbsp;&nbsp;&nbsp;4. REPRESENTATIONS AND WARRANTIES.

In order to induce Lender to enter into this Agreement, each Borrower makes the following representations and warranties to Lender which shall be true, correct, and complete, in all material respects (<u>except</u>, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof), as of the Closing Date, and shall be true, correct, and complete, in all material respects (<u>except</u>, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof), as of the date of the making of each Revolving Loan (or other extension of credit) made thereafter, as though made on and as of the date of such Revolving Loan (or other extension of credit) (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (<u>except</u>, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier date), and such representations and warranties shall survive the execution and delivery of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.1 <u>Due Organization and Qualification; Subsidiaries</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) Each Loan Party and each of its Subsidiaries (i) is duly organized and existing and in good standing under the laws of the jurisdiction of its organization, (ii) is qualified to do business in any state where the failure to be so qualified could reasonably be expected to result in a Material Adverse Effect, and (iii) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated 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;(b) Set forth on <u>Schedule 4.1(b)</u> to this Agreement (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement) is a complete and accurate description of the authorized Equity Interests of each Loan Party, by class, and, as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding.

&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) Set forth on <u>Schedule 4.1(c)</u> to this Agreement (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement), is a complete and accurate list of the Loan Parties' direct and indirect Subsidiaries, showing: (i) the number of shares of each class of common and preferred Equity Interests authorized for each of such Subsidiaries, and (ii) the number and the percentage of the outstanding shares of each such class owned directly or indirectly by each Loan Party. All of the outstanding Equity Interests of each such Subsidiary has been validly issued and is fully paid and non-assessable.

&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) Except as set forth on <u>Schedule 4.1(d)</u> to this Agreement, there are no subscriptions, options, warrants, or calls relating to any shares of any Loan Party's or any of its Subsidiaries' Equity Interests, including any right of conversion or exchange under any outstanding security or other instrument. No Loan Party is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its Equity Interests or any security convertible into or exchangeable for any of its Equity Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.2 <u>Due Authorization; No Conflict</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) As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is a party have been duly authorized by all necessary action on the part of such Loan Party.

&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) As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is a party do not and will not (i) violate any material provision of federal, state, or local law or regulation applicable to any Loan Party or its Subsidiaries, the Governing Documents of any Loan Party or its Subsidiaries, or any order, judgment, or decree of any court or other Governmental Authority binding on any Loan Party or its Subsidiaries, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material agreement of any Loan Party or its Subsidiaries where any such conflict, breach or default could individually or in the aggregate reasonably be expected to have a Material Adverse Effect, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of any Loan Party, other than Permitted Liens, or (iv) require any approval of any holder of Equity Interests of a Loan Party or any approval or consent of any Person under any material agreement of any Loan Party, other than consents or approvals that have been obtained and that are still in force and effect and except, in the case of material agreements, for consents or approvals, the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 **<u>Governmental Consents</u>**. The execution, delivery, and performance by each Loan Party of the Loan Documents to which such Loan Party is a party and the consummation of the transactions contemplated by the Loan Documents do not and will not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than registrations, consents, approvals, notices, or other actions that have been obtained and that are still in force and effect and except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to Lender for filing or recordation, as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.4 <u>Binding Obligations; Perfected Liens</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) Each Loan Document has been duly executed and delivered by each Loan Party that is a party thereto and is the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors' rights generally.

&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) Lender's Liens are validly created, perfected (other than (i) in respect of motor vehicles that are subject to a certificate of title, (ii) money, (iii) letter-of-credit rights (other than supporting obligations), (iv) commercial tort claims (other than those that, by the terms of the Guaranty and Security Agreement, are required to be perfected), and (v) any Deposit Accounts and Securities Accounts not subject to a Control Agreement as permitted by <u>Section 7(k)(iv)</u> of the Guaranty and Security Agreement, and subject only to the filing of financing statements, the recordation of the Copyright Security Agreement, Trademark Security Agreement and Patent Security Agreement (as applicable), and the recordation of the Mortgages (as applicable), in each case, in the appropriate filing offices, and first priority Liens, subject only to Permitted Liens which are non-consensual Permitted Liens, permitted purchase money Liens, or the interests of lessors under Capital Leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 **<u>Title to Assets; No Encumbrances</u>**. Each of the Loan Parties and its Subsidiaries has (a) good, sufficient and legal title to (in the case of fee interests in Real Property), (b) valid leasehold interests in (in the case of leasehold interests in real or personal property), and (c) good and marketable title to (in the case of all other personal property), all of their respective assets reflected in their most recent financial statements delivered pursuant to <u>Section 5.1</u>, in each case except for assets disposed of since the date of such financial statements to the extent permitted hereby. All of such assets are free and clear of Liens except for Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.6 <u>Litigation</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) There are no actions, suits, or proceedings pending or, to the knowledge of any Borrower, after due inquiry, threatened in writing against a Loan Party or any of its Subsidiaries that either individually or in the aggregate could reasonably be expected to result in 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;(b) <u>Schedule 4.6(b)</u> to this Agreement sets forth a complete and accurate description of each of the actions, suits, or proceedings with asserted liabilities in excess of, or that could reasonably be expected to result in liabilities in excess of, $100,000 that, as of the Closing Date, is pending or, to the knowledge of any Borrower, after due inquiry, threatened against a Loan Party or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 **<u>Compliance with Laws</u>**. No Loan Party nor any of its Subsidiaries (a) is in violation of any applicable laws, rules, regulations, executive orders, or codes (including Environmental Laws) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect, or (b) is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 **<u>No Material Adverse Effect</u>**. All historical financial statements relating to the Loan Parties and their Subsidiaries that have been delivered by Borrowers to Lender have been prepared in accordance with GAAP (except, in the case of unaudited financial statements, for the lack of footnotes and being subject to year-end audit adjustments) and present fairly in all material respects, the Loan Parties' and their Subsidiaries' consolidated financial condition as of the date thereof and results of operations for the period then ended. Since December 31, 2022, no event, circumstance, or change has occurred that has or could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.9 <u>Solvency</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) The Loan Parties, take as a whole, are Solvent.

&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) No transfer of property is being made by any Loan Party and no obligation is being incurred by any Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of such Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 **<u>Employee Benefits</u>**. No Loan Party, none of their Subsidiaries, nor any of their ERISA Affiliates maintains or contributes to any Benefit Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 **<u>Environmental Condition</u>**. Except as set forth on <u>Schedule 4.11</u> to this Agreement, (a) to each Borrower's knowledge, no Loan Party's nor any of its Subsidiaries' properties or assets has ever been used by a Loan Party, its Subsidiaries, or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous Materials, where such disposal, production, storage, handling, treatment, release or transport was in violation, in any material respect, of any applicable Environmental Law, (b) to each Borrower's knowledge, after due inquiry, no Loan Party's nor any of its Subsidiaries' properties or assets has ever been designated or identified in any manner pursuant to any environmental protection statute as a Hazardous Materials disposal site, (c) no Loan Party nor any of its Subsidiaries has received notice that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property owned or operated by a Loan Party or its Subsidiaries, and (d) no Loan Party nor any of its Subsidiaries nor any of their respective facilities or operations is subject to any outstanding written order, consent decree, or settlement agreement with any Person relating to any Environmental Law or Environmental Liability that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 **<u>Complete Disclosure</u>**. All factual information taken as a whole (other than forward-looking information and projections and information of a general economic nature and general information about the industry of any Loan Party or its Subsidiaries) furnished by or on behalf of a Loan Party or its Subsidiaries in writing to Lender (including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement or the other Loan Documents, and all other such factual information taken as a whole (other than forward-looking information and projections and information of a general economic nature and general information about the industry of any Loan Party or its Subsidiaries) hereafter furnished by or on behalf of a Loan Party or its Subsidiaries in writing to Lender will be, true and accurate, in all material respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. The Projections delivered to Lender on September 22, 2023 represent, and as of the date on which any other Projections are delivered to Lender, such additional Projections represent, Borrowers' good faith estimate, on the date such Projections are delivered, of the Loan Parties' and their Subsidiaries' future performance for the periods covered thereby based upon assumptions believed by Borrowers to be reasonable at the time of the delivery thereof to Lender (it being understood that such Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Loan Parties and their Subsidiaries, and no assurances can be given that such Projections will be realized, and although reflecting Borrowers' good faith estimate, projections or forecasts based on methods and assumptions which Borrowers believed to be reasonable at the time such Projections were prepared, are not to be viewed as facts, and that actual results during the period or periods covered by the Projections may differ materially from projected or estimated results). As of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13 **<u>Patriot Act</u>**. To the extent applicable, each Loan Party is in compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001, as amended) (the "<u>Patriot Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14 **<u>Indebtedness</u>**. Set forth on <u>Schedule 4.14</u> to this Agreement is a true and complete list of all Indebtedness of each Loan Party and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding immediately after giving effect to the closing hereunder on the Closing Date and such Schedule accurately sets forth the aggregate principal amount of such Indebtedness as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15 **<u>Payment of Taxes</u>**. Except as otherwise permitted under <u>Section 5.5</u>, all Tax returns and reports of each Loan Party and its Subsidiaries required to be filed by any of them have been timely filed, and all Taxes shown on such Tax returns to be due and payable and all other Taxes upon a Loan Party and its Subsidiaries and upon their respective assets, income, businesses and franchises that are due and payable have been paid when due and payable. Each Loan Party and each of its Subsidiaries have made adequate provision in accordance with GAAP for all Taxes not yet due and payable. No Borrower knows of any proposed Tax assessment against a Loan Party or any of its Subsidiaries that is not being actively contested by such Loan Party or such Subsidiary diligently, in good faith, and by appropriate proceedings; <u>provided</u>, that such reserves or other appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16 **<u>Margin Stock</u>**. Neither any Loan Party nor any of its Subsidiaries owns any Margin Stock or is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of the Loans made to Borrowers will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors. Neither any Loan Party nor any of its Subsidiaries expects to acquire any Margin Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17 **<u>Governmental Regulation</u>**. No Loan Party nor any of its Subsidiaries is subject to regulation under the Federal Power Act or the Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable. No Loan Party nor any of its Subsidiaries is a "registered investment company" or a company "controlled" by a "registered investment company" or a "principal underwriter" of a "registered investment company" as such terms are defined in the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18 **<u>OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws</u>**. No Loan Party or any of its Subsidiaries is in violation of any Sanctions. No Loan Party nor any of its Subsidiaries nor, to the knowledge of such Loan Party, any director, officer, employee, agent or Affiliate of such Loan Party or such Subsidiary (a) is a Sanctioned Person or a Sanctioned Entity, (b) has any assets located in Sanctioned Entities, or (c) derives revenues from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. Each of the Loan Parties and its Subsidiaries has implemented and maintains in effect policies and procedures designed to ensure compliance with Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws. Each of the Loan Parties and its Subsidiaries, and to the knowledge of each such Loan Party, each director, officer, employee, agent and Affiliate of each such Loan Party and each such Subsidiary, is in compliance with all Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws. No proceeds of any Loan made or Letter of Credit issued hereunder will be used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity, or otherwise used in any manner that would result in a violation of any Sanction, Anti- Corruption Law or Anti-Money Laundering Law by any Person (including Lender, Bank Product Provider, or other individual or entity participating in any transaction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19 **<u>Employee and Labor Matters</u>**. There is (i) no unfair labor practice complaint pending or, to the knowledge of any Borrower, threatened against any Loan Party or its Subsidiaries before any Governmental Authority and no grievance or arbitration proceeding pending or threatened against any Loan Party or its Subsidiaries which arises out of or under any collective bargaining agreement and that could reasonably be expected to result in a material liability, (ii) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or threatened in writing against any Loan Party or its Subsidiaries that could reasonably be expected to result in a material liability, or (iii) except as set forth on <u>Schedule 4.19</u> to this Agreement, to the knowledge of any Borrower, after due inquiry, no union representation question existing with respect to the employees of any Loan Party or its Subsidiaries and no union organizing activity taking place with respect to any of the employees of any Loan Party or its Subsidiaries. None of any Loan Party or its Subsidiaries has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act or similar state law, which remains unpaid or unsatisfied. The hours worked and payments made to employees of each Loan Party and its Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable legal requirements, except to the extent such violations could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. All material payments due from any Loan Party or its Subsidiaries on account of wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of such Loan Party or its Subsidiaries, except where the failure to do so could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.20 [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21 **<u>Leases</u>**. Each Loan Party and its Subsidiaries enjoy peaceful and undisturbed possession under all leases material to their business and to which they are parties or under which they are operating, and, subject to Permitted Protests, all of such material leases are valid and subsisting and no material default by the applicable Loan Party or its Subsidiaries exists under any of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.23 **<u>Eligible Inventory</u>**. As to each item of Inventory that is identified by Borrowers as Eligible Finished Goods Inventory, Eligible Raw Material Inventory, Eligible Scrap Inventory or Eligible Work-In-Process Inventory in a Borrowing Base Certificate submitted to Lender, such Inventory is (a) of good and merchantable quality, free from known defects, and (b) not excluded as ineligible by virtue of one or more of the excluding criteria (other than any Lender-discretionary criteria) set forth in the definition of Eligible Inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.24 [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.25 **<u>Location of Inventory and Equipment</u>**. Except as set forth in <u>Schedule 4.25</u>, the Inventory (other than Inventory held by, or maintained with, subcontractors with an aggregate value less than $100,000) and Equipment of Loan Parties and their Subsidiaries is not stored with a bailee, warehouseman, or similar party and is located only at, or in-transit between, the locations identified on <u>Schedule 4.25</u> to this Agreement (as such Schedule may be updated pursuant to <u>Section 5.13</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.26 **<u>Inventory Records</u>**. Each Loan Party keeps correct and accurate records itemizing and describing the type, quality, and quantity of its and its Subsidiaries' Inventory and the book value thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.27 **<u>Hedge Agreements</u>**. On each date that any Hedge Agreement is executed by any Hedge Provider, Borrowers and each other Loan Party satisfy all eligibility, suitability and other requirements under the Commodity Exchange Act (7 U.S.C. § 1, et seq., as in effect from time to time) and the Commodity Futures Trading Commission regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.28 <u>Closing Date Transaction 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) Borrowers have delivered to Lender complete and correct copies of the material Closing Date Transaction Documents, including all schedules and exhibits thereto. The execution, delivery and performance of each of the Closing Date Transaction Documents has been duly authorized by all necessary action on the part of each Loan Party who is a party thereto. Each Closing Date Transaction Document is the legal, valid and binding obligation of each Loan Party who is a party thereto, enforceable against each such Loan Party in accordance with its terms, in each case, except (i) as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting generally the enforcement of creditors' rights, and (ii) the availability of the remedy of specific performance or injunctive or other equitable relief is subject to the discretion of the court before which any proceeding therefor may be brought. No Loan Party is in default in the performance or compliance with any provisions thereof, except for a default that could not reasonably be expected to result in a Material Adverse Effect. All material representations and warranties made by a Loan Party in the Closing Date Transaction Documents and in the certificates delivered in connection therewith are true and correct in all material respects. To each Loan Party's knowledge, none of the Opus Seller's or Great Fall's representations or warranties in the Closing Date Transaction Documents (as applicable) contain any untrue statement of a material fact or omit any fact necessary to make the statements therein not misleading, in any case that could reasonably be expected to result in 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;(b) As of the Closing Date, the Closing Date Transactions have been consummated in all material respects, in accordance with all applicable laws. As of the Closing Date, all requisite approvals by Governmental Authorities having jurisdiction over Loan Parties and, to each Loan Party's knowledge, the Opus Seller, with respect to the Closing Date Transactions, have been obtained (including filings or approvals required under the Hart-Scott-Rodino Antitrust Improvements Act), except for any approval the failure to obtain could not reasonably be expected to be material to the interests of Lender. As of the Closing Date, after giving effect to the transactions contemplated by the Closing Date Transaction Documents, the applicable Loan Parties will have good title to the assets acquired pursuant to the Closing Date Transaction Documents, free and clear of all Liens other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;5. AFFIRMATIVE COVENANTS.

Each of Parent and each other Borrower covenants and agrees that, until the termination of all of the Commitments and the payment in full of the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 **<u>Financial Statements, Reports, Certificates</u>**. Borrowers (a) will deliver to Lender each of the financial statements, reports, and other items set forth on Schedule 5.1 to this Agreement no later than the times specified therein, (b) agree that no Subsidiary of Parent will have a fiscal year different from that of Parent, (c) agree to maintain a system of accounting that enables Borrowers to produce financial statements in accordance with GAAP, and (d) agree that they will, and will cause each other Loan Party to, (i) keep a reporting system that shows all additions, sales, claims, returns, and allowances with respect to their and their Subsidiaries' sales, and (ii) maintain their billing systems and practices substantially as in effect as of the Closing Date and shall only make material modifications thereto with notice to, and with the consent of, Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 **<u>Reporting</u>**. Borrowers (a) will deliver to Lender each of the reports set forth on <u>Schedule 5.2</u> to this Agreement at the times specified therein, and (b) agree to use commercially reasonable efforts in cooperation with Lender to facilitate and implement a system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth on such Schedule. Borrowers and Lender hereby agree that the delivery of the Borrowing Base Certificate through Lender's electronic platform or portal, subject to Lender's authentication process, by such other electronic method as may be approved by Lender from time to time in its sole discretion, or by such other electronic input of information necessary to calculate the Borrowing Bases as may be approved by Lender from time to time in its sole discretion, shall in each case be deemed to satisfy the obligation of Borrowers to deliver such Borrowing Base Certificate, with the same legal effect as if such Borrowing Base Certificate had been manually executed by Borrowers and delivered to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 **<u>Existence</u>**. Except as otherwise permitted under <u>Section 6.3</u> or <u>Section 6.4</u>, each Loan Party will, and will cause each of its Subsidiaries to, at all times preserve and keep in full force and effect such Person's valid existence and good standing in its jurisdiction of organization and, except as could not reasonably be expected to result in a Material Adverse Effect, good standing with respect to all other jurisdictions in which it is qualified to do business and any rights, franchises, permits, licenses, accreditations, authorizations, or other approvals material to their businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 **<u>Maintenance of Properties</u>**. Each Loan Party will, and will cause each of its Subsidiaries to, maintain and preserve all of its assets that are necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear, tear, casualty, and condemnation and Permitted Dispositions excepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 **<u>Taxes</u>**. Each Loan Party will, and will cause each of its Subsidiaries to, (a) pay in full before delinquency or before the expiration of any extension period all Taxes imposed, levied, or assessed against it, or any of its assets or in respect of any of its income, businesses, or franchises, except to the extent that the validity of such Tax is the subject of a Permitted Protest and so long as, in the case of an assessment or tax that has or may become a Lien against any of the Collateral, (i) such contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such assessment or tax, and (ii) any such other Lien is at all times subordinate to Lender's Liens; and (b) make timely payment or deposit of all tax payments and withholding taxes required of it and them by applicable laws, including those laws concerning F.I.C.A, F.U.T.A, state disability, and local, state, and federal income taxes, and will, upon request, furnish Lender with proof reasonably satisfactory to Lender indicating that such Loan Party and its Subsidiaries have made such payments or deposit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.6 <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) Each Loan Party will, and will cause each of its Subsidiaries to, at Borrowers' expense, maintain insurance respecting each of each Loan Party's and its Subsidiaries' assets wherever located, covering liabilities, losses, damages and environmental matters (including, for the avoidance of doubt, covering any and all environmental conditions relating to the Great Falls Real Property) as are customarily are insured against by other Persons engaged in same or similar businesses and similarly situated and located. All such policies of insurance shall be with financially sound and reputable insurance companies acceptable to Lender (it being agreed that, as of the Closing Date, the Loan Parties' existing insurance providers as set forth in the certificates of insurance delivered to Lender on or about the Closing Date shall be deemed to be acceptable to Lender) and in such amounts as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and located and, in any event, in amount, adequacy, and scope reasonably satisfactory to Lender (it being agreed that the amount, adequacy, and scope of the policies of insurance of Parent in effect as of the Closing Date are acceptable to Lender). Excluding policies covering or related to the Great Falls Real Property so long as, and to the extent that, the Great Falls Real Property does not constitute Collateral, all property insurance policies are to be made payable to Lender for the benefit of Lender, as its interests may appear, in case of loss, pursuant to a standard lender's loss payable endorsement with a standard non-contributory "lender" or "secured party" clause and are to contain such other provisions as Lender may reasonably require to fully protect Lender's interest in the Collateral and to any payments to be made under such policies. Excluding policies covering or related to the Great Falls Real Property so long as, and to the extent that, the Great Falls Real Property does not constitute Collateral, certificates of property and general liability insurance are to be delivered to Lender, with the lender's loss payable and additional insured endorsements in favor of Lender, and shall provide for not less than thirty days (ten days in the case of non-payment) prior written notice to Lender of the exercise of any right of cancellation. If any Loan Party or its Subsidiaries fails to maintain such insurance, Lender may arrange for such insurance, but at Borrowers' expense and without any responsibility on Lender's part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims.

&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) Borrowers shall give Lender prompt notice of any loss exceeding $100,000 covered by the casualty or business interruption insurance of any Loan Party or its Subsidiaries. Upon the occurrence and during the continuance of an Event of Default, Lender shall have the sole right to file claims under any property and general liability insurance policies in respect of the Collateral, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies.

&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) If at any time the area in which any Real Property that is subject to a Mortgage is located is designated a "flood hazard area" in any Flood Insurance Rate Map published by the Federal Emergency Management Agency (or any successor agency), obtain flood insurance in such total amount and on terms that are satisfactory to Lender from time to time, and otherwise comply with the Flood Laws or as is otherwise satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.7 <u>Inspection</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) Each Loan Party will, and will cause each of its Subsidiaries to, permit Lender and each of its duly authorized representatives or agents to visit any of its properties and inspect any of its assets or books and records, to examine and make copies of its books and records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its officers and employees (<u>provided</u>, that an authorized representative of a Borrower shall be allowed to be present) at such reasonable times and intervals as Lender may designate and, so long as no Default or Event of Default has occurred and is continuing, with reasonable prior notice to Borrowers and during regular business hours, at Borrowers' expense and subject to the limitations set forth below in <u>Section 5.7(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;(b) Each Loan Party will, and will cause each of its Subsidiaries to, permit Lender and each of its duly authorized representatives or agents to conduct field examinations, appraisals or valuations at such reasonable times and intervals as Lender may designate at Borrowers' expense, subject to the limitations set forth below in <u>Section 5.7(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;(c) So long as no Event of Default shall have occurred and be continuing during a calendar year, Borrowers shall not be obligated to reimburse Lender for more than (i)(A) two field examinations in the first 12 months after the Closing Date and (B) one field examination in each 12 month period occurring after the first anniversary of the Closing Date (increasing to two field examinations if at any time during any such 12 month period Excess Availability is less than $7,500,000), (ii) one inventory appraisal in such calendar year (increasing to two inventory appraisals if at any time during such calendar year Excess Availability is less than $7,500,000), and (iii) one equipment appraisal in such calendar year, in each case, except for field examinations and appraisals conducted in connection with a proposed Permitted Acquisition (whether or not consummated). Notwithstanding the foregoing in respect of clauses (i)(B) and (ii), a second field examination and a second appraisal shall not be required if the Fixed Charge Coverage Ratio, determined for the most recently ended 12 consecutive fiscal months for which Lender has received financial statements, is greater than 1.40 to 1.00 (in each case, except for field examinations and appraisals conducted in connection with a proposed Permitted Acquisition (whether or not consummated) and otherwise at Lender's cost and expense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 **<u>Compliance with Laws</u>**. Each Loan Party will, and will cause each of its Subsidiaries to, comply with the requirements of all applicable laws, rules, regulations, and orders of any Governmental Authority, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.9 **<u>Environmental</u>**. Each Loan Party will, and will cause each of its Subsidiaries 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;(a) Keep any property either owned or operated by any Loan Party or its Subsidiaries free of any Environmental Liens or post bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens,

&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) Comply, in all material respects, with Environmental Laws and provide to Lender documentation of such compliance which Lender reasonably requests,

