# EDGAR Filing Document

**Accession Number:** 0002080841
**File Stem:** 0001213900-26-028518
**Filing Date:** 2026-3
**Character Count:** 1025997
**Document Hash:** f82ede0a3050b931b7a0e8f94653caae
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-028518.hdr.sgml**: 20260317

**ACCESSION NUMBER**: 0001213900-26-028518

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

**PUBLIC DOCUMENT COUNT**: 31

**FILED AS OF DATE**: 20260317

**DATE AS OF CHANGE**: 20260316

**FILER**: 

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

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-292504
- **FILM NUMBER:** 26758399

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

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

#### As filed with the U.S. Securities and Exchange Commission on March 16 , 2026

#### Registration No. 333-292504

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

#### ___________________________________

#### AMENDMENT NO. 2 <br>TO<br>FORM S-1<br>REGISTRATION STATEMENT<br>UNDER<br>THE SECURITIES ACT OF 1933

#### ___________________________________

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

#### ___________________________________

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| | | |
|:---|:---|:---|
|  **Delaware** | **1541** | **33-4856491** |
|  **(State or jurisdiction of** <br>**incorporation or organization)** | **(Primary Standard Industrial <br>Classification Code Number)** | **(I.R.S. Employer** <br>**Identification No.)** |

---

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

#### ___________________________________

#### Copies to:

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

---

#### ___________________________________

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

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

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

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

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

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

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

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

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

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

#### SUBJECT TO COMPLETION, DATED MARCH 16 , 2026

#### PROSPECTUS

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

#### BW Industrial Holdings Inc.
This prospectus relates to an initial offering of 2,625,000 shares of common stock, $0.0001 par value (the "Common Stock"), of BW Industrial Holdings Inc., a Delaware corporation (the "Company"), on a firm commitment basis (the "Offering"). We anticipate that the initial public offering price will be between $6 and $7.

We have reserved the symbol "BWGC" for purposes of listing our Common Stock on The NYSE American LLC ("NYSE American"). The closing of this Offering is conditioned upon NYSE American's final approval of our listing application, and there is no guarantee or assurance that our Common Stock will be approved for listing on NYSE American.

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

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

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

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

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total Without <br>Over-Allotment <br>Option** | **Total With <br>Over-Allotment <br>Option** |
|  Assumed Initial public offering price of Common Stock<sup>(1)</sup> | $6.50 | $17062500 | $19621875 |
|  Underwriting discounts<sup>(2)</sup> | $0.39 | $1023750 | $1177313 |
|  Proceeds to our company before expenses<sup>(3)</sup> | $6.11 | $16038750 | $18444562 |

---

____________

(1) Assumes an initial public offering price of $6.50 per share of Common Stock, the midpoint of the range set forth on the cover page of this registration statement.

(2) Represents underwriting discounts equal to 6.0% per share of Common Stock. Does not include an unaccountable expense allowance equivalent to one percent (1%) of the gross proceeds received by the Company from the sales of the shares of Common Stock payable to the underwriters, excluding the over-allotment option. We refer you to "Underwriting" beginning on page 80 of this prospectus for a description of compensation payable to the underwriters.

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(3) We have agreed to grant a 45-day option to Eddid Securities USA Inc., the representative of the underwriters ("Representative" or "Eddid"), to purchase up to an additional 393,750 shares of Common Stock, on the same terms and conditions as set forth above solely to cover over-allotments, if any. See "Underwriting" beginning on page 80 for more information.

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

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

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

#### Eddid Securities USA Inc.

#### The date of this prospectus is [•], 2026

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#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
|  [Prospectus Summary](#T991001) | 1 |
|  [Risk Factors](#T991002) | 12 |
|  [Cautionary Statement Concerning Forward-Looking Information](#T991003) | 30 |
|  [Dividend Policy](#T1004) | 32 |
|  [Use Of Proceeds](#T991005) | 33 |
|  [Capitalization](#T991006) | 34 |
|  [Dilution](#T991007) | 35 |
|  [Market Price and Dividends on Registrant's Common Equity and Related Stockholder Matters](#T991008) | 36 |
|  [Management's Discussion And Analysis Of Financial Condition and Results of Operations](#T991009) | 37 |
|  [Business](#T991010) | 51 |
|  [Industry](#T991011) | 63 |
|  [Management](#T991012) | 71 |
|  [Executive Compensation](#T991013) | 75 |
|  [Security Ownership of Certain Beneficial Owners and Management](#T991014) | 77 |
|  [Shares Eligible For Future Sale](#T991015) | 78 |
|  [Underwriting](#T991016) | 80 |
|  [Certain Relationships and Related Transactions](#T991017) | 85 |
|  [Description of Securities](#T991018) | 87 |
|  [Legal Matters](#T991019) | 91 |
|  [Experts](#T991020) | 91 |
|  [Disclosure Of Commission Position on Indemnification for Securities Act Liabilities](#T991021) | 91 |
|  [Where You Can Find Additional Information](#T991022) | 91 |
|  [Exhibits and Financial Statement Schedule](#T991023) | F-1 |

---

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For the years ended December 31, 2024 and 2025, our revenue was approximately $102.0 million and approximately $22.5 million, respectively. The revenue from our EPC services accounted for approximately $102.0 million, representing 100% of the total revenue for the year ended December 31, 2024, and approximately $22.1 million, representing 98% of the total revenue for the year ended December 31, 2025, respectively. Our net income was approximately $7.5 million and approximately $4.9 million for the years ended December 31, 2024 and 2025, respectively.

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

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

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

On June 5, 2025, the Company entered into a share exchange agreement with Bestwater and its stockholders, pursuant to which the Company acquired 100% of the issued and outstanding shares of common stock of Bestwater's, and in exchange, issued an aggregate of 9,700,000 shares of the Company's Common Stock (the "Share Exchange")

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to stockholders of Bestwater. As a result of the Share Exchange, Bestwater became a wholly owned subsidiary of the Company. The Share Exchange is recognized as a combination of entities under common control as both Bestwater and the Company have been controlled before and after the transaction by the same stockholders. As such, the financial statements and financial information contained in this filing for prior years have been retrospectively adjusted as if the Share Exchange had occurred at the beginning of the earliest period presented.

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

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

![](tflowchart_001.jpg)

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Effective Change Order Management Through Cultural Insight and Technical Expertise*. International clients often face costly change orders when working with contractors due to communication gaps, cultural misunderstandings, inconsistent documentation practices, and differing interpretations of regulatory requirements. We have observed projects where change orders have reached 100% of original contract values, doubling the project costs. Our approach focuses on minimizing such cost overruns through better upfront coordination and communication. Our team's deep understanding of the U.S. business norms and technical design standards enables us to proactively identify and resolve potential issues during the planning phase.

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Through our translation of the original design documents into locally compliant construction drawings, we aim to reduce ambiguity and increase project alignment from the outset. This collaborative, detail-oriented approach tends to minimize the likelihood of scope changes and contributes to more predictable project outcomes.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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| | |
|:---|:---|
|  **Issuer** | BW Industrial Holdings Inc. |
|  **Securities offered by us** | 2,625,000 shares of Common Stock (or 3,018,750 shares of Common Stock if the underwriters exercise their option to purchase additional shares of Common Stock in full within 45 days of the closing date of this Offering). |
|  **Over-allotment option** | We have granted to the underwriters an option, exercisable within 45 days from the closing of the Offering to purchase up to an aggregate of 393,750 additional shares of Common Stock. |
|  **Form of the Offering** | Firm commitment basis |
|  **Offering price** | We estimate that the initial public offering price will be in the range of $6.0 to $7.0 per share of Common Stock. |
|  **Shares of Common Stock outstanding before this Offering** | <br>19,400,000 shares of Common Stock |
|  **Shares of Common Stock outstanding following the Offering** | <br>22,025,000 shares of Common Stock assuming no exercise of the underwriters' over-allotment option. <br> 22,418,750 shares of Common Stock, assuming full exercise of the underwriters' over-allotment option. |
|  **Use of proceeds** | We intend to use proceeds from the Offering for business expansion, strategic acquisitions and working capital and other general corporate purposes. See "Use of Proceeds" for additional information. |
|  **Lock-up** | We have agreed not to, for a period of six (6) months from the date of this prospectus, issue, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of our Common Stock or any securities convertible into or exercisable or exchangeable for shares of our Common Stock (excluding, however, the issuance of any shares of our Common Stock or other equity awards pursuant to our executive compensation or employee benefit plan), without the prior written consent of the Representative. <br> All of our directors and officers and our principal stockholders (5% or more stockholders) have agreed with the underwriters, subject to certain exceptions, not to sell, transfer, or dispose of, directly or indirectly, any of our Common Stock or securities convertible into or exercisable or exchangeable for our Common Stock for a period of six (6) months after the date of this prospectus. See "Underwriting — Lock-up Agreements" for more information. |

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

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#### Summary of Risk Factors

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

#### Risks Related to Our Business and Operation

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

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

#### Our dependence on large construction contracts may result in uneven financial results.
Our EPC services activities are concentrated on a limited number of large construction projects for which we recognize revenues over time. We believe this best reflects the transfer of control to the client and the progress toward completion. To a substantial extent, our contract revenues are based on the related amounts of costs incurred. As the timing of equipment purchases, subcontractor services and other contract events may not be evenly distributed over the terms of our contracts, the amount of total contract costs may vary from quarter to quarter, creating uneven amounts of quarterly and/or annual consolidated revenues. In addition, the timing of contract commencements and completions may exacerbate the uneven pattern. For example, in April 2025, a solar panel module manufacturer client under a service agreement dated March 25, 2024, (the "Solar Agreement") exercised its right to terminate for convenience. The majority of the project work under the Solar Agreement was completed prior to the termination and we recognized approximately $93.4 million of revenue, representing 100% of the total contract value comprised of $79.5 million of revenue from the Solar Agreement during the fiscal year ended December 31, 2024 and $13.9 million of revenue from the Solar Agreement during the fiscal year ended December 31, 2025.

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

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

Our business is subject to significant customer concentration. For the year ended December 31, 2025, two major clients accounted for 62% and 11% of our total revenues. For the year ended December 31, 2024, two major clients accounted for 78% and 19% of our total revenues. We expect that a significant portion of our revenue will continue to be derived from an increasing number of clients and projects for the foreseeable future. However, a reduction in the scope or value of projects, or delays in payments could materially and adversely affect our revenue, cash flows, and profitability.

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

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

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

A significant portion of our cost of revenues is attributable to a limited number of vendors. For the year ended December 31, 2025, four vendors accounted for 27%, 13%, 11% and 11% of our total cost of revenues. For the year ended December 31, 2024, four vendors accounted for 19%, 18%, 14% and 13% of our total cost of revenues. This is common for EPC projects that heavily concentrate on MEP work. We expect to continue to depend on a small pool of highly qualified vendors for subcontracted services, and also control the number of vendors working on each project for on-site management purposes for the foreseeable future. Any disruption, delay, or deterioration in our relationships with these suppliers could materially impact our ability to deliver projects on time and on budget. In addition, if any of our major vendors were to significantly increase their prices or change their terms unfavorably, and we are unable to pass those increases on to our clients or secure alternative vendors on acceptable terms, our gross margins and financial results could be adversely affected. Although we seek to maintain strong relationships with our vendors and evaluate alternatives where feasible, there can be no assurance that we will be able to avoid disruptions or cost increases in the future.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

#### You will experience immediate and substantial dilution as a result of this Offering and may experience additional dilution in the future .
You will incur immediate and substantial dilution as a result of this Offering. After giving effect to the sale by us of 2,625,000 shares of Common Stock offered in this Offering at an assumed initial public offering price of $6.50 per share, the midpoint of the price range set forth on the cover page, and after deducting underwriting commissions and estimated offering expenses payable by us, investors in this Offering can expect an immediate dilution of $6.47 per share. Following the completion of this Offering, in most scenarios, our Board has the authority, without action or vote of our stockholders, to issue all or any part of our authorized but unissued shares of Common Stock, including shares issuable upon the exercise of options, or shares of our authorized but unissued preferred stock. Issuances of Common Stock or voting preferred stock would reduce your influence over matters on which our stockholders vote and, in the case of issuances of preferred stock, would likely result in your interest in us being subject to the prior rights of holders of that preferred stock. See the section titled "Dilution."

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Prior to the consummation of this Offering, we are a private company with limited accounting personnel to adequately execute our accounting processes and limited supervisory resources with which to address our internal control over financial reporting. Although not required to make a formal assessment, we do review and, in the year ended December 31, 2025, did identify control deficiencies in the design and operation of our internal control over financial reporting that constituted material weaknesses. Specifically, these material weaknesses included (i) the lack of accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements to properly address complex U.S. GAAP accounting issues and to prepare and review our consolidated financial statements and related disclosures to fulfill U.S. GAAP and SEC financial reporting requirements; and (ii) lack of formal policies and procedures to establish risk assessment processes and an internal control framework.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On December 31, 2024, Bestwater declared a special dividend in the amount of $2,303,066 to Mr. Yunlong Zhang. On June 1, 2025, Bestwater declared a special dividend in an aggregate amount of $1,998,200 to its stockholders as of such date. Other than aforementioned special dividends, we have never declared or paid dividends on our Common Stock. As of the date of this prospectus, we intend to retain any future earnings to support the development of our business and therefore do not anticipate paying cash dividends for the foreseeable future. Payment of future dividends, if any, will be at the discretion of our Board after taking into account various factors, including current financial condition, operating results and current and anticipated cash needs.

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#### USE OF PROCEEDS
Based upon an assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, we estimate that we will receive net proceeds from this Offering, after deducting the estimated underwriting discounts and the estimated offering expenses payable by us, of approximately $15.3 million if the underwriters do not exercise their over-allotment option, and $17.7 million if the underwriters exercise their over-allotment option in full.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma as adjusted basis to reflect the issuance and sale of 2,625,000 shares of Common Stock by us in this Offering at the assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, after deducting the estimated discounts to the underwriters, non-accountable expense allowance, and the estimated offering expenses payable by us. The following capitalization table assumes the over-allotment option has not been exercised and fully exercised.

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

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Actual<sup>(1)</sup>** | **Pro Forma As Adjusted<sup>(</sup><sup>2</sup><sup>)</sup>** | **Pro Forma As Adjusted<sup>(</sup><sup>2</sup><sup>)</sup>** |
|  | **Actual<sup>(1)</sup>** | **Assuming no <br>exercise of the <br>over-allotment <br>option** | **Assuming full <br>exercise of the <br>over-allotment <br>option** |
|  Cash and cash equivalent | $6061163 | $21375961 | $23756179 |
|  Stockholders' Equity: |  |  |  |
|  Common Stock, (i) $0.0001 par value; 200,000,000 shares of Common Stock authorized; 19,400,000 issued and outstanding on an actual basis, and (ii) $0.0001 par value; 200,000,000 shares of Common Stock authorized; 22,025,000 issued and outstanding on a pro forma as adjusted basis. | $1940 | 2203 | 2242 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1736415 | 16620950 | 19001129 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 12599514 | 12599514 | 12599514 |
| &nbsp;&nbsp;&nbsp; Total Stockholders' Equity | $14337869 | 29222667 | 31602885 |

---

____________

(1) Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025, and the 1 for 2 forward stock split effected on December 19, 2025, both of which have been retroactively reflected in the share amounts and per share data presented on an actual basis and in our audited consolidated financial statements for the year ended December 31, 2025.

(2) Reflects the sale of the 2,625,000 shares of Common Stock in this Offering at an assumed initial public offering price of $6.50 per share, the midpoint of the price range set forth on the cover page of the registration statement, and after deducting the estimated underwriting discounts, non-accountable expense allowance, and estimated offering expenses payable by us. The as adjusted information is illustrative only, and we will adjust this information based on the actual initial public offering price and other terms of this Offering determined at pricing. Additional paid-in capital reflects the net proceeds we expect to receive, after deducting the underwriting discounts, non-accountable expense allowance, and estimated offering expenses payable by us. We estimate that such net proceeds will be approximately $14.9 million.

A $1.00 increase (decrease) in the assumed initial public offering price of $6.50 per share would increase (decrease) each of additional paid-in capital, total stockholders' equity, and total capitalization by $2.4 million, assuming the number of the Common Stock offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts and estimated expenses payable by us.

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#### DILUTION
If you invest in our Common Stock, your interest will be diluted to the extent of the difference between the public offering price per share of our Common Stock that you pay and the pro forma as adjusted net tangible book value per share of our Common Stock after this Offering. Our pro forma as adjusted net tangible book value as of December 31, 2025, was 14.3 million, or $0.74 per share of Common Stock. Our pro forma as adjusted net tangible book value per share represents total assets reduced by goodwill and other intangible assets and total liabilities and divided by the number of shares of Common Stock outstanding immediately prior to the closing of this Offering.

After giving effect to our sale of 2,625,000 shares offered in this Offering based on the estimated initial public offering price of $6.50 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, after deduction of the estimated underwriting discounts and the estimated offering expenses payable by us, our as adjusted net tangible book value as of December 31, 2025, would have been $29.2 million, or $1.33 per outstanding share of Common Stock. This represents an immediate increase in net tangible book value of $0.59 per share of Common Stock to the existing stockholders, and an immediate dilution in net tangible book value of $5.17 per share of Common Stock to investors purchasing the shares of Common Stock in this Offering. The as adjusted information discussed above is illustrative only.

The following table illustrates such dilution:

---

| | | |
|:---|:---|:---|
|  | **Post-Offering<sup>(1)</sup>** | **Full Exercise of <br>Over-Allotment <br>Option** |
|  Assumed initial public offering price per share | $6.50 | $6.50 |
|  Net tangible book value per share as of December 31, 2025 | $0.74 | $0.74 |
|  Increase per share attributable to this Offering | $0.59 | $0.67 |
|  As adjusted net tangible book value per share immediately after this Offering | $1.33 | $1.41 |
|  Amount of dilution in net tangible book value per share to new investors in the Offering | $5.17 | $5.09 |

---

____________

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

The following tables summarize, on an as adjusted basis as of December 31, 2025, the differences between existing stockholders and the new investors with respect to the number of shares purchased from us, the total consideration paid and the average price per share before deducting the estimated underwriting discounts and the estimated offering expenses payable by us.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Over-allotment option not <br>exercised** | **Shares purchased**  | **Shares purchased**  | **Total consideration** | **Total consideration** | **Average price <br>Per Share** |
|  **Over-allotment option not <br>exercised** | **Number** | **Percent** | **Amount** | **Percent** | **Average price <br>Per Share** |
|  Existing stockholders | 19400000 | 88% | $14337869 | 46% | $0.74 |
|  New investors | 2625000 | 12% | $17062500 | 54% | $6.50 |
|  Total | 22025000 | 100% | $31400369 | 100% | $1.43 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Over-allotment option <br>exercised in full** | **Shares purchased**  | **Shares purchased**  | **Total consideration** | **Total consideration** | **Average price <br>Per Share** |
|  **Over-allotment option <br>exercised in full** | **Number** | **Percent** | **Amount** | **Percent** | **Average price <br>Per Share** |
|  Existing stockholders | 19400000 | 87% | $14337869 | 42% | $0.74 |
|  New investors | 3018750 | 13% | $19621875 | 58% | $6.50 |
|  Total | 22418750 | 100% | $33959744 | 100% | $1.51 |

---

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

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

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

#### Number of Holders
As of March 16, 2026, there are four (4) record holders of our Common Stock.

#### Dividend Policy
On December 31, 2024, Bestwater declared a special dividend in the amount of $2,303,066 to Mr. Yunlong Zhang. On June 1, 2025, Bestwater declared a special dividend in an aggregate amount of $1,998,200 to its stockholders as of such date. Other than aforementioned special dividends, we have never declared or paid dividends on our Common Stock. As of the date of this prospectus, we intend to retain any future earnings to support the development of our business and therefore do not anticipate paying cash dividends for the foreseeable future. Payment of future dividends, if any, will be at the discretion of our Board after taking into account various factors, including current financial condition, operating results and current and anticipated cash needs.

#### Securities Authorized for Issuance under Equity Compensation Plans
Our Board of Directors approved and adopted the "2026 Equity Incentive Plan" (the "Plan") on March 13, 2026. The Plan is filed as Exhibit 10.4 hereto. The following table discloses information as of the date of this prospectus, with respect to compensation plans (including individual compensation arrangements) under which our equity securities are authorized for issuance, aggregated as follows:

#### Equity Compensation Plan Information

---

| | | | |
|:---|:---|:---|:---|
|  **Plan category** | **Number of <br>securities to <br>be issued upon <br>exercise of <br>outstanding <br>options or <br>rights** | **Weighted- <br>average <br>exercise price <br>of outstanding <br>options or <br>rights** | **Shares of <br>common stock <br>remaining <br>available for <br>future issuance <br>under equity <br>compensation <br>plans** |
|  Equity compensation plans approved by security holders: |  |  |  |
| &nbsp;&nbsp;&nbsp; Plan<sup>(1)</sup> | 1500000 |  |  |
|  Equity compensation plans not approved by security holders |  |  |  |
|  Total | 1500000 |  |  |

---

____________

(1) The number of shares of Common Stock reserved for issuance under our Plan is initially 1,500,000 shares of Common Stock; such amount will increase automatically on January 1 of each calendar year, starting with January 1, 2027, with an additional number of shares of Common Stock equal to the lesser of (A) 5% of the outstanding number of shares of Common Stock (on a fully-diluted basis) on December 31 and (B) such lower number of shares of Common Stock as may be determined by the Board. As of the date of this prospectus, we have not issued any awards or grants under the plan.

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

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

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

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

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

For the years ended December 31, 2024 and 2025, our revenue was approximately $102.0 million and approximately $22.5 million, respectively. The revenue from our EPC services accounted for approximately $102.0 million, representing 100% of the total revenue for the year ended December 31, 2024, and approximately $22.1 million, representing 98% of the total revenue for the year ended December 31, 2025, respectively. Our net income was approximately $7.5 million and approximately $4.9 million for the years ended December 31, 2024 and 2025, respectively.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Demand from our major client groups*** — We derive a substantial portion of our revenue from a limited number of clients. For the year ended December 31, 2024, two major clients accounted for 78% and 19% of our total revenues. For the year ended December 31, 2025, two major clients accounted for 62% and 11% of our total revenues. Our contract assets also reflect this concentration. As of December 31, 2024, one major client accounted for 100% of our total accounts receivable. As of December 31, 2025, three

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major clients accounted for 53%, 31% and 14% of our total accounts receivable. As of December 31, 2024, two major clients accounted for 65% and 30% of our total contract assets. As of December 31, 2025, two major clients accounted for 66% and 29% of our total contract assets.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Concentration of supply*** — For the year ended December 31, 2024, four vendors accounted for 19%, 18%, 14% and 13% of our total cost of revenues. For the year ended December 31, 2025, four vendors accounted for 27%, 13%, 11% and 11% of our total cost of revenues. This concentration is not the result of strategic reliance on specific subcontractors, but rather reflects project-specific factors, such as the technical complexity or volume of work in certain trades (e.g., electrical or mechanical), that cause certain vendors to assume a larger role in specific projects. All subcontractors and suppliers are selected through competitive bidding based on each project's scope, location, and schedule. While we maintain an expanding vendor pool, changes in pricing, availability, or performance of these key vendors could adversely impact our cost structure and operating margins. As of the date of this prospectus, we continue to manage this risk by evaluating alternative vendors and negotiating favorable terms where appropriate.

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

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

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

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

<u>**<u>Comparison of operating results for the financial years ended December 31, 2025 and 2024</u>**</u>

The following table shows our statement of operations data for the fiscal years ended December 31, 2024 and 2025. For further information regarding the results of our operations, see our financial statements appearing elsewhere in this prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2024<br>(As revised)\*** | **For the <br>year ended <br>December 31, <br>2025** | **Change** | **Change** |
|  | **US$** | **US$** | **US$** | |
|  **Revenue** | 102048355 | 22462991 | (79585364) | (78)% |
|  Cost of revenues | (88920480) | (11525611) | 77394869 | (87)% |
|  **Gross profit** | **13127875** | **10937380** | **(2190495**) | **(17)%** |
|  **Operating expenses:** |  |  |  |  |
|  Selling, general, and administrative expenses | (3399971) | (4960551) | 1560580 | 46% |
|  **Total operating expenses** | (3399971) | (4960551) | 1560580 | 46% |
|  **Income from operations** | **9727904** | **5976829** | **(3751075)** | **(39)%** |
|  **Other income** |  |  |  |  |
|  Interest income, net | 105115 | 93906 | (11209) | (11)% |
|  Other income, net |  | 338507 | 338507 | 100% |
|  **Total other income** | **105115** | **432413** | **327298** | **311%** |
|  **Income before income tax expense** | **9833019** | **6409242** | **(3423777**) | **(35)**% |
|  Income tax expense | (2290112) | (1515089) | 775023 | (34)% |
|  **Net income** | **7542907** | **4894153** | **(2648754**) | **(35)%** |

---

____________

\* Revision to prior period financial statements

Subsequent to the filing of the Company's registration statement on Form S-1, as amended, with the SEC on January 21, 2026, which included the Company's audited consolidated financial statements for the years ended December 31, 2024 and 2023, management of the Company discovered that the sales tax liability and the state tax liability were understated as of December 31, 2024 by US$33,539 and US$465,285 (tax plus interest, netting with federal effect and excluding penalties), respectively, related to the prior years of 2022 through 2024.

In accordance with Staff Accounting Bulletin ("SAB") No. 99, "Materiality," and SAB No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements," the Company evaluated the adjustments detailed below, and determined the related impact did not materially misstate its previously issued financial statements as of and for the year ended December 31, 2024. Although the Company concluded that the misstatement was not material to its previously issued consolidated financial statements, the Company has determined it was appropriate to adjust its previously issued consolidated financial statements on a prospective basis to provide appropriate context to stakeholders within the comparative financial statements as of and for the year ended December 31, 2025.

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#### Revenue
As set forth in the following table, during the years ended December 31, 2024 and 2025, our revenue was derived from EPC services and sales of equipment:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  EPC services | 101951758 | 100% | 22112889 | 98% |
|  Sales of equipment | 96597 | —% | 350102 | 2% |
|  **Total** | **102048355** | **100**% | **22462991** | **100**% |

---

Our total revenue decreased by approximately $79.6 million, or 78%, to approximately $22.5 million for the year ended December 31, 2025 from approximately $102.0 million for the year ended December 31, 2024. The decrease was primarily due to the completion of several large-scale projects in early to mid-2025 that contributed to most of the Company's revenue in 2024, as well as the postponement of a $30 million EPC contract with a new client in the battery manufacturing industry. The $30 million EPC project, which was signed in February 2025 and expected to commence shortly thereafter, was placed on hold in June 2025. While the contract has not been terminated and we remain in active communication with the client, as of the date of this prospectus, there is currently no definitive timeline for resumption. While the size of EPC projects completed in 2025 was smaller than those in 2024, we entered into several large EPC contracts toward the end of 2025. These projects form part of our project backlog and as of the date of this prospectus, are expected to contribute to revenue recognition beginning in 2026 as the projects progress.

In April 2025, the client under the Solar Agreement exercised its right to terminate for convenience. The termination did not result from any performance issues or breach by us. The majority of the project work under the Solar Agreement was completed prior to the termination and we recognized approximately $93.4 million in revenue from the Solar Agreement, representing 100% of its total contract value. Out of the total contract value, $13.9 million was recognized for the year ended December 31, 2025.

During the year ended December 31, 2025, we expanded our customer base and entered into EPC contracts with new clients across multiple industrial sectors. Revenue was recognized in 2025 on a number of these newly awarded projects; however, revenue recognized from certain larger projects was limited in 2025 due to later contract execution dates and the timing of project commencement. Based on current project schedules, as of the date of this prospectus a significant portion of the remaining contract value for these larger projects may be recognized in fiscal year 2026; however, the timing and amount of revenue recognized will depend on project execution, milestone certifications, change orders (if any), and customer acceptance. See "Recent Developments" for additional information.

#### Cost of revenues
Our cost of revenues decreased by approximately $77.4 million, or 87% to approximately $11.5 million for the year ended December 31, 2025, from approximately $88.9 million for the year ended December 31, 2024. This decrease was primarily correlated with the decrease in revenue from EPC services, as project activity was significantly lower during the period. Amounts payable to certain vendors were accrued based on vendor contract amount as of December 31, 2024. During the invoice reconciliation process with those vendors in 2025, we revised our estimates for certain accrued amounts, resulting in an approximately $3.7 million decrease from the amounts previously accrued. This change was attributable to improved vendor efficiency and did not result from any changes in project scope or contractual terms. The change in estimate was recorded as a reduction in cost of revenues for the year ended December 31, 2025.

#### Gross profit
Our gross profit margin increased from approximately 13% for the year ended December 31, 2024 to approximately 49% for the year ended December 31, 2025. The increase was primarily driven by a favorable change order on one of our EPC projects, which provided additional compensation at a higher margin relative to our other project activities during the period. In addition, during the invoice reconciliation process with certain vendors in 2025, we revised our estimates for certain accrued amounts, resulting in an approximately $3.7 million decrease from the amounts previously accrued, which was recorded as a reduction in cost of revenues for the year ended December 31, 2025. As overall project volume declined in 2025, this high-margin change order and deduction of cost of revenues contributed a proportionally larger share of total gross profit, which may not be indicative of our gross profit margins or operating results in future periods.

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#### Selling, general and administrative expenses
The following table sets forth the breakdown of our selling, general and administrative expenses for the financial years ended December 31, 2024 and 2025:

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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,** |
|  | **2024<br>(As revised)\*** | **2024<br>(As revised)\*** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  Payroll and welfare expenses | 1570663 | 46% | 2438918 | 49% |
|  Office expenses | 1003594  | 30% | 513392 | 10% |
|  Professional service expenses | 645265 | 19% | 657696 | 13% |
|  Operating lease expenses | 65765 | 2% | 17161 | 1% |
|  Depreciation expenses | 32747 | 1% | 19803 | 1% |
|  Share-based compensation expenses |  | —% | 1296619 | 26% |
|  Selling expenses | 81937 | 2% | 16962 | 0% |
|  **Total** | **3399971** | **100%** | **4960551** | **100%** |

---

____________

\* Certain prior-year amounts have been revised. See "Management's Discussion and Analysis of Financial Condition and Results of Operations — Comparison of operating results for the financial years ended December 31, 2025 and 2024 — Revision to prior period financial statements" on page 39 for further information.

Selling, general, and administrative expenses increased by approximately $1.6 million or 46% to approximately $5.0 million for the year ended December 31, 2025, from approximately $3.4 million for the year ended December 31, 2024.

The increase primarily reflected the recognition of share-based compensation expense of approximately $1.3 million in 2025, which resulted from a one-time grant of equity awards that were fully vested upon grant and therefore was recognized immediately, and is not expected to recur in future periods. The increase was also driven by the Company's continued business expansion efforts, including the hiring of additional project management, engineering and administrative personnel to support ongoing operations. In addition, professional service expenses increased due to audit fees in connection with our proposed initial public offering and legal fees for a closed litigation proceeding.

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

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

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

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

#### Other Income
Our interest income increased from bank deposit increases by $11,058 for the year ended December 31, 2025. This increase was primarily attributable to higher average cash and cash equivalent balances and deposits during the year ended December 31, 2025. Our other income increased by $338,507 for the year ended December 31, 2025 primarily from a settlement agreement for negotiation.

#### Income Tax Expenses
For the year ended December 31, 2025, our income tax expense was approximately $1.5 million, compared to $2.3 million for the year ended December 31, 2024. The decrease was primarily due to the decline in our profit before income tax for the year ended December 31, 2025, and the change in income tax expense was generally in line with the change in our profitability.

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#### Net Income
As a result of the foregoing, our net income amounted to approximately $7.5 million and approximately $4.9 million for the financial years ended December 31, 2024 and 2025, respectively, representing a decrease of approximately $2.6 million. This decrease was primarily attributable to the decline in our income from operations in 2025 compared to 2024. In addition, selling, general and administrative expenses in 2025 included approximately $1.3 million of share-based compensation expense related to a one-time equity grant, which contributed to the year-over-year decline in net income. The remaining decrease was attributable to other changes in our operating results described above.

#### Recent Developments
During fiscal year 2025, we expanded our customer base and entered into EPC contracts with ten new clients across multiple industrial sectors, including semiconductor fabrication and photovoltaic manufacturing.

Among these new awards, three larger projects represent an aggregate contract value of approximately $37 million. These contracts were executed during 2025 and are generally structured as fixed-price EPC arrangements, with revenue recognized over time based on project progress in accordance with ASC 606.

For the year ended December 31, 2025, we recognized less than $1.0 million of revenue related to these three projects. As of December 31, 2025, project mobilization and initial execution activities were in the early stages and certain billings are subject to milestone certification and customer approval. Based on current project schedules, we expect that a substantial majority of the contract value associated with these projects will be recognized during fiscal year 2026, subject to project execution, milestone certifications, change orders (if any), and customer acceptance.

We believe these new awards will help broaden our client base, diversify our industry exposure, and enhance revenue visibility entering 2026.

#### Liquidity and Capital Resources
As of December 31, 2025, we had approximately $6.1 million in cash and cash equivalent, compared to approximately $9.4 million as of December 31, 2024. The decrease was primarily attributable to cash outflows from investing activities related to purchase of bank deposit and financing activities related to the dividend payment made to stockholders in July 2025.

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

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

#### Material Cash Requirements

#### Working Capital
As of December 31, 2025, we had approximately $6.1 million in cash and cash equivalent, and net current assets of approximately $14.0 million. The increase in net current assets compared to approximately $10.0 million as of December 31, 2024, was mainly due to a decrease in current liabilities as certain project-related payables were settled during the period. Subsequent to December 31, 2025, and up to the date of this prospectus, we have not received additional paid-in capital and our cash position has not materially changed.

Our historical operating cash requirements primarily consist of selling, general and administrative expenses ("SG&A"), which were approximately $5.0 million for the year ended December 31, 2025. SG&A for the period included payroll and welfare expenses due to the hiring of additional project management, engineering and administrative personnel to support ongoing operations, professional service fees related to audit and legal, as well as a one-time share-based compensation expense of approximately $1.3 million. By contrast, our cost of revenues fluctuates with project execution levels and is generally matched by project-related cash inflows.

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

---

| | | |
|:---|:---|:---|
|  | **As of<br>December 31,<br>2024<br>(As revised)\*** | **As of <br>December 31, <br>2025** |
|  | **US$** | **US$** |
|  Total current assets | 24041132 | 22984018 |
|  Total current liabilities | (14093795) | (8975593) |
|  Net current assets | 9947337 | 14008425 |

---

____________

\* Certain prior-year amounts have been revised. See "Management's Discussion and Analysis of Financial Condition and Results of Operations — Comparison of operating results for the financial years ended December 31, 2025 and 2024 — Revision to prior period financial statements" on page 39, for further information.

#### Cash flows
The following table summarizes our cash flows for the financial years ended December 31, 2024 and 2025:

---

| | | |
|:---|:---|:---|
|  | **For the years ended <br>December 31,** | **For the years ended <br>December 31,** |
|  | **2024** | **2025** |
|  | **US$** | **US$** |
|  **Cash and cash equivalent at the beginning of the year** | 9573299 | 9443799 |
|  Net cash provided by operating activities | 58907 | 56303 |
|  Net cash used in investing activities | (99018) | (1010739) |
|  Net cash used in financing activities | (89389) | (2428200) |
|  Net change in cash and cash equivalent | (129500) | (3382636) |
|  **Cash and cash equivalent at the end of the year** | 9443799 | 6061163 |

---

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

For the year ended December 31, 2025, our net cash provided by operating activities was approximately $0.1 million, which primarily reflected our net income of approximately $4.9 million, adjusted for non-cash items and significant changes in working capital. Operating cash flow was negatively affected by (i) increase of contract assets of approximately $1.1 million, and (ii) decrease of accounts payable of approximately $4.7 million and positively adjusted by (iii) increase of contract liabilities of approximately $3.2 million.

For the year ended December 31, 2024, our net cash provided by operating activities was approximately $0.1 million, which primarily reflected our net income of approximately $7.5 million, as negatively adjusted by (i) increase of accounts receivable of approximately $0.9 million, and (ii) increase of contract assets of approximately $10.2 million and positively adjusted by (iii) increase of accounts payable of approximately $3.6 million.

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

For the year ended December 31, 2025, our net cash used in investing activities was approximately $1.0 million, primarily due to purchase of bank deposit.

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

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

For the year ended December 31, 2025, our net cash used in financing activities was approximately $2.4 million, which was primarily due to the payment of dividends of approximately $2.0 million to our stockholders and the payment of approximately $0.4 million in deferred offering costs. These financing outflows were non-recurring in nature and were related to capital market activities and the Company's pre-offering capital structure.

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

#### Accounts receivable
Our net accounts receivable increased from approximately $1.0 million as of December 31, 2024 to approximately $1.0 million as of December 31, 2025.

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

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>December 31, <br>2025** |
|  | **US$** | **US$** |
|  Within 30 days | 970500 | 147265 |
|  Between 31 and 60 days |  | 149980 |
|  Between 61 and 90 days |  | 16195 |
|  Over 91 days |  | 717274 |
|  Accounts receivable, net | 970500 | 1030714 |

---

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

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

The increase in amounts aged over 91 days as of December 31, 2025, was mainly due to delays in client payment processing and the timing of certification and approval cycles under our EPC contracts. Our EPC agreements generally include progress-certification-and-billing provisions ("PCABO"), under which billings are tied to verified milestones and obligate clients to remit payment upon certification. These contractual mechanisms support the collectability of our accounts receivable, and the ageing profile reflects timing differences rather than deterioration in credit quality.

Based on management's assessment of client credit quality, payment history, project status, and contractual billing protections, no allowance for credit losses was recorded for the years ended December 31, 2024 and 2025.

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#### Contract assets
Our contract assets further increased from approximately $12.7 million as of December 31, 2024 to approximately $13.7 million as of December 31, 2025, primarily due to continued EPC work performed for the same two major clients for which certification and billing had not yet occurred as of December 31, 2025. During the year ended December 31, 2025, additional contract assets of approximately $6.6 million were recognized from these projects as work progressed ahead of agreed project milestones. As noted above, the invoices totaling approximately $5.6 million that were recorded as contract assets as of December 31, 2024 were fully settled in cash by December 31, 2025. We expect the outstanding milestones to be certified subsequent to December 31, 2025; however, as of the date of this prospectus, no firm timeline exists. Management believes that the delays in certification are procedural in nature, and reflect project scale, but as of the date of this prospectus, no firm timeline exists, and prolonged delays could impair collectability or liquidity.

#### Accounts payable
Our accounts payable decreased from approximately $10.6 million as of December 31, 2024 to approximately $2.2 million as of December 31, 2025. The decrease was mainly due to the settlement of subcontractor payables associated with EPC projects that were completed during the period. The reduction reflects the normal timing of project completion and supplier payment cycles rather than any change in our procurement practices or payment terms. Amounts payable to certain vendors were accrued based on vendor contract amount as of December 31, 2024. During the invoice reconciliation process with those vendors in 2025, we revised our estimates for certain accrued amounts, resulting in an approximately $3.7 million decrease from the amounts previously accrued. This change was attributable to improved vendor efficiency and did not result from any changes in project scope or contractual terms. The change in estimate was recorded as a reduction in cost of revenues for the year ended December 31, 2025.

#### Capital Commitments
As of December 31, 2024 and 2025, we had neither significant financial nor capital commitment.

#### Contractual Obligations
The following table summarized our contractual obligations, which include principal in the cases of contract liabilities as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
|  | **Less than <br>1 year** | **1 to 3 years** | **3 to 5 years** | **Total** |
|  | **US$** | **US$** | **US$** | **US$** |
|  Contractual Obligations: |  |  |  |  |
|  Contract liabilities | 3902213 |  |  | 3902213 |
|  Operating lease obligations | 17330 |  |  | 17330 |

---

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

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

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

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalent with financial institutions with high credit ratings. As of December 31, 2024 and 2025, the Company held $9,443,799 and $6,061,163 in cash and cash equivalent, respectively.

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

*Concentration of demand*

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client C | 970500 | 100% |  | —% |
| &nbsp;&nbsp;&nbsp; Client E |  | —% | 319685 | 31% |
| &nbsp;&nbsp;&nbsp; Client F |  | —% | 542629 | 53% |
| &nbsp;&nbsp;&nbsp; Client H |  | —% | 142265 | 14% |
|  **Total** | 970500 | 100% | 1004579 | 98% |

---

The following table sets forth a summary of single customers who represent 10% or more of the Company's total revenue for the twelve month periods stated therein:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 19673476 | 19% | 2559994 | 11% |
| &nbsp;&nbsp;&nbsp; Client E | 79569682 | 78% | 13876017 | 62% |
|  **Total** | 99243158 | 97% | 16436011 | 73% |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 8282006 | 65% | 9100000 | 66% |
| &nbsp;&nbsp;&nbsp; Client E | 3812738 | 30% | 4000000 | 29% |
|  **Total** | 12094744 | 95% | 13100000 | 95% |

---

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

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

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

*Concentration of supply*

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier B | 2757791 | 26% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier D | 3402390 | 32% | 1431913 | 66% |
| &nbsp;&nbsp;&nbsp; Supplier H |  | —% | 478251 | 22% |
|  **Total** | 6160181 | 58% | 1910164 | 88% |

---

The following table sets forth a summary of single suppliers who represent 10% or more of the Company's total cost for the twelve month periods stated therein:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier D | 17188618 | 19% | 3080492 | 27% |
| &nbsp;&nbsp;&nbsp; Supplier F | 16287868 | 18% | 1488681 | 13% |
| &nbsp;&nbsp;&nbsp; Supplier G | 12687903 | 14% | 1225608 | 11% |
| &nbsp;&nbsp;&nbsp; Supplier H | 11144609 | 13% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier I |  | —% | 1256911 | 11% |
|  **Total** | 57308998 | 64% | 7051692 | 62% |

---

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

*Liquidity Risk*

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to maintain sufficient liquidity to meet its obligations as they come due in the ordinary course of business, while seeking to minimize costs and preserve financial flexibility.

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

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

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

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

The Company elected to adopt Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), effective as of April 1, 2020. Accordingly, the consolidated financial statements for the years ended December 31, 2024 and 2025 are presented under ASC 606. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. For the accounting period, the Company has determined two revenue streams for the accounting period, which includes: (1) Revenue from EPC services and (2) Sales of equipment and others.

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

(1) EPC services

The Company typically got the project through project bidding or purchase orders from its clients which will set the terms and conditions including the transaction price, services to be performed, performance obligations, and terms of payments. The terms and conditions serve as the basis of the performance obligations that the Company must fulfill in order to recognize revenue. The performance obligation is to provide engineering, procurement, and construction services to the clients. There is no implied or implicit performance obligations related to the contract and/or purchase order. The scope of work to be executed by the Company shall include all materials and equipment

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required by the Contract and all temporary or permanent sub-contractor's personnel, materials and other items and services required for the engineering, procurement, construction, facility equipment commissioning, training, defect remedy and acceptance.

The contract is typically fixed priced with certain exemptions, which have a variable consideration within a range of the contract price based on changing the scope of work, which is reflected in the milestone billings based upon the attainment of specific project objectives to help the Company meets its contractual obligation. The Company's revenue is derived from contracts where scope is adequately defined, and therefore the Company can reasonably estimate total contract value. Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. The Company estimates variable consideration based on the amount the Company expects to be entitled, and includes estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when the Company concludes that any significant uncertainty associated with the variable consideration is resolved. For the years ended December 31, 2024 and 2025, we had no material amounts in revenue related to unapproved change orders or liquidated damages.

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

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

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

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

(2) Sales of equipment and others

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

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

#### Recent accounting pronouncements
The Company is an "emerging growth company" as defined in the JOBS Act. Under the JOBS Act, an emerging growth company can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.

In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." This amendment incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC's regulations. For entities subject to the SEC's existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its financial statements.

In December 2023, the FASB issued ASU No.2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". This ASU requires additional quantitative and qualitative income tax disclosure to enable financial statements users better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted the new disclosures for the annual periods beginning on January 1, 2025.

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#### BUSINESS

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

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

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

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

For the years ended December 31, 2024 and 2025, our revenue was approximately $102.0 million and approximately $22.5 million, respectively. The revenue from EPC services accounted for approximately $102.0 million, representing 100% of the total revenue for the year ended December 31, 2024, and approximately $22.1 million, representing 98% of the total revenue for the year ended December 31, 2025, respectively. Our net income was approximately $7.5 million and approximately $4.9 million for the years ended December 31, 2024 and 2025, respectively.

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

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

#### Our Material Projects

#### Ongoing Project s
*Solar Module Manufacturing Facility Project — Mesquite, Texas*

On December 12, 2025, Bestwater entered into a contract with Canadian Solar US Module Corporation ("Canadian Solar"), in connection with the expansion of Canadian Solar's solar module manufacturing facility in Mesquite, Texas. As of the date of this prospectus, the construction for the Canadian Solar project commenced and is progressing in accordance with the expected schedule. Material terms of the Canadian Solar contract include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Scope of work*: Bestwater is responsible for furnishing all supervision, labor, materials, tools, equipment, supplies, and service as set forth in the contract. The scope includes HVAC systems, plumbing and water supply systems, electrical systems, civil and structural work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Contract type*: Fixed-price, lump-sum contract for a total contract value of approximately $11.5 million. Progress payments are made monthly. Canadian Solar procures and furnishes major equipment items while Bestwater furnishes all remaining labor, materials, and services necessary to complete the work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Project Milestones*: Under the contract terms with Canadian Solar, the substantial completion of the project is required by April 20, 2026, with the final completion by May 22, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Materiality and outlook*: We believe the Canadian Solar project represents a significant contract that, as of the date of this prospectus is under construction and is expected to contribute to our near-term operating results. As of the date of this prospectus, we believe the Canadian Solar project will enhance

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our experience in the photovoltaic manufacturing sector and expand our portfolio of projects within this industry, as well as diversify our customer base and project pipeline. There can be no assurance, however, that we will successfully complete this project on the terms anticipated or that it will generate the results we currently expect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risks and considerations*: This project is subject to risks inherent in fixed-price EPC contracts including labor availability, cost control, on-site coordination, customer-directed scope changes, and the integration of customer-furnished equipment. Any of these factors, individually or in combination, could adversely affect project execution, timing, and margins.

*Solar Module Manufacturing Facility Project — Brookshire, Texas*

On September 18, 2025, Bestwater entered into a site services agreement with Waaree Solar Americas Inc. ("Waaree"), pursuant to which, Bestwater is serving as the general contractor for the expansion of Waaree's solar module manufacturing facility located in Brookshire, Texas. As of the date of this prospectus, the project remains in the design phase. Material terms of the Waaree contract include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Scope of work*: The scope of work encompasses design and engineering services, a broad range of construction disciplines, including architectural work, roof insulation, fire protection systems, HVAC systems, mechanical systems, structural work, plumbing and electrical systems, as well as permitting support and construction management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Contract type*: This is a fixed-price, lump-sum contract for a total contract value of approximately $20 million. Payments are made milestone-based, tied to measurable progress of the work and are subject to verification by Waaree. Waaree agreed to supply certain major equipment items while Bestwater is responsible for procurement and installation of all the remaining materials across the scope. Design and permitting fees will be reimbursed by Waaree upon delivery of final approved permits and design documents for up to $690,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Materiality and outlook*: We believe the Waaree project represents a significant contract value and provides us the opportunity to act as general contractor on a large-scale solar module manufacturing facility expansion in Texas. We believe this project reflects growing customer recognition of our capabilities and supports our strategy of expanding our customer relationships within this industry. There can be no assurance, however, that we will successfully complete this project on the terms anticipated or that it will generate the results we currently expect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risks and considerations*: This project is subject to risks inherent in fixed-price EPC contracts including coordination among project participants, labor availability, cost control, customer-directed scope changes, and the timely progression of design, permitting, and construction activities. Any of these factors, individually or in combination, could adversely affect project execution, timing, and margins.

*Semiconductor Manufacturing Facility Project — Arizona*

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Scope of work*: The first Purchase Order covers cable tray installation. The project preparation began in mid-September 2025, and on-site construction activities commenced in mid-November 2025. As of the date of this prospectus, the completion of the first Purchase Order is expected to occur by the end of June 2026. Upon completion of the first Purchase Order, we are scheduled to commence work under the second and third Purchase Orders for electrical wiring for another two months on-site.

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Project Completion and Revenue Contribution*: Both projects were completed in July 2025, with revenue recognized in accordance with the cost-to-cost method under ASC 606. These contracts contributed approximately $27.8 million, or 96% of our total revenue in 2023, and approximately $19.7 million, or 19% of our total revenue for the year ended December 31, 2024. These contracts contributed approximately $2.6 million, or 11% of our total revenue for the year ended December 31, 2025.

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

*Photovoltaic Manufacturing Facility Project — Arizona*

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Progress and termination*: By April 2025, we had substantially completed our scope of work, when the client underwent a change of ownership. The new owner then exercised its contractual right to terminate the Solar Agreement for convenience in April 2025. At the time of termination, we recognized approximately $88 million in revenue from this project, of which, $79.6 million was recognized in 2024, representing approximately 78% of our total revenue for the year ended December 31, 2024. As of December 31, 2025, we recognized approximately $93.4 million in revenue from this project, of which, $13.9 million was recognized for the year ended December 31, 2025, representing approximately 62% of our total revenue for the year ended December 31, 2025.

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

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Risks and considerations*: While the project was substantially completed in accordance with schedule and performance standards, its termination highlights the risk that large clients may discontinue or alter projects for reasons unrelated to our performance, such as changes in ownership or business strategy. Because the vast majority of our work has already been performed prior to termination, we do not expect material financial losses from this contract. However, given the size of this project and its contribution to our 2025 revenue, this instance also illustrates the risks associated with revenue concentration and the potential impact on our operating results should similar terminations occur in the future. See "Risk Factor — Risks Related to Our Business and Operation — Our dependence on large construction contracts may result in uneven financial results."

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

On June 5, 2025, the Company entered into a share exchange agreement with Bestwater and its stockholders, pursuant to which the Company acquired 100% of the issued and outstanding shares of Bestwater's common stock, and in exchange, issued an aggregate of 9,700,000 shares of the Company's Common Stock (the "Share Exchange") to stockholders of Bestwater. As a result of the Share Exchange, Bestwater became a wholly owned subsidiary of the Company. The Share Exchange is recognized as a combination of entities under common control as both Bestwater and the Company have been controlled before and after the transaction by the same stockholders. As such, the financial statements and financial information contained in this filing for prior years have been retrospectively adjusted as if the Share Exchange had occurred at the beginning of the earliest period presented.

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

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

![](tflowchart_001.jpg)

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

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

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

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

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

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

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

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

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

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

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

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

*Client Engagement and Bidding*

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

*Design and Pre-Construction Planning*

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

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

*Construction and Project Execution*

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

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*Testing, Commission and Completion*

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

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

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

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

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

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

#### Our Clients
Our client relationships are typically project-based, though we often engage with the same companies for multiple facilities or expansion phases. We served seven clients in the year ended December 31, 2024, and 18 clients in the year ended December 31, 2025. The largest client in the year ended December 31, 2024, accounted for 78% of the total revenue in the year ended December 31, 2024, and the largest client in the year ended December 31, 2025, accounted for 62% of the total revenue, representing significant client concentration that creates dependency risk for our business operations. See "Risk Factor — Risks Related to Our Business and Operation — We derive a substantial portion of our revenue from a limited number of clients, and the loss of one or more of these clients could materially and adversely affect our business and results of operations." for more details.