&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) Promptly notify Lender of any release of which any Loan Party has knowledge of a Hazardous Material in any reportable quantity from or onto property owned or operated by any Loan Party or its Subsidiaries and take any Remedial Actions required to abate said release or otherwise to come into compliance, in all material respects, with applicable Environmental Law, 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) Promptly, but in any event within five Business Days of its receipt thereof, provide Lender with written notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of a Loan Party or its Subsidiaries, (ii) commencement of any Environmental Action or written notice that an Environmental Action will be filed against a Loan Party or its Subsidiaries, and (iii) written notice of a violation, citation, or other administrative order from a Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 **<u>Disclosure Updates</u>**. Each Loan Party will, promptly and in no event later than five Business Days after obtaining knowledge thereof, notify Lender if any written information, exhibit, or report furnished to Lender contained, at the time it was furnished, any untrue statement of a material fact or omitted to state any material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the effect of amending or modifying this Agreement or any of the Schedules hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 **<u>Formation or Acquisition of Subsidiaries</u>**. No Loan Party shall form or acquire any direct or indirect Subsidiary after the Closing Date without the prior written consent of Lender. If Lender provides its prior written consent to the formation or acquisition of any new Subsidiary, at the time that the applicable Loan Party forms or acquires such new Subsidiary, such Loan Party shall simultaneously with such formation or acquisition (or such later date as permitted by Lender), cause (a) such new Subsidiary (i) to be joined as a Borrower hereunder pursuant to a Joinder to this Agreement or to become a Guarantor of the Obligations, as determined by Lender, and (ii) to provide to Lender a joinder to the Guaranty and Security Agreement, in each case, together with such other security agreements (including Mortgages with respect to any Real Property owned in fee of such new Subsidiary with a fair market value of greater than $3,000,000), as well as appropriate financing statements (and with respect to all property subject to a Mortgage, fixture filings), all in form and substance reasonably satisfactory to Lender (including being sufficient to grant Lender a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary); <u>provided</u>, that the Joinder, the joinder to the Guaranty and Security Agreement, and such other security agreements shall not be required to be provided to Lender with respect to any Subsidiary of any Loan Party that is a CFC if providing such agreements would result in adverse tax consequences or the costs to the Loan Parties of providing such guaranty or such security agreements are unreasonably excessive (as determined by Lender in consultation with Borrowers) in relation to the benefits to Lender of the security or guarantee afforded thereby, (b) provide, or cause the applicable Loan Party to provide, to Lender a pledge agreement (or an addendum to the Guaranty and Security Agreement) and appropriate certificates and powers or financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary in form and substance reasonably satisfactory to Lender; <u>provided</u>, that only 65% of the total outstanding voting Equity Interests of any first tier Subsidiary of a Loan Party that is a CFC (and none of the Equity Interests of any Subsidiary of such CFC) shall be required to be pledged if pledging a greater amount would result in adverse tax consequences or the costs to the Loan Parties of providing such pledge are unreasonably excessive (as determined by Lender in consultation with Borrowers) in relation to the benefits to Lender of the security afforded thereby (which pledge, if reasonably requested by Lender, shall be governed by the laws of the jurisdiction of such Subsidiary), and (c) provide to Lender all other documentation, including the Governing Documents of such Subsidiary and one or more opinions of counsel reasonably satisfactory to Lender, which, in its opinion, is appropriate with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance, flood certification documentation or other documentation with respect to all Real Property owned in fee and subject to a Mortgage). Any document, agreement, or instrument executed or issued pursuant to this <u>Section 5.11</u> shall constitute a Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 **<u>Further Assurances</u>**. Each Loan Party will, and will cause each of the other Loan Parties to, at any time upon the reasonable request of Lender, execute or deliver to Lender any and all financing statements, fixture filings, security agreements, pledges, assignments, mortgages, deeds of trust, opinions of counsel, and all other documents (the "<u>Additional Documents</u>") that Lender may reasonably request in form and substance reasonably satisfactory to Lender, to create, perfect, and continue perfected or to better perfect Lender's Liens in all of the assets of each of the Loan Parties (whether now owned or hereafter arising or acquired, tangible or intangible, real or personal) (other than any assets expressly excluded from the Collateral (as defined in the Guaranty and Security Agreement) pursuant to <u>Section 3</u> of the Guaranty and Security Agreement), to create and perfect Liens in favor of Lender, as Lender may elect in its Permitted Discretion, in any Real Property acquired hereafter by any other Loan Party with a fair market value in excess of $3,000,000, and in order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents; <u>provided</u>, that the foregoing shall not apply to any Subsidiary of a Loan Party that is a CFC if providing such documents would result in adverse tax consequences or the costs to the Loan Parties of providing such documents are unreasonably excessive (as determined by Lender in consultation with Borrowers) in relation to the benefits to Lender of the security afforded thereby. To the maximum extent permitted by applicable law, if any Borrower or any other Loan Party refuses or fails to execute or deliver any reasonably requested Additional Documents within a reasonable period of time not to exceed 5 Business Days following the request to do so, each Borrower and each other Loan Party hereby authorizes Lender to execute any such Additional Documents in the applicable Loan Party's name and authorizes Lender to file such executed Additional Documents in any appropriate filing office. In furtherance of, and not in limitation of, the foregoing, each Loan Party shall take such actions as Lender may reasonably request from time to time to ensure that the Obligations are guaranteed by the Guarantors and are secured by substantially all of the assets of the Loan Parties, including all of the outstanding capital Equity Interests of each Borrower and its Subsidiaries (in each case, other than with respect to any assets expressly excluded from the Collateral (as defined in the Guaranty and Security Agreement) pursuant to <u>Section 3</u> of the Guaranty and Security Agreement). Notwithstanding anything to the contrary contained herein (including Section 5.11 hereof and this Section 5.12) or in any other Loan Document, Lender shall not accept delivery of any joinder to any Loan Document with respect to any Subsidiary of any Loan Party that is not a Loan Party, if such Subsidiary that qualifies as a "legal entity customer" under the Beneficial Ownership Regulation unless such Subsidiary has delivered a Beneficial Ownership Certification in relation to such Subsidiary and Lender has completed its Patriot Act searches, OFAC/PEP searches and customary individual background checks for such Subsidiary, the results of which shall be satisfactory to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 **<u>Location of Inventory and Equipment; Chief Executive Office</u>**. Each Loan Party will, and will cause each of its Subsidiaries to, keep (a) their Inventory (other than Inventory held by, or maintained with, subcontractors with an aggregate value less than $100,000) and Equipment only at the locations identified on <u>Schedule 4.25</u> to this Agreement (<u>provided</u>, that Borrowers may amend <u>Schedule 4.25</u> to this Agreement so long as such amendment occurs by written notice to Lender not less than ten days prior to the date on which such Inventory or Equipment is moved to such new location and so long as Lender has consented to such amendment and such new location is within the continental United States), and (b) their respective chief executive offices only at the locations identified on Schedule 7 to the Guaranty and Security Agreement. Each Loan Party will, and will cause each of its Subsidiaries to, use their commercially reasonable efforts to obtain Collateral Access Agreements for each of the locations identified on Schedule 7 to the Guaranty and Security Agreement and <u>Schedule 4.25</u> to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 **<u>OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws</u>**. Each Loan Party will, and will cause each of its Subsidiaries to, comply with all Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws. Each of the Loan Parties and its Subsidiaries will implement and maintain in effect policies and procedures designed to ensure compliance by the Loan Parties and their Subsidiaries and their respective directors, officers, employees, agents and Affiliates with, and each of the Loan Parties and their respective Subsidiaries and Affiliates will comply with, all Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 **<u>Right of First Refusal</u>**. Borrowers hereby agree that if, at any time during the term hereof, any Borrower receives from a third party an offer, term sheet or commitment, or any Borrower makes a proposal substantially acceptable to or accepted by any person or entity (all of the foregoing being referred to as an "<u>Offer</u>"), which Offer is in connection with entering into a Hedge Agreement, the applicable Borrower shall first forward the Offer to Lender, which shall have ten Business Days after receipt thereof (the "<u>Option Period</u>") to agree to be the Hedge Provider for such Hedge Agreement upon similar terms and conditions as set forth in the Offer and to notify the applicable Borrower in writing of Lender's acceptance of the Offer (the "<u>Acceptance Notice</u>"). If the applicable Borrower has not received an Acceptance Notice within the Option Period, such Borrower shall be free to consummate the transaction described in the Offer with the third party providing the Offer (the "<u>Hedge Transaction</u>"); <u>provided</u>, <u>however</u>, that the foregoing, and Lender's failure to respond to issue an Acceptance Notice, shall not be construed as a waiver of any of the terms, covenants or conditions of the Loan Documents. In the event that the Hedge Transaction is not consummated under similar terms with such person or entity during the 120 day period following the expiration of the Option Period, or any material term is changed, the applicable Borrower shall not be permitted to consummate the Hedge Transaction without again complying with this <u>Section 5.15</u>. Nothing in this Section is intended, or shall be construed, to constitute Lender's consent to the consummation of any transaction described in any Offer.

&nbsp;&nbsp;&nbsp;&nbsp;6. NEGATIVE COVENANTS.

Each of Parent and each other Borrower covenants and agrees that, until the termination of all of the Commitments and the payment in full of the Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 **<u>Indebtedness</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except for Permitted Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 **<u>Liens</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 **<u>Restrictions on Fundamental Changes</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries 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;(a) other than in order to consummate a Permitted Acquisition, enter into any merger, consolidation, reorganization, or recapitalization, or reclassify its Equity Interests, except for (i) any merger between Loan Parties; <u>provided</u>, that a Borrower must be the surviving entity of any such merger to which it is a party, (ii) any merger between a Loan Party and a Subsidiary of such Loan Party that is not a Loan Party so long as such Loan Party is the surviving entity of any such merger, and (iii) any merger between Subsidiaries of any Loan Party that are not Loan Parties,

&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) liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), except for (i) the liquidation or dissolution of non-operating Subsidiaries of any Loan Party with nominal assets and nominal liabilities, (ii) the liquidation or dissolution of a Loan Party (other than any Borrower) or any of its wholly-owned Subsidiaries so long as all of the assets (including any interest in any Equity Interests) of such liquidating or dissolving Loan Party or Subsidiary are transferred to a Loan Party that is not liquidating or dissolving, or (iii) the liquidation or dissolution of a Subsidiary of any Loan Party that is not a Loan Party (other than any such Subsidiary the Equity Interests of which (or any portion thereof) is subject to a Lien in favor of Lender) so long as all of the assets of such liquidating or dissolving Subsidiary are transferred to a Subsidiary of a Loan Party that is not liquidating or dissolving,

&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) suspend or cease operating a substantial portion of its or their business, except as permitted pursuant to clauses (a) or (b) above or in connection with a transaction permitted under <u>Section 6.4</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; (d) change its classification/status for U.S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 **<u>Disposal of Assets</u>**. Other than Permitted Dispositions or transactions expressly permitted by <u>Sections 6.3</u> or <u>6.9</u>, each Loan Party will not, and will not permit any of its Subsidiaries to, convey, sell, lease, license, assign, transfer, or otherwise dispose of any of its or their assets (including by an allocation of assets among newly divided limited liability companies pursuant to a "plan of division").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 **<u>Nature of Business</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, make any change in the nature of its or their business as described in <u>Schedule 6.5</u> to this Agreement or acquire any properties or assets that are not reasonably related to the conduct of such business activities; <u>provided</u>, that the foregoing shall not prevent any Loan Party and its Subsidiaries from engaging in any business that is reasonably related or ancillary to its or their business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 **<u>Prepayments and Amendments</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries 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; (a) Except in connection with Refinancing Indebtedness permitted by <u>Section 6.1</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) optionally prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of any Loan Party or its Subsidiaries, other than (A) the Obligations in accordance with this Agreement, (B) Hedge Obligations, (C) Permitted Intercompany Advances, (D) Subordinated Indebtedness in accordance with the applicable Subordination Agreement (including, without limitation, payments permitted by the Great Falls Subordination Agreement), (E) [reserved], (F) [reserved], or (G) other Indebtedness so long as the Payment Conditions are satisfied, 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) make any payment on account of Subordinated Indebtedness if such payment is not permitted at such time under the applicable Subordination Agreement or the applicable terms and conditions of such Subordinated Indebtedness, 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) Directly or indirectly, amend, modify, or change any of the terms or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any agreement, instrument, document, indenture, or other writing evidencing or concerning Permitted Indebtedness other than (A) the Obligations in accordance with this Agreement, (B) Hedge Obligations, (C) Permitted Intercompany Advances, (D) Subordinated Indebtedness (except as prohibited by the applicable Subordination Agreement), (E) [reserved], and (F) Indebtedness permitted under <u>clauses (c)</u>, <u>(e)</u>, and <u>(f)</u> of the definition of Permitted Indebtedness,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Governing Documents of any Loan Party or any of its Subsidiaries if the effect thereof, either individually or in the aggregate, could reasonably be expected to be materially adverse to the interests of 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) the Management Agreements if the effect thereof (A) is to increase the management fees or other amounts payable thereunder or (B) either individually or in the aggregate, could reasonably be expected to be materially adverse to the interests of Lender, 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) the Citibank Documents if the effect thereof (A) is to direct any amounts payable to Parent or any other Loan Party under the Citibank Documents to an account that is not subject to a Control Agreement in favor of Lender or (B) either individually or in the aggregate, could reasonably be expected to be materially adverse to the interests of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 **<u>Restricted Payments</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, make any Restricted Payment; <u>provided</u>, that so long as it is permitted by 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;(a) so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom and so long as Parent is a "pass-through" tax entity for United States federal income tax purposes, and after first providing such supporting documentation as Lender may request (including the state and federal tax returns (and all related schedules) of each owner of an Equity Interest in Parent), Parent may declare and pay distributions in the amount of the Pass-Through Tax Liabilities, net of any prior year loss carry-forwards,

&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) Restricted Payments from a Subsidiary of Parent to Parent, 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; (c) other Restricted Payments so long as the Payment Conditions are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 **<u>Accounting Methods</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, modify or change its fiscal year or its method of accounting (other than as may be required to conform to GAAP).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 **<u>Investments</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, directly or indirectly, make or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment except for Permitted Investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 **<u>Transactions with Affiliates</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction with any Affiliate of any Loan Party or any of its Subsidiaries except for:

&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) transactions (other than the payment of management, consulting, monitoring, or advisory fees) between such Loan Party or its Subsidiaries, on the one hand, and any Affiliate of such Loan Party or its Subsidiaries, on the other hand, so long as such transactions (i) are fully disclosed to Lender prior to the consummation thereof, if they involve one or more payments by such Loan Party or its Subsidiaries in excess of $100,000 for any single transaction or series of related transactions, and (ii) are no less favorable, taken as a whole, to such Loan Party or its Subsidiaries, as applicable, than would be obtained in an arm's length transaction with a non-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;(b) any indemnity provided for the benefit of directors (or comparable managers) of a Loan Party or one of its Subsidiaries so long as it has been approved by such Loan Party's or such Subsidiary's board of directors (or comparable governing body) 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;(c) the payment of reasonable compensation, severance, or employee benefit arrangements to employees, officers, and outside directors of a Loan Party or one of its Subsidiaries in the ordinary course of business and consistent with industry practice so long as it has been approved by such Loan Party's or such Subsidiary's board of directors (or comparable governing body) 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;(d) (i) transactions solely among the Loan Parties and (ii) transactions solely among Subsidiaries of Loan Parties that are not Loan Parties,

&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) transactions permitted by <u>Section 6.3</u>, <u>Section 6.7</u>, or <u>Section 6.9</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;(f) the payment, pursuant to the Management Agreements, of (i) accrued and/or past-due directors, management, consulting, monitoring, and advisory fees as of the Closing Date to the Managers or their respective Affiliates so long as (A) no Event of Default has occurred and is continuing or would result therefrom, and (B) after taking into account all such payments to be made on any date, the Loan Parties would have Excess Availability of at least $5,000,000, (ii) regularly scheduled directors, management, consulting, monitoring, and advisory fees to the Managers or their respective Affiliates, so long as no Event of Default has occurred and is continuing or would result therefrom; <u>provided</u>, that if at any time any such regularly scheduled directors, management, consulting, monitoring or advisory fees to the Managers or their respective Affiliates are not permitted to be paid as a result of the failure to satisfy the foregoing condition set forth in this clause (ii), then (A) such amounts shall continue to accrue, and (B) any such amounts that have accrued but which were not permitted to be paid may be paid in any subsequent period so long as the foregoing condition set forth in this clause (ii) is satisfied at the time of the making of such payments, and (iii) reasonable out-of-pocket expenses of, and the indemnification of, Managers or their Affiliates, including in connection with acquisitions or divestitures that are permitted by this Agreement, 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;(g) agreements for the non-exclusive licensing of intellectual property, or distribution of products, in each case, among the Loan Parties and their Subsidiaries for the purpose of the counterparty thereof operating its business, and agreements for the assignment of intellectual property from any Loan Party or any of its Subsidiaries to any Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 **<u>Use of Proceeds</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, use the proceeds of any Loan made hereunder for any purpose other than (a) on the Closing Date, (i) to pay a portion of the consideration payable in connection with the consummation of the Opus Acquisition in an aggregate amount not to exceed $24,067,001, and (ii) to pay the fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, in each case, as set forth in the disbursement letter agreement (in form and substance reasonably satisfactory to Lender) executed by Borrowers, and (b) thereafter, consistent with the terms and conditions hereof, for their lawful and permitted purposes; <u>provided</u>, that (x) no part of the proceeds of the Loans will be used to purchase or carry any such Margin Stock or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors, (y) no part of the proceeds of any Loan or Letter of Credit will be used, directly or indirectly, to make any payments to a Sanctioned Entity or a Sanctioned Person, to fund any investments, loans or contributions in, or otherwise make such proceeds available to, a Sanctioned Entity or a Sanctioned Person, to fund any operations, activities or business of a Sanctioned Entity or a Sanctioned Person, or in any other manner that would result in a violation of Sanctions by any Person, and (z) no part of the proceeds of any Loan or Letter of Credit will be used, directly or indirectly, 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 Sanctions, Anti-Corruption Laws or Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 **<u>Limitation on Issuance of Equity Interests</u>**. Except for the issuance or sale of Qualified Equity Interests by Parent, each Loan Party will not, and will not permit any of its Subsidiaries to, issue or sell any of its Equity Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 **<u>Inventory or Equipment with Bailees</u>**. Each Borrower will not, and will not permit any of its Subsidiaries to, store its Inventory or Equipment at any time with a bailee, warehouseman, or similar party except as set forth on <u>Schedule 4.25</u> (as such Schedule may be amended in accordance with <u>Section 5.13</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 **[<u>Reserved</u>].**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 **<u>Consignments</u>**. Each Loan Party will not, and will not permit any of its Subsidiaries to, consign any of its Inventory (other than Inventory with an aggregate value not to exceed $100,000) or sell any of its Inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale.

&nbsp;&nbsp;&nbsp;&nbsp;7. FINANCIAL COVENANTS.

&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) **Fixed Charge Coverage Ratio**. Each Borrower covenants and agrees that, until the termination of all of the Commitments and the payment in full of the Obligations, each Borrower will maintain a Fixed Charge Coverage Ratio, measured on a month-end basis, of at least the required amount set forth in the following table for the applicable period set forth opposite thereto:

---

| | |
|:---|:---|
| <u>Applicable Period</u> | <u>Applicable Ratio</u> |
| five month period ending September 30, 2023 | 1.05 to 1.00 |
| six month period ending October 31, 2023 | 1.05 to 1.00 |
| seven month period ending November 30, 2023 | 1.05 to 1.00 |
| eight month period ending December 31, 2023 | 1.05 to 1.00 |
| nine month period ending January 31, 2024 | 1.05 to 1.00 |
| ten month period ending February 29, 2024 | 1.05 to 1.00 |
| eleven month period ending March 31, 2024 | 1.05 to 1.00 |
| twelve month period ending April 30, 2024 and each twelve month period ending at the end of each month thereafter | 1.05 to 1.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;8. EVENTS OF DEFAULT.

Any one or more of the following events shall constitute an event of default (each, an "<u>Event of Default</u>") under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 **<u>Payments</u>**. If Borrowers fail to pay when due and payable, or when declared due and payable, (a) within three Business Days after same becomes due, all or any portion of the Obligations consisting of interest, fees, or charges due to Lender, reimbursement of Lender Expenses, or other amounts (other than any portion thereof constituting principal) constituting Obligations (including any portion thereof that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), and such failure continues for a period of three Business Days, (b) all or any portion of the principal of the Loans, or (c) within three Business Days after same becomes due, any amount payable to Lender in reimbursement of any drawing under a Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.2 **<u>Covenants</u>**. If any Loan Party 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;(a) fails to perform or observe any covenant or other agreement contained in any of (i) <u>Sections 3.6</u>, <u>5.1</u>, (solely with respect to clauses (a), (b), (c) and (d) of <u>Schedule 5.1</u>), <u>5.2</u>, <u>5.3</u> (solely if any Borrower is not in good standing in its jurisdiction of organization), <u>5.7</u> (solely if any Borrower refuses to allow Lender or its representatives or agents to visit any Borrower's properties, inspect its assets or books or records, examine and make copies of its books and records, or discuss Borrowers' affairs, finances, and accounts with Responsible Officers of any Borrower to the extent required under the terms of this Agreement), of this Agreement, (ii) <u>Section 6</u> of this Agreement, (iii) <u>Section 7</u> of this Agreement, or (iv) <u>Sections 7(c)</u> or <u>7(k)</u> of the Guaranty and Security Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fails to perform or observe any covenant or other agreement contained in any of <u>Sections 5.3</u> (other than if any Borrower is not in good standing in its jurisdiction of organization), <u>5.4</u>, <u>5.5</u>, <u>5.6</u>, <u>5.8</u>, <u>5.10</u>, <u>5.11</u>, <u>5.1, 5.13</u> and <u>5.14</u> of this Agreement and such failure continues for a period of ten days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of any Borrower, or (ii) the date on which written notice thereof is given to Borrowers by Lender; 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) fails to perform or observe any covenant or other agreement contained in this Agreement, or in any of the other Loan Documents, in each case, other than any such covenant or agreement that is the subject of another provision of this <u>Section 8</u> (in which event such other provision of this <u>Section 8</u> shall govern), and such failure continues for a period of thirty days after the earlier of (i) the date on which such failure shall first become known to any officer of any Borrower, or (ii) the date on which written notice thereof is given to Borrowers by Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 **<u>Judgments</u>**. If one or more judgments, orders, or awards for the payment of money involving an aggregate amount of $250,000, or more (except to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which the insurer has not denied coverage) is entered or filed against a Loan Party or any of its Subsidiaries, or with respect to any of their respective assets, and either (a) there is a period of 30 consecutive days at any time after the entry of any such judgment, order, or award during which (i) the same is not discharged, satisfied, vacated, or bonded pending appeal, or (ii) a stay of enforcement thereof is not in effect, or (b) enforcement proceedings are commenced upon such judgment, order, or award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 **<u>Voluntary Bankruptcy, etc</u>**<u>.</u> If an Insolvency Proceeding is commenced by a Loan Party or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 **<u>Involuntary Bankruptcy, etc</u>**<u>.</u> If an Insolvency Proceeding is commenced against a Loan Party or any of its Subsidiaries and any of the following events occur: (a) such Loan Party or such Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing the Insolvency Proceeding is not dismissed within 60 calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial portion of the business of, such Loan Party or its Subsidiary, or (e) an order for relief shall have been issued or entered therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 **<u>Default Under Other Agreements</u>**. If there is (a) a default in one or more agreements to which a Loan Party or any of its Subsidiaries is a party with one or more third Persons relative to a Loan Party's or any of its Subsidiaries' Indebtedness involving an aggregate amount of $150,000 or more, and such default (i) occurs at the final maturity of the obligations thereunder, or (ii) results in a right by such third Person, irrespective of whether exercised, to accelerate the maturity of such Loan Party's or its Subsidiary's obligations thereunder, (b) a default under the Citibank Documents, or any Loan Party or any other Person (including any of the Citibank Entities) shall contest in any manner the validity, binding nature or enforceability of any of the Citibank Letter Agreements, (c) a default in or an involuntary early termination of one or more Hedge Agreements to which a Loan Party or any of its Subsidiaries is a party involving an aggregate amount of $250,000 or more, or (d) a failure of Opus ServicesCo to perform or observe any material covenant or to provide any Service (as defined in, and in accordance with, the Opus Transition Services Agreement) to Parent, or other material agreement contained in, a default in (after any applicable grace period, if any), or unauthorized termination or cancellation of, the Opus Transition Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 **<u>Representations, etc</u>**<u>.</u> If any warranty, representation, certificate, statement, or Record made herein or in any other Loan Document or delivered in writing to Lender in connection with this Agreement or any other Loan Document proves to be untrue in any material respect (<u>except</u>, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of the date of issuance or making or deemed making thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 **<u>Guaranty</u>**. If the obligation of any Guarantor under the guaranty contained in the Guaranty and Security Agreement or under any other guaranty in favor of Lender is limited or terminated by operation of law or by such Guarantor (other than in accordance with the terms of this Agreement) or if any Guarantor repudiates or revokes or purports to repudiate or revoke any such guaranty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 **<u>Security Documents</u>**. If the Guaranty and Security Agreement or any other Loan Document that purports to create a Lien, shall, for any reason, fail or cease to create a valid and perfected and, except to the extent of Permitted Liens which are non-consensual Permitted Liens, permitted purchase money Liens or the interests of lessors under Capital Leases, first priority Lien on the Collateral covered thereby, except (a) as a result of a disposition of the applicable Collateral in a transaction permitted under this Agreement, or (b) with respect to Collateral the aggregate value of which, for all such Collateral, does not exceed at any time, $150,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 **<u>Loan Documents</u>**. The validity or enforceability of any Loan Document shall at any time for any reason (other than solely as the result of an action or failure to act on the part of Lender) be declared to be null and void, or a proceeding shall be commenced by a Loan Party or its Subsidiaries, or by any Governmental Authority having jurisdiction over a Loan Party or its Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or a Loan Party or its Subsidiaries shall deny that such Loan Party or its Subsidiaries has any liability or obligation purported to be created under any Loan Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.11 **<u>Change of Control</u>**. A Change of Control shall occur, whether directly or indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;9. RIGHTS AND REMEDIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 **<u>Rights and Remedies</u>**. Upon the occurrence and during the continuation of an Event of Default, Lender may, in addition to any other rights or remedies provided for hereunder or under any other Loan Document or by applicable law, do any one or more 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) by written notice to Borrowers, (i) declare the principal of, and any and all accrued and unpaid interest and fees in respect of, the Loans and all other Obligations (other than the Bank Product Obligations), whether evidenced by this Agreement or by any of the other Loan Documents to be immediately due and payable, whereupon the same shall become and be immediately due and payable and Borrowers shall be obligated to repay all of such Obligations in full, without presentment, demand, protest, or further notice or other requirements of any kind, all of which are hereby expressly waived by each Borrower, and (ii) direct Borrowers to provide (and Borrowers agree that upon receipt of such notice Borrowers will provide) Letter of Credit Collateralization to Lender to be held as security for Borrowers' reimbursement obligations for drawings that may subsequently occur under issued and outstanding Letters of Credit;

&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) by written notice to Borrowers, declare the Commitments terminated, whereupon the Commitments shall immediately be terminated together with (i) any obligation of Lender to make Revolving Loans, and (ii) the obligation of Lender to issue Letters of Credit; 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;(c) exercise all other rights and remedies available to Lender under the Loan Documents, under applicable law, or in equity.

The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in <u>Section 8.4</u> or <u>Section 8.5</u>, in addition to the remedies set forth above, without any notice to Borrowers or any other Person or any act by Lender, the Commitments shall automatically terminate and the Obligations (other than the Bank Product Obligations), inclusive of the principal of, and any and all accrued and unpaid interest and fees in respect of, the Loans and all other Obligations (other than the Bank Product Obligations), whether evidenced by this Agreement or by any of the other Loan Documents, shall automatically become and be immediately due and payable and Borrowers shall automatically be obligated to repay all of such Obligations in full (including Borrowers being obligated to provide (and Borrowers agree that they will provide) (1) Letter of Credit Collateralization to Lender to be held as security for Borrowers' reimbursement obligations in respect of drawings that may subsequently occur under issued and outstanding Letters of Credit, and (2) Bank Product Collateralization to be held as security for Borrowers' or their Subsidiaries' obligations in respect of outstanding Bank Products), without presentment, demand, protest, or notice or other requirements of any kind, all of which are expressly waived by Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 **<u>Remedies Cumulative</u>**. The rights and remedies of Lender under this Agreement, the other Loan Documents, and all other agreements shall be cumulative. Lender shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Lender of one right or remedy shall be deemed an election, and no waiver by Lender of any Default or Event of Default shall be deemed a continuing waiver. No delay by Lender shall constitute a waiver, election, or acquiescence by it.

&nbsp;&nbsp;&nbsp;&nbsp;10. WAIVERS; INDEMNIFICATION .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 **<u>Demand; Protest; etc</u>**<u>.</u> Each Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees at any time held by Lender on which any Loan Party may in any way be liable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 **<u>Lender's Liability for Collateral</u>**. Each Borrower hereby agrees that: (a) so long as Lender complies with its obligations, if any, under the Code, Lender shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of the Collateral shall be borne by the Loan Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 **<u>Indemnification</u>**. Each Borrower shall pay, indemnify, defend, and hold the Lender- Related Persons (each, an "<u>Indemnified Person</u>") harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses actually incurred in connection therewith or in connection with the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to the execution and delivery, enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or the monitoring of Loan Parties'] and their Subsidiaries' compliance with the terms of the Loan Documents (<u>provided</u>, that the indemnification in this clause (a) shall not extend to any claims for Taxes, which shall be governed by <u>Section 15</u>, other than Taxes which relate to primarily non-Tax claims), (b) with respect to any actual or prospective investigation, litigation, or proceeding related to this Agreement, any other Loan Document, the making of any Loans or issuance of any Letters of Credit hereunder, or the use of the proceeds of the Loans or the Letters of Credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, and (c) in connection with or arising out of any presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned, leased or operated by any Loan Party or any of its Subsidiaries or any Environmental Actions, Environmental Liabilities or Remedial Actions related in any way to any such assets or properties of any Loan Party or any of its Subsidiaries (each and all of the foregoing, the "<u>Indemnified Liabilities</u>"). The foregoing to the contrary notwithstanding, no Borrower shall have any obligation to any Indemnified Person under this <u>Section 10.3</u> with respect to any Indemnified Liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified Person or its officers, directors, employees, attorneys, or agents. This provision shall survive the termination of this Agreement and the repayment in full of the Obligations. If any Indemnified Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrowers were required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by Borrowers with respect thereto. **WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON**.

&nbsp;&nbsp;&nbsp;&nbsp;11. NOTICES.

Unless otherwise provided in this Agreement, all notices or demands relating to this Agreement or any other Loan Document shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as a party may designate in accordance herewith), or telefacsimile. In the case of notices or demands to any Loan Party or Lender, as the case may be, they shall be sent to the respective address set forth below:

---

| | |
|:---|:---|
| If to any Loan Party: | c/o Elmet Technologies LLC |
|  | 1560 Lisbon Street |
|  | Lewiston, ME 04240 |
|  | Attn: Derek Fox |
|  | Fax No.: [\*\*] |
|  | Email: [\*\*] |
| with copies to: | Preti, Flaherty, Beliveau & Pachios, |
|  | Chartered, LLP |
|  | 57 North Main Street |
|  | Concord, NH, 03301 |
|  | Attn: John M. Sullivan, Esq. |
|  | Fax No.: [\*\*] |
|  | Email: [\*\*] |
| If to Lender: | Wells Fargo Bank, National Association |
|  | One Boston Place, 18th Floor |
|  | Boston, MA 02108-4407 |
|  | Attn: Loan Portfolio Manager – Elmet Technologies LLC |
|  | Fax No.: [\*\*] |
|  | Email: [\*\*] |
| with copies to: | Blank Rome LLP |
|  | 1271 Avenue of the Americas |
|  | New York, NY 10020 |
|  | Attn: Harris J. Diamond, Esq. |
|  | Fax No.: [\*\*] |
|  | Email: [\*\*] |

---

Any party hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other party. All notices or demands sent in accordance with this <u>Section 11</u>, shall be deemed received on the earlier of the date of actual receipt or three Business Days after the deposit thereof in the mail; <u>provided</u>, that (a) notices sent by overnight courier service shall be deemed to have been given when received, (b) notices by facsimile shall be deemed to have been given when sent (<u>except</u>, that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient) and (c) notices by electronic mail 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 email or other written acknowledgment).

&nbsp;&nbsp;&nbsp;&nbsp;12. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE
PROVISION.

&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 VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO, AND ANY CLAIMS, CONTROVERSIES OR DISPUTES ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK; <u>PROVIDED</u>, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT LENDER'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE LENDER ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH BORROWER AND LENDER WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF <u>FORUM NON CONVENIENS</u> OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS <u>SECTION 12(b)</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;(c) **TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF PARENT AND EACH BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS, IF ANY, TO A JURY TRIAL OF ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS (EACH A "<u>CLAIM</u>"). EACH OF PARENT AND EACH BORROWER AND LENDER REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE 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;(d) **EACH OF PARENT AND EACH BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK AND THE STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **NO CLAIM MAY BE MADE BY ANY LOAN PARTY AGAINST LENDER OR ANY AFFILIATE, DIRECTOR, OFFICER, EMPLOYEE, COUNSEL, REPRESENTATIVE, AGENT, OR ATTORNEY-IN-FACT OF LENDER FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOSSES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT OCCURRING IN CONNECTION THEREWITH, AND EACH LOAN PARTY HEREBY WAIVES, RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.**

&nbsp;&nbsp;&nbsp;&nbsp;13. ASSIGNMENTS; SUCCESSORS.

This Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; <u>provided</u>, that no Borrower or any other Loan Party may assign this Agreement or any rights or duties hereunder without Lender's prior written consent and any prohibited assignment shall be absolutely void *ab initio*. No consent to assignment by the Lender shall release any Borrower or any other Loan Party from its Obligations. Lender may assign this Agreement and the other Loan Documents in whole or in part and its rights and duties hereunder or grant participations in the Obligations hereunder and thereunder and no consent or approval by any Borrower or any other Loan Party is required in connection with any such assignment or participation.

&nbsp;&nbsp;&nbsp;&nbsp;14. AMENDMENTS; WAIVERS.

No amendment or modification of this Agreement or any other Loan Document or any other document or agreement described in or related to this Agreement shall be effective unless it has been agreed to by Lender in a writing that specifically states that it is intended to amend or modify specific Loan Documents, or any other document or agreement described in or related to this Agreement. Without in any way limiting the foregoing, (a) (iii) any amendment contemplated by <u>Section 2.12(d)(iii)</u> of this Agreement in connection with a Benchmark Transition Event shall be effective as contemplated by such <u>Section 2.12(d)(iii)</u> hereof and (b) any amendment contemplated by <u>Section 2.6(g)</u> of this Agreement in connection with the use or administration of Term SOFR shall be effective as contemplated by such <u>Section 2.6(g)</u>. No failure by Lender to exercise any right, remedy, or option under this Agreement or any other Loan Document, or delay by Lender in exercising the same, will operate as a waiver thereof. No waiver by Lender will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by Lender on any occasion shall affect or diminish Lender's rights thereafter to require strict performance by Borrowers or any other Loan Party of any provision of this Agreement. Lender's rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Lender may have.

&nbsp;&nbsp;&nbsp;&nbsp;15. TAXES.

All payments made by any Borrower or any other Loan Party hereunder or under any note or other Loan Document will be made without setoff, counterclaim, or other defense. In addition, all such payments will be made free and clear of, and without deduction or withholding for, any present or future Taxes, and in the event any deduction or withholding of Taxes is required, each Borrower shall comply with the next sentence of this <u>Section 15</u>. If any Taxes are so levied or imposed, each Borrower and each other Loan Party agrees to pay the full amount of such Taxes and such additional amounts as may be necessary so that every payment of all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to this <u>Section 15</u> after withholding or deduction for or on account of any Taxes, will not be less than the amount provided for herein or therein; <u>provided</u>, that Borrowers or Loan Parties shall not be required to increase any such amounts if the increase in such amount payable results from Lender's willful misconduct or gross negligence (as finally determined by a court of competent jurisdiction). Each Borrower and each other Loan Party will furnish to Lender as promptly as possible after the date the payment of any Tax is due pursuant to applicable law, certified copies of tax receipts evidencing such payment by such Borrower. Each Borrower agrees to pay any present or future stamp, value added or documentary taxes or any other excise or property taxes, charges, or similar levies that arise from any payment made hereunder or from the execution, delivery, performance, recordation, or filing of, or otherwise with respect to this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;16. GENERAL PROVISIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 **<u>Effectiveness</u>**. This Agreement shall be binding and deemed effective when executed by each Borrower and Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 **<u>Section Headings</u>**. Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3 **<u>Interpretation</u>**. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against Lender or any Borrower, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4 **<u>Severability of Provisions</u>**. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5 **<u>Bank Product Providers</u>**. Each Bank Product Provider in its capacity as such shall be deemed a third party beneficiary hereof and of the provisions of the other Loan Documents for purposes of any reference in a Loan Document to the parties for whom Lender is acting. Lender hereby agrees to act as agent for such Bank Product Providers and, by virtue of entering into a Bank Product Agreement, the applicable Bank Product Provider shall be automatically deemed to have appointed Lender as its agent and to have accepted the benefits of the Loan Documents. It is understood and agreed that the rights and benefits of each Bank Product Provider under the Loan Documents consist exclusively of such Bank Product Provider's being a beneficiary of the Liens and security interests (and, if applicable, guarantees) granted to Lender and the right to share in payments and collections out of the Collateral as more fully set forth herein. In addition, each Bank Product Provider, by virtue of entering into a Bank Product Agreement, shall be automatically deemed to have agreed that Lender shall have the right, but shall have no obligation, to establish, maintain, relax, or release reserves in respect of the Bank Product Obligations and that if reserves are established there is no obligation on the part of Lender to determine or insure whether the amount of any such reserve is appropriate or not. In connection with any such distribution of payments or proceeds of Collateral, Lender shall be entitled to assume no amounts are due or owing to any Bank Product Provider unless such Bank Product Provider has provided a written certification (setting forth a reasonably detailed calculation) to Lender as to the amounts that are due and owing to it and such written certification is received by Lender a reasonable period of time prior to the making of such distribution. Lender shall have no obligation to calculate the amount due and payable with respect to any Bank Products, but may rely upon the written certification of the amount due and payable from the applicable Bank Product Provider. In the absence of an updated certification, Lender shall be entitled to assume that the amount due and payable to the applicable Bank Product Provider is the amount last certified to Lender by such Bank Product Provider as being due and payable (less any distributions made to such Bank Product Provider on account thereof). Borrowers may obtain Bank Products from any Bank Product Provider, although Borrowers are not required to do so. Each Borrower acknowledges and agrees that no Bank Product Provider has committed to provide any Bank Products and that the providing of Bank Products by any Bank Product Provider is in the sole and absolute discretion of such Bank Product Provider. Notwithstanding anything to the contrary in this Agreement or any other Loan Document, no provider or holder of any Bank Product shall have any voting or approval rights hereunder solely by virtue of its status as the provider or holder of such agreements or products or the Obligations owing thereunder, nor shall the consent of any such provider or holder be required (other than in its capacity as Lender, to the extent applicable) for any matter hereunder or under any of the other Loan Documents, including as to any matter relating to the Collateral or the release of Collateral or Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6 **<u>Debtor-Creditor Relationship</u>**. The relationship between Lender, on the one hand, and the Loan Parties, on the other hand, is solely that of creditor and debtor. Lender does not have (nor shall be deemed to have) any fiduciary relationship or duty to any Loan Party arising out of or in connection with the Loan Documents or the transactions contemplated thereby, and there is no agency or joint venture relationship between Lender, on the one hand, and the Loan Parties, on the other hand, by virtue of any Loan Document or any transaction contemplated therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7 **<u>Counterparts; Electronic Execution</u>**. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. Execution of any such counterpart may be by means of (a) an electronic signature that complies with the federal Electronic Signatures in Global and National Commerce Act, as in effect from time to time, state enactments of the Uniform Electronic Transactions Act, as in effect from time to time, or any other relevant and applicable electronic signatures law; (b) an original manual signature; or (c) a faxed, scanned, or photocopied manual signature. Each electronic signature or faxed, scanned, or photocopied manual signature shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Lender reserves the right, in its discretion, to accept, deny, or condition acceptance of any electronic signature on this Agreement. Any party delivering an executed counterpart of this Agreement by faxed, scanned or photocopied manual signature shall also deliver an original manually executed counterpart, but the failure to deliver an original manually executed counterpart shall not affect the validity, enforceability and binding effect of this Agreement. The foregoing shall apply to each other Loan Document, and any notice delivered hereunder or thereunder, mutatis mutandis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8 **<u>Revival and Reinstatement of Obligations; Certain Waivers</u>**. If Lender or any Bank Product Provider repays, refunds, restores, or returns in whole or in part, any payment or property (including any proceeds of Collateral) previously paid or transferred to Lender or such Bank Product Provider in full or partial satisfaction of any Obligation or on account of any other obligation of any Loan Party under any Loan Document or any Bank Product Agreement, because the payment, transfer, or the incurrence of the obligation so satisfied is asserted or declared to be void, voidable, or otherwise recoverable under any law relating to creditors' rights, including provisions of the Bankruptcy Code relating to fraudulent transfers, preferences, or other voidable or recoverable obligations or transfers (each, a "<u>Voidable Transfer</u>"), or because Lender or Bank Product Provider elects to do so on the reasonable advice of its counsel in connection with a claim that the payment, transfer, or incurrence is or may be a Voidable Transfer, then, as to any such Voidable Transfer, or the amount thereof that Lender or Bank Product Provider elects to repay, restore, or return (including pursuant to a settlement of any claim in respect thereof), and as to all reasonable costs, expenses, and attorneys' fees of Lender or Bank Product Provider related thereto, (i) the liability of the Loan Parties with respect to the amount or property paid, refunded, restored, or returned will automatically and immediately be revived, reinstated, and restored and will exist, and (ii) Lender's Liens securing such liability shall be effective, revived, and remain in full force and effect, in each case, as fully as if such Voidable Transfer had never been made. If, prior to any of the foregoing, (A) Lender's Liens shall have been released or terminated, or (B) any provision of this Agreement shall have been terminated or cancelled, Lender's Liens, or such provision of this Agreement, shall be reinstated in full force and effect and such prior release, termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligation of any Loan Party in respect of such liability or any Collateral securing such liability. This provision shall survive the termination of this Agreement and the repayment in full of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16.9 <u>Confidentiality</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) Lender agrees that material, non-public information regarding the Loan Parties and their Subsidiaries, their operations, assets, and existing and contemplated business plans ("<u>Confidential Information</u>") shall be treated by Lender in a confidential manner, and shall not be disclosed by Lender to Persons who are not parties to this Agreement, except: (i) to attorneys for and other advisors, accountants, auditors, and consultants to Lender and to employees, directors and officers of Lender (the Persons in this clause (i), "<u>Lender Representatives</u>") on a "need to know" basis in connection with this Agreement and the transactions contemplated hereby and on a confidential basis, (ii) to Subsidiaries and Affiliates of Lender (including the Bank Product Providers); <u>provided</u>, that any such Subsidiary or Affiliate shall have agreed to receive such information hereunder subject to the terms of this <u>Section 16.9</u>, (iii) as may be required by regulatory authorities so long as such authorities are informed of the confidential nature of such information, (iv) as may be required by statute, decision, or judicial or administrative order, rule, or regulation; <u>provided</u>, that (x) prior to any disclosure under this clause (iv), the disclosing party agrees to provide Borrowers with prior notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior notice to Borrowers pursuant to the terms of the applicable statute, decision, or judicial or administrative order, rule, or regulation and (y) any disclosure under this clause (iv) shall be limited to the portion of the Confidential Information as may be required by such statute, decision, or judicial or administrative order, rule, or regulation, (v) as may be agreed to in advance in writing by Borrowers, (vi) as requested or required by any Governmental Authority pursuant to any subpoena or other legal process; <u>provided</u>, that (x) prior to any disclosure under this clause (vi) the disclosing party agrees to provide Borrowers with prior written notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior written notice to Borrowers pursuant to the terms of the subpoena or other legal process and (y) any disclosure under this clause (vi) shall be limited to the portion of the Confidential Information as may be required by such Governmental Authority pursuant to such subpoena or other legal process, (vii) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Lender or the Lender Representatives), (viii) in connection with any assignment, participation or pledge of Lender's interest under this Agreement; <u>provided</u>, that prior to receipt of Confidential Information any such assignee, participant, or pledgee shall have agreed in writing to receive such Confidential Information either subject to the terms of this <u>Section 16.9</u> or pursuant to confidentiality requirements substantially similar to those contained in this <u>Section 16.9</u> (and such Person may disclose such Confidential Information to Persons employed or engaged by them as described in clause (i) above), (ix) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the other Loan Documents; <u>provided</u>, that prior to any disclosure to any Person (other than any Loan Party, Lender, any of their respective Affiliates, or their respective counsel) under this clause (ix) with respect to litigation involving any Person (other than any Borrower, Lender, any of their respective Affiliates, or their respective counsel), the disclosing party agrees to provide Borrowers with prior written notice thereof, and (x) in connection with, and to the extent reasonably necessary for, the exercise of any secured creditor remedy under this Agreement or under any other Loan Document.

&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) Anything in this Agreement to the contrary notwithstanding, Lender may disclose information concerning the terms and conditions of this Agreement and the other Loan Documents in its marketing or promotional materials, with such information to consist of deal terms and other information customarily found in such marketing or promotional materials and may otherwise use the name, logos, and other insignia of any Borrower or the other Loan Parties and the Commitments provided hereunder in any "tombstone" or other advertisements, on its website or in other marketing materials of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10 **<u>Survival</u>**. All representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that Lender may have had notice or knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of, or any accrued interest on, any Loan or any fee or any other amount payable under this Agreement is outstanding or unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or been terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11 **<u>Patriot Act; Due Diligence</u>**. Lender hereby notifies Loan Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow Lender to identify each Loan Party in accordance with the Patriot Act. In addition, Lender shall have the right to periodically conduct due diligence on all Loan Parties, their senior management and key principals and legal and beneficial owners. Each Loan Party agrees to cooperate in respect of the conduct of such due diligence and further agrees that the reasonable costs and charges for any such due diligence by Lender shall constitute Lender Expenses hereunder and be for the account of Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12 **<u>Integration</u>**. This Agreement, together with the other Loan Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. The foregoing to the contrary notwithstanding, all Bank Product Agreements, if any, are independent agreements governed by the written provisions of such Bank Product Agreements, which will remain in full force and effect, unaffected by any repayment, prepayments, acceleration, reduction, increase, or change in the terms of any credit extended hereunder, except as otherwise expressly provided in such Bank Product Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.13 **<u>Parent as Administrative Borrower for Borrowers</u>**. Each Borrower hereby irrevocably appoints Parent as the borrowing agent and attorney-in-fact for all Borrowers (the "<u>Administrative Borrower</u>") which appointment shall remain in full force and effect unless and until Lender shall have received prior written notice signed by each Borrower that such appointment has been revoked and that another Borrower has been appointed Administrative Borrower. Each Borrower hereby irrevocably appoints and authorizes the Administrative Borrower (a) to provide Lender with all notices with respect to Revolving Loans and Letters of Credit obtained for the benefit of any Borrower and all other notices and instructions under this Agreement and the other Loan Documents (and any notice or instruction provided by Administrative Borrower shall be deemed to be given by Borrowers hereunder and shall bind each Borrower), (b) to receive notices and instructions from Lender (and any notice or instruction provided by Lender to the Administrative Borrower in accordance with the terms hereof shall be deemed to have been given to each Borrower), and (c) to take such action as the Administrative Borrower deems appropriate on its behalf to obtain Revolving Loans and Letters of Credit and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement. It is understood that the handling of the Loan Account and Collateral in a combined fashion, as more fully set forth herein, is done solely as an accommodation to Borrowers in order to utilize the collective borrowing powers of Borrowers in the most efficient and economical manner and at their request, and that Lender shall not incur liability to any Borrower as a result hereof. Each Borrower expects to derive benefit, directly or indirectly, from the handling of the Loan Account and the Collateral in a combined fashion since the successful operation of each Borrower is dependent on the continued successful performance of the integrated group. To induce Lender to do so, and in consideration thereof, each Borrower hereby jointly and severally agrees to indemnify Lender and hold Lender harmless against any and all liability, expense, loss or claim of damage or injury, made against Lender by any Borrower or by any third party whosoever, arising from or incurred by reason of (i) the handling of the Loan Account and Collateral of Borrowers as herein provided, or (ii) Lender's relying on any instructions of the Administrative Borrower***,*** <u>except</u>, that Borrowers will have no liability to the relevant Lender-Related Person under this <u>Section 16.13</u> with respect to any liability that has been finally determined by a court of competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of such Lender-Related Person, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.14 **<u>Acknowledgment Regarding Any Supported QFCs</u>**. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Hedge Agreements or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit 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. Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with the provisions 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 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 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16.15 <u>Amendment and Restatement; Limited Waiver</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) <u>Amendment and Restatement</u>. The terms, conditions, agreements, covenants, representations and warranties set forth in the Existing Credit Agreement are simultaneously hereby amended and restated in its entirety by the terms, conditions, agreements, covenants, representations and warranties set forth in this Agreement and as so amended and restated, replaced and superseded by the terms, conditions, agreements, covenants, representations and warranties set forth in this Agreement and as of the Closing Date, neither Existing Borrower, Existing Guarantors, and Lender shall be subject to or bound by any of the terms of the Existing Credit Agreement and shall only be subject to or bound by the terms and provisions of this Agreement; <u>except</u>, that, nothing in this Agreement shall, in any manner, be construed to constitute payment of, or impair, limit, cancel or extinguish, or constitute a novation in respect of any of the Existing Obligations or any other obligations, liabilities and indebtedness of any Existing Borrower or any Existing Guarantor evidenced by or arising under the Existing Credit Agreement or impair or adversely affect the continuation of the Liens and security interests in the Collateral heretofore granted, pledged and/or assigned by any Existing Borrower or any Existing Guarantor pursuant to or in connection with the Existing Credit Agreement. All Existing Obligations and all other loans, advances and other financial accommodations under the Existing Credit Agreement of any Existing Borrower or any Existing Guarantor to Lender that are outstanding and unpaid as of the Closing Date pursuant to the Existing Credit Agreement or otherwise shall be deemed and shall constitute Obligations of Borrowers and Guarantors under this Agreement which are secured by Liens and security interests in the Collateral pursuant to the terms of this Agreement and the other Loan Documents, and Lender has and shall continue to have a security interest in, and lien upon, the Collateral of Existing Borrower and Existing Guarantors heretofore granted pursuant to the Existing Credit Agreement and the other Existing Loan Documents, as well as any Collateral granted under this Agreement, the other Loan Documents or otherwise granted to or held by Lender, and the Liens of Lender in the Collateral shall be deemed to be continuously granted and perfected from the earliest date of the granting and perfection of such liens and security interests in favor of 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) <u>Limited Waiver.</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) An Event of Default has occurred under <u>Section 8.2(a)</u> of the Existing Credit Agreement as a result of the merger of Elmet Management, LLC, a limited liability company previously formed under the laws of Maine, with and into Parent on or about December 28, 2021, in violation of Section 6.3(a) of the Existing Credit Agreement (the "<u>Specified Event of Default</u>"). Existing Borrower has requested that Lender waive the Specified Event of Default as more particularly set forth below, which Lender has agreed to subject to the terms and conditions set forth in clause (ii) 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;(ii) Provided that all of the conditions set forth in <u>Section 3.1</u> are satisfied, Lender hereby waives the Specified Event of Default. Lender's waiver of the Specified Event of Default shall not impose or imply any obligation on Lender to grant a waiver on any future occasion.

[Signature pages to follow.]

**IN WITNESS WHEREOF,** the parties hereto have caused this Agreement to be executed and delivered as of the date first above written.

---

| | | |
|:---|:---|:---|
| **BORROWERS:** | **ELMET TECHNOLOGIES LLC** | **ELMET TECHNOLOGIES LLC** |
|  | By: | /s/ Peter V. Anania |
|  | Name: | Peter V. Anania |
|  | Title: | President |
|  | **H.C. STARCK SOLUTIONS COLDWATER, LLC** | **H.C. STARCK SOLUTIONS COLDWATER, LLC** |
|  | By: Elmet Technologies LLC, as its sole member | By: Elmet Technologies LLC, as its sole member |
|  | By: | /s/ Peter V. Anania |
|  | Name: | Peter V. Anania |
|  | Title: | President |
|  | **H.C. STARCK SOLUTIONS EUCLID, LLC** | **H.C. STARCK SOLUTIONS EUCLID, LLC** |
|  | By: Elmet Technologies LLC, as its sole member | By: Elmet Technologies LLC, as its sole member |
|  | By: | /s/ Peter V. Anania |
|  | Name: | Peter V. Anania |
|  | Title: | President |

---

[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT]

[Signatures Continued from Previous Page]

---

| | | |
|:---|:---|:---|
| **LENDER:** | **WELLS FARGO BANK, NATIONAL ASSOCIATION** | **WELLS FARGO BANK, NATIONAL ASSOCIATION** |
|  | By: | /s/ Sean Mullaney |
|  | Name: | Sean Mullaney |
|  | Title | Authorized Signatory |

---

[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT]

**EXHIBIT B-1**

<u>**FORM OF BORROWING BASE CERTIFICATE**</u>

**EXHIBIT C-1**

**<u>[FORM OF] COMPLIANCE CERTIFICATE</u>**

**EXHIBIT J-1**

[**<u>FORM OF</u>**] **<u>JOINDER AGREEMENT</u>**

**<u>EXHIBIT P-1</u>**

**FORM OF PERFECTION CERTIFICATE**

**<u>EXHIBIT S-1</u>**

**FORM OF SOFR NOTICE**

## Exhibit 10.23

**Exhibit 10.23**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

October 30<sup>th</sup>, 2024

**SUPPLY & PURCHASE AGREEMENT**

This Supply & Purchase Agreement (the "**Agreement**") is entered into on October 30th, 2024 by and between:

**(A)** **Buyer: ELMET TECHNOLOGIES LLC**, a company duly existing
and incorporated under the laws of Maine (USA), having its registered address at 1560 Lisbon Street, Lewiston, Maine 04240, USA ()"**EMT** ")

**(B)** **Seller: EQ RESOURCES LTD**, a company duly existing and
incorporated under the laws of Victoria, Australia, having its registered address at Level 4, 100 Albert Road, South Melbourne, Victoria
3205, Australia ()"**EQR** ").

WHEREAS, the Parties wish to enter into a transaction for the purchase and delivery of tungsten containing product from the Seller to the Buyer as defined therein.

NOW, THEREFORE, the Parties hereby agree to below terms and conditions:

**1.** **Term (Duration)** 

This Agreement shall be valid from the date of signature hereof and endure until the Parties have met their respective obligations, but at a maximum of five (5) years from the date of signature ("**Term**").

At least 6 (six) months prior to the completion of the Term, the Parties shall enter into mutual discussions to negotiate an extension of this Agreement, i.e. for additional Products to be provided by Seller to Buyer.

During the Term of this Agreement, subject to the terms and conditions of this Agreement, Seller shall sell and deliver to Buyer the Product, as defined in Clause 2, in the quantity determined in accordance with Clause 19 and Clause 20, unless otherwise mutually agreed by the Parties.

**2.** **Product** 

In this Agreement, the Product shall mean Tungsten Concentrate in the form of Scheelite ("**Product**"), which shall comply with the specifications as outlined in **Schedule 1** (**Product Qualities**), unless otherwise agreed between Supplier and Buyer in writing.

**3.** **Origin** 

The primary source of Product shall be Barruecopardo Mine / Saloro S.L.U Operations, Barruecopardo, Salamanca Province, Spain. Upon mutual agreement the Parties may also source the Product from Mount Carbine, Australia.

**4.** **Packing** 

In Big Bags / Supersacks of approx. 1,000kg Net weight measuring 100cm x 100cm x 80cm. Suitable for Ocean Transport.

**5.** **Due Diligence and Reporting Requirements** 

The Seller warrants that the source of the Product is legal and does not originate from conflict areas, nor contribute to human rights abuses, and that all business activities fully comply with RMI-accredited documentary and tagging requirements, which enable full traceability of minerals from source, and conform to the OECD guidance and UN Panel of Experts recommendations.

The Buyer maintains the right to reject Product delivery when the documentation provided is inconsistent with RMI's documentary and Due Diligence requirements, or to accept delayed delivery upon resolution of documentary inconsistencies, with all associated costs for Seller's account. The Buyer shall not be liable for any costs associated with the rejection of the Product because of inconsistencies with RMI's documentary and Due Diligence requirements, and in this instance, the Seller shall hold Buyer harmless from any matters arising from any other parties.

The Seller warrants that it is aware of the Buyers grievance policy and reporting mechanism and commits to educate and encourage its employees to use this mechanism to report any risks or wrong doings in its supply chain.

**6.** **Assaying Procedures** 

Seller warrants that Product quality will meet the specifications as set forth in **Schedule 1** (*Product Qualities*) or as otherwise agreed in writing.

Seller shall arrange for the provisional Weighing, Sampling and Assaying ("WSA") certification at Origin. Costs to be for the Seller's account ("Seller Assay").

Within 15 (fifteen) days upon arrival of the Product at Buyer's works or nominated destination in Vietnam ("Destination"), Buyer shall arrange for Weighing, Sampling and Assaying ("WSA") certification which will be carried out by SGS Vietnam. SGS Vietnam will collect an additional Umpire sample to be kept in a properly sealed and labelled container for 60 days from the sampling date. Costs for WSA at destination shall be for the Buyer's account ("Buyer Assay)".

Upon readiness of Buyer's and Seller's Dry Weights and assay for Product, the Buyer and Seller will exchange Dry Weights and Product assay.

Should the Buyer's and Seller's Weights, WO3 content and Moisture be up to and including 0.5% apart then final settlement shall be the arithmetic average.

Should the Buyer's and Seller's Weights, WO3 content and Moisture be greater than 0.5% then at first the Parties shall negotiate to attempt to reach an amicable settlement, but if such settlement is not forthcoming then either Party shall have the right to request for an umpire analysis to be conducted on the retained umpire sample. In the event of an umpire request the Seller shall instruct the Umpire Assayer to perform an assay on the umpire sample and produce results which shall be final and binding on both Parties. The Umpire Assay shall be provided by a) Alfred H. Knight Group of Companies b) ALS, or other company by mutual agreement.

All costs pursuant to the umpire analysis shall be borne by the party whose results are either (a) below the Umpire Assay; or (b) if both Seller Assay and Buyer Assay are above the Umpire Assay the party whose results are furthest from the Umpire Assay.

**7.** **Product Price:** 

Amounts payable in respect of the Product shall be calculated as follows:

AP = Q x PR x FM

---

| | |
|:---|:---|
| Where: | AP = Amount Payable in US$ |
|  | Q = WO3 Quantity of Product delivered (MTU) |
|  | PR = Payment Ratio (%) |
|  | FM = The average of the Fastmarkets (LMB) LOW quotations for "***Tungsten APT 88.5% WO3 min Europe, CIF Rotterdam & Baltimore duty free, S/mtu WO3"*** during the Quotational Period as defined herein below. |

---

**8.** **Payment Ratio** 

Payment Ratio as defined and mentioned in Clause 7 hereinabove is [\*\*]% or as may be adjusted by the parties to yield a [\*\*] % savings against general market prices.