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

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

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

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

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

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

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

Each Site Services Agreement may be terminated by us, at our discretion, at any time without cause upon written notice to the subcontractor. Upon such termination, the subcontractor is entitled only to payment for work completed through the termination date and any reasonable costs related to finishing their engagement in a compliant method. Termination upon subcontractors' default is permitted if the subcontractors materially breach a Site Services Agreement or becomes financially insolvent. Upon such termination, we may, at our option, complete the terminated work by whatever method we may deem expedient and, to the extent the costs of completing such work exceed those amounts that would have been payable to subcontractor hereunder to complete such work but for its default, subcontractor shall pay the difference to us.

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

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

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

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

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

Below is a list of our current licenses:

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| | | | | |
|:---|:---|:---|:---|:---|
|  **Licensee** | **License** | **Issuing Authority** | **States/Cities** | **Expiration Date** |
|  Jean Reyes/<br>Bestwater | General Contractor (License No. CGC1535043) | Construction Industry Licensing Board of the Department of Business and Professional Regulation (DBPR) | Florida | August 31, 2026 |
|  Bestwater | B-1 General Commercial Contractor (License No. ROC 350195) | Registrar of Contractor | Arizona | February 29, 2028 |
|  Bestwater | C-11 Electrical (License No. ROC 358830) | Registrar of Contractor | Arizona | May 31, 2027 |
|  Bestwater | General Contractor (License No. GC-030754-2026) | City of Mesquite | Mesquite, Texas | December 5, 2026 |

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

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

Quality inspections and review are conducted at all key stages of a project. The Quality Control Manager oversees calibration of all measuring and testing equipment with any sub-standard equipment being identified, documented, and withheld from further usage until fixed. The quality control system also includes document control protocols designed to help maintain the use of only current and management-approved quality documents on projects. We also conduct periodic management review and testing as part of our efforts to monitor the effectiveness of the quality control system.

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

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

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

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

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

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

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

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

---

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

---

#### Properties
Our corporate headquarters are located at 2825 Wilcrest Dr. Ste 421, Houston, TX 77042 pursuant to a lease agreement dated January 8, 2026, for a 12-month term beginning on February 1, 2026, and ending on January 31, 2027. The monthly rent is $1,501 for approximately 1,068 square feet of office space. The property is in good condition, and we believe it is sufficient for our business needs.

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

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

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

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

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

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

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

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

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

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

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

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#### INDUSTRY

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

#### Overview of Macroeconomic Environment

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

![](tbarchart_001.jpg)

*Source: The Frost & Sullivan Report*

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

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

![](tlinechart_001.jpg)

*Source: The Frost & Sullivan Report*

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

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

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

Key features:

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

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

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

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

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

Industrial construction projects include:

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

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

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

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

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

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

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

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

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

![](tflowchart_002.jpg)

*Source: The Frost & Sullivan Report*

#### Market Size of Industrial Construction in the U.S.
The U.S. industrial construction market increased from $75.4 billion in 2020 to $233.2 billion in 2024, at a CAGR of 32.6% from 2020 to 2024. This market is vital for supporting the nation's manufacturing, logistics, and infrastructure sectors. Industrial construction, encompassing large-scale warehouses, advanced data centers, and specialized manufacturing facilities, underpins the U.S.'s supply chain and economic growth. Growth is driven by increasing e-commerce demands, the need for modern manufacturing spaces, and sustainable, energy-efficient buildings with automation and cold chain capabilities for pharmaceuticals and food storage. Government initiatives promoting infrastructure expansion and domestic manufacturing further boost the demand for industrial construction in the U.S. The U.S. industrial construction market is expected to reach $460.8 billion in 2029, representing a CAGR of 14.5% from 2025 to 2029.

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As estimated, the market size of industrial construction works initiated by Chinese firms is $2.3 billion in 2024, and it is expected to reach $5.1 billion in 2029 at a CAGR of 17.2% from 2025 to 2029, driven by the industrial construction works in the U.S. initiated or funded by Chinese companies in 2025 including the Gotion battery plant in Illinois and Bitmain's planned factory in Texas or Florida.

*Source: The Frost & Sullivan Report*

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

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

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

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

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

#### End-market Analysis

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

#### Car Parts and EV Battery Industry
The U.S. car parts industry is thriving due to digital innovation, high internet penetration, and 254.8 million e-commerce users, boosting online sales of replacement parts. Consumer preferences for customization, safety, and connectivity, alongside a shift to eco-friendly materials, drive growth. The industry aligns with sustainability goals, supported by the EPA's 2023 proposal for two-thirds of new vehicle sales to be electric by 2032. The EV battery market is expanding rapidly due to demand for electric, plug-in hybrid, and hybrid vehicles, with advancements improving battery lifespan and reducing costs. Major investments in 2025, such as Ford's $5.6 billion Blue Oval City, GM's $7 Billion Orion Assembly, Hyundai's $7.4 billion Metaplant, and others, focus on EV components and battery production. Cross-border investments, particularly from foreign and Chinese firms, leverage U.S. incentives like the Inflation Reduction Act to meet rising EV demand and navigate trade barriers, positioning the U.S. as a hub for sustainable mobility.

#### Copper Tubing and Fiber Glass Industry
The U.S. copper tubing market is growing due to demand in construction, HVAC, plumbing, and industrial applications, driven by urbanization, infrastructure development, and energy-efficient building practices. The 2021 Bipartisan Infrastructure Law supports a $25 – 55 billion Lead Service Line Replacement program, replacing lead pipes with copper tubing. Projects like Hudson Yards of $25 billion investment and facilities like the Golden Dragon Copper Plant in Alabama boost domestic supply. Challenges include price volatility and competition from alternative materials. The U.S. dominates the North American market with strong growth expected.

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

Cross-border investments from Chinese and European firms, such as Golden Dragon's $100 million Alabama plant, CNBM's $40 million North Carolina facility, and Saint-Gobain's $100 million Georgia fiberglass plant, support both markets. These align with U.S. infrastructure and sustainability goals, enhancing production for HVAC, plumbing, automotive, and renewable energy applications.

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#### Semiconductor Industry
The U.S. is bolstering its role in the global semiconductor sector through targeted government policies and substantial private investments. The 2022 CHIPS and Science Act, with its $50 billion allocation, has driven nearly $450 billion in private funding across 28 states, leading to over 90 new manufacturing projects by August 2024. This positions the U.S. to triple its chip production capacity by 2032, surpassing global rivals. Major projects include TSMC's $165 billion investment in three Arizona factories, generating 6,000 high-tech jobs, and Micron's advanced memory chip facilities in New York.

The U.S. maintains a global lead in semiconductor design and R&D, with over $50 billion invested in 2023. Key efforts include the National Semiconductor Technology Center in Albany, New York, and $300 million for advanced packaging research in Georgia, California, and Arizona, focusing on AI and next-generation technologies. Global semiconductor sales reached $630.5 billion in 2024 and are expected to exceed $600 billion in 2025, driven by AI and data center demand, despite softer PC and mobile markets. The industry supports 338,000 direct and nearly 2 million indirect U.S. jobs, significantly impacting the economy. Innovations in materials like germanium and graphene, along with 3D packaging and AI-optimized chips, are advancing.

#### Water Processing Facilities Industry
The growth of U.S. water processing facilities market is attributed to regulatory pressures, technological advancements, and rising water demand from industrial and municipal sectors. Stricter EPA standards and public-private partnership laws drive investments in advanced technologies like membrane filtration, reverse osmosis, and ultraviolet disinfection. Water reuse, energy efficiency, and smart systems are key trends, fueled by rapid industrialization and population growth. Major projects include California's Pure Water San Diego with $1.5 billion investment and Pure Water Southern California with $3.4 billion investment, New York City's Newtown Creek upgrade with $2 billion investment, and Texas' Carrizo-Wilcox aquifer developments, addressing water scarcity and aging infrastructure. Industrial recycling is prominent in sectors like oil, gas, and semiconductors such as TSMC's Arizona plant. Chinese firms, such as Beijing Origin Water and Vontron Technology, indirectly support the market by supplying cost-competitive reverse osmosis membranes through partnerships and OEM agreements, influenced by the Belt and Road Initiative.

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

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

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

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

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

*Source: The Frost & Sullivan Report*

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

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

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

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

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

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

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

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#### MANAGEMENT

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

---

| | | |
|:---|:---|:---|
|  **Name** | **Age** | **Position** |
|  Yunlong Zhang | 56 | Chief Executive Officer and Director |
|  Zhimin Chen | 37 | Chief Financial Officer |
|  Robert Sliva | 66 | Chief Operating Officer and Director Nominee |
|  Yuan Shi\* | 62 | Independent Director Nominee |
|  Damon Wright\* | 48 | Independent Director Nominee |
|  Marc Distefano\* | 54 | Independent Director Nominee |

---

____________

\* These individuals have indicated their consent to the appointment of such position upon listing of our Common Stock on a national exchange.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

#### Summary Compensation Table
The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officer during the years ended December 31, 2024 and 2025 in all capacities for the accounts of our executive, including our Chief Executive Officer (CEO), and Chief Financial Officer (CFO):

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Name and principal <br>position** | **Year** | **Salary <br>($)** | **Bonus <br>($)** | **Stock <br>Awards <br>($)** | **Option <br>Awards <br>($)** | **Non-Equity <br>Incentive Plan <br>Compensation <br>($)** | **Nonqualified <br>Deferred <br>Compensation <br>Earnings <br>($)** | **All Other <br>Compensation <br>($)** | **Total <br>($)** |
|  *Yunlong Zhang* | 2025 | $156923 |  |  |  |  |  |  | $156923 |
| &nbsp;&nbsp;&nbsp; *CEO* | 2024 | $120577 |  |  |  |  |  |  | $120577 |
|  *Zhimin Chen* | 2025 | $205001 |  |  |  |  |  |  | $205001 |
| &nbsp;&nbsp;&nbsp; *CFO* | 2024 | $193141 |  |  |  |  |  |  | $193141 |

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

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

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

*Yunlong Zhang, Chief Executive Officer.* Yunlong Zhang is our founder and has served as the Chief Executive Officer since November 28, 2016. Mr. Zhang's is employed on an at-will basis and receives an annual base salary of $120,000. On March 5, 2026, we entered into an employment agreement with Mr. Zhang, which supplemented and governs his service as the CEO of the Company, in addition to his employment with Bestwater. Under the March 5, 2026 employment agreement, Mr. Zhang is eligible (i) for an annual bonus, subject to achievement of both individual and company performance targets as determined by the Board or the compensation committee of the Board (the "Compensation Committee"), and (ii) to participate in any standard employee benefit plans of the Company or Bestwater, including retirement, life insurance, health insurance, and travel plans related to the Company's business.

*Zhimin Chen, Chief Financial Officer.* Zhimin Chen has served as our Chief Financial Officer since May 2025. She initially joined the Company as the Financial Analysis Manager pursuant to an offer letter with Bestwater, dated December 28, 2018, and was subsequently promoted to Chief Financial Officer. Ms. Chen is employed on an at-will basis and receives a base salary of $210,020. On March 5, 2026, we entered into an employment agreement with Ms. Chen, which supplemented and governs her service as the CFO of the Company, in addition to her employment with Bestwater. Under the March 5, 2026 employment agreement, Ms. Chen is eligible for (i) an annual bonus, subject to achievement of both individual and company performance targets as determined by the Board or the Compensation Committee, and (ii) to participate in any standard employee benefit plans of the Company or Bestwater, including retirement, life insurance, health insurance, and travel plans related to the Company's business.

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*Robert Sliva, Chief Operating Officer.* Robert Sliva has served as our Chief Operating Officer since May 2025 pursuant to an offer letter with Bestwater, dated April 25, 2025. Mr. Sliva is employed on an at-will basis and receives an annual base salary of $153,000 and a monthly car allowance of $600. On March 5, 2026, we entered into an employment agreement with Mr. Sliva, which supplemented and governs his service as the COO of the Company, in addition to his employment with Bestwater. Under the March 5, 2026 employment agreement, Mr. Sliva is eligible for (i) an annual bonus, subject to achievement of both individual and company performance targets as determined by the Board or the Compensation Committee, and (ii) to participate in any standard employee benefit plans of the Company or Bestwater, including retirement, life insurance, health insurance, and travel plans related to the Company's business.

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

#### 2026 Stock Option Plan
Our Board of Directors approved and adopted the 2026 Equity Incentive Plan (the "Plan") on March 13, 2026. The Plan was attached hereto as Exhibit 10.4. Below is a summary of the principal provisions of the Plan which does not purport to be complete and is subject to and qualified in its entirety by such document.

The Plan provides for the grant of stock options to our employees, officers, directors, and consultants, and is administered by the Board of Directors, provided that the Board may delegate such administration to a committee consisting of no fewer than two independent members of the Board of Directors. The Plan initially provides for a total of 1,500,000 shares of Common Stock to be reserved for issuance. Proportionate adjustments will be made to the number of shares of Common Stock subject to the Plan in the event of any change in our capitalization affecting our Common Stock, such as a stock split, reverse stock split, recapitalization, or combination of the authorized, issued, and outstanding shares of Common Stock. Shares of Common Stock subject to option grants that are terminated or forfeited will again be available for issuance under the Plan. As of the date of this prospectus, we have not granted any options or other awards under the Plan.

#### Outstanding Equity Awards at Fiscal Year End
There are no outstanding unexercised options, unvested stock, or other equity incentive plan awards held by any of our named executive officers as of December 31, 2025.

#### Compensation of Directors
As of the date of this prospectus, Mr. Yunlong Zhang is our sole director. As of the date of this prospectus, we do not have a policy to pay our director for serving on our board or fees for attending scheduled and special meetings of our board of directors. Following consummation of the Offering, independent directors will be compensated $25,000 per year, payable in equal quarterly payments. Independent directors will also be compensated $5,000 per year for each committee on which they participate and an additional $5,000 per year for serving as chair of a committee.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

#### Rule 701
In general, under Rule 701 of the Securities Act as currently in effect, each of our employees, consultants, or advisors who purchases shares of our Common Stock from us in connection with a compensatory stock plan or other written agreement executed prior to the completion of this Offering is eligible to resell those shares of Common Stock in reliance on Rule 144, but without compliance with some of the restrictions, including the holding period, contained in Rule 144. However, the Rule 701 shares of Common Stock would remain subject to lock-up arrangements and would only become eligible for sale when the lock-up period expires.

#### Regulation S
Regulation S provides generally that sales made in offshore transactions are not subject to the registration or prospectus-delivery requirements of the Securities Act.

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#### UNDERWRITING
In connection with this Offering, we will enter into an underwriting agreement with Eddid Securities USA Inc. ("Eddid") as representative for the underwriters in this Offering with respect to the shares of Common Stock. The representative may retain other brokers or dealers to act as sub-agents on its behalf in connection with this Offering and may pay any sub-agent a solicitation fee with respect to any securities placed by it. Under the terms and subject to the conditions contained in the underwriting agreement, we have agreed to issue and sell to the underwriters and each of the underwriters, severally and not jointly, has agreed to purchase from us, on a firm commitment basis, the number of shares of Common Stock set forth opposite its name below, at the initial public offering price less the underwriting discounts set forth on the cover page of this prospectus:

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| | |
|:---|:---|
|  **Underwriter** | **Number of <br>Shares** |
|  Eddid Securities USA Inc. | 2625000 |
|  **Total** | **2625000** |

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Upon the declaration of effectiveness of the registration statement of which this prospectus forms a part, we will enter into an underwriting agreement with the representative. The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the shares of Common stock offered by this prospectus are subject to the approval of certain legal matters by their counsel and to other conditions. The underwriters are committed to purchase all of the shares of Common Stock offered by this prospectus and subject to prior sale other than those covered by the over-allotment option to purchase additional securities described below, if they purchase any such securities.

The obligations of the underwriters may be terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, pursuant to the underwriting agreement, the underwriters' obligations are subject to the absence of any material adverse change in our business or in the financial markets, customary conditions, representations, and warranties contained in the underwriting agreement, such as receipt by the underwriters of officers' certificates and legal opinions, and comfort letters from us, our legal counsels, and our independent auditors. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

We have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act of 1933, as amended, and to contribute to payments the underwriters may be required to make in respect thereof.

The underwriters will offer the shares of Common Stock to the public at the initial public offering price set forth on the cover of this prospectus and to selected dealers at the initial public offering price less a selling concession not in excess of $[•] per share of Common Stock. After this Offering, the initial public offering price, concession, and reallowance to dealers may be reduced by the representative. No such reduction will change the amount of proceeds to be received by us as set forth on the cover of this prospectus. The securities are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

#### Over-allotment Option
We have granted the underwriters an option, exercisable in whole or in part, from time to time, for up to 45 days after the closing date of this Offering, permits the underwriters to purchase a maximum of 393,750 additional shares of Common Stock (equal to 15% of the shares of Common Stock sold in this initial public offering) from us at a price per share equal to the public offering price per share less the underwriting discounts set forth on the cover of this prospectus to cover over-allotments, if any. We will be obligated, pursuant to the option, to sell these additional shares of Common Stock to the underwriters to the extent the over-allotment option is exercised.

#### Discounts and Expenses
We have agreed to pay the underwriters a cash fee discount for the Common Stock to be sold in this Offering equal to six percent (6.00%) of the aggregate gross proceeds received by the Company in the Offering.

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The underwriters have advised us that they propose to offer shares of Common Stock to the public at the public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession. After this Offering, the initial public offering price, concession, and reallowance to dealers may be reduced by the underwriters. No change in those terms will change the amount of proceeds to be received by us as set forth on the cover of this prospectus. The securities are offered by the underwriter as stated herein, subject to its receipt and acceptance and subject to its right to reject any order in whole or in part.

The following table shows the assumed public offering price per share and total assumed public offering price, underwriting discount, and proceeds, before expenses, to us. The information assumes either no exercise or full exercise by the underwriters of their over-allotment option. Because the actual amount to be raised in this Offering is uncertain, the actual total underwriting discounts are not presently determinable and may be substantially less than the maximum amount set forth below.

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| | | | |
|:---|:---|:---|:---|
|  | **Per share**  | **Total Without <br>Exercise of <br>Over-Allotment <br>Option** | **Total With <br>Exercise of <br>Over Allotment <br>Option** |
|  Assumed Initial public offering price | $6.50 | $17062500 | $19621875.00 |
|  Underwriting discounts to be paid by us (6.0%)<sup>(1)</sup> | $0.39 | $1023750 | $1177312.50 |
|  Proceeds to the Company, before expenses | $6.11 | $16038750 | $18444562.50 |

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____________

(1) We have agreed to pay the underwriting discounts equal to six percent (6%) of the gross proceeds of this Offering, at the closing of this Offering, and each closing of the over-allotment option, if any. The fees do not include (i) a non-accountable expense allowance equal to one percent (1%) of the gross proceeds (excluding any proceeds from the exercise of the over-allotment option from this Offering, and (ii) the reimbursement of certain expenses of the underwriters.

We have also agreed to pay the underwriters by deduction from the gross proceeds of the Offering contemplated herein a non-accountable expense allowance equal to one percent (1%) of the aggregate gross proceeds received by us from the sale of the shares of Common Stock from this Offering, including the proceeds from any over-allotment option exercised by the representative, if any.

In addition, we have agreed to pay all reasonable, necessary, accountable and documented out-of-pocket expenses relating to the underwriters performance pursuant to the Offering and including, without limitation: expenses for travel, due diligence expenses, reasonable fees and expenses of underwriters' legal counsel, expenses for any roadshow and background checks on the Company's principals. We estimate such expenses payable by us in connection with this Offering, excluding the underwriting discounts and non-accountable expenses referred to above, will be no greater than $250,000, the maximum aggregate reimbursement amount of the underwriters' accountable expenses.

We estimate that the total expenses of the Offering payable by us, excluding underwriting discounts and non-accountable expense allowance, will be approximately $1.15 million.

#### Listing
We intend to apply to have our Common Stock listed on NYSE American under the symbol "BWGC." No assurance can be given that our listing will be approved by NYSE American or that a trading market will develop for our Common Stock. We will not proceed with this Offering in the event the Common Stock is not approved for listing on NYSE American.

#### Lock-Up Agreements
Pursuant to certain "lock-up" agreements, our executive officers, directors and existing stockholders owning 5% or more of our Common Stock and or holders of securities exercisable for or convertible into our Common Stock outstanding immediately upon the closing of this Offering equal to 5% or more of our capital stock upon closing, have agreed, subject to certain exceptions, not to offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any Common Stock or securities convertible into or exchangeable or exercisable for any Common Stock, whether currently owned or subsequently acquired, without the prior written consent of the underwriters, for a period of six (6) months following the closing of this Offering.

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In addition, we have agreed, subject to certain exceptions, not to offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any Common Stock or securities convertible into or exchangeable or exercisable for any Common Stock, whether currently owned or subsequently acquired, without the prior written consent of the underwriters, for a period of six (6) months following the closing of this Offering.

#### Right of First Refusal
We have agreed to grant the representative, for the period commencing to the closing of this Offering and concluding twelve (12) months thereafter, a right of first refusal exercisable at the representative's sole discretion to act as lead or managing underwriter, exclusive placement agent, exclusive financial advisor or in any other similar capacity, for any and all future registered, underwritten public offering of securities, and private placement of securities, for which the Company or any of the subsidiaries retains the service of an investment bank or similar financial advisor in connection with such offering during such twelve (12) month period of the Company. We have agreed not to offer to retain any entity or person in connection with any such offering on terms more favorable than terms on which we offer to retain the Representative. Such offer shall be made in writing in order to be effective. The Representative shall notify us within five (5) business days of its receipt of the written offer contemplated above as to whether or not it agrees to accept such retention. If the Representative should decline such retention, we shall have no further obligations to the Representative with respect to the offering of securities.

#### Fee Tail Period
For a period of twelve (12) months from the earlier to occur of the expiration or termination of our engagement with the representative or the closing of the Offering, if we receive any proceeds from the sale of our securities to certain investors with whom were introduced to us by the representative during the Offering, we have agreed to pay to the representative a cash fee equal to six percent (6%) of such gross proceeds.

#### Electronic Offer, Sale, and Distribution of Shares
A prospectus in electronic format may be made available on the websites maintained by the underwriters, if any, participating in this Offering and the underwriters participating in this Offering may distribute prospectuses electronically. The underwriters may agree to allocate a number of shares of Common Stock for sale to its online brokerage account holders. Internet distributions will be allocated by the underwriters that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on these websites is not part of, nor incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us or the underwriters in their capacity as underwriters, and should not be relied upon by investors.

#### Other Relationships
The underwriter and its affiliates may, in the future provide various investment banking, commercial banking and other financial services for our company and its affiliates for which they have received, and may in the future receive, customary fees. However, except as disclosed in this prospectus, our Company has no present arrangements with the underwriter for any further services.

#### Offering Price Determination
There is no established market for our Common Stock. The public offering price of the securities we are offering will be negotiated between us and Eddid. Factors considered in determining the public offering price of the shares of Common Stock include the history and prospects of our company, the stage of development of our business, our business plans for the future and the extent to which they have been implemented, an assessment of our management, general conditions of the securities markets at the time of the Offering and such other factors as are deemed relevant.

Using the above valuation factors and the number of shares of Common Stock outstanding, we set a price range between $7.0 and $9.0 per share of our Common Stock.

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An active trading market for our Common Stock may not develop. It is possible that after this Offering our Common Stock will not trade in the public market at or above the initial offering price.

#### Price Stabilization, Short Positions, and Penalty Bids

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions permit bids to purchase Common Stock so long as the stabilizing bids do not exceed a specified maximum and are engaged in for the purpose of preventing or retarding a decline in the market price of the Common Stock while the Offering is in progress.

The underwriters may also sell shares of Common Stock in excess of the option to purchase additional shares of Common Stock, creating a naked short position. The underwriters must close out any naked short position by purchasing shares of Common Stock in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the Common Stock in the open market after pricing that could adversely affect investors who purchase in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Specifically, the underwriters may sell more shares of Common Stock than they are obligated to purchase under the underwriting agreement, creating a short position. A short sale is covered if the short position is no greater than the number of shares of Common Stock available for purchase by the underwriters under option to purchase additional shares of Common Stock. The underwriters can close out a covered short sale by exercising the option to purchase additional shares of Common Stock or purchasing shares of Common Stock in the open market. In determining the source of the shares of Common Stock to close out a covered short sale, the underwriters will consider, among other things, the open market price of the shares of Common Stock compared to the price available under the option to purchase additional shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Penalty bids permits the underwriters to reclaim a selling concession from a syndicate member when the shares of Common Stock originally sold by that syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of the shares of Common Stock or preventing or retarding a decline in the market price of its shares of Common Stock. As a result, the price of the Common Stock in the open market may be higher than it would otherwise be in the absence of these transactions. Neither our Company nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the price of our company's Common Stock. These transactions may be effected on NYSE American, or otherwise and, if commenced, may be discontinued at any time.

#### Passive Market Making
In connection with this Offering, the underwriters may engage in passive market making transactions in our company's Common Stock on NYSE American in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares of Common Stock and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, then that bid must then be lowered when specified purchase limits are exceeded.

#### Potential Conflicts of Interest
The underwriters and their affiliates may, from time to time, engage in transactions with and perform services for us in the ordinary course of their business for which they may receive customary fees and reimbursement of expenses. In the ordinary course of their various business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own accounts and for the accounts of their customers and such

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investment and securities activities may involve securities and/or instruments of our Company. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

#### Other Relationships
The underwriters and certain of their affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing, and brokerage activities. Some of the underwriters and certain of their affiliates may in the future engage in investment banking and other commercial dealings in the ordinary course of business with us and our affiliates, for which they may in the future receive customary fees, commissions, and expenses.

In addition, in the ordinary course of their business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers. Such investments and securities activities may involve securities and/or instruments of ours or our affiliates. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients that they acquire, long, and/or short positions in such securities and instruments.

#### Stamp Taxes
If you purchase our shares of Common Stock offered in this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the offering price listed on the cover page of this prospectus.

#### Selling Restrictions
No action has been taken in any jurisdiction (except in the United States) that would permit a public offering of our Common Stock, or the possession, circulation or distribution of this prospectus or any other material relating to us or our Common Stock, where action for that purpose is required. Accordingly, our Common Stock may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material or advertisements in connection with our Common Stock may be distributed or published, in or from any country or jurisdiction except in compliance with any applicable rules and regulations of any such country or jurisdiction.

In addition to the Offering of the shares of Common Stock in the United States, the underwriters may, subject to applicable foreign laws, also offer the shares of Common Stock in certain countries.

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#### CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
We have not entered into any transaction during the last three fiscal years with any director, executive officer, director nominee, 5% or more stockholder, nor have we entered into transaction with any member of the immediate families of the foregoing person (including spouse, parents, children, siblings, and in-laws) or is any such transaction proposed, except as follows:

These related parties of the Company with whom transactions are reported in these financial statements are as follows:

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| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to Us** |
|  Mr. Yunlong Zhang | CEO, Controlling Stockholder and Director of the Company |
|  Shenzhen Best-Water S&T Co. Ltd. ("SZBW") | CEO of SZBW is the same as the Company's CEO and SZBW is wholly owned by the Company's CEO |

---

In the ordinary course of business, during the years ended December 31, 2023, 2024, and 2025, the Company was involved in certain transactions, either at cost or current market prices, and on normal commercial terms with related parties. The following table provides the transactions with these parties for the years as presented (for the portion of such period that they were considered related):

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2023** | **As of<br> December 31,<br> 2024** | **As of <br>December 31, <br>2025** |
|  | **US$** | **US$** | **US$** |
|  **Amount due from a related party** |  |  |  |
|  ***<u>Name of related party</u>*** |  |  |  |
|  Mr. Yunlong Zhang | 2213677 |  |  |
|  | 2213677 |  |  |

---

In 2023, the Company entered into a loan agreement in a principal amount not to exceed $3,000,000 with a related party, the director of the Company, which carries no interest with a maturity date of December 31, 2025. During 2023, the Company lent $3,544,021 to Mr. Yunlong Zhang and received repayments of $1,330,344, resulting in a net loan of $2,213,677 outstanding. During 2024, the Company lent $2,355,506 and received repayments of $2,266,117, resulting in a net loan of $89,389. The outstanding loan balance of $2,303,066 was settled by the special dividend on December 31, 2024.

The Company lent $334,000 to Mr. Yunlong Zhang and received repayments of $312,000, resulting in a net loan of $22,000 during the first half of the year 2025. The outstanding loan balance of $22,000 was settled by the dividend on June 1, 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br> December 31,<br> 2023** | **As of<br> December 31,<br> 2024** | **As of <br>December 31, <br>2025** |
|  | **US$** | **US$** | **US$** |
|  **Prepayment to a related party** |  |  |  |
|  ***<u>Name of related party</u>*** |  |  |  |
|  SZBW | 90000 | 525000 | 625000 |
|  | 90000 | 525000 | 625000 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2023** | **For the <br>year ended <br>December 31, <br>2024** | **For the <br>year ended <br>December 31, <br>2025** |
|  | **US$** | **US$** | **US$** |
|  **Construction consultancy service fee and equipment fee** |  |  |  |
|  ***<u>Name of related party</u>*** |  |  |  |
|  SZBW | 283753 | 108500 |  |
|  | 283753 | 108500 |  |

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#### Stock Compensation of An Immediate Family Member of An Executive Officer
Zhou Ye serves as the Investor Relations Officer of Bestwater and is the spouse of Zhimin Chen, our Chief Financial Officer. Mr. Zhou received 500 shares of common stock of Bestwater on March 21, 2025, in consideration for services rendered. Pursuant to the Share Exchange Agreement, he received 500,000 shares of Common Stock on June 5, 2025.

#### Review, Approval, and Ratification of Related Party Transactions
Prior to completion of this Offering, we intend to adopt formal written procedures for the review, approval, or ratification of transactions with related persons, or the Related Persons Transaction Policy. The Related Persons Transaction Policy will provide that the audit committee of our board of directors will be charged with reviewing for approval or ratification all transactions with "related persons" (as defined in paragraph (a) of Item 404 of Regulation S-K) that are brought to the audit committee's attention. We also maintain certain compensation agreements and other arrangements with certain of our executive officers, which are described under "Executive Compensation" elsewhere in this prospectus.

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#### DESCRIPTION OF SECURITIES

#### General
Our Certificate of Incorporation authorizes the issuance of shares of capital stock, each with a par value of $0.0001, consisting of (a) 200,000,000 shares of Common Stock and (b) 1,000,000 shares of preferred stock. As of the date of this prospectus, there are 19,400,000 shares of Common Stock issued and outstanding. We have not issued any shares of preferred stock.

#### Common Stock
Each outstanding share of Common Stock entitles the holder thereof to one vote per share on matters submitted to a vote of stockholders. Stockholders do not have preemptive rights to purchase shares of Common Stock in any future issuance of our Common Stock.

The holders of shares of our Common Stock are entitled to dividends out of funds legally available when and as declared by our board of directors. Our board of directors has never declared a dividend. Should we decide in the future to pay dividends, it will be at the discretion of the Board of Directors and will be dependent upon then existing conditions, including our financial condition and results of operations, capital requirements, contractual restrictions, business prospects, and other factors that the Board of Directors considers relevant. Each share shall be entitled to the same dividend. In the event of our liquidation, dissolution or winding up, holders of our Common Stock are entitled to receive, ratably, the net assets available to stockholders after payment of all creditors.

All of the issued and outstanding shares of our Common Stock are duly authorized, validly issued, fully paid and non-assessable. To the extent that additional shares of our Common Stock are issued, the relative interests of existing stockholders will be diluted.

#### Voting Rights
Each share of our Common Stock entitles its holder to one vote per share on all matters to be voted upon by the stockholders. There is no cumulative voting, which means that a holder or group of holders of more than 50% of the shares of our Common Stock can elect all of our directors.

#### Dividend Rights
The holders of our Common Stock are entitled to receive, and will share ratably in, dividends when and as declared by our board of directors from legally available sources, subject to the prior rights of the holders of our preferred stock, if any. See "Dividend Policy."

#### Preemptive or Similar Rights
Our Common Stock is not entitled to preemptive rights.

#### Liquidation Rights
Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our Common Stock and any participating preferred stock outstanding at that time after payment of liquidation preferences, if any, on any outstanding shares of preferred stock and payment of claims of creditors.

#### Conversion or Redemption Rights
Our Common Stock will be neither convertible nor redeemable.

#### Preferred Stock
Our Certificate of Incorporation authorizes 10,000,000 shares of preferred stock. Under our Certificate of Incorporation, our Board is authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series and to fix the designation, powers, preferences, and rights of the shares of each series and any associated qualifications, limitations

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or restrictions. The Board is also able to increase or decrease the number of shares of any series, but not below the number of shares of that series then outstanding, without any further vote or action by our stockholders. The Board has the power to authorize the issuance of shares of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of shares of Common Stock. The issuance of shares of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of the Company and may adversely affect the market price of our Common Stock and the voting and other rights of the holders of shares of Common Stock. Although there is currently no intention to issue any shares of preferred stock, there cannot be any assurance that preferred stock will not be issued in the future.

#### Anti-Takeover Provisions
The provisions of the DGCL, our Certificate of Incorporation, and our Bylaws could have the effect of delaying, deferring, or discouraging another person from acquiring control of our Company. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids, and encourage persons seeking to acquire control of our Company to first negotiate with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

#### Stockholder Meetings
Our Certificate of Incorporation provides that a special meeting of the stockholders may be called only by the majority of the total number of authorized directors whether or not there exists any vacancies in previously authorized directorships, the chair of the Board, the president, or our Chief Executive Officer.

Subject to the terms of any series of Preferred Stock, any action required or permitted to be taken at any annual or special meeting of stockholders of the Company may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of the then-outstanding shares of stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Company in the manner provided by applicable law.

#### Stockholder Action by Written Consent
Our Certificate of Incorporation provides that any action to be taken at any annual or special meeting of stockholders of a corporation may be taken by written consent of the holders of outstanding stock having not less than the minimum number of votes that would be necessary to take that action at a meeting at which all stockholders entitled to vote were present and voted.

#### Board of Directors
Our Certificate of Incorporation provides that the number of directors constituting the entire board of directors shall be fixed only by resolution of the Board, subject to the rights of holders of preferred stock, if any. Our Board currently consists of one director. Upon effectiveness of this registration statement of which this prospectus forms a part, our Board will consist of five directors, comprised of two executive directors and three independent directors.

Our Board is not classified. The directors will constitute a single class and are elected annually for one-year terms. Stockholders are not permitted to cumulate votes in the election of directors.

Directors are elected at each annual meeting of stockholders to hold office until the expiration of the term for which they are elected and until their successors have been duly elected and qualified or until their earlier resignation or removal. Newly created directorships resulting from any increase in the number of directors and any vacancies on the Board may be filled only by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum, or by a sole remaining director, and not by the stockholders. Directors elected to fill vacancies or newly created directorships hold office until the next annual meeting and until their successors are duly elected and qualified, or until their earlier death, resignation, or removal.

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Our Certificate of Incorporation provides that, members of the Board may be removed from office only for cause, and requires the approval by the affirmative vote of holders of at least a majority in voting power of the outstanding shares of capital stock of the Company entitled to vote in the election of directors to remove directors from the Company.

#### Director Vacancies
Directors are elected at each annual meeting of stockholders to hold office until the expiration of the term for which they are elected and until their successors have been duly elected and qualified or until their earlier resignation or removal. Our Certificate of Incorporation and Bylaws authorize the Board to fill newly created directorships resulting from any increase in the number of directors, or from death, resignation, disqualification, removal, or other cause. In addition, the number of directors constituting the Board will be set only by resolution adopted by a majority vote of the Board. These provisions will prevent a stockholder from increasing the Board and gaining control of the Board by filling the resulting vacancies with its own nominees.

#### Section 203 of the DGCL
As per our Certificate of Incorporation, we are not subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. As per our Certificate of Incorporation, the Company shall not engage in any business combination (as defined in the amended and restated certificate of incorporation), at any point in time at which the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, with any interested stockholder (as defined Certificate of Incorporation) for a period of three (3) years following the time that such stockholder became an interested stockholder, except under certain circumstances, such as if the board of directors approved the transaction before the stockholder became an interested stockholder, if at least 66 and 2/3 of the Company's outstanding voting stock voted in favor (not by written consent) of the combination or if the stockholder, at the time it consummated the transaction pursuant to which it became an interested stockholder, owned at least 85% of the Company's voting stock (not including stock held by officers, directors or employee stock plans).

The Certificate of Incorporation includes the definition of the terms used in this section, including that an interested stockholder is any person (other than the Company and any direct or indirect majority-owned subsidiary of the Company) that (i) is the owner of 15% or more of the outstanding voting stock of the Company, or (ii) is an affiliate or associate of the Company and was the owner of 15% or more of the outstanding voting stock of the Company at any time within the 3-year period immediately prior to the date on which it is sought to be determined whether such person is an interested stockholder, and the affiliates and associates of such person; provided, however, that the term "interested stockholder" shall not include any person whose ownership of shares in excess of the 15% limitation set forth herein is the result of action taken solely by the Company; provided that such person shall be an interested stockholder if thereafter such person acquires additional shares of voting stock of the Company, except as a result of further corporate action not caused, directly or indirectly, by such person. For the purpose of determining whether a person is an interested stockholder, the voting stock of the Company deemed to be outstanding shall include stock deemed to be owned by the person through application of the definition of "owner" included in the Certificate of Incorporation, but shall not include any other unissued stock of such Company which may be issuable pursuant to any agreement, arrangement or understanding, or upon exercise of conversion rights, warrants or options, or otherwise.

#### Limitations on Liability and Indemnification of Officers and Directors
The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors' fiduciary duties, subject to certain exceptions. Our By-Laws provide that we must indemnify and may advance expenses to directors and officers to the fullest extent authorized by the DGCL. We are also expressly authorized to carry directors' and officers' liability insurance providing indemnification for directors, officers, and certain employees for some liabilities. We believe that these indemnification and advancement provisions and insurance are useful to attract and retain qualified directors and executive officers.

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The limitation of liability, indemnification and advancement provisions in the By-Laws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions, liability insurance and any indemnity agreements that may be entered into are necessary to attract and retain talented and experienced directors and officers.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

There is currently no pending material litigation or proceeding involving our respective directors, officers or employees for which indemnification is sought.

#### Transfer Agent
The transfer agent for our Common Stock is VStock Transfer LLC, located at Woodmere, NY, Utah. Their mailing address 18 Lafayette Place, Woodmere, NY 11598. Their phone number is (212) 828-8436.

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#### LEGAL MATTERS
Certain legal matters with respect to the shares of Common Stock offered hereby will be passed upon for us by Hunter Taubman Fischer & Li LLC, 950 Third Avenue, 19<sup>th</sup> Floor, New York, NY 10022. Ortoli Rosenstadt LLP is acting as counsel to the underwriter in connection with this Offering.

#### EXPERTS
The audited consolidated financial statements of the Company as of December 31, 2024 and 2025 and the related consolidated statements of operations, changes in stockholders' equity and cash flows for the years then ended, and the related notes appearing in this registration statement, have been audited by Marcum Asia CPAs LLP, an independent registered public accounting firm, as set forth in their report thereon.

#### DISCLOSURE OF COMMISSION POSITION ON<br>INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by us of expenses incurred or paid by one of our directors, officers or controlling persons in the successful defense of any action, suit or proceeding) is asserted by that director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether that indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of that issue.

#### WHERE YOU CAN FIND ADDITIONAL INFORMATION
We will file with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of Common Stock offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement, some of which is contained in exhibits to the registration statement as permitted by the rules and regulations of the SEC. For further information with respect to us and our Common Stock, we refer you to the registration statement to be filed, including the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the contents of any contract or any other document is not necessarily complete. If a contract or document will be filed as an exhibit to the registration statement, please see the copy of the contract or document that will be filed. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The SEC maintains a website that contains reports and other information regarding registrants that file electronically with the SEC. The address of the SEC's website is *http://www.sec.gov*.

Upon the completion of this Offering, we will be subject to the information reporting requirements of the Exchange Act, and we will file reports, proxy statements, and other information with the SEC. These reports, proxy statements, and other information will be available on the website of the SEC referred to above. We also maintain a website at *http*://*www.bw*-industrial*.com*, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Information contained on, or that can be accessed through, our website is not incorporated by reference in this prospectus, and you should not consider information on our website to be part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only.

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#### INDEX TO FINANCIAL INFORMATION STATEMENTS

#### BW Industrial Holdings Inc.<br> CONSOLIDATED FINANCIAL STATEMENTS

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
|  [Report of Independent Registered Public Accounting Firm](#T500) | F-2 |
|  [Consolidated Balance Sheets as of December 31, 2024 and 2025](#T501) | F-3 |
|  [Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024 and 2025](#T502) | F-4 |
|  [Consolidated Statements of Changes in Stockholders' Equity for the Years Ended December 31, 2024 and 2025](#T503) | F-5 |
|  [Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2025](#T504) | F-6 |
|  [Notes to Consolidated Financial Statements](#T505) | F-7 |

---

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#### R EPORT OF I NDEPENDENT R EGISTERED P UBLIC A CCOUNTING F IRM
To the Shareholders and Board of Directors of <br>BW Industrial Holdings Inc.

#### Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of BW Industrial Holdings Inc. (the "Company") as of December 31, 2024 and 2025, the related consolidated statements of operations, changes in stockholders' equity and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2025, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provides a reasonable basis for our opinion.

/s/ Marcum Asia CPAs LLP

Marcum Asia CPAs LLP

We have served as the Company's auditor since 2025.

New York, New York<br>March 16, 2026

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#### BW Industrial Holdings Inc.<br>CONSOLIDATED BALANCE SHEETS<br>(Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024<br>(As revised)** | **As of <br>December 31, <br>2025** |
|  | **US$** | **US$** |
|  **Assets** |  |  |
|  **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalent | 9443799 | 6061163 |
| &nbsp;&nbsp;&nbsp; Bank deposit |  | 1010739 |
| &nbsp;&nbsp;&nbsp; Accounts receivables, net | 970500 | 1030714 |
| &nbsp;&nbsp;&nbsp; Contract assets | 12665217 | 13743942 |
| &nbsp;&nbsp;&nbsp; Amount due from related parties | 525000 | 625000 |
| &nbsp;&nbsp;&nbsp; Deferred initial public offering ("IPO") costs |  | 430000 |
| &nbsp;&nbsp;&nbsp; Prepayment and other current assets | 436616 | 82460 |
|  **Total current assets** | 24041132 | 22984018 |
|  **Non-current assets** |  |  |
|  Equipment, net | 81860 | 62057 |
|  Operating lease right-of-use assets | 16888 | 18629 |
|  Deferred income tax, net\*\* | 99189 | 247258 |
|  Other non-current assets | 1500 | 1500 |
|  **Total non-current assets\*\*** | 199437 | 329444 |
|  **Total assets\*\*** | **24240569** | **23313462** |
|  **Liabilities and stockholders' equity** |  |  |
|  **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payables | 10605026 | 2181280 |
| &nbsp;&nbsp;&nbsp; Contract liabilities | 743012 | 3902213 |
| &nbsp;&nbsp;&nbsp; Income tax payable\*\* | 2489544 | 2454223 |
| &nbsp;&nbsp;&nbsp; Accrued expense and other current liabilities\*\* | 256213 | 437877 |
|  **Total current liabilities\*\*** | 14093795 | 8975593 |
|  **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp; Other non-current liabilities | 1477 |  |
|  **Total non-current liabilities** | 1477 |  |
|  **Total liabilities\*\*** | **14095272** | **8975593** |
|  **Commitments and contingencies** |  |  |
|  **Stockholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp; Common stock, par value US$0.0001, 200,000,000 shares authorized; 18,400,000 shares and 19,400,000 shares issued and outstanding as of December 31, 2024, and December 31, 2025, respectively\* | 1840 | 1940 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital\* | 439896 | 1736415 |
| &nbsp;&nbsp;&nbsp; Retained Earnings\*\* | 9703561 | 12599514 |
|  **Total stockholders' equity\*\*** | **10145297** | **14337869** |
|  **Total liabilities and stockholders' equity\*\*** | **24240569** | **23313462** |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

\*\* Certain prior-year amounts have been revised. See Note 2 to the consolidated financial statements for further information.

The accompanying notes are an integral part of these consolidated financial statements.

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

#### BW Industrial Holdings Inc.<br>CONSOLIDATED STATEMENTS OF OPERATIONS<br>(Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | |
|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2024<br>(As revised)** | **For the <br>year ended <br>December 31, <br>2025** |
|  | **US$** | **US$** |
|  **Revenue** | 102048355 | 22462991 |
|  Cost of revenues | (88920480) | (11525611) |
|  **Gross profit** | **13127875** | **10937380** |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative expenses\*\* | (3399971) | (4960551) |
|  **Total operating expenses\*\*** | (3399971) | (4960551) |
|  **Income from operations\*\*** | **9727904** | **5976829** |
|  **Other income** |  |  |
|  Interest income, net | 105115 | 93906 |
|  Other income, net |  | 338507 |
|  **Total other income** | **105115** | **432413** |
|  **Income before income tax expense\*\*** | **9833019** | **6409242** |
|  Income tax expense\*\* | (2290112) | (1515089) |
|  **Net income\*\*** | **7542907** | **4894153** |
|  **Earnings per share** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted\*,\*\* | 0.41 | 0.26 |
|  **Weighted average shares outstanding** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted\* | 18400000 | 19183562 |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

\*\* Certain prior-year amounts have been revised. See Note 2 to the consolidated financial statements for further information.

The accompanying notes are an integral part of these consolidated financial statements.

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

#### BW Industrial Holdings Inc.<br>CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY<br> (Expressed in U.S. dollars ("US$"), except for the number of shares)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **<br>Common stock** | **<br>Common stock** | **Additional <br>Paid-in <br>Capital\*** | **Retained <br>Earnings\*\*** | **Total <br>Stockholders' <br>Equity** |
|  | **Share\*** | **Amount\*** | **Additional <br>Paid-in <br>Capital\*** | **Retained <br>Earnings\*\*** | **Total <br>Stockholders' <br>Equity** |
|  |  | **US$** | **US$** | **US$** | **US$** |
|  **Balance, December 31, 2023 (As revised)** | **18400000** | **1840** | **439896** | **4463720** | **4905456** |
|  Dividends declared to the stockholder |  |  |  | (2303066) | (2303066) |
|  Net income (As revised) |  |  |  | 7542907 | 7542907 |
|  **Balance, December 31, 2024 (As revised)** | **18400000** | **1840** | **439896** | **9703561** | **10145297** |
|  Issuance of common stock under share-based compensation plan | 1000000 | 100 | 1296519 |  | 1296619 |
|  Dividends declared to the stockholders |  |  |  | (1998200) | (1998200) |
|  Net income |  |  |  | 4894153 | 4894153 |
|  **Balance, December 31, 2025** | **19400000** | **1940** | **1736415** | **12599514** | **14337869** |

---

____________

\* Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025.

\*\* Certain prior-year amounts have been revised. See Note 2 to the consolidated financial statements for further information.

The accompanying notes are an integral part of these consolidated financial statements.

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

#### BW Industrial Holdings Inc.<br>CONSOLIDATED STATEMENTS OF CASH FLOWS<br> (Expressed in U.S. dollars ("US$"))

---

| | | |
|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2024<br>(As revised)** | **For the <br>year ended <br>December 31, <br>2025** |
|  | **US$** | **US$** |
|  **Cash flows from operating activities** |  |  |
|  Net income\* | 7542907 | 4894153 |
| &nbsp;&nbsp;&nbsp; Adjustment to reconcile net income to net cash generated from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation of equipment | 17158 | 19803 |
| &nbsp;&nbsp;&nbsp; Amortization of right-of-use assets | 15589 | 15589 |
| &nbsp;&nbsp;&nbsp; Deferred income tax\* | (59857) | (148069) |
| &nbsp;&nbsp;&nbsp; Share-based compensation expense |  | 1296619 |
| &nbsp;&nbsp;&nbsp; Gain on extinguishment of accounts payable |  | (3743713) |
|  Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Accounts receivables, net | (887213) | (60214) |
| &nbsp;&nbsp;&nbsp; Contract assets | (10198687) | (1078725) |
| &nbsp;&nbsp;&nbsp; Amount due from related party | (435000) | (100000) |
| &nbsp;&nbsp;&nbsp; Prepayment and other current assets | (344445) | 354156 |
| &nbsp;&nbsp;&nbsp; Accounts payables | 3588779 | (4680033) |
| &nbsp;&nbsp;&nbsp; Contract liabilities | 428012 | 3159201 |
| &nbsp;&nbsp;&nbsp; Income tax payables\* | 1054767 | (35321) |
| &nbsp;&nbsp;&nbsp; Accrued expense and other current liabilities\* | (664580) | 164334 |
| &nbsp;&nbsp;&nbsp; Other non-current liabilities | 1477 | (1477) |
|  **Net cash provided by operating activities** | 58907 | 56303 |
|  **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Purchase of bank deposit |  | (1010739) |
| &nbsp;&nbsp;&nbsp; Purchase of equipment | (99018) |  |
|  **Net cash used in investing activities** | (99018) | (1010739) |
|  **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Payment of deferred initial public offering costs |  | (430000) |
| &nbsp;&nbsp;&nbsp; Paid for dividend |  | (1976200) |
| &nbsp;&nbsp;&nbsp; Borrowings to related party | (2355506) | (334000) |
| &nbsp;&nbsp;&nbsp; Repayment made by related party | 2266117 | 312000 |
|  **Net cash used in financing activities** | (89389) | (2428200) |
|  **Net change in cash and cash equivalent** | (129500) | (3382636) |
|  **Cash and cash equivalent at the beginning of the year** | 9573299 | 9443799 |
|  **Cash and cash equivalent at the end of the year** | 9443799 | 6061163 |
|  **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:** |  |  |
|  Cash paid for: |  |  |
|  Income taxes | 1295202 | 1698479 |
|  **NON-CASH OPERATING AND FINANCING ACTIVITIES:** |  |  |
|  Operating lease right-of-use assets | 32477 | 17330 |
|  Non-cash dividend settlement | 2303066 | 22000 |

---

____________

\* Certain prior-year amounts have been revised. See Note 2 to the consolidated financial statements for further information.

The accompanying notes are an integral part of these consolidated financial statements.

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

#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 1 — NATURE OF BUSINESS AND ORGANIZATION
BESTWATER USA INC. (the "Subsidiary") was incorporated in the state of Texas, U.S.A on November 21, 2016. The Subsidiary authorized 10,000 shares of common stock and initially issued 6,800 shares of common stock, par value US$0.01 each.