**9.** **Suspension of Quotation** 

In the event that the Fastmarkets Tungsten price is discontinued, rebased, or ceases to be published or should no longer be internationally recognized as a basis for the settlement of contracts involving tungsten, upon the request of either Party, Buyer and Seller will promptly consult together in good faith with a view to agreeing on a new pricing basis and on the date for bringing such new pricing basis into effect. In doing so the Parties acknowledge that the overarching objective of such consultation shall be to secure the continuity of fair pricing. Any suspension of Quotation shall not be deemed an Event of Default as defined in Clause 22 hereinbelow.

**10.** **Quotational Period ("QP")** 

The QP shall be the Calendar month of shipment (M) as evidenced by the 'Shipped on Board' date on Bills of Lading.

**11.** **Prepayment** 

Buyer shall prepay an amount equal to [\*\*] ([\*\*]) to the Seller as follows: within five) days after this Agreement has been executed by the Parties Buyer shall deposit [\*\*] with Seller. The balance of [\*\*] shall be paid on or before January 31, 2025. The prepayment shall be considered to have been made in United States Dollars at the exchange rate as published by the Reserve Bank of Australia on the date of payment for purposes of Section 12 below. If the Reserve Bank of Australia ceases to publish the exchange rate the rate shall be that as published by the Wall Street Journal for the date of the transfer.

In any case, if this Agreement terminates by its terms pursuant to Section 1 or is terminated early due to an Event of Default, the Seller shall pay the remaining amount (if any) of the Prepayment to Buyer within 15 days after such termination.

The prepayment amount, outstanding at the end of each calendar quarter starting from the date of payment, shall be interest bearing for the Buyer. Any prepayment outstanding at the respective quarter end shall bear an interest equal to the SOFR (Secured Overnight Financing Rate) plus 2.5% margin. A separate interest invoice to be issued by Buyer to Seller on a quarterly basis. The interest amount due shall be deducted from the next following invoice.

**12.** **Prepayment Deduction** 

All prepayments made by the Buyer to the Seller shall be deducted from each invoice by way of a prepayment deduction of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **10%** of the invoice
 amount starting from the first shipment until such time that [\*\*] tons of Product have been
 shipped to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **12.5%** of the
 invoice amount upon completion of (a) until such time an additional [\*\*] tons of Product have
 been shipped to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **15%** of the invoice
 amount upon completion of (b) until such time that the prepayment amount has been fully repaid.

For illustrative purposes see Schedule 2.

For the sake of clarity, in the event that the Parties have met their respective obligations within the time period set forth in Clause 1. ("**Term**") and or the amounts as set forth in Clause 20. ("**Quantity, Purchase Order and Shipment Plan**") any outstanding balance that has not been deducted against the Invoiced value of shipments shall be returned in full by the Seller to the Buyer.

EQR acknowledges that EMT requires a toll treatment agreement with an APT refiner in order to convert EQR's concentrate into a useable raw material for EMT's operations. EQR further acknowledges that the execution of a commercially acceptable toll treatment agreement between EMT and a third-party APT refiner is fundamental to the operation of this Agreement. In the event that any time EMT is not able to obtain an acceptable toll treatment agreement to refine EQR's concentrate through such APT refiner, EMT has the immediate right to demand repayment of EMT's respective outstanding prepayment balance with a 30 days notice.

**13.** **Payment term** 

Buyer shall pay Seller against each Provisional Invoice in cleared funds without deduction, by electronic funds transfer, [\*\*]% Net no later than 7 (seven) days prior to the scheduled CIF arrival date and only after receipt of original shipping documents No. 1-8 mentioned in Clause 16. (Documents).

**14.** **Final Payment** 

Balance payment of [\*\*]% of the total Product Price, plus/minus any difference due between Provisional and Final Invoice value shall be settled between Buyer and Seller in no later than 30 (thirty) days after Product's arrival at destination port and basis the agreed assay results as stipulated in Clause 6 against the receipt of Final Invoice (Commercial Invoice) and relevant documents. If the Buyer's Assay Report is not available within the 30 (thirty) days after arrival then Seller may elect to reference their Assay report as final and binding.

**15.** **Invoice currency:** Invoices shall be presented and amounts
due shall be made in United States Dollars (US$)

**16.** **Documents** 

The Seller shall provide the following documents to the Buyer for each shipment:

1) Provisional Invoice

2) Trucking Waybill / transport document from origin to port of loading

3) [Ocean] Bill of Lading – negotiable

4) Seller's Assay

5) Seller's Packing List

6) Certificate of Origin issued by relevant government authorities

7) Copy of relevant insurance policy certificate in favour of Buyer, for 110% of Amount Payable. Institute Cargo Clauses A – All Risks.

8) Copy of customs export declaration

9) Final Invoice

The Seller shall provide electronic copies of the above documents No.1-8 within 5 business days of delivery (date of bill of lading), and original of the above all documents No.1 through 7 shall be dispatched to the Buyer by international courier within 5 business days of delivery (date of bill of lading). The document No. 8 shall be sent to the Buyer within 3 business days from the date of agreed assay results as stipulated in Clause 6.

17. Shipping terms

Shipping terms shall be CIF Vietnam (INCOTERMS 2020) or other port to be mutually agreed in writing if such port is not available. Seller shall pay all export tariffs and taxes.

18. Title and Risk

The Title and ownership of the Product shall pass to the Buyer simultaneously with the passing of risk. The risk shall pass to the Buyer in accordance with INCOTERMS 2020. The Seller represents and warrants to and covenants with the Buyer that, at each delivery time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is the sole legal and beneficial owner of the Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has good, valid and marketable title to the Product; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Product will be free and clear of any mortgage, debenture,
pledge, hypothec, lien, charge and encumbrance.

19. Forecasting

Consistent with the Shipping plan attached hereto the Seller shall within the first 5 (five) working days of each shipping period provide the Buyer with a forecast of the planned shipment by calendar week for that delivery period. EQR acknowledges that the Shipping forecast is not binding on any party and may vary as demands require.

**20.** **Quantity, Purchase Order (PO), and shipment plan:** 

**Quantity:**

**The Seller shall ship Product to the Buyer, and the Buyer shall receive and purchase Product under the terms of this Agreement until their respective obligations have been met under Clause 12. ("Prepayment Deduction") or this Agreement is terminated pursuant to its terms or an event of default.**

Estimated monthly quantities to be shipped from Seller to Buyer are outlined in Schedule 2. (Initial Forecast).

**Shipment Plan:**

**The Seller shall endeavor to ship the quantities at the times set forth on the attached Schedule 2. The prior sentence notwithstanding, Buyer and Seller shall amend the shipping schedule as necessary to meet Buyer's capacity and requirements.**

**Confirmed Shipments and PO's:**

**Buyer will promptly confirm shipments and issue a binding Purchase Order consistent with Clause 19. ("Forecasting") and the shipping schedule attached hereto as Schedule 2 up to the maximum monthly Quantity. For the avoidance of doubt, Shipping requirements shall be determined solely by the issuance of a Purchase Order and Forecasting is not deemed or implied to be a Purchase Order obligating Buyer to any specific amount.**

21. Force Majeure

Neither Party shall be liable for any delay, non-performance or any other default in performance of the obligations hereunder due to the occurrence of events beyond the reasonable control of the Parties, including, without limitation, prohibition of exportation and/or importation as a consequence of governmental regulations and orders, nationalisation, operation of laws, regulations and orders, war, riot, flood, typhoon, hurricane, tidal wave, earthquake, or other acts of God, all of which are referenced herein as a Force Majeure.

At the occurrence of any event of Force Majeure, causing a failure to perform or a delay in performance of obligation hereunder, the party so affected shall immediately provide a written notice to the other party of such date and the nature of such Force Majeure and the anticipated period of time during which the Force Majeure conditions are expected to persist.

– The party so affected shall make all reasonable efforts to reduce the effect of any failure or delay caused by any event of Force Majeure.

– If the Force Majeure conditions in fact persist for continuous period of sixty (60) days or more, the non-affected party shall have option either to;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) grant the affected party an extension to perform its obligation
until such Force Majeure event ceases; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) terminate the Agreement without any cost or liability to the
terminating party. The prior sentence notwithstanding, a Seller termination of this Agreement for a Force Majeure event shall not relieve
Seller from the obligation to return any remaining Buyer prepayment.

**22.** **Default and Remedies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1 Events of Default. The occurrence of any of the following
events or circumstances shall constitute an event of default under this Agreement (each, an "Event of Default"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Any material breach by any Party of its obligations, representations
and warranties under this Agreement. The failure of Seller to supply Product for a period in excess of 180 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Seller delivery of non-conforming product for more than 2 consecutive
shipments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Any filing for bankruptcy, reorganization or a failure by either
party to meet its general obligations to its creditors in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2 Remedies

– Buyer may terminate this Agreement with immediate effect for any material default by Seller that remains uncured for a period of 30 days following receipt of written notice by Buyer.

Seller may terminate this Agreement with immediate effect for any payment default by Buyer that remains uncured for 30 days from Commercial Invoice due date and/or for any other material default by Buyer that remains uncured after a cure period of 30 days following receipt of written notice by Seller.

– Either Party may terminate this Agreement upon the occurrence of one of the following events:

● the insolvency, bankruptcy, *etc*. of the other Party.

● an event of Force Majeure prevents a Party from performing its obligations for a continuous period of 60 days or more.

– In addition to remedies provided for in this Agreement, the non-defaulting Party shall be entitled to pursue any or all other remedies available to it at law or in equity, including claims for damages, specific performance and/or injunctive relief.

**23.** **Assignment** 

Neither Party may assign nor transfer or purport to assign or transfer any of its rights or obligations hereunder without the other Party's prior written consent (such consent not to be unreasonably withheld, conditioned, or delayed). The prior sentence notwithstanding, (a) the Buyer may assign this Agreement to any party who acquires all, or substantially all, of Buyer's assets; or (b) Seller may at any time grant security over or assign all or any of its rights to payment (but not its obligations of performance) under this Agreement or any document entered into in association with this Agreement to a financial institution or to any affiliate of Seller. Buyer agrees to countersign an acknowledgement of such assignment reasonably requested by Seller. The terms and conditions of this Agreement will be binding upon and inure to the benefit of the parties' respective successors and assigns.

**24.** **Notices** 

The Seller shall deliver to the Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promptly after the Seller has knowledge or becomes aware
thereof, written notice of all actions, suits and proceedings before any Governmental Body or arbitrator, pending or threatened, against
or directly affecting EQR, including any actions, suits, claims, notices of violation, hearings, investigations or proceedings with respect
to the ownership, use, maintenance and operation of EQR, including those relating to environmental laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) promptly after the Seller has knowledge or becomes aware thereof, written notice of any other
 condition or event which has resulted, or that could reasonably be expected to result, in a material adverse change to or effect on
 its ability to perform its obligations under this Agreement.

**25.** **Governing Law:** 

This agreement shall be governed by and construed in accordance with the substantive law of the State of Delaware, USA, without giving effect to its conflict of law principles.

**26.** **Dispute Resolution** 

Any dispute which arising out of or in connection with this Agreement shall be submitted to the American Arbitration Association for final settlement in accordance with AAA International Dispute Resolution Procedures Rules of Arbitration, as such rules may be amended by agreement of the parties, by a tribunal consisting of a sole arbitrator in the English language. The place of arbitration shall be held in New York, New York USA unless otherwise agreed by the Parties. The award of the arbitrator shall be final and binding on both parties. Notwithstanding the foregoing, each Party shall have the right to seek injunctive relief before any court or authority having competent jurisdiction.

**27.** **Confidentiality** 

The Parties shall direct that their affiliates and their respective officers, directors, employees, agents, and representatives to keep the terms of this Agreement, the existence and contents of the discussions and negotiations related to the Agreement confidential, except where disclosure is required by law, regulation, a court, regulatory or governmental body or when the parties mutually agree to the disclosure of the terms hereof. This Confidentiality provision shall survive within two years from the date of termination of this Agreement.

**28.** **Sanctions** 

Each Party represents that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) It intends the transaction to comply, and believes the transaction
will comply, with all economic sanctions, trade embargoes and export control laws, regulations, decrees, orders or requirements ("Sanctions")
which may be applicable to this Agreement.

ii) It has not taken (or refrained from taking) any action that would cause itself or the other party to be in contravention of any applicable sanctions. Each party also undertakes not to take (or refrain from taking) any action, or allow or enable any third party to act in any way, in the performance of this contract or otherwise that would cause the above contravention.

Each Party further represents that none of the following are the subject of sanctions administered or enforced by the United Nations, the United States, the European Union or any other relevant sanctions authority:

- The Party itself,

- (to its reasonable knowledge) any of its owners, subsidiaries or affiliates,

- Any vessel nominated or to be nominated by it pursuant to this Agreement,

- Any ship-owners or charterers of such vessel.

The above clauses are conditions of this Agreement. The above clauses shall not be taken to limit or prevent the operation of the English law doctrine of frustration (or any analogous doctrine under the governing law of the contract), where applicable.

**29.** **Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) *Entire Agreement and Amendments.* This Agreement constitutes
the entire agreement of the Parties with regard to the subject matter hereof, and replaces and supersedes all other agreements or understandings,
whether written or oral, except non-disclosure agreements which shall survive. No amendment or extension of this Agreement or any side
letter to this Agreement shall be binding unless in writing and signed by both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Time shall be of the essence of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) *Partial Invalidity.* If, at any time, any provision
of this Agreement is or becomes illegal, invalid, or unenforceable in any respect under any law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of
any other jurisdiction will in any way be affected or impaired. The Parties shall endeavor to replace any such illegal, invalid or unenforceable
provision by a legal, valid or enforceable one which, as far as possible, is in line with the economic purpose of the illegal, invalid
or unenforceable provision. Failure to agree on a replacement clause shall not make the Agreement illegal, invalid or unenforceable unless
it can be assumed that the Agreement would not have been concluded at all without the illegal, invalid or unenforceable clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) *Limitation of Liability **.*** Except where this
Agreement specifically provides otherwise, any damages or other liability arising under this Agreement shall be limited to the direct,
proximate and foreseeable loss attributable to the relevant act or omission (including fees, expenses and costs), after taking into account
any obligation of a Party seeking damages or indemnification to mitigate its loss, and neither Party, nor any other person claiming through
or under a Party, shall be entitled to damages or indemnification for indirect, remote or unforeseeable loss. or for any loss in the nature of compensation for loss or denial of
opportunity, loss of goodwill or business reputation or other similar indirect or pure economic loss occasioned by that act or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) *No Set-Off:* Neither
 Party may withhold, set off or deduct any sum under this Agreement against a payment due
 to it by the other Party, unless otherwise agreed to herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) *Relationship between the Parties:* Nothing contained herein is intended or shall be construed as creating a
 partnership, joint venture, agency, distributorship or any other relationship except that
 of a seller and a buyer. The Parties are acting in all respects as independent contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) *Non-Waiver:* Failure
 of any Party to effect, or any delay by any Party to effect any available right or remedy
 shall not be construed to operate as a waiver of same.

**IN WITNESS WHEREOF**, the duly authorized representatives of the Parties have caused this Agreement to be signed as of the date stated above.

This Agreement shall be executed in 02 (two) copies with equal legality, each party shall keep 01 (one) copy.

---

| | | | |
|:---|:---|:---|:---|
| **Buyer: Elmet Technologies LLC** | **Buyer: Elmet Technologies LLC** | **Seller: EQ RESOURCES LTD** | **Seller: EQ RESOURCES LTD** |
|  | /s/ Scott Knoll |  | /s/ Oliver Kleinhempel |
| **BY:** | **Scott Knoll<br> Executive Vice President** | **BY:** | **Oliver Kleinhempel <br> Chairman** |

---

**Schedule 1**

[Description of the product quality specifications to be provided pursuant to this Agreement]

**Schedule 2**

[Schedule of the prepayment deductions over the course of the term of the Agreement]

## Exhibit 10.24

**Exhibit 10.24**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

*Date: 30th October 2024*

 

**ELMET TECHNOLOGIES LLC**

1560 Lisbon St.,

Lewiston, ME 04240,

United States of America

**Attn: Peter Anania, President**

<u>Re</u>: *Side Letter concerning the Agreement for the sale of Tungsten Concentrate in the form of Scheelite to Elmet Technologies LLC.*

 

Dear Sir,

**1.** We refer to the Supply and Purchase Agreement dated on or near date hereof between
EQ Resources LTD (EQR) and Elmet Technologies LLC (Elmet) (the "Agreement"). EQ Resources LTD and Elmet Technologies LLC shall
be collectively referred to as "Parties" and individually as "Party" hereinafter.

**2.** Capitalized terms contained in this Side Letter and not otherwise defined shall
have the meanings ascribed to them in the Agreement.

**3.** This Side Letter sets out several prerequisites required for realizing the performance
of the contractual obligations provided for in the Agreement, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In order for the Agreement to come into effect Elmet must enter into one or more
agreements with Masan Tungsten LLC ("Masan") by which Elmet agrees to sell the Product to Masan and Masan agrees to process
the Product and sell Elmet a corresponding amount of Blue Tungsten Oxide (the "Processing Agreements").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Processing Agreements must be executed, in effect and enforceable on or before December 1, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event the Processing Agreements are not in effect as of December 1, 2024
Elmet's initial [\*\*] deposit with EQR shall be treated as a deposit against the delivery of an equivalent amount of Product
to Elmet and shall not be used as a offset against future deliveries under the Agreement, but shall be credited immediately against Purchase
Orders which Elmet intends to place with EQR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. In the event Elmet is unable to come to mutually agreed Processing Agreements with
Masan by December 1, 2024 the Prepayment Provisions set forth in Section 11 of the Agreement shall be suspended until such time as (1)
Elmet has entered into Processing Agreements with Masan; (2) located another processor and enters into a mutually agreed processing agreements
with another vendor; or (3) Elmet terminates the Agreement pursuant to Sections 12 (paragraph 3) and request return of its remaining Prepayment
balance on account with EQR.

**4.** This Side Letter is intended to modify the Agreement pursuant to Section 29 of
the Agreement. This Side Letter becomes effective on the date set forth above and may be executed in counterparts. Each counterpart constitutes
the agreement of the Party who has executed and delivered that counterpart.

**5.** This agreement shall be governed by and construed in accordance with the substantive
law of the State of Delaware, USA, without giving effect to its conflict of law principles.

**6.** Any dispute which arising out of or in connection with this Side Letter or the
Agreement shall be submitted to the American Arbitration Association for final settlement in accordance with AAA International Dispute
Resolution Procedures Rules of Arbitration, as such rules may be amended by agreement of the parties, by a tribunal consisting of a sole
arbitrator in the English language. The place of arbitration shall be held in New York, New York USA unless otherwise agreed by the Parties.
The award of the arbitrator shall be final and binding on both parties. Notwithstanding the foregoing, each Party shall have the right
to seek injunctive relief before any court or authority having competent jurisdiction.

Yours faithfully,

---

| | |
|:---|:---|
| */s/ Oliver Kleinhempel* | */s/ Oliver Kleinhempel* |
| Name: | **Oliver Kleinhempel** |
| Title: | **Chairman** |
| For and on behalf of **EQ Resources LTD** | For and on behalf of **EQ Resources LTD** |

---

ACKNOWLEDGED and ACCEPTED by **ELMET TECHNOLOGIES LLC.**

---

| | |
|:---|:---|
| */s/ Peter V. Anania* | */s/ Peter V. Anania* |
| Name: | **Peter V. Anania** |
| Title: | **President** |

---

## Exhibit 10.25

**Exhibit 10.25**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

December 17, 2024

**FIRST AMENDMENT TO**

**SUPPLY & PURCHASE AGREEMENT**

This First Amendment to Supply & Purchase Agreement (the "**Agreement**") is entered into on December 17, 2024 by and between:

**(A)** **Buyer**: **ELMET TECHNOLOGIES LLC**, a company duly existing and incorporated under the laws of Maine (USA), having its registered address at 1560 Lisbon Street, Lewiston, Maine 04240, USA ()"**EMT** ").

**(B)** **Seller: EQ RESOURCES LTD,** a
 company duly existing and incorporated under the laws of Victoria, Australia, having its
 registered address at Level 4, 100 Albert Road, South Melbourne, Victoria 3205, Australia
 ()"**EQR** ").

WHEREAS, the Parties wish to Amend the payment terms of the Supply and Purchase Agreement dated October 30, 2024 (the "Agreement") to modify the payment terms therein as follows:

**A.** All capitalized terms not defined herein shall be as defined in the Agreement.

**B.** Section 8 (Payment Ratio) shall be changed from [\*\*]. The remaining provisions of this clause remain unchanged.

**C.** Sections 13 and 14 of the Agreement shall be deleted in their entirety and the following shall be inserted in their place:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. RESERVED**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. Payment term**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) So long as Masan Tungsten Limited Liability Company ("Masan") shall act as Buyer's APT refiner, payment of the final invoice shall be linked to Buyer's receipt of payment from Masan for the Product pursuant to Sales Agreement No.: [\*\*]. Buyer shall pay Seller against each Final Invoice in cleared funds without deduction, by electronic funds transfer, no later than 3 (Three) days after its receipt of payment from Masan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Final Invoice amounts shall be determined based on the WSA certification produced pursuant to Purchase Agreement No.: [\*\*] between Masan and Buyer and after receipt of original shipping documents No. 1-8 mentioned in Clause 16. (Documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) In the event Masan shall no longer act as Buyer's APT refiner, the parties shall confer and negotiate new payment terms as may be necessary to maintain the economic value of the Agreement.

**D.** Except as otherwise amended herein, the terms and conditions of the Agreement shall remain in full force and effect.

**IN WITNESS WHEREOF**, the duly authorized representatives of the Parties have caused this Amendment of the Agreement to be signed as of the date stated above.

This Agreement shall be executed in 02 (two) copies with equal legality, each party shall keep 01 (one) copy.

---

| | | | |
|:---|:---|:---|:---|
| **Buyer: Elmet Technologies LLC** | **Buyer: Elmet Technologies LLC** | **Seller: EQ RESOURCES LTD** | **Seller: EQ RESOURCES LTD** |
| ***/s/ Peter Anania*** | ***/s/ Peter Anania*** | ***/s/ Oliver Kleinhempel*** | ***/s/ Oliver Kleinhempel*** |
| **BY:** | **Peter Anania** | **BY:** | **Oliver Kleinhempel** |
|  | **President** |  | **Chairman** |
| | | ***/s/ Zhui Pei Yeo*** | ***/s/ Zhui Pei Yeo*** |
| | | **BY:** | **Zhui Pei Yeo** |
| | |  | **Director** |

---

## Exhibit 10.27

**Exhibit 10.27**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

**EMPLOYMENT AGREEMENT**

This EMPLOYMENT AGREEMENT ("Agreement") is entered into, by and between Anania & Associates, a Maine corporation ("Company"), and Scott W. Knoll ("Knoll") as of January 1, 2017 ("Effective Date").

<u>WITNESSETH:</u>

WHEREAS, the Company and its affiliate, Anania & Associates Investment Company LLC ("AAI"), are engaged in the managing and operating of companies in their portfolio and any future acquisitions of companies added to one of their portfolios, (collectively, the "Portfolio Companies", and together with the Company and AAI, the "Affiliated Companies");

WHEREAS, Peter V. Anania currently owns approximately eighty-eight percent (87.97%) of the shares of the Company and Knoll owns approximately five percent (4.85%) of the shares of the Company; and

WHEREAS, the Company considers it necessary to preserve and continue for the Company the employment of Knoll and to preserve for the business the acquaintance and reputation of Knoll in the areas served, and to be served by such business, and to have the assistance of Knoll in preserving and increasing in such areas the goodwill of the said business.

NOW, THEREFORE, in consideration of the covenants and promises contained herein and of the full and faithful performance of the respective agreements herein contained and the discharge of the respective obligations herein imposed, the parties hereto do hereby mutually covenant and agree with each other as follows:

<u>Section 1. Term.</u> Subject to the provisions of this Agreement, the term of this Agreement shall be for a period of one (1) year. The term of this agreement shall automatically renew for one (1) year subsequent terms unless either the Company or Knoll gives the other written notice not to renew at least sixty (60) days prior to the expiration of the then current term of this Agreement.

<u>Section 2. Employment.</u> During the Term of this Agreement, Knoll agrees to be employed by and to serve the Company as its Vice President of Corporate Development, and the Company agrees to employ and retain Knoll in such a capacity. In such capacity, Knoll shall render such managerial, administrative and other services as are customarily associated with or incident to such position and shall perform such other duties and responsibilities for the Company as the Company may reasonably require, consistent with such position ("Employment Duties"). Knoll shall also serve on the AAI Investment Committee, AAI Intellectual Property Review Board as Chair, and each of the Portfolio Company's Board of Advisors serving at the pleasure of the respective Members. Knoll may from time to time be required to provide assistance for additional duties as directed by the Company. In addition to the Employment Duties, Knoll agrees to and shall furnish to the Company his best advice, information, judgment and knowledge with respect to the affairs, business, business methods and practices, history, patrons, customers, employees and suppliers of the Company, and to generally make efforts to preserve and increase the said business and goodwill thereof. Knoll shall devote substantially all of his business time, energy, and skill to the affairs of the Affiliated Companies. Knoll shall report to the Company's President.

<u>Section 3. Compensation.</u> During the Term of this Agreement, as compensation for such Employment Duties to be rendered by Knoll, the Company agrees to pay to Knoll an annual salary of $125,000 subject to Federal, State and any other applicable deductions and withholdings. At the sole discretion of the Company, Knoll's salary may be increased for each subsequent year, and such adjustment shall be based on the Company's policies and procedures for salary adjustments with all employees. Knoll's compensation shall be payable in installments every other week during the term of this Agreement provided, however, such compensation payments shall terminate on the date of the death of Knoll except to the extent any amounts due have not been paid. Knoll is eligible for all employee benefits available to employees of the Company, all according to the terms set forth in the plan documents of the Company as adopted and amended from time to time, except that Knoll shall start out with four weeks per year of Personal Time Off.

<u>Section 4. Bonuses.</u> During the Term of this Agreement, Knoll shall receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a bonus of 38,877 shares in the Company upon the signing of this Agreement retroactive to the Effective
Date ("Signing Bonus"); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a bonus of $50,000 paid in September 2017 for any and all deals transacted prior to the signing of this
Agreement ("Prior Deals Bonus"); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a bonus of two percent (2.0%) of the acquisition price shall be paid on any buy side transaction originated
or lead by Knoll which is completed by AAI and the Company is reimbursed by AAI for said bonus ("Buy Side Bonus"); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if one of the above buy side transactions upon which Knoll received a Buy Side Bonus is sold, a bonus
of three percent (3.0%) of the proceeds received by AAI minus the acquisition price, shall be paid to Knoll if the sell side transaction
is originated or lead by Knoll and the Company is reimbursed by AAI for said bonus ("Sell Side Bonus"); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if AAI's portfolio company mWAVE Industries LLC ("mWAVE") is sold prior to December
31, 2018 Knoll shall receive a bonus of one percent (1.0%) of the proceeds received by AAI as long as the Company is reimbursed by AAI
for said bonus ("mWAVE Sell Side Bonus"); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if AAI's portfolio company Elmet Technologies LLC ("Elmet") is sold Knoll shall receive
a bonus of five percent (5.0%) of the proceeds received by AAI minus a two times return on AAI's investment in Elmet ("Elmet
Sell Side Bonus"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if during the calendar year 2017 mWAVE achieves operating Net Revenues in excess of $2,650,000 <u>and</u> operating earnings
 before interest, taxes, depreciation and amortization ("EBITDA") in excess of $350,000 Knoll shall receive a $10,000 bonus to be paid within 15 business days of mWAVE closing it books for the 2017 fiscal year ("mWAVE Performance Bonus"); plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) starting in 2018, Knoll shall receive a bonus equal to $2,500 for each incremental 2.5% increase in
 the aggregate operating EBITDA of the portfolio companies owned by AAI for the entire twelve months of the calendar year, capped at $25,000 per year
("Portfolio EBITDA Performance Bonus"), however, said aggregate operating EBITDA must be positive for this Portfolio EBITDA
Bonus to be earned and paid; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) starting in 2018, Knoll shall receive a bonus equal to $2,500 for each incremental 2.5% increase in
 the aggregate operating Net Revenues of the portfolio companies owned by AAI for the entire twelve months of the calendar year,
 capped at $25,000 per year
("Portfolio Revenue Performance Bonus"), however, the aggregate operating EBITDA of the portfolio companies owned by AAI must
be positive for this Portfolio Revenue Bonus to be earned and paid.

All of the above Bonuses are subject to Federal, State and any other applicable deductions and withholdings. Operating EBITDA and operating Net Revenues used in calculating the bonuses above means it shall be adjusted for any onetime events, including the sale of assets, product lines or subsidiaries of any of the portfolio companies.

<u>Section 5. Supervision.</u> Knoll shall discharge and perform all Employment Duties under the direction and subject to the control of the President and/or Board of Directors of the Company. Knoll shall abide by the personnel policies of the Company as may be established or modified from time to time.

<u>Section 6. Covenants.</u> Knoll agrees that at all times during the term of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company shall have the right to display and may use in its advertising, the name and portrait of Knoll;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Knoll will not knowingly or intentionally do or say any act or thing which will or may impair, damage
or destroy the goodwill and esteem for the Affiliated Companies of its suppliers, employees, patrons, customers and others who may at
any time have or have had business relations with the Affiliated Companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Knoll will not encourage, recommend or approve the use at any time of the services of any competitor of
the Affiliated Companies without the consent of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Knoll will not except as required by law reveal to any third person any difference of opinion, if there
be such at any time, between Knoll and the management of the Affiliated Companies as to the Affiliated Companies' personnel, policies
or practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Knoll will not knowingly or intentionally do any act or thing detrimental to the Affiliated Companies
or their business; and

<u>Section 7. Termination.</u> After twelve months from the Effective Date, either the Company or Knoll shall have the right to terminate this Agreement without Cause, upon giving thirty (30) days written notice of such termination, and employment under this Agreement shall thereupon terminate and the Company shall pay to Knoll that portion of the compensation to be paid to him as salary under Section 3 hereof which has accrued to the date of such termination. "Cause" shall be defined, within the reasonable determination of the Company, as any insubordination by Knoll to any superiors of the Company, or failure to perform or carry out any required tasks or Employment Duties or such other tasks, duties or jobs as may be delegated by the Company, its representatives, or Knoll's superiors. Additionally, Cause shall include any actions by Knoll which are reasonably deemed by the Company to be materially dishonest to the Affiliated Companies or its management, or the misappropriation or embezzlement from the Affiliated Companies, or if Knoll shall be convicted of any felony or any crime involving dishonesty. Notwithstanding anything to the contrary set forth in this Agreement, if Knoll shall be terminated for Cause due to being materially dishonest to the Affiliated Companies or its management or misappropriate or embezzle from the Affiliated Companies or if Knoll shall be convicted of any felony or any crime involving dishonesty, the Company may terminate Knoll's employment without prior notice. The covenants of Knoll with regard to trade secrets, confidential information, and noncompetition shall remain in full force and effect and may be enforced as provided herein following any termination of Knoll's employment hereunder.

<u>Section 8. Trade Secrets and Confidential Information.</u> Knoll understands that in the course of Knoll's employment by the Company, Knoll will receive certain trade secrets, lists of Customers and other confidential information concerning the business of the Affiliated Companies which the Company desires to protect. Knoll understands that, among other things, the management methods, operations, techniques, procedures and methods, customer lists, prospective acquisitions, employee lists, training manuals and procedures, personnel evaluation procedures, collection procedure and financial reports of the Affiliated Companies are confidential and are not at any time, during or after the period of Knoll's employment by the Company, to be revealed to anyone not affiliated with the Company without specific written authorization by an officer of the Company except as specifically required to do so by law or order of a court. Knoll agrees not to divulge to anyone not affiliated with the Company such confidential information or trade secrets so long as the confidential or secret nature of such information shall continue unless specifically required to do so by law or by order of a court. Knoll further agrees not to use any such confidential information or trade secrets in competing with the Affiliated Companies at any time during or after his employment by the Company.

<u>Section 9. Return of Confidential Information.</u> Upon the termination of Knoll's employment with the Company, Knoll shall return all documents, papers, and equipment dealing with the Affiliated Companies' confidential information including, without limitation any customer lists, customer contacts, and pricing information.

<u>Section 10. Injunction.</u> The parties hereto, recognizing that immediate irreparable injury to the trade secrets of the Affiliated Companies will inevitably occur in event of a breach of the terms of this contract on the part of Knoll, and result in irreparable damage to the Affiliated Companies, agree that in such event the Company shall be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by Knoll, and all persons acting for or with him.

<u>Section 11. Expense Reimbursement.</u> Knoll is authorized to incur reasonable expenses in accordance with policy established from time to time by the management of the Company. The Company will reimburse Knoll for all such reasonable expenses upon the presentation by Knoll, from time to time, of an itemized account of such expenditures and such receipts or other documents as the Company may require.

<u>Section 12. Facilities and Services.</u> The Company shall cause to be furnished to Knoll such facilities and services which, in the sole judgment of the Company, is suitable to his position and adequate for the discharge of Knoll's duties and services in Knoll's employment.

<u>Section 13. Severability and Waiver.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case any term, phrase, clause, paragraph, restriction, covenant or agreement herein contained shall
be held to be invalid or unenforceable, same shall be deemed and it is hereby agreed that same are meant to be severable and shall not
defeat or impair the remaining provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A waiver by the Company of any breach by Knoll of this Agreement or of any duties imposed upon Knoll by
law or any other cause for discharge of Knoll shall not be construed as a waiver by the Company of its right to terminate this Agreement
for any subsequent or continuing breach of this Agreement or of any of his duties, obligations or agreements herein contained or imposed
by law or for other cause.

<u>Section 14. Binding Effect.</u> This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and the executor, administrator, heirs, personal representatives, and successors or assigns of each.

<u>Section 15. Remedies.</u> The parties agree that the remedy at law for any actual or threatened breach of this Agreement by either would be inadequate and that both shall entitled to specific performance hereof or injunctive relief, or both, by temporary or permanent injunction or other appropriate judicial remedy, writ, or order in addition to any damages which both may legally be entitled to recover, together with reasonable expenses of litigation incurred in connection therewith.

<u>Section 16. Headings.</u> The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

<u>Section 17. Notices.</u> All communications provided for hereunder shall be in writing and shall be deemed to be given when delivered in person or deposited in the United States mail, first class, certified or return receipt requested, with proper postage, prepaid and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Knoll, addressed to:

Scott W. Knoll

[\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Company, addressed to:

Anania & Associates

Attn: Peter V. Anania

[\*\*]

or at such other place or places or to such other person or persons as shall be designated by notice as herein provided by any party hereto.

<u>Section 18. Counterparts.</u> This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

<u>Section 19. Modification.</u> This Agreement may be modified only by a written instrument signed by each of the parties hereto.

<u>Section 20. Governing Law.</u> This Agreement shall be governed under the laws of the State of Maine.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the 1st day of October 2017.

---

| | |
|:---|:---|
| **WITNESS** | **KNOLL:** |
| | */s/ Scott W. Knoll* |
|  | Scott W. Knoll |
|  | **COMPANY:** |
|  | Anania & Associates |
| | */s/ Peter V. Anania* |
|  | Peter V. Anania |
|  | Its: President |

---

## Exhibit 10.28

**Exhibit 10.28**

**Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv). The Company hereby agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request.**

**The omitted portions are (i) not material and (ii) customarily treated by the Company as private and confidential.**

![](ea027036005_ex10-28img1.jpg)

PURCHASE ORDER [\*\*] ISSUE DATE: 8/4/2025 $5,090,250.40 TOTAL AMOUNT: E 8/4/2025 Blanford, Andrew NET 15 08/04/2025 03/04/2027 Attachment 1: BFA General Terms and Conditions Attachment 2: Statement of Work - Elmet Technologies SDF Investment Attachment 3: EB Commercial FAR/DFAR Provisions for FFP Purchase Order Attachment 4: EB Commercial Insurance Requirements Attachment 5: SDF Addendum EXTENDED COST NET UNIT COST QTY DUE DATE U/ M DESCRIPTION STATUS LINE nvelope ID: DF7F8AAB - 40A7 - 429B - 805A - 6B0007B37CC5 SELLER INFORMATION BUYER INFORMATION Elmet Technologies, LLC [\*\*] BlueForge Alliance Headquarters 1560 Lisbon St 3891 S. Traditions Drive Lewison, ME, 04240 Bryan, TX 77807 USA [\*\*] Contact: Justin Cline END PERIOD OF PERFORMANCE START PERIOD OF PERFORMANCE FOB TERMS BUYER ORDER DATE 1 Open Labor EA 3/4/2027 1.00 $2,136,309.21 $2,136,309.21 Firm Fixed Price Prime Contract #: [\*\*] DPAS Rating: DX - A3 2 Open Material EA 3/4/2027 1.00 $2,944,517.19 $2,944,517.19 Firm Fixed Price Prime Contract #: [\*\*] DPAS Rating: DX - A3 3 Open Travel EA 3/4/2027 1.00 $9,424.00 $9,424.00 Firm Fixed Price Prime Contract #: [\*\*] DPAS Rating: DX - A3 Bill To: BlueForge Alliance Headquarters Subtotal Amt: $5,090,250.40 Docusign DOCUMENT: [\*\*] PRINTED: 8/6/25 PAGE 1 of 2

![](ea027036005_ex10-28img2.jpg)

3891 S. Traditions Dr Bryan, TX, 77807 PO Total Tax: PO Total Amt: 0.00 $5,090,250.40 PAYMENT AND BILLING INFORMATION "Invoice Contact" The NTE value of this Purchase Order, plus any applicable taxes, is $5 , 090 , 250 . 40 . Payment terms are NET 15 unless BlueForge provides written notice that the Government/Customer has accelerated payments . Seller will invoice BlueForge in accordance with Clause 6 of the General Purchase Order Terms and Conditions and Invoice Schedule outlined in the Subcontractor Statement of Work . Sufficient Objective Quality Evidence for completed/purchased items should also be included when invoicing . To assure timely payment, please email invoices to the email provided below () . If sending via email, please DO NOT send a duplicate copy through mail . Only if email is not an option, then submit invoices to the billing address indicated in the ("Billing Address") below . All invoices must reference the applicable Purchase Order number [\*\*] . If invoices are not sent as instructed, there may be a delay in payment with no penalty imposed on BlueForge Alliance . Invoice must include Purchase Order Number Invoice Contact: [\*\*] Billing Address: [\*\*] By signing below, Seller acknowledges that it : (1) has reviewed this Purchase Order [\*\*] ("Purchase Order") and all Attachments, (2) understands the Terms and Conditions of this Purchase Order, and (3) agrees to such Terms and Conditions . Subcontractor agrees to perform its Work in strict accordance with this Purchase Order and all Attachments . Subcontractor agrees that this Purchase Order may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument . The person executing this Purchase Order on behalf of Subcontractor affirmatively represents that she/he has the requisite legal authority to enter this Purchase Order on behalf of Subcontractor and bind Subcontractor to the terms and conditions of this Purchase Order . If this Purchase Order is designated a "rated order" under the DPAS, and Subcontractor is a United States (U . S .) company/entity or is a foreign (non - U . S .) entity with U . S . presence, by signing below, Subcontractor acknowledges the receipt of a "rated order" . If Subcontractor is a United States (U . S .) company/entity or is a foreign (non - U . S .) entity with U . S . presence and cannot accept the terms of the "rated order", Subcontractor must immediately notify BlueForge and provide reasons for the rejection of the Purchase Order in writing . "Buyer" or "BlueForge" "Seller" or "Subcontractor" BlueForge Alliance Elmet Technologies, LLC Authorized Representative Signature /s/ Peter V. Anania Date Date Printed Name Printed Name Title Title Docusign Envelope ID: DF7F8AAB - 40A7 - 429B - 805A - 6B0007B37CC5 DOCUMENT: 00001543 PRINTED: 8/6/25 PAGE 2 of 2 Robert Barr Director, Procurement Peter V. Anania 8/7/2025 President Authorized Representative Signature 8/6/2025 /s/ Robert Barr

---

| | |
|:---|:---|
| ![](ea027036005_ex10-28img3.jpg) | BlueForge Alliance<br> 3891 S. Traditions Drive<br> Bryan, TX 77807 |

---

**General Purchase Order Terms and Conditions**

DEFINITIONS:

&nbsp;&nbsp;&nbsp;&nbsp;■ As used in this Purchase Order the term "FAR" means Federal Acquisition Regulations, and any Purchase Order clause that
uses a word or term that is defined in the FAR, the word or term will have the same meaning as the definition in FAR 2.101 in effect on
date of award of the Purchase Order unless-

● The Purchase Order provides a different definition;

● The Parties agree in writing to a different definition;

● The part, subpart, or section of the FAR where the provision or clause is prescribed provides a different meaning; or

● The word or term is defined in FAR Part 31, for use in the cost principles and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;■ As used in this Purchase Order the term "DFARS" means Defense Federal Acquisition Regulation Supplement.

&nbsp;&nbsp;&nbsp;&nbsp;■ If this Purchase Order is issued pursuant to a Government contract, then-

● any property furnished herewith is considered government-furnished property which must be accounted for in accordance with FAR Part 45 unless otherwise specified; and,

● access to technical data and equipment (e.g., "defense articles", "defense services", etc.) is subject to U.S. export controls and must be strictly controlled to preclude unauthorized disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;■ Buyer and Seller may be individually referred to as "Party" or collectively referred to as "Parties."

**1. <u>ACCEPTANCE OF PURCHASE ORDER</u>.** This Purchase Order is Buyer's offer to Seller for the materials specified or the Work to be performed hereunder and, together with any Attachments specifically incorporated herein by reference, contains the entire agreement between Buyer and Seller with respect to such materials or Work, and supersedes any other agreements or understanding made to the date hereof. This offer shall become a contract on the terms and conditions stated herein when it is accepted by both Parties via written acknowledgement. No change, modification or revision of this Purchase Order shall be valid unless in writing and signed by both Parties.

Either party may execute this Purchase Order and any additional documents including, but not limited to, modifications, change orders and representations and certifications related to this Purchase Order by electronic signature. The other party shall be entitled to rely on such electronic signature as evidence that this Purchase Order has been duly executed by an authorized representative. Further, neither party shall contest the validity of this Purchase Order based on the use of electronic signatures.

**2. <u>AMENDMENTS REQUIRED BY GOVERNMENT CONTRACT AND/OR CHANGES OF LAW, RULES, AND/OR REGULATIONS</u>.** The Seller agrees that, it will negotiate in good faith with the Buyer relative to amendments or supplements to this Purchase Order to incorporate additional provisions herein or to change provisions hereof, as may reasonably deem necessary in order to comply with the provisions/clauses/requirements of Buyer's Government contract.

**3. <u>INDEPENDENT CONTRACTOR</u>.** Services rendered by Seller for Buyer and Seller's and Buyer's respective relationship in all matters related to this Purchase Order shall be as independent contractor and not as employee, agent, or servant. Seller shall obey all federal, state, and local safety and health regulations in the performance of the services to be supplied hereunder, and while on the premises of Buyer.

**4. <u>BUSINESS CONDUCT AND ETHICS</u>.** Buyer maintains a comprehensive Ethics and Business Conduct Program, which includes a "Supplier Code of Conduct," or expectations that Buyer holds for its Sellers. Seller agrees that it will adhere to the principles of the Supplier Code of Conduct, including developing a suitable system for identifying and reporting possible violations and agrees that it will invoke similar requirements on its lower-tier subcontractors irrespective of this Purchase Order's value. Additional requirements may apply to those Purchase Orders exceeding the threshold specified in FAR 52.203-13 Contractor Code of Business Ethics and Conduct as invoked on this Purchase Order.

**5. <u>ORDER OF PRECEDENCE</u>.** In the event of any inconsistency between any parts of this Purchase Order, the inconsistency shall be resolved by giving precedence in the following order:

a) Authorized modifications to the Purchase Order,

Page 1 of 13

Rev. 02/2025

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| | |
|:---|:---|
| ![](ea027036005_ex10-28img3.jpg) | BlueForge Alliance<br>3891 S. Traditions Drive<br>Bryan, TX 77807 |

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b) Provisions contained in this Purchase Order with its exhibits, Attachments, drawings, specifications and other plans or documents,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. These Terms and Conditions,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. P.O. Appendices/Attachments,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Drawings and specifications,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Other plans or documents referenced in this Purchase Order, including any Non-disclosure Agreement signed by the Parties.

Seller shall immediately bring any inconsistencies to the attention of the Buyer in writing.

**6. <u>INVOICES AND PAYMENT</u>.** Seller represents and warrants that it will invoice Buyer for its purchase of goods or services in a timely fashion, but in no event more than 30 days after a milestone event, as outlined in Attachment No. 1, Subcontractor's Statement of Work, or delivery of goods or services.

*Copies of all invoices shall be forwarded to Buyer's Invoice Contact identified on the face of this Purchase Order at the email address provided and shall reference the Purchase Order number.*

Seller shall take the following action in the case of any duplicate financing or invoice payment, or if Buyer has otherwise overpaid Seller:

a) Remit overpayment amount to Buyer with a description of overpayment including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Circumstances of the overpayment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Date(s) of overpayment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Purchase Order number affected

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Affected contract line item or sub-line item, if applicable

b) Provide a copy of the remittance and supporting documentation to Buyer.

**7. <u>INSPECTION</u>.** All items are subject to final inspection and acceptance by Buyer and Government at destination, notwithstanding any prior payment or inspection at source, and such inspection shall be made within a reasonable time after delivery. Acceptance of any items by Buyer shall not be deemed to alter or affect the obligations of Seller or the rights of Buyer and its customers under this Purchase Order.

**8. <u>CHANGES</u>.** Buyer may at any time by written notice make changes within the general scope of this Purchase Order to drawings and specifications, shipping instructions, quantities, and delivery schedule. Should any such change increase or decrease the cost of, or the time required for, performance of the Purchase Order, an equitable adjustment in the price and/or delivery schedule may be made. Any claims for adjustment by Seller must be made within twenty (20) business days from the date the change is ordered or within such additional period of time as may be agreed upon. Only Buyer's Procurement Representative has authority to make changes in, to amend, or to modify this Purchase Order on behalf of Buyer. Such changes, amendments or modifications shall be bilateral, must be in writing and signed by Buyer's Procurement Representative and Seller's Representative. In no event shall Seller take direction directly from Buyer's Customer, any higher tier contractor(s), or the U.S. Government, with respect to the applicable prime contract, this Order, and/or any related order, unless specifically directed to do so in writing by Buyer's Procurement Representative.

**9. <u>TITLE AND RISK OF LOSS</u>.** (a) Unless otherwise provided in this Purchase Order, Seller shall have title to and bear the risk of any loss of or damage to the items purchased hereunder until they are delivered in conformity with this Purchase Order at the FOB point specified on the face hereof, and unless otherwise stated in writing by Buyer, upon such delivery title shall pass from Seller to Buyer and Seller's responsibility for loss or damage shall cease except for loss or damage resulting from Seller's negligence or failure to comply with this Purchase Order. Passing of title upon such delivery shall not constitute acceptance of the items by Buyer.

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(b) Unless otherwise provided in this Purchase Order, Seller upon delivery to it or manufacture or acquisition by it, of any materials; parts, special tooling or other property, assumes the risk of and shall be responsible for any loss thereof or damage thereto. Seller, in accordance with the provisions of this Purchase Order, but in any event upon completion thereof, shall return any Buyer Supplied property to Buyer in the condition in which it was received except for reasonable wear and tear and except to the extent that such property has been incorporated in items delivered under this Purchase Order, or has been consumed in normal performance of Work under this Purchase Order. If Seller is furnished Government owned property for use in connection with this Purchase Order, Seller shall comply with the provisions of Federal Acquisition Regulations (FAR), PART 45 -GOVERNMENT PROPERTY which is hereby incorporated herein by reference. "Special Tooling" as herein used includes all special tools, jigs, fixtures, drawings, dies, molds, and patterns acquired or manufactured by Seller for use in the performance of this Purchase Order, and does not include any standard or perishable tooling, gauges, or measuring instruments.

**10. <u>STOP WORK</u>.** Buyer may, by written notice, stop Work under this Purchase Order at any time. Upon receipt of such notice, Seller shall immediately comply with its terms and, during the stop work, take all reasonable steps to minimize the incurrence of costs allocable to the Work covered by the suspension notice. If the stop work ordered under this paragraph results in an increase in the time required for, or in increase in Seller's cost of, the performance of any part of this Purchase Order, Seller may request an equitable adjustment. Seller shall assert its right to an adjustment no later than 20 business days after the Work suspension is lifted. Seller's costs shall be subject to audit and approval by the Government and/or prime contractor.

**11. <u>TERMINATION AND DEFAULTS</u>.** The rights and obligations specified in FAR Section 52.249-2, 52.249-6, and/or 52.249-8, as applicable, are hereby made applicable to this Purchase Order and said sections are hereby incorporated in this Purchase Order by reference, except that the terms "Contracting Officer" and "Government" used therein shall mean "Buyer", "Contractor" shall mean "Seller", "Contract" shall mean, "this Purchase Order", the "Termination for Convenience" clause shall mean the Termination clause referred to in this Article; and the reference therein to a "Disputes" clause shall be inapplicable. Waiver by Buyer of any default by Seller shall not be deemed a waiver of any other default in the "Termination of Convenience" clause, paragraph (d), the term "45 days" is changed to "90 days" and in paragraph (e) the term "1 year" is changed to "6 months". In no event shall Seller acquire any direct claim or cause of action against the United States government.

**12. <u>PROPRIETARY INFORMATION AND INTELLECTUAL PROPERTY</u>.**

a) Except to the extent that information is clearly in the public domain, all information provided by Buyer
to Seller during the performance of this Purchase Order and all improvements, modifications and derivations thereto shall be deemed to
be the proprietary information of Buyer.

b) Seller agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To hold Buyer's proprietary information in confidence and to protect it from release to third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. To disclose Buyer's proprietary information only to Seller's employees who have a need-to-know and only after they have been made
aware of the proprietary nature of the information; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. To use such proprietary information solely for the purposes of performing this Purchase Order.

c) The restriction on release to third parties contained in this paragraph will not apply to release by Seller
to subcontractors that Seller uses in performing this Purchase Order provided Seller includes in such subcontracts a provision substantially
the same as this paragraph.

d) Seller shall not deliver, disclose or incorporate any proprietary information to Buyer without first providing
Buyer with advance notice, and receiving written concurrence. All Seller-delivered information must be properly marked in accordance with
the DFARS clauses invoked herein and associated Attachments.

e) If Seller fails to obtain prior written concurrence, or fails to properly mark the information, such information
shall be deemed to be acquired free from any restrictions and shall be deemed to have been disclosed as part of the consideration for
this Purchase Order. Seller thereby agrees not to assert any claim against Buyer by reason of Buyer's use or alleged use thereof.

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f) The rights and obligations specified in FAR Section 52.227-11, 52.227-11 Alt II, or DFARS 252.227-7038,
as applicable are hereby made applicable to this Purchase Order and said sections are hereby incorporated in this Purchase Order by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In the event that any subcontractor, at any tier, under **t** his Purchase Order, asserts that it is
entitled to furnish such data with less than rights specified herein or that is otherwise proprietary, Seller shall promptly notify Buyer
thereof together with the factual basis for each assertion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The term "technical data" used in this Purchase Order has the meaning set forth in paragraph
(a) of the applicable clause hereof entitled "rights in Technical Data – Other Than Commercial Products and Commercial Services
or Commercial Products and Commercial Services (DFARS 252.227-7013 and 252.227-7015)"

g) All reports, memoranda, or other materials in written form, prepared by Seller pursuant to this Purchase
Order and furnished to Buyer by, or on behalf of, Seller hereunder shall become the sole property of Buyer. Buyer, and Buyer's customer,
shall have an unlimited royalty-free license to use all reports, memoranda, or other materials in written form, prepared by Seller pursuant
to this Purchase Order and furnished to Buyer by, or on behalf of, Seller solely for the purpose of Buyer satisfying its obligations to
the Government or a higher-tiered contractor under the applicable prime contract or higher-tiered subcontract identified in the Purchase
Order.

**13. <u>ACCESS TO PROPRIETARY DATA OR COMPUTER SOFTWARE</u>.**

a) The Seller agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To utilize the proprietary information only in connection with the performance of this Purchase Order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. To use at least the same degree of care in safeguarding Buyer's proprietary information as it uses
to safeguard its own similar, proprietary information that it does not wish to disclose, provided such degree of care is reasonably calculated
to prevent inadvertent disclosure and unauthorized use thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Educate its personnel who will have access to the data or software as to the restrictions under which
access is granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Not disclose the data or software to third party, including but not limited to, any joint venturer, affiliate,
successor, assign of Seller, or other Seller personnel, except as authorized by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Not to use any portion of this proprietary information for personal gain or to advance or support Seller's
or others' business other than for this Purchase Order reproduce the restrictive stamp, marking, or legend on each use of the data or
software whether in whole or in part; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. To notify Buyer immediately upon discovery of any inadvertent disclosure or unauthorized use of proprietary
information and to promptly use reasonable efforts to prevent any further inadvertent disclosure or unauthorized use.

b) The restrictions on use and disclosure of the data and software described above also apply to such information
received from Buyer through any means to which Seller has access in the performance of this Purchase Order that contains proprietary or
other restrictive markings.

c) Seller agrees that it will promptly notify Buyer of any attempt by an individual, company, or Buyer representative
not directly involved in the effort to be performed under this Purchase Order to gain access to such proprietary information. Such notification
shall include the name and organization of the individual, company, or Buyer representative seeking access to such information.

d) Seller shall include this requirement in subcontracts of any tier which involve access to information
covered by paragraph (a).

**14. <u>CLEARANCE OF MATERIAL INTENDED FOR PUBLIC RELEASE</u>.** No news release, advertisement, public announcement, denial, or confirmation of same relating to any part of the subject matter of this Purchase Order, any phase of any program, or any reference to Buyer or its employees hereunder shall be made directly or indirectly without prior written approval of Buyer. A request for public release shall be transmitted to Buyer at least two (2) weeks prior to the anticipated printing or release date. If this Purchase Order is issued under a government contract, the Government is excluded from the restrictions set out in this provision.

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**15. <u>USE OF DESIGNS, DATA, ETC</u>.** Seller agrees that it will keep confidential the features of any equipment, tools, gauges, patterns, designs, drawings, engineering data or other technical or proprietary information furnished by Buyer and use such items only in the production of items under this Purchase Order or other orders from Buyer, and not otherwise, unless Buyer's written consent is first obtained; provided, however, that Seller shall have the right to use such items in the manufacture of end items for direct sale to the Government to the extent the Government has the right under its prime contracts with Buyer to authorize such use by Seller. Upon completion or termination of this Purchase Order, Seller shall return all such items to Buyer or make such other disposition thereof as may be directed or approved by Buyer.