BW Industrial Holdings Inc. (the "Holding Company") was incorporated in Delaware on April 28, 2025, and is headquartered in Houston. The Holding Company initially authorized 100,000,000 shares of common stock, par value US$0.0001 each. Subsequently on June 5, 2025, the Holding Company issued an aggregate of 9,700,000 shares of common stock and the Subsidiary completed a share exchange for that the stockholders of the Subsidiary became stockholders of the Holding Company with the same shareholding percentage and the Holding Company became the sole stockholder of the Subsidiary. On December 19, 2025, the Holding Company increased the number of authorized shares of common stock from 100,000,000 shares to 200,000,000 shares, authorized 10,000,000 shares of preferred stock, par value US$0.0001 each and effected a one-for-two forward split of all issued and outstanding shares of 9,700,000 shares of common stock. As a result of the forward split, the Holding Company have 19,400,000 shares of common stock issued and outstanding as of the date hereof.

BW Industrial Holdings Inc. and its subsidiary (the "Company") engages in providing engineering, procurement, and construction ("EPC") services for critical process systems across multiple industrial sectors. The Company serves clients in energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

*<u>*<u>Reorganization</u>*</u>*

The reorganization was accounted for as a transaction between entities under common control in accordance with ASC 805-50 and therefore treated as a recapitalization for accounting purposes. As a result, no new goodwill or intangible assets were recognized, and the assets, liabilities and results of operations of the Company continue to be reflected at their historical carrying amounts. The Holding Company has been presented as the reporting entity for all periods following the reorganization.

Consistent with the applicable accounting guidance and the requirements of the SEC Financial Reporting Manual, all share and per-share information presented in this prospectus has been retrospectively adjusted to reflect the capital structure of the Holding Company as if the share exchange had occurred at the beginning of the earliest period presented. The reorganization did not have any impact on our historical total shareholders' equity, net loss or income, cash flows, or historical operations, but it did result in a reclassification within equity accounts due to the change in par value and number of shares outstanding.

As a result of the reorganization, the Holding Company became the parent company of the Company, which continues to conduct the historical operations of the business.

#### Note 2 — REVISION TO PRIOR PERIOD FINANCIAL STATEMENTS
Subsequent to the filing of the Company's Annual Report on Form S-1 for the fiscal year ended December 31, 2024 with the SEC, management of the Company discovered that the sales tax liability and the state tax liability were understated as of December 31, 2024 by US$33,539 and US$465,285 (tax plus interest, netting with federal effect and excluding penalties), respectively, related to the prior years of 2022 through 2024.

In accordance with Staff Accounting Bulletin ("SAB") No. 99, "Materiality," and SAB No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements," the Company evaluated the adjustments detailed below, and determined the related impact did not materially misstate its previously issued financial statements as of and for the year ended December 31, 2024. Although the Company concluded that the misstatement was not material to its previously issued financial statements, the Company has determined it was appropriate to adjust its previously issued financial statements on a prospective basis to provide appropriate context to stakeholders within the comparative financial statements as of and for the year ended December 31, 2025.

As of December 31, 2024, the omission of accrual of US sales tax liabilities and the state tax liabilities were totaled US$33,539 and US$465,285, respectively, which has impact for the year ended December 31, 2024 by increasing US$3,191 for selling, general and administrative expenses, US$224,508 for income tax expense and US$171,936 for the opening of retained earnings.

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

#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 2 — REVISION TO PRIOR PERIOD FINANCIAL STATEMENTS (cont.)
The following are the relevant line items from the Company's consolidated balance sheet as of December 31, 2024, consolidated statement of operations, and consolidated statements of cashflows for the year ended December 31, 2024, which illustrate the effect of the adjustments to the periods presented:

#### Opening retained earnings as of January 1, 2024

---

| | | | |
|:---|:---|:---|:---|
|  | **As reported** | **Adjustment** | **As adjusted** |
|  | **US$** | **US$** | **US$** |
|  Retained Earnings | 4635656 | (171936) | 4463720 |

---

#### Selected balance sheet information as of December 31, 2024

---

| | | | |
|:---|:---|:---|:---|
|  | **As reported** | **Adjustment** | **As adjusted** |
|  | **US$** | **US$** | **US$** |
|  Deferred income tax, net |  | 99189 | 99189 |
|  Total non-current assets | 100248 | 99189 | 199437 |
|  Total assets | 24141380 | 99189 | 24240569 |
|  Income tax payable | 2024259 | 465285 | 2489544 |
|  Accrued expense and other current liabilities | 222674 | 33539 | 256213 |
|  Total current liabilities | 13594971 | 498824 | 14093795 |
|  Total liabilities | 13596448 | 498824 | 14095272 |
|  Retained Earnings | 10103196 | (399635) | 9703561 |
|  Total stockholders' equity | 10544932 | (399635) | 10145297 |
|  Total liabilities and stockholders' equity | 24141380 | 99189 | 24240569 |

---

#### Selected statement of operations information for the year ended December 31, 2024

---

| | | | |
|:---|:---|:---|:---|
|  | **As reported** | **Adjustment** | **As revised** |
|  | **US$** | **US$** | **US$** |
|  Selling, general and administrative expenses | (3396780) | (3191) | (3399971) |
|  Total operating expenses | (3396780) | (3191) | (3399971) |
|  Income from operations | 9731095 | (3191) | 9727904 |
|  Income before income tax expense | 9836210 | (3191) | 9833019 |
|  Income tax expense | (2065604) | (224508) | (2290112) |
|  Net income | 7770606 | (227699) | 7542907 |
|  Earnings per share – Basic and diluted | 0.42 | (0.01) | 0.41 |

---

#### Selected statement of cash flows information for the year ended December 31, 2024

---

| | | | |
|:---|:---|:---|:---|
|  | **As reported** | **Adjustment** | **As adjusted** |
|  | **US$** | **US$** | **US$** |
|  Net income | 7770606 | (227699) | 7542907 |
|  Deferred income tax |  | (59857) | (59857) |
|  Income tax payables | 770402 | 284365 | 1054767 |
|  Accrued expense and other current liabilities | (667771) | 3191 | (664580) |

---

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES
*(a) Basis of presentation*

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for information pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC").

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

#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
*(b) Use of estimates*

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

*(c) Risks and uncertainties*

The Company's business, financial condition and results of operations may also be negatively impacted by risks related to natural disasters, extreme weather conditions, health epidemics and other catastrophic incidents, which could significantly disrupt the Company's operations.

*Credit Risk*

Credit risk is the potential financial loss to the Company resulting from the failure of a client or a counterparty to settle its financial and contractual obligations to the Company, as and when they fall due. As the Company does not hold any collateral, the maximum exposure to credit risk is the carrying amounts of other receivables (excluding prepayments) and cash and bank deposits presented on the balance sheets. The Company has no other financial assets which carry significant exposure to credit risk.

*Concentration of Credit Risk*

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash. The Company places its cash with financial institutions with high-credit ratings and quality. As of December 31, 2024 and December 31, 2025, the Company's cash and cash equivalent was US$9,443,799 and US$6,061,163, respectively.

Accounts receivable primarily comprise of amounts receivable from the revenue from EPC services and sales of equipment. To reduce credit risk, the Company performs on-going credit evaluations of the financial condition of these service clients. The Company establishes a provision for doubtful accounts based upon estimates, factors surrounding the credit risk of specific service clients and other information.

*Concentration of demand*

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client C | 970500 | 100% |  | —% |
| &nbsp;&nbsp;&nbsp; Client E |  | —% | 319685 | 31% |
| &nbsp;&nbsp;&nbsp; Client F |  | —% | 542629 | 53% |
| &nbsp;&nbsp;&nbsp; Client H |  | —% | 142265 | 14% |
|  **Total** | 970500 | 100% | 1004579 | 98% |

---

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

#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
The following table sets forth a summary of single clients who represent 10% or more of the Company's total revenue:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 19673476 | 19% | 2559994 | 11% |
| &nbsp;&nbsp;&nbsp; Client E | 79569682 | 78% | 13876017 | 62% |
|  **Total** | 99243158 | 97% | 16436011 | 73% |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Client** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Client D | 8282006 | 65% | 9100000 | 66% |
| &nbsp;&nbsp;&nbsp; Client E | 3812738 | 30% | 4000000 | 29% |
|  **Total** | 12094744 | 95% | 13100000 | 95% |

---

*Concentration of supply*

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier B | 2757791 | 26% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier D | 3402390 | 32% | 1431913 | 66% |
| &nbsp;&nbsp;&nbsp; Supplier H |  |  | 478251 | 22% |
|  **Total** | 6160181 | 58% | 1910164 | 88% |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2024** | **2025** | **2025** |
|  | **US$** | **%** | **US$** | **%** |
|  **Supplier** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Supplier D | 17188618 | 19% | 3080492 | 27% |
| &nbsp;&nbsp;&nbsp; Supplier F | 16287868 | 18% | 1488681 | 13% |
| &nbsp;&nbsp;&nbsp; Supplier G | 12687903 | 14% | 1225608 | 11% |
| &nbsp;&nbsp;&nbsp; Supplier H | 11144609 | 13% |  | —% |
| &nbsp;&nbsp;&nbsp; Supplier I |  | —% | 1256911 | 11% |
|  **Total** | 57308998 | 64% | 7051692 | 62% |

---

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

#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
*Liquidity Risk*

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to maintain sufficient liquidity to meet its obligations as they come due in the ordinary course of business, while seeking to minimize costs and preserve financial flexibility.

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

*(d) Fair value measurement*

The Company applies ASC 820, *Fair Value Measurements and Disclosures*, ("ASC 820''). ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability.

ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of input that may be used to measure fair value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 applies to assets or liabilities for which there are quoted prices, in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Financial assets and liabilities of the Company primarily consist of cash and cash equivalents, accounts receivable, contract assets, amount due from related parties, prepayment and other current assets, accounts payable, contract liabilities, income tax payable and accrued expense and other current liabilities which are subject to fair value measurement; however, because of their being short term in nature management believes their carrying values approximate their fair value as of December 31, 2024 and December 31, 2025.

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

*(e) Related parties*

The Company follows the ASC 850-10, Related Party for the identification of related parties and disclosure of related party transactions.

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
Pursuant to section 850-10-20 the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company December deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. The Company discloses all significant related party transactions in Note 10.

*(f) Cash and cash equivalent*

Cash and cash equivalent consists of cash in banks, checking and certificate of deposit, the Company's demand deposit placed with financial institutions, which have original maturities of less than three months and unrestricted as to withdrawal and use. Deposits are held at highly liquid and well capitalized financial institutions. Risk of loss is not expected by management.

*(g) Bank deposit*

Bank deposits consist of fixed-term deposits placed with financial institutions with original maturities of more than three months and less than one year. The Company placed these deposits with high-credit-quality financial institutions and monitors the credit quality of the financial institutions to mitigate credit risk.

*(h) Accounts receivables, net*

Accounts receivables are recognized in the period when the Company has delivered service to its clients and when its right to consideration is unconditional. Accounts receivable, net are stated at the original amount less an allowance for expected credit loss on such receivables. Management reviews its accounts receivable on a regular basis to determine if the provision for credit loss is adequate, and makes provision when necessary. Accounts receivable are considered past due based on contractual terms. In establishing the allowance, management uses probability of default method to estimate the amount of the allowance for credit losses. The allowance for expected credit loss is estimated based upon the Company's assessment of various factors including historical experience, the age of the accounts receivable balances, current general economic conditions, future expectations and client specific quantitative and qualitative factors that may affect the Company's clients' ability to pay. An allowance is also made when there is objective evidence for the Company to reasonably estimate the amount of probable loss. Account balances are charged off against the provision after all means of collection have been exhausted and the likelihood of collection is remote. As of December 31, 2024 and December 31, 2025, the Company made nil allowance for expected credit loss for accounts receivable.

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
*(i) Contract assets*

Projects with performance obligations recognized over time that have revenue recognized to date in excess of cumulative billings are reported on consolidated balance sheets as "Contract assets". Contract retentions, included in contract assets, represent amounts withheld by clients, in accordance with underlying contract terms, until certain conditions are met or the project is completed. Provisions for estimated losses of contract assets on uncompleted contracts are made in the period in which such losses are determined. As of December 31, 2024 and December 31, 2025, the Company made nil allowance for expected credit loss for contract assets.

*(j) Expected credit loss*

ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using this methodology will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There are other provisions within the standard that affect how impairments of other financial assets may be recorded and presented, and that expand disclosures. The Company adopted the ASU on January 1, 2022 and applied to accounts receivable, contract assets and other financial instruments. The adoption of this guidance did not materially impact the net earning and financial position and has no impact on the cash flows. As of December 31, 2024 and December 31, 2025, the Company made nil allowance for expected credit loss for accounts receivable, contract assets and other financial instruments.

*(k) Prepayment and other current assets*

Prepayments are mainly payments made to vendors or services providers for future services that have not been provided. These amounts are refundable and bear no interest. Management reviews its prepayments on a regular basis to determine if the allowance is adequate and adjusts the allowance when necessary. As of December 31, 2024 and December 31, 2025, no allowance was deemed necessary.

*(l) Deferred Initial Public Offering ("IPO") costs*

The Company complies with the requirement of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin ("SAB") Topic 5A — "Expenses of Offering". Initial public offering expense directly attributable to offering of securities are deferred and would be charged against the gross proceeds of the offering, as a reduction in capital stock. These deferred expenses mainly consist of underwriting, legal and other expenses incurred through the balance sheet date that are directly related to the intended IPO. Should the IPO prove to be unsuccessful, these deferred initial public offering costs, as well as additional expenses to be incurred, will be charged to operations. As of December 31, 2024 and December 31, 2025, the Company capitalized nil and US$430,000 of deferred initial public offering costs.

*(m) Equipment, net*

Equipment, net are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives are as follows:

---

| | |
|:---|:---|
|  **Category** | **Estimated <br>useful life** |
|  Vehicle | 5 years |

---

Expenditure for repair and maintenance costs, which do not materially extend the useful lives of the assets, are charged to expenses as incurred, whereas the expenditure for major renewals and betterment that substantially extends the useful lives of equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the statements of operations and comprehensive loss.

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
*(n) Contract liabilities*

Contract liabilities are recorded when consideration is received from a client prior to transferring the services to the client or other conditions under the terms of a sales contract. As of December 31, 2024 and December 31, 2025, the Company recorded contract liabilities of US$743,012 and US$3,902,213, respectively. For the years ended of December 31, 2024 and 2025, the Company recognized revenue from contract liabilities is nil and US$72,012, respectively.

*(o) Commitments and contingencies*

In the normal course of business, the Company is subject to commitments and contingencies, including operating lease commitments, legal proceedings and claims arising out of its business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss will occur, and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments on liability for contingencies, including historical and the specific facts and circumstances of each matter.

*(p) Revenue recognition*

The Company engages in providing engineering, procurement, and construction ("EPC") services for critical process systems across multiple industrial sectors. The Company serves clients in energy storage and battery manufacturing, renewable energy infrastructure, electronics production, advanced manufacturing, and semiconductor fabrication industries.

The Company elected to adopt Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606), effective as of April 1, 2020. Accordingly, the consolidated financial statements for the years ended December 31, 2024 and 2025 are presented under ASC 606. The Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer obtains control of that asset. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. For the accounting period, the Company has determined two revenue streams for the accounting period, which includes: (1) Revenue from EPC services and (2) Sales of equipment and others.

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

(1) EPC services

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

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
The contract is typically fixed priced with certain exemptions, which have a variable consideration within a range of the contract price based on changing the scope of work, which is reflected in the milestone billings based upon the attainment of specific project objectives to assist the Company meets its contractual obligation. The Company's revenue is derived from contracts where scope is adequately defined, and therefore the Company can reasonably estimate total contract value. Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. The Company estimates variable consideration based on the amount the Company expects to be entitled, and includes estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when the Company concludes that any significant uncertainty associated with the variable consideration is resolved. For the years ended December 31, 2024 and 2025, we had no material amounts in revenue related to unapproved change orders or liquidated damages.

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

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

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

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
The Company's contract with the client has payment terms specified based upon certain obligations completed. The Company will submit progress billing to the client when the stage of the project is completed, and after the Company receives the certificate from client, the Company will issue a tax invoice to the client. As the clients are required to pay the Company at different billing stages over the contract period, as such, the Company believes the progress payments limit the Company's exposure to credit risk and that the Company would be able to collect substantially all of the consideration gradually at different stages. The timing of the satisfaction of the Company's performance obligations is based upon the cost-to-cost measure of progress method, which is generally different than the timing of unconditional right of payment, and is based upon certain conditions completed as specified in the contract. The timing between the satisfaction of the Company's performance obligations and the unconditional right of payment would contribute to contract assets and contract liabilities.

(2) Sales of equipment and others

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

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

*(q) Operating leases*

The Company adopted ASC Topic 842, *Leases* ("ASC 842") on January 1, 2022, using the modified retrospective method. The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. The Company's leases do not contain any material residual value guarantees or material restrictive covenants.

The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. Lastly, the Company elected the short-term lease exemption for all contracts with lease term of 12 months or less.

At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors present and records a right-of-use ("ROU") asset and lease liability for operating lease. ROU assets acquired through lease represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. If the rate implicit in the Company's leases is not readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancellable term of the lease.

Leases with an initial lease term of 12 months or less are not recorded on the balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.

*(r) Selling, general and administrative expenses* 

Selling expenses include related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs.

General and administrative expenses mainly consist of staff cost, office supplies and upkeep expenses, travelling and entertainment, legal and professional fees, property and related expenses, other miscellaneous administrative expenses.

*(s) Income taxes*

The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

Under ASC 740-10-25, "Accounting for Uncertainty in Income Taxes", a tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefits recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer satisfied. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred. There were no uncertain tax positions as of December 31, 2024 and December 31, 2025. GAAP also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The Company may also be subject to the examination of the tax filings in other jurisdictions, which are not material to the financial statements.

For the years ended December 31, 2024 and 2025, the Company did not have any penalties associated with tax positions. As of December 31, 2024 and December 31, 2025, the Company did not have any significant unrecognized uncertain tax positions.

*(t) Earnings per share*

Basic earnings per share is computed by dividing net income attributable to the holders of common stock by the weighted average number of common stock outstanding during the period presented. Diluted income per share is calculated by dividing net income attributable to the holders of common stock as adjusted for the effect of dilutive common stock equivalents, if any, by the weighted average number of common stock and dilutive common stock

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
equivalents outstanding during the period. However, common stock equivalents are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. For the years ended December 31, 2024 and 2025, the Company did not have any dilutive shares.

*(u) Share-based compensation*

The Company applies ASC 718, Compensation — Stock Compensation ("ASC 718"), to account for its employee share-based payments. In accordance with ASC 718, the Company determines whether an award should be classified and accounted for as a liability award or equity award. All the Company's share-based awards to employees were classified as equity awards and are recognized in the financial statements based on their grant date fair values. In accordance with ASC 718, the Company recognizes share-based compensation cost for equity awards to employees with a performance condition based on the probable outcome of that performance condition. Compensation cost is recognized using the accelerated method if it is probable that the performance condition will be achieved. The Company accounts for forfeitures as they occur in accordance with ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting.

*(v) Segment Reporting*

FASB ASC 280, "*Segment Reporting"*, establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments.

The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker ("CODM") for making decisions, allocating resources and assessing performance. The Company's CODM has been identified as the CEO, who reviews results when making decisions about allocating resources and assessing the performance of the Company.

The Company's assets are substantially all located in the U.S. and substantially all of the Company's revenues and expenses are derived in the U.S. Therefore, no geographical segments are presented.

For the years ended December 31, 2024 and 2025, the CODM reviewed the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole, and the Company has only one reportable segment.

*(w) Recent accounting pronouncements*

The Company is an "emerging growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.

In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." This amendment incorporates certain U.S. Securities and Exchange Commission (SEC) disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC's regulations. For entities subject to the SEC's existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 3 — SUMMARY OF ACCOUNTING POLICIES (cont.)
be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its financial statements.

In December 2023, the FASB issued ASU No.2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". This ASU requires additional quantitative and qualitative income tax disclosure to enable financial statements users better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted the new disclosures for the annual periods beginning on January 1, 2025.

In March 2024, the FASB issued ASU 2024-02, "Codification Improvements — Amendments to Remove References to the Concepts Statements". This update contains amendments to the Codification that remove references to various FASB Concepts Statements. These issues to remove references to various Concepts Statements and the amendments apply to all reporting entities within the scope of the affected accounting guidance. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2024. Early application of the amendments in this Update is permitted for any fiscal year or interim period for which financial statements have not yet been issued (or made available for issuance). The Company adopted the standard on the required effective date beginning on January 1, 2025 using a prospective transition method for all new transactions recognized on or after the effective date. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). The ASU requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. ASU 2024-03, as clarified by ASU 2025-01 is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with prospective or retrospective application permitted. The Company is currently evaluating the impact of adoption on the Company's related disclosures.

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets". The ASU provides a practical expedient to assume that conditions as of the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. This guidance is effective for annual reporting periods beginning after December 15, 2025, and for interim periods within those annual reporting periods, with early adoption permitted. The amendments in ASU 2025-05 should be applied prospectively. The Company is currently evaluating the impact of adoption on the Company's related disclosures.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 4 — DISAGGREGATION OF REVENUE
The following tables present the Company's revenue disaggregated by service lines for the years ended December 31, 2024 and 2025:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2024** | **2025** |
|  | **US$** | **US$** |
|  EPC services | 101951758 | 22112889 |
|  Sales of equipment and others | 96597 | 350102 |
|  | **102048355** | **22462991** |
|  – Over time | 101951758 | 22112889 |
|  – At a point in time | 96597 | 350102 |
|  | **102048355** | **22462991** |

---

The Company recognizes revenue from EPC services based on the Company's effort or inputs to the satisfaction of a performance obligation over time as work progresses because of the continuous transfer of control to the client and the Company's right to bill the client as costs are incurred.

The following table present the Company's revenue disaggregated by the countries which the client is located for the years ended December 31, 2024 and 2025:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2024** | **2025** |
|  | **US$** | **US$** |
|  United States | 102048355 | 22462991 |

---

#### Note 5 — ACCOUNTS RECEIVABLES, NET
Accounts receivables, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of<br> December 31,<br> 2025** |
|  | **US$** | **US$** |
|  Accounts receivables | 970500 | 1030714 |
|  Less: Allowance for expected credit loss |  |  |
|  Accounts receivables, net | 970500 | 1030714 |

---

For the years ended December 31, 2024 and 2025, there is no credit loss recorded.

The following table sets forth the aging analysis of accounts receivables, net, based on the invoice date as of the dates mentioned below:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of<br> December 31,<br> 2025** |
|  | **US$** | **US$** |
|  Within 30 days | 970500 | 147265 |
|  Between 31 and 60 days |  | 149980 |
|  Between 61 and 90 days |  | 16195 |
|  Over 91 days |  | 717274 |
|  Accounts receivables, net | 970500 | 1030714 |

---

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 6 — CONTRACT ASSETS AND CONTRACT LIABILITIES
Net contract assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of<br> December 31,<br> 2025** |
|  | **US$** | **US$** |
|  Contract assets | 12665217 | 13743942 |
|  Contract liabilities | (743012) | (3902213) |
|  Contract assets, net | 11922205 | 9841729 |

---

The Company believes that none of the clients above were experiencing financial difficulties that would materially impact the collectability of the Company's total contract assets as of December 31, 2024 and December 31, 2025.

#### Note 7 — EQUIPMENT, NET

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of<br> December 31,<br> 2025** |
|  | **US$** | **US$** |
|  At cost: |  |  |
|  Vehicles | 99018 | 99018 |
|  | 99018 | 99018 |
|  Less: accumulated depreciation | (17158) | (36961) |
|  Equipment, net | 81860 | 62057 |

---

Depreciation expense for years ended December 31, 2024 and 2025 was US$17,158 and US$19,803, respectively.

#### Note 8 — ACCOUNTS PAYABLES, ACCRUED EXPENSE AND OTHER CURRENT LIABILITIES
Accounts payables, accrued expense and other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024<br>(As revised)** | **As of<br> December 31,<br> 2025** |
|  | **US$** | **US$** |
|  Accounts payables | 10605026 | 2181280 |
|  Accrued expense and other current liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Other payables | 80386 | 240111 |
| &nbsp;&nbsp;&nbsp; SBA Loan | 158900 | 180436 |
| &nbsp;&nbsp;&nbsp; Lease liabilities, current portion | 16927 | 17330 |
|  Accrued expense and other current liabilities | 256213 | 437877 |

---

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 9 — INCOME TAXES
The components of income before income taxes were as follows:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2024 <br>(As revised)** | **2025** |
|  | **US$** | **US$** |
|  Domestic | 9833019 | 6409242 |
|  Foreign |  |  |
|  Income before income taxes | 9833019 | 6409242 |

---

Components of the provision for income taxes were as follows:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2024<br>(As revised)** | **2025** |
|  | **US$** | **US$** |
|  Current income tax expense: |  |  |
| &nbsp;&nbsp;&nbsp; Federal | 2064934 | 1455104 |
| &nbsp;&nbsp;&nbsp; State | 285035 | 208055 |
| &nbsp;&nbsp;&nbsp; Foreign |  |  |
|  | 2349969 | 1663159 |
|  Deferred income tax benefit: |  |  |
| &nbsp;&nbsp;&nbsp; Federal | (59857) | (148070) |
| &nbsp;&nbsp;&nbsp; State |  |  |
| &nbsp;&nbsp;&nbsp; Foreign |  |  |
|  | (59857) | (148070) |
|  Total | **2290112** | **1515089** |

---

The following table presents a reconciliation of the Company's income tax at statutory tax rate and income tax at effective tax rate for the years ended December 31, 2024 and 2025.

---

| | | |
|:---|:---|:---|
|  | **For The Year Ended<br> December 31, 2025** | **For The Year Ended<br> December 31, 2025** |
|  | **US$** | **%** |
|  Tax provision at the U.S. federal statutory rate | 1345941 | 21% |
|  State and local income tax, net of federal income tax effect\* | 164363 | 3% |
|  Others | 4785 | 0% |
|  Tax expenses at effective tax rate | 1515089 | 24% |

---

____________

\* The state that contributed to the majority of the tax effect in this category was Arizona.

\*\* On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted, significantly amending U.S. federal tax law, including changes to international tax provisions, expensing of research and experimental expenditures, depreciation, and interest deduction rules. The legislation did not have a material impact on the Company's 2025 effective tax rate or financial statements.

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 9 — INCOME TAXES (cont.)

---

| | |
|:---|:---|
|  | **For The Year <br>Ended <br>December 31,<br>2024 <br>(As revised)** |
|  | **US$** |
|  Income before income taxes | 9833019 |
|  Statutory income tax rate | 21% |
|  Income tax expense at statutory rate | 2064934 |
|  State and local income tax, net of federal income tax effect\* | 225178 |
|  Tax expenses at effective tax rate | 2290112 |
|  Effective tax rate | 23% |

---

____________

\* The state that contributed to the majority of the tax effect in this category was Arizona.

The components of the non-current deferred tax assets (liabilities) were as follows:

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31,** | **As of <br>December 31,** |
|  | **2024 <br>(As revised)** | **2025** |
|  | **US$** | **US$** |
|  Gross noncurrent deferred tax assets (liabilities) |  |  |
|  Depreciation and amortization |  | 7432 |
|  Lease liability |  | 3639 |
|  Deferred revenue |  | 140910 |
|  Non-deductible state income tax | 99189 | 99189 |
|  Right-of-use asset |  | (3912) |
|  Deferred income tax assets, net | 99189 | 247258 |

---

The Company is subject to state income tax and federal income tax at different tax rates, depending upon taxable income levels. The U.S. federal statutory tax rate is 21%. For the federal income tax, the federal net operating losses incurred after 2017 are limited to 80% of taxable income and do not have an expiring date. The Company has no federal tax loss carryforwards. For the state income tax, there is no net operating loss as of December 31, 2024 and 2025. As of December 31, 2025, management evaluated the realizability of the deferred tax assets and determined it is "more likely than not" that all deferred tax assets will be realized through future taxable income and reversal of existing taxable temporary differences. Therefore, no valuation allowance was recorded.

The following table presents supplemental cash flow information related to income taxes paid (net of refunds received):

---

| | |
|:---|:---|
|  | **For The Years <br>Ended <br>December 31, <br>2025** |
|  Cash paid during the period for income taxes, net of refunds: |  |
|  Federal | 1698479 |
|  State |  |
|  Foreign |  |
|  Total cash paid during the period for income taxes, net of refunds received | 1698479 |

---

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2025, the Company identified that it had not previously filed income and sales tax returns in

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 9 — INCOME TAXES (cont.)
certain state jurisdictions where it had established nexus. The Company evaluated its historical tax filing obligations and recorded additional tax liabilities, including estimated interest, related to these jurisdictions. The Company intends to remediate this matter through delinquent tax return filings and voluntary disclosure agreements with the applicable taxing authorities.

As of December 31, 2024 and 2025, the Company has recorded its best estimate of the tax liabilities associated with these matters. The Company has accrued interest related to these matters, and no material penalties are expected as the Company intends to seek penalty abatement through voluntary disclosure agreements. Due to the inherent uncertainty associated with the voluntary disclosure process and potential examinations by taxing authorities, the ultimate resolution of these matters may differ from the amounts recorded. However, management believes that any such differences would not have a material impact on the Company's financial position or results of operations.

The Company is subject to taxation and files income tax returns in the United States federal jurisdiction and various state jurisdictions. As of December 31, 2025, tax years for 2022, 2023 and 2024 are subject to examination by tax authorities.

#### Note 10 — EQUITY
The Subsidiary initially authorized 100 shares of common stock, par value US$1 per share. In April 2025, the Subsidiary amended its Article of the Certificate of Formation to increase the number of authorized shares of common stock to 10,000 shares and change the par value to US$0.01 per share.

The Holding Company initially authorized 100,000,000 shares of common stock, par value US$0.0001 each. Subsequently on June 5, 2025, the Holding Company issued an aggregate of 9,700,000 shares of common stock and the Subsidiary completed a share exchange for that the stockholders of the Subsidiary became stockholders of the Holding Company with the same shareholding percentage and the Holding Company became the sole stockholder of the Subsidiary. On December 19, 2025, the Holding Company increased the number of authorized shares of common stock from 100,000,000 shares to 200,000,000 shares and effected a one-for-two forward split of all issued and outstanding shares of 9,700,000 shares of common stock. As a result of the forward split, the Holding Company have 19,400,000 shares of common stock issued and outstanding as of the date hereof.

On March 21, 2025, the Subsidiary approved the 2025 Grant Notice to issue 1,000,000 shares (Giving retroactive effect to the 1 for 1,000 share exchange effected on June 5, 2025 and 1 for 2 forward split effected on December 19, 2025) of Common Stock to the employee. The Award has no blackout period and any restricted, which is an immediate vesting. Please see the detail in Note 13.

On June 1, 2025, the Company declared a cash dividend of US$0.103 per share of common stock to all stockholders of common stock of record as of June 1, 2025. In July 2025, the Company distributed an aggregate dividend of US$1,998,200 to all stockholders. A portion of the dividend amount to US$22,000 was settled through the offset of an outstanding loan receivable from a related party, with the remainder paid in cash.

The Company has performed a series of issuances of common stock resulting in 18,400,000 and 19,400,000 shares of common stock issued and outstanding as of December 31, 2024 and December 31, 2025. The Company only has one single class of common stock that is accounted for as permanent equity.

#### Note 11 — RELATED PARTY TRANSACTIONS
These related parties of the Company with whom transactions are reported in these financial statements are as follows:

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to Us** |
|  Mr. Yunlong Zhang | CEO, Controlling Stockholder and Director of the Company |
|  Shenzhen Best-Water S&T Co. Ltd. ("SZBW") | CEO of SZBW is the same as the Company's CEO and SZBW is wholly owned by the Company's CEO |

---

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 11 — RELATED PARTY TRANSACTIONS (cont.)
In the ordinary course of business, the Company was involved in certain transactions, either at cost or current market prices, and on normal commercial terms with related parties. The following table provides the balance with these parties for the years as presented (for the portion of such period that they were considered related):

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31, <br>2024** | **As of <br>December 31, <br>2025** |
|  | **US$** | **US$** |
|  **Prepayment to a related party** |  |  |
|  ***<u>Name of related party</u>*** |  |  |
|  SZBW | 525000 | 625000 |
|  | 525000 | 625000 |

---

---

| | | |
|:---|:---|:---|
|  | **For the<br>year ended<br>December 31,<br>2024** | **For the<br>year ended<br>December 31,<br>2025** |
|  | **US$** | **US$** |
|  **Construction consultancy service fee and equipment fee** |  |  |
|  ***<u>Name of related party</u>*** |  |  |
|  SZBW | 108500 |  |
|  | 108500 |  |

---

#### Note 12 — OPERATING LEASES — RIGHT-OF -USE ASSETS AND LEASE LIABILITIES
<u><u>Lease commitment</u></u>

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company's leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which results in an economic penalty.

The recognized operating lease ROU assets and lease liabilities as follows:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of<br> December 31,<br> 2025** |
|  | **US$** | **US$** |
|  Operating lease ROU asset | 16888 | 18629 |

---

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31,<br> 2024** | **As of<br> December 30,<br> 2025** |
|  | **US$** | **US$** |
|  Operating lease liabilities |  |  |
|  Current portion | 16927 | 17330 |
|  Non-current portion | 1477 |  |
|  Total | 18404 | 17330 |

---

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 12 — OPERATING LEASES — RIGHT-OF -USE ASSETS AND LEASE LIABILITIES (cont.)
As of December 31, 2025, future minimum lease payments under the non-cancellable operating leases are as follows:

---

| | |
|:---|:---|
|  **Future payment** | **US$** |
| 2026 | 18012 |
| 2027 |  |
|  Thereafter |  |
|  Total future lease payment | 18012 |
|  Less: imputed interest | (682) |
|  Present value of operating lease liabilities | 17330 |
|  Operating lease liabilities, current portion | 17330 |
|  Operating lease liabilities, non-current portion |  |

---

The following summarizes other supplemental information about the Company's operating lease as of December 31, 2025:

---

| | | |
|:---|:---|:---|
|  Weighted average discount rate | 8.500 | % |
|  Weighted average remaining lease term (years) | 1 |  |

---

#### Note 1 3 — SHARE-BASED COMPENSATION EXPENSE
On March 21, 2025, the stockholders and Board of Directors of the Company approved the 2025 Grant Notice to issue 1,000,000 shares of Common Stock to the employee. The purpose of the 2025 Grant Notice is to award exceptionally talented and qualified individuals who provided excellent performance in the past period. The Award has no blackout period and any restricted, which is an immediate vesting.

Share-based compensation expense recognized in the consolidated statements of operations was as follows:

---

| | | |
|:---|:---|:---|
|  | **For The Years Ended <br>December 31,** | **For The Years Ended <br>December 31,** |
|  | **2024** | **2025** |
|  | **US$** | **US$** |
|  Selling, general and administrative expenses |  | 1296619 |

---

The fair value per share is approximately US$1.297. The valuation was estimated on the grant date by the discounted cash flow method ("DCF") which considers that the present value of an investment is determined by the expected future economic benefits, such as the income that generated regularly, cost savings and sales revenue. In discounted cash flow method, a discount rate that can reflect the current market yield and the inherent risk of investment is used to discount the future net cash flow and evaluate the Company.

Discount rate is used to convert the annual net cash flow into present value, and it is based on an estimated weighted average cost of capital ("WACC"). WACC consists of cost of equity and cost of debt, and it is calculated by the proportion of capital structure.

The cost of equity, or required return on equity, is estimated using the capital asset pricing model ("CAPM") which is based on the premise that an industry's capitalization rate is equal to the risk-free rate of return plus an equity risk premium adjusted by an industry risk factor based on beta. The beta is developed by analyzing the historical relationship between the return required by investors in a particular industry and the average return required by investors in the market as a whole. A small size premium is applied in estimating an appropriate cost of equity, due to the relative size of the Company. Additional adjustments may be made for company-specific factors.

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

#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 1 3 — SHARE-BASED COMPENSATION EXPENSE (cont.)
The following tables summarized the small size risk premium ("SRP"), additional risk premium ("ARP"), cost of equity ("Ke"), after-tax cost of debt ("Kd"), debt-to-equity ratio and WACC as of the Valuation Date:

---

| | |
|:---|:---|
|  | **For The<br> Years Ended<br> December 31,<br> 2025** |
|  Valuation Date | March 21, 2025 |
|  SRP | 4.47% |
|  ARP | 4.00% |
|  Kd\*(1-t)\* | 4.02% |
|  Ke | 16.94% |
|  %Debt | 9.70% |
|  %Equity | 90.30% |
|  WACC | 16.00% |

---

____________

\* t = Effective tax rate

For the years ended December 31, 2024 and 2025, the Company recognized share-based compensation expense is nil and US$1,296,619, respectively.

#### Note 14 — SEGMENT INFORMATION
The Company operates and manages its business as a single reportable segment, which is consistent with how the Chief Operating Decision Maker ("CODM"), the Chief Executive Officer, makes operating decisions and allocates resources. The CODM assesses performance and results of operations at the Company level. The Company's operations are centralized and integrated, with financial results reviewed and managed on a consolidated basis. Accordingly, management has determined that the Company has one reportable segment under ASC Topic 280, Segment Reporting.

Measure of Segment Profit or Loss

The CODM assesses performance for the segment and decides how to allocate resources by regularly reviewing the consolidated net income from the statement of operations, after taking into account the Company's strategic priorities, its cash balance, and its expected use of cash. The following table presents the significant revenue and expense categories in the Company's single operating segment:

---

| | | |
|:---|:---|:---|
|  | **For the<br> year ended<br> December 31,<br> 2024<br>(As revised)\*** | **For the<br> year ended<br> December 31,<br> 2025** |
|  | **US$** | **US$** |
|  Revenue | 102048355 | 22462991 |
|  Cost of revenues | (88920480) | (11525611) |
|  Selling, general and administrative expenses\* | (3399971) | (4960551) |
|  Interest income, net | 105115 | 93906 |
|  Other income, net |  | 338507 |
|  Income tax expense\* | (2290112) | (1515089) |
|  **Net Income\*** | **7542907** | **4894153** |

---

____________

\* Certain prior-year amounts have been revised. See Note 2 to the consolidated financial statements for further information.

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#### BW Industrial Holdings Inc.<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### Note 15 — COMMITMENTS AND CONTINGENCIES
<u><u>Contingencies</u></u>

As of December 31, 2024 and December 31, 2025, the Company had neither significant financial nor capital commitment.

In the ordinary course of business, the Company may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable, and the amount of the loss is reasonably estimable. In the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, the Company cannot predict the impact of future developments affecting our pending or future claims and lawsuits. The Company expense legal costs as incurred, and all recorded legal liabilities are adjusted as required as better information becomes available to us.

#### Note 16 — SUBSEQUENT EVENTS
On March 13, 2026, the Board of Directors approved and adopted the "2026 Equity Incentive Plan" (the "Plan"). The number of shares of Common Stock reserved for issuance under the Plan is initially 1,500,000 shares of Common Stock; such amount will increase automatically on January 1 of each calendar year, starting with January 1, 2027, with an additional number of shares of Common Stock equal to the lesser of (A) 5% of the outstanding number of shares of Common Stock (on a fully-diluted basis) on December 31 and (B) such lower number of shares of Common Stock as may be determined by the Board. As of the date of this prospectus, the Company have not issued any awards or grants under the plan.

Except for the above, the Company has assessed all events from December 31, 2025, up through date which is the date that these consolidated financial statements are available to be issued, there are not any material subsequent events that require disclosure in these consolidated financial statements.

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

#### BW INDUSTRIAL HOLDINGS INC.
**__________________________________________________**

Prospectus dated [•]

**__________________________________________________**

#### Eddid Securities USA Inc.

------

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

#### PART II

#### INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 13. Other Expenses of Issuance and Distribution.
The following table sets forth estimated expenses we expect to incur in connection with the sale of the shares of Common Stock being registered. All such expenses are estimated except for the SEC and FINRA registration fees.

---

| | |
|:---|:---|
|  SEC registration fee | $3752 |
|  FINRA registration fee | $4575<br><sup>(1)</sup> |
|  Listing fee for NYSE American | $75000 |
|  Printing expenses | $30000 |
|  Fees and expenses of counsel for the Company | $400000 |
|  Fees and expenses of accountants for Company | $140000 |
|  Underwriter Expenses | $250000<br><sup>(2)</sup> |
|  Miscellaneous | $27500 |
| &nbsp;&nbsp;&nbsp; Total Expenses | $930827 |

---

____________

These expenses will be borne by us. Underwriting discounts and the non-accountable expense allowance will be borne by us in proportion to the numbers of shares of Common Stock sold in the Offering.

(1) This amount represents the filing fee required in connection with the proposed initial public offering.

(2) This amount represents $250,000 to Eddid acting as representative of the underwriters for its out-of-pocket expenses pursuant to the underwriting agreement to be filed as Exhibit 1.1.

#### Item 14. Indemnification of Directors and Officers.
Section 145 of the DGCL authorizes a court to award, or a corporation's board of directors to grant, indemnity to officers, directors and other corporate agents in terms sufficiently broad to permit such indemnification under certain circumstances and subject to certain limitations.

Our Certificate of Incorporation and Bylaws provide that we will indemnify our directors and officers, and may indemnify our employees and agents, to the fullest extent permitted by Delaware law, including in circumstances in which indemnification is otherwise discretionary under Delaware law.

We expect to enter into agreements to indemnify our directors and executive officers as determined by the Board. Under the terms of such indemnification agreements, we will be required to indemnify each of our directors and officers, to the fullest extent permitted by the laws of the state of Delaware, if the basis of the indemnitee's involvement was by reason of the fact that the indemnitee is or was our director or officer or was serving at our request in an official capacity for another entity. We must indemnify our officers and directors against all reasonable fees, expenses, charges and other costs of any type or nature whatsoever, including any and all expenses and obligations paid or incurred in connection with investigating, defending, being a witness in, participating in (including on appeal), or preparing to defend, be a witness or participate in any completed, actual, pending or threatened action, suit, claim or proceeding, whether civil, criminal, administrative or investigative, or establishing or enforcing a right to indemnification under the indemnification agreement. The indemnification agreements also require us, if so requested, to advance all reasonable fees, expenses, charges and other costs that such director or officer incurred, provided that such person will return any such advance if it is ultimately determined that such person is not entitled to indemnification by us. Any claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.

**Item 15. Recent Sales of Unregistered Securities.**

During the past three years, we effected the following transactions in reliance upon exemptions from registration under the Securities Act as amended. Unless stated otherwise; (i) each of the persons who received these unregistered securities had knowledge and experience in financial and business matters which allowed them to evaluate the merits and risk of the receipt of these securities, and that they were knowledgeable about our operations and financial condition; (ii) no underwriter participated in, nor did we pay any commissions or fees to any underwriter in connection

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

with the transactions; (iii) the transactions did not involve a public offering; and (iv) each certificate issued for these unregistered securities contained a legend stating that the securities have not been registered under the Act and setting forth the restrictions on the transferability and the sale of the securities.

On June 5, 2025, the Company completed the Share Exchange transaction and issued 19,400,000 shares of Common Stock to the below four stockholders of Bestwater. See "*Business — History and Corporate Structure*." The issuance and sale were made in reliance on the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended.

---

| | | | |
|:---|:---|:---|:---|
|  **Stockholders** | **Date of Issuance** | **Shares of <br>Common Stock** | **Consideration** |
|  Yunlong Zhang | June 5, 2025 | 12,600,000 | \* |
|  Zhimin Chen | June 5, 2025 | 4,800,000 | \* |
|  Yuchen Zhang | June 5, 2025 | 1,000,000 | \* |
|  Zhou Ye | June 5, 2025 | 1,000,000 | \* |

---

____________

\* The shares of Common Stock were issued in exchange for such stockholders' equity interests of Bestwater in a share exchange transaction. No cash consideration was paid.

#### [remainder of page intentionally left blank]
**Item 16. Exhibits**

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description** |
|  1.1\*\* | Form of the Underwriting Agreement |
|  2.1\*\*\* | [Share Exchange Agreement, dated June 5, 2025.](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex2-1_bwindus.htm) |
|  3.1\*\*\* | [Certificate of Incorporation of the Company, effective on June 5, 2025.](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex3-1_bwindus.htm) |
|  3.2\*\*\* | [Amended and Restated Certificate of Incorporation of the Company, effective on December 19, 2025](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex3-2_bwindus.htm) |
|  3.3\*\*\* | [By-laws of the Company, adopted on December 19, 2025.](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex3-3_bwindus.htm) |
|  5.1\*\*\* | [The Opinion of Hunter Taubman Fischer & Li LLC regarding the validity of the shares of Common Stock being registered](http://www.sec.gov/Archives/edgar/data/2080841/000121390026005778/ea025237805ex5-1_bwindus.htm) |
|  10.1\*\*\* | [The Service Agreement by and between Bestwater and Propersys Corporation, dated August 1, 2025](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex10-1_bwindus.htm) |
|  10.2\*\*\* | [The Form of Agreement with Subcontractors](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex10-2_bwindus.htm) |
|  10.3\*\*\* | [The Form of Director Offer Letter](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex10-3_bwindus.htm) |
|  10.4\* | [The 2026 Equity Incentive Plan](ea025237807ex10-4.htm) |
|  10.5\*\*\* | [The Service Agreement by and between Bestwater and JA Solar AZ, LLC, dated March 29, 2024](http://www.sec.gov/Archives/edgar/data/2080841/000121390026005778/ea025237805ex10-5_bwindus.htm) |
|  10.6\* | [The Employment Agreement by and between the Company and the CEO, Yunlong Zhang, dated March 5, 2026](ea025237807ex10-6.htm) |
|  10.7\* | [The Employment Agreement by and between the Company and the CFO, Zhimin Chen, dated March 5, 2026](ea025237807ex10-7.htm) |
|  10.8\* | [The Employment Agreement by and between the Company and the COO, Robert Sliva, dated March 5, 2026](ea025237807ex10-8.htm) |
|  10.9\* | [The service agreement with Canadian Solar US Module Corporation, dated December 12, 2025](ea025237807ex10-9.htm) |
|  10.10\* | [The site services agreement with Waaree Solar Americas Inc., dated September 18, 2025](ea025237807ex10-10.htm) |
|  21.1\*\*\* | [List of Subsidiaries](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex21-1_bwindus.htm) |
|  23.1\* | [Consent of Marcum Asia CPAs LLP, Independent Registered Public Accounting Firm](ea025237807ex23-1.htm) |
|  23.2\*\*\* | [Consent of Hunter Taubman Fischer & Li LLC (included in exhibit 5.1)](http://www.sec.gov/Archives/edgar/data/2080841/000121390026005778/ea025237805ex5-1_bwindus.htm) |
|  99.1\*\*\* | [Consent of Director Nominee (Yuan Shi)](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-1_bwindus.htm) |
|  99.2\*\*\* | [Consent of Director Nominee (Damon Wright)](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-2_bwindus.htm) |
|  99.3\*\*\* | [Consent of Director Nominee (Marc Distefano)](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-3_bwindus.htm) |
|  99.4\*\*\* | [Consent of Director Nominee (Robert Sliva)](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-4_bwindus.htm) |
|  99.5\* | [Form of Audit Committee Charter](ea025237807ex99-5.htm) |

---

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

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description** |
|  99.6\* | [Form of Compensation Committee Charter](ea025237807ex99-6.htm) |
|  99.7\* | [Form of Nominating and Governance Committee Charter](ea025237807ex99-7.htm) |
|  99.8\*\*\* | [Consent Letter of Frost & Sullivan](http://www.sec.gov/Archives/edgar/data/2080841/000121390025126775/ea025237804ex99-8_bwindus.htm) |
|  107\* | [Filing Fees Exhibit](ea025237807ex-fee.htm) |

---

____________

\* Filed herewith.

\*\* To be filed by amendment.

\*\*\* Previously filed.

**Item 17. Undertakings.**

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

The undersigned registrant hereby undertakes to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) File, during any period in which offers or sales are being made, a post-effective amendment to this registration statement to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended (the "Securities Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Reflect in the prospectus any facts or events which, individually or together, represent a fundamental change in the information in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of the securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of a prospectus filed with the Commission pursuant to Rule 424(b) under the Securities Act if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Include any additional or changed material information on the plan of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For determining liability under the Securities Act, treat each post-effective amendment as a new registration statement of the securities offered, and the offering of the securities at that time to be the initial bona fide offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) File a post-effective amendment to remove from registration any of the securities that remain unsold at the end of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) For determining liability of the undersigned registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the Offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating to the Offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing prospectus relating to the Offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the Offering made by the undersigned registrant to the purchaser.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the U.S. Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) For determining any liability under the Securities Act, treat the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act as part of this registration statement as of the time it was declared effective.

For determining any liability under the Securities Act, treat each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the Offering of such securities at that time as the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

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

#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Houston, State of Texas, on March 16, 2026.

---

| | |
|:---|:---|
|  By: | */s/ Yunlong Zhang* |
|  | Yunlong Zhang |
|  | Chief Executive Officer |

---

---

| | |
|:---|:---|
|  By: | */s/ Zhimin Chen* |
|  | Zhimin Chen |
|  | Chief Financial Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates stated.

---

| | | |
|:---|:---|:---|
|  **Signature** | **Title** | **Date** |
|  */s/ Yunlong Zhang* | Chief Executive Officer and Director | March 16, 2026 |
|  Yunlong Zhang | (principal executive officer) |  |
|  */s/ Zhimin Chen* | Chief Financial Officer | March 16, 2026 |
|  Zhimin Chen | (principal accounting officer) |  |

---

## Exhibit 10.4

**Exhibit 10.4**

**BW INDUSTRIAL HOLDINGS INC.**

**2026 EQUITY INCENTIVE PLAN**

1. Purposes of the Plan. 1

2. Shares Subject to the Plan. 1

3. Administration of the Plan. 2

4. Stock Options. 4

5. Restricted Stock. 6

6. Restricted Stock Units. 6

7. Stock Appreciation Rights. 7

8. Performance Stock Units and Performance Shares. 7

9. Performance Awards. 8

10. Outside Director Limitations. 8

11. Leaves of Absence/Transfer Between Locations/Change of Status. 8

12. Transferability of Awards. 9

13. Adjustments; Dissolution or Liquidation. 10

14. Change in Control. 10

15. Tax Matters. 12

16. Other Terms. 12

17. Term of Plan. 13

18. Amendment and Termination of the Plan. 13

19. Conditions Upon Issuance of Shares. 13

20. Stockholder Approval. 14

21. Definitions. 14

i

**1.** **Purposes of the Plan.** 

The purposes of this Plan are to attract and retain personnel for positions with the Company, to provide additional incentive to Employees, Directors, and Consultants (collectively, "Service Providers"), and to promote the success of the Company's business.

The Plan permits the grant of Incentive Stock Options to Employees and the grant of Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Stock Units, and Performance Awards to any Service Provider.

This Plan is intended to become effective upon the Company's initial public offering of its shares of Common Stock as further described in Section 17.

**2.** **Shares Subject to the Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Allocation of Shares to Plan</u>. The maximum aggregate number of Shares that may be issued under the Plan is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 1,500,000 Shares, plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any additional Shares that become available for issuance under the Plan under Sections 2(b) and 2(c). The Shares may be authorized but unissued Common Stock or Common Stock issued and then reacquired by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Automatic Share Reserve Increase</u>. The number of Shares available for issuance under the Plan will be increased on the first day of each Fiscal Year beginning with the 2027 Fiscal Year, in an amount equal to the lesser of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 5% of the total number of shares of all classes of the Company's common stock outstanding on the last day of the immediately preceding Fiscal Year, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a lower number of Shares determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Lapsed Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Options and Stock Appreciation Rights*. If an Option or Stock Appreciation Right expires or becomes unexercisable without having been exercised in full or is surrendered under an Exchange Program, the unissued Shares subject to the Option or Stock Appreciation Right will become available for future issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Stock Appreciation Rights*. Only Shares actually issued pursuant to a Stock Appreciation Right (i.e., the net Shares issued) will cease to be available under the Plan; all remaining Shares originally subject to the Stock Appreciation Right will remain available for future issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Full-Value Awards*. Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Stock Units, or stock-settled Performance Awards that are reacquired by the Company due to failure to vest or are forfeited to the Company will become available for future issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Withheld Shares*. Shares used to pay the Exercise Price of an Award or to satisfy tax withholding obligations related to an Award will become available for future issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Cash-Settled Awards*. If any portion of an Award under the Plan is paid to a Participant in cash rather than Shares, that cash payment will not reduce the number of Shares available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Incentive Stock Options</u>. The maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal 200% of the aggregate Share number stated in Section 2(a) plus, to the extent allowable under Code Section 422, any Shares that become available for issuance under the Plan under Sections 2(b) and 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Adjustment</u>. The numbers provided in Sections 2(a), 2(b), and 2(d) will be adjusted as a result of changes in capitalization referred to in Section 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Substitute Awards</u>. If the Committee grants Awards in substitution for equity compensation awards outstanding under a plan maintained by an entity acquired by or consolidated with the Company, the grant of those substitute Awards will not decrease the number of Shares available for issuance under the Plan.

**3.** **Administration of the Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Procedure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *General*. The Plan will be administered by the Board or a Committee (the "Administrator"). Different Administrators may administer the Plan with respect to different groups of Service Providers. The Board may retain the authority to concurrently administer the Plan with a Committee and may revoke the delegation of some or all authority previously delegated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Further Delegation*. To the extent permitted by Applicable Laws, the Board or a Committee may delegate to 1 or more Officers the authority to grant Awards to Employees of the Company or any of its Subsidiaries who are not Officers, provided that the delegation must specify any limitations on the authority required by Applicable Laws, including the total number of Shares that may be subject to the Awards granted by such Officer(s). Such delegation may be revoked at any time by the Board or Committee. Any such Awards will be granted on the form of Award Agreement most recently approved for use by the Board or a Committee made up solely of Directors, unless the resolutions delegating the authority permit the Officer(s) to use a different form of Award Agreement approved by the Board or a Committee made up solely of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Section 162(m)*. When necessary or desirable for an Award to qualify as "performance-based compensation" under Section 162(m) of the Code, the Committee shall include at least two persons who are "outside directors" (as defined under Section 162(m) of the Code) and at least two (or a majority if more than two then serve on the Committee) such "outside directors" shall approve the grant of such Award and determine (as applicable) the Performance Period and any Performance Factors upon which vesting or settlement of any portion of such Award is to be subject no later than the earlier of (a) the date 90 days after the commencement of the applicable Performance Period, and (b) the date on which 25% of the Performance Period has elapsed, and in any event at a time when the achievement of the applicable Performance Factors remains substantially uncertain. When required by Section 162(m) of the Code, prior to settlement of any such Award at least two (or a majority if more than two then serve on the Committee) such "outside directors" then serving on the Committee shall determine and certify in writing the extent to which such Performance Factors have been timely achieved and the extent to which the Shares subject to such Award have thereby been earned. Awards granted to Participants who are subject to Section 16 of the Exchange Act must be approved by two or more "non-employee directors" (as defined in the regulations promulgated under Section 16 of the Exchange Act). With respect to Participants whose compensation is subject to Section 162(m) of the Code, and provided that such adjustments are consistent with the regulations promulgated under Section 162(m) of the Code, the Committee may adjust the performance goals to account for changes in law and accounting and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls or hardships, including without limitation (i) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (ii) an event either not directly related to the operations of the Company or not within the reasonable control of the Company's management, or (iii) a change in accounting standards required by generally accepted accounting principles. No Participant will be eligible to receive more than 20% of Share Reserve Shares in any calendar year under this Plan pursuant to the grant of Awards except that new Employees of the Company or a member of the Company Group (including new Employees who are also officers and directors of the Company or a member of the Company Group) are eligible to receive up to a maximum of 30% of Share Reserve Shares in the calendar year in which they commence their employment, and no Participant shall be granted a cash settled award with a value greater than $2,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Powers of the Administrator</u>. Subject to the terms of the Plan, any limitations on delegations specified by the Board, and any requirements imposed by Applicable Laws, the Administrator will have the authority, in its sole discretion, to make any determinations and perform any actions deemed necessary or advisable to administer the Plan including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to determine the Fair Market Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to approve forms of Award Agreements for use under the Plan (provided that all forms of Award Agreement must be approved by the Board or the Committee of Directors acting as the Administrator);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to select the Service Providers to whom Awards may be granted and grant Awards to such Service Providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to determine the number of Shares to be covered by each Award granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to determine the terms and conditions, consistent with the Plan, of any Award granted. Such terms and conditions may include, but are not limited to, the Exercise Price, the time(s) when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating to an Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to institute and determine the terms and conditions of an Exchange Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to interpret the Plan and make any decisions necessary to administer the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) to establish, amend and rescind rules relating to the Plan, including rules relating to sub-plans established to satisfy laws of jurisdictions other than the United States or to qualify Awards for favorable tax treatment under laws of jurisdictions other than the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) to interpret, modify or amend each Award (subject to Section 18), including extending the Expiration Date and the post-termination exercisability period of such modified or amended Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) to allow Participants to satisfy tax withholding obligations in any manner permitted by Section 15;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) to delegate ministerial duties to any of the Company's employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) to authorize any person to take any steps and execute, on behalf of the Company, any documents required for an Award previously granted by the Administrator to be effective; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) to allow Participants to defer the receipt of the payment of cash or the delivery of Shares otherwise due to any such Participants under an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Status</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Unless a Participant is on a leave of absence approved by the Company as set forth in Section 11, the Participant's status as a Service Provider will end at midnight at the end of the last day the Participant actively provides services for a member of the Company Group (the "Termination of Status Date"). The Administrator has the sole discretion to determine the date on which a Participant stops actively providing services and whether a Participant may still be considered to be providing services while on a leave of absence and the Administrator may delegate this decision, other than with respect to Officers, to the Company's senior human resources officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) This termination of status as a Service Provider will occur regardless of the reason for such termination even if the termination is later found to be invalid, in breach of employment laws in the jurisdiction where Participant is providing services, or in violation of the terms of Participant's employment or service agreement, if any such agreement exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Unless otherwise expressly provided in an Award Agreement or otherwise determined by the Administrator, a Participant's right to vest in any Award under the Plan will cease as of the Termination of Status Date and will not be extended by any notice period, whether arising under contract, statute or common law, including any period of "garden leave" or similar period mandated under employment laws in the jurisdiction where the Participant is providing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Grant Date</u>. The grant date of an Award ("Grant Date") will be the date that the Administrator makes the determination granting such Award or may be a later date if such later date is designated by the Administrator on the date of the determination or under an automatic grant policy. Notice of the determination will be provided to each Participant within a reasonable time after the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver</u>. The Administrator may waive any terms, conditions, or restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Fractional Shares</u>. Except as otherwise provided by the Administrator, any fractional Shares that result from the adjustment of Awards will be canceled. Any fractional Shares that result from vesting percentages will be accumulated and vested on the date that an accumulated full Share is vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Electronic Delivery</u>. The Company may deliver by e-mail or other electronic means (including posting on a website maintained by the Company or by a third party under contract with the Company or another member of the Company Group) all documents relating to the Plan or any Award and all other documents that the Company is required to deliver to its security holders (including prospectuses, annual reports, and proxy statements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Choice of Law; Choice of Forum</u>. The Plan, all Awards, and all determinations made, and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under this Plan, a Participant's acceptance of an Award is his or her consent to the jurisdiction of the State of Delaware, and agreement that any such litigation will be conducted in Delaware Court of Chancery, or the federal courts for the United States for the District of Delaware, and no other courts, regardless of where a Participant's services are performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Effect of Administrator's Decision</u>. The Administrator's decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards.

**4.** **Stock Options.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Option Award Agreement</u>. Each Option will be evidenced by an Award Agreement that will specify the number of Shares subject to the Option, its per share exercise price ("Exercise Price"), its Expiration Date, and such other terms and conditions as the Administrator determines. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. An Option not designated as an Incentive Stock Option is a Nonstatutory Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. The Exercise Price for the Shares to be issued upon exercise of an Option will be determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Form of Consideration</u>. The Administrator will determine the acceptable forms of consideration for exercising an Option and those forms of consideration will be described in the Award Agreement. The consideration may consist of any combination of the following, to the extent permitted by Applicable Laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) check or wire transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promissory note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) other Shares that have a fair market value on the date of surrender equal to the aggregate Exercise Price of the Shares as to which such Option will be exercised. To the extent not prohibited by the Administrator, this shall include the ability to tender Shares to exercise the Option and then use the Shares received on exercise to exercise the Option with respect to additional Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) consideration received by the Company under a cashless exercise arrangement (whether through a broker or otherwise) implemented by the Company for the exercise of Options that has been approved by the Board or a Committee of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) consideration received by the Company under a net exercise program under which Shares are withheld from otherwise deliverable Shares that has been approved by the Board or a Committee of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other consideration or method of payment to issue Shares (provided that other forms of considerations may only be approved by the Board or a Committee of Directors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Incentive Stock Option Limitations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Exercise Price of an Incentive Stock Option may not be less than 100% of the Fair Market Value on the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent that the aggregate fair market value of the shares with respect to which incentive stock options under Code Section 422(b) are exercisable for the first time by a Participant during any calendar year (under all plans and agreements of the Company Group) exceeds $100,000, the incentive stock options whose value exceeds $100,000 will be treated as nonstatutory stock options. Incentive stock options will be considered in the order in which they were granted. For this purpose, the fair market value of the shares subject to an option will be determined as of the grant date of each option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Expiration Date of an Incentive Stock Option will be the day prior to the 10th anniversary of the Grant Date, or any earlier date provided in the Award Agreement, subject to clause (iv) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The following rules apply to Incentive Stock Options granted to Participants who own stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Expiration Date of the Incentive Stock Option may not be after the day prior to the 5th anniversary of the Grant Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Exercise Price may not be less than 110% of the Fair Market Value on the Grant Date.

If an Option is designated in the Administrator action that granted it as an Incentive Stock Option, but the terms of the Option do not comply with Sections 4(d)(iv)(1) and 4(d)(iv)(2), then the Option will not qualify as an Incentive Stock Option. All Options granted under the Plan are Nonstatutory Stock Options unless specifically designated as Incentive Stock Options in the Award Agreement pursuant to which such Options are granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Exercise of Option</u>. An Option is exercised when the Company receives: (i) a notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes). Shares issued upon exercise of an Option will be issued in the name of the Participant. Until the Shares are issued (as evidenced by the entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, despite the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. An Option may not be exercised for a fraction of a Share. Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for purchase under the Option, by the number of Shares as to which the Option is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Expiration of Options</u>. Subject to Section 4(d), an Option's Expiration Date will be set forth in the Award Agreement. An Option may expire before its expiration date under Sections 14 or 16(b) or under the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Tolling of Expiration</u>. If exercising an Option prior to its expiration is not permitted because of Applicable Laws, other than the rules of any stock exchange or quotation system on which the Common Stock is listed or quoted, the Option will remain exercisable until 30 days after the first date on which exercise would no longer be prevented by such provisions. If this would result in the Option remaining exercisable past its Expiration Date, then it will remain exercisable only until the end of the later of (x) the first day on which its exercise would not be prevented by Section 19(a) and (y) its Expiration Date.

**5.** **Restricted Stock.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restricted Stock Award Agreement</u>. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction (if any), the number of Shares granted, and such other terms and conditions as the Administrator determines. Unless the Administrator determines otherwise, Shares of Restricted Stock will be held in escrow until the end of the Period of Restriction applicable to such Shares. All grants of Restricted Stock and interpretative decisions about Restricted Stock may only be made by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Restrictions</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in this Section 5 or the Award Agreement, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated until the end of the Period of Restriction applicable to such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the Period of Restriction, Service Providers holding Shares of Restricted Stock may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) During the Period of Restriction, Service Providers holding Shares of Restricted Stock will not be entitled to receive dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise. If the Administrator provides that dividends and distributions will be received and any such dividends or distributions are paid in cash they will be subject to the same provisions regarding forfeitability as the Shares of Restricted Stock with respect to which they were paid and if such dividend or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid and, unless the Administrator determines otherwise, the Company will hold such Shares until the restrictions on the Shares of Restricted Stock with respect to which they were paid have lapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Except as otherwise provided in this Section 5 or an Award Agreement, Shares of Restricted Stock covered by each Restricted Stock Award made under the Plan will be released from escrow when practicable after the last day of the applicable Period of Restriction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Administrator may impose, prior to grant, or remove any restrictions on Shares of Restricted Stock.

**6.** **Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restricted Stock Unit Award Agreement</u>. Each Award of Restricted Stock Units will be evidenced by an Award Agreement that will specify the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting Criteria and Other Terms</u>. The Administrator will set vesting criteria that, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit, or individual goals (that may include continued employment or service) or any other basis determined by the Administrator in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Earning Restricted Stock Units</u>. Upon meeting the applicable vesting criteria, the Participant will have earned the Restricted Stock Units and will be paid as determined in Section 6(d). The Administrator may reduce or waive any criteria that must be met to earn the Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Form and Timing of Payment</u>. Payment of earned Restricted Stock Units will be made when practicable after the date set forth in the Award Agreement and determined by the Administrator. The Administrator may settle earned Restricted Stock Units in cash, Shares, or a combination of both.

**7.** **Stock Appreciation Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Appreciation Right Award Agreement</u>. Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the Exercise Price (which may not be less than 100% of Fair Market Value on the Grant Date), its Expiration Date, the conditions of exercise, and such other terms and conditions as the Administrator determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Stock Appreciation Right Amount</u>. When a Participant exercises a Stock Appreciation Right, he or she will be entitled to receive a payment from the Company equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the difference between the Fair Market Value on the date of exercise and the Exercise Price multiplied by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the number of Shares with respect to which the Stock Appreciation Right is exercised.

Payment upon Stock Appreciation Right exercise may be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator. Shares issued upon exercise of a Stock Appreciation Right will be issued in the name of the Participant. Until Shares are issued (as evidenced by the entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to a Stock Appreciation Right, despite the exercise of the Stock Appreciation Right. The Company will issue (or cause to be issued) such Shares promptly after the Stock Appreciation Right is exercised. A Stock Appreciation Right may not be exercised for a fraction of a Share.

Exercising a Stock Appreciation Right in any manner will decrease (x) the number of Shares thereafter available under the Stock Appreciation Right by the number of Shares as to which the Stock Appreciation Right is exercised and (y) the number of Shares thereafter available under the Plan by the number of Shares issued upon such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expiration of Stock Appreciation Rights</u>. A Stock Appreciation Right's Expiration Date will be set forth in the Award Agreement. A Stock Appreciation Right may expire before its expiration date under Sections 14 or 16(b) or under the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tolling of Expiration</u>. If exercising a Stock Appreciation Right prior to its expiration is not permitted because of Applicable Laws, other than the rules of any stock exchange or quotation system on which the Common Stock is listed or quoted, the Stock Appreciation Right will remain exercisable until 30 days after the first date on which exercise would no longer be prevented by such provisions. If this would result in the Stock Appreciation Right remaining exercisable past its Expiration Date, then it will remain exercisable only until the end of the later of (x) the first day on which its exercise would not be prevented by Section 19(a) and (y) its Expiration Date.

**8.** **Performance Stock Units and Performance Shares.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Award Agreement</u>. Each Award of Performance Stock Units/Shares will be evidenced by an Award Agreement that will specify the time period during which the performance objectives or other vesting provisions will be measured which shall not exceed 5 years ("Performance Period") and the material terms of the Award. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service) or any other basis determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Value of Performance Stock Units/Shares</u>. Each Performance Stock Unit will have an initial value established by the Administrator on or before the Grant Date. Each Performance Share will have an initial value equal to the Fair Market Value on the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Performance Objectives and Other Terms</u>. The Administrator will set performance objectives or other vesting provisions (that may include continued employment or service). These objectives or vesting provisions may determine the number or value of Performance Stock Units/Shares paid out.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Earning of Performance Stock Units/Shares</u>. After an applicable Performance Period has ended, the holder of Performance Stock Units/Shares will be entitled to receive a payout of the number of Performance Stock Units/Shares earned by the Participant over the Performance Period. The Administrator may reduce or waive any performance objectives or other vesting provisions for such Performance Stock Unit/Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment of Performance Stock Units/Shares</u>. Payment of earned Performance Stock Units/Shares will be made when practicable after the end of the applicable Performance Period. Payment with respect to earned Performance Stock Units/Shares may be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator.

**9.** **Performance Awards.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Award Agreement</u>. Each Performance Award will be evidenced by an Award Agreement that will specify the Performance Period and the material terms of the Award. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service) or any other basis determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Value of Performance Awards</u>. Each Performance Award's threshold, target, and maximum payout values will be established by the Administrator on or before the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Performance Objectives and Other Terms</u>. The Administrator will set performance objectives or other vesting provisions (that may include continued employment or service). These objectives or vesting provisions will determine the value of the payout for the Performance Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Earning of Performance Awards</u>. After an applicable Performance Period has ended, the holder of a Performance Award will be entitled to receive a payout for the Performance Award earned by the Participant over the Performance Period. The Administrator may reduce or waive any performance objectives or other vesting provisions for such Performance Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment of Performance Awards</u>. Payment of earned Performance Awards will be made when practicable after the end of the applicable Performance Period. Payment with respect to earned Performance Awards will be made in cash, in Shares of equivalent value, or any combination of cash and Shares, with the determination of form of payment made by the Administrator at the time of payment.

**10.** **Outside Director Limitations.** 

No Outside Director may be granted, in any Fiscal Year, Awards with a grant date fair value (determined under U.S. generally accepted accounting principles) of more than $1,000,000, increased to $2,000,000 in connection with his or her initial service as an Outside Director. Awards granted to an individual while he or she was an Employee, or while he or she was a Consultant but not an Outside Director, will not count for purpose of this limitation.

**11.** **Leaves of Absence/Transfer Between Locations/Change of Status.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Unless otherwise provided by the Administrator, a Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or other member of the Company Group employing such Employee or (ii) any transfer between locations of the Company or members of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Vesting</u>. Unless a leave policy approved by the Administrator provides otherwise or it is otherwise required by Applicable Law, vesting of Awards granted under the Plan will continue only for Participants on an approved leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incentive Stock Option Status</u>. If a Participant's leave of absence approved by the Company or other member of the Company Group employing such Employee exceeds 3 months and reemployment upon expiration of such leave is not guaranteed by statute or contract, then 3 months following the 1st day of such leave the Participant will no longer be an employee for incentive stock option purposes. If reemployment upon expiration of such leave of absence is not guaranteed by statute or contract, then 6 months following the 1st day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Protected Leaves</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any leave of absence by a Participant will be subject to any Applicable Laws that apply to leaves of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For a Participant on a military leave, if required by Applicable Laws, vesting will continue for the longest period that vesting continues under any other statutory or Company-approved leave of absence. When a Participant returns from military leave (under conditions that would entitle him or her to such protection under the Uniformed Services Employment and Reemployment Rights Act), the Participant will be given vesting credit to the same extent as if the Participant had continued to provide services to the Company or other member of the Company Group, as applicable, through the military leave.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Changes in Status</u>. If a Participant who is an Employee has a reduction in hours worked, the Administrator may unilaterally:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) make a corresponding reduction in the number of Shares or cash amount subject to any portion of an Award that is scheduled to vest or become payable after the date of such extend leave or reduction in hours; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in lieu of or in combination with such a reduction, extend the vesting or payment schedule applicable to such Award.

If any such reduction occurs, the Participant will have no right to any portion of the Award that is reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Determinations</u>. The effect of a Company-approved leave of absence, a transfer, or a Participant's reduction in hours of employment or service on the vesting of an Award shall be determined, under policies reviewed by the Administrator, by the Company's senior human resources officer or other person performing that function or, with respect to Directors or Officers by the Compensation Committee of the Board, and any such determination will be final.

**12.** **Transferability of Awards.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General Rule</u>. Unless determined otherwise by the Administrator, or otherwise required by Applicable Laws, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, the Award will be limited by any additional terms and conditions imposed by the Administrator. Any unauthorized transfer of an Award will be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Domestic Relations Orders</u>. If approved by the Administrator, an Award may be transferred under a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulations Section 1.421-1(b)(2). An Incentive Stock Option may be converted into a Nonstatutory Stock Option as a result of such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Limited Transfers for the Benefit of Family Members</u>. The Administrator may permit an Award or Share issued under this Plan to be assigned or transferred subject to the applicable limitations, set forth in the General Instructions to Form S-8 Registration Statement under the Securities Act, if applicable, and any other Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Permitted Transferees</u>. Any individual or entity to whom an Award is transferred will be subject to all of the terms and conditions applicable to the Participant who transferred the Award, including the terms and conditions in this Plan and the Award Agreement. If an Award is unvested then the service of the Participant will continue to determine whether the Award will vest and any Expiration Date.

**13.** **Adjustments**; **Dissolution or Liquidation.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Adjustments</u>. If any extraordinary dividend or other extraordinary distribution (whether in cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, issuance of warrants or other rights to acquire securities of the Company, other change in the corporate structure of the Company affecting the Shares, or any similar equity restructuring transaction, as that term is used in Statement of Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any of its successors) affecting the Shares occurs (including, without limitation, a Change in Control), the Administrator, to prevent diminution or enlargement of the benefits or potential benefits intended to be provided under the Plan, will adjust the number and class of shares that may be delivered under the Plan and/or the number, class, and price of shares covered by each outstanding Award, and the numerical Share limits in Section 2 in such a manner as it deems equitable. Notwithstanding the foregoing, the conversion of any convertible securities of the Company and ordinary course repurchases of shares or other securities of the Company will not be treated as an event that will require adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dissolution or Liquidation</u>. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant when practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

**14.** **Change in Control.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Administrator Discretion</u>. If a Change in Control or a merger of the Company with or into another corporation or other entity occurs, each outstanding Award will be treated as the Administrator determines, including, without limitation, that such Award be continued by the successor corporation or a Parent or Subsidiary of the successor corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Identical Treatment Not Required</u>. The Administrator need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Participants. The Administrator may take different actions with respect to the vested and unvested portions of an Award. The Administrator will not be required to treat all Awards similarly in the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Continuation</u>. An Award will be considered continued if, following the Change in Control or merger:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the transaction, the consideration (whether stock, cash, or other securities or property) received in the transaction by holders of Shares for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration received by the holders of a majority of the outstanding Shares); provided that if the consideration received in the transaction is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon exercising an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Stock Unit, Performance Share or Performance Award, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Award is terminated in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant's rights as of the date of the occurrence of the transaction. Any such cash or property may be subjected to any escrow applicable to holders of Common Stock in the Change of Control. If as of the date of the occurrence of the transaction the Administrator determines that no amount would have been attained upon the exercise of such Award or realization of the Participant's rights, then such Award may be terminated by the Company without payment. The amount of cash or property can be subjected to vesting and paid to the Participant over the original vesting schedule of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything in this Section 14(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant's consent; provided, however, a modification to such performance goals only to reflect the successor corporation's post-transaction corporate structure will not invalidate an otherwise valid Award assumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrator will have authority to modify Awards in connection with a Change in Control or merger:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in a manner that causes them to lose their tax-preferred status,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to terminate any right a Participant has to exercise an Option prior to vesting in the Shares subject to the Option (i.e., "early exercise"), so that following the closing of the transaction the Option may only be exercised to the extent it is vested;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to reduce the Exercise Price subject to the Award in a manner that is disproportionate to the increase in the number of Shares subject to the Award, as long as the amount that would be received upon exercise of the Award immediately before and immediately following the closing of the transaction is equivalent and the adjustment complies with Treasury Regulation Section 1.409A-1(b)(v)(D); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to suspend a Participant's right to exercise an Option during a limited period of time preceding and or following the closing of the transaction without Participant consent if such suspension is administratively necessary or advisable to permit the closing of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Continuation</u>. If the successor corporation does not continue for an Award (or some portion such Award), the Participant will fully vest in (and have the right to exercise) 100% of the then-unvested Shares subject to his or her outstanding Options and Stock Appreciation Rights, all restrictions on 100% of the Participant's outstanding Restricted Stock and Restricted Stock Units will lapse, and, regarding 100% of Participant's outstanding Awards with performance-based vesting, all performance goals or other vesting criteria will be treated as achieved at 100% of target levels and all other terms and conditions met. In no event will vesting of an Award accelerate as to more than 100% of the Award. If Options or Stock Appreciation Rights are not continued when a Change in Control or a merger of the Company with or into another corporation or other entity occurs, the Administrator will notify the Participant in writing or electronically that the Participant's vested Options or Stock Appreciation Rights (after considering the foregoing vesting acceleration, if any) will be exercisable for a period of time determined by the Administrator in its sole discretion and all of the Participant's Options or Stock Appreciation Rights will terminate upon the expiration of such period (whether vested or unvested).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Outside Director Awards</u>. With respect to Awards granted to an Outside Director that are continued, if on the date of or following such continuation the Participant's status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant that is not at the request of the acquirer, then the Participant will fully vest in and have the right to exercise Options and/or Stock Appreciation Rights as to all of the Shares underlying such Award, including those Shares not otherwise vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be treated as achieved at 100% of target levels and all other terms and conditions met.

**15.** **Tax Matters.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Withholding Requirements</u>. Prior to the delivery of any Shares or cash under an Award (or exercise thereof) or such earlier time as any tax withholding obligations are due, the Company may deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy any taxes (including the Participant's social tax obligations) required to be withheld with respect to such Award (or exercise thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Withholding Arrangements</u>. The Administrator, in its sole discretion and under such procedures as it may specify from time to time, may permit or may require a Participant to satisfy such tax withholding obligations, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable cash (including cash from the sale of Shares issued to Participant) or Shares having a fair market value equal to the minimum statutory amount required to be withheld or a greater amount if that would not result in unfavorable financial accounting treatment, (iii) delivering to the Company already-owned Shares having a fair market value equal to the minimum statutory amount required to be withheld, or (iv) requiring the Participant to engage in a cashless exercise transaction (whether through a broker or otherwise) implemented by the Company in connection with the Plan. The fair market value of the Shares to be withheld or delivered will be determined as of the date the taxes must be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance With Code Section 409A</u>. Except as otherwise determined by the Administrator, it is intended that Awards will be designed and operated so that they are either exempt from the application of Code Section 409A or comply with any requirements necessary to avoid the imposition of additional tax under Code Section 409A(a)(1)(B) so that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A and the Plan and each Award Agreement will be interpreted consistent with this intent. This Section 15(c) is not a guarantee to any Participant of the consequences of his or her Awards.

**16.** **Other Terms.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Effect on Employment or Service</u>. Neither the Plan nor any Award will confer upon a Participant any right regarding continuing the Participant's relationship as a Service Provider with the Company or member of the Company Group, nor will they interfere with the Participant's right, or the Participant's employer's right, to terminate such relationship with or without cause, to the extent permitted by Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Forfeiture Events</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All Awards granted under the Plan will be subject to recoupment under any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company's securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Laws. In addition, the Administrator may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Administrator determines necessary or appropriate, including but not limited to a reacquisition right regarding previously acquired Shares or other cash or property. Unless this Section 16(b) is specifically mentioned and waived in an Award Agreement or other document, no recovery of compensation under a clawback policy or otherwise will give a Participant the right to resign for "good reason" or "constructive termination" (or similar term) under any agreement with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrator may specify in an Award Agreement that the Participant's rights, payments, and benefits with respect to an Award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. In the event of termination of such Participant's status as Service Provider for Cause or any act by a Participant, whether before or after such Participant's Termination Status Date, that would constitute cause for termination of such Participant's status as a Service Provider, all Awards will terminate immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under securities laws, any Participant who (i) knowingly or through gross negligence engaged in the misconduct or who knowingly or through gross negligence failed to prevent the misconduct or (ii) is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, must reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document embodying such financial reporting requirement.

**17.** **Term of Plan.** 

Subject to Section 20, the Plan will become effective upon the business day immediately prior to the Registration Date. It will continue in effect until terminated under Section 18, but no Incentive Stock Options may be granted after 10 years from the date the Plan is adopted by the Board and Section 2(b) will operate only until the 10th anniversary of the date the Plan is adopted by the Board.

**18.** **Amendment and Termination of the Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment and Termination</u>. The Board or Compensation Committee of the Board may amend, alter, suspend, or terminate the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stockholder Approval</u>. The Company will obtain stockholder approval of any Plan amendment to the extent necessary or desirable to comply with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Consent of Participants Generally Required</u>. Subject to Section 18(d) below, no amendment, alteration, suspension or termination of the Plan or an Award under it will materially impair the rights of any Participant without a signed, written agreement between the Participant and the Company. Termination of the Plan will not affect the Administrator's ability to exercise the powers granted to it regarding Awards granted under the Plan prior to such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Exceptions to Consent Requirement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A Participant's rights will not be deemed to have been impaired by any amendment, alteration, suspension, or termination if the Administrator, in its sole discretion, determines that the amendment, alteration, suspension or termination taken as a whole, does not materially impair the Participant's rights; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Subject to any limitations of Applicable Laws, the Administrator may amend the terms of any one or more Awards without the affected Participant's consent even if it does materially impair the Participant's right if such amendment is done

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in a manner permitted under the Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to maintain the qualified status of the Award as an Incentive Stock Option under Code Section 422,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to change the terms of an Incentive Stock Option, if such change results in impairment of the Award only because it impairs the qualified status of the Award as an Incentive Stock Option under Code Section 422,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to clarify the manner of exemption from Code Section 409A or compliance with any requirements necessary to avoid the imposition of additional tax under Code Section 409A(a)(1)(B), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) to comply with other Applicable Laws.

**19.** **Conditions Upon Issuance of Shares.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Legal Compliance</u>. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws. If required by the Administrator, issuance will be further subject to the approval of counsel for the Company with respect to such compliance. The inability of the Company to obtain authority from any regulatory body having jurisdiction or to complete or comply with the requirements of any Applicable Laws will relieve the Company of any liability regarding the failure to issue or sell such Shares as to which such authority, registration, qualification or rule compliance was not obtained and the Administrator reserves the authority, without the consent of a Participant, to terminate or cancel Awards with or without consideration in such a situation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Investment Representations</u>. As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant during any such exercise that the Shares are being purchased only for investment and with no present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Failure to Accept Award</u>. If a Participant has not accepted an Award or has not taken all administrative and other steps (e.g. setting up an account with a broker designated by the Company) necessary for the Company to issue Shares upon the vesting, exercise, or settlement of the Award prior to the first date the Shares subject such Award are scheduled to vest, then the Award will be cancelled on such date and the Shares subject to such Award immediately will revert to the Plan for no additional consideration unless otherwise provided by the Administrator.

**20.** **Stockholder Approval.** 

The Plan will be subject to approval by the stockholders of the Company within 12 months after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws.

**21.** **Definitions.** 

The following definitions are used in this Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Applicable Laws" means the requirements relating to the administration of equity-based awards and the related issuance of Shares under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and, only to the extent applicable with respect to an Award or Awards, the tax, securities or exchange control laws of any jurisdictions other than the United States where Awards are, or will be, granted under the Plan. Reference to a section of an Applicable Law or regulation related to that section shall include such section or regulation, any valid regulation issued under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Award" means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Stock Units, Performance Shares, or Performance Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Award Agreement" means the written or electronic agreement setting forth the terms applicable to an Award granted under the Plan. The Award Agreement is subject to the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Board" means the sole director or the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Cause" means (i) the commission of an act of theft, embezzlement, fraud, or dishonesty, (ii) a breach of fiduciary duty to the Company or a member of the Company Group including misappropriation of any Company corporate opportunity, (iii) violation of the terms of Employee's Confidential Information, Assignment of Inventions, and Noncompetition Agreement with the Company, (iv) final conviction of a felony that adversely affects the Company (with all appeals exhausted), or (v) a failure to materially perform the customary duties of Employee's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Change in Control" means the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group ("Person"), acquires ownership of the stock of the Company that, with the stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company; provided, that for this subsection, the acquisition of additional stock by any one Person, who prior to such acquisition is considered to own more than 50% of the total voting power of the stock of the Company will not be considered a Change in Control. Further, if the stockholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company's voting stock immediately prior to the change in ownership, direct or indirect beneficial ownership of 50% or more of the total voting power of the stock of the Company, such event shall not be considered a Change in Control under this Section 21(e)(i). For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A change in the effective control of the Company which occurs on the date a majority of members of the Board is replaced during any 12-month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the appointment or election. For this Section 21(e)(ii), if any Person is in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A change in the ownership of a substantial portion of the Company's assets which occurs on the date that any Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, that for this Section 21(e)(iii), the following will not constitute a change in the ownership of a substantial portion of the Company's assets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a transfer to an entity controlled by the Company's stockholders immediately after the transfer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a transfer of assets by the Company to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company's stock,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a Person, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a Person described in subsections 21(e)(iii)(2)(A) to 21(e)(iii)(2)(C).

For this definition, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. For this definition, persons will be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

A transaction will not be a Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) unless the transaction qualifies as a change in control event within the meaning of Code Section 409A; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if its sole purpose is to (1) change the state of the Company's incorporation, or (2) create a holding company owned in substantially the same proportions by the persons who held the Company's securities immediately before such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Code" means the Internal Revenue Code of 1986. Reference to a section of the Code or regulation related to that section shall include such section or regulation, any valid regulation issued under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Committee" means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Common Stock" means the common stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "Company" means BW Industrial Holdings Inc., a Delaware corporation, or any of its successors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "Company Group" means the Company, any Parent or Subsidiary of the Company, and any entity that, from time to time and at the time of any determination, directly or indirectly, is in control of, is controlled by or is under common control with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Consultant" means any natural person engaged by a member of the Company Group to render bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital raising transaction, and (ii) do not directly promote or maintain a market for the Company's securities. A Consultant must be a person to whom the issuance of Shares registered on Form S-8 under the Securities Act is permitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Director" means a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Disability" means, with respect to a Participant, the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months, as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and will be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "Employee" means any person, including Officers and Directors, employed by the Company or any member of the Company Group. However, with respect to Incentive Stock Options, an Employee must be employed by the Company or any Parent or Subsidiary of the Company at the time of grant. Notwithstanding Stock Options granted to individuals not providing services to the Company or a subsidiary of the Company should be carefully structured to comply with the payment timing rule of Code Section 409A. Neither service as a Director nor payment of a director's fee by the Company will constitute "employment" by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "Exchange Act" means the U.S. Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "Exchange Program" means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for awards of the same type (which may have higher or lower Exercise Prices and different terms), awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the Exercise Price of an outstanding Award is increased or reduced. The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "Expiration Date" means the last possible day on which an Option or Stock Appreciation Right may be exercised. Any exercise must be completed by midnight Central Time between the Expiration Date and the following date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "Fair Market Value" means, as of any date, the value of a Share, determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock Market, the Fair Market Value will be the closing sales price for a Share (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported by such source as the Administrator determines to be reliable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date on the last Trading Day such bids and asks were reported), as reported by such source as the Administrator determines to be reliable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For any Awards granted on the Registration Date, the Fair Market Value will be the initial price to the public set forth in the final prospectus included within the registration statement in Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Company's Common Stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Absent an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

Notwithstanding the foregoing, if the determination date for the Fair Market Value occurs on a weekend, holiday or other non-Trading Day, the Fair Market Value will be the price as determined under subsections (i) or (ii) above on the immediately preceding Trading Day, unless otherwise determined by the Administrator. In addition, for purposes of determining the fair market value of shares for any reason other than the determination of the Exercise Price of Options or Stock Appreciation Rights, fair market value will be determined by the Administrator in a manner compliant with Applicable Laws and applied consistently for such purpose. Note that the determination of fair market value for purposes of tax withholding may be made in the Administrator's sole discretion subject to Applicable Laws and is not required to be consistent with the determination of Fair Market Value for other purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "Fiscal Year" means a fiscal year of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "Incentive Stock Option" means an Option that is intended to qualify and does qualify as an incentive stock option within the meaning of Code Section 422.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Nonstatutory Stock Option" means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "Option" means a stock option to acquire Shares granted under Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "Outside Director" means a Director who is not an Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Code Section 424(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "Participant" means the holder of an outstanding Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "Performance Awards" means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which will be settled for cash, Shares or other securities or a combination of the foregoing under Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "Performance Factors" means one or more of the following: (1) earnings (including earnings per share and net earnings); (2) earnings before interest, taxes and depreciation; (3) earnings before interest, taxes, depreciation and amortization; (4) earnings before interest, taxes, depreciation, amortization and legal settlements; (5) earnings before interest, taxes, depreciation, amortization, legal settlements and other income (expense); (6) earnings before interest, taxes, depreciation, amortization, legal settlements, other income (expense) and stock-based compensation; (7) earnings before interest, taxes, depreciation, amortization, legal settlements, other income (expense), stock-based compensation and changes in deferred revenue; (8) earnings before interest, taxes, depreciation, amortization, legal settlements, other income (expense), stock-based compensation, other non-cash expenses and changes in deferred revenue; (9) total stockholder return; (10) return on equity or average stockholder's equity; (11) return on assets, investment, or capital employed; (12) stock price; (13) margin (including gross margin); (14) income (before or after taxes); (15) operating income; (16) operating income after taxes; (17) pre-tax profit; (18) operating cash flow; (19) sales or revenue targets; (20) increases in revenue or product revenue; (21) expenses and cost reduction goals; (22) improvement in or attainment of working capital levels; (23) economic value added (or an equivalent metric); (24) market share; (25) cash flow; (26) cash flow per share; (27) cash balance; (28) cash burn; (29) cash collections; (30) share price performance; (31) debt reduction; (32) implementation or completion of projects or processes (including, without limitation, discovery of a preclinical drug candidate, recommendation of a drug candidate to enter a clinical trial, clinical trial initiation, clinical trial enrollment and dates, clinical trial results, regulatory filing submissions (such as IND, BLA and NDA), regulatory filing acceptances, regulatory or advisory committee interactions, regulatory approvals, and product supply); (33) stockholders' equity; (34) capital expenditures; (35) financings; (36) operating profit or net operating profit; (37) workforce diversity; (38) growth of net income or operating income; (39) employee retention; (40) initiation of studies by specific dates; (41) budget management; (42) submission to, or approval by, a regulatory body (including, but not limited to the FDA) of an applicable filing or a product; (43) regulatory milestones; (44) progress of internal research or development programs; (45) progress of partnered programs; (46) partner satisfaction; (47) timely completion of clinical trials; (48) milestones related to research development (including, but not limited to, preclinical and clinical studies), product development and manufacturing; (49) expansion of sales in additional geographies or markets; (50) research progress, including the development of programs; (51) strategic partnerships or transactions (including in-licensing and out-licensing of intellectual property; (52) filing of patent applications and granting of patents; and (53) and to the extent that an award is not intended to comply with Section 162(m) of the Code, other measures of performance selected by our board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "Performance Share" means an Award denominated in Shares which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine under Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "Performance Stock Units" means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing under Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "Period of Restriction" means the period during which the transfer of Shares of Restricted Stock is subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "Plan" means this 2026 Equity Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "Registration Date" means the effective date of the first registration statement filed by the Company and declared effective under Section 12(b) of the Exchange Act, with respect to any class of the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Restricted Stock" means Shares issued under an Award granted under Section 5 or issued as a result of the early exercise of an Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "Restricted Stock Unit" means a bookkeeping entry representing an amount equal to the Fair Market Value, granted under Section 6. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "Securities Act" means Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "Service Provider" means an Employee, Director, or Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "Share" means a share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "Stock Appreciation Right" means an Award granted (alone or in connection with an Option) under Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "Subsidiary" means a "subsidiary corporation" as defined in Code Section 424(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "Trading Day" means a day on which the applicable stock exchange or national market system is open for trading.

**BW INDUSTRIAL HOLDINGS INC.<br> 2026 EQUITY INCENTIVE PLAN**

**NOTICE OF STOCK OPTION GRANT AND STOCK OPTION AGREEMENT**

Capitalized terms that are not defined in this Notice of Stock Option Grant and Stock Option Agreement (the "**Notice of Grant**"), the Terms and Conditions of Stock Option Grant, or any of the exhibits to these documents (all together, the "**Agreement**") have the meanings given to them in the BW Industrial Holdings Inc. 2026 Equity Incentive Plan (the "**Plan**").

The Participant has been granted an Option according to the terms below and subject to the terms and conditions of the Plan and this Agreement:

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| | |
|:---|:---|
| Participant |  |
| Grant Number |  |
| Grant Date |  |
| Vesting Start Date |  |
| Number of Shares Granted |  |
| Exercise Price per Share |  |
| Total Exercise Price |  |
| Type of Option | _ Incentive Stock Option<br> _ Nonstatutory Stock Option |
| Expiration Date |  |

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<u>Vesting Schedule</u>:

Unless the vesting is accelerated, this Option will be exercisable to the extent vested on the following schedule:

If the Participant continues to be a Service Provider through each such date, 25% of this Option will vest on the 1-year anniversary of the Vesting Start Date, and 1/48th of this Option will vest each month after that anniversary on the same day of the month as the Vesting Start Date (or if there is no corresponding day in a given month, then on the last day of that month). All vesting will be rounded in accordance with Section 3(f) of the Plan.

If the Participant ceases to be a Service Provider for any or no reason before he or she fully vests in this Option, the unvested portion of this Option will terminate according to the terms of Section 4 of this Agreement.

<u>Exercise of Option</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Participant dies or his or her status as a Service Provider is terminated due to his or her Disability, the vested portion of this Option will remain exercisable for 12 months after the Termination of Status Date. For any other termination of status as a Service Provider, the vested portion of this Option will remain exercisable for [3 months][12 months][5 years]\* after the Termination of Status Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there is a Change in Control or merger of the Company, Section 14 of the Plan may further limit this Option's exercisability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Option will not be exercisable after the Expiration Date, unless Section 4(g) of the Plan (which tolls expiration in very limited cases when there are legal restrictions on exercise) permits later exercise.

The Participant's signature below indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) He or she agrees that this Option is granted under and governed by the terms and conditions of the Plan and this Agreement, including their exhibits and appendices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) He or she understands that the Company is not providing any tax, legal, or financial advice and is not making any recommendations regarding his or her participation in the Plan or his or her acquisition or sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) He or she has reviewed the Plan and this Agreement, has had an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to signing this Agreement, and fully understands all provisions of the Plan and Agreement. He or she will consult with his or her own personal tax, legal, and financial advisors before taking any action related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) He or she has read and agrees to each provision of Section 11 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) He or she will notify the Company of any change to the contact address below.

PARTICIPANT

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| |
|:---|
| Signature |
| Address: |

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*\** *The post-service termination expiration date on vested stock options has varied historically in the Form Of stock option grant agreement over the years and depending on title/role of the Participant within the Company.*

**<u>EXHIBIT A</u>**

**TERMS AND CONDITIONS OF STOCK OPTION GRANT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant</u>. The Company grants the Participant an Option to purchase Shares of Common Stock as described in the Notice of Grant. If there is a conflict between the Plan, this Agreement, or any other agreement with the Participant governing this Option, those documents will take precedence and prevail in the following order: (a) the Plan, (b) the Agreement, and (c) any other agreement between the Company and the Participant governing this Option.

If the Notice of Grant designates this Option as an Incentive Stock Option ("**ISO**"), this Option is intended to qualify as an ISO under Code Section 422. Even if this Option is designated an ISO, to the extent it first become exercisable as to more than $100,000 in any calendar year, the portion in excess of $100,000 is not an ISO under Code Section 422(d) and that portion will be a Nonstatutory Stock Option ("**NSO**"). In addition, if the Participant exercises the Option after 3 months have passed since he or she ceased to be an employee of the Company or a Parent or Subsidiary of the Company, it will no longer be an ISO. If there is any other reason this Option (or a portion of it) will not qualify as an ISO, to the extent of such nonqualification, the Option will be an NSO. The Participant understands that he or she will have no recourse against the Administrator, any member of the Company Group, or any officer or director of a member of the Company Group if any portion of this Option is not an ISO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Vesting</u>. This Option will only be exercisable (also referred to as vested) under the Vesting Schedule in the Notice of Grant, Section 3 of this Agreement, or Section 14 of the Plan. Shares scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest unless the Participant continues to be a Service Provider until the time such vesting is scheduled to occur. The Administrator may modify the Vesting Schedule according to its authority under the Plan if the Participant takes a leave of absence or has a reduction in hours worked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Administrator Discretion</u>. The Administrator may accelerate the vesting of any portion of this Option. In that case, this Option will be vested as of the date and to the extent specified by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Forfeiture upon Termination of Status as a Service Provider</u>. Upon the Participant's termination as a Service Provider for any reason other than death or Disability, this Option will immediately stop vesting, and on the day that is [3 months][12 months][5 years]\* following the Termination of Status Date (or any earlier date on or following the Termination of Status Date determined by the Administrator), any portion of this Option that has not been exercised will be immediately forfeited for no consideration, subject to Applicable Laws. In the event of a Participant's Disability or death, vested Options shall be exercisable for 12 months after the Participants termination as a Service Provider (or until the Expiration Date if earlier). The date of the Participant's termination as a Service Provider is detailed in Section 3(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Death of Participant</u>. Any distribution or delivery to be made to the Participant under this Agreement will, if he or she is then deceased, be made to the administrator or executor of his or her estate or, if the Administrator permits, his or her designated beneficiary. Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations that apply to the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Exercise of Option</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Right to Exercise.** This Option may be exercised only before its Expiration Date and only under the Plan and this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Method of Exercise**. To exercise this Option, the Participant must deliver and the Administrator must receive an exercise notice according to procedures determined by the Administrator. The exercise notice must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) state the number of Shares as to which this Option is being exercised ("**Exercised Shares**"),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) make any representations or agreements required by the Company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) be accompanied by a payment of the total exercise price for all Exercised Shares, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) be accompanied by a payment of all required Tax-Related Items (defined in Section 8(a) of this Agreement) for all Exercised Shares.

The Option is exercised when both the exercise notice and payments due under Sections 6(b)(iii) and 6(b)(iv) have been received by the Company for all Exercised Shares. The Administrator may designate a particular exercise notice to be used, but until a designation is made, the exercise notice attached to this Agreement as <u>Exhibit C</u> may be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Method of Payment</u>. The Participant may pay the exercise price for Exercised Shares by any of the following methods or a combination of methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) wire transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) consideration received by the Company under a formal cashless exercise program adopted by the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) surrender of other Shares, as long as the Company determines that accepting such Shares does not result in any adverse accounting consequences to the Company. If Shares are surrendered, the value of those Shares will be the Fair Market Value for those Shares on the date they are surrendered.