**16. <u>EXPORT AND IMPORT COMPLIANCE</u>.**

a) Export Compliance. Seller is advised that its performance of this Order may involve the use of or access
to articles, technical data or software that is subject to export controls under 22 United States Code 2751 – 2796 (Arms Export
Control Act) and 22 Code of Federal Regulations 120-130 (International Traffic in Arms Regulations) or 50 United States Code 2401 –
2420 (Export Administration Act) and 15 Code of Federal Regulations 768 – 799 (Export Administration Regulations) and their successor
and supplemental laws and regulations (collectively hereinafter referred to as the "Export Laws and Regulations"). Seller
represents and warrants that it is either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A U.S. Person as that term is defined in the Export Laws and Regulations; or,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. That it has disclosed to Buyer's Representative in writing the country in which it is incorporated
or otherwise organized to do business, or if a natural
person, all citizenships and U.S. immigration status.

b) Seller shall comply with any and all Export Laws and Regulations, and any license(s) issued thereunder,
including but not limited to, the requirement for Seller to register with the Department of State in accordance with the ITAR.

c) Foreign Personnel/Persons. Seller shall not give any Foreign Person (including Seller's own non-U.S.
employees or affiliates) access to Technical Data, software or Defense Articles, or provide an unauthorized Defense Service as those terms
are defined in the applicable Export Laws and Regulations without the prior written consent of Buyer. Any request for such consent must
state the intended recipient's citizenship(s), and status under 8 U.S.C. 1101 and 8 U.S.C. 1324 (the "Immigration and Naturalization
Act"), and such other information as Buyer may reasonably request. No consent granted by Buyer in response to Seller's request
under this paragraph c shall relieve Seller of its obligations to comply with paragraph B of this provision or the Export Laws and Regulations,
nor shall any such consent constitute a waiver of the requirements of paragraph B, nor constitute consent for Seller to violate any requirement
of the Export Laws and Regulations.

d) Indemnification. Seller shall indemnify and hold harmless Buyer, Buyer's parent and affiliates and
their respective officers, directors, and employees from and against any and all liabilities, claims losses and expenses arising out of
the failure of Seller, its employees, subcontractors, or agents to comply with the requirements of this provision and breach of the warranty
set forth in paragraph a. Seller shall, at its own cost, defend Buyer against such claims, losses, and liabilities, and, it shall pay
Buyer's reasonable attorney fees and expenses, related to carrying out and enforcing the terms of this provision, as those costs
are incurred. Buyer has the right to conduct such defenses if it so chooses. Any failure of Seller to comply with the requirements or
any breach of the warranty contained in this provision shall be a material breach of this Purchase Order.

e) Additional restrictions apply to Naval Nuclear Propulsion Information (NNPI). Refer to applicable provisions
below.

f) **Marking Requirements.** Seller shall place the following statement on documents containing defense
technical data that is controlled by the Arms Export Control Act:

**"WARNING - This document contains technical data whose export is restricted by the Arms Export Control Act (Title 22, U.S.C. Sec. 2751, et seq.) or the Export Administration Act of 1979, as amended, Title 50, U.S.C., App 2401, et seq. Violations of these export laws can result in severe criminal penalties. Disseminate in accordance with provisions of OPNAVINST 5510.161."**

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g) **Subcontracts.** The substance of this provision shall be incorporated into any lower-tier subcontract
entered into by Seller for the performance of any part of the Work under this Purchase Order.

**17. <u>EXPORTS, RE-EXPORTS, RE-TRANSFERS AND SUBLICENSING</u>**

a) No export, re-export, re-transfer, or sublicensing in performance of this Purchase Order or any subcontract
hereunder, at any tier and regardless of location, may be made prior to receiving (1) written Buyer approval and (2) any required Government
export authorization.

b) When Buyer and/or Government approval is required, the Seller
agrees to provide Buyer with the following: name of subcontractor, full address of subcontractor including their country, role of subcontractor,
a list of defense articles and/or technical data to be transferred.

c)  **<u>Notification.</u>** Seller will notify Buyer if any
deliverable under this Purchase Order is subject to the export control laws or regulations of any non-U.S. country.

**18. <u>INDEMNIFICATION</u>.**

a) Both Parties agree to indemnify, defend, and hold harmless
the other Party, its affiliates, and their respective officers, directors, customers, agents, and employees, (collectively, the "Indemnified
Parties") from and against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest,
awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys' fees, arising from or in connection
with a breach of this agreement by the either Party or its representatives.

b) Both Parties agrees to pay or reimburse all costs that may
be incurred by either Party in enforcing this indemnity, including attorney's fees, court costs, settlement costs, or any amount
withheld from Buyer's higher-tier Government contract.

c) Neither Party shall not settle any suit or claim which arises
under this clause without the other Party's prior written approval.

d) At either Party's request, the other Party shall defend
the requesting Party, its affiliates, and their respective officers, directors, customers, agents, and employees, against all losses,
damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses arising
from any act or omission of Seller, Seller's parent company (if applicable), its officers, directors, agents, employees, suppliers,
or subcontractors at any tier, in the performance of any of its obligations under this Purchase Order.

**19. <u>COMPLIANCE WITH LAWS</u>**

a) In performing Work under this Purchase Order, Seller shall
comply with all applicable foreign or domestic laws, orders, rules, ordinances and regulations.

b) To the extent not exempt, this contractor and subcontractor
shall abide by the requirements of 41 CFR §§ 60-1.4(a), 60-300.5(a) and 60-741.5(a). These regulations prohibit discrimination
against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination
against all individuals based on their race, color, religion, sex, sexual orientation, gender identity, or national origin. Moreover,
these regulations require that covered prime contractors and subcontractors take affirmative action to employ and advance in employment
individuals without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, protected veteran status,
or disability. In addition, this contractor will not discharge or in any other manner discriminate against any employee or applicant
for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant
or another employee or applicant. To the extent not exempt, this contractor and subcontractor shall also abide by the requirements of
29 CFR Part 471, Appendix A.

**20. <u>SUBCONTRACTING OR ASSIGNING</u>**. Neither this Purchase Order nor the obligations of Seller hereunder shall be subcontracted, assigned, or delegated by operation of law or otherwise without Buyer's prior written consent.

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**21. <u>GOVERNING LAW</u>.** This Purchase Order incorporating these terms and conditions and the performance of the parties hereunder shall be construed in accordance with and governed by the laws of the State of Texas. Venue shall be Brazos County, Texas.

**22. <u>DISPUTES</u>.** The Parties shall negotiate in good faith to resolve any and all claims, disputes, or controversies arising under, out of, or in connection with this Purchase Order. If any such claim, dispute, or controversy is not settled through negotiation within a period of thirty (30) days from the commencement thereof (or such later date agreed to by the Parties), then the Parties shall try in good faith to settle it through non-binding mediation administered by the American Arbitration Association in accordance with its Commercial Mediation Procedures. If any such claim, dispute, or controversy is not settled through mediation within a period of sixty (60) days from the commencement thereof (or such later date agreed to by the Parties) it shall be resolved in accordance with any available legal proceedings; provided, however, that nothing in this Section 22 shall preclude a Party from pursuing injunctive or other equitable relief at any time in a court of competent jurisdiction to protect its intellectual property and/or confidential information.

**23. <u>TRAVEL EXPENSES</u>.** Travel expenses for lodging and per diem (including meals and incidentals) must be in compliance with current Federal Travel Regulation (FTR) for applicable location(s) at the time of travel. Airfare will be reimbursed for the lowest priced airfare available to Seller during normal business hours and travelers must use the least expensive compact car available, unless an exception for another class of vehicle is approved. Travelers are not to be reimbursed for purchasing pre-paid refueling options for rental cars. Reimbursement for personal vehicle usage/mileage shall be in accordance with the current FTR mileage rate at the time of travel. Seller shall obtain and maintain receipts for audit purposes to substantiate invoiced amounts for travel expenses.

**24. <u>WORKMANSHIP AND WARRANTY</u>.** Seller shall perform the services diligently and carefully in accordance with the degree of skill normally exercised by recognized professional persons or firms which supply services of a similar nature. Furthermore, and without limitation, Seller shall comply with process conformity, safety, and understand the importance of ethical behavior when performing services or providing goods to Buyer. Seller warrants that it is not aware presently of any facts that indicate to it that entering this Purchase Order will conflict with any obligations Seller may have under any other contracts, agreements, or obligations.

Seller warrants of the life of the equipment: (a) all items delivered under this Purchase Order will be free from defects in material and workmanship, will conform to applicable specifications and drawings and, to the extent such items are not manufactured pursuant to detailed designs furnished by Buyer, will be free from defects in design and suitable for the intended purposes; (b) unless otherwise stated on the face of this Purchase Order, all items delivered under this Purchase Order are new, have not been previously used and are not former Government surplus property; (c) all materials herein described and the sale thereof do not, and the use of the same for their intended purposes will not, constitute infringement or contributory infringement of any patent, copyright or trademark, or violation of any trade secret; and (d) in the performance of this Purchase Order. Seller has complied or will comply with all applicable Federal, State, and local laws and ordinances and all lawful orders, rules, and regulations thereunder. These warranties are in addition to and shall not be construed as restricting or limiting any warranties of Seller, expressed or implied, which are provided or exist by operation of law. The warranties of Seller, together with its service warranties and guarantees, if any, shall run to Buyer and its customers.

Seller shall immediately notify Buyer's Purchase Order contact by telephone of deficiencies of which Seller becomes aware during the performance of this Purchase Order and during the warranty period. Seller shall promptly follow up its telephonic notice with a letter to Buyer's contact identified on the face of this Purchase Order describing the deficiency and its plan for remedying it. For the purposes of this paragraph, a deficiency occurs when Seller's goods or services fail to meet any of the performance obligations set forth above. Seller's notice shall in no way affect the rights and remedies of Buyer.

**25. <u>INSURANCE</u>.** If applicable, Seller shall comply with the attached Insurance Requirements and provide a certificate of insurance meeting these requirements prior to the start of Work. Failure to comply may result in delay of payment.

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**26. <u>ADDITIONAL TERMS AND CONDITIONS</u>.** If this Purchase Order is issued under a government contract, and to the extent they are required by the contract under which this Purchase Order is issued, or by the Federal Acquisition Regulations (FAR) or other comparable government procurement regulations, and subject to the exemptions, conditions, and limitations therein specified, the attached FAR/DFAR clauses are incorporated herein and made a part hereof. Seller shall include in each lower-tier Purchase Order or subcontract the appropriate flow-down clauses as required by FAR and DFARs. FAR/DFARS clauses may be added to this Purchase Order by Executive Order. Flow-down provisions that are not applicable to the scope of this Purchase Order are deemed self-deleting.

**27. <u>ACCESS TO DATA OR COMPUTER SOFTWARE WITH RESTRICTIVE MARKINGS (NAVSEA) (JAN 2019)</u>**

a) Performance under this Purchase Order may require that the
Subcontractor have access to technical data, computer software, or other sensitive data of another party that contains restrictive markings.
If access to such data or software is required or to be provided, the Subcontractor shall enter into a written agreement with such party
prior to gaining access to such data or software. The agreement shall address, at a minimum, (1) access to, and use of, the restrictively
marked data or software exclusively for the purposes of performance of the work required by this Purchase Order, and (2) safeguards to protect such data
or software from unauthorized use or disclosure for so long as the data or software remains properly restrictively marked. In addition,
the agreement shall not impose any limitation upon the Government/Buyer or its employees with respect to such data or software. A copy
of the executed agreement shall be provided to the Buyer. The Buyer may unilaterally modify the Purchase Order to list those third parties
with which the Subcontractor has agreement(s).

b) The Subcontractor agrees to: (1) Educate its personnel who
will have access to the data or software as to the restrictions under which access is granted; (2) not disclose the data or software
to another party or other Subcontractor personnel except as authorized by the Government/Buyer; (3) not engage in any other action, venture,
or employment wherein this information will be used, other than under this Purchase Order, in any manner inconsistent with this requirement;
(4) not disclose the data or software to any other party, including, but not limited to, joint venturer, affiliate, successor, or assign
of the Subcontractor; and (5) reproduce the restrictive stamp, marking, or legend on each use of the data or software whether in whole
or in part.

c) These restrictions on use and disclosure of the data and
software also apply to information received from the Government/Buyer through any means to which the Subcontractor has access in the
performance of this Purchase Order that contains restrictive markings.

d) The Subcontractor agrees that it will promptly notify the
Buyer of any attempt to gain access to any information with restrictive markings. Such notification shall include the name and organization
of the individual, company, or Government/Buyer representative seeking access to such information.

e) The Subcontractor shall include this requirement in subcontracts
of any tier which involve access to information covered by paragraph (a).

f) Compliance with this requirement is a material requirement
of this Purchase Order.

**28. <u>REQUIRED DISCLOSURE OF ORGANIZATIONAL CONFLICT OF INTEREST (NAVSEA) (NOV 2022)</u>**

a) "Organizational Conflict of Interest" means that
because of other activities or relationships with other persons, a person is unable or potentially unable to render impartial assistance
or advice to the Government/Buyer, or the person's objectivity in performing the contract work is or might be otherwise impaired, or
a person has an unfair competitive advantage. "Person" as used herein includes Corporations, Partnerships, Joint Ventures,
and other business enterprises.

b) The Subcontractor warrants that to the best of its knowledge
and belief, and except as otherwise set forth in the Purchase Order, at the time of execution of this Purchase Order the Subcontractor
does not have any organizational conflict of interest(s) as defined in paragraph (a).

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c) The Subcontractor agrees that, if after award, it discovers
an actual or potential organizational conflict of interest, it shall make immediate and full disclosure in writing to the Buyer. The
notification shall include a description of the actual or potential organizational conflict of interest, a description of the action
which the Subcontractor has taken or proposes to take to avoid, mitigate, or neutralize the conflict, and any other relevant information
that would assist the Buyer in making a determination on this matter. Notwithstanding this notification, the Buyer may terminate the
Purchase Order for the convenience of the Buyer if determined to be in the best interest of the Buyer.

d) Notwithstanding paragraph (c) above, if the Subcontractor
was aware, or should have been aware, of an organizational conflict of interest prior to the award of this Purchase Order or becomes,
or should become, aware of an organizational conflict of interest after award of this Purchase Order and does not make an immediate and
full disclosure in writing to the Buyer, the Buyer may terminate this Purchase Order for default.

e) If the Subcontractor fails to take action required by this
requirement, or required by the Buyer upon receipt of the Subcontractor's disclosure required by paragraph (c), the Buyer may terminate
this Purchase Order for default.

f) The Buyer/Government's decision as to the existence
or nonexistence of an actual or potential organizational conflict of interest shall be final.

g) The Subcontractor shall promptly notify the Buyer, in writing,
if it has been tasked to evaluate or advise the Government/Buyer concerning its own products or activities, those of its Subcontractors,
those of one of its prime contractors (to which the Subcontractor is also a Subcontractor), or those of a competitor in order to ensure
proper safeguards exist to guarantee objectivity and to protect the Buyer/Government's interest.

h) The Subcontractor shall include this requirement in subcontracts
of any tier which involve access to information or situations/conditions covered by the preceding paragraphs.

i) The rights and remedies described herein shall not be exclusive
and are in addition to other rights and remedies provided by law or elsewhere included in this Purchase Order.

j) Compliance with this requirement is a material requirement
of this Purchase Order.

**29. <u>BILLING FOR ACHIEVEMENT OF PERFORMANCE MILESTONES</u>**

a) Buyer will process billings for Seller achievement of prescribed
Performance Milestones delineated by this Purchase Order or Attachment/Appendix to this Purchase Order. The Seller shall not be entitled
to payment of a request for Milestone Payment prior to the successful accomplishment of the Event or performance criterion for which
payment is requested. Billing for partial milestone completion is not allowed. The Buyer may at any time, require the Seller to substantiate
the successful performance of any event or performance criterion which has been or is represented as being payable. The Buyer may request
the Seller to submit a spend curve detailing their planned expenditures over the Purchase Order period of performance.

The billing value for the individual and cumulative performance milestone events shall not exceed 90 percent of the contract price if on a whole contract basis, or 90 percent of the delivery item price if on a delivery item basis. Final billing shall be based upon delivery requirements found elsewhere in this Purchase Order. Frequency of billing shall occur no more than monthly or as mutually agreed to by Buyer and Seller. Invoice submittals shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Identify Purchase Order number;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Identify Performance Milestone Event being invoiced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Include all required support data as required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Include current manufacturing schedule noting critical path
with projected completion dates, if requested; and,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Include a certification signed by an officer of Seller attesting
to the fact that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The individual as well as cumulative milestone events being
billed for have been completed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the payment request is true and correct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. payments to subcontractors and suppliers have been paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. There are no encumbrances against the property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. There has been no change in the financial condition of the
Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. The amount of all payments will not exceed the contract price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. The supporting records of work required under this Purchase
Order for the completed milestones are accurate, complete and available to Buyer for review.

b) Liquidations. All Performance Milestone payments shall be
liquidated by deducting from any payment under this Purchase Order, other than advance payments, the unliquidated performance milestone
payments. The Seller shall repay to the Buyer any amounts required by a retroactive price reduction, after computing liquidations and
payments on past invoices at the reduced prices and adjusting the unliquidated payments accordingly. The Buyer reserves the right to
unilaterally change from the ordinary liquidation rate to an alternate rate when deemed appropriate for proper contract financing.

c) Reduction or Suspension. The Buyer may reduce or suspend
Performance Milestone payments after finding on substantial evidence any of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Seller failed to comply with any material requirement
of this Purchase Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Performance of this Purchase Order is endangered by the Seller's
(i) failure to make progress or (ii) unsatisfactory financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Seller is delinquent in payment of the costs of performing
this Purchase Order in the ordinary course of business.

d) Security Interest. By acknowledgement of this Purchase Order,
Seller agrees to execute a financing statement (uniform commercial code form 1) giving the Buyer a security interest in the material
covered by this Purchase Order and authorizes the Buyer to file said statement in any public office. Payment of performance milestone
payments will be withheld until this document is received by the Buyer. At Buyer's request, Seller shall segregate and mark in accordance
with Buyer's instructions the material and any and all of the personal property and goods, including without limitation raw materials,
inventory, work-in-process, finished goods, drawings, designs, models, tools, dies, molds, and contract rights with respect to which
Seller hereby gives a security interest.

At Buyer's request, Seller shall perfect a security interest covering any and all items which the Seller may order from third parties to be used in connection with Buyer's purchase orders for which third parties require advance payments or progress payments. Upon request Seller shall have Seller's subcontractors give Buyer such further assurances, execute such further documents (including financing statements under the uniform commercial code), and perform acts as Buyer may require.

At Buyer's request, Seller shall direct any third party suppliers of goods to be used in connection with Buyer's purchase orders to deliver said goods to the order of Buyer. In the event of Seller's default or in the event Buyer - deems itself insecure (subject to the right to cure set forth below), Buyer may enter Seller's premises and take immediate possession of any collateral hereinabove described, whether payment has been made or not, subject only to the obligations of the Buyer and Seller under this Purchase Order. Should Buyer deem itself insecure it shall provide Seller 30 day's notice of its concerns and shall permit Seller an opportunity to provide adequate assurance of performance within such 30 day period. Should Seller fail to provide adequate assurance of performance, Buyer shall be free to exercise the rights set forth herein. Except for such rights which may be held by Seller's financial institution and reflected in an Intercreditor Agreement between Buyer and Seller's financial institution, the Seller will not create or permit to be created any lien or encumbrance upon the material or any part thereof except as provided herein.

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e) Risk of Loss. Except to the extent that the Buyer shall have
otherwise expressly assumed the risk of loss of property in the event of the loss, theft or destruction of or damage to any such property
before its delivery to and acceptance by the Buyer, the Seller shall bear the risk of loss and shall repay the Buyer an amount equal
to the unliquidated progress payments based on costs allocable to such lost, stolen, destroyed, or damaged property.

f) Control of Costs and Property. The Seller shall maintain
an accounting system and controls adequate for the proper administration of this clause.

g) Reports-Access to Records. The Seller will (i) furnish promptly
such relevant reports, certificates, financial statements, and other information as may be requested by the Buyer, and (ii) give the
Buyer reasonable opportunity to examine the Seller's records, and verify performance of this Purchase Order for administration of this
clause.

h) Special Provisions Regarding Default. If this Purchase Order
is terminated pursuant to the clause, entitled "Default," (i) the Seller shall, upon demand, pay
to the Buyer the amount of unliquidated milestone payments, and (ii) with respect to all property as to which the Buyer elects not to
require delivery under the clause, entitled "Default," title shall vest in the Seller upon full liquidation of Milestone Payments,
and the Buyer shall be liable for no payment except as provided by the "Default" clause.

i) Reservation of Rights. The rights and remedies of the Buyer
provided in this clause, shall not be exclusive, and are in addition to any other rights and remedies provided by law or under this Purchase
Order. No payment, or vesting of title pursuant to this clause, shall excuse the Seller from performance of his obligations under this
Purchase Order, nor constitute a waiver of any of the rights and remedies of the parties under this Purchase Order. No delay or failure
of the Buyer in exercising any right, power, or privilege under this clause shall affect any such right, power, or privilege nor shall
any single or partial exercise thereof preclude or impair any further exercise thereof or the exercise of any other rights, power, or
privilege of the Buyer.

**30. <u>REDUCTION OR SUSPENSION OF CONTRACT PAYMENTS UPON FINDING OF FRAUD OR FALSIFICATION</u>**

a) The Buyer may reduce or suspend advance, partial or progress
payments to the Seller under this Purchase Order upon a written determination by Buyer that substantial evidence exists that the Seller's
request for advance, partial, progress, or milestone (performance based payments) payments is based on fraud, misrepresentation, or falsification.
This clause is in addition to any rights or remedies available to the Buyer by law or in equity.

b) Actions taken by the Buyer under this clause shall not constitute
an excusable delay under any terms of this Purchase Order or otherwise relieve the Seller of its obligations to perform under this Purchase
Order.

**31. <u>CUSTOMER COMMUNICATION</u>**

a) Buyer shall be solely responsible for all liaison and coordination
with Buyer's Customer, any higher tier contractor(s), or the U.S. Government, as it affects any applicable prime contract, for
this Purchase Order, and any related order. Except as required by law, Seller shall not communicate with Buyer's Customer, any
higher tier contractor(s), or the U.S. Government, with respect to the
applicable prime contract, this Order, and/or any related order without prior written approval from Buyer's Procurement Representative.
No separate approval is needed for meetings that Buyer will also attend. Seller shall promptly notify Buyer's Procurement Representative
of any communications initiated by Buyer's Customer, any higher tier contractor(s), or the U.S. Government, that affects the applicable
prime contract, this Order, and/or any related order.

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**<u>NAVAL NUCLEAR PROPULSION INFORMATION (NNPI)</u>**

<u>Clauses 32 and 33 only apply if the Purchase Order is for a part or service which involves NNPI. If Seller has any questions as to whether these clauses apply contact Buyer for clarification.</u>

**32. <u>NNPI SECURITY CONTROLS AND PROTECTIONS</u>.** (Definitions applicable to this clause are provided in OPNAVINST N9210.3.)

a) Seller will be required to execute an additional security
agreement to execute NNPI work done under this Purchase Order, and shall invoke the requirements of that agreement and herein, as appropriate,
in all subcontracts which involve access to NNPI.

b) Naval Nuclear Propulsion Information is defined as that information
and/or hardware concerning the design, arrangement, development, manufacturing, testing, operation, administration, training, maintenance,
and repair of the propulsion plants of Naval Nuclear Powered Ships including the associated shipboard and shore-based nuclear support
facilities.

c) Seller shall develop and implement written policies and procedures
and other safeguards for the safeguarding from actual, potential or inadvertent release by the Seller, or any subcontractor, of any Naval
Nuclear Propulsion Information in any form, classified or unclassified. Such safeguards shall ensure that only Governmental, Buyer and
Seller parties, including subcontractors, that have an established need-to-know, have access in order to perform Work under this Purchase
Order, and then only under conditions which assure that the information is properly protected. Access by foreign nationals or immigrant
aliens is not permitted.  ***A foreign national or immigrant alien is defined as a person not a United States citizen or a United States National. United States citizens representing a foreign government, foreign private interest or other foreign nationals, are considered to be foreign nationals for industrial security purposes and the purpose of this restriction*** . In addition, any and all issue
or release of such information beyond such necessary parties, whether or not ordered through an administrative or judicial tribunal,
shall be brought to the attention of the Buyer's Customer, Customer's Contracting Officer for Security via Buyer.

d) The Buyer's Customer Contracting Officer for Security shall
be immediately notified by Seller via Buyer of any litigation, subpoenas, or requests which either seek or may result in the release
of Naval Nuclear Propulsion Information.

e) In the event that a court or administrative order makes immediate
review by the Customer Contracting Officer for Security impractical, the Seller agrees to take all necessary steps to notify the court
or administrative body of the Navy's interest in controlling the release of such information through review and concurrence in any release.

f) The Buyer, Buyer's Customer and Government Officials
reserve the right to audit Seller's facilities for compliance with the above restrictions.

g) Exceptions to these requirements may only be obtained with
prior approval from the Commander, Naval Sea Systems Command (Contact SEA 00P3). Seller shall make its request for any exceptions via
Buyer.

**33. <u>TRANSMISSION ABROAD OF EQUIPMENT OR TECHNICAL DATA RELATING TO THE NUCLEAR PROPULSION OF NAVAL SHIPS</u>**

a) The supplies specified to be delivered under this Purchase
Order may relate to the nuclear propulsion of naval ships.

b) Equipment and technical data defined as NNPI under OPNAVINST
N9210.3 shall not be disclosed to foreign nationals.

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c) For other than equipment or technical defined as NNPI in
paragraph (b) above, except with the prior written consent of the Buyer and the Buyer's Customer Contracting Officer (or his designated
representative), the Seller shall not, at any time during or after the performance of this Purchase Order, transmit or authorize the
transmittal of, any technical data or equipment as defined in paragraph (d) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Outside the United States; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Irrespective of location,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To any foreign national, not working on this Purchase Order
or any subcontract hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. To any foreign organization (including foreign subsidiaries
and affiliates of the SELLER); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. To any foreign government; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. To any international organization.

d) As used in this requirement, the following terms shall have
the following definitions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. "United States" means the States, the District
of Columbia, Puerto Rico, American Samoa, the Virgin Islands, Guam, and any areas subject to the complete sovereignty of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. "Equipment" means all supplies of the kind specified
to be delivered under this Purchase Order, all component parts thereof, and all models of such supplies and component parts; but "equipment"
does not include standard commercial supplies and component parts, and models thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. "Technical Data" means all professional, scientific,
or technical information and data produced or prepared for the performance of this Purchase Order, or on or for the operation, maintenance,
evaluation, or testing of any contract item, whether or not the information and data were specified to be delivered under this Purchase
Order including, without limitation, all writings, sound recordings, pictorial reproductions, and drawings or other graphical representations;
but "technical data" does not include such information and data on standard commercial supplies and component parts to the
extent that the information and data do not relate to the use, operation, maintenance, evaluation and testing of such supplies and component
parts in or in connection with any item, or component parts thereof, specified to be delivered under this Purchase Order.

e)  **<u>Flow Down Requirement:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Seller agrees to insert in all subcontracts under Purchase
Order provisions which shall conform substantially to the language of this requirement, including this paragraph (e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Notwithstanding any other provisions of this requirement,
this requirement shall not apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Where the transmittal or authorization for the transmittal
of equipment or technical data is to be made pursuant to a contract or agreement to which the United States is a party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Where the transmittal is to be of equipment or technical
data which the Buyer's Customer Contracting Officer, or designated representative, has declared in writing to be thereafter exempt
from this requirement.

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**[Statement of Work]**

**ATTACHMENT NO. 2**

**FAR/DFARS CLAUSES/PROVISIONS INCORPORATED BY REFERENCE**

**INCORPORATION OF APPLICABLE CLAUSES, PROVISIONS, AND OTHER REQUIREMENTS FOR COMMERCIAL SUBCONTRACTS**

**EB – VERSION 01**

&nbsp;&nbsp;&nbsp;&nbsp;a. The Federal Acquisition Regulation (FAR) and Defense Federal
Acquisition Regulation Supplement (DFARS) clauses cited below are incorporated by reference as if set forth in full text, and are applicable,
including any notes or other language following the clause citation, to this subcontract. The full text of all clauses incorporated by
reference is available at http://www.acquisition.gov/. If so identified, this Order is a "rated order" certified for national
defense use and Seller shall follow all the requirements of the Defense Priorities and Allocation System (DPAS) Regulation (15 C.F.R.
Part 700).

&nbsp;&nbsp;&nbsp;&nbsp;b. Unless the text in these clauses clearly reserves rights
in the Government only, in whole or in part, or as otherwise noted, the terms:

i "Purchase Order" shall be substituted for "Contract";

ii "Purchaser" or "Buyer" for "Government" or "Contracting Officer" or equivalent phrases;

iii "Seller" for "Contractor"; and

iv "Seller's lower-tier Seller" for "Subcontractor" when it can so reasonably be interpreted and it is not obvious that the words refer to Buyer's prime contract, the Government or Contracting Officer, the Buyer, or the Seller itself.