A non-U.S. resident's methods of exercise may be restricted by the terms and condition of any appendix to this Agreement for the Participant's country (the "**Appendix**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Tax Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Tax Withholding.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Shares will be issued to the Participant until he or she makes satisfactory arrangements (as determined by the Administrator) for the payment of income, employment, social security, payroll tax, fringe benefit tax, payment on account, or other tax-related items related to his or her participation in the Plan and legally applicable to him or her that the Administrator determines must be withheld ("**Tax-Related Items**"), including those that result from the grant, vesting, or exercise of this Option, the subsequent sale of Shares acquired under this Option or the receipt of any dividends. If the Participant is a non-U.S. employee, the method of payment of Tax-Related Items may be restricted by any Appendix. If the Participant fails to make satisfactory arrangements for the payment of any Tax-Related Items under this Agreement at the time of an attempted Option exercise, the Company may refuse to honor the exercise and refuse to deliver the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company has the right (but not the obligation) to satisfy any Tax-Related Items by withholding from proceeds of a sale of Shares acquired upon the exercise of this Option arranged by the Company (on the Participant's behalf pursuant to this authorization without further consent), and this will be the method by which such tax withholding obligations are satisfied until the Company determines otherwise, subject to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company has the right (but not the obligation) to satisfy any Tax-Related Items by reducing the number of Shares otherwise deliverable to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Participant authorizes the Company and/or any member(s) of the Company Group for whom he or she is performing services (each, an "**Employer**") to withhold any Tax-Related Items legally payable by the Participant from his or her wages or other cash compensation paid to the Participant by the Company and/or the Employer(s) or from proceeds of the sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Further, if the Participant is subject to taxation in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, the Company and/or the Employer(s) or former Employer(s) may withhold or account for tax in greater than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Regardless of any action of the Company or the Employer(s), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains his or her responsibility and may exceed the amount actually withheld by the Company or the Employer(s). The Participant further acknowledges that the Company and the Employer(s) (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option; and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of this Option to reduce or eliminate his or her liability for Tax-Related Items or achieve any particular tax result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Tax Reporting.** This Section 8(b) applies if the Participant is a U.S. taxpayer. If this Option is partially or wholly an ISO, and if the Participant sells or otherwise disposes of any the Shares acquired by exercising the ISO portion on or before the later of (i) the date 2 years after the Grant Date, or (ii) the date 1 year after the date of exercise, he or she may be subject to reporting of Tax-Related Items by the Company on the compensation income recognized by him or her and must immediately notify the Company in writing of the disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Forfeiture or Clawback</u>. This Option (including any proceeds, gains or other economic benefit received by the Participant from any subsequent sale of Shares resulting from the exercise) will be subject to any compensation recovery or clawback policy implemented by the Company before or after the date of this Agreement. This includes any clawback policy adopted to comply with the requirements of Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Rights as Stockholder</u>. The Participant's rights as a stockholder of the Company (including the right to vote and to receive dividends and distributions) will not begin until Shares have been issued and recorded on the records of the Company or its transfer agents or registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Acknowledgements and Agreements</u>. The Participant's signature on the Notice of Grant accepting this Option indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) HE OR SHE ACKNOWLEDGES AND AGREES THAT THE VESTING OF THIS OPTION IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AND THAT BEING HIRED, GRANTED THIS OPTION, AND EXERCISING THE OPTION WILL NOT RESULT IN VESTING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HE OR SHE FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AND AGREEMENT DO NOT CREATE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND DOES NOT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE RIGHT OF THE EMPLOYER(S) TO TERMINATE HIS OR HER RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE, SUBJECT TO APPLICABLE LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Participant agrees that this Agreement and its incorporated documents reflect all agreements on its subject matters and that he or she is not accepting this Agreement based on any promises, representations, or inducements other than those reflected in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant understands that exercise of this Option is governed strictly by Sections 6, 7, and 8 of this Agreement and that failure to comply with those Sections could result in the expiration of this Option, even if an attempt was made to exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Participant agrees that the Company's delivery of any documents related to the Plan or this Option (including the Plan, the Agreement, the Plan's prospectus and any reports of the Company provided generally to the Company's stockholders) to him or her may be made by electronic delivery, which may include the delivery of a link to a Company intranet or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail, or any other means of electronic delivery specified by the Company. If the attempted electronic delivery of such documents fails, the Participant will be provided with a paper copy of the documents. The Participant acknowledges that he or she may receive from the Company a paper copy of any documents that were delivered electronically at no cost to him or her by contacting the Company by telephone or in writing. The Participant may revoke his or her consent to the electronic delivery of documents or may change the electronic mail address to which such documents are to be delivered (if the Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Participant may deliver any documents related to the Plan or this Option to the Company by e-mail or any other means of electronic delivery approved by the Administrator, but he or she must provide the Company or any designated third party administrator with a paper copy of any documents if his or her attempted electronic delivery of such documents fails.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Participant accepts that all good faith decisions or interpretations of the Administrator regarding the Plan and Awards under the Plan are binding, conclusive, and final. No member of the Administrator will be personally liable for any such decisions or interpretations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Participant agrees that the Plan is established voluntarily by the Company, is discretionary in nature, and may be amended, suspended, or terminated by the Company at any time, to the extent permitted by the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant agrees that the grant of this Option is voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted in the past.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Participant agrees that any decisions regarding future Awards will be in the Company's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Participant agrees that he or she is voluntarily participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Participant agrees that this Option and any Shares acquired under the Plan are not intended to replace any pension rights or compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Participant agrees that this Option, any Shares acquired under the Plan, and their income and value of same are not part of normal or expected compensation for any purpose, including for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits, or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Participant agrees that the future value of the Shares underlying this Option is unknown, indeterminable, and cannot be predicted with certainty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Participant understands that if the underlying Shares do not increase in value, this Option will have no intrinsic monetary value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Participant understands that if this Option is exercised, the value of each Share received on exercise may increase or decrease in value, even below the Exercise Price per Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Participant agrees that, for purposes of this Option, his or her engagement as a Service Provider is terminated as of the Termination of Status Date (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), unless otherwise expressly provided in this Agreement or determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Participant agrees that any right to vest in this Option terminates as of the Termination of Status Date and will not be extended by any notice period (e.g., the period that he or she is a Service Provider would not include any contractual notice period or any period of "garden leave" or similar period mandated under employment laws (including common law, if applicable) in the jurisdiction where he or she is a Service Provider or by his or her service agreement or employment agreement, if any, unless he or she is providing bona fide services during such time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The Participant agrees that the period during which the Participant may exercise the vested portion of this Option after a termination of his or her status as a Service Provider (if any) will start as of the Termination of Status Date (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), unless otherwise expressly provided in this Agreement or determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Participant agrees that the Administrator has the exclusive discretion to determine when he or she is no longer actively providing services for purposes of this Option (including whether he or she is still considered to be providing services while on a leave of absence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Participant agrees that no member of the Company Group is liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of this Option or of any amounts due to him or her from the exercise of this Option or the subsequent sale of any Shares acquired upon exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Participant agrees that he or she has no claim or entitlement to compensation or damages from any forfeiture of this Option resulting from the termination of his or her status as a Service Provider (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), and in consideration of the grant of this Option to which he or she is otherwise not entitled, he or she irrevocably agrees never to institute any claim against the Company or any member of the Company Group, waives his or her ability (if any) to bring any such claim, and releases the Company and all members of the Company Group from any such claim. If any such claim is nevertheless allowed by a court of competent jurisdiction, then the Participant's participation in the Plan constitutes his or her irrevocable agreement to not pursue such claim and to execute any and all documents necessary to request dismissal or withdrawal of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Miscellaneous</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Address for Notices.** Any notice to be given to the Company under the terms of this Agreement must be addressed to the Company at BW Industrial Holdings Inc., 2825 Wilcrest Dr. Ste 421, Houston TX 77042 until the Company designates another address in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Non-Transferability of Option.** This Option may not be transferred other than by will or the laws of descent or distribution and may be exercised during the lifetime of the Participant only by him or her or his or her representative following a Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Binding Agreement.** If this Option is transferred, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors, and assigns of the parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Additional Conditions to Issuance of Stock.** If the Company determines that the listing, registration, qualification, or rule compliance of the Common Stock on any securities exchange or under any state, federal, or foreign law or the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), the Company will try to meet the requirements of any such state, federal, or foreign law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange, but the Shares will not be issued until such conditions have been met in a manner acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Captions.** Captions provided in this Agreement are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Agreement Severable.** If any provision of this Agreement is held invalid or unenforceable, that provision will be severed from the remaining provisions of this Agreement and the invalidity or unenforceability will have no effect on the remainder of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Non-U.S. Appendix.** This Option is subject to any special terms and conditions set forth in any Appendix. If the Participant relocates to a country included in the Appendix, the special terms and conditions for that country will apply to him or her to the extent the Company determines that applying such terms and conditions is necessary or advisable for legal or administrative reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Choice of Law**; **Choice of Forum.** The Plan, this Agreement, this Option, and all determinations made and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under the Plan, the Participant's acceptance of this Option is his or her consent to the jurisdiction of the State of Delaware and his or her agreement that any such litigation will be conducted in the Delaware Court of Chancery or the federal courts for the United States for the District of Delaware and no other courts, regardless of where he or she is performing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Modifications to the Agreement.** The Plan and this Agreement constitute the entire understanding of the parties on the subjects covered. The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company. The Company reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with Code Section 409A, to otherwise avoid imposition of any additional tax or income recognition under Code Section 409A in connection with this Option, or to comply with other Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Waiver.** The Participant acknowledges that a waiver by the Company of a breach of any provision of this Agreement will not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of this Agreement by him or her.

**<u>EXHIBIT B</u>**

**APPENDIX TO STOCK OPTION AGREEMENT**

***Terms and Conditions***

This Appendix to Stock Option Agreement (the "**Appendix**") includes additional terms and conditions that govern this Option granted to the Participant under the Plan if he or she resides in one of the countries listed below on the Grant Date or he or she moves to one of the listed countries.

***Notifications***

This Appendix may also include information regarding exchange controls and certain other issues of which the Participant should be aware with respect to participation in the Plan. The information is based on the securities, exchange control, and other Applicable Laws in effect in the respective countries as of [ ], 2026. Such Applicable Laws are often complex and change frequently. As a result, the Company strongly recommends that the Participant not rely on the information in this Appendix as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time the Participant sells Shares acquired under the Plan.

In addition, the information contained in this Appendix is general in nature and may not apply to the Participant's particular situation, and the Company is not in a position to assure him or her of a particular result. The Participant is advised to seek appropriate professional advice as to how the Applicable Laws in his or her country may apply to his or her situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, transfers employment after this Option is granted, or is considered a resident of another country for local law purposes, the information in this Appendix may not apply to him or her, and the Administrator will determine to what extent the terms and conditions in this Appendix apply.

**<u>EXHIBIT C</u>**

**BW INDUSTRIAL HOLDINGS INC.** 

**2026 EQUITY INCENTIVE PLAN**

**EXERCISE NOTICE**

BW Industrial Holdings Inc.

2825 Wilcrest Dr. Ste 421

Houston TX 77042

Attention: Stock Administration

Purchaser Name:

Grant Date of Stock Option (the "**Option**"):

Exercise Date:

Number of Shares Exercised:

Per Share Exercise Price:

Total Exercise Price:

Exercise Price Payment Method:

Tax-Related Items Payment Method:

The information in the table above is incorporated in this Exercise Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Exercise of Option.** Effective as the Exercise Date, I elect to purchase the Number of Shares Exercised ("**Exercised Shares**") under the Stock Option Agreement for the Option (the "**Agreement**") for the Total Exercise Price. Capitalized terms used but not defined in this Exercise Notice have the meanings given to them in the 2026 Equity Incentive Plan (the "**Plan**") and/or the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Delivery of Payment.** With this Exercise Notice, I am delivering the Total Exercise Price and any required Tax-Related Items to be paid in connection with purchase of the Exercised Shares. I am paying my total purchase price by the Exercise Price Payment Method and the Tax-Related Items by the Tax-Related Items Payment Method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Representations of Purchaser.** I acknowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) I have received, read, and understood the Plan and the Agreement and agree to be bound by their terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The exercise will not be completed until this Exercise Notice, Total Exercise Price, and all Tax-Related Payments are received by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) I have no rights as a stockholder of the Company (including the right to vote and receive dividends and distributions) on the Exercised Shares until the Exercised Shares have been issued and recorded on the records of the Company or its transfer agents or registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No adjustment will be made for a dividend or other right for which the record date is before the date of issuance, except for adjustments under Section 13 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There may be adverse tax consequences to exercising the Option, and I am not relying on the Company for tax advice and have had an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to exercising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The modification and choice of law provisions of the Agreement also govern this Exercise Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Entire Agreement**; **Governing Law.** The Plan and the Agreement are incorporated by reference. This Exercise Notice, the Plan, and the Agreement are the entire agreement of the parties with respect to the Options and this exercise and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect to their subject matter.

Submitted by:

PURCHASER

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|:---|
| Signature |
| Address: |

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**BW INDUSTRIAL HOLDINGS INC.** 

**2026 EQUITY INCENTIVE PLAN**

**NOTICE OF RESTRICTED STOCK AWARD<br> AND RESTRICTED STOCK AGREEMENT**

Capitalized terms that are not defined in this Notice of Restricted Stock Award and Restricted Stock Agreement (the "**Notice of Grant**"), the Terms and Conditions of Restricted Stock Award, or any of the exhibits to these documents (all together, the "**Agreement**") have the meanings given to them in the BW Industrial Holdings Inc. 2026 Equity Incentive Plan (the "**Plan**").

The Participant has been granted this Restricted Stock award according to the terms below and subject to the terms and conditions of the Plan and this Agreement, as follows:

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| |
|:---|
| Participant |
| Grant Number |
| Grant Date |
| Vesting Start Date |
| Number of Shares Granted |

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<u>Vesting Schedule</u>:

Unless the vesting is accelerated, these Shares of Restricted Stock will vest on the following schedule:

If the Participant continues to be a Service Provider through each such date, 25% of these Shares of Restricted Stock will vest on the 1-year anniversary of the Vesting Start Date, and 1/16th of these Shares of Restricted Stock will vest each quarter thereafter on the same day of the month as the Vesting Start Date (or if there is no corresponding day in a given month, then on the last day of that month). All vesting will be rounded in accordance with Section 3(f) of the Plan.

If the Participant ceases to be a Service Provider for any or no reason before he or she fully vests in these Shares of Restricted Stock, the unvested Shares of Restricted Stock will terminate according to the terms of Section 5 of this Agreement.

The Participant's signature below indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) He or she agrees that this Restricted Stock award is granted
under and governed by the terms and conditions of the Plan and this Agreement, including their exhibits and appendices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) He or she understands that the Company is not providing any
tax, legal, or financial advice and is not making any recommendations regarding his or her participation in the Plan or his or her acquisition
or sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) He or she has reviewed the Plan and this Agreement, has had
an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to signing this Agreement, and fully understands
all provisions of the Plan and Agreement. He or she will consult with his or her own personal tax, legal, and financial advisors before
taking any action related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) He or she has read and agrees to each provision of Section
10 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) He or she will notify the Company of any change to the contact
address below.

PARTICIPANT

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| |
|:---|
| Signature |
| Address: |

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**<u>EXHIBIT A</u>**

**TERMS AND CONDITIONS OF RESTRICTED STOCK AWARD**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant</u>. The Company grants the Participant an award of Restricted Stock as described in the Notice of Grant. If there is a conflict between the Plan, this Agreement, or any other agreement with the Participant governing these Shares of Restricted Stock, those documents will take precedence and prevail in the following order: (a) the Plan, (b) the Agreement, and (c) any other agreement between the Company and the Participant governing these Shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Escrow of Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Once the Participant signs this Agreement, all of these Shares of Restricted Stock will be delivered to an escrow holder designated by the Company (the "Escrow Holder") and will be held by the Escrow Holder until these Shares of Restricted Stock vest or the Participant ceases to be a Service Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Escrow Holder is not liable for any act it does or does not do for purposes of holding these Shares of Restricted Stock in escrow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Escrow Holder will transfer any vested Shares of Restricted Stock to the Participant at his or her request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant has no right to receive cash dividends on any of these Shares of Restricted Stock that are held in escrow but has all other rights of a stockholder for such Shares, including the right to vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) These Shares of Restricted Stock will be subject to any adjustments made according to Section 13(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company may instruct the transfer agent for the Common Stock to record the restrictions on transfer in this Agreement by placing a legend on the certificates representing the Restricted Stock or otherwise noting its records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Vesting</u>. These Shares of Restricted Stock will vest only under the Vesting Schedule in the Notice of Grant, Section 4 of this Agreement, or Section 14 of the Plan. Shares of Restricted Stock scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest unless the Participant continues to be a Service Provider until the time such vesting is scheduled to occur. The Administrator may modify the Vesting Schedule according to its authority under the Plan if the Participant takes a leave of absence or has a reduction in hours worked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Administrator Discretion</u>. The Administrator has the discretion to accelerate the vesting of any number of unvested Shares of Restricted Stock at any time, subject to the terms of the Plan. In that case, those Shares of Restricted Stock will be vested as of the date specified by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Forfeiture upon Termination of Status as a Service Provider</u>. Upon the Participant's termination as a Service Provider for any reason, these Shares of Restricted Stock will immediately stop vesting, and any of these Shares of Restricted Stock that have not yet vested will be forfeited by the Participant and automatically transferred by the Escrow Holder to the Company at no cost to the Company, subject to Applicable Laws. The Participant will not be refunded any price paid for such Shares and will have no further rights under this Agreement. The Participant appoints the Escrow Holder with full power of substitution (as the Participant's true and lawful attorney-in-fact with irrevocable power and authority in the name and on behalf of the Participant) to take any action and execute all documents and instruments, including stock powers necessary to transfer the certificate(s) evidencing such unvested Shares of Restricted Stock to the Company upon such termination. The date of the Participant's termination as a Service Provider is detailed in Section 3(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Death of Participant</u>. Any distribution or delivery to be made to the Participant under this Agreement will, if he or she is then deceased, be made to the administrator or executor of his or her estate or, if the Administrator permits, his or her designated beneficiary. Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations that apply to the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Tax Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Shares of Restricted Stock may be released from escrow until the Participant makes satisfactory arrangements (as determined by the Administrator) for the payment of income, employment, social security, payroll tax, fringe benefit tax, payment on account, or other tax-related items related to his or her participation in the Plan and legally applicable to him or her that the Administrator determines must be withheld ("**Tax-Related Items**"), including those that result from the grant, vesting, or subsequent sale of Shares of Restricted Stock or the receipt of any dividends. If the Participant is a non-U.S. employee, the method of payment of Tax-Related Items may be restricted by any Appendix. If the Participant fails to make satisfactory arrangements for the payment of any Tax-Related Items under this Agreement when any of these Shares of Restricted Stock otherwise are supposed to vest or Tax-Related Items related to these Shares of Restricted Stock otherwise are due, he or she will permanently forfeit the applicable Shares of Restricted Stock and such Shares of Restricted Stock will be returned to the Company at no cost to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has the right (but not the obligation) to satisfy any Tax-Related Items by withholding from proceeds of a sale of any of these Shares of Restricted Stock that have vested arranged by the Company (on the Participant's behalf pursuant to this authorization without further consent), and this will be the method by which such tax withholding obligations are satisfied until the Company determines otherwise, subject to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company also has the right (but not the obligation) to satisfy any Tax-Related Items by reducing the number of Shares otherwise deliverable to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Further, if the Participant is subject to taxation in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, the Company and/or any member of the Company Group for whom he or she is performing services (each, an "Employer") or former Employer(s) may withhold or account for tax in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Regardless of any action of the Company or the Employer(s), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains his or her responsibility and may exceed the amount actually withheld by the Company or the Employer(s). The Participant further acknowledges that the Company and the Employer(s) (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of these Shares of Restricted Stock and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of these Shares of Restricted Stock to reduce or eliminate his or her liability for Tax-Related Items or achieve any particular tax result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Forfeiture or Clawback</u>. These Shares of Restricted Stock (including any proceeds, gains or other economic benefit received by the Participant from their subsequent sale) will be subject to any compensation recovery or clawback policy implemented by the Company before or after the date of this Agreement. This includes any clawback policy adopted to comply with the requirements of Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Rights as Stockholder</u>. The Participant's rights as a stockholder of the Company (including the right to vote and to receive dividends and distributions) will not begin until these Shares of Restricted Stock have been issued and recorded on the records of the Company or its transfer agents or registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Acknowledgements and Agreements</u>. The Participant's signature on the Notice of Grant accepting these Shares of Restricted Stock indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) HE OR SHE ACKNOWLEDGES AND AGREES THAT THE VESTING OF THE SHARES OF RESTRICTED STOCK IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AND THAT BEING HIRED OR BEING GRANTED THESE SHARES OF RESTRICTED STOCK DO NOT RESULT IN VESTING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HE OR SHE FURTHER ACKNOWLEDGES AND AGREES THAT THESE SHARES OF RESTRICTED STOCK AND THIS AGREEMENT DO NOT CREATE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL AND DOES NOT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE RIGHT OF THE EMPLOYER(S) TO TERMINATE HIS OR HER RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE, SUBJECT TO APPLICABLE LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Participant agrees that this Agreement and its incorporated documents reflect all agreements on its subject matters and that he or she is not accepting this Agreement based on any promises, representations, or inducements other than those reflected in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant agrees that the Company's delivery of any documents related to the Plan or these Shares of Restricted Stock (including the Plan, the Agreement, the Plan's prospectus, and any reports of the Company provided generally to the Company's stockholders) to him or her may be made by electronic delivery, which may include the delivery of a link to a Company intranet or to the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail, or any other means of electronic delivery specified by the Company. If the attempted electronic delivery of such documents fails, the Participant will be provided with a paper copy of the documents. The Participant acknowledges that he or she may receive from the Company a paper copy of any documents that were delivered electronically at no cost to him or her by contacting the Company by telephone or in writing. The Participant may revoke his or her consent to the electronic delivery of documents or may change the electronic mail address to which such documents are to be delivered (if the Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Participant may deliver any documents related to the Plan or these Shares of Restricted Stock to the Company by e-mail or any other means of electronic delivery approved by the Administrator, but he or she must provide the Company or any designated third party administrator with a paper copy of any documents if his or her attempted electronic delivery of such documents fails.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Participant accepts that all good faith decisions or interpretations of the Administrator regarding the Plan and Awards under the Plan are binding, conclusive, and final. No member of the Administrator will be personally liable for any such decisions or interpretations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Participant agrees that the Plan is established voluntarily by the Company, is discretionary in nature, and may be amended, suspended, or terminated by the Company at any time, to the extent permitted by the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Participant agrees that the grant of these Shares of Restricted Stock is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock or benefits in lieu of restricted stock, even if restricted stock has been granted in the past.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant agrees that any decisions regarding future Awards will be in the Company's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Participant agrees that he or she is voluntarily participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Participant agrees that these Shares of Restricted Stock are not intended to replace any pension rights or compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Participant agrees that these Shares of Restricted Stock and their income and value are not part of normal or expected compensation for any purpose, including for calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits, or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Participant agrees that the future value of these Shares of Restricted Stock is unknown, indeterminable, and cannot be predicted with certainty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Participant agrees that, for purposes of these Shares of Restricted Stock, his or her engagement as a Service Provider is terminated as of the Termination of Status Date (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), unless otherwise expressly provided in this Agreement or determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Participant agrees that any right to vest in these Shares of Restricted Stock terminates as of the Termination of Status Date and will not be extended by any notice period (e.g., the period that he or she is a Service Provider would not include any contractual notice period or any period of "garden leave" or similar period mandated under employment laws (including common law, if applicable) in the jurisdiction where he or she is a Service Provider or by his or her service agreement or employment agreement, if any, unless he or she is providing bona fide services during such time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Participant agrees that the Administrator has the exclusive discretion to determine when he or she is no longer actively providing services for purposes of these Shares of Restricted Stock (including whether he or she is still considered to be providing services while on a leave of absence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Participant agrees that no member of the Company Group is liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of these Shares of Restricted Stock or of any amounts due to him or her upon the sale of any of these Shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Participant agrees that he or she has no claim or entitlement to compensation or damages from any forfeiture of these Shares of Restricted Stock resulting from the termination of his or her status as a Service Provider (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), and in consideration of the grant of these Shares of Restricted Stock to which he or she is otherwise not entitled, he or she irrevocably agrees never to institute any claim against the Company or any member of the Company Group, waives his or her ability (if any) to bring any such claim, and releases the Company and all members of the Company Group from any such claim. If any such claim is nevertheless allowed by a court of competent jurisdiction, then the Participant's participation in the Plan constitutes his or her irrevocable agreement to not pursue such claim and to execute any and all documents necessary to request dismissal or withdrawal of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Address for Notices.** Any notice to be given to the Company under the terms of this Agreement must be addressed to the Company at BW Industrial Holdings Inc., 2825 Wilcrest Dr. Ste 421, Houston TX 77042 until the Company designates another address in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Non-Transferability of Restricted Stock.** These Shares of Restricted Stock may not be transferred other than by will or the laws of descent or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Binding Agreement.** If any Shares of Restricted Stock are transferred, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors, and assigns of the parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Additional Conditions to Issuance of Stock and Release from Escrow.** If the Company determines that the listing, registration, qualification, or rule compliance of the Common Stock on any securities exchange or under any state, federal, or foreign law or the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of these Shares of Restricted Stock or their release from escrow to the Participant (or his or her estate), the Company will try to meet the requirements of any such state, federal, or foreign law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange, but these Shares of Restricted Stock will not be issued until such conditions have been met in a manner acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Captions.** Captions provided in this Agreement are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Agreement Severable.** If any provision of this Agreement is held invalid or unenforceable, that provision will be severed from the remaining provisions of this Agreement and the invalidity or unenforceability will have no effect on the remainder of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Non-U.S. Appendix.** These Shares of Restricted Stock are subject to any special terms and conditions set forth in any appendix to this Agreement for the Participant's country (the "Appendix"). If the Participant relocates to a country included in the Appendix, the special terms and conditions for that country will apply to him or her to the extent the Company determines that applying such terms and conditions is necessary or advisable for legal or administrative reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Choice of Law**; **Choice of Forum.** The Plan, this Agreement, these Shares of Restricted Stock, and all determinations made and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under the Plan, the Participant's acceptance of these Shares of Restricted Stock is his or her consent to the jurisdiction of the State of Delaware and his or her agreement that any such litigation will be conducted in the Delaware Court of Chancery or the federal courts for the United States for the District of Delaware and no other courts, regardless of where he or she is performing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Modifications to the Agreement.** The Plan and this Agreement constitute the entire understanding of the parties on the subjects covered. The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company. The Company reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with other Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Waiver.** The Participant acknowledges that a waiver by the Company of a breach of any provision of this Agreement will not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of this Agreement by him or her.

**EXHIBIT B**

**APPENDIX TO RESTRICTED STOCK AGREEMENT**

***Terms and Conditions***

This Appendix to Restricted Stock Agreement (the "Appendix") includes additional terms and conditions that govern these Shares of Restricted Stock granted to the Participant under the Plan if he or she resides in one of the countries listed below on the Grant Date or he or she moves to one of the listed countries.

***Notifications***

This Appendix may also include information regarding exchange controls and certain other issues of which the Participant should be aware with respect to participation in the Plan. The information is based on the securities, exchange control, and other Applicable Laws in effect in the respective countries as of __________, 20__. Such Applicable Laws are often complex and change frequently. As a result, the Company strongly recommends that the Participant not rely on the information in this Appendix as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time the Participant sells Shares acquired under the Plan.

In addition, the information contained in this Appendix is general in nature and may not apply to the Participant's particular situation, and the Company is not in a position to assure him or her of a particular result. The Participant is advised to seek appropriate professional advice as to how the Applicable Laws in his or her country may apply to his or her situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, transfers employment after these Shares of Restricted Stock are granted, or is considered a resident of another country for local law purposes, the information in this Appendix may not apply to him or her, and the Administrator will determine to what extent the terms and conditions in this Appendix apply.

**BW INDUSTRIAL HOLDINGS INC.<br> 2026 EQUITY INCENTIVE PLAN**

**NOTICE OF RESTRICTED STOCK UNIT AWARD<br> AND RESTRICTED STOCK UNIT AGREEMENT**

Capitalized terms that are not defined in this Notice of Restricted Stock Unit Award and Restricted Stock Unit Agreement (the "Notice of Grant"), the Terms and Conditions of Restricted Stock Unit Award, or any of the exhibits to these documents (all together, the "Agreement") have the meanings given to them in the BW Industrial Holdings Inc. 2026 Equity Incentive Plan (the "Plan").

The Participant has been granted this Restricted Stock Unit ("RSU") award according to the terms below and subject to the terms and conditions of the Plan and this Agreement, as follows:

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| |
|:---|
| Participant |
| Grant Number |
| Grant Date |
| Vesting Start Date |
| Number of RSUs Granted |

---

<u>Vesting Schedule</u>:

Unless the vesting is accelerated, these RSUs will vest on the following schedule:

If the Participant continues to be a Service Provider through each such date, 25% of these RSUs will vest on the 1-year anniversary of the Vesting Start Date, and 1/16th of these RSUs will vest each quarter thereafter on the same day of the month as the Vesting Start Date (or if there is no corresponding day in a given month, then on the last day of that month). All vesting will be rounded in accordance with Section 3(f) of the Plan.

If the Participant ceases to be a Service Provider for any or no reason before he or she fully vests in these RSUs, the unvested RSUs will terminate according to the terms of Section 5 of this Agreement.

The Participant's signature below indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) He or she agrees that this Restricted Stock Unit award is
granted under and governed by the terms and conditions of the Plan and this Agreement, including their exhibits and appendices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) He or she understands that the Company is not providing any
tax, legal, or financial advice and is not making any recommendations regarding his or her participation in the Plan or his or her acquisition
or sale of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) He or she has reviewed the Plan and this Agreement, has had
an opportunity to obtain the advice of personal tax, legal, and financial advisors prior to signing this Agreement, and fully understands
all provisions of the Plan and Agreement. He or she will consult with his or her own personal tax, legal, and financial advisors before
taking any action related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) He or she has read and agrees to each provision of Section
10 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) He or she will notify the Company of any change to the contact
address below.

PARTICIPANT

---

| |
|:---|
| Signature |
| Address: |

---

**<u>EXHIBIT A</u>**

**TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT AWARD**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant</u>. The Company grants the Participant an award of RSUs as described in the Notice of Grant. If there is a conflict between the Plan, this Agreement, or any other agreement with the Participant governing these RSUs, those documents will take precedence and prevail in the following order: (a) the Plan, (b) the Agreement, and (c) any other agreement between the Company and the Participant governing these RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Company's Obligation to Pay</u>. Each RSU is a right to receive a Share on the date it vests. Until an RSU vests, the Participant has no right to payment of the Share. Before a vested RSU is paid, the RSU is an unsecured obligation of the Company, payable (if at all) only from the Company's general assets. A vested RSU will be paid to the Participant (or in the event of his or her death, to his or her estate) in whole Shares as soon as practicable after vesting (but no later than 60 days following the vesting date), subject to him or her satisfying any obligations for Tax-Related Items (as defined in Section 7 of this Agreement) and any delay in payment required under Section 7 of this Agreement. The Participant cannot specify (directly or indirectly) the taxable year of the payment of any vested RSU under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Vesting</u>. These RSUs will vest only under the Vesting Schedule in the Notice of Grant, Section 4 of this Agreement, or Section 14 of the Plan. RSUs scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest unless the Participant continues to be a Service Provider until the time such vesting is scheduled to occur. The Administrator may modify the Vesting Schedule according to its authority under the Plan if the Participant takes a leave of absence or has a reduction in hours worked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Administrator Discretion</u>. The Administrator has the discretion to accelerate the vesting of any RSUs at any time, subject to the terms of the Plan. In that case, those RSUs will be vested as of the date specified by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Forfeiture upon Termination of Status as a Service Provider</u>. Upon the Participant's termination as a Service Provider for any reason, these RSUs will immediately stop vesting, and on the 30th day following the Termination of Status Date (or any earlier date on or following the Termination of Status Date determined by the Administrator), any of these RSUs that have not yet vested will be forfeited by the Participant, subject to Applicable Laws. The date of the Participant's termination as a Service Provider is detailed in Section 3(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Death of Participant</u>. Any distribution or delivery to be made to the Participant under this Agreement will, if he or she is then deceased, be made to the administrator or executor of his or her estate or, if the Administrator permits, his or her designated beneficiary. Any such transferee must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations that apply to the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Tax Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Tax Withholding.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Shares will be issued to the Participant until he or she makes satisfactory arrangements (as determined by the Administrator) for the payment of income, employment, social security, payroll tax, fringe benefit tax, payment on account, or other tax-related items related to his or her participation in the Plan and legally applicable to him or her that the Administrator determines must be withheld ("Tax-Related Items"), including those that result from the grant, vesting, or payment of these RSUs, the subsequent sale of Shares acquired pursuant to such payment, or the receipt of any dividends. If the Participant is a non-U.S. employee, the method of payment of Tax-Related Items may be restricted by any Appendix. If the Participant fails to make satisfactory arrangements for the payment of any Tax-Related Items under this Agreement when any of these RSUs otherwise are supposed to vest or Tax-Related Items related to RSUs otherwise are due, he or she will permanently forfeit the applicable RSUs and any right to receive Shares under such RSUs, and such RSUs will be returned to the Company at no cost to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company has the right (but not the obligation) to satisfy any Tax-Related Items by withholding from proceeds of a sale of Shares acquired upon payment of these RSUs arranged by the Company (on the Participant's behalf pursuant to this authorization without further consent), and this will be the method by which such tax withholding obligations are satisfied until the Company determines otherwise, subject to Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company also has the right (but not the obligation) to satisfy any Tax-Related Items by reducing the number of Shares otherwise deliverable to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Further, if the Participant is subject to taxation in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, the Company and/or any member of the Company Group for whom he or she is performing services (each, an "Employer") or former Employer(s) may withhold or account for tax in more than one jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Regardless of any action of the Company or the Employer(s), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains his or her responsibility and may exceed the amount actually withheld by the Company or the Employer(s). The Participant further acknowledges that the Company and the Employer(s) (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of these RSUs and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of these RSUs to reduce or eliminate his or her liability for Tax-Related Items or achieve any particular tax result.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Code Section 409A.** This Section 7(b) does not apply if the Participant is not a U.S. taxpayer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the vesting of any RSUs is accelerated in connection with a termination of the Participant's status as a Service Provider that is a "separation from service" within the meaning of Code Section 409A and (x) the Participant is a "specified employee" within the meaning of Code Section 409A at that time and (y) the payment of such accelerated RSUs would result in the imposition of additional tax under Code Section 409A if paid to the Participant within the 6-month period following such termination, then the accelerated RSUs will not be paid until the first day after the 6-month period ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Participant's status as a Service Provider terminates due to death or the Participant dies after he or she stops being a Service Provider, the delay under Section 7(b)(i) of this Agreement will not apply, and these RSUs will be paid in Shares to the Participant's estate as soon as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All payments and benefits under this Agreement are intended to be exempt from Code Section 409A or comply with any requirements necessary to avoid the imposition of additional tax under Code Section 409A(a)(1)(B) so that none of these RSUs or Shares issuable upon the vesting of RSUs will be subject to the additional tax imposed under Code Section 409A, and any ambiguities will be interpreted according to that intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each payment under this Agreement is a separate payment under Treasury Regulations Section 1.409A-2(b)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Forfeiture or Clawback</u>. These RSUs (including any proceeds, gains or other economic benefit received by the Participant from any subsequent sale of Shares issued upon payment of the RSUs) will be subject to any compensation recovery or clawback policy implemented by the Company before or after the date of this Agreement. This includes any clawback policy adopted to comply with the requirements of Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Rights as Stockholder</u>. The Participant's rights as a stockholder of the Company (including the right to vote and to receive dividends and distributions) will not begin until Shares have been issued and recorded on the records of the Company or its transfer agents or registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Acknowledgements and Agreements</u>. The Participant's signature on the Notice of Grant accepting these RSUs indicates that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) HE OR SHE ACKNOWLEDGES AND AGREES THAT THE VESTING OF THESE RSUS IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AND THAT BEING HIRED OR BEING GRANTED THESE RSUS WILL NOT RESULT IN VESTING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HE OR SHE FURTHER ACKNOWLEDGES AND AGREES THAT THESE RSUS AND THIS AGREEMENT DO NOT CREATE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL AND DOES NOT INTERFERE IN ANY WAY WITH HIS OR HER RIGHT OR THE RIGHT OF THE EMPLOYER(S) TO TERMINATE HIS OR HER RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE, SUBJECT TO APPLICABLE LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Participant agrees that this Agreement and its incorporated documents reflect all agreements on its subject matters and that he or she is not accepting this Agreement based on any promises, representations, or inducements other than those reflected in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant agrees that the Company's delivery of any documents related to the Plan or these RSUs (including the Plan, the Agreement, the Plan's prospectus, and any reports of the Company provided generally to the Company's stockholders) to him or her may be made by electronic delivery, which may include the delivery of a link to a Company intranet or to the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail, or any other means of electronic delivery specified by the Company. If the attempted electronic delivery of such documents fails, the Participant will be provided with a paper copy of the documents. The Participant acknowledges that he or she may receive from the Company a paper copy of any documents that were delivered electronically at no cost to him or her by contacting the Company by telephone or in writing. The Participant may revoke his or her consent to the electronic delivery of documents or may change the electronic mail address to which such documents are to be delivered (if the Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Participant may deliver any documents related to the Plan or these RSUs to the Company by e-mail or any other means of electronic delivery approved by the Administrator, but he or she must provide the Company or any designated third party administrator with a paper copy of any documents if his or her attempted electronic delivery of such documents fails.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Participant accepts that all good faith decisions or interpretations of the Administrator regarding the Plan and Awards under the Plan are binding, conclusive, and final. No member of the Administrator will be personally liable for any such decisions or interpretations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Participant agrees that the Plan is established voluntarily by the Company, is discretionary in nature, and may be amended, suspended, or terminated by the Company at any time, to the extent permitted by the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Participant agrees that the grant of these RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted stock units or benefits in lieu of restricted stock units, even if restricted stock units have been granted in the past.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant agrees that any decisions regarding future Awards will be in the Company's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Participant agrees that he or she is voluntarily participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Participant agrees that these RSUs and any Shares acquired under these RSUs are not intended to replace any pension rights or compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Participant agrees that these RSUs, any Shares acquired under these RSUs, and their income and value are not part of normal or expected compensation for any purpose, including for calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits, or similar payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Participant agrees that the future value of the Shares underlying these RSUs is unknown, indeterminable, and cannot be predicted with certainty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Participant agrees that, for purposes of these RSUs, his or her engagement as a Service Provider is terminated as of the Termination of Status Date (regardless of the reason for such termination and whether or not the termination is later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), unless otherwise expressly provided in this Agreement or determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Participant agrees that any right to vest in these RSUs terminates as of the Termination of Status Date and will not be extended by any notice period (e.g., the period that he or she is a Service Provider would not include any contractual notice period or any period of "garden leave" or similar period mandated under employment laws (including common law, if applicable) in the jurisdiction where he or she is a Service Provider or by his or her service agreement or employment agreement, if any, unless he or she is providing bona fide services during such time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Participant agrees that the Administrator has the exclusive discretion to determine when he or she is no longer actively providing services for purposes of these RSUs (including whether he or she is still considered to be providing services while on a leave of absence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Participant agrees that no member of the Company Group is liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of these RSUs or of any amounts due to him or her from the payment of these RSUs or the subsequent sale of any Shares acquired upon such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Participant agrees that he or she has no claim or entitlement to compensation or damages from any forfeiture of these RSUs resulting from the termination of his or her status as a Service Provider (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where he or she is a Service Provider or the terms of his or her service agreement, if any), and in consideration of the grant of these RSUs to which he or she is otherwise not entitled, he or she irrevocably agrees never to institute any claim against the Company or any member of the Company Group, waives his or her ability (if any) to bring any such claim, and releases the Company and all members of the Company Group from any such claim. If any such claim is nevertheless allowed by a court of competent jurisdiction, then the Participant's participation in the Plan constitutes his or her irrevocable agreement to not pursue such claim and to execute any and all documents necessary to request dismissal or withdrawal of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Address for Notices.** Any notice to be given to the Company under the terms of this Agreement must be addressed to the Company at BW Industrial Holdings Inc., 2825 Wilcrest Dr. Ste 421, Houston TX 77042 until the Company designates another address in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Non-Transferability of RSUs.** These RSUs may not be transferred other than by will or the laws of descent or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Binding Agreement.** If any RSUs are transferred, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors, and assigns of the parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Additional Conditions to Issuance of Stock.** If the Company determines that the listing, registration, qualification, or rule compliance of the Common Stock on any securities exchange or under any state, federal, or foreign law or the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), the Company will try to meet the requirements of any such state, federal, or foreign law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange, but the Shares will not be issued until such conditions have been met in a manner acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Captions.** Captions provided in this Agreement are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Agreement Severable.** If any provision of this Agreement is held invalid or unenforceable, that provision will be severed from the remaining provisions of this Agreement and the invalidity or unenforceability will have no effect on the remainder of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Non-U.S. Appendix.** These RSUs are subject to any special terms and conditions set forth in any appendix to this Agreement for the Participant's country (the "**Appendix**"). If the Participant relocates to a country included in the Appendix, the special terms and conditions for that country will apply to him or her to the extent the Company determines that applying such terms and conditions is necessary or advisable for legal or administrative reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Choice of Law**; **Choice of Forum.** The Plan, this Agreement, these RSUs, and all determinations made and actions taken under the Plan, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Delaware without giving effect to principles of conflicts of law. For purposes of litigating any dispute that arises under the Plan, the Participant's acceptance of these RSUs is his or her consent to the jurisdiction of the State of Delaware and his or her agreement that any such litigation will be conducted in the Delaware Court of Chancery or the federal courts for the United States for the District of Delaware and no other courts, regardless of where he or she is performing services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Modifications to the Agreement.** The Plan and this Agreement constitute the entire understanding of the parties on the subjects covered. The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of the Company. The Company reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with Code Section 409A, to otherwise avoid imposition of any additional tax or income recognition under Code Section 409A in connection with these RSUs, or to comply with other Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Waiver.** The Participant acknowledges that a waiver by the Company of a breach of any provision of this Agreement will not operate or be construed as a waiver of any other provision of this Agreement or of any subsequent breach of this Agreement by him or her.

**<u>EXHIBIT B</u>**

**APPENDIX TO RESTRICTED STOCK UNIT AGREEMENT**

***Terms and Conditions***

This Appendix to Restricted Stock Unit Agreement (the "**Appendix**") includes additional terms and conditions that govern these RSUs granted to the Participant under the Plan if he or she resides in one of the countries listed below on the Grant Date or he or she moves to one of the listed countries.

***Notifications***

This Appendix may also include information regarding exchange controls and certain other issues of which the Participant should be aware with respect to participation in the Plan. The information is based on the securities, exchange control, and other Applicable Laws in effect in the respective countries as of [ ], 2026.. Such Applicable Laws are often complex and change frequently. As a result, the Company strongly recommends that the Participant not rely on the information in this Appendix as the only source of information relating to the consequences of participation in the Plan because the information may be out of date at the time the Participant sells Shares acquired under the Plan.

In addition, the information contained in this Appendix is general in nature and may not apply to the Participant's particular situation, and the Company is not in a position to assure him or her of a particular result. The Participant is advised to seek appropriate professional advice as to how the Applicable Laws in his or her country may apply to his or her situation.

Finally, if the Participant is a citizen or resident of a country other than the one in which he or she is currently working, transfers employment after these RSUs are granted, or is considered a resident of another country for local law purposes, the information in this Appendix may not apply to him or her, and the Administrator will determine to what extent the terms and conditions in this Appendix apply.

## Exhibit 10.6

**Exhibit 10.6**

**EMPLOYMENT AGREEMENT**

This EMPLOYMENT AGREEMENT (the "<u>Agreement"</u>) is entered into as of March 5, 2026, by and between, BW Industrial Holdings Inc., a Delaware corporation (the "<u>Corporation</u>"), and Yunlong Zhang, an individual (the "<u>Executive"</u>).

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Executive is currently employed by Bestwater USA Inc., a Texas corporation and a subsidiary
 of the Corporation (the " <u>Operating Subsidiary</u> "), as its founder and Chief
 Executive Officer. This Agreement is intended to supplement and govern the Executive's
 service as an officer of the Corporation, and to the extent of any conflict between this
 Agreement and any other arrangement with the Operating Subsidiary with respect to the Executive's
 duties and obligations to the Corporation, this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;2. A.
 The Corporation desires to engage the Executive as its Chief Executive Officer and to assure
 itself of the services of the Executive as an officer of the Corporation during the term
 of Employment (as defined below), in addition to the Executive's employment with the
 Operating Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 Executive desires to serve as an officer of the Corporation during the term of Employment
 and upon the terms and conditions of this Agreement, in addition to the Executive's
 employment with the Operating Subsidiary.

**AGREEMENT**

The parties hereto agree as follows:

**1.** **POSITION** 

The Executive hereby accepts the position of Chief Executive Officer (the "Employment") of the Corporation. The Executive acknowledges that the Executive's compensation and benefits shall be provided by the Operating Subsidiary, and no separate compensation shall be payable by the Corporation under this Agreement except as expressly set forth herein.

**2.** **TERM** 

The Executive's service as an officer of the Corporation shall be on an at-will basis, effective as of the date of this Agreement (the "Effective Date"), and may be terminated by either party at any time, with or without cause, subject to the terms and conditions of this Agreement.

**3.** **DUTIES AND RESPONSIBILITIES** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Executive's duties at the Corporation will include all duties customary for the Executive's position and such other duties
 as may be assigned by the Board of Directors (the " <u>Board</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Executive shall devote all of his or her working time, attention and skills to the performance of his or her duties at the Corporation
 and the Operating Subsidiary and shall faithfully and diligently serve the Corporation in accordance with this Agreement, the Certificate
 of Incorporation and Bylaws of the Corporation, as amended and restated from time to time (the " <u>Charter Documents</u> "),
 and the guidelines, policies and procedures of the Corporation approved from time to time by the Board, as set forth in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The
Executive shall use his or her best efforts to perform his or her duties hereunder.

**4.** **NO BREACH OF CONTRACT** 

The Executive hereby represents to the Corporation that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive's duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise bound, except for agreements entered into by and between the Executive and any member of the Group pursuant to applicable law, if any; (ii) that the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his or her duties hereunder; (iii) that the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be.

**5.** **Intentionally Omitted** 

**6.** **COMPENSATION AND BENEFITS** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. The Executive's base salary shall be as determined from time to time by the Board of Directors and shall be paid
 by the Operating Subsidiary. No separate base salary shall be payable by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Bonus</u>. The Executive shall
 be eligible for an annual bonus, subject to achievement of both individual and company performance targets as determined by the Board
 or the compensation committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benefits</u>.
 The Executive is eligible for participation in any standard employee benefit plan of the Operating Subsidiary or the Corporation
 that currently exists or may be adopted in the future, including, but not limited to, any retirement plan, life insurance plan, health
 insurance plan and travel/holiday plan. Such benefits shall be provided by the Operating Subsidiary unless otherwise determined by
 the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expenses</u>.
 The Executive shall be entitled to reimbursement by the Corporation for all reasonable ordinary and necessary travel and other expenses
 incurred by the Executive in the performance of his or her duties under this Agreement; provided that he properly accounts for such
 expenses in accordance with the Corporation's policies and procedures.

**7.** **TERMINATION OF THE AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By the Corporation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>For Cause</u>. The Corporation may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), 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;(1) the Executive is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive has been grossly negligent or acted dishonestly to the detriment of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive has engaged in actions amounting to willful misconduct or failed to perform his or her duties hereunder and such failure continues after the Executive is afforded a reasonable opportunity to cure such failure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive violates Section 8 of this Agreement.

Upon termination for cause, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary. The Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive's right to all other benefits will terminate, except as required by any applicable law. Termination of the Executive's position with the Corporation for cause shall also constitute grounds for termination of the Executive's employment with the Operating Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>For death and disability</u>. The Corporation may also terminate the Employment, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), 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;(1) the Executive has died, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive has a disability which shall mean a physical or mental impairment which, as reasonably determined by the Corporation, renders the Executive unable to perform the essential functions of his employment with the Corporation, with or without reasonable accommodation, for more than 90 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply.

Upon termination for death or disability, the Executive (or the Executive's estate or beneficiaries, as applicable) shall be entitled to the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary. The Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive's right to all other benefits will terminate, except as required by any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Without Cause</u>. The Corporation may terminate the Employment without cause, at any time, upon sixty (60) days' prior written notice. Upon termination without cause, the Executive shall be entitled to (i) the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary, (ii) continued payment of the Executive's base salary for a period of 6 months following the date of termination, payable in accordance with the Operating Subsidiary's regular payroll practices. The Executive will not be entitled to receive payment of any severance benefits or other amounts, and the Executive's right to all other benefits will terminate, except as required by any applicable law. Termination of the Executive's position with the Corporation without cause shall not automatically terminate the Executive's employment with the Operating Subsidiary, which shall be governed by any employment arrangement between the Executive and the Operating Subsidiary and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By the Executive</u>. The Executive may resign from the Employment at any time upon sixty (60) days' written notice to the Corporation.
 Upon resignation, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination, to be paid
 by the Operating Subsidiary. The Executive will not be entitled to receive payment of any severance benefits or other amounts, and
 the Executive's right to all other benefits will terminate, except as required by any applicable law. Resignation from the
 Executive's position with the Corporation shall not automatically terminate the Executive's employment with the Operating
 Subsidiary, which shall be governed by any employment arrangement between the Executive and the Operating Subsidiary and applicable
 law.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Termination.</u> Except otherwise provided, any termination of the Executive's employment under this Agreement shall
 be communicated by written notice of termination from the terminating party to the other party. The notice of termination shall indicate
 the specific provision(s) of this Agreement relied upon in effecting the termination.

**8.** **CONFIDENTIALITY AND NON-DISCLOSURE** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality and Non-Disclosure</u>. The Executive hereby agrees at all times during the term of the Employment and after his or her termination,
 to hold in the strictest confidence, and not to use, except for the benefit of the Corporation, or to disclose to any person, corporation
 or other entity without prior written consent of the Corporation, any Confidential Information. The Executive understands that " <u>Confidential Information</u> " means any proprietary or confidential information of the Corporation, its affiliates, or their respective
 clients, customers or partners, including, without limitation, technical data, trade secrets, research and development information,
 product plans, services, customer lists and customers, supplier lists and suppliers, software developments, inventions, processes,
 formulas, technology, designs, hardware configuration information, personnel information, marketing, finances, information about
 the suppliers, joint ventures, franchisees, distributors and other persons with whom the Corporation does business, information regarding
 the skills and compensation of other employees of the Corporation or other business information disclosed to the Executive by or
 obtained by the Executive from the Corporation, its affiliates, or their respective clients, customers or partners, either directly
 or indirectly, in writing, orally or otherwise, if specifically indicated to be confidential or reasonably expected to be confidential.
 Notwithstanding the foregoing, Confidential Information shall not include information that is generally available and known to the
 public through no fault of the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporation Property</u>. The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created,
 received or transmitted in connection with his or her work or using the facilities of the Corporation are property of the Corporation
 and subject to inspection by the Corporation at any time. Upon termination of the Executive's employment with the Corporation
 (or at any other time when requested by the Corporation), the Executive will promptly deliver to the Corporation all documents and
 materials of any nature pertaining to his or her work with the Corporation and will provide written certification of his or her compliance
 with this Agreement. Under no circumstances will the Executive have, following his termination, in his or her possession any property
 of the Corporation, or any documents or materials or copies thereof containing any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Former Employer Information</u>. The Executive agrees that he has not and will not, during the term of his or her employment, (i) improperly
 use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the Executive
 has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into the premises of
 the Corporation any document or confidential or proprietary information belonging to such former employer, person or entity unless
 consented to in writing by such former employer, person or entity. The Executive will indemnify the Corporation and hold it harmless
 from and against all claims, liabilities, damages and expenses, including reasonable attorneys' fees and costs of suit, arising
 out of or in connection with any violation of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Third Party Information</u>. The Executive recognizes that the Corporation may have received, and in the future may receive, from third
 parties their confidential or proprietary information subject to a duty on the Corporation's part to maintain the confidentiality
 of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Corporation
 and such third parties, during the Executive's employment by the Corporation and thereafter, a duty to hold all such confidential
 or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent
 with, and for the limited purposes permitted by, the Corporation's agreement with such third party.

This Section 8 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 8, the Corporation shall have right to seek remedies permissible under applicable law.

**9.** **WITHHOLDING TAXES** 

Notwithstanding anything else herein to the contrary, the Corporation may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

**10.** **ASSIGNMENT** 

This Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided, however, that (i) the Corporation may assign or transfer this Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a change of control transaction, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Corporation hereunder.

**11.** **SEVERABILITY** 

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

**12.** **ENTIRE AGREEMENT** 

This Agreement constitutes the entire agreement and understanding between the Executive and the Corporation regarding the terms of the Executive's service as an officer of the Corporation and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter; provided, however, that this Agreement is intended to supplement, and not supersede, any employment arrangement between the Executive and the Operating Subsidiary. To the extent of any conflict between this Agreement and any employment arrangement between the Executive and the Operating Subsidiary with respect to the Executive's duties and obligations to the Corporation, this Agreement shall control. The Executive acknowledges that he or she has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be in writing and signed by the Executive and the Corporation.

**13.** **GOVERNING LAW; JURISDICTION** 

This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and each of the parties irrevocably consents to the jurisdiction and venue of the federal and state courts located in Delaware.

**14.** **AMENDMENT** 

This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

**15.** **WAIVER** 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

**16.** **NOTICES** 

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

**17.** **COUNTERPARTS** 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

**18.** **NO INTERPRETATION AGAINST DRAFTER** 

Each party recognizes that this Agreement is a legally binding contract and acknowledges that it, he or she has had the opportunity to consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such terms.

 

*[Remainder of this page has been intentionally left blank.]*

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

---

| | |
|:---|:---|
| **BW Industrial Holdings Inc.** | **BW Industrial Holdings Inc.** |
| By: | /s/ Yunlong Zhang |
| Name: | Yunlong Zhang |
| Title: | Sole Director |
| **Executive** | **Executive** |
| Signature: | /s/ Yunlong Zhang |
| Name: | Yunlong Zhang |

---

**<u>Schedule A</u>**

Code of Business Conduct and Ethics

Insider Trading Policy

Policy Relating to the Recovery of Erroneously Awarded Compensation

## Exhibit 10.7

**Exhibit 10.7**

**EMPLOYMENT AGREEMENT**

This EMPLOYMENT AGREEMENT (the "<u>Agreement"</u>) is entered into as of March 5, 2026, by and between, BW Industrial Holdings Inc., a Delaware corporation (the "<u>Corporation</u>"), and Zhimin Chen, an individual (the "<u>Executive"</u>).

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;1. The Executive is currently employed by Bestwater USA Inc., a Texas corporation
and a subsidiary of the Corporation (the " <u>Operating Subsidiary</u> "), pursuant to an offer letter dated December 28, 2018
(the " <u>Offer Letter</u> "). This Agreement is intended to supplement and govern the Executive's service as an officer
of the Corporation, and to the extent of any conflict between this Agreement and the Offer Letter with respect to the Executive's duties
and obligations to the Corporation, this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;2. A.
 The Corporation desires to engage the Executive as its Chief Financial Officer and to assure
 itself of the services of the Executive as an officer of the Corporation during the term
 of Employment (as defined below), in addition to the Executive's employment with the
 Operating Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 Executive desires to serve as an officer of the Corporation during the term of Employment
 and upon the terms and conditions of this Agreement, in addition to the Executive's
 employment with the Operating Subsidiary.

**AGREEMENT**

The parties hereto agree as follows:

**1.** **POSITION** 

The Executive hereby accepts the position of Chief Financial Officer (the "Employment") of the Corporation. The Executive acknowledges that the Executive's compensation and benefits shall be provided by the Operating Subsidiary pursuant to the Offer Letter, and no separate compensation shall be payable by the Corporation under this Agreement except as expressly set forth herein.

**2.** **TERM** 

The Executive's service as an officer of the Corporation shall be on an at-will basis, effective as of the date of this Agreement (the "Effective Date"), and may be terminated by either party at any time, with or without cause, subject to the terms and conditions of this Agreement.

**3.** **DUTIES AND RESPONSIBILITIES** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Executive's duties at the Corporation will include all duties customary for the Executive's position and such other duties
 as may be assigned by the Board of Directors (the " <u>Board</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Executive shall devote all of his or her working time, attention and skills to the performance of his or her duties at the Corporation
 and the Operating Subsidiary and shall faithfully and diligently serve the Corporation in accordance with this Agreement, the Certificate
 of Incorporation and Bylaws of the Corporation, as amended and restated from time to time (the " <u>Charter Documents</u> "),
 and the guidelines, policies and procedures of the Corporation approved from time to time by the Board, as set forth in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The
Executive shall use his or her best efforts to perform his or her duties hereunder.

**4.** **NO BREACH OF CONTRACT** 

The Executive hereby represents to the Corporation that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive's duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise bound, except for agreements entered into by and between the Executive and any member of the Group pursuant to applicable law, if any; (ii) that the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his or her duties hereunder; (iii) that the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be.

**5.** **Intentionally Omitted** 

**6.** **COMPENSATION AND BENEFITS** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. The Executive's base salary shall be as set forth in the Offer Letter and shall be paid
 by the Operating Subsidiary. No separate base salary shall be payable by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Bonus</u>. The Executive shall
 be eligible for an annual bonus, subject to achievement of both individual and company performance targets as determined by the Board
 or the compensation committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benefits</u>.
 The Executive is eligible for participation in any standard employee benefit plan of the Operating Subsidiary or the Corporation
 that currently exists or may be adopted in the future, including, but not limited to, any retirement plan, life insurance plan, health
 insurance plan and travel/holiday plan. Such benefits shall be provided by the Operating Subsidiary unless otherwise determined by
 the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expenses</u>.
 The Executive shall be entitled to reimbursement by the Corporation for all reasonable ordinary and necessary travel and other expenses
 incurred by the Executive in the performance of his or her duties under this Agreement; provided that he properly accounts for such
 expenses in accordance with the Corporation's policies and procedures.

**7.** **TERMINATION OF THE AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By the Corporation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>For Cause</u>. The Corporation may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), 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;(1) the Executive is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive has been grossly negligent or acted dishonestly to the detriment of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive has engaged in actions amounting to willful misconduct or failed to perform his or her duties hereunder and such failure continues after the Executive is afforded a reasonable opportunity to cure such failure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive violates Section 8 of this Agreement.

Upon termination for cause, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary. The Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive's right to all other benefits will terminate, except as required by any applicable law. Termination of the Executive's position with the Corporation for cause shall also constitute grounds for termination of the Executive's employment with the Operating Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>For death and disability</u>. The Corporation may also terminate the Employment, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), 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;(1) the Executive has died, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive has a disability which shall mean a physical or mental impairment which, as reasonably determined by the Corporation, renders the Executive unable to perform the essential functions of his employment with the Corporation, with or without reasonable accommodation, for more than 90 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply.

Upon termination for death or disability, the Executive (or the Executive's estate or beneficiaries, as applicable) shall be entitled to the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary. The Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive's right to all other benefits will terminate, except as required by any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Without Cause</u>. The Corporation may terminate the Employment without cause, at any time, upon sixty (60) days' prior written notice. Upon termination without cause, the Executive shall be entitled to (i) the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary, (ii) continued payment of the Executive's base salary for a period of 6 months following the date of termination, payable in accordance with the Operating Subsidiary's regular payroll practices. The Executive will not be entitled to receive payment of any severance benefits or other amounts, and the Executive's right to all other benefits will terminate, except as required by any applicable law. Termination of the Executive's position with the Corporation without cause shall not automatically terminate the Executive's employment with the Operating Subsidiary, which shall be governed by the Offer Letter and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By the Executive</u>. The Executive may resign from the Employment at any time upon sixty (60) days' written notice to the Corporation.
 Upon resignation, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination, to be paid
 by the Operating Subsidiary. The Executive will not be entitled to receive payment of any severance benefits or other amounts, and
 the Executive's right to all other benefits will terminate, except as required by any applicable law. Resignation from the
 Executive's position with the Corporation shall not automatically terminate the Executive's employment with the Operating
 Subsidiary, which shall be governed by the Offer Letter and applicable
 law.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Termination.</u> Except otherwise provided, any termination of the Executive's employment under this Agreement shall
 be communicated by written notice of termination from the terminating party to the other party. The notice of termination shall indicate
 the specific provision(s) of this Agreement relied upon in effecting the termination.

**8.** **CONFIDENTIALITY AND NON-DISCLOSURE** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality and Non-Disclosure</u>. The Executive hereby agrees at all times during the term of the Employment and after his or her termination,
 to hold in the strictest confidence, and not to use, except for the benefit of the Corporation, or to disclose to any person, corporation
 or other entity without prior written consent of the Corporation, any Confidential Information. The Executive understands that " <u>Confidential Information</u> " means any proprietary or confidential information of the Corporation, its affiliates, or their respective
 clients, customers or partners, including, without limitation, technical data, trade secrets, research and development information,
 product plans, services, customer lists and customers, supplier lists and suppliers, software developments, inventions, processes,
 formulas, technology, designs, hardware configuration information, personnel information, marketing, finances, information about
 the suppliers, joint ventures, franchisees, distributors and other persons with whom the Corporation does business, information regarding
 the skills and compensation of other employees of the Corporation or other business information disclosed to the Executive by or
 obtained by the Executive from the Corporation, its affiliates, or their respective clients, customers or partners, either directly
 or indirectly, in writing, orally or otherwise, if specifically indicated to be confidential or reasonably expected to be confidential.
 Notwithstanding the foregoing, Confidential Information shall not include information that is generally available and known to the
 public through no fault of the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporation Property</u>. The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created,
 received or transmitted in connection with his or her work or using the facilities of the Corporation are property of the Corporation
 and subject to inspection by the Corporation at any time. Upon termination of the Executive's employment with the Corporation
 (or at any other time when requested by the Corporation), the Executive will promptly deliver to the Corporation all documents and
 materials of any nature pertaining to his or her work with the Corporation and will provide written certification of his or her compliance
 with this Agreement. Under no circumstances will the Executive have, following his termination, in his or her possession any property
 of the Corporation, or any documents or materials or copies thereof containing any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Former Employer Information</u>. The Executive agrees that he has not and will not, during the term of his or her employment, (i) improperly
 use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the Executive
 has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into the premises of
 the Corporation any document or confidential or proprietary information belonging to such former employer, person or entity unless
 consented to in writing by such former employer, person or entity. The Executive will indemnify the Corporation and hold it harmless
 from and against all claims, liabilities, damages and expenses, including reasonable attorneys' fees and costs of suit, arising
 out of or in connection with any violation of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Third Party Information</u>. The Executive recognizes that the Corporation may have received, and in the future may receive, from third
 parties their confidential or proprietary information subject to a duty on the Corporation's part to maintain the confidentiality
 of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Corporation
 and such third parties, during the Executive's employment by the Corporation and thereafter, a duty to hold all such confidential
 or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent
 with, and for the limited purposes permitted by, the Corporation's agreement with such third party.

This Section 8 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 8, the Corporation shall have right to seek remedies permissible under applicable law.

**9.** **WITHHOLDING TAXES** 

Notwithstanding anything else herein to the contrary, the Corporation may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

**10.** **ASSIGNMENT** 

This Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided, however, that (i) the Corporation may assign or transfer this Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a change of control transaction, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Corporation hereunder.

**11.** **SEVERABILITY** 

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

**12.** **ENTIRE AGREEMENT** 

This Agreement constitutes the entire agreement and understanding between the Executive and the Corporation regarding the terms of the Executive's service as an officer of the Corporation and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter; provided, however, that this Agreement is intended to supplement, and not supersede, the Offer Letter with respect to the Executive's employment with the Operating Subsidiary. To the extent of any conflict between this Agreement and the Offer Letter with respect to the Executive's duties and obligations to the Corporation, this Agreement shall control. The Executive acknowledges that he or she has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be in writing and signed by the Executive and the Corporation.

**13.** **GOVERNING LAW; JURISDICTION** 

This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and each of the parties irrevocably consents to the jurisdiction and venue of the federal and state courts located in Delaware.

**14.** **AMENDMENT** 

This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

**15.** **WAIVER** 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

**16.** **NOTICES** 

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

**17.** **COUNTERPARTS** 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

**18.** **NO INTERPRETATION AGAINST DRAFTER** 

Each party recognizes that this Agreement is a legally binding contract and acknowledges that it, he or she has had the opportunity to consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such terms.

 

*[Remainder of this page has been intentionally left blank.]*

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

---

| | |
|:---|:---|
| **BW Industrial Holdings Inc.** | **BW Industrial Holdings Inc.** |
| By: | /s/ Yunlong Zhang |
| Name: | Yunlong Zhang |
| Title: | Sole Director |
| **Executive** | **Executive** |
| Signature: | /s/ Zhimin Chen |
| Name: | Zhimin Chen |

---

**<u>Schedule A</u>**

Code of Business Conduct and Ethics

Insider Trading Policy

Policy Relating to the Recovery of Erroneously Awarded Compensation

## Exhibit 10.8

**Exhibit 10.8**

**EMPLOYMENT AGREEMENT**

This EMPLOYMENT AGREEMENT (the "<u>Agreement"</u>) is entered into as of March 5, 2026, by and between, BW Industrial Holdings Inc., a Delaware corporation (the "<u>Corporation</u>"), and Robert Sliva, an individual (the "<u>Executive"</u>).

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;1. The Executive is currently employed by Bestwater USA Inc., a Texas corporation
and a subsidiary of the Corporation (the " <u>Operating Subsidiary</u> "), pursuant to an offer letter dated 04/25/2025 (the
" <u>Offer Letter</u> "). This Agreement is intended to supplement and govern the Executive's service as an officer of
the Corporation, and to the extent of any conflict between this Agreement and the Offer Letter with respect to the Executive's duties
and obligations to the Corporation, this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;2. A.
 The Corporation desires to engage the Executive as its Chief Operating Officer and to assure
 itself of the services of the Executive as an officer of the Corporation during the term
 of Employment (as defined below), in addition to the Executive's employment with the
 Operating Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 Executive desires to serve as an officer of the Corporation during the term of Employment
 and upon the terms and conditions of this Agreement, in addition to the Executive's
 employment with the Operating Subsidiary.

**AGREEMENT**

The parties hereto agree as follows:

**1.** **POSITION** 

The Executive hereby accepts the position of Chief Operating Officer (the "Employment") of the Corporation. The Executive acknowledges that the Executive's compensation and benefits shall be provided by the Operating Subsidiary pursuant to the Offer Letter, and no separate compensation shall be payable by the Corporation under this Agreement except as expressly set forth herein.

**2.** **TERM** 

The Executive's service as an officer of the Corporation shall be on an at-will basis, effective as of the date of this Agreement (the "Effective Date"), and may be terminated by either party at any time, with or without cause, subject to the terms and conditions of this Agreement.

**3.** **DUTIES AND RESPONSIBILITIES** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Executive's duties at the Corporation will include all duties customary for the Executive's position and such other duties
 as may be assigned by the Board of Directors (the " <u>Board</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Executive shall devote all of his or her working time, attention and skills to the performance of his or her duties at the Corporation
 and the Operating Subsidiary and shall faithfully and diligently serve the Corporation in accordance with this Agreement, the Certificate
 of Incorporation and Bylaws of the Corporation, as amended and restated from time to time (the " <u>Charter Documents</u> "),
 and the guidelines, policies and procedures of the Corporation approved from time to time by the Board, as set forth in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The
Executive shall use his or her best efforts to perform his or her duties hereunder.

**4.** **NO BREACH OF CONTRACT** 

The Executive hereby represents to the Corporation that: (i) the execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive's duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or otherwise bound, except for agreements entered into by and between the Executive and any member of the Group pursuant to applicable law, if any; (ii) that the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other person or entity which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his or her duties hereunder; (iii) that the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity except for other member(s) of the Group, as the case may be.

**5.** **Intentionally Omitted** 

**6.** **COMPENSATION AND BENEFITS** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. The Executive's base salary shall be as set forth in the Offer
Letter and shall be paid by the Operating Subsidiary. No separate base salary shall be payable by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Bonus</u>. The Executive shall
 be eligible for an annual bonus, subject to achievement of both individual and company performance targets as determined by the Board
 or the compensation committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benefits</u>.
 The Executive is eligible for participation in any standard employee benefit plan of the Operating Subsidiary or the Corporation
 that currently exists or may be adopted in the future, including, but not limited to, any retirement plan, life insurance plan, health
 insurance plan and travel/holiday plan. Such benefits shall be provided by the Operating Subsidiary unless otherwise determined by
 the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expenses</u>.
 The Executive shall be entitled to reimbursement by the Corporation for all reasonable ordinary and necessary travel and other expenses
 incurred by the Executive in the performance of his or her duties under this Agreement; provided that he properly accounts for such
 expenses in accordance with the Corporation's policies and procedures.

**7.** **TERMINATION OF THE AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By the Corporation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>For Cause</u>. The Corporation may terminate the Employment for cause, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), 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;(1) the Executive is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive has been grossly negligent or acted dishonestly to the detriment of the Corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive has engaged in actions amounting to willful misconduct or failed to perform his or her duties hereunder and such failure continues after the Executive is afforded a reasonable opportunity to cure such failure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive violates Section 8 of this Agreement.

Upon termination for cause, the Executive shall be entitled to the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary. The Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive's right to all other benefits will terminate, except as required by any applicable law. Termination of the Executive's position with the Corporation for cause shall also constitute grounds for termination of the Executive's employment with the Operating Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>For death and disability</u>. The Corporation may also terminate the Employment, at any time, without notice or remuneration (unless notice or remuneration is specifically required by applicable law, in which case notice or remuneration will be provided in accordance with applicable law), 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;(1) the Executive has died, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive has a disability which shall mean a physical or mental impairment which, as reasonably determined by the Corporation, renders the Executive unable to perform the essential functions of his employment with the Corporation, with or without reasonable accommodation, for more than 90 days in any 12-month period, unless a longer period is required by applicable law, in which case that longer period would apply.

Upon termination for death or disability, the Executive (or the Executive's estate or beneficiaries, as applicable) shall be entitled to the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary. The Executive will not be entitled to receive payment of any severance benefits or other amounts by reason of the termination, and the Executive's right to all other benefits will terminate, except as required by any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Without Cause</u>. The Corporation may terminate the Employment without cause, at any time, upon thirty (30) days' prior written notice. Upon termination without cause, the Executive shall be entitled to (i) the amount of base salary earned and not paid prior to termination, to be paid by the Operating Subsidiary, and (ii) any benefits required to be provided under applicable law. The Executive shall not be entitled to any severance or continued salary payments following the date of termination. Termination of the Executive's position with the Corporation without cause shall not automatically terminate the Executive's employment with the Operating Subsidiary, which shall be governed by the Offer Letter and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By the Executive</u>. The Executive may resign from the Employment at any time upon thirty
(30) days' written notice to the Corporation. Upon resignation, the Executive shall be entitled to the amount of base salary earned
and not paid prior to termination, to be paid by the Operating Subsidiary. The Executive will not be entitled to receive payment of any
severance benefits or other amounts, and the Executive's right to all other benefits will terminate, except as required by any applicable
law. Resignation from the Executive's position with the Corporation shall not automatically terminate the Executive's employment
with the Operating Subsidiary, which shall be governed by the Offer Letter and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notice of Termination.</u> Except otherwise provided, any termination of the Executive's employment under this Agreement shall
 be communicated by written notice of termination from the terminating party to the other party. The notice of termination shall indicate
 the specific provision(s) of this Agreement relied upon in effecting the termination.

**8.** **CONFIDENTIALITY AND NON-DISCLOSURE** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidentiality and Non-Disclosure</u>. The Executive hereby agrees at all times during the term of the Employment and after his or her termination,
 to hold in the strictest confidence, and not to use, except for the benefit of the Corporation, or to disclose to any person, corporation
 or other entity without prior written consent of the Corporation, any Confidential Information. The Executive understands that " <u>Confidential Information</u> " means any proprietary or confidential information of the Corporation, its affiliates, or their respective
 clients, customers or partners, including, without limitation, technical data, trade secrets, research and development information,
 product plans, services, customer lists and customers, supplier lists and suppliers, software developments, inventions, processes,
 formulas, technology, designs, hardware configuration information, personnel information, marketing, finances, information about
 the suppliers, joint ventures, franchisees, distributors and other persons with whom the Corporation does business, information regarding
 the skills and compensation of other employees of the Corporation or other business information disclosed to the Executive by or
 obtained by the Executive from the Corporation, its affiliates, or their respective clients, customers or partners, either directly
 or indirectly, in writing, orally or otherwise, if specifically indicated to be confidential or reasonably expected to be confidential.
 Notwithstanding the foregoing, Confidential Information shall not include information that is generally available and known to the
 public through no fault of the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporation Property</u>. The Executive understands that all documents (including computer records, facsimile and e-mail) and materials created,
 received or transmitted in connection with his or her work or using the facilities of the Corporation are property of the Corporation
 and subject to inspection by the Corporation at any time. Upon termination of the Executive's employment with the Corporation
 (or at any other time when requested by the Corporation), the Executive will promptly deliver to the Corporation all documents and
 materials of any nature pertaining to his or her work with the Corporation and will provide written certification of his or her compliance
 with this Agreement. Under no circumstances will the Executive have, following his termination, in his or her possession any property
 of the Corporation, or any documents or materials or copies thereof containing any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Former Employer Information</u>. The Executive agrees that he has not and will not, during the term of his or her employment, (i) improperly
 use or disclose any proprietary information or trade secrets of any former employer or other person or entity with which the Executive
 has an agreement or duty to keep in confidence information acquired by Executive, if any, or (ii) bring into the premises of
 the Corporation any document or confidential or proprietary information belonging to such former employer, person or entity unless
 consented to in writing by such former employer, person or entity. The Executive will indemnify the Corporation and hold it harmless
 from and against all claims, liabilities, damages and expenses, including reasonable attorneys' fees and costs of suit, arising
 out of or in connection with any violation of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Third Party Information</u>. The Executive recognizes that the Corporation may have received, and in the future may receive, from third
 parties their confidential or proprietary information subject to a duty on the Corporation's part to maintain the confidentiality
 of such information and to use it only for certain limited purposes. The Executive agrees that the Executive owes the Corporation
 and such third parties, during the Executive's employment by the Corporation and thereafter, a duty to hold all such confidential
 or proprietary information in the strictest confidence and not to disclose it to any person or firm and to use it in a manner consistent
 with, and for the limited purposes permitted by, the Corporation's agreement with such third party.

This Section 8 shall survive the termination of this Agreement for any reason. In the event the Executive breaches this Section 8, the Corporation shall have right to seek remedies permissible under applicable law.

**9.** **WITHHOLDING TAXES** 

Notwithstanding anything else herein to the contrary, the Corporation may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

**10.** **ASSIGNMENT** 

This Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided, however, that (i) the Corporation may assign or transfer this Agreement or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a change of control transaction, this Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor shall discharge and perform all the promises, covenants, duties, and obligations of the Corporation hereunder.

**11.** **SEVERABILITY** 

If any provision of this Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable.

**12.** **ENTIRE AGREEMENT** 

This Agreement constitutes the entire agreement and understanding between the Executive and the Corporation regarding the terms of the Executive's service as an officer of the Corporation and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter; provided, however, that this Agreement is intended to supplement, and not supersede, the Offer Letter with respect to the Executive's employment with the Operating Subsidiary. To the extent of any conflict between this Agreement and the Offer Letter with respect to the Executive's duties and obligations to the Corporation, this Agreement shall control. The Executive acknowledges that he or she has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set forth in this Agreement. Any amendment to this Agreement must be in writing and signed by the Executive and the Corporation.

**13.** **GOVERNING LAW; JURISDICTION** 

This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and each of the parties irrevocably consents to the jurisdiction and venue of the federal and state courts located in Delaware.

**14.** **AMENDMENT** 

This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly referring to this Agreement, which agreement is executed by both of the parties hereto.

**15.** **WAIVER** 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

**16.** **NOTICES** 

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii) sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

**17.** **COUNTERPARTS** 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.

**18.** **NO INTERPRETATION AGAINST DRAFTER** 

Each party recognizes that this Agreement is a legally binding contract and acknowledges that it, he or she has had the opportunity to consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such terms.

 

*[Remainder of this page has been intentionally left blank.]*

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

---

| | |
|:---|:---|
| **BW Industrial Holdings Inc.** | **BW Industrial Holdings Inc.** |
| By: | /s/ Yunlong Zhang |
| Name: | Yunlong Zhang |
| Title: | Sole Director |
| **Executive** | **Executive** |
| Signature: | /s/ Robert Sliva |
| Name: | Robert Sliva |

---

**<u>Schedule A</u>**

Code of Business Conduct and Ethics

Insider Trading Policy

Policy Relating to the Recovery of Erroneously Awarded Compensation

## Exhibit 10.9

**Exhibit 10.9**

**OWNER –CONTRACTOR AGREEMENT**

**(STIPULATED SUM AGREEMENT)**

THIS AGREEMENT, is entered into as of the 12th day of December, 2025 by and between Canadian Solar US Module Manufacturing Corporation (the "Owner") and BW Industrial Construction (the "Contractor"), for the construction of Mesquite Line Expansion Project located at 3000 Skyline Dr. Mesquite, TX 75149 (the "Project") described in the Contract Documents listed on **Exhibit A** hereto. In consideration of the mutual covenants and conditions contained herein, and other good and valuable consideration, the Owner and Contractor, intending to be legally bound, agree as follows:

**<u>ARTICLE 1</u>**

**<u>SCOPE DEFINITIONS AND EXHIBITS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.1 <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.1.1** Not 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;**1.1.2** <u>"Affiliate"</u> or <u>"Affiliated Entity"</u> of a specified Person mean any entity, corporation, partnership, limited liability company, sole proprietorship or other Person that directly or indirectly, through one or more intermediaries controls, is controlled by, or is under common control with the Person specified. For purposes of this definition, the terms "controls," "controlled by," or "under common control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person. For purposes of this definition, the term "Person" means: (1) an individual, sole proprietorship, corporation, limited liability company, partnership, joint venture, joint stock company, estate, trust, limited liability association, unincorporated association or other entity or organization; (2) any federal, state, county or municipal government (or any bureau, department, agency or instrumentality thereof); and (3) any fiduciary acting in such capacity on behalf 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;**1.1.3** "<u>Agreement</u>" means this Agreement between Owner and Contractor, including all schedules, exhibits, attachments and other documents annexed hereto and made part hereof or incorporated herein by reference, as well as any addenda hereto or modifications hereof made and entered into as provided 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; **1.1.4** "<u>Application for Payment</u>" has the meaning ascribed to it in Paragraph 4.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.5** "<u>Applicable Law</u>" means all federal, state and local statutes, ordinances, codes, rules and regulations that may apply to the Work, the parties or the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.6** "<u>Architect</u>" means that certain person or entity designated from time to time by the Owner as the Architect by written notice delivered to the Contractor as herein provided. As of the date of this Agreement, the Architect is JFE Engineering LLC. If the person or entity so identified is an engineer, for purposes of site work or other discrete portions of the Work, then the term Architect as used in this Agreement shall be construed to mean engineer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.7** "<u>Completion Dates</u>" means the Substantial Completion Date and any other Milestone Dates set forth in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.8** "<u>Contract Documents</u>" means this Agreement, the Drawings, the Specifications, all documents incorporated by reference into any of the foregoing documents, and all other documents, if any, set forth in the Schedule of Contract Documents attached hereto as **Exhibit A**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.9** "<u>Contractor's Fee</u>" has the meaning ascribed to it in Paragraph 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.10** <u>"Contractor's Representative"</u> is the person designated from time to time by the Contractor as its representative in a notice delivered to the Owner as herein provided. The Contractor's Representative shall be authorized to represent the Contractor in all matters regarding this Agreement and the Project. As of the date of the Agreement, the Contractor's Representative is Gary Macha.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.11** "<u>Drawings</u>" means, collectively, (i) the drawings listed in **Exhibit A**, (ii) such additional plats, drawings, profiles, typical cross-sections, general cross-sections, working drawings and supplemental drawings concerning the Work as may hereafter be issued and approved by the Owner's Representative, and (iii) such amendments to any of the foregoing documents as may be issued and approved by the Owner's 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;**1.1.12** "<u>Indemnitees</u>" means the Owner identified herein and its Affiliates, the Lender(s), and each of their respective directors, officers, board members, shareholders, members, partners, employees and agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.1.13** "<u>Lender</u>" means any Person providing financing for the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.14** "<u>Milestone</u>" means certain identified requirements for completing specific portions of the Work. Milestones and corresponding Milestone dates, if any, are identified in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.15** "<u>Milestone Date</u>" means the date (if any) specified in Section 3.1 for completing a specified Milestone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.16** "<u>Owner's Construction Manager</u>" has the meaning ascribed to it in Paragraph 6.6.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.17** "<u>Owner's Representative(s)</u>" is the person designated from time to time by the Owner as its representative. The Owner's Representative shall be authorized to represent the Owner in all matters regarding this Agreement and the Project. As of the date of the Agreement, the Owner's Representative(s) are <u>Rusty Schmidt and Xunhao Zhuo</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.1.18** "<u>Project Schedule</u>" shall have the meaning ascribed to it in Paragraph 6.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.19** "<u>Punch List</u>" means (unless otherwise defined in this Agreement) a list prepared by the Contractor for the Owner and Architect's review and approval, containing minor incomplete or defective items to be completed or corrected by the Contractor in accordance with the Contract Documents, and which otherwise do not have a material impact on the use or operation of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.1.20** "<u>Schedule of Values</u>" has the meaning ascribed to it in Paragraph 4.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.21** "<u>Specifications</u>" means the specifications listed in **Exhibit A** and all additions thereto hereafter issued by the Architect and approved by the Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.22** "<u>Subcontractors</u>" means those persons or other entities which contract directly with Contractor to furnish any portion of the Work, including suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.23** <u>"Sub-subcontractor"</u> means a person or entity at any tier who has a direct or indirect contract with a Subcontractor to perform any of the Work at the site, including suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.1.24** "<u>Substantial Completion</u>" has the meaning ascribed to it in Paragraph 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.25** "<u>Substantial Completion Date</u>" is the date identified for Substantial Completion of the Work or a portion thereof as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.2 <u>Exhibits</u>.** The following Exhibits attached hereto are part 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; **1.2.1 Exhibit A** – Schedule of Drawings, Specifications, and other Contract 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; **1.2.2 Exhibit B** – Not Used, 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; **1.2.3 Exhibit C** – Interim Lien Waiver and Payment Affidavit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.2.4 Exhibit D** – Final Lien Waiver and Payment Affidavit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.2.5 Exhibit E** – Change Order

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.2.6 Exhibit F** – Construction Change Directive

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.2.7 Exhibit G** – Insurance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2.8 Exhibit H** – Schedule of Values

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.2.9 Exhibit I** – Project Schedule

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.2.10 Exhibit J** – Not Used, 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; **1.2.11 Exhibit K** – Owner Furnished Contractor Installed Equipment

**<u>ARTICLE 2</u>**

**<u>THE WORK</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 <u>Performance of the Work</u>.** Contractor agrees to furnish all supervision, labor, materials, tools, equipment, supplies, and services, and shall perform all other acts and supply all other things necessary to perform the work described in the Contract Documents, including all work expressly specified therein and all such additional work as may be reasonably inferable therefrom, saving only those items of work as are specifically stated in the Contract Documents not to be the obligations of the Contractor (the "Work"). The Contractor warrants and represents that the Contractor's Qualifications and Exclusions attached as **Exhibit B** includes any and all qualifications of the Contractor as to the scope of Work required hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 <u>The Project</u>.** The Work may constitute the whole or part of any work on the Project. Contractor acknowledges that Owner may complete any work on the Project, outside the scope of Contractor's Work, with other contractors.

**<u>ARTICLE 3</u>**

**<u>CONTRACT TIME</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 <u>Commencement and Completion of the Work</u>.** The Contractor shall commence the Work upon a written notice to proceed by the Owner and shall continue to diligently perform the Work thereafter. The Contractor shall achieve Substantial Completion of the Work on or before April 20, 2026 shall achieve Final Completion (as defined below) on or before May 22, 2026, and shall achieve any Milestones by the Milestones Dates (if any) identified below**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 <u>Definition of Substantial Completion</u>.** Substantial Completion is the stage in the progress of the Work (or designated portion thereof) when the Contractor has completed all Work in accordance with the Contract Documents and the Work can be used for its intended purposes, except for Punch List Work. The project schedule shall include, without limitation, the Contractor's commitment to timely complete the following tasks necessary for Substantial Completion of the Work: commissioning of facility equipment such as RTUs, process cooling water systems, and air compressors, to avoid situations where only power to production line equipment is delivered but environmental temperature, humidity, or other facility systems cannot be provided within the required timeframe, which could cause production losses or commissioning delays ("Critical Tasks"). Without limitation of Contractor's other duties under this Agreement, Contractor's failure to timely accomplish any one of the Critical Tasks in accordance with the Contract Documents will delay Contractor's achievement of Substantial Completion. In addition, the Work will not be considered suitable for Substantial Completion review until all required governmental inspections and certifications have been made and posted, and a certificate of occupancy/completion (or its equivalent in the jurisdiction where the Project is located) is obtained. As a further condition of Substantial Completion acceptance, the Contractor shall certify that all remaining Work will be completed within thirty (30) consecutive calendar days following the Substantial Completion Date unless mutually agreed otherwise by Owner and Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 <u>Delays</u>.** Time is of the essence in the performance of this Agreement. The Contractor shall take all necessary actions required to remedy any delay due to the fault of the Contractor or anyone working under Contractor, including, without limitation, providing additional forces to perform the Work, or working overtime at the Contractor's expense. If the Contractor does not complete the Work by the required Completion Dates specified in this Agreement, as may be modified by Change Order, then the Contractor shall be liable for liquidated damages as set forth below. With respect to the damages suffered by Owner as a result of any delay in completion of the Work (which damages are certain to be incurred, but which are difficult, if not impossible, to quantify), the parties agree that the Contractor shall be assessed as liquidated damages, and not as a penalty, the following (if there are multiple milestones/dates, the liquidated damages may be assessed cumulatively):

$2000 per calendar day of delay until Substantial Completion is achieved

The Contractor acknowledges and agrees that the liquidated damages set forth above are merely intended to cover the Owner's damages arising out of delay, and not damages arising out of any other failure to perform or negligence on the part of the Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 <u>Survival of Obligations</u>.** The terms of this Article shall survive any termination or breach of this Agreement and shall remain in effect so long as the parties are entitled to protection of their rights under Applicable Law.

**<u>ARTICLE 4</u>**

**<u>FEES AND PAYMENT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 <u>Contract Sum</u>.** In return for the Contractor's timely and proper performance of all Work, Owner shall pay Contractor the stipulated sum amount of $11,489,000.00 in accordance with the terms of this Agreement, subject to additions and deletions as provided for in this Agreement (the "Contract Sum"). The Parties acknowledge that the Owner has previously issued a Limited Authorization to Proceed dated November 24, 2025 ("LAP") to the Contractor, which governs the procurement, funding, and payment terms for materials, equipment, and other items authorized under the LAP. Owner and Contractor understand and agree that the Contract Sum of this Agreement is inclusive of Contractor's compensation under the LAP. Any adjustments to the Contract Sum shall be by Change Order pursuant to the provisions of Article 7. Owner agrees to pay to Contractor, as part of the Contract Sum, a fee for the performance of the Work (the "Contractor's Fee"), which is intended to cover the Contractor's profit and general overhead costs. The Contractor's Fee shall be separately itemized on the Schedule of Values.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 <u>Adjustment of Contractor's Fee</u>.** For changes in the Work not governed by unit prices, the Contractor's Fee shall be increased or decreased (as the case may be) by an amount equal to **three percent (3%)** of the actual cost to Contractor of any changed Work performed by the Contractor's forces. There shall be no automatic markup for general conditions costs in any Change Order, as any actual general conditions costs are to be itemized as part of any proposed Change Order, if required by the change in the Work. For changes in the Work, a Subcontractor shall be limited to a markup of **ten percent (10%)** to cover all fee and general conditions costs if the Work is performed by the Subcontractor's forces, and **five percent (5%)** if performed by a Sub-subcontractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 <u>Unit Prices</u>.** A Unit Price Schedule may be attached to this Agreement as an Exhibit or may be developed by the Contractor and approved by the Owner after the date of execution of this Agreement pursuant to a Change Order. All unit prices established pursuant to this Agreement shall include the cost of all labor, materials, equipment and services necessary to perform the work described in the unit cost, and shall also include all fee, profit, overhead and general conditions costs of the Contractor and any Subcontractor or supplier performing the work described in the unit price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 <u>Allowances</u>.** The Contractor shall include in the Contract Sum all allowances stated in the Contract Documents. Items covered by these allowances shall be supplied for such amounts and by such persons as the Owner may direct, but the Contractor will not be required to employ persons against whom it makes a reasonable objection. Unless otherwise provided in the Contract 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;**4.4.1** materials and equipment under an allowance shall be selected by the Owner so as to avoid unreasonable delay in the Work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.2** an allowance shall cover the cost to the Contractor of materials and equipment delivered at the Project site and all required taxes, less applicable trade discounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.3** the Contractor's costs for unloading and handling at the Project site, labor, installation costs, overhead, profit and other expenses contemplated for stated allowance amounts shall be included elsewhere in the Contract Sum, and not in the allowances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4.4** whenever costs are more than or less than allowances, the Contract Sum shall be adjusted accordingly by Change Order. The amount of the Change Order shall reflect the difference between actual costs and the allowances listed in the Contract Documents. The Contractor shall give notice of all potential Change Order claims for increases in allowance amounts in accordance with any notice of claim requirements in the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 <u>Pricing Scope</u>.** The Contractor shall provide and pay for, and the Contract Sum (including additions thereto as provided by this Agreement) shall be deemed to include all Work performed under this Agreement, including all labor, fringe benefits, materials, equipment, services, supervision, site and home office overhead, tools, machinery, water, heat, utilities, transportation, storage, license and permit fees, profits, taxes (including sales, use, local, state or other taxes imposed by any taxing authority) or charges, and all other costs and services required by or reasonably inferable from the Contract Documents for the completion of the Work contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6 <u>Schedule of Values</u>.** The "Schedule of Values" means a schedule, prepared by the Contractor and approved by the Owner's Representative, allocating the entire Contract Sum among the various portions of the Work, and including the Contractor's Fee as a single separate item. The Schedule of Values shall be prepared in such form and supported by such data to substantiate its accuracy as the Owner's Representative or Owner's Lender(s) may require and shall be used as a basis for reviewing the Contractor's Applications for Payment. A Schedule of Values is attached as **Exhibit H** and shall be used as a basis for reviewing the Contractor's Applications for Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7 <u>Applications for Payment</u>.** Contractor shall furnish to Owner (and, if directed by the Owner, Contractor shall furnish a copy to the Architect) monthly applications for payment in such form as may be approved by the Owner not later than the 30<sup>th</sup> day of the month ("Application for Payment"). Detailed support and explanation for each Application for Payment shall be provided, as required by Owner. Each Application for Payment shall be based upon the most recent Schedule of Values approved by the Owner and shall show the percentage of completion applicable to each portion of the Work, as of the end of the period covered by the Application for Payment. Each Application for Payment shall be accompanied by a signed and completed progress report, in a form to be approved by the Owner, for the period covered by the Application for Payment. All Applications for Payment, and payment amounts thereunder, are subject to approval by the Owner's lender. As a condition precedent to payment, the Contractor shall furnish interim lien waivers and payment affidavits on the form attached as **Exhibit C**, executed by Contractor and each Subcontractor and every other person or entity entitled to assert a lien or claim against the Project. Within thirty-five (35) days after the Contractor has furnished the Owner (and Architect, if required) with a complete and accurate Application for Payment as provided by this Agreement, the Owner shall make payment to the Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.8 <u>Payments</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;**4.8.1** The amount of each progress payment shall include: (i) that portion of the Contract Sum properly allocable to completed Work; and (ii) that portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction, or, if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8.2** The amount of each progress payment shall be reduced by: (i) the aggregate of any amounts previously paid by the Owner; (ii) amounts, if any, for which the Owner has withheld approval for payment to the Contractor for reasons which are the fault of the Subcontractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9 <u>Right to Withhold Approval</u>.** The Owner may refuse to make any payment to the Contractor to the extent that the Owner deems it necessary or desirable to protect itself against loss or damage due 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; **4.9.1** defective work not remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9.2** third-party claims, notices of intent to lien, liens, notice of lien on funds, stop notices or similar claims, or reasonable evidence indicating probable filing of such claims or 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;**4.9.3** failure of the Contractor to make payments properly to Subcontractors or for labor, material or equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9.4** reasonable evidence that the Work cannot be competed for the unpaid balance of the Contract Sum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9.5** reasonable evidence that the Work will not be completed by the required completion dates specified 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;**4.9.6** persistent failure to prosecute or carry out the Work, or unsatisfactory supervision of the Work by the Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **4.9.7** damage to the Owner or another Contractor; 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; **4.9.8** accrued liquidated damages (if applicable under this Agreement).

Owner reserves the right to issue joint checks to Contractor and Subcontractors and suppliers as may be necessary to protect Owner's interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10 <u>Retainage</u>.** Owner shall be entitled to retain ten percent (10%) of each monthly payment to Contractor; provided that Owner may, in its sole discretion, release retention as to Subcontractors who have completed their work prior to Substantial Completion, except as otherwise provided herein. Upon achieving Substantial Completion of the Work, the Owner shall continue to hold until Final Completion of the Work (including Punch List Work) the greater of 10% of the Contract Sum or 200% of the Owner's estimate of the value of the Punch List Work and all other amounts that the Owner is entitled to withhold under the Contract Documents. Retainage, as provided by the foregoing sentence, shall be paid thirty (30) days after the Contractor has achieved Final Completion. The foregoing is intended to comply with Section 53.101 of the Tex. Prop. Code. In no event shall the Owner be required to disburse any funds on account of retainage prior to the time such sums are payable pursuant to this Section 4.10; provided, that after such time the Owner will reasonably cooperate with the Contractor to disburse retainage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.11 <u>Final Payment and Final Completion</u>.** Final payment shall be due thirty- (30) days after the following conditions precedent have been satisfied ("Final Completion"): (a) all Work (including Punch List Work and incomplete items) is complete in accordance with the Contract Documents; and (b) the Contractor has delivered the following to the Owner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **4.11.1** final Application for Payment, executed and completed as required 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;**4.11.2** a signed and notarized affidavit from the Contractor, attesting that all payrolls, bills for materials, labor, services and equipment, and other indebtedness connected with the Work, have been paid in full or otherwise 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;**4.11.3** notarized final lien waivers and payment affidavits in the form set forth in **Exhibit D** executed by Contractor and each Subcontractor, Sub-subcontractor, supplier and every other person or entity entitled to assert a lien or claim against the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **4.11.4** consent of sureties, if any, to final payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.11.5** a certificate evidencing that insurance required by the Contract Documents to remain in force after final payment is currently in effect and will not be canceled or allowed to expire until at least 30 days' prior written notice has been given to the Owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.11.6** the issuance of a permanent certificate of occupancy for the Project and any other permits, licenses or approvals required by the Contract Documents, unless the issuance of such permanent certificate of occupancy or other permit, license or approval shall be withheld or delayed due to no fault of the Contractor or anyone working under Contractor; 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;**4.11.7** submittal of any and all as-built documents, training or operation manuals, warranties, guarantees, attic stock, record drawings, test and balance reports, and any other closeout documents or items required by the Contract Documents.

The making of final payment shall not constitute a waiver of any claims or rights by Owner.

**<u>ARTICLE 5</u>**

**<u>CONTRACT ADMINISTRATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 <u>Owner's Representative</u>**. The "Owner's Representative(s)" for this Project are set forth below, and the Contractor acknowledges that only such individuals shall be authorized to make any changes to the Work on behalf of the Owner, as provided in this Agreement. As of the date of this Agreement, the Owner's Representative(s) are Rusty Schmidt and Xunhao Zhuo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 <u>Contractor's Representative</u>.** The "Contractor's Representative" is the person designated from time to time by the Contractor as its representative in a notice delivered to the Owner as herein provided. The Contractor's Representative shall be authorized to represent the Contractor in all matters regarding this Agreement and the Project. As of the date of this Agreement, the Contractor's Representative is Gary Macha .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 <u>Architect</u>.** The Owner may delegate to the Architect some of its rights or responsibilities in this Agreement. However, in no event will the Architect have authority to make any modification to this Agreement or otherwise obligate the Owner to any adjustment in the Contract Sum or extension of the completion dates required herein. The authority of the Architect shall be limited to the provisions of this Agreement and any additional delegation of authority shall be provided in writing by the Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 <u>No Oral Waiver</u>.** The provisions of this Agreement cannot be amended, modified, or waived except by a written Change Order signed by the Owner. The Contractor acknowledges that no one has authority to waive orally, or otherwise release, any duty or obligation arising out of this Agreement. Any waiver, approval or consent granted in writing as provided herein shall not relieve Contractor of the obligation to obtain future waivers, approvals or consents. The parties acknowledge that no course of conduct or dealing between the parties shall serve as a basis for any variation of the requirements of this Agreement, including and in particular the requirements of Article 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5 <u>Site Conditions And Requirements</u>.** The Contractor represents that it has carefully examined and understands all Contract Documents and requirements pertinent to the Work; that it has adequately investigated the nature and conditions of the Project site and locality; that it has familiarized itself with all conditions affecting the difficulty of the Work; and that it has entered into this Agreement based upon its own examination, investigation and evaluation, and not in reliance on any opinions or representations of the Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6 <u>Site Agreement</u>.** If requested by the Owner, the Contractor will prepare for the Owner's review and the Contractor's use a plan for efficient and effective use of the Project site (taking into account access, parking, staging and storage including lay down space, ongoing operations of the Owner, usage of cranes, etc.). Once approved by the Owner this plan must be approved by the authority having jurisdiction over the Project (if required). The Contractor will maintain approved staging, storage, and lay down areas in a neat, orderly condition, providing appropriate safeguards, and restoring such areas to their original condition. Security of all materials, equipment and tools, and the risk of loss associated therewith, are the sole responsibility of the Contractor. In addition, it will be the Contractor's responsibility to assist the Owner in obtaining agreements from adjacent landowners where necessary for the construction of the Project (including but not limited to approvals necessary for operation of a tower crane if required).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7 <u>Occupied Building Issues</u>.** As part of the site agreement referenced in the preceding paragraph, and otherwise, the Contractor shall account for the circumstances surrounding any occupied areas of the Project or site, including access, signage, safety, deliveries, utility interruption, hours of construction and other similar matters that may affect the Work. The Contractor shall comply with all building codes and regulations as they may affect the Work, and the reasonable directions of any building managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.8 <u>Use Prior to Completion</u>.** The Contractor shall allow the Owner to take possession of and use any portion of the Project prior to Final Completion. Such possession and use, as well as any payment made by Owner, shall not evidence the completion or acceptability of any Work provided by the Contractor.

**<u>ARTICLE 6</u>**

**<u>PROJECT SCHEDULE AND SUPERVISION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 <u>Project Schedule</u>.** If not attached as an exhibit to the Agreement, the Contractor, promptly after being awarded the Contract, shall submit for the Owner's approval a Contractor's construction schedule for the Work in critical path format. Attached to this Agreement as an **Exhibit I** is a list of milestone dates, to be incorporated into the Project's critical path schedule, showing the relative times for performance of all significant tasks included in the Work by the Contractor and the Subcontractors, and generally providing for expeditious and practicable execution of the Work. Upon being provided by Contractor to Owner, the schedule, and any revisions thereto as approved by the Owner, shall be referred to herein as the "Project Schedule," and Contractor shall perform the Work pursuant to the approved Project Schedule. Contractor shall include in the Project Schedule an adequate number of days to compensate for customary adverse weather conditions based on the monthly averages for the ten (10) year period preceding the execution of this Agreement as reported by the National Oceanic & Atmosphere Administration (NOAA) for the Project location. No extensions of time will be granted because of days lost to adverse weather conditions except as permitted by Paragraphs 6.2 and 6.3. Contractor shall monitor the progress of the Work and promptly advise the owner of delays and provide the Owner and Architect with timely reports as to the current status of, and deviations from, the Project Schedule, the causes of any such deviations, and the corrective action that has been taken or will be taken to correct such deviations. Such reports shall be updated every forty-five (45) days at a minimum and submitted with the Contractor's Application for Payment. The Project Schedule and any revisions thereto are not Contract Documents, and any interim approvals of the Project Schedule shall not serve to modify any Completion Dates required by the Contract Documents, which may only be modified by a written Change Order signed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 <u>Extensions of Time</u>.** If the critical path activities of the Work are delayed at any time by an act or neglect of the Owner or Architect, or of an employee of either, or of a separate contractor employed by the Owner, or by changes ordered in the Work, as reflected in Change Orders approved by the Owner that provide for the Contract Time to be extended, or by economic industry-wide strikes, unavoidable casualties, armed conflict (with or without declaration of war) involving the United States of America or other causes beyond the Contractor's control, and which could not have been anticipated by it, then Contractor's sole remedy shall be an equitable extension to the Completion Dates pursuant to Change Order. In the event of delay to the critical path activities of the Work caused by the Owner, the Architect, or the employees or agents of either, the Contractor shall also be entitled to an equitable adjustment in the Contract Sum only for those additional field overhead costs actually incurred as a result of delay to the critical path activities of the Work, and no other damages or costs of any kind, including indirect (e.g., home office overhead costs), incidental, or consequential damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 <u>Adverse Weather Conditions</u>.** If adverse weather conditions are the basis for a claim for additional time, such claim shall be documented by data substantiating that weather conditions were abnormal for the time period, pursuant to the NOAA averages as set forth in Paragraph 6.1 above and could not have been reasonably anticipated and that weather conditions had an adverse effect on the critical path activities of the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4 <u>Supervision of Work</u>.** The Contractor shall supervise and direct the Work, using its best skill and attention and shall be responsible for the performance of all Subcontractors and suppliers. The Contractor shall be solely responsible for all construction means, methods, techniques, sequences and procedures and for coordinating all aspects of the Work, including security measures at the Project site with respect to the Work. The Contractor shall be responsible for the acts and omissions of its employees, Subcontractors, suppliers, their agents and employees, and other persons or entities performing any portion of the Work. The Contractor shall employ and furnish a qualified, full-time project manager and/or superintendent and necessary assistants to be on the Project site during progress of the Work. The project manager / superintendent shall be satisfactory to the Owner, and the Owner shall have the right to require the Contractor to dismiss from the Project any project manager or superintendent whose performance is not satisfactory to the Owner, and to replace them with a project manager or superintendent satisfactory to the Owner. Neither the Owner nor the Project Manager or Architect shall be responsible for the supervision, coordination or inspection of the Contractor's Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.6 <u>Coordination Among Contractors</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;**6.6.1** The Contractor agrees that the Owner has engaged FCL Builders Texas LLC to act as Owner's construction manager ("Owner's Construction Manager"). The Contractor acknowledges that, notwithstanding anything set forth to the contrary in Section 5.1, Owner's Construction Manager shall be authorized to represent the Owner in all matters regarding this Agreement and the Project other than making any changes to the Work that increase the Contract Sum or Contract Time. Contractor agrees to coordinate the performance of its Work with the Construction Manager. The Contractor shall make any revisions to the Project Schedule deemed necessary by the Construction Manager. Subject to this Article 6, the Project Schedule shall then constitute the schedules to be used by the Contractor until subsequently revised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6.2** Contractor agrees to coordinate its Work with that of the Owner, the Owner's Construction Manager, or other contractors which may be retained by the Owner in connection with the Project, so as to avoid interference or conflicts with the others' work and to not delay the Project or other work of the Owner. The Contractor shall participate in the preparation of coordinated drawings in areas of congestion, if requested by the Owner or Owner's Construction Manager. Should the Contractor cause damage to the work or property of another contractor, or should the Contractor's property or services be damaged, disrupted, delayed or interfered with by such other contractors, then the Contractor shall look solely to the responsible contractor for all damages thereby incurred. In no event shall the Contractor seek to recover from the Owner any costs, expenses or losses incurred by the Contractor as a result of any damage to the Work or property of the Contractor, or as a result of any delay, disruption or interference, caused or allegedly caused, by any separate contractor.