&nbsp;&nbsp;&nbsp;&nbsp;c. Flow Down Requirement - Seller agrees to flow down the FAR
and DFARS clauses as well as those clauses and provisions contained in this document to its lower-tier Sellers and to also require further
flow down, where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;d. BlueForge identification of applicable clause thresholds
and further flow down requirements is informational only and is not to be construed as determinative. Seller remains responsible for
determining and complying with all clause flow down requirements.

&nbsp;&nbsp;&nbsp;&nbsp;e. When the materials or products furnished are for use in connection
with a U.S. Government contract or subcontract, in addition to BlueForge's General Terms & Conditions and Special Provisions,
the following clauses shall apply, as required by the terms of the prime contract, or by operation of law or regulation. Otherwise, BlueForge's
General Terms and Conditions shall govern in the event of a conflict between these FAR and DFARS clauses and BlueForge's clauses.

&nbsp;&nbsp;&nbsp;&nbsp;f. The following clauses set forth in the FAR and DFARS in effect
as of the date of the prime contract are incorporated herein by reference with the same force and effect as if they were in full text.

&nbsp;&nbsp;&nbsp;&nbsp;g. Clauses in this document may not be applicable to specific
orders due to the type of Purchase Order to be issued, dollar thresholds under requirements of the FAR, DFARS or Public Law or Mandatory
Flow Down requirements of a particular prime contract. Clauses that are not applicable are deemed self-deleting, shall not be removed
from this document, and will be considered by all parties to be without force and effect. It is the Seller's obligation to contact
BlueForge regarding any confusion, ambiguity, or questions the Seller may have regarding applicability of the following clauses.

**As required by FAR 52.244-6 (Aug 2019) and DFARS 252.244-7000 (Jun 2013) identified below, the following apply:**

&nbsp;&nbsp;&nbsp;&nbsp;a. **To the maximum extent practicable, Seller shall incorporate, and require its subcontractors at all tiers to incorporate, commercial items or non- developmental items as components of items to be supplied under this purchase order; and** 

&nbsp;&nbsp;&nbsp;&nbsp;b. **The following Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) mandatory flow down clauses are incorporated by reference into this purchase order and the terms and conditions applicable thereto with the full force and effect as if invoked in full text.** 

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| | | | |
|:---|:---|:---|:---|
| **DFARS/FAR<br> Clause<br> Reference<br> Number** | **Applicable<br> Threshold<br> (S.A.T. =** <br> **Simplified<br> Acquisition<br> Threshold in<br> FAR Part** <br> **2.101)** | **DFARS/FAR Clause Title** | **Applicable Revision** |
| 52.203-13 | >$5,500,000 & Performance period of >120 days | **Contractor Code of Business Ethics and Conduct (41 U.S.C. 3509)** | Jun-2020 |
| 52.203-15 | All | **Whistleblower Protections Under the American Recovery and Reinvestment Act of 2009** (Section 1553 of Pub. L. 111-5), if this subcontract is funded under the Recovery Act. | Jun-10 |
| 52.203-19 | All | **Prohibition on Requiring Certain Internal Confidentiality Agreements or Statements** | Jan-17 |
| 52.204-10 | All | **Reporting Executive Compensation and First Tier Subcontract Awards** | Oct-18 |
| 52.204-13 | All | **System for Award Management Maintenance** | Oct-18 |
| 52.204-21 | All | **Basic Safeguarding of Covered Contractor Information Systems** | Jun-16 |
| 52.204-23 | All | **Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities** | Jul-18 |
| 52.204-25 | All | **Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.** | Aug-20 |

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|:---|:---|:---|
| 52.219-8All | **Utilization of Small Business Concerns** (15 USC 637(d)(2) and (3)) Applies if this purchase order offers further subcontracting opportunities. If this purchase order (except subcontracts to small business concern) exceeds $700,000 ($1,500,000 for construction of any public facility), the Seller must include 52.219-8 in its lower-tier subcontracts that offer subcontracting opportunities. | Oct-18 |
| 52.222-21 All | **Prohibition of Segregated Facilities** | Apr-15 |
| 52.222-26 All | **Equal Opportunity (E.O. 11246) (**See note 1.) | Sep-16 |
| 52.222-35 All | **Equal Opportunity for Veterans** (38 U.S.C. 4212(a)) (See Note 1.) | Jun-20 |
| 52.222-36 All | **Equal Opportunity for Workers with Disabilities** (29 U.S.C. 793) (See Note 1.) | Jun-20 |
| 52.222-37 All | **Employment Reports on Veterans** (38 U.S.C. 4212) | Feb-16 |
| 52.222-40 All | **Notification of Employee Rights Under the National Labor Relations Act (E.O. 13496)** If flow down is required in accordance with paragraph (f) of FAR clause 52.222-40. | Dec-10 |
| 52.222-50 All | **Combating Trafficking in Persons** (22 U.S.C. chapter 78 and E.O. 13627). (B) Alternate I of 52.222-50 (22 U.S.C. chapter 78 and E.O. 13627). | Jan-19 |
| 52.222-55 All | **Establishing Minimum Wage for Contractors (**E.O. 13658) | Dec-15 |
| 52.222-62 All | **Paid Sick Leave Under Executive Order 13706** | Jan-17 |
| 52.224-3 All | **Privacy Training** | Jan-17 |
| 52.225-26 All | **Contractors Performing Private Security Functions Outside the United States** (Section 862, as amended, of the National Defense Authorization Act for Fiscal Year 2008; 10 U.S.C. 2302 Note). | Oct-16 |
| 52.232-40 All | **Providing Accelerated Payments to Small Business Subcontractors** If flow down is required in accordance with paragraph (c) of FAR clause 52.232-40. | Dec-13 |
| 52.247-64 All | **Preference for Privately Owned U.S. –Flag Commercial Vessels** (46 U.S.C. App 1241 and 10 U.S.C. 2631) Flow down required in accordance with paragraph (d) of FAR clause 52.247-64). | Feb-06 |
| 252.244-7000 All | **Subcontracts for Commercial Items and Commercial Component (DoD Contracts)** (In accordance with the requirements of DFARS 252.244-7000 and the Buyer's prime contract, the following DFARS clauses also apply.) | Jun-13 |
| 252.203-7000 All | **Requirements Relating to the Compensation of Former DoD Officials** | Sep-11 |
| 252.203-7003 All | **Agency Office of the Inspector General** | Dec-12 |
| 252.204-7004 All | **Antiterrorism Awareness Training for Contracts** | Feb-19 |
| 252.204-7009 All | **Limitations on the Use or Disclosure of Third-Party Contractor Reported Cyber Incident Information** | Oct-16 |
| 252.204-7012 All | **Safeguarding Covered Defense Information and Cyber Incident Reporting herein invoke NIST SP 800-171 Revision 1 (December 2016), for references to National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171, "Protecting Controlled Unclassified Information in Nonfederal Information Systems and Organizations."** | Oct-16 |
| 252.204-7015 All | **Notice of Authorized Disclosure of Information for Litigation Support** | May-16 |
| 252.204-7020 | **NIST SP 800-171 DoD Assessment Requirements** | Nov-20 |
| 252.211-7003 All | **Item Identification and Valuation** Applies with some exceptions. Contact BlueForge to confirm applicability. | Jun-13 |
| 252.211-7007 All | **Reporting of Government- Furnished Property** | Aug-12 |
| 252.223-7008 All | **Prohibition of Hexavalent Chromium** | June-13 |
| 252.225-7001 All | **Buy American and Balance of Payment Program - Basic** (All Purchase Order Line Items to be delivered must satisfy the requirements of DFARS 252.225- 7001. Any item delivered or to be delivered that does not meet the requirements shall be promptly identified to the Buyer in writing for a determination of acceptability of the item(s).) | Dec-17 |
| 252.225-7002 All | **Qualifying Country Sources as Subcontractors** | Dec-17 |
| 252.225-7007 All | **Prohibition on Acquisition of Certain Items from Communist Chinese Military Companies** | Dec-18 |
| 252.225-7009 All | **Restriction on Acquisition of Certain Articles Containing Specialty Metals** (10 U.S.C. 2553b) (Applies in its entirety, less paragraph (d), in all subcontracts, at any tier, for articles containing "specialty metals".) | Oct-14 |

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|:---|:---|:---|:---|
| 252.225-7012 | All | **Preference for Certain Domestic Commodities** | Dec-17 |
| 252.225-7015 | All | **Restriction on Acquisition of Hand or Measuring Tools** | Jun-05 |
| 252.225-7016 | All | **Restriction on Acquisition of Ball and Roller Bearings** | Jun-11 |
| 252.225-7038 | All | **Restriction on Acquisition of Air Circuit Breakers** | Dec-18 |
| 252.226-7001 | >$500,000 | **Utilization of Indian Organization, Indian-Owned Economic Enterprises, and Native Hawaiian Small Business Concerns** | Apr-19 |
| 252.227-7013 & Alt II | All | **Rights in Technical Data-Non Commercial Items** (Feb 2014) and Alt II (Mar 2011) | Feb-14 & Alt II Mar-11 |
| 252.227-7015 And Alt I | All | **Technical Data – Commercial Items** (Feb 2014) and Alt I (Dec 2011) | Feb-14 & Alt I Dec-11 |
| 252.227-7037 | All | **Validation of Restrictive Markings on Technical Data** | Sep-16 |
| 252.243-7002 | > S.A.T. | **Request for Equitable Adjustment** (Applies if the REA exceeds the Simplified Acquisition Threshold (SAT) as defined at FAR 2.101. | Dec-12 |
| 252.246.7003 | All | **Notification of Potential Safety Issues**<br> **i.** This clause applies to this subcontract and to all lower-tier subcontracts at any tier meeting the requirements described in this clause. It applies in subcontracts for – (i) Parts identified as critical safety items; (ii) Systems and subsystems, assemblies, and subassemblies integral to a system; or (iii) Repair, maintenance, logistics support, or overhaul services for systems and subsystems, assemblies, subassemblies, and parts integral to a system.<br> **ii.** Buyer will identify parts identified as "critical safety items", if any, upon Seller's request.<br> **iii.** Seller is responsible for providing the notifications required by this clause to BlueForge in writing for itself and for its lower-tier subcontractors at any tier. | Jun-13 |
| 252.246-7008 | All | **Sources of Electronic Parts** If the Seller documents to BlueForge that electronic parts provided under this purchase order are new or previously unused, then the actions listed in DFARS 252.246-7008 (Oct 2016) paragraph (b)(3)(ii) will not apply. | May-18 |
| 252.247-7023 | All | **Transportation of Supplies by Sea** (10 U.S.C. 2631)<br> (a) This clause, including paragraph (h), applies if this purchase order exceeds the simplified acquisition threshold specified in FAR Part 2; or<br> (b) This clause, paragraphs (a) through (e) and paragraph (h), apply if this purchase order is at or below the simplified acquisition threshold specified in FAR Part 2. | Feb-19 |
| In addition to the clauses required by FAR 52.244-6 and DFARS 252.244-700 identified above, the following clauses also apply: | In addition to the clauses required by FAR 52.244-6 and DFARS 252.244-700 identified above, the following clauses also apply: | In addition to the clauses required by FAR 52.244-6 and DFARS 252.244-700 identified above, the following clauses also apply: | In addition to the clauses required by FAR 52.244-6 and DFARS 252.244-700 identified above, the following clauses also apply: |
| 52.204-9 | All | **Personal Identity Verification of Contractor Personnel** (This clause applies to this subcontract when the subcontractor ("Contractor" as used below refers to the Seller/subcontractor) is required to have routine access to a Federally-controlled facility and/or routine access to a Federally-controlled information system. Further flow down may be required.) | Jan-11 |
| **252.225-7048** | All | **Export-Controlled Items** | Jun-13 |

---

Note 1: Clauses above referring to this Note 1 do not apply for that portion of work under this Purchase Order or any subcontract hereunder that is performed outside the United States by employees who were not recruited within the United States.

In addition to the requirements specified above, the following additional clauses also apply. Further flow down may be required:

1. FAR 52.203-11, CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS
TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (SEPT 2007) (MODIFIED)

(Applies if this order exceeds or is expected to exceed $150,000.)

If this order exceeds or is expected to exceed $100,000, Seller ("offeror") makes the following certification and disclosure and agrees to certify and disclose accordingly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***Definitions.*** As used in this provision—"Lobbying contact" has the meaning provided at <u>2 U.S.C. 1602(8).</u> The terms "agency," "influencing or attempting to influence," "officer or employee of an agency," "person," "reasonable compensation," and "regularly employed" are defined in the FAR clause of this solicitation entitled "Limitation on Payments to Influence Certain Federal Transactions" <u>(52.203-12).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***Prohibition*.** The prohibition and exceptions contained in the FAR clause of this solicitation entitled "Limitation on Payments to Influence Certain Federal Transactions" (<u>52.203-12</u>) are hereby incorporated by reference in this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***Certification*.** The offeror or Seller, <u>by signing its offer or accepting this Purchase Order</u>, hereby certifies to the best of its knowledge and belief that no Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on its behalf in connection with this solicitation; the awarding of this purchase order or Buyer's prime contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***Disclosure*.** If any registrants under the Lobbying Disclosure Act of 1995 have made a lobbying contact on behalf of the offeror with respect to this contract, the offeror shall complete and submit, with its offer, OMB Standard Form LLL, Disclosure of Lobbying Activities, to the Buyer's Contracting Officer via Buyer, to provide the name of the registrants. The offeror need not report regularly employed officers or employees of the offeror to whom payments of reasonable compensation were made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***Penalty*.** Submission of this certification and disclosure is a prerequisite for making or entering into this contract imposed by <u>31 U.S.C. 1352.</u> Any person who makes an expenditure prohibited under this provision or who fails to file or amend the disclosure required to be filed or amended by this provision, shall be subject to a civil penalty of not less than $10,000, and not more than $100,000, for each such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Seller shall include the language of this certification in all subcontract awards at any tier and require that all recipients of subcontract awards in excess of $100,000 shall certify and disclose accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;2. FAR 52.203-12, LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (OCT 2010)

(Applies if this order exceeds $150,000. When this clause applies, FAR 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, also applies and Seller shall certify and disclose accordingly.)

Incorporated into this order by reference.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>FRAUD OR FALSIFICATION</u> 

*Seller shall include all provisions of the following text including this sentence in all lower-tier subcontracts under this Purchase Order*.

&nbsp;&nbsp;&nbsp;&nbsp;**a.** This Purchase Order is a subcontract or lower-tier subcontract
under a Government prime contract. As such, activities thereunder are within the jurisdiction of the U.S. Government. **Any knowing and willful act to falsify, conceal, or alter a material fact, or any false, fraudulent or fictitious statement or representation in connection with the performance of work under this purchase order may be punishable in accordance with applicable Federal statutes.** 

&nbsp;&nbsp;&nbsp;&nbsp;b. Seller shall include the following statement preprinted on
each Certificate of Conformance initiated by the Seller and provided to the Buyer in connection with this purchase order:

**"NOTE: The recording of false, fictitious or fraudulent statements or entries on this document may be punishable as a felony under Federal Statute."**

Federal Law (18 USC 1001) provides, in part, as follows:

"Except as otherwise provided in this section, whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully –

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) falsifies, conceals or covers up by any trick, scheme, or
device, a material fact;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) makes any materially false, fictitious or fraudulent statements
or representations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) makes or uses any false writing or document knowing the same
to contain any materially false, fictitious or fraudulent statement or entry, shall be fined under this title or imprisoned not more
than 5 years, or if the offense involves international or domestic terrorism (as defined in section 2331), imprisoned not more than 8
years, or both. …"

Seller agrees that all employees or other persons engaged in or who will be engaged in the performance of work under this Purchase Order, will be, if they have not been previously, informed in writing of the above language and that there is a risk of Federal criminal penalties associated with any knowing and willful falsification, concealment, or misrepresentation in connection with work performed under Government contracts and subcontracts such as this Purchase Order.

&nbsp;&nbsp;&nbsp;&nbsp;c. Seller will make employees aware of the above prior to them
commencing work under this purchase order. Any inability or unwillingness of a lower-tier supplier to comply with this provision should
be documented in writing and submitted to the Purchaser.

**4.**  **<u>EQUIPMENT CONTAINING COMPUTERS AND/OR COMPUTER SOFTWARE.</u>** The Seller shall be responsible for providing Buyer with a Software Development Plan for all equipment containing computer hardware,
computer software, and/or computer off the shelf software that will be utilized for the development, control, or modification of deliverable
products.

&nbsp;&nbsp;&nbsp;&nbsp;a. The Seller's Software Development Plan shall contain
a written statement of work as part of the proposal in response to the request for quotation.

&nbsp;&nbsp;&nbsp;&nbsp;b. The Seller's Software Development Plan must be approved
by the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;c. After award the Seller shall submit the Software Statement
of Work on a Vendor Procedure Approval Request Form.

&nbsp;&nbsp;&nbsp;&nbsp;d. Failure to submit the correct forms and receive approval
for the Software Development Plan may result in delays of payment for deliverables.

**5.**  **<u>Duty-Free Entry –Basic (Nov 2014) *When a shipment is eligible*</u>** *for duty-free entry under this clause, Seller is to request in writing duty-free entry eligibility via Buyer and to request that Buyer provide the information required by the clause to allow Seller to comply. Buyer will, upon approval to disclose, provide Seller with the information required. Special marking, labeling, and packaging apply. Further flow down may be required.* 

 

*In addition, when this clause applies, Seller is to include the Buyer's prime contract number on all shipping documents submitted to U.S. Customs for which duty-free entry is being claimed pursuant to this clause.*

 

Seller is to coordinate all shipments under this order with the Buyer. If a prospective import into the United States is eligible for duty-free entry (DFE) due to its classification in the Harmonized Tariff Schedule of the U.S. (HTSUS) or due to a Trade Agreement, Seller is to take necessary actions to allow Buyer to obtain DFE. If not, Seller is to refer DFARS 252.225-7013, Duty-Free Entry, and is to determine with the Buyer whether the prospective import into the U.S. is eligible for DFE under the DFARS clause(s) and take necessary actions to allow Buyer to obtain DFE. **<u>Special marking, labeling, and packaging requirements apply.</u>**

**ATTACHMENT NO. 3**

**[**Details of Insurance Requirements]**

**<u>Supplier Development Fund Addendum for Equipment and Facility Related Investments</u>**

WHEREAS, the funds have been authorized for submarine industrial base expansion (the "**Funds**");

WHEREAS, the Navy has provided the Funds to Electric Boat Corporation (to disseminate to the industrial base);

WHEREAS, the Funds are to be used to expand the capabilities of the second and third tier contractors (individually, the "Seller") of Electric Boat Corporation and Huntington Ingalls Incorporated (individually, the "**Buyer**") in support of the of Buyer's Government Contracts;

WHEREAS, Electric Boat Corporation has selected BlueForge Alliance to manage, administer and disseminate a select portion of those Funds;

WHEREAS, the term "**SDF Collateral**" as used herein shall mean the equipment, machinery, fixtures, raw materials, inventory, work in process, finished goods, drawings, designs, models, tools, dies, molds, now or hereafter acquired with the Funds, and any increases, additions, accessions, substitutions, proceeds (including insurance proceeds), contracts, contract rights and shop orders related thereto, and related services and technology connected to the Funds for the manufacturing capacity improvements intended to support Submarine Industrial Base expansion;

WHEREAS, the SDF Collateral as used herein shall be the asset of the Seller subject to the conditions herein and as specifically detailed in a purchase order;

THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, Seller agrees as follows:

A. Use of Funds

&nbsp;&nbsp;&nbsp;&nbsp;1. Seller agrees that it shall complete/procure/secure/perform awards to secure SDF Collateral for the benefit
of the Buyer and its Customer. Seller understands and agrees that the Funds provided are solely for the purpose of procuring the SDF Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;2. Seller shall ensure that all SDF Collateral procured with the Funds are kept in good working order and are maintained in accordance
with all required maintenance and care instructions. Seller understands and agrees that BlueForge Alliance, Buyer or Buyer's Customer
will be entitled to records of SDF Collateral maintenance upon request. Seller is responsible for all costs associated with SDF Collateral
maintenance and any required repair or refurbishment. Additionally, Seller shall not charge profit on any of the SDF Collateral procured
with the Funds. Seller agrees that it shall not mark up or inflate the costs of procuring the SDF Collateral by applying its own profit.

&nbsp;&nbsp;&nbsp;&nbsp;3. Seller agrees and understands that BlueForge Alliance may audit all proposal and purchase order documentation associated with this
Addendum and the Funds, and that the same documentation is subject to audit by the Buyer or Buyer's Customer.

&nbsp;&nbsp;&nbsp;&nbsp;4. Seller shall use consistent accounting practices to account for Funds and BlueForge Alliance shall have the right to audit accounting
records regarding expenditure of the Funds at any time and Seller agrees to provide the same access to Buyer or Buyer's Navy Customer.

&nbsp;&nbsp;&nbsp;&nbsp;5. Seller shall provide invoices from their suppliers for all materials, services, tooling, equipment or other items procured in furtherance
of procurement of the SDF Collateral. Seller agrees and understands that, upon request, BlueForge Alliance may provide the same documentation
to the Buyer or Buyer's Customer.

&nbsp;&nbsp;&nbsp;&nbsp;6. BlueForge Alliance may inspect all SDF Collateral at reasonable times and places, and such access shall be further granted to the Buyer or Buyer's
Customer.

B. Assurance of Capacity and Supply

&nbsp;&nbsp;&nbsp;&nbsp;1. In exchange for receiving the Funds for the SDF Collateral,
Seller will produce supplies, at a reasonable price and as required in the original award or as such award as modified in such quantity,
quality, specifications, and schedule for the Buyer, Buyer's Suppliers, and Buyer's Customer.

&nbsp;&nbsp;&nbsp;&nbsp;2. Seller will have an obligation to bid on all Buyer's,
Buyer's Supplier's, and the United States Government's request(s) for purchase(s) for which Seller would utilize the
SDF Collateral for a period of ten (10) years following operational status of SDF Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;3. Seller will prioritize all Buyer's Orders over all other
work that may be performed on or with the SDF Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;4. Notwithstanding the foregoing, nothing herein guarantees
that the Seller will receive a contract for future work with Buyer, nor any requests to bid.

C. Reporting Requirements

&nbsp;&nbsp;&nbsp;&nbsp;1. Seller shall report the following information to BlueForge
Alliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Initial project plan including business case, shortfall to
be addressed Seller's capacity, anticipated cost savings, and Return on Investment reporting criteria associated with the SDF Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Regular reports on progress of SDF Collateral, including
all invoices for materials, services, and tooling/equipment in support of the SDF Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Report on completion or operational status of the SDF Collateral;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Any other information BlueForge Alliance requires to support
justification for the SDF Collateral provided to the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;2. Following operational status of the SDF Collateral, Seller
shall regularly report on the status of the realized cost savings and return on investment benefits identified to BlueForge Alliance
for the benefit of the Buyer and its Customer. The Seller further agrees and understands that requests for this information may come
directly from the Buyer or Buyer's Customer, and that such request shall be honored at no additional cost to the Buyer.

D. Pass-Through

&nbsp;&nbsp;&nbsp;&nbsp;1. In the event Seller breaches any of its obligations under
this Addendum or any of its obligations under a future purchase order with the Buyer or Buyer's Suppliers, or if Seller becomes
insolvent or suffers a material, adverse change in financial condition Seller agrees that BlueForge Alliance will pass through the following
remedies to the Buyer and Buyer shall have the right to exercise these remedies at its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Require Seller to turn over SDF Collateral to Buyer (or directly
to its Navy Customer, as may be required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. At no additional cost to the Buyer, allow Buyer, Buyer's
Representative(s) (e.g. Buyer subcontractors), or Buyer's Navy Customer use of the SDF Collateral at/in Seller's facilities
to complete scheduled deliveries; or,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Any combination of the above.

E. Liens

&nbsp;&nbsp;&nbsp;&nbsp;1. Seller shall ensure that all SDF Collateral is free from prior
liens, and shall take all necessary action to grant BlueForge Alliance, for itself, Buyer, and Buyer's Navy Customer the ability
to exercise the remedies contained in this Addendum.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Seller hereby irrevocably authorizes BlueForge Alliance
at any time and from time to time to file in any relevant jurisdiction any financing statements and amendments thereto that contain the
information required by Article 9 of the UCC of each applicable jurisdiction for the filing of any financing statement or amendment relating
to the SDF Collateral for the purpose of perfecting, confirming, continuing, or enforcing the security interest granted by the Seller
hereunder. The Seller agrees to provide all information required by BlueForge Alliance pursuant to this request.

&nbsp;&nbsp;&nbsp;&nbsp;3. At the time the SDF Collateral becomes subject to the lien

acknowledge that BlueForge Alliance and seller's financial institution have entered into a separate intercreditor agreement setting
forth the respective parties rights and obligations in the SDF Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;4. Notwithstanding the foregoing, BlueForge Alliance, may secure
the discharge or release of any third party lien in which case Seller shall reimburse BlueForge Alliance for the costs of securing such
discharge or release (which cost shall include any reasonable expenses, including reasonable attorneys' fees, incurred in connection
therewith) by deducting such sum from any payments due or to become due to Seller. In the event such cost is in excess of the amount
of any such reimbursement by deductions, Seller shall pay the amount of such excess upon demand.

F. Prohibited Future Charges

&nbsp;&nbsp;&nbsp;&nbsp;1. Seller's overhead charges on this and any subsequent
purchase orders with the Buyer or Buyer's Customer will not include any costs associated with SDF Collateral procured by Seller
with the Funds. Additionally, costs associated with facility upgrades and additions will not be passed on to BlueForge Alliance, Buyer,
or Buyer's Customer. BlueForge Alliance may request all necessary records to enforce this provision, and the same such access shall
be granted to the Buyer, and Buyer's Customer.

G. Survival, Order of Precedence and Flow-Down

&nbsp;&nbsp;&nbsp;&nbsp;1. BlueForge Alliance may exercise the remedies available to
it in this Addendum or its purchase order with Seller ("Purchase Order") if Seller fails to perform any of its obligations.

&nbsp;&nbsp;&nbsp;&nbsp;2. In addition to any surviving clauses delineated in this addendum
Seller agrees and understands that to the extent that the benefit, guarantee, or other conditions contained herein, shall to the fullest
extent that is able, pass to the Buyer and Buyer's Customer.

&nbsp;&nbsp;&nbsp;&nbsp;3. This Addendum is entered into in addition to BlueForge Alliance's
standard terms and conditions. Notwithstanding anything to the contrary herein or in the Purchase Order, if any inconsistences are identified
or should arise between this Addendum and any of the Purchase Order documents, this Addendum shall take precedence.

&nbsp;&nbsp;&nbsp;&nbsp;4. Seller shall include the conditions this Addendum in all subcontracts
issued with the Funds in a manner which protects the interest of BlueForge Alliance, the Buyer and Buyer's Customer.

This Addendum is hereby agreed to and accepted by an authorized representative of the Seller.

---

| | |
|:---|:---|
| &nbsp;&nbsp;COMPANY NAME | &nbsp;&nbsp;Elmet Technologies LLC |
| &nbsp;&nbsp;SIGNATURE | &nbsp;&nbsp;/s/ Peter V. Anania |
| &nbsp;&nbsp;PRINTED NAME | &nbsp;&nbsp;Peter V. Anania |
| &nbsp;&nbsp;TITLE | &nbsp;&nbsp;President |
| &nbsp;&nbsp;DATE | &nbsp;&nbsp;8/7/2025 |

---

## Exhibit 10.40

**Exhibit 10.40** 

**THE ELMET GROUP CO. 2026 equity INCENTIVE PLAN<br> STOCK OPTION GRANT AGREEMENT** 

---

| | |
|:---|:---|
| **I.** | **<u>NOTICE OF OPTION GRANT</u>** |
|  | **Grantee Name:________________________** |
|  | **Address:_________________________________** |

---

The Elmet Group Co., a Delaware corporation (the "***Company***") hereby grants the undersigned Grantee (the "***Grantee***") a stock option (the "***Option***") to purchase shares of the Company's common stock, par value $0.01 per share (the "***Shares***"), subject to the terms and conditions of The Elmet Group Co. 2026 Equity Incentive Plan (the "***Plan***") and this Stock Option Grant Agreement (the "***Grant Agreement***"), as follows:

---

| | |
|:---|:---|
| **Grant Date:** | **_____________________________** |
| **Vesting Commencement Date:** | **_____________________________** |
| **Exercise Price per Share:** | **$____________________________** |
| **Total Number of Shares Granted:** | **_____________________________** |
| **Total Exercise Price:** | **US$__________________________** |
| **Type of Option:** | ☐ **Incentive Stock Option** |
|  | ☐ **Nonqualified Stock Option** |
| **Term/Expiration Date:** | **_____________________________** |
| **Vesting Schedule:** | **_____________________________** |

---

<u>Exercise Period</u>: To the extent vested, this Option shall be exercisable for three (3) months after the Grantee ceases to be a Service Provider, except this period shall be twelve (12) months if the Grantee ceases to be a Service Provider on account of Disability and this Option shall remain exercisable until the Option's Term/Expiration Date if the Grantee ceases to be a Service Provider on account of the Grantee's death. If the Grantee ceases to be a Service Provider, at any time before all of the Option has vested, the Grantee's unvested portion of the Option shall be automatically forfeited upon such cessation, and the Company shall not have any further obligations to the Grantee with respect to the Option or portion thereof that has been so forfeited under this Grant Agreement. Notwithstanding the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above, and if a Grantee's status as a Service Provider is terminated for Cause, the Grantee's Option (whether vested or unvested) shall terminate as of the date of the misconduct.

**II. <u>GRANT AGREEMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of Option</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Pursuant to the terms of the Plan, the Company hereby grants to the Grantee named in the Notice of Option Grant in Part I of this Grant Agreement, an Option to purchase the number of Shares set forth in the Notice of Option Grant, at the exercise price per Share set forth in the Notice of Option Grant (the "***Exercise Price***"). In the event of a conflict between the terms and conditions of the Plan and this Grant Agreement, the terms and conditions of the Plan shall prevail. Any capitalized terms not defined herein shall have the meaning set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If designated in the Notice of Option Grant as an Incentive Stock Option ("***ISO***"), this Option is intended to qualify as an "incentive stock option" as defined in Code Section 422. Nevertheless, to the extent that it exceeds the $100,000 rule of Code Section 422(d), this Option shall be treated as a Nonqualified Stock Option ("***NSO***"). Further, if for any reason this Option (or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as an NSO. In no event shall the Company or any affiliate or any of their respective employees or directors have any liability to the Grantee (or any other person) due to the failure of the Option to qualify for any reason as an ISO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Exercise of Stock Option</u>. This Option shall be exercisable during its term 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;(a) <u>Right to Exercise</u>. This Option shall be exercisable cumulatively according to the vesting schedule set forth in the Notice of Option Grant, but the Option may not be exercised for a fraction of a Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Method of Exercise</u>. This Option shall be exercisable by delivery of an exercise notice in the form attached as <u>Exhibit A</u> (the "***Exercise Notice***") or in a manner and pursuant to such procedures as the Administrator may determine, which shall state the election to exercise the Option (to the extent then vested), the number of Shares with respect to which the Option is being exercised (the "***Exercised Shares***"), and such other representations and agreements as may be required by the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares, together with any applicable withholding taxes. This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price, together with any applicable withholding 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;(c) <u>Compliance</u>. No Shares shall be issued pursuant to the exercise of the Option unless such issuance and such exercise comply with Applicable Law. Assuming such compliance, for income tax purposes, the Shares shall be considered transferred to the Grantee on the date on which the Option is exercised with respect to such Shares. The Shares shall be unregistered unless the Company voluntarily files a registration statement covering such Shares with the U.S. Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Method of Payment</u>. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Grantee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) delivery
 of Shares that the Grantee has owned for at least six months (valued at Fair Market Value
 on the date of exercise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by
 a broker-assisted cashless exercise in accordance with procedures approved by the Administrator,
 whereby payment of the Exercise Price may be satisfied, in whole or in part, with Shares
 subject to the Option by delivery of an irrevocable direction to a securities broker (on
 a form prescribed by the Administrator) to sell Shares and to deliver all or part of the
 sale proceeds to the Company in payment of the aggregate Exercise Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) for
 a NSO only and only if approved by the Administrator, as determined in its sole discretion,
 by delivery of a notice of "net exercise" to the Company, pursuant to which the
 Grantee shall receive the number of Shares underlying the Option so exercised reduced by
 the number of Shares equal to the aggregate Exercise Price of the Option divided by the Fair
 Market Value on the date of exercise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if
 approved by the Administrator, such other consideration and method of payment for the issuance
 of Shares to the extent permitted by Applicable Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 combination of the foregoing methods of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Restrictions on Exercise</u>. This Option may not be exercised if the issuance of such Shares upon such exercise or the method of payment of consideration for such Shares would constitute a violation of Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Nontransferability of Option</u>. This Option may not be transferred in any manner other than by will or by the laws of descent or distribution and may be exercised during the lifetime of the Grantee only by the Grantee. The terms of this Grant Agreement shall be binding upon the executors, administrators, heirs, successors, and assigns of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Term of Option</u>. This Option may be exercised only within the term set out in the Notice of Option Grant and may be exercised during such term only in accordance with the terms of this Grant Agreement and the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Tax Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Applicable Withholding Taxes</u>. The Grantee agrees to make appropriate arrangements with the Company (or the affiliate employing or retaining the Grantee) for the satisfaction of all applicable withholding taxes applicable to the Option exercise. The Grantee acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver the Shares if such applicable withholding taxes are not delivered at the time 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;(b) <u>Notice of Disqualifying Disposition of ISO Shares</u>. If the Option granted to the Grantee herein is an ISO, and if the Grantee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Grant Date, or (ii) the date one (1) year after the date of exercise, the Grantee shall immediately notify the Company in writing of such disposition.

&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>Section 409A</u>. The Option is intended to be exempt from Section 409A, and it shall be administered and interpreted in a manner that is consistent with such intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Entire Agreement; Governing Law</u>. This Grant Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may not be modified in a manner materially adverse to the Grantee's interest except by means of a writing signed by the Company and the Grantee. This Grant Agreement will be governed by and construed in accordance with the internal laws of the State of Delaware, without reference to any choice of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Notices</u>. Any notice to be given under this Grant Agreement to the Company must be in writing and addressed to the Company in care of the Company's Secretary at the Company's principal office or the Secretary's then-current email address. Any notice to be given under the terms of this Grant Agreement to the Grantee must be in writing and addressed to the Grantee at the Grantee's last known mailing address or email address in the Company's personnel files. By a notice given pursuant to this Section 9, either party may designate a different address for notices to be given to the 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 when delivered by a nationally recognized express shipping company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Compensation Recovery</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) The Grantee agrees that this Option and any Shares or other benefits or proceeds therefrom that the Grantee may receive hereunder shall be subject to forfeiture and/or repayment to the Company pursuant to any recovery, recoupment, "clawback" or similar policy of the Company, as may be amended from time to time, and with the provisions of any such Company policy deemed incorporated into this Grant Agreement without the Grantee's additional or separate consent.

&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) At any time during the three years following the date(s) on which this Option vests, the Company reserves the right to and, in the appropriate cases, will seek restitution of all or part of any Shares that have been issued pursuant to this Grant Agreement if the Grantee engaged in intentional misconduct that caused or partially caused the need for such a restatement, or the Grantee has been determined to have committed a material violation of law or Company policy or to have failed to properly manage or monitor the conduct of a Service Provider who has committed a material violation of law or Company policy whereby, in either case, such misconduct causes significant harm to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event the number of Shares issued pursuant to this Option is determined to have been based on materially inaccurate financial statements or other Company performance measures or on calculation errors (without any misconduct on the part of the Grantee) at any time during the three years following the date(s) on which this Option vests, the Company reserves the right to and, in appropriate cases, will seek restitution of the Shares received pursuant to this Grant to the extent that the number of Shares received exceeded the number of Shares that would have been exercised and issued had the inaccuracy or error not occurred.

&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) For purposes of the foregoing, the Grantee expressly and explicitly authorizes the Company to issue instructions on the Grantee's behalf, to any brokerage firm and/or third-party administrator engaged by the Company to hold any Shares and other amounts acquired pursuant to this Option to re-convey, transfer or otherwise return such Shares to the Company upon the Company's enforcement of its rights under this Section 10. By accepting this Grant, the Grantee agrees and acknowledges the Grantee is obligated to cooperate with and provide any and all assistance requested by the Company in its efforts to recover or recoup Shares or the proceeds received therefrom pursuant to this Grant, which may include, but shall not be limited to, executing, completing and submitting any documentation necessary to facilitate the Company's efforts to recover or recoup Shares or the proceeds received therefrom pursuant to this Grant. Additionally, by accepting this Grant, the Grantee acknowledges and agrees that no recovery or recoupment action pursuant to this Section 10, any Company clawback policy or otherwise will constitute an event that triggers or contributes to any right of the Grantee to resign for "good reason" or "constructive termination" (or similar term) under any agreement with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Section 10 is not intended to limit the Company's power to take such action as it deems necessary to remedy any misconduct, prevent its reoccurrence and, if appropriate, based on all relevant facts and circumstances, punish the wrongdoer in a manner it deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Grantee's Representations</u>. The Grantee represents to the Company that the Grantee has reviewed with the Grantee's own tax advisors the tax consequences of receiving this Grant Agreement. The Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Grantee further agrees and represents that no claim or entitlement to compensation or damages shall arise from forfeiture of the Option or recoupment of any Shares acquired under the Plan or proceeds therefrom resulting from (i) the application of a clawback policy described in Section 10 hereof or required by Applicable Laws, or (ii) the Grantee ceasing to be a Service Provider. Additionally, the Grantee acknowledges, understands and agrees that: (a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan, (b) the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive future Awards or benefits in lieu of future Awards, (c) the Grantee is voluntarily participating in the Plan, (d) the Award and any income recognized therefrom is not part of normal or expected compensation or salary for any purpose, including, without limitation, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, holiday pay, bonuses, long-service awards, leave-related payments, pension or retirement or welfare benefits or similar payments, and (e) the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty, and the value of such Shares acquired under the Plan may increase or decrease in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Data Privacy Consent</u>. In order to administer the Plan and this Grant Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the "***Relevant Companies***") may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Grant Agreement (the "***Relevant Information***"). By entering into this Grant Agreement, the Grantee (i) authorizes each Relevant Company to collect, process, register and transfer to each other Relevant Company all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction which a Relevant Company considers appropriate. The Grantee shall have access to, and the right to change, the Relevant Information. Relevant Information will only be used in accordance with Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Counterparts</u>. This Grant Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Grant Agreement may be by actual or facsimile signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Language</u>. The Grantee acknowledges that the Grantee is proficient in the English language, or has consulted with an advisor who is sufficiently proficient in English, to allow the Grantee to understand the terms and conditions of this Grant Agreement. If the Participant received this Grant Agreement or any other document related to this Award and/or the Plan translated into a language other than English, and if the translated version is different that the English version, the English version will control, unless otherwise required by Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>No Guarantee of Continued Service</u>. THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE OPTION PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE AFFILIATE EMPLOYING OR RETAINING GRANTEE) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION, OR ACQUIRING SHARES HEREUNDER. THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS GRANT AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER, AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH THE GRANTEE'S RIGHT OR THE RIGHT OF THE COMPANY (OR THE AFFILIATE EMPLOYING OR RETAINING GRANTEE) TO TERMINATE GRANTEE'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

The Grantee represents that the Grantee is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof. The Grantee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Agreement, and fully understands all provisions of the Option. The Grantee hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Administrator upon any questions arising under this Option or this Grant Agreement. The Grantee further agrees to notify the Company upon any change in the residence address indicated below.

 

*Signature Page Follows*

 

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| | |
|:---|:---|
| **GRANTEE** | **THE ELMET GROUP CO.** |
| Signature | By |
| Print Name | Print Name |
|  | Print Title |
| Residence Address |  |

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**<u>EXHIBIT A</u>**

**EXERCISE NOTICE**

The Elmet Group Co.<br> [Address]<br> Attention: Secretary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Exercise of Option</u>. Effective as of today, ________________, ____, the undersigned (the "***Grantee***") hereby elects to exercise the Grantee's stock option (the "***Option***") to purchase ________________ Shares of common stock (the "***Shares***") of The Elmet Group Co. (the "***Company***") under and pursuant to The Elmet Group Co. 2026 Equity Incentive Plan (the "***Plan***") and the Stock Option Grant Agreement, dated ______________, _____, by and between the Company and the Grantee (the "***Grant Agreement***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Delivery of Payment</u>. The Grantee herewith delivers to the Company the full purchase price of the Shares, as set forth in the Grant Agreement, and any and all withholding taxes due in connection with the exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Rights as Shareholder</u>. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Shares subject to the Option, notwithstanding the exercise of the Option. The Shares shall be issued to the Grantee as soon as practicable after the Option is exercised in accordance with the Grant Agreement. No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Tax Consultation</u>. The Grantee understands that the Grantee may suffer adverse tax consequences as a result of the Grantee's purchase or disposition of the Shares. The Grantee represents that the Grantee has consulted with any tax consultants the Grantee deems advisable in connection with the purchase or disposition of the Shares and that the Grantee is not relying on the Company for any tax advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Interpretation</u>. Any dispute regarding the interpretation of this Exercise Notice shall be submitted by the Grantee or by the Company forthwith to the Administrator, which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator shall be final and binding on all parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Governing Law; Severability</u>. This Exercise Notice will be governed by and construed in accordance with the internal laws of the State of Delaware, without reference to any choice of law principles. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Exercise Notice shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Entire Agreement</u>. The Grant Agreement and Plan are incorporated herein by reference. This Exercise Notice and the Grant Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof.

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| | |
|:---|:---|
| Submitted by: | Accepted by: |
| **GRANTEE** | **THE ELMET GROUP CO.** |
| Signature | By |
| Print Name | Print Name |
|  | Print Title |
| Address: |  |
|  | Date Received |

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## Exhibit 10.41

**Exhibit 10.41**

**THE ELMET GROUP CO. 2026 Equity Incentive Plan**

**RESTRICTED STOCK UNIT AWARD AGREEMENT**

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| | |
|:---|:---|
| **I.** | **<u>NOTICE OF RESTRICTED STOCK UNIT AWARD</u>** |
|  | **Participant Name:**________________________ |
|  | **Address:_________________________________** |

---

The Elmet Group Co., a Delaware corporation (the "***Company***") hereby grants the undersigned Participant (the "***Participant***") Restricted Stock Units ("***RSUs***") covering shares of the Company's common stock, par value $0.01 per share (the "***Shares***"), subject to the terms and conditions of The Elmet Group Co. 2026 Equity Incentive Plan (the "***Plan***") and this Award Agreement (the "***Award Agreement***"), as follows:

---

| |
|:---|
| **Grant Date:** |
| **Total Number of RSUs Granted:** |
| **Vesting Commencement Date:** |
| **Vesting Schedule:** |

---

**II. <u>AGREEMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of RSUs</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) The Company hereby grants to the Participant named in the Notice of Restricted Stock Unit Award (the "***Award***") in Part I of this Agreement the RSUs set forth in the Notice of Restricted Stock Unit Award as of the Grant Date set forth above. Each RSU represents the right to receive one Share, subject to the terms and conditions set forth in this Award Agreement and the Plan. The 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) The RSUs are subject to the terms and conditions set forth in this Award Agreement and the Plan, which is incorporated herein by reference. In the event of any inconsistency between the Plan and this Award Agreement, the terms of the Plan will control. Any capitalized terms not defined herein shall have the meaning set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The RSUs will at all times prior to settlement represent an unsecured Company obligation payable only from the Company's general assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Vesting</u>. The RSUs will vest according to the Vesting Schedule above, 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. Once vested, RSUs become "***Vested Units***" and shall be settled as provided in Section 3 below. When a Participant ceases to be a Service Provider, at any time before the RSUs have vested, the Participant's unvested RSUs shall be automatically forfeited upon such cessation, and the Company shall not have any further obligations to the Participant with respect to such RSUs that have been so forfeited under this Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Settlement of Vested 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) As soon as practicable and generally within sixty (60) days following the vesting date (and in any event no later than March 15 of the calendar year following the calendar year in which such vesting occurs if settlement of the RSUs cannot be settled within said sixty- (60) day period for reasons outside the reasonable control of the Company), the Company shall, (i) issue and deliver to the Participant the number of Shares equal to the number of Vested Units; and (ii) enter the Participant's name on the books of the Company as the shareholder of record with respect to the Shares delivered to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Company may delay any payment under this Award 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 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Rights as Shareholder; 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) The Participant shall not have any rights of a shareholder with respect to the Shares underlying the RSUs unless and until the RSUs vest and are settled by the issuance of such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon and following the settlement of the RSUs, the Participant shall be the record owner of the Shares underlying the RSUs unless and until such Shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting 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;(c) The Participant shall not be entitled to any dividend equivalents with respect to the RSUs to reflect any dividends payable on Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Restrictions</u>. Until such time as the RSUs are settled in accordance with Section 3 above, the RSUs or the rights relating thereto may not be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by the Participant, unless determined otherwise by the Administrator. Any attempt to assign, alienate, pledge, attach, sell, or otherwise transfer or encumber the RSUs or the rights relating thereto in violation of this Award Agreement or the Plan shall be wholly ineffective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Adjustments</u>. The Participant acknowledges that the RSUs and the Shares subject to the RSUs are subject to adjustment, modification, and termination in certain events as provided in this Award Agreement and the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Compliance</u>. No Shares shall be issued pursuant to the settlement of Vested Units unless such issuance complies with Applicable Law. The Participant acknowledges that the Plan and this Award Agreement are intended to conform to the extent necessary with Applicable Law and, to the extent Applicable Law permits, will be deemed amended as necessary to conform to Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Participant's Representations</u>. The Participant represents to the Company that the Participant has reviewed with the Participant's own tax advisors the tax consequences of receiving this Award Agreement. The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Participant further agrees and represents that no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs or recoupment of any Shares acquired under the Plan or proceeds therefrom resulting from (i) the application of a clawback policy described in Section 10 hereof or required by Applicable Laws, or (ii) the Participant ceasing to be a Service Provider. Additionally, the Participant acknowledges, understands and agrees that: (a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan, (b) the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive future Awards or benefits in lieu of future Awards, (c) the Participant is voluntarily participating in the Plan, (d) the Award and any income recognized therefrom is not part of normal or expected compensation or salary for any purpose, including, without limitation, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, holiday pay, bonuses, long-service awards, leave-related payments, pension or retirement or welfare benefits or similar payments, and (e) the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty, and the value of such Shares acquired under the Plan may increase or decrease in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Tax Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Participant acknowledges and agrees that the Participant is ultimately liable for all federal, state, local, and non-U.S. income taxes, social insurance, payroll tax, fringe benefits tax, and payments on account or other tax-related items related to the Participant's participation in the Plan (collectively, "***Tax Items***"). The Participant acknowledges that the Company (i) makes no representations or undertakings regarding the treatment of any Tax Item in connection with any aspect of the Award, and (ii) does not commit to and is under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Participant's liability for Tax Items or achieve a particular result. Furthermore, if the Participant becomes subject to Tax Items in more than one jurisdiction, the Participant acknowledges that the Company may be required to withhold or account for Tax Items in more than one jurisdiction. The Participant acknowledges and agrees that the Company may refuse to deliver the Shares if withholding amounts for Tax Items are not 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;(b) Prior to the applicable taxable or tax withholding event, as applicable, the Participant shall pay or make adequate arrangements satisfactory to the Company to satisfy all Tax Items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the RSUs are paid to the Participant in Shares and the Participant is not subject to the short-swing profit rules of Section 16(b) of the Exchange Act, the Participant authorizes the Company or its agents, at their discretion, to (A) withhold from the Participant's wages or other cash compensation paid to the Participant by the Company, (B) arrange for the sale of Shares to be issued upon the settlement of the Award (on the Participant's behalf and at the Participant's direction pursuant to this authorization or such other authorization the Participant may be required to provide to the Company or its designated broker in order for such sale to be effectuated) and withhold from the proceeds of such sale, (C) withhold in Shares otherwise issuable to the Participant pursuant to this Award, and/or (D) apply any other method of withholding determined by the Company and, to the extent required by Applicable Law or the Plan, approved 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the RSUs are paid to the Participant and the Participant is subject to the short-swing profit rules of Section 16(b) of the Exchange Act, the Participant may satisfy the liabilities with respect to the Tax Items by one of the following, as determined by the Participant or the Administrator: (A) cash or check, (B) in whole or in part by delivery of Shares, including Shares delivered by attestation and Shares retained from the Award creating the Tax Item liability, valued at their fair market value on the date of delivery, or (C) in whole or in part by the Company withholding Shares otherwise vesting or issuable under this 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) Depending on the withholding method, the Company may withhold or account for Tax Items by considering applicable statutory or other withholding rates, including minimum or maximum rates in the jurisdiction(s) applicable to the Participant. If liability for Tax Items is satisfied by withholding Shares, for tax purposes, the Participant will be deemed to have been issued the full number of Shares to which the Participant is entitled pursuant to this Award, notwithstanding that a number of Shares are withheld to satisfy Tax Item liabilities.

&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>Section 409A</u>. This Restricted Stock Unit Award is intended to be exempt from Section 409A, and it shall be administered and interpreted in a manner that is consistent with such intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Compensation Recovery</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) <u>Participant's Representations</u>. The Participant represents to the Company that the Participant has reviewed with the Participant's own tax advisors the tax consequences of receiving this Award Agreement. The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Participant further agrees and represents that no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs or recoupment of any Shares acquired under the Plan or proceeds therefrom resulting from (i) the application of a clawback policy described in Section 10 hereof or required by Applicable Laws, or (ii) the Participant ceasing to be a Service Provider. Additionally, the Participant acknowledges, understands and agrees that: (a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan, (b) the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive future Awards or benefits in lieu of future Awards, (c) the Participant is voluntarily participating in the Plan, (d) the Award and any income recognized therefrom is not part of normal or expected compensation or salary for any purpose, including, without limitation, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, holiday pay, bonuses, long-service awards, leave-related payments, pension or retirement or welfare benefits or similar payments, and (e) the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty, and the value of such Shares acquired under the Plan may increase or decrease in the future.

&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) At any time during the three years following the date on which Shares subject to this Award vest, the Company reserves the right to and, in the appropriate cases, will seek restitution of all or part of any Shares that have been issued or cash that has been paid pursuant to this Award Agreement if: (A) (i) the number of Shares or the amount of cash payment was calculated based, directly or indirectly, upon the achievement of financial results that were subsequently the subject of a restatement of all or a portion of the Company's financial statements, (ii) the Participant engaged in intentional misconduct that caused or partially caused the need for such a restatement, and (iii) the number of Shares or the amount of cash payment that would have been issued or paid to the Participant had the financial results been properly reported would have been lower than the number of Shares actually issued or the amount of cash actually paid, or (B) the Participant has been determined to have committed a material violation of law or Company policy or to have failed to properly manage or monitor the conduct of a Service Provider who has committed a material violation of law or Company policy whereby, in either case, such misconduct causes significant harm to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event the number of Shares issued or cash paid pursuant to this Award is determined to have been based on materially inaccurate financial statements or other Company performance measures or on calculation errors (without any misconduct on the part of the Participant), the Company reserves the right to and, in appropriate cases, will (i) seek restitution of the Shares or cash paid pursuant to this Award to the extent that the number of Shares issued or the amount paid exceeded the number of Shares that would have been issued or the amount that would have been paid had the inaccuracy or error not occurred, or (ii) issue additional Shares or make additional payment to the extent that the number of Shares issued or the amount paid was less than the correct 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;(d) For purposes of the foregoing, the Participant expressly and explicitly authorizes the Company to issue instructions on the Participant's behalf, to any brokerage firm and/or third-party administrator engaged by the Company to hold any Shares and other amounts acquired pursuant to this Award to re-convey, transfer or otherwise return such Shares and/or other amounts to the Company upon the Company's enforcement of its rights under this Section 10. By accepting this Award, the Participant agrees and acknowledges the Participant is obligated to cooperate with and provide any and all assistance requested by the Company in its efforts to recover or recoup Shares or the proceeds received therefrom pursuant to this Award, which may include, but shall not be limited to, executing, completing and submitting any documentation necessary to facilitate the Company's efforts to recover or recoup Shares or the proceeds received therefrom pursuant to this Award. Additionally, by accepting this Award, the Participant acknowledges and agrees that no recovery or recoupment action pursuant to this Section 10, any Company clawback policy or otherwise will constitute an event that triggers or contributes to any right of the Participant to resign for "good reason" or "constructive termination" (or similar term) under any agreement with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Section 10 is not intended to limit the Company's power to take such action as it deems necessary to remedy any misconduct, prevent its reoccurrence and, if appropriate, based on all relevant facts and circumstances, punish the wrongdoer in a manner it deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Data Privacy Consent</u>. In order to administer the Plan and this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the "***Relevant Companies***") may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Agreement (the "***Relevant Information***"). By entering into this Agreement, the Participant (i) authorizes each Relevant Company to collect, process, register and transfer to each other Relevant Company all Relevant Information; (ii) waives any privacy rights the Participant may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction which a Relevant Company considers appropriate. The Participant shall have access to, and the right to change, the Relevant Information. Relevant Information will only be used in accordance with Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Notices</u>. Any notice to be given under this Award 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. Any notice to be given under the terms of this Award Agreement to the Participant must be in writing and addressed to the Participant at the Participant's last known mailing address or email address in the Company's personnel files. By a notice given pursuant to this Section 12, either party may designate a different address for notices to be given to the 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 when delivered by a nationally recognized express shipping company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Entire Agreement; Governing Law</u>. The Plan and this Award Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof. This Award 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 Award Agreement shall materially and adversely affect the Participant's interest without the prior written consent of the Participant. This Award Agreement is governed by the internal substantive laws, but not the choice of law rules, of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Award Agreement Severable</u>. In the event that any provision of this Award 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 this Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Counterparts</u>. This Award Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Award Agreement may be by actual or facsimile signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <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. The 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 rights no greater than the right to receive cash or the Shares as a general unsecured creditor with respect to the RSUs, as and when settled pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Language</u>. Participant acknowledges that the Participant is proficient in the English language, or has consulted with an advisor who is sufficiently proficient in English, to allow the Participant to understand the terms and conditions of this Award Agreement. If the Participant received this Award Agreement or any other document related to this Award and/or the Plan translated into a language other than English, and if the translated version is different that the English version, the English version will control, unless otherwise required by Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>No Guarantee of Continued Service</u>. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE RESTRICTED SHARE UNITS PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AND NOT THROUGH THE ACT OF BEING GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER. PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AWARD AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER, AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, OR FOR ANY PERIOD AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH PARTICIPANT'S RIGHT OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANT'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

Participant acknowledges receipt of a copy of the Plan and represents that Participant is familiar with the terms and provisions thereof, and hereby accepts this Restricted Stock Unit Award, subject to all of the terms and provisions of the Plan and this Award Agreement. Participant has reviewed the Plan and this Award Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Award Agreement, and fully understands all provisions of the Award. 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 Award, or this Award Agreement. The Participant further agrees to notify the Company upon any change in the residence address indicated below.

 

*Signature Page Follows*

 

 

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| | |
|:---|:---|
| **PARTICIPANT** | **THE ELMET GROUP CO.** |
| Signature | By |
| Print Name | Print Name |
|  | Print Title |
| Residence Address |  |

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## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the use in this Amendment No. 1 to the Registration Statement (No. 333-294725) on Form S-1 of The Elmet Group Co. of our report dated March 6, 2026, relating to the consolidated financial statements of Anania & Associates and its subsidiaries (a/k/a The Elmet Group Co.), appearing in the Prospectus, which is part of this Registration Statement.

We also consent to the reference to our firm under the heading "Experts" in such Prospectus.

/s/ RSM US LLP

Boston, Massachusetts

April 14, 2026