**<u>ARTICLE 7</u>**

**<u>CHANGES AND CLAIMS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1 <u>Change Orders</u>.** A Change Order is a written order to the Contractor signed by the Owner and accepted by the Contractor, issued after execution of the Agreement, authorizing a change in the Work or an adjustment in the Contract Sum or the Completion Dates specified in the Contract Documents. All such changes and/or adjustments shall only be made by written and executed Change Orders in the form attached as **Exhibit E**, and no alteration of, or addition to, that form shall be permitted, except as authorized by Owner. The Owner's Representative(s) is the only person authorized on behalf of the Owner to issue Change Orders. Contractor shall not be entitled to any reimbursement for additional costs incurred due to any alleged extra or changed work unless a Change Order, or a Construction Change Directive (in the event the Owner and Contractor disagree as to the appropriate amount of a proposed Change Order) in the form attached as **Exhibit F** shall first have been signed and issued by the Owner (or the Owner's Representative, subject to the limits of authority as set forth herein). If the Contractor proceeds with any extra or changed work without a signed Change Order or Construction Change Directive (even if verbal approval has been obtained), Contractor shall be deemed to have waived any claim based upon such extra or changed work. No course of conduct or dealings between the parties, nor express or implied acceptance of alterations or additions, and no claim that the Owner has been unjustly enriched by any alteration or addition to the Work not properly approved hereunder, shall be the basis of any claim for an increase in any amount due to the Contractor or for a change in the Completion Dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2 <u>Owner May Order Changes in the Work</u>.** The Owner, without invalidating the Agreement, may order changes in the Work within the general scope of the Agreement, consisting of additions, deletions, or other revisions, and the Contract Sum and/or Completion Dates shall be adjusted accordingly. All such changes in the Work shall be authorized by Change Order or Construction Change Directive. The Architect has no authority, over its individual signature, to authorize any additional or changed Work that would require an increase in the Contract Sum or an extension of the Completion Dates. Upon receipt of a Change Order or Construction Change Directive, the Contractor shall promptly proceed with the change, even if there are adjustments to the Contract Sum or Completion Dates that are disputed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3 <u>Adjustments in Price</u>.** With respect to any additions to the Work made by a Change Order, any applicable unit prices shall be applied for purposes of calculating adjustments to the Contract Sum, and those unit prices shall be deemed to include all Contractor mark-ups, including job site and home office overhead, profit, general conditions costs, and any other direct or indirect costs of the changed Work. In the event there is no unit price which corresponds to the change, then the parties shall attempt to mutually agree upon the value of the change. Absent such an agreement, the adjustment in the Contract Sum shall be limited to 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; **7.3.1** the net, direct cost of additional materials or equipment necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.2** the net additional sales or other taxes paid on additional materials or equipment, if properly documented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.3** the net cost of additional jobsite labor required by the change, but limited to the actual cost of such additional labor, plus social security, old age, workman's compensation and unemployment insurance and fringe benefits required by law or 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;**7.3.4** the actual rental paid on necessary equipment rented from an unaffiliated firm, but excluding hand tools;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.5** the net addition to any bond premium, insurance premium (as allowed by this Agreement), permit fee or similar tax related to the Work and caused by the change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3.6** reimbursement for any reasonable Subcontractor mark-up, to the extent that the change represents Work performed by the Subcontractor, provided no Subcontractor will be entitled to any mark-up, including overhead or profit, which exceeds ten percent (10%) of its net additional costs as defined herein with respect to Work performed by the Subcontractor, or five percent (5%) of its net additional costs as defined herein with respect to Work performed by lower tier subcontractors or suppliers; 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; **7.3.7** the Contractor's Fee shall be adjusted as provided in Paragraph 4.2.

When both additions and credits are involved in any one Change Order, the Contractor's Fee shall be figured on the basis of the net change, if any, in the Contract Sum. With respect to any changed Work which, according to the Contractor, should not be governed by unit prices, the Contractor shall notify the Owner in writing of its position prior to proceeding with such Work. In that event, the Contractor shall separately document and account for costs incurred by the Contractor in connection with the changed Work, and shall submit its cost summaries to the Owner on a weekly basis following its start of the changed Work. All costs incurred pursuant to a Change Order shall be subject to audit by the Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4 <u>Change Order Effect</u>**. Each Change Order constitutes a full and complete settlement for all costs (direct or indirect) and schedule extensions that are associated with the scope of the Work identified within a Change Order and shall constitute an accord and satisfaction of all effects of the change upon any and all aspects of the Work. Once a Change Order has been executed by the parties, Contractor expressly waives all rights to make a claim or to take any other action or proceeding for any other consequence associated with or related to such Change Order, whether the consequences result directly or indirectly from the Change Order. However, for avoidance of doubt, nothing in this paragraph shall preclude subsequent claims by the Owner for defective Work relating to items covered by any Change Order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5 <u>Concealed Conditions</u>.** Subject to the provisions of Paragraph 5.5, should concealed conditions be encountered in the performance of the Work below the surface of the ground which Contractor would be unable to ascertain upon a reasonable visual inspection of existing conditions, or should concealed or unknown conditions in an existing structure be at variance with the conditions indicated by the Contract Documents, or should unknown physical conditions below the surface of the ground or concealed or unknown conditions in an existing structure of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement, be encountered, the Completion Dates shall be equitably adjusted by Change Order, subject to the notice of claim and claim procedures contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.6 <u>Notice of Claims</u>.** If the Contractor wishes to make a claim for an increase in the Contract Sum, or for an extension of the Completion Dates, the Contractor must notify the Owner in writing of such claim not later than ten (10) days after the first occurrence of the event giving rise to the claim. Claims with backup documentation shall be submitted within thirty (30) days of the notice required above. Failure to give such notice as required herein shall constitute a waiver of the claim. The Contractor acknowledges and agrees that the Owner can only waive the requirements of this Paragraph in writing and that it cannot rely on any oral statement of the Owner to the contrary. For purposes of this Paragraph, notice of claims shall be provided to the Owner as required by the notice provision of this Agreement, and notice of claims provided by other means, such as by meeting minutes, shall not constitute sufficient notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.7 <u>Contract Performance</u>.** During the pendency of any dispute, claim or proceeding arising out of or related to the Work, the Contractor shall proceed diligently with performance of the Work. The Contractor's failure to diligently pursue and timely perform its Work as required herein shall constitute a material breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.8 <u>Subcontractor/Supplier Lien Claims</u>.** The Contractor shall indemnify, hold harmless (including attorney's fees and legal expenses) and defend the Owner and the Indemnitees from and against any assertion of lien claims by Subcontractors, Sub-subcontractors, material or equipment suppliers and against any assertion of security interests by suppliers of goods or materials. The Contractor shall bond off or otherwise discharge any lien filed against the Project or asserted against the Indemnitees within ten (10) days of written demand by the Owner, whether or not the Contractor believes the claim is valid. If allowed or required by the state where the Project is located, the Contractor shall file (and post, as applicable) an affidavit of commencement, or similar notice, in accordance with applicable statutes, including, but not limited to, Texas Property Code § 53.124, to protect the Project and Owner against liens. The Contractor shall comply with all notice requirements in connection therewith, promptly notify the Owner of any notices received from subcontractors or suppliers with respect thereto, and provide copies of such notice to the Owner. The Contractor shall, as part of each monthly Application for Payment, furnish the Owner with a copy of all notices received from Subcontractors or Sub-subcontractors in response to said affidavit of commencement or similar notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.9 <u>Mediation</u>**. The parties shall endeavor to resolve claims, disputes, or other matters in controversy arising out of or related to the Agreement by mediation which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Mediation Procedures in effect on the date of the Agreement. A request for mediation shall be made in writing, delivered to the other party to the Agreement, and filed with the person or entity administering the mediation. The request may be made concurrently with the filing of binding dispute resolution proceedings but, in such event, mediation shall proceed in advance of binding dispute resolution proceedings, which shall be stayed pending mediation for a period of sixty (60) days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. If an arbitration proceeding is stayed pursuant to this Section 7.9, the parties may nonetheless proceed to the selection of the arbitrator(s) and agree upon a schedule for later proceedings. The parties shall share the mediator's fee and any filing fees equally. The mediation shall be held in the place Dallas County, Texas, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.10 Arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.10.1** Any claim subject to, but not resolved by, mediation shall be subject to arbitration which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Arbitration Rules in effect on the date of the Agreement. A demand for arbitration shall be made in writing, delivered to the other party to this Agreement, and filed with the person or entity administering the arbitration. The party filing a notice of demand for arbitration must assert in the demand all claims then known to that party on which arbitration is permitted to be demanded. Each party hereby agrees that jurisdiction and venue for any dispute resolution procedure hereunder, whether judicial or arbitration, shall be in Dallas County, Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.10.2** A demand for arbitration shall be made no earlier than concurrently with the filing of a request for mediation, but in no event shall it be made after the date when the institution of legal or equitable proceedings based on the claim would be barred by the applicable statute of limitations or statute of repose. For statute of limitations or statute of repose purposes, receipt of a written demand for arbitration by the person or entity administering the arbitration shall constitute the institution of legal or equitable proceedings based on the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.10.3** The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction. The foregoing agreement to arbitrate, and other agreements to arbitrate with an additional person or entity duly consented to by parties to the Agreement, shall be specifically enforceable under applicable law in any court having jurisdiction thereof.

**<u>ARTICLE 8</u>**

**<u>SUBCONTRACTORS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1 <u>Subcontractor/Supplier Identification and Substitutions</u>.** Prior to contracting with Subcontractors and suppliers, the Contractor shall furnish to Owner a complete list of all proposed Subcontractors and major suppliers, who shall not be permitted to perform any part of the Contractor's Work without the Owner's written consent, which shall not be unreasonably withheld. The Work provided by a Subcontractor or supplier may not be assigned, encumbered or further subcontracted without the Owner's prior written consent. Contractor shall not subcontract any of the Work to a Contractor-affiliated entity without the Owner's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2 <u>Subcontractor/Supplier Agreement</u>.** All Subcontractor and supply contracts shall be in writing, subject to the Owner's reasonable approval, furnished promptly to the Owner upon request, and require the Subcontractor's Work to be performed in accordance with the requirements of the Contract Documents. The Owner's approval of any proposed Subcontractor or supplier creates no representation that they are competent or able to perform the scope of Work, nor does it create contractual privity between the Owner and such Subcontractor or supplier. The Contractor agrees that it is fully responsible for the acts and omissions of its Subcontractors, Sub-subcontractors, suppliers and employees and of persons either directly or indirectly employed by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3 <u>Contingent Assignment Of Subcontracts</u>.** Each subcontract and supply agreement for a portion of the Work hereunder are assigned by the Contractor to the Owner, provided such assignment shall be effective if, and only if, the Agreement is terminated for cause pursuant to Article 10, and then only as to those agreements the Owner accepts by notifying the Subcontractor or supplier in writing. The Owner's election to accept such an assignment shall not relieve the Contractor of any liability to the Subcontractor or supplier incurred before the assignment date, and the Owner shall not be responsible for any such pre-assignment liability.

**<u>ARTICLE 9</u>**

**<u>QUALITY AND PERFORMANCE OF WORK</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1 <u>Warranty</u>.** Contractor warrants to Owner that all materials and equipment furnished shall be new unless otherwise specified in the Contract Documents, and that all Work, materials and equipment furnished under the Contract Documents shall be of good quality, free from faults and defects and in conformance with the Contract Documents. All Work, materials and equipment not conforming to these standards will be considered defective and shall be remedied by the Contractor, at its sole expense. The Contractor further warrants that upon submittal of an Application for Payment, all Work performed during any prior payment period shall have been paid for, or otherwise satisfied by the Contractor, and the Work is therefore free and clear of liens, claims, security interests or encumbrances in favor of the Contractor or any third-party claiming by or through the Contractor. This Paragraph shall not be deemed to limit any warranties otherwise required by the Agreement or available to the Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2 <u>Correction of Work</u>.** In addition to (and without limiting) the warranties in the preceding paragraph, or any other warranties under this Agreement or otherwise available to the Owner, the Contractor shall promptly make good, without cost to Owner, any and all defects that appear within a period of one (1) year from the date of Substantial Completion. If the Contractor fails to correct such Work, the Owner may correct the Work, and the Contractor shall be responsible for any costs incurred by the Owner, including all reasonable attorneys' fees. This warranty obligation is cumulative and shall not serve to exclude or limit other remedies of the Owner under the Agreement or Applicable Law or change applicable statutes of limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3 <u>Owner's Right to Carry Out the Work</u>.** If the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents (including failing to correct nonconforming work) and fails within seven (7) days after receipt of written notice from the Owner to commence and continue correction of such default or neglect with diligence and promptness, the Owner may, without prejudice to any other remedy the Owner may have, make good such deficiencies, including supplementing the forces of the Contractor if the Contractor fails to perform in accordance with the Project Schedule. In such case, an appropriate Change Order shall be issued deducting from the payments then or thereafter due the Contractor the cost of correcting such deficiencies, including architectural, and consulting and legal fees required by the circumstances. If the payments then or thereafter due the Contractor are not sufficient to cover such amount, the Contractor shall pay the difference to the Owner. The rights of the Owner under this Article shall not give rise to any duty on the part of the Owner to exercise such rights for the benefit of the Contractor or any other person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4 <u>Rejected Work</u>.** The Contractor shall promptly correct Work rejected by the Owner, the Architect, or any governmental authority, or that does not conform to the requirements of the Contract Documents, whether observed before or after Substantial Completion and whether or not fabricated, installed or completed. The Contractor shall bear costs of correcting such rejected Work, including additional testing and inspections and compensation for the Architect's services and expenses made necessary thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5 <u>Contract Documents</u>.** Prior to commencing the Work and throughout the contract performance, the Contractor shall carefully study and compare the Drawings, Specifications and Contract Documents, and shall take field measurements and verify field conditions, and shall carefully compare such field measurements and conditions and other information known to the Contractor with the Contract Documents before commencing activities. Errors, inconsistencies or omissions discovered shall be reported to the Owner and the Architect at once; and the Contractor's failure to verify field measurements and conditions shall not serve as basis for an adjustment in the Contract Sum. The Contract Documents are complementary, and what is called for by one shall be as binding as if called for by all. The intention of the documents is to include all labor, materials, equipment and other services necessary for the proper execution of the Work, and either required by or properly inferable from the Contract Documents. In the event of any conflict or ambiguity in the Contract Documents, the interpretation yielding the highest degree of care or performance, or the greatest quantity, shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6 <u>Shop Drawings And Samples</u>.** The Contractor shall review, approve and submit shop drawings, samples and product data as may be required by the Contract Documents or the Owner's Representative during the course of the construction. These submittals shall be delivered to the Owner in a timely manner, so as to allow the Owner reasonable opportunity to review and approve or reject any such submittal, and so as not to impact the Project Schedule or the completion of the Work. Any Work performed, or cost incurred, by the Contractor prior to the Owner's approval of required shop drawings, product data, samples or other submittals shall be at the Contractor's sole risk. The Contractor shall not be relieved of responsibility for deviations from the requirements of the Contract Documents by the Owner's approval of such submittals, unless the Contractor has specifically informed the Owner in writing of such a deviation from the Contract requirements at the time of the submittal. The Owner may designate the Project Architect, if any, to fulfill some or all of its responsibilities in connection with shop drawings, samples and product data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7 <u>Materials and Equipment</u>.** All manufactured articles, materials and equipment shall be applied, installed, connected, erected, used, cleaned and conditioned in accordance with the manufacturer's printed directions. Copies of any such manufacturer's directions, and copies of all manufacturers' warranties, shall be submitted to the Owner prior to the application for final payment. Contractor shall not hold itself out as the agent for or representative of Owner in the purchase of any required equipment or materials. If the manufacturer's directions differ from the requirements of the Contract Documents, the Contractor shall notify the Owner in writing. All Subcontractor and Sub-subcontractor warranties and guaranties shall be issued in the name of the Owner and shall be assignable to the Owner and its tenant (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.8 <u>Owner Supplied Materials</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;**9.8.1** Owner is responsible for the procurement of the equipment specifically designated on **Exhibit K** ("OFCI Equipment"). Other than the OFCI Equipment, Contractor shall provide all other equipment required for the Project pursuant to the Contract Documents. Owner shall cause the OFCI Equipment to be delivered to Contractor at the Project site within the times specified in the approved Project Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8.2** Owner is responsible for the payment of costs, and the risk of loss, for the OFCI Equipment until the OFCI Equipment is unloaded at the Project site by Contractor, at which point Contractor has care, custody and control of the OFCI Equipment. Owner's responsibilities for payment of costs prior to transfer or risk of loss includes expediting, transportation logistics, storage, maintenance, unpacking and unloading at the Project site, unless otherwise stated in **Exhibit K**. Upon transfer of care, custody, and control of the OFCI Equipment to Contractor as provided in the foregoing sentence, Contractor shall bear the risk of loss and damage for such OFCI Equipment until Substantial Completion of the Work, including maintenance and care for OFCI Equipment in accordance with the manufacturers' and Owner's recommendations and procedures provided to Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8.3** Contractor is responsible for the interface and tie in of the Work with OFCI Equipment, including any necessary documentation. Installation of the OFCI Equipment shall comply with manufacturers' specifications and requirements for the OFCI Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.9 <u>Debris Removal And Clean-Up</u>.** The Contractor at all times shall keep the premises free from accumulation of waste materials or rubbish caused by its operation. At the completion of the Work, the Contractor shall remove all its waste materials and rubbish from and about the Project. The Contractor shall maintain streets, sidewalks and temporary means of access or passage around the Project site in a clean and safe condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.10 <u>Protection Of Persons And Property</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;**9.10.1** The Contractor shall take all reasonable precautions for the safety of and shall provide all reasonable protection to prevent damage, injury or loss to: (i) employees and all other persons on the Project site; (ii) work materials, furniture, fixtures and equipment to be incorporated therein or to be removed therefrom; and (iii) other property at the site or adjacent thereto, not designated for removal, relocation or replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.2** The Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs for the Work in accordance with the provisions of OSHA and other relevant local, state and federal codes and regulations, and shall comply with all Applicable Law ordinances, rules, regulations and lawful orders of any public authority having jurisdiction for the safety and security of persons or property. Contractor shall erect and maintain, as required by existing conditions and progress of the Work, all reasonable safeguards for safety and protection, particularly for any occupied areas of the building or work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.3** Contractor shall prepare and comply with a COVID-19 exposure, prevention, preparedness and logistics plan that complies with Applicable Law and the latest recommendations and guidance from the CDC and shall update the plan as information becomes available from OSHA, CDC and other public officials. Contractor shall require Subcontractors and Sub-subcontractors to comply with the plan, and the Contractor shall bear all costs for Contractor, Subcontractor and Sub-subcontractor compliance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10.4** Until Substantial Completion of the Work, and during the performance of any corrective Work during the one-year correction period, the Contractor shall have full and complete responsibility for the care of and shall bear all risks of loss from injury or damage to, the Work, OFCI Equipment or other items to be utilized in connection with, or incorporated into, the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.11 <u>Compliance With Laws</u>.** The Contractor is responsible for complying with Applicable Law, and Contractor shall indemnify the Indemnitees against any citation, fine or other loss or damages due to the failure of Contractor or its employees, Subcontractors or Sub-subcontractors to comply with same. The Contractor shall also, at its expense, procure and maintain all licenses which may be required at any time in connection with the performance of the Work, or in connection with procurement, transport, storage or use of related equipment, materials or supplies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12 <u>Environmental Hazards</u>.** If the Contractor encounters materials reasonably believed to be asbestos, lead paint or polychlorinated biphenyl (PCB), or any material deemed hazardous by state or federal regulation, and which has not been rendered harmless, the Contractor shall immediately stop work in the area affected and report the condition to the Owner in writing. The Contractor shall take reasonable precautions to prevent or contain the movement, spread or disturbance of such materials and to protect persons and property. The Work in the affected area shall be resumed immediately following the occurrence of any one of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12.1** The Owner causes remedial work to be performed which results in rendering harmless asbestos, lead paint, PCB's, or other hazardous material; 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;**9.12.2** The Owner and Contractor, by written agreement, decide to resume performance of the Work; 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;**9.12.3** The Work may safely and lawfully proceed, as determined by an appropriate governmental authority or as evidenced by a written report from a qualified environmental engineer.

The term "rendered harmless" shall mean that levels of asbestos, lead paint or PCB's are less than any applicable exposure standard forth in OSHA Regulations. The Contractor shall comply with the Federal Hazard Communications Standards made applicable to the construction industry, as well as other applicable environmental laws. The Owner shall have no responsibility for any substance or material that is brought to the Project site by the Contractor, any Subcontractor or Sub-subcontractor. Owner shall be responsible for the costs of investigating and remedying any environmental hazard not created or by, or for which remediation is required due to the negligent acts or omission or, Contractor or anyone for whom the Contractor is responsible. The Contractor agrees to indemnify the Indemnitees from claims, damages, losses, costs, and liabilities arising out of or resulting from the presence, uncovering or release of suspected or confirmed hazardous material to the extent caused by the negligence of, or the failure to comply with Contract Documents by, the Contractor or by anyone for whom the Contractor is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.13 <u>As-Built Drawings</u>.** At the time of Substantial Completion, the Contractor shall furnish to the Owner redlined as-built drawings showing the field changes affecting the general construction, mechanical, electrical, plumbing and all other work, and indicating the Work as actually installed. These drawings shall consist of carefully drawn markings on a set of reproducible prints of the Architect's drawings obtained and paid for by Contractor. The Contractor shall maintain at the Project site one (1) set of Architect's drawings and indicate thereon each field change as it occurs.

**<u>ARTICLE 10</u>**

**<u>TERMINATION AND SUSPENSION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1 <u>Termination for Cause by Contractor</u>.** In the event that the Owner shall fail to make any undisputed payment to the Contractor when due, Contractor may, upon ten (10) days prior written notice and after affording the Owner the right to cure any such default, terminate this Agreement, and recover from the Owner compensation for all Work satisfactorily completed up to and including the date of termination, based on the Contract Sum (as adjusted), in complete satisfaction of the Owner's obligations and any liability to the Contractor under this Agreement. Such payment shall include reasonable overhead and fee earned through the date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2 <u>Termination for Cause by Owner</u>.** The Owner may terminate this Agreement if the Contractor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.1** refuses or fails to supply enough properly skilled workers, on-site supervision, or proper materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.2** fails to make payment to Subcontractors or suppliers as required by the Agreement or by respective subcontract and supply contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2.3** disregards laws, ordinances, rules, regulations or orders of a public authority having 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;**10.2.4** fails to commence the Work promptly, adhere to the Project Schedule, or to proceed continuously with the completion of its Work, or cannot provide assurances satisfactory to the Owner of its ability to complete the Work timely and in compliance with the Contract 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;**10.2.5** breaches any warranty or representation made by the Contractor in connection with the solicitation of, or performance 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;**10.2.6** the Contractor assigns or sublets this Agreement, or any portion thereof or the proceeds therefrom, without the Owner'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;**10.2.7** the Contractor fails to satisfy or maintain any of its obligations with respect to insurance under this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **10.2.8** otherwise fails to perform any of its obligations under the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.3 <u>Termination Procedure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3.1** When any of the above reasons in Paragraph 10.2 exist, the Owner may, without prejudice to any other rights or remedies of the Owner, upon seven (7) days written notice to Contractor, terminate this Agreement. In that event, the Owner may: (a) take possession of the site and of all materials, furniture, fixtures, equipment, tools, and machinery thereon owned by the Contractor; (b) use the same, without liability, in the completion of the Work to the full extent they could be used by the Contractor; (c) incorporate in the Work all materials and equipment stored at the site or paid for by the Owner and stored elsewhere; (d) accept assignment of subcontractors as provided herein; and (e) finish the Work by whatever method the Owner may deem expedient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3.2** When the Owner terminates the Agreement for cause as set forth above, the Contractor shall not be entitled to receive further payment until the Work is finished by Owner, and all damages suffered, or costs incurred, by the Owner have been deducted from the amounts otherwise due the Contractor. In the event of such termination, the Contractor shall immediately turn all Project documents over to the Owner. If the unpaid balance of the Contract Sum is less than the costs of finishing the Work, including compensation for the Architect's services and expenses made necessary thereby, and other damages due to the Owner, the Contractor shall immediately pay Owner the difference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4 <u>Termination For Convenience</u>.** The Owner may terminate this Agreement for its convenience by written notice to the Contractor. In the event of a termination for convenience, the Contractor shall take immediate steps to terminate the Work as quickly and effectively as possible and shall terminate all commitments to third parties, unless otherwise instructed by the Owner. Upon termination, Contractor shall be entitled to be paid the cost of all Work properly performed by Contractor to the date of termination plus the Contractor's Fee earned on account of such Work (which shall be based on a percentage completion basis, according to the approved Schedule of Values), and other reasonable costs actually incurred for terminating activities at the site (e.g. demobilization costs) or costs pertaining to goods, materials or equipment that cannot be mitigated or avoided as a result of the termination (e.g., restocking fees, or supplier penalties or fees for goods or materials that cannot be returned). The Owner shall have no further liability to the Contractor, including consequential damages, lost profits or other damages arising out of the termination. In the event of such termination, the Contractor shall immediately turn all Project documents over to the Owner as a condition to payment under this paragraph. If this Agreement is terminated for cause, and it is subsequently determined that the Owner did not have grounds to terminate for cause, then such termination shall be treated as a termination for convenience under the terms of this Paragraph to the extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5 <u>Owner's Right to Suspend Work</u>.** The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work in whole or in part for such period of time as the Owner may determine. An adjustment shall be made for increases in the cost of performance of the Contract, including the Contractor's Fee on the increased cost of performance (per the Change Order provisions of this Agreement), caused by suspension, delay or interruption. No adjustment shall be made to the extent that: (i) performance is, was or would have been so suspended, delayed or interrupted by another cause for which the Contractor is responsible or over which the Owner had no control; or (ii) an equitable adjustment is made or denied under another provision of this Agreement.

**<u>ARTICLE 11</u>**

**<u>INSURANCE, BONDS, AND INDEMNITY</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **11.1 <u>Insurance</u>.** The Contractor shall provide the insurance required by **Exhibit G**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2 <u>Bonds</u>**. If requested by Owner, Contractor shall provide Owner Performance and Payment Bonds in the form required by Owner, which shall be secured from such sureties, and shall be on such forms, as the Owner may approve prior to commencement of the Work. If the Owner is obtaining financing for this Project, and if Contractor bonds are required, the Contractor acknowledges that issuance of the bonds required by this Agreement is a condition precedent to the Owner obtaining financing and the Contractor's failure to obtain such bonds is a material breach of this Agreement. The Owner may require that a third-party be named as an additional obligee, along with the Owner, on the bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.3 <u>Indemnity</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;**11.3.1** For all claims other than Contractor employee injury or death claims (as more fully set forth below), to the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless the Indemnitees against any suits, claims, damages, losses, liabilities, judgments, costs, or expenses (including reasonable attorneys' fees and litigation expenses) ("Loss") caused by the Contractor's failure to perform its obligations in accordance with this Agreement. In addition, the Contractor shall, to the fullest extent permitted by law, defend, indemnify and hold harmless the Indemnitees against any and all Loss to the extent caused by the negligent acts or omissions of Contractor, its employees, agents, Subcontractors, Sub-subcontractors, or suppliers, in the Contractor's performance of the Work under this Agreement, provided that such Loss results from bodily injury, sickness, disease or death (excluding all claims related to Contractor employee injury or death) or damage to property, including loss of use resulting therefrom. Notwithstanding anything to the contrary in this paragraph, in no event shall the Contractor be responsible to indemnify, defend, and hold harmless the Indemnitees for Loss to the extent such Loss is caused by or results from the negligence or fault, the breach or violation of a statute, ordinance, governmental regulation, standard, or rule, or the breach of contract of an Indemnitee, its agent or employee, or any third party under the control or supervision of an Indemnitee, other than Contractor or its agent, employee, or subcontractor of any tier. This indemnification obligation shall not otherwise be limited by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor under insurance, workers' or workman's compensation acts, disability benefit acts or such other employee benefit acts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.3.2** For all claims related to Contractor employee injury or death, to the fullest extent permitted by law, Contractor shall indemnify, defend, and hold harmless the Indemnitees and shall assume entire responsibility and liability (other than as a result of the Owner's sole or gross negligence) for any Loss based on or arising out of the personal injury, including the death, of any employee of the Contractor, Subcontractors, or any Sub-subcontractor, or of any other entity for whose acts they may be liable, which occurred or was alleged to have occurred on the project site or in connection with the performance of the Work under this Agreement. This indemnification obligation shall not be limited to damages, compensation, or benefits payable under insurance policies, workers compensation acts, disability benefits acts, or other employees benefit acts. This indemnification obligation shall not otherwise be limited by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor under insurance, workers' or workman's compensation acts, disability benefit acts or such other employee benefit acts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.3.3** This indemnification obligation shall survive the expiration or earlier termination of this Agreement.

**<u>ARTICLE 12</u>**

**<u>ADDITIONAL TERMS AND CONDITIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1 <u>Relationship Of Parties</u>.** This Agreement is not intended to, nor does it establish or create, any association, agency, employment, partnership or joint venture between the parties. Contractor is an independent contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2 <u>Consequential Damages Waiver</u>**. neither Owner nor Contractor shall be liable under this Agreement or under any cause of action related to the subject matter of this Agreement, whether in contract, tort (including negligence), strict liability, products liability, contribution, or any other cause of action for punitive, special, indirect, incidental or consequential losses or damages, including loss of profits, use, opportunity, revenues, financing, bonding capacity, or business interruptions, loss of goodwill, loss of tax credits, and cost of capital or damages or losses for principal office expenses including compensation of personnel stationed there; provided, however, Contractor's liability shall not be limited or excluded by: (I) amounts encompassed within Liquidated Damages; (ii) contractor's indemnification obligations herein; (iii) Contractor's fraud, gross negligence or willful misconduct, or (iv) amounts covered by insurance proceeds from policies of insurance required to be carried by contractor under the Contract Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.3** For purposes of Section 12.2, the term "Contractor" shall include Contractor, its Affiliates, and the employees, officers, directors and shareholders of each of Contractor and its Affiliates. the term "Owner" shall include Owner, its Affiliates, and the employees, officers, directors and shareholders of each of Owner and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.4 <u>Anti-Assignment Clause</u>.** The Contractor shall not assign or sublet this Agreement, or any portion thereof or the proceeds therefrom, without the Owner's prior written consent. Any such assignment without the Owner's prior written consent is void. The Owner may assign this Agreement to an Affiliate or a lender without the Contractor's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.5 <u>Governing Law</u>.** This Agreement shall be governed by and construed in accordance with the laws of the state where the Project is located, excluding its conflicts of law rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.6 <u>Headings</u>.** The headings and titles of the Articles and Paragraphs hereof are inserted for convenience only and shall not affect the construction or interpretation of any provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.7 <u>Severability</u>.** Should any one or more provisions of this Agreement be found to be invalid, unenforceable or illegal, the remaining provisions shall remain unimpaired, and the invalid, illegal and unenforceable provision shall be replaced by a mutually acceptable provision which comes closest to the intention of the parties underlying the invalid, illegal or unenforceable provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.8 <u>Notices</u>.** All notices required to be sent hereunder shall be sent by U.S. Mail, overnight courier, by hand delivery or by email (if an email is indicated below) to the following persons and addresses. With regard to notices of termination, suspension and claims requesting an increase in cost or time, notices may be sent via email (if an email is indicated below) provided that a copy of such notice is also sent via overnight mail by the following business day in order for such notice to be valid.

---

| | |
|:---|:---|
| To Owner: | Canadian Solar US Module Manufacturing Corporation |
|  | 3000 Skyline Dr. Mesquite, TX 75149 |
|  | Attn: Rusty Schmidt |
| With a copy to: | General Counsel |
| To Contractor: | BestWater USA, Inc. d/b/a BW Industrial Construction |
|  | 2825 Wilcrest Dr, Houston, TX 77042 |
|  | Attn: Bob Sliva |
|  | Attn: Gary Macha |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.9 <u>Entire Agreement</u>.** The Contract Documents set forth the rights and obligations of the parties and represents the entire and integrated agreement between the parties hereto and supersedes all prior negotiations, representations, or agreements, either written or oral, including, but not limited to, the LAP. This Agreement may be amended or modified only in writing signed by both the Owner and the Contractor and any amendments or modifications which would result in an increase to the Contract Sum or the Completion Dates shall be by Change Order as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.10 <u>Ownership and Use of Documents</u>.** All Drawings, Specifications and copies thereof furnished by the Architect are and shall remain the property of the Owner. They are to be used only with respect to this Project and are not to be used on any other project and they are not to be used by the Contractor or any Subcontractor, Sub-Subcontractor or material or equipment supplier on other projects or for additions to this Project outside the scope of the Work without the express written consent of the Owner. The Contractor, Subcontractors, Sub-subcontractors and material or equipment suppliers are granted a limited license to use and reproduce applicable portions of the Drawings, Specifications and other documents prepared by the Architect appropriate to and for use in the execution of their Work under the Contract Documents. Submittal or distribution to meet official regulatory requirements or for other purposes in connection with this Project is not to be construed as publication in derogation of the Owner's reserved rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.11 <u>Owner Liability</u>**. The liability of the Owner hereunder shall be limited to the assets of Owner, and no member, manager, partner, director, officer, agent, servant, employee, representative or Affiliate of Owner or any member or manager of Owner shall have any personal liability for the liabilities and obligations of Owner under this Agreement. Similarly, owners and employees of Contractor shall have no personal liability to Owner under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.12 <u>Prior Services</u>**. All work and services performed by Contractor before this Agreement is executed that are within the scope of Work hereunder are governed by the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12.15 <u>Confidentiality 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;**12.15.1** If the Contractor or Owner receives information of a "confidential" or "business proprietary" nature ("Confidential Information"), the receiving party shall keep such information strictly confidential and shall not disclose it to any other person except as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.15.2** A party receiving Confidential Information may disclose the Confidential Information as required by law or court order, including a subpoena or other form of compulsory legal process issued by a court or governmental entity. A party receiving Confidential Information may also disclose the Confidential Information to its employees, consultants or contractors in order to perform services or work solely and exclusively for the Project, provided those employees, consultants and contractors are subject to the restrictions on the disclosure and use of Confidential Information as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.15.3** The Owner and the Contractor expressly agree that any and all cost, schedule, design, construction, and other information relating to the Work and the Project which exists or is developed between the Owner and the Contractor, and any Subcontractor, including, without limitation, the Contract Documents, the Project Schedule, and related data is Confidential Information of Owner, and shall be treated by the Contractor, all of its Subcontractors, and anyone having contracts with any of them as proprietary data and the "trade secret" of the Owner, and shall not be divulged to any other party. The Contractor shall cause all agreements with its Subcontractors to contain an express provision similar hereto, and the Contractor shall institute all necessary or appropriate safeguards among its employees, agents, and officers, and those of its Subcontractors, to prevent any unauthorized disclosure of any of the Confidential Information. Acknowledging that disclosure or misuse of any of the Confidential Information shall cause significant, immediate, and irreparable harm and damage to the Owner, the Contractor expressly agrees that the Owner shall, in addition to any other remedy at law or in equity, be entitled to seek and receive injunctive and other equitable relief with respect to the Contractor, any of its Subcontractors, or anyone having contracts with any of them regarding such unauthorized disclosure and to secure specific performance of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.15.4** This Section 12.15 shall survive the completion or termination of this Agreement.

**IN WITNESS WHEREOF,** the parties have executed this Agreement as of the date first stated above.

---

| | | | |
|:---|:---|:---|:---|
| **OWNER:** | **OWNER:** | **CONTRACTOR:** | **CONTRACTOR:** |
| ![](ea025237807_ex10-9img1.jpg) | ![](ea025237807_ex10-9img1.jpg) |  |  |
| By: |  | By: |  |
| Name: |  | Name: |  |
| Title: | VP & GM, CSI USMM | Title: | COO |

---

**Exhibit A**

**<u>Schedule of Contract Documents</u>**

[See Attached]

Exhibit A – list of contract documents

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Bidder Receipt List** | &nbsp;&nbsp;**9/24 Update Notes** |
| &nbsp;&nbsp;Exhibit A - Bill of Quantities | &nbsp;&nbsp;Additional quantities and updates |
| &nbsp;&nbsp;Exhibit A-1 - Owner-procured equipment and materials | &nbsp;&nbsp;Update notes (in red) |
| &nbsp;&nbsp;Exhibit B - Canadian Solar-Outline Specifications | &nbsp;&nbsp;Update notes (in red) |
| &nbsp;&nbsp;Exhibit C - BMS/BMS | &nbsp;&nbsp;No changes |
| &nbsp;&nbsp;Exhibit D - LINE_1-6_Utility_Matrix_Cut_sheet_09222025 | &nbsp;&nbsp;No changes |
| &nbsp;&nbsp;Exhibit E - Drawing_Log_90% | &nbsp;&nbsp;This Drawing_Log_90% version is based on the JFE<br> version listing |
| &nbsp;&nbsp;Exhibit F - JFE_L5,6 Civil Engineering + MEP Bidding Drawings Package_09242025 | &nbsp;&nbsp;The main updates include the addition of guardrails, the relocation of the existing and new transformers, and clarification of the end materials for the rooftop water supply piping. |
| &nbsp;&nbsp;Exhibit G - IMG_L5,6 Civil Engineering + MEP Bidding Drawings Package_09242025 | &nbsp;&nbsp;Newly issued U.S. local conversion company drawings sent to bidders |
| &nbsp;&nbsp;Exhibit H - Ground area line marking (purple highlighted area) | &nbsp;&nbsp;No changes |
| &nbsp;&nbsp;Exhibit I - The clarification document version used by the Owner (example) shall serve as a contract execution copy. | &nbsp;&nbsp;Additional item |
| &nbsp;&nbsp;Exhibit J - Insulation Procurement RFP Requirements | &nbsp;&nbsp;Additional item |

---

BIM 360: <u>https://acc.autodesk.com/docs/files/projects/19cd47c9-5c4a-4383-a0f5- 762374d2cc37?folderUrn=urn%3Aadsk.wipprod%3Afs.folder%3Aco._E5laV3oRg6jNBhfPW 3_-wCviewModel=detailCmoduleId=folders</u>

![](ea025237807_ex10-9img2.jpg)

![](ea025237807_ex10-9img3.jpg)

**Exhibit B**

**<u>Not Used, Reserved</u>**

**Exhibit C**

**<u>Interim Lien Waiver and Affidavit</u>**

CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

Project<u> </u>

Job No.<u> </u>

On receipt by the signer of this document of a check from<u> </u> (maker of check) in the sum of $<u> </u> payable to<u> </u> (payee or payees of check) and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the property of<u> </u> (owner) located at<u> </u> (location) to the following extent:<u> </u> (job description).

This release covers a progress payment for all labor, services, equipment, or materials furnished to the property or to<u> </u> (person with whom signer contracted) as indicated in the attached statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished.

Before any recipient of this document relies on this document, the recipient should verify evidence of payment to the signer.

The signer warrants that the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project in regard to the attached statement(s) or progress payment request(s).

Date<u> </u>

---

| | |
|:---|:---|
|  | FIRM OR COMPANY: |
|  | By: |
| Sworn to and subscribed | Print Name: |
| before me this<u> </u>day of |  |
| <u> </u>, 20<u> </u>. | Its: |

---

---

| |
|:---|
| Notary Public |
| (NOTARY SEAL) |
| My Commission Expires: |

---

**NOTICE:**

**This document waives rights unconditionally and states that you have been paid for giving up those rights. It is prohibited for a person to require you to sign this document if you have not been paid the payment amount set forth below. If you have not been paid, use a conditional release form.**

UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

Project<u> </u>

Job No.<u> </u>

The signer of this document has been paid and has received a progress payment in the sum of $<u> </u> for all labor, services, equipment, or materials furnished to the property or to<u> </u> (person with whom signer contracted) on the property of<u> </u> (owner) located at<u> </u> (location) to the following extent:<u> </u> (job description).

The signer therefore waives and releases any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the above referenced project to the following extent:

This release covers a progress payment for all labor, services, equipment, or materials furnished to the property or to<u> </u> (person with whom signer contracted) as indicated in the attached statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished.

The signer warrants that the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project in regard to the attached statement(s) or progress payment request(s).

Date<u> </u>

---

| | |
|:---|:---|
| | (Company name) |
| By | (Signature) |
| | (Title) |

---

STATE OF TEXAS § <br> § <br> COUNTY OF<u> </u> §

This instrument was subscribed to, sworn to, and acknowledged before me, on<u> </u>, 20<u> </u>, by<u> </u>, the<u> </u> of<u> </u>, a<u> </u>, on behalf of said.

Notary Public in and for the State of Texas <br> My Commission Expires:<u> </u>

[SEAL]

**INTERIM PAYMENT AFFIDAVIT**

TO:   (*Owner*) PROJECT:  

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The undersigned acknowledges and represents that all persons or entities that have provided labor, material, services or equipment for or through the undersigned for use or incorporation into the Project have been paid and satisfied in full for the periods covered by previous payments to the undersigned pursuant to their respective agreements, that previous payments to the undersigned have been properly applied to pay all outstanding invoices relating to the Project pursuant to their respective agreements, and that the undersigned is not aware of any outstanding claims of any character which could give rise to future claims against the Owner, the Contractor (if this affidavit is signed by a subcontractor or supplier) or the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) This Affidavit constitutes a representation by the undersigned that the payment of $<u> </u>, once received, constitutes full and complete payment for all work performed, and all costs or expenses incurred (including, but not limited to, costs for supervision, general conditions costs, home office overhead, interest on capital and profit) relative to the work or improvements at the Project or Property through the date of this Affidavit, except for the payment of retainage and any pending change orders or claims pursuant to this Agreement. The undersigned hereby specifically waives and releases any claim for damages due to delay, hindrance, interference, acceleration, inefficiencies or extra work, or any other claim of any kind it may have against the Owner and its lender (if any), any tenant of the Owner, the Owner's project and/or development manager (if any), the Contractor (if signed by a subcontractor), and any other person or entity with a legal or equitable interest in the Project or Property, as of the date of this Affidavit, except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The amount of money set forth as due and owing in the immediately preceding Interim Waiver and Release Upon Payment dated<u> </u>, 20<u> </u>, has been received, and is deemed paid in full, and execution of this Affidavit shall constitute the undersigned's Acknowledgment of Payment in Full as to the that Interim Waiver and Release Upon Payment.

GIVEN UNDER HAND AND SEAL THIS<u> </u> DAY OF<u> </u>, 20<u> </u> .

---

| | | |
|:---|:---|:---|
| Sworn to and subscribed | FIRM OR COMPANY: | FIRM OR COMPANY: |
| before me this<u> </u>day of |  |  |
| <u> </u>, 20<u> </u>. |  |  |
| Notary Public | By: |  |
| (NOTARY SEAL) | Print Name: |  |
| My Commission Expires: | Its: |  |
| <u> </u> |  | (and duly authorized agent of company) |

---

**Exhibit D**

**<u>Final Lien Waiver and Affidavit</u>**

CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

Project<u> </u>

Job No.<u> </u>

On receipt by the signer of this document of a check from<u> </u> (maker of check) in the sum of $<u> </u> payable to<u> </u> (payee or payees of check) and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the property of<u> </u> (owner) located at<u> </u> (location) to the following extent:<u> </u> (job description).

This release covers the final payment to the signer for all labor, services, equipment, or materials furnished to the property or to<u> </u> (person with whom signer contracted).

Before any recipient of this document relies on this document, the recipient should verify evidence of payment to the signer.

The signer warrants that the signer has already paid or will use the funds received from this final payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project up to the date of this waiver and release.

Date<u> </u>

---

| | |
|:---|:---|
|  | FIRM OR COMPANY: |
|  | By: |
|  | Print Name: |
| Sworn to and subscribed | Its: |
| Before me this<u> </u>day of |  |
| <u> </u>, 20<u> </u> . |  |

---

---

| |
|:---|
| Notary Public |
| (NOTARY SEAL) |
| My Commission Expires: |

---

**NOTICE:**

**This document waives rights unconditionally and states that you have been paid for giving up those rights. It is prohibited for a person to require you to sign this document if you have not been paid the payment amount set forth below. If you have not been paid, use a conditional release form.**

UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

Project<u> </u>

Job No.<u> </u>

The signer of this document has been paid in full for all labor, services, equipment, or materials furnished to the property or to<u> </u> (person with whom signer contracted) on the property of<u> </u> (owner) located at<u> </u> (location) to the following extent:<u> </u> (job description).

The signer therefore waives and releases any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position.

The signer warrants that the signer has already paid or will use the funds received from this final payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project up to the date of this waiver and release.

Date *<u> </u>*

---

| | |
|:---|:---|
| | (Company name) |
| By | (Signature) |
| | (Title) |

---

STATE OF TEXAS § <br> § <br> COUNTY OF<u> </u> §

This instrument was subscribed to, sworn to, and acknowledged before me, on<u> </u>, 20<u> </u>, by<u> </u>, the<u> </u> of<u> </u>, a<u> </u>, on behalf of said<u> </u>.

Notary Public in and for the State of Texas <br> My Commission Expires:<u> </u>

[SEAL]

**FINAL PAYMENT AFFIDAVIT**

TO:   (*Owner*) PROJECT:  

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The undersigned acknowledges and represents that all persons and entities that have provided labor, material, equipment or services to the undersigned for use or incorporation into the Project have been paid in full or will be paid in full upon receipt of this final payment, that previous payments to the undersigned have been properly applied to pay all outstanding invoices relating to the Project pursuant to their respective agreements, and that the undersigned is not aware of any outstanding claims of any character which could give rise to future claims against the Owner, the Design-Builder (if this affidavit is signed by a subcontractor or supplier) or the Project or Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) This Affidavit constitutes a representation by the undersigned that the payment of $<u> </u>, once received, constitutes full and complete payment for all work performed, and all costs or expenses incurred (including, but not limited to, costs for supervision, general conditions costs, home office overhead, interest on capital and profit) relative to the work or improvements at the Project. The undersigned hereby specifically waives and releases any claim for damages due to delay, hindrance, interference, acceleration, inefficiencies or extra work, or any other claim of any kind it may have against the Owner and its lender (if any), the Owner's project and/or development manager (if any), any tenant of the Owner, the Design-Builder (if this affidavit is signed by a subcontractor or supplier), and any other person or entity with a legal or equitable interest in the Project or Property.

This<u> </u>day of<u> </u>, 20<u> </u> .

---

| | | |
|:---|:---|:---|
|  | FIRM OR COMPANY: | FIRM OR COMPANY: |
| Sworn to and subscribed |  |  |
| before me this<u> </u>day of |  |  |
| <u> </u>, 20<u> </u>. | By: |  |
| Notary Public | Print Name: |  |
| (NOTARY SEAL) | Its: |  |
|  |  | (and duly authorized agent of company) |
| My Commission Expires: |  |  |

---

**Exhibit E**

**<u>Change Order</u>**

---

| |
|:---|
| **PROJECT NAME:** |
| **OWNER:** |
| **CONTRACTOR:** |

---

---

| |
|:---|
| **DATE OF AGREEMENT:** |
| **DATE OF THIS CHANGE ORDER:** |
| **CHANGE ORDER NUMBER:** |

---

The Agreement between Owner and Contractor (the "Agreement") is changed as follows **(*include a specific and detailed description of the change in the Agreement, including, where applicable, references to relevant paragraphs in the original Agreement, specific pages of the Contract Documents, or relevant sections of the Drawings and Specifications****)*:

The Contract Time is hereby [increased] [decreased] by the following number of calendar days:

<u> </u>

The Contractor hereby waives and releases any claim it may have against the Owner for any adjustment in the Contract Time resulting from, or related to, the change reflected in this Change Order, except as agreed to above.

The Contract Sum is hereby [increased] [decreased] by $<u> </u>.

The Contractor hereby waives and releases any claim it may have against the Owner for any adjustment in the Contract Sum arising out of, or related to, the changes reflected in this Change Order, including, but not limited to, any claim for damages due to delay, disruption, hindrance, impact, interference, inefficiencies or extra work arising out of, resulting from, or related to, the change reflected in this Change Order, except as agreed to above.

---

| |
|:---|
| Original Contract Sum: |
| Net Change by Previous Change Orders: |
| Contract Sum before this Change Order: |
| [Increase] [Decrease] in this Change Order: |
| Contract Sum, as adjusted by this Change Order: |
| Substantial Completion Date, as adjusted previously: |
| [Increase] [Decrease] in Contract Time: |
| New Substantial Completion Date: |

---

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order. Any language in proposals or other documents attached hereto that conflict with the terms contained herein is null and void.

---

| | |
|:---|:---|
| **Owner:** | **Contractor:** |
| By: | By: |
| Name: | Name: |
| Title: | Title: |

---

**Exhibit F**

**<u>Construction Change Directive</u>**

---

| | |
|:---|:---|
| **PROJECT NAME:** | |
| **OWNER:** | |
| **CONTRACTOR:** | |
| **ORIGINAL CONTRACT DATE:** | **<u> </u>** |
| **DATE OF THIS CCD:** | **<u> </u>** |
| **CCD NUMBER:** | |

---

Pursuant to the Construction Contract dated<u> </u>, 20<u> </u>, the Contractor is hereby instructed by the Owner to change or modify the original scope of the Contract Documents as follows: ***(include a specific and detailed description of the change, attaching relevant documents as appropriate****)*:

Unless indicated below, the Owner does not intend to enter into a Change Order increasing the Contract Sum as a result of the issuance of this Construction Change Directive.

**[*If the Owner does intend to enter into a Change Order adjusting the Contract Sum, enter any not to exceed amount on expenditures or methods for determining amount (approved hourly rates, etc.) here*]**

*In the event Contractor disagrees with the Owner's intention, as stated above, concerning adjustments in the Completion Dates, or the Contract Sum, the Contractor shall give notice of a claim pursuant to the terms of the Contract Documents, and otherwise comply with the terms thereof.*

 

*The parties intend to execute a Change Order formalizing all of the terms relative to this Construction Change Directive within thirty (30) days, and Contractor acknowledges that it cannot be paid until a formal Change Order is signed by the Owner.*

---

| |
|:---|
| **OWNER** |
| By: |
| Date: |
| Contractor acknowledges receipt, and agrees to |
| "not to exceed" amounts (if any) and/or approved |
| rates (if any) that may be referenced herein. |
| This<u> </u> day of<u> </u>, 20<u> </u>. |
| Name: |
| Title: |

---

**Exhibit G**

**<u>INSURANCE REQUIREMENTS</u>**

[See Attached]

**INSURANCE**

§ 1.1 **Contractor's Insurance.** Contractor shall maintain, and shall cause its Subcontractors of every tier to maintain, in effect at all times and at each party's own expense, the following lines of insurance as will protect Contractor and Owner from claims set forth hereunder, which may arise out of or result from the operations under this Agreement and for which the Contractor may be legally liable, whether such operations are performed by the Contractor, a Subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts they may be liable. Such lines of insurance shall be written for not less than the following minimum limits, or such greater amounts as required by law.

§ 1.1.1 **Workers' Compensation and Employer's Liability Insurance**. Workers' Compensation Insurance in full compliance with all applicable state and federal laws and regulations covering all employees with maximum available limits, together with Employer's Liability Insurance in amounts not less than $500,000 bodily injury each accident, $500,000 bodily injury by disease each employee, and $500,000 bodily injury by disease policy limit, or such greater amounts as may be required by Contractor's and/or a Subcontractor's Umbrella Liability policy in order to effect such excess coverage.

§ 1.1.2 **Commercial General Liability Insurance**. Commercial General Liability Insurance, written on a current CG 00 01 occurrence policy form, as published by the Insurance Services Office (ISO), providing limits of not less than $1,000,000 per occurrence and $2,000,000 general aggregate applying on a per project/per location basis covering bodily injury (including death and mental anguish) and property damage, $1,000,000 Personal and Advertising Injury, and $2,000,000 Products-Completed Operations. Products- Completed Operations shall be maintained for a minimum period equal to the greater of ten (10) years after Substantial Completion of the Work, or the period under which a claim can be asserted under the applicable statute of limitations and/or repose. Such policy must provide coverage for Personal Injury, Premises-Operations, Ongoing and Products-Completed Operations, Independent Contractor Liability (including Contingent Liability), liability arising from Explosion, Collapse and Underground Hazards (including Subsidence) (i.e., "XC & U" coverage and an Endorsement that the "XCU Exclusions" are removed), and Broad-Form Property Damage. Such policy shall not contain (i) any exclusion with respect to professional liability broader than ISO endorsement CG 22 79 07 98, (ii) any exclusion or limitation with respect to resulting or consequential property damage, or (iii) any exclusion for work or operations within fifty (50) feet of a railroad, light rail, subway or similar tracked conveyance, if applicable. In addition, such policy shall include insurance providing coverage for full Contractual Liability for liability assumed under this Agreement, the Contract Documents and all other agreement, including indemnity agreements, relative to the Project. The policy must include endorsement CG 24 17 10 01-Contractual Liability-Railroads, if applicable.

§ 1.1.3 **Business Automobile Liability Insurance**. Business Automobile Liability Insurance covering liability arising out of any auto (including owned, non-owned, and hired vehicles) in an amount not less than $1,000,000 combined single limit each accident covering bodily injury and property damage. Such policy shall not contain any exclusion or limitation with respect to loading and unloaded of a covered vehicle. If Contractor and/or any Subcontractor of any tier is hauling or transporting waste materials, Site Hazardous Substances or any other environmentally regulated substances that require a regulated manifest, relating to the Work, the Automobile Liability Insurance policy of Contractor and/or Subcontractor furnishing such services shall also include CA-9948 and MCS-90 Endorsement.

§ 1.1.4 **Umbrella and/or Excess Liability Insurance**. Contractor shall carry an Umbrella/Excess Liability Insurance policy on a follow form basis with a per occurrence and annual aggregate limit of not less than $25,000,000 applying on a per project/per location basis. All Subcontractors will be required to carry a per occurrence and annual aggregate limit of not less than $2,000,000 applying on a per project/per location basis, unless limits are otherwise provided by Owner and/or Contractor in writing. Coverage shall be in excess of Commercial General Liability, Automobile Liability and Employer's Liability Insurance policies with such coverage being concurrent to and not more restrictive than the underlying insurance. Such policy shall, by specific endorsement to its Umbrella/Excess Liability policy, cause the coverage afforded to the Additional Insureds thereunder to be first tier umbrella/excess coverage above the primary coverage afforded to the Additional Insureds as set forth in this Exhibit and not concurrent with or excess to any other valid and collectible insurance available to the Additional Insureds, whether provided on a primary or excess basis. Contractor hereby expressly agrees, and shall cause its Subcontractors to agree, that it is the specific intent of the parties that Contractor and any Subcontractor are required to provide Umbrella/Excess Liability coverage, whereby such coverage is vertically exhausted and not subject to any "horizontal exhaustion" rights any insurers issuing such insurance policies may have in regards to any insurance Owner and/or any other Additional Insured might carry for its own benefit, or on behalf of other Additional Insureds.

§ 1.1.5 **Pollution Liability Insurance**. If any Subcontractor is engaged for environmental abatement, remediation work, or treatment, storage, use, removal or transport of Hazardous Materials (including but not limited to, asbestos containing materials, silica, lead, and PCBs) at, to or from, the Project Site, or if a Subcontractor's work includes, but is not limited to, excavation, boring, grading, demolition, or any other work which could in any way contribute to or cause moisture to be introduced into the interior of the building, either by construction, sealing or penetrating any portion of the building's exterior envelope or releasing moisture within the building, Contractor shall require that party to maintain Contractor's Pollution Liability Insurance, or equivalent coverage, with limits not less than $1,000,000 each occurrence and in the aggregate. Such policy shall include liability coverage for bodily injury, property damage and clean-up costs resulting from pollution conditions, as well as coverage for mold and accidental release of asbestos.

§ 1.1.6 **Professional Liability Insurance**. If any Subcontractor is engaged to perform professional services, including without limitation design or engineering services for the Project, whether provided by professionals on a Subcontractor's staff or by independent parties under consulting agreements with Subcontractor, Contractor shall require that party to maintain Professional Liability Insurance with a limit not less than $1,000,000 per claim and in the aggregate. Such policy shall continue in force by renewal or Extended Reporting Period provision for a minimum period equal to the greater of ten (10) years after Substantial Completion of the Work, or the period under which a claim can be asserted under the applicable statute of limitations and/or repose. If coverage is issued on a claims-made form, such coverage shall apply with a retroactive date to reflect the date of commencement of the Work for the Project.

§ 1.1.7 **Property Insurance**. Contractor and its Subcontractors of every tier shall be responsible for each party's own property, tools and equipment for their full replacement value, including loss of use, and hereby release Owner and the Additional Insureds from any and all liability for such property. Contractor and its Subcontractors of every tier shall be solely responsible for all associated property insurance, deductibles, and claims related thereto.

§ 1.2 **Additional Requirements**.

§ 1.2.1 All insurance required of Contractor and its Subcontractors of every tier hereunder this Exhibit shall be issued by a company or companies authorized to do business in the State in which the Project is located, possessing an A.M. Best's Rating of not less than "A-" and a financial size of "VIII" in the latest edition of Best's Insurance Reports. Prior to the date of commencement of the Work and first entry upon the Project Site, Contractor shall deliver to Owner, and shall require and collect from each of its Subcontractors, duly executed Certificates of Insurance and all required policy endorsements for additional insured and waiver of subrogation, and as otherwise evidencing all of the insurance required under this Exhibit, which shall be subject to Owner's acceptance. Contractor shall deliver to Owner complete copies of policies upon Owner's request. Evidence of the Project Name, Address and Owner's Project Number shall be listed in the Description section of the Certificate and on all Project specific Certificates and Endorsements. In no event shall any acceptance of Certificates of Insurance and/or other evidence of policies by Owner, or failure of Contractor or any Subcontractor to provide Certificates of Insurance, endorsements and/or copies of policies as required hereunder, be construed as a waiver or limitation of Contractor's obligations to maintain and enforce insurance requirements pursuant to this Exhibit.

§ 1.2.2 All insurance required of Contractor and its Subcontractors of every tier hereunder this Exhibit shall be primary and any other insurance that may be available to Owner and any Additional Insured shall be excess and non-contributory. All insurance policies (including, without limitation, ongoing and products-completed operations coverage under the Commercial General Liability Insurance policy), except with respect to Workers' Compensation, Employer's Liability and Professional Liability Insurance policies, shall include as additional insureds the Owner (Canadian Solar US Module Manufacturing Corporation), its affiliates contributing to the Project, Owner's Lender, any additional entity that acquires a direct or indirect interest in the Property and/or Project and each of their respective directors, officers, board members, shareholders, employees, and agents (collectively, the "Additional Insureds"), which shall be at least as broad as the coverage afforded to the named insured thereunder. Such additional insured status shall be afforded by way of scheduled endorsement at least as broad as the CG 20 10 10 01 together with CG 20 37 10 01 (or Form CG 20 10 11 85 by itself), as published by ISO. Samples of policy endorsements shall be furnished to Owner prior to the date of commencement of the Work.

§ 1.2.3 Contractor, its Subcontractors of every tier, agents and employees, waive all causes of action or claims they may have against Owner and the Additional Insureds for any liability and workers' compensation claims they incur in relation to Work or services under this Agreement. Contractor and its Subcontractors of every tier shall have all respective policies required hereunder this Exhibit appropriately endorsed with waiver of subrogation endorsements in favor of Owner and the Additional Insureds. Samples of policy endorsements shall be furnished to Owner prior to the date of commencement of the Work.

§ 1.2.4 The Commercial General Liability and Automobile Liability (including the Umbrella/Excess Liability policy following the forms thereof) policies shall include a Separation of Insureds clause such that the insurance applies separately to each insured against whom a claim or suit is asserted, and such policies shall not contain any limitation or exclusion with respect to cross-liability for claims or suits by one insured against another. In addition, all liability policies, except with respect to Professional Liability Insurance, shall provide that defense costs from any claim will apply outside the applicable limits of insurance.

§ 1.2.5 Each insurance policy required hereunder this Exhibit shall not be canceled, non-renewed or materially altered without thirty (30) days' advance written notice (ten (10) days' advance written notice for non-payment of premium) to Owner, which shall be stated on the Certificates of Insurance. Contractor's and its Subcontractors' insurance policies shall be endorsed to extend notice of cancellation rights to Owner, to the extent commercially available, or, to the extent such provision is not commercially available, Contractor and its Subcontractors shall notify Owner of any written notice of cancellation, lapse or modification delivered to Contractor or any such Subcontractor by its insurer immediately upon such party's receipt thereof. At least ten (10) days prior to renewal of any policy required hereunder this Exhibit, renewal Certificates of Insurance together with such other policy documents as Owner may request shall be provided to Owner.

§ 1.2.6 Neither the issuance of any insurance policy required hereunder, nor the minimum limits specified herein with respect to Contractor's and any Subcontractor's insurance coverage, shall be deemed to limit or restrict in any way Contractor's or any such Subcontractor's liability in connection with or arising out of its Work and the indemnification obligations set forth in the Agreement.

§ 1.2.7 No deductible or self-insured retention amount related to any insurance required hereunder shall exceed $25,000, unless otherwise approved by Owner in writing. Owner shall not be responsible for any deductible or self-insured retention amount and the same shall in no event be deemed a Cost of the Work. Any agreed upon deductible or self-insured retention amount must be evidenced on the appropriate Certificate of Insurance.

§ 1.2.8 No policy of insurance maintained in accordance with this Exhibit shall contain (i) any exclusion or limitation with respect to work on a project whereby a project-specific, Owner Controlled Insurance Program ("OCIP"), or Contractor Controlled Insurance Program ("CCIP") is in effect (if applicable), or (ii) any classification, endorsement or exclusion applicable to the Work or operations of the type contemplated by this Agreement, which shall be stated on the Certificates of Insurance.

§ 1.2.9 Contractor shall ensure that all Subcontractors of every tier shall procure and maintain insurance in like form and amounts required in this Exhibit, including additional insured status afforded to and waiver of subrogation in favor of Owner, Contractor and the Additional Insureds. Copies of the Certificates of Insurance and endorsements must be provided prior to the date of commencement of any Work and first entry upon the Project Site.

§ 1.2.10 Owner reserves the right to reasonably require such other insurance, written in such other amounts, against other insurable hazards that at the time are commonly insured against in the case of projects similarly situated to the Project. Contractor and its Subcontractors of every tier may also carry such other insurance as each respective party deems necessary for its own protection, which shall also be primary and non-contributory, afford additional insured status and include a waiver of subrogation, as required and set forth in this Exhibit.

§ 1.3 **Project Insurance**. Notwithstanding the foregoing, Owner retains the right to structure, or cause to be structured, liability coverage for the Project through a project-specific insurance policy, OCIP or CCIP (collectively, the "Project Insurance"), if applicable. If Owner elects to exercise such right to utilize Project Insurance, and to require Contractor and its Subcontractors of every tier to participate in such Project Insurance, Owner may do so as a project cost (to the extent included in the project budget), for the benefit of Owner, Contractor and its Subcontractors, as the case may be. In addition, Contractor and its Subcontractors of every tier may satisfy the required Commercial General Liability and Umbrella and/or Excess Liability Insurance requirements through participation in the aforementioned Project Insurance, provided that, the insurance coverage under such program is consistent with the requirements set forth herein this Exhibit. Notwithstanding the foregoing, Contractor and its Subcontractors of every tier must maintain at all times separate Commercial General Liability and Umbrella and/or Excess Liability Insurance coverage in order to support that respective party's indemnities under the Agreement not covered by the Project Insurance, as well as those offsite operations.

§ 1.4 **Property Insurance**. Owner shall purchase and maintain, or cause to be purchased and maintained, as a project cost, "All Risk" Property and/or so-called Builder's Risk insurance, or their equivalent, in the amount of one hundred percent (100%) of the full replacement costs of the Work, including, but not limited to, all improvements to the Project performed by the Contractor and/or its Subcontractors, without any co-insurance requirements or penalties.

§ 1.4.1 Contractor and its Subcontractors of every tier shall be responsible for the deductible associated with any claim(s) made under the All Risk Property and Builder's Risk policy above, provided that such loss is attributable to Contractor's negligent acts or omissions, or the negligent acts or omissions of its Subcontractors of every tier, or any other entity or party for whom Contractor may be contractually or legally responsible. Owner is responsible for all other and subsequent deductible amounts.

§ 1.4.2 Owner and the Contractor hereby waive, and Contractor shall cause all respective Subcontractors of every tier, agents and employees, to waive all causes of action or claims they may have against the Owner for damages caused by fire or other causes of loss, to the extent covered by property insurance obtained pursuant to this Section 1.4 hereof.

§ 1.4.3 A loss insured under the Owner's property insurance shall be adjusted by the Owner as fiduciary and made payable to the Owner as fiduciary for the insureds, as their interests may appear, subject to requirements of any applicable mortgagee clause set forth in the Agreement. Contractor shall pay its Subcontractors their just shares of insurance proceeds received by the Contractor, and by appropriate agreements, written where legally required for validity, shall require its Subcontractors to make payments to their Sub-subcontractors in similar manner.

**Exhibit H**

**<u>Schedule of Values</u>**

[See Attached]

**Exhibit H - Redacted**

Schedule of Values page withheld in this SEC version.

Detailed line-item pricing, quantities, and internal allocation data have been redacted.

**Exhibit I**

**<u>Project Schedule</u>**

[See Attached]

**Exhibit I - Redacted**

Project Schedule detail page withheld in this SEC version.

Detailed sequencing, work-package timing, and execution detail have been redacted.

**Exhibit I - Redacted**

Project Schedule detail page withheld in this SEC version.

Detailed sequencing, work-package timing, and execution detail have been redacted.

**Exhibit I - Redacted**

Project Schedule detail page withheld in this SEC version.

Detailed sequencing, work-package timing, and execution detail have been redacted.

**Exhibit I - Redacted**

Project layout / schedule detail withheld in this SEC version.

Technical layout, coordination, and execution detail have been redacted.

**Exhibit J**

**<u>Not Used, Reserved</u>**

**Exhibit K**

**<u>OFCI Equipment</u>**

[See Attached]

**Exhibit K - Redacted**

Owner-furnished / contractor-installed equipment detail withheld in this SEC version.

Specific equipment descriptions and project technical detail have been redacted.

**Exhibit K - Redacted**

Equipment process / material detail withheld in this SEC version.

Specific technical descriptions and specifications have been redacted.

**Exhibit K - Redacted**

Equipment process / material detail withheld in this SEC version.

Specific technical descriptions and specifications have been redacted.

## Exhibit 10.10

**Exhibit 10.10**

**SITE SERVICES AGREEMENT**

THIS SITE SERVICES AGREEMENT (this "**Agreement**"), dated effective as of **September 18, 2025** (the "**Effective Date**"), is by and between, **Waaree Solar Americas Inc.**, a Texas corporation (the "**Owner**") whose principal office is located at 2439 Discovery Hills Pkwy, Brookshire, Texas 77423 and **Bestwater Industrial Construction, doing business as BW Industrial Construction** a Texas corporation ("**Contractor**") whose principal office is located at 2825 Wilcrest DR, Suite 421, Houston, TX 77042 Contractor and Owner are sometimes referred to herein collectively as the "**Parties**" and individually as a "**Party**".

**<u>RECITALS</u>**

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Owner is engaged in the business of manufacturing solar modules
and intends to procure certain services for its solar modules manufacturing facility located at 2439 Discovery Hills PKWY. Brookshire,
Texas 77423 ()"**Project Site** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Contractor is engaged in the construction business, and
has the experience, expertise, and capacity to perform the Work (as defined below) for the expansion project of Owner's module
manufacturing facility at the Project Site ()"**Project** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on the representations made by the Contractor the Owner
desires to avail services for the Work at the Project Site in accordance with the terms and conditions of this Agreement.

**NOW, THEREFORE**, in consideration of the mutual covenants, terms, and conditions set out herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

**I. <u>Work Pricing.</u>** As further described in this Agreement, Contractor agrees to perform the work and services as described in Attachment 4 (the "**Work**") at the Project Site in strict compliance with design finalized by the Owner for the Work and as per the terms of this Agreement. Owner agrees to pay Contractor a price of US Dollars $19,837,783.00 (the "Contract Price") for the Work as per the provisions of this Agreement. Fees for Designing and construction permit fees of US Dollar $690,000.00 and any applicable sales tax are excluded from the Contract Price and shall be reimbursed by Owner to Contractor upon presentation of final approved design including but not limited to relevant invoices, final signed permits as issued by government authorities in the name of Owner and any other document required by the Owner.

The Contract Price shall remain unaffected by fluctuations in labor, material, transportation, energy, or currency exchange rates. Except as expressly provided through a duly executed Change Order, the Contract Price shall constitute total compensation to Contractor for the full and faithful performance of the Work and for all risks, costs, taxes (excluding sales tax if separately mentioned), overhead, profit, and contingencies connected therewith. Contractor expressly waives any right to claim adjustment of the Contract Price due to market escalation, supply chain delays, subcontractor failure, or errors or omissions in its bid or cost estimate.

**II. <u>Schedule; Progress Reporting</u>**. Contractor will commence the Work within seven (7) days upon receipt of permits and perform the Work in accordance with the schedule and terms set forth in Attachment 2, including any milestone dates therein. Contractor will, on a monthly basis (and at such other times as reasonably requested by Owner) provide Owner with written reports of the progress of the Work. The Contractor's obligation to mobilize and commence Work shall be contingent upon (i) approval of design for the Work prepared by the Contractor; (ii) procurement of designing and construction permit from governmental authorities by the Contractor; and (iii) receiving a written notice to proceed from the Owner, confirming that the construction site is prepared and available for the Contractor's access and performance of Work. Any delays arising from the Owner's failure to provide such notice or to make the site ready shall not be deemed a breach by the Contractor, nor shall the Contractor be liable for any costs, damages, or delays resulting therefrom. It is hereby clarified that Contractor shall mobilize its manpower, material and machinery and commence the Work within seven (7) days from the date of issuance of notice to proceed by Owner as provided in point (iii) above. For any delay in above timeline Contractor shall be liable of Delay Liquidated Damages as per clause 8.1.1 below.

**III. <u>Notices</u>**: All notices permitted or required to be given under this Agreement shall be in writing and shall be deemed duly given: (a) on the same day when transmitted by electronic mail to the recipient's e-mail address as set forth below; provided, that the recipient has confirmed its receipt of the email by response email (if such response is not provided by the recipient in three(3) working days from the date of receipt of e-mail then it shall be deemed as duly given), or (b) on the date when delivered, when sent by overnight courier (e.g., FedEx or UPS) or by personal delivery. All notices shall be delivered or sent to the Parties at their respective address(es)shown below or to such other address(es) as a Party may designate by prior written notice given in accordance with this provision to the other Party:

**If addressed to Owner**

Attention: Mr. Sunil Rathi

Address: 2439 Discovery Hills Parkway, Brookshire, TX 77423

Email:

**If addressed to Contractor**

Attention: Mr. Bob Sliva

Address: 2825 Wilcrest DR , Suite 421, Houston , TX 77042

Email:

**IV. <u>Attachments;</u>**. The following documents are set forth as attachments to, and are hereby deemed incorporated and made a part of, this Agreement:

Attachment 1: Terms and Conditions.

Attachment 2: Work Schedule.

Attachment 3: Payment Terms.

Attachment 4: Scope of Work.

Attachment 5: Insurance.

(collectively referred to as "**Attachments**")

In the event of a conflict among, or within, any provision within this Agreement, then the body of this Agreement shall control over the Attachments, and the Attachments shall be given precedence in the order stated above; provided that, any amendments to this Agreement (including Change Orders) shall be duly signed by both Parties, with those of a later date having precedence over those of an earlier date concerning the same matter.

**V. <u>Entire Agreement</u>**. This Agreement supersedes any prior agreements between Owner and Contractor in regard to the Work and Project, whether written, oral or otherwise.

**VI. <u>Further Cooperation</u>**. Each of the Parties shall use commercially reasonable efforts to, from time to time at the request of the other Party, furnish the other Party such further information, execute and deliver such additional documents and instruments, and take such other actions and do such other things, as may be reasonably necessary to carry out the provisions of this Agreement and give effect to the transactions contemplated hereby.

**VII. <u>Counterparts: Facsimile Signatures</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. Any signature page of any such counterpart, or any electronic or facsimile thereof, may be attached or appended to any other counterpart to complete a fully executed counterpart of this Agreement, and any .pdf-format or other electronic or facsimile transmission of any signature of a Party shall be deemed an original and shall bind such Party.

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **Contractor:** | **Owner:** |
| **BW Industrial Construction** | **Waaree Solar Americas Inc.** |
| By: | By: |
| Name: | Name: |
| Title: | Title: |

---

**ATTACHMENT 1**

**TERMS AND <br> CONDITIONS**

1. <u>**WORK AND PRODUCTS**</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** The Work is as described in <u>Attachment 4</u> of this Agreement,
and includes all Work expressly included therein and as per the final design approved by the Owner. Contractor acknowledges and agrees
it has had an opportunity to review the plans, specifications, drawings, and other materials describing the Work to be completed. Any
materials, equipment and/or other goods supplied, provided, installed or constructed by Contractor as part of the Work (if any) shall
be referred to herein as "**Products**." Contractor shall promptly notify Owner in writing in the event it discovers any
nonconformity, error, or omission in the documents describing and/or governing the Work to be performed before the commencement of Work
as per clause II. above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** Contractor acknowledges and agrees that it has carefully examined
the Project Site, all available geotechnical data, drawings, and other information, and has satisfied itself as to the conditions to
be encountered in performing the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** No claim by Contractor for adjustment of the Contract Price,
schedule, or any other relief shall be allowed on the basis of any misunderstanding of the nature or character of the Work, or of the
conditions or difficulties to be encountered, except to the limited extent such conditions constitute a verified Force Majeure Event
as defined herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4** The Work shall include all supervision, labor, materials,
tools, consumables, plant, temporary facilities, equipment, and services expressly stated in the Work or reasonably inferable therefrom
as necessary to complete the Work in compliance with the final design approved by the Owner and all Applicable Laws.

2. <u>PAYMENTS; LIEN WAIVERS; TAXES; RECORDS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>**Invoicing**</u>. Invoicing for Work shall be as set out in <u>Attachment 3</u>. Notwithstanding anything in this Agreement to the contrary, Owner may, without prejudice to any other rights Owner may have, withhold such invoiced amounts from Contractor's invoices to Owner or withhold all or any portion of any payment due to Contractor for: (a) defective, incomplete or non-conforming Work by Contractor or any of its subcontractors; (b) damage to Owner or Owner's property to the extent caused in whole or part by the negligence of Contractor, its employees, its subcontractors or its agents; (c) claims filed by third parties for which Contractor has an indemnification obligation toward an Owner Indemnitees under this Agreement; or (d) any other reason permitted under Applicable Laws (as defined hereinbelow).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>**Lien Waivers**</u>. For any invoice hereunder to be properly payable, and as a condition precedent to payment by the Owner, the Contractor shall provide Owner with proof of lien waivers covering the invoiced amounts, in form and substance acceptable to Owner, from Contractor and any subcontractor, agent, supplier or any third party who has or may claim lien rights in connection with such invoice.

Attachment 1, Page 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 **<u>Payment Terms and Security -</u>** All payments shall be milestone-based, tied to measurable progress of the Work, and subject to verification and written certification by the Owner or Owner's authorized representative and paid within fifteen (15) days of such verification and written certification. As a condition precedent to advance or mobilization payment equivalent to twenty percent (20%) of Contract Price, Contractor shall furnish to Owner an unconditional, irrevocable construction payment bond from a surety company validly existing under the provisions of applicable laws and having rating by S&P or Fitch or equivalent as acceptable to Owner , equal to twenty percent (20%) of the Contract Price ("Surety Bond").

Contractor shall, prior to commencement of Work, furnish a separate performance security in the form of an unconditional & irrevocable construction payment bond issued by a surety company from a surety company validly existing under the provisions of applicable laws and having rating by S&P or Fitch or equivalent as acceptable to Owner, equivalent to ten percent (10%) of the Contract Price ("Performance Security"), valid until ninety (90) days after the expiry of the Defect Liability Period.

Owner shall have the right to deduct and retain ten percent (10%) of each invoice as retention money. Five percent (5%) of the retention money to be released upon successful commissioning of the Work and remaining five percent (5%) shall be released 90 days after successful SAT of the Work.

All payments are subject to Owner's right to set-off against any amounts due from Contractor under this Agreement or any other agreement between the Parties or their affiliates.

Surety company issuing Surety Bond process and pay the claim to the Owner as per applicable laws.

3. <u>SHIPMENT, DELIVERY AND TITLE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>**Shipment and Delivery**</u>. If the Work includes the delivery of Products, Contractor will deliver all Products "Delivery Duty Paid" (DDP) (Incoterms 2020) to the Project Site. Title and risk of loss or damage to Products shall pass to Owner upon completion of such delivery, except to the extent that any damage is caused by the negligence or willful misconduct of Contractor or its employees, subcontractors or agents. Unless otherwise directed by Owner, Contractor may make partial shipments of Products as per the requirements of the Project and in compliance with work schedule provided under Attachment 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>**Title and Liens**</u>. Contractor warrants that title to all Products provided hereunder will be free and clear of all claims, liens, security interests and other encumbrances. Contractor shall promptly pay all costs incurred by Contractor towards its suppliers/vendors/financers/agent or any other part in performing the Work/supply of Products and shall take all actions necessary to (a) avoid the attachment of any liens or charges on Owner's property, or (b) remove any lien on Owner's property arising from the Work. If Contractor fails to keep the Project or Owner's property free from liens, Owner may in its sole discretion take such steps as may be necessary to resolve and remove such liens and Contractor shall within five (5) days of demand reimburse Owner in full or any expenses, costs, payments, and professional & attorneys' fees which Owner incurs in connection with the same.

Attachment 1, Page 2

4. <u>SIGNIFICANT OBLIGATIONS AND PROFESSIONAL RESPONSIBILITIES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>**Standards of Performance.**</u> Contractor shall perform all Work (a) in a professional, prudent and workmanlike manner that is free from defects, errors and omissions and with the same degree of skill, care, diligence and competence that is utilized by nationally- recognized construction professionals in the same field under the same or similar circumstances; and (b) strictly in accordance with all Applicable Laws, codes, permits and safety precautions, the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 **Warranty:** Contractor warrants that all Work shall be executed in a good, safe manner, using new materials and equipment of first-class quality, free from defects in design, materials and workmanship. Contractor further warrants that the Work, when completed, shall conform to the specifications set forth in this Agreement and is for the purpose intended by the Owner and shall operate safely and reliably as an integrated system. Without limiting its Defect Liability obligations, Contractor shall warrant the Work for a period of twenty-four (24) months from the date of issuance of the Certificate of Acceptance. Any portion of the Work repaired or replaced during the warranty period shall be warranted for the remainder of the original warranty period commencing upon completion of such remedial work. All warranties shall survive inspection, testing, acceptance, and termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>**Applicable Laws**</u>. Contractor shall comply with all international, national, federal, provincial, state and local laws, decrees, orders, judgements, ordinances, regulations and ordinances (including without limitation those of the Project's local jurisdiction) including, without limitation, those pertaining to the environment, health, safety, sanitary facilities, waste disposal and other matters applicable to or affecting the performance of the Work that are published and in effect at the time the Work is performed ("**Applicable Laws**"). Contractor shall ensure that its employees, agents and subcontractors comply with Applicable Laws and any applicable site rules and regulations including those made by Owner while working on the Project Site, provided that Contractor has been notified of such Project Site rules. It is hereby clarified that all sign boards, manuals and directions whether oral or written issued by the Owner shall be deemed to be notified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>**Safety**</u>. Contractor shall, and shall ensure that its employees, agents and subcontractors, comply with all OSHA regulations and other federal, state or local safety standards. Contractor shall take all necessary precautions in accordance with prudent industry standards for the safety of all persons and property at, on, or near the Project Site, including but not limited to erecting and maintaining proper safeguards. Any safety incidents, injuries or hazards incurred by or encountered by a Party must be reported immediately to the other Party. Contractor shall comply with all safety requirements imposed by the Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>**Non-Interference; Owner Property Damage**</u>. Contractor will not, and will ensure that its employees, subcontractors and agents do not, interfere with the ongoing operations of any facility or equipment at the Project Site, except as otherwise approved by Owner or its representative in writing in advance of such interference. Contractor will take all reasonable actions to protect each facility, equipment and all other property of Owner and Owner from damage as a result of its performance of the Work. Contractor shall reimburse Owner and its affiliates for all documented costs and expenses (including property replacement and remediation costs) caused by damage to or loss of Owner or Owner's property to the extent directly caused by the negligent or willful actions of Contractor, its employees, agents or subcontractors, provided that such liability shall be subject to the limitation of liability provisions in Section 6 and shall not exceed the insurance coverage required under Section 4.8. Contractor will insure all of Contractor's and its subcontractor's equipment, tools and devices, and at all times remain responsible for the risk of loss thereof.

Attachment 1, Page 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>**Items Supplied by Owner**</u>. Any tools, supplies, equipment, facilities or other items supplied by Owner to Contractor for performance of any Work ("**Owner Supplies**") shall be given to Contractor on a temporary basis and returned to Owner upon completion of use by Contractor of such Owner Supplies or as otherwise agreed to by the Parties. Any Owner Supplies provided to Contractor shall be on "AS IS WHERE IS," basis and Owner makes no representation as to the conditions, suitability for use, freedom from defects or otherwise. The Contractor shall without any delay or demur pay all costs for any damage caused to Owner Supplies by the Contractor, its employees, agents or subcontractors or any of its third parties within seven (7) days from the date the Owner notifies such damage to the Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>**Inspection**</u>. Owner and its representative shall have a right to inspect any Products or Work at any time, including while at Contractor's and/or /its supplier's/agent's facilities. If Contractor fails to correct defect highlighted by the Owner or its representative during such inspection in such Product(s) or Work or fails to diligently carry out the Work in accordance with the requirements of this Agreement or if Contractor's actions otherwise fail to conform to the requirements of this Agreement, then Owner may order Contractor to stop performance of the portion of the Work affected thereby, until the cause of such order has been eliminated at the sole cost of Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>**Removal of Personnel**</u>. If at any time during the performance of the Work, any of Contractor's or its subcontractor's personnel become, for any reason, unacceptable to Owner, including as a result of such person's creating an undue risk of a safety hazard at the Project Site, then, upon notice from Owner, Contractor will immediately remove and replace such individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>**Insurance**</u>. The Contractor shall, at its sole expense, procure and maintain the following insurance coverage as provided in Attachment 5 throughout the duration of the Project and until final acceptance of all Work, such insurance shall be primary and non-contributory to any insurance maintained by Owner. Contractor shall furnish certificates of insurance and endorsements evidencing compliance with these requirements prior to commencing Work. The Contractor shall ensure that the name of Owner and its affiliates is reflecting as *loss payee/additional insured* in such certificates of insurance. Failure to maintain insurance coverage shall constitute a material breach of this Agreement. Builder's risk insurance shall be obtained by the Owner as per industry norms.

5. <u>CHANGE ORDERS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>**Change Orders**</u>. Except to the extent provided in this <u>Section 5</u>, there shall be no change to the Work, the Contract Price or the Project schedule (Attachment 2), except to the extent provided in a written Change Order signed by both Parties. If the Parties agree to alter the Work, the schedule for the Work or the pricing payable for the Work, they will reduce such agreement in writing into a "Change Order" signed by both Parties, which shall act as an amendment to this Agreement. In the event of conflict between such Change Order and this Agreement, the Change Order shall prevail to the extent provided therein.

Attachment 1, Page 4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.2 <u>Required Change Orders</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;5.2.1 If (i) Contractor's performance of the Work is delayed or its costs to perform the Work increases as a direct result of the failure of Owner to meet any of its obligations in any material respect under this Agreement when required, and (ii) Contractor has used all commercially reasonable efforts to perform the Work to avoid and mitigate any potential delays to the Project schedule and/or increased costs resulting from such events, including seeking recovery under all applicable insurance policies for damage to Contractor's tools and equipment, and (iii) Contractor has provided prompt written notice to Owner of such delays or increased costs (in no event more than two (2) business days after Contractor discovers the condition giving rise to the delays or increased costs), then Contractor may request the Owner with justification to issue a Change Order in writing. Owner shall not unreasonably withhold, condition, or delay approval of such request. The request shall be subject to evaluation by Owner or by a mutually agreed third-party expert. Based on the findings of such evaluation, the Owner shall accept or reject such request, providing written reasons for any rejection. In the event the Owner rejects such request and such rejection is determined to be reasonable, the Contractor shall use commercially reasonable efforts to achieve the timelines as provided in Attachment 2 to this Agreement.

No change, addition, omission, or variation in the Work or schedule shall be valid unless agreed in a written Change Order signed by both Parties. Failure to provide timely notice as specified in Section 5.2.1 may limit Contractor's right to claim additional cost or time to the extent Owner can demonstrate actual prejudice resulting from the delay in notice. Each Change Order shall include detailed cost breakdowns, supporting documentation, and schedule impact analysis. Owner reserves the right to audit Contractor's records to verify claimed costs. Pending execution of a Change Order, Contractor shall continue diligent performance of all Work without interruption or delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2 Subject to acceptance of Contractor's request for issuance of Change Order as per Section 5.2.1 by the Owner, the Owner shall issue a Change Order extending the Project schedule and adjusting the Contract Price on an equitable basis as determined by the facts and circumstances evaluated pursuant to Section 5.2.1 to enable Contractor to remedy the effect on Contractor's ability to perform the Work. Contractor shall, in its written request to Owner for issuance of Change Order under Section 5.2, demonstrate detailed analyses of actual impacts of the given event on the then-current schedule for completion of the Work. In no event will Contractor be entitled to an extension of time under this <u>Section 5.2</u> to the extent that the performance of the Work for which the extension is sought would have been suspended, delayed or interrupted by the concurrent fault, actions or omissions of Contractor.

6. <u>**LIMITATION OF LIABILITY**</u>. Nothing in this Agreement shall limit Contractor's liability for (a) personal injury or death; (b) property damage; (c) breach of confidentiality; (d) gross negligence, fraud, or willful misconduct; (e) infringement of intellectual property rights; or (f) Contractor's indemnity and warranty obligations. Each Party's liability under this Agreement shall in no event exceed the amount of the Contract Price, exclusive of any recoveries available under insurance policies or indemnities, except for liability that cannot be limited under Section 6(a)-(f).

Attachment 1, Page 5

No provision herein shall limit the Owner's right to recover consequential damage resulting from Contractor's breach or negligence, delay, defective work failure to meet performance obligations. No provision herein shall limit the Owner's right to recover consequential damage resulting from Contractor's breach or negligence, delay, defective work failure to meet performance obligations.

7. <u>TERMINATION AND SUSPENSION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>**Suspension by Owner**</u>. Owner may at any time and from time to time suspend and reinstate the Work without terminating this Agreement, by written notice to Contractor. Any such suspension by Owner shall likewise extend any performance obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>**Termination upon Contractor's Default**</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;7.2.1 If a Contractor Event of Default (as defined below) occurs, then Owner may, without prejudice to any other right or remedy Owner may have, at any time terminate this Agreement, such termination to become effective immediately upon delivery of notice thereof by Owner to Contractor or at such other time Owner may dictate in its sole discretion. For purposes hereof, a "**Contractor Event of Default**" will be deemed to have occurred if: (a) Contractor breaches any of the material terms of this Agreement and fails to cure such breach within thirty (30) days or any such time as agreed by the Owner, after receipt of written notice from Owner specifying the breach; (b) bankruptcy or insolvency proceedings are initiated against the Contractor, makes a general assignment for the benefit of its creditors, has a trustee or receiver appointed for its property, or files a petition to take advantage of any debtor's act; (c) Contractor's failure to timely pay its subcontractors and suppliers engaged for the Project; (d) the Contractor has reached the maximum cap for Delay Liquidated Damages or Shortfall Liquidated Damages specified under this Agreement; (e) The Contractor is found to have engaged in any corrupt, fraudulent, collusive, coercive, or obstructive practice in connection with this Agreement or (d) when it becomes reasonably apparent based on objective evidence that Contractor will not be able to complete the Project or the Work as per Attachment 2 due to Contractor's material breaches of this Agreement, and Contractor has failed to provide a reasonable remediation plan within seven (7) days of written notice from Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.2 In the event of any termination pursuant to <u>Section 7.2.1</u>, Owner may, at its option, complete the terminated Work by whatever method Owner may deem expedient and, to the extent of documented costs incurred by the Owner in completing such Work, Contractor shall pay to Owner within forty-five (45) days after Contractor's receipt of a detailed invoice with supporting documentation for the same, provided that Contractor shall have the right to dispute any such charges in good faith. Owner's rights and Contractor's obligations under this <u>Section 7.2.2</u> shall be in addition to any other remedies that Owner may have against Contractor under law or in equity and shall survive termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>**Surviving Obligations**</u>. Termination of this Agreement (a) shall not relieve the Parties of any obligation hereunder which expressly or by implication survives such termination and (b) subject to any provision of this Agreement expressly limiting the liability of either Party, shall not relieve either Party of any obligations or liabilities for loss or damage to the other Party arising out of or caused by acts or omissions of such Party prior to the effectiveness of such termination.

Attachment 1, Page 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 **Termination for Convenience**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.1 Owner may terminate this Agreement, in whole or in part, for its convenience by providing at least thirty (30) days' prior written notice to Contractor, except in cases of Contractor's material breach or safety violations where immediate termination may be warranted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.2 Upon receipt of such notice, Contractor shall immediately cease performance, protect and preserve all Work, materials, and equipment, and take such actions as Owner may direct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.3 Owner shall pay Contractor the reasonable value of Work properly performed and accepted as of the termination date, less all previous payments and any damages, offsets, or costs incurred by Owner. No payment shall be made for lost profits, unperformed Work, or anticipated overhead.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.4 All materials, designs, and partially completed Work for which Owner has made payment shall vest in and become the property of Owner upon termination. Owner shall have all rights to use any designs or intellectual property developed specifically for this Project and necessary to complete the Work.

Owner shall pay to the Contractor for all the verified value of Work properly executed and accepted, as of the date of effective termination date under this clause, after deducting all prior payments and shall not be liable for loss of profit, consequential damages or unperformed work.

8. **<u>Liquidated Damages</u>.** The Parties further irrevocably agree that the Contractor shall pay following liquidated damages:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1. if the Contractor fails to comply with the Project schedule provided in Attachment 2 or commencement of Work as provided in clause II above, then the Contractor shall pay delay liquidated damages at the rate of one percent (1%) of the total Contract Price for each full week or part of delay caused by Contractor, subject to a cap of ten percent (10%) of the total Contract Price ("Delay Liquidated Damages").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2. In the event the Work for which Contractor has used procured and used machinery and material on its own fails to achieve the agreed Key Performance Indicators ("KPIs") as set forth in Attachment 4 , the Contractor shall be liable to pay the Owner liquidated damages at the rate of one percent (1%) of the total Contract Price for each percentage point of shortfall against the agreed KPIs, subject to a cap of ten percent (10%) of the total Contract Price ("Shortfall Liquidated Damages").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.3 The Parties agree that it would be impractical or extremely difficult to determine the actual damages resulting from any delay in completion of Work as per Project schedule -and that the Delay Liquidated Damages and Shortfall Liquidated Damages (collectively "**Liquidated Damages**") represent a reasonable effort by the Parties to estimate a fair compensation for such damages, and these damages are a genuine pre-estimate of losses likely to be suffered by the Owner and not a penalty.

Liquidated Damages shall become due at the end of each week of delay and may be deducted directly from any amounts payable to the Contractor.

Attachment 1, Page 7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.4 The Contractor further irrevocably agrees that the Liquidated Damages provided herein shall be payable after written notice and a reasonable opportunity to cure any KPI shortfall within maximum within thirty (30) days, as such damages are a reasonable pre-estimate of actual loss and do not constitute a penalty under Texas law without requiring any proof of actual loss from the Owner. The Contractor shall be liable to the Owner as debt for such amounts (as grossed up), which may be recovered by:

● Deducting from payments due to the Contractor under this Agreement or under any other agreement with the Contractor and/or its affiliates;

● Issuing invoices for payment; or

● Drawing upon available Surety Bond and Performance Security.

Payment of such Liquidated Damages shall not relieve Contractor from completing its remaining obligations under this Agreement. Any other breaches or defaults not specifically covered by the Liquidated Damages provisions in Sections 8.1.1 and 8.1.2, Owner retains its rights and remedies available under this Agreement and applicable law, provided that Owner may not recover duplicative damages for the same event under multiple theories of liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 **<u>Cumulative Liquidated Damages</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;**8.2.1** The Delay Liquidated Damages and Shortfall Liquidated Damages specified herein shall be cumulative and independent, and payment of one shall not preclude recovery of the 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;**8.2.2** Payment of Liquidated Damages shall not limit Owner's right to recover actual damages resulting from Contractor's breach, default, or negligence.

9. <u>Site Acceptance Test (SAT)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Following the completion of Work the Contractor shall perform commissioning and performance tests in accordance with the acceptance criteria set forth in Attachment 4, to the Owner's satisfaction, in strict accordance with the technical specifications provided in Attachment 4 along with approved design and design & construction permit for the Work. Successful completion of SAT in accordance with the acceptance criteria set forth in Attachment 4 is a condition precedent to issuance of the acceptance certificate by Owner for the Work ("**Certificate of Acceptance**"). Owner shall not unreasonably withhold, condition, or delay issuance of the Certificate of Acceptance if the Work meets such acceptance criteria. SAT and training shall not apply to Owner provided equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.2 If the Work fails to meet SAT criteria, the Owner may instruct the Contractor to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Correct or replace any non-conforming Work at no additional cost; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Re-perform the SAT(s) following such corrective actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.3 If the Contractor fails to complete construction, installation, testing and commissioning, or corrective actions as per this Agreement after receiving written notice and a reasonable opportunity to cure (not less than fifteen (15) days), the Owner may engage third parties to complete such scope. All documented costs and expenses directly attributable to such completion shall be payable by the Contractor within thirty (30) days of receipt of itemized invoices with supporting documentation.

Attachment 1, Page 8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.4 Upon successful SAT, or if the Owner elects not to conduct a SAT, the Owner shall endeavor to issue within fifteen (15) business days of completion of installation, testing and SAT and training issue the Certificate of Acceptance. In an event the Owner elects not to conduct a SAT, such act of Owner shall not relieve the Contractor from any obligations under Defect Liability Period provided under Section 10 below or any other obligation to ensure performance of such Product as per Technical Specifications.

10. Defect Liability Period

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 The "Defect Liability Period" or "DLP" shall mean a continuous period of twelve (12) months commencing from the date of issuance of the Certificate of Acceptance by the Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Upon occurrence or any defect, deficiency, shortcoming, underperformance, malfunction, or damage in the Product/Work or any part thereof that arises during the DLP, the Owner at its sole discretion can direct the Contractor at Contractor's sole cost, risk, and expense to make good, repair, reperform, replace, or rectify, the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 The Contractor shall respond to any notice by Owner regarding occurrence of any defect within twenty-four (24) hours of receipt and commence rectification immediately, any failure of Contractor to respond within such timeline shall be deemed as acceptance of such defect by the Contractor and shall entitle Owner to proceed with remedial action at Contractor's expense. All rectification shall be completed within a reasonable period, not exceeding fifteen (15) days, unless otherwise directed by the Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.4 If the Contractor fails to remedy the defect within the stipulated time, the Owner may, without prejudice to any other rights, carry out such rectification either by itself or through any third party, at the sole cost and risk of the Contractor. All such costs, including administrative overheads, shall be recoverable from the Contractor or from any amounts due or payable under this Agreement, or by making a claim against the Performance Security, provided that the Owner has first provided written notice to the Contractor of the defect and the estimated costs to be incurred, the Contractor has been given a reasonable opportunity to cure the defect or dispute the necessity of Owner's self-help remediation, and Owner has obtained Contractor's prior written consent or a final determination through the dispute resolution procedures that Contractor's failure to remedy was unreasonable. The Contractor shall ensure continued availability of spare parts, consumables, and technical support for the Product(s) during and beyond the DLP.

10.5. Owner's Rights and Remedies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.1 The Owner's good faith determination regarding the existence, cause, and nature of any defect shall be binding on the Contractor, provided that Contractor may dispute such determination through the dispute resolution procedures set forth in this Agreement if Contractor reasonably believes the determination is incorrect.

Attachment 1, Page 9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.2 The Owner shall not be obliged to provide immediate access or facilities to the Contractor if the defect has caused an imminent threat to life or substantial property damage requiring emergency response or regulatory risk; in such cases, the Owner may proceed with rectification independently. at the sole cost of the Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.3 The Owner may withhold payment proportionate to the estimated cost of unremedied defects or draw upon the Performance Security if the Contractor fails to perform its material obligations during the DLP after written notice and reasonable opportunity to cure. In the event the Performance Security is drawn by the Owner, then the Contractor shall replenish the Performance Security within ten (10) business days to the extent of the draw. Without prejudice to any other rights Owner may have against Contractor, failure of Contractor to replenish the Performance Security within such timeframe shall entitle Owner to withhold from future payments (but not payments already earned and due) an amount equal to the unreplenished portion until such time as the Performance Security is restored, provided that Owner provides written notice of such withholding and the specific amount to be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 The Contractor shall remain fully responsible for obtaining and maintaining all necessary statutory approvals, permits, and clearances from relevant authorities, and any loss of validity or non-compliance discovered during the DLP shall be deemed a defect to be rectified by the Contractor at its sole cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. Survival of Contractor's Obligations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Contractor's obligations under this Section shall
survive the expiration or termination of this Agreement to the extent necessary for rectifying defects notified before such expiration
or termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations under this clause shall be in addition to
and not in derogation of any warranties or guarantees available under law or under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing contained herein shall limit or prejudice the Owner's right to claim compensation for direct
and consequential losses or damages resulting from defects caused by Contractor's breach of warranty, subject to the limitations of liability
set forth elsewhere in this Agreement.

11. Force Majeure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. If the Contractor believes that an event constituting a Force Majeure Event has occurred that has or will prevent or delay the performance of its obligations under this Agreement, then it shall give the written notice within ten (10) business days describing the alleged Force Majeure Event (the "Force Majeure Notice") the Owner. The Force Majeure Notice shall be given to the Owner as per clause III (*Notices*) above.

Attachment 1, Page 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.2 Within fifteen (15) Business Days after delivery of the Force Majeure Notice, the Contractor shall, to the extent known or ascertainable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) specify the length of the delay occasioned by, and the additional
costs incurred by reason of, such Force Majeure Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) describe the particulars of the cause and nature of the Force Majeure Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provide evidence of the occurrence of such Force Majeure Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) provide its plans for the remedy of the Force Majeure Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.3 At all times after the Force Majeure Notice, the Contractor shall continue to furnish bi- weekly reports with respect thereto during the continuation of the Force Majeure Event notifying the Owner of (i) the steps which have been taken to remedy the Force Majeure Event and (ii) the expected remaining duration of its inability to perform hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.4 Definition of Force Majeure Event

As used herein, "Force Majeure Event" means acts of God, natural disasters (wildfires, earthquakes, tornadoes, lightning, floods, hurricanes), epidemics, pandemics, quarantine restrictions, civil disturbances, riots, insurrection, war, military invasion, acts of terrorism, government actions, embargoes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.6 Exclusions from Force Majeure

For clarity, Force Majeure Events shall not include, and no relief shall be granted for, any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shortages of labor, materials, or equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Contractor's failure to secure financing, credit, or working capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) increases in the cost of raw materials, labor, transport, duties, tariffs, or taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any inability or failure to pay amounts due under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any delay or failure attributable to the gross negligence, willful misconduct, or breach of contract by Contractor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) delays or defaults of any of Contractor's sub-contractors, agents or third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.7 No relief shall be granted unless the Force Majeure Event prevents performance of critical path activities and Contractor demonstrates that the event could not reasonably have been avoided or mitigated by prudent industry practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 Contractor shall use commercially reasonable efforts to overcome the effects of the Force Majeure Event, including procuring alternate suppliers, labor, or transportation, and shall resume performance immediately upon cessation of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 Delays by subcontractors, suppliers, or transportation providers shall not constitute Force Majeure unless the same arises directly from a qualifying event affecting Contractor.

Attachment 1, Page 11

12. <u>NON-DISCLOSURE COVENANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <u>**Confidential Information**</u>. The "**Confidential Information**" of a Party means non-public, proprietary, confidential and competitively sensitive data, documents, materials, and other information relating to such Party or such Party's business, whether or not marked or designated as "confidential" relating to the disclosing Party or its affiliates, in each case, that are directly or indirectly disclosed by the disclosing Party or its representatives to the receiving Party or its representatives in connection with the transactions contemplated under this Agreement. Confidential Information shall not include such information: (a) has been or becomes generally available to the public other than as a result of a disclosure by the receiving Party in violation of this Article; (b) was already known by the receiving Party on a non-confidential basis prior to its disclosure hereunder; (c) has been or becomes available to the receiving Party on a non- confidential basis when the source of such availability is entitled, to the best of the receiving Party's knowledge, to make such disclosure to the receiving Party; or (d) is or was developed by or for the receiving Party independently of and without reference to information disclosed to the receiving Party hereunder. Without limiting the foregoing, Owner's Confidential Information shall include without limitation this Agreement and all information that Contractor comes to learn about the Project, the Project Site and business during the course of performing the Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <u>**Non-Disclosure of Confidential Information**</u>. Each Party agrees that, except as provided in this <u>Section 12.2</u>, it will not, without the express prior written consent of the other Party, disclose to any other person or entity the Confidential Information of the other Party. A receiving Party may disclose the disclosing Party's Confidential Information to those of the receiving Party's affiliates, associates, vendors, subcontractors, employees, agents, advisors and consultants, but only to the extent that such personnel reasonably need to know such information in connection with such Party's performance of its obligations under this Agreement (or, in Owner's case, as necessary in connection with the operation or maintenance of its facility). The receiving Party will be responsible for any disclosures by such parties that are in violation of the restrictions set forth in this <u>Section 12.2</u>. Further, either Party may disclose such information as must be disclosed pursuant to requirements of law or valid legal process; *provided* that the Party making such disclosure shall promptly notify the disclosing Party in advance of any such disclosure and reasonably cooperate (at the disclosing Party's expense) in attempt to maintain the confidentiality of the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 <u>**Term of Non-Disclosure Covenant**</u>. Notwithstanding any expiration or earlier termination of this Agreement, a receiving Party's obligations under this <u>Article 12</u> will survive the expiration or termination of this Agreement for five(5) year.

All drawings, designs, calculations, reports, models, software, permits and other data generated by Contractor in connection with the Work shall be and remain the sole and exclusive property of Owner. Contractor shall not use such information for any purpose other than performance of the Work.

13. <u>STATUS OF THE PARTIES AND CONTRACTOR'S PERSONNEL</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 Contractor is an independent contractor, and neither Contractor nor anyone employed or retained by Contractor shall be deemed for any purpose to be the employee, agent, servant, or representative of Owner in the performance of the Work hereunder. Owner shall have no direction or control of Contractor or Contractor's employees and agents, except as to the results to be obtained with respect to the Work. Owner has the right to issue instructions and directions on all matters concerning the results of the Work and Contractor shall comply with such instructions and directions to the extent they are consistent with this Agreement, applicable laws, and safe construction practices. Contractor shall promptly notify Owner if Contractor believes such instructions and directions conflict with or violate the terms of this Agreement, applicable laws, or create unsafe conditions, and shall not be required to comply with such instructions until the conflict is resolved. Any instructions that constitute changes to the scope of Work shall be processed as Change Orders in accordance with the terms of this Agreement.

Attachment 1, Page 12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <u>**CERTAIN PRINCIPLES OF INTERPRETATION**</u>. Interpretation of this Agreement shall be governed by the following rules of construction: (a) unless otherwise specified, words defined in the singular shall have the corresponding meaning in the plural and vice versa, and words importing one gender shall include the other gender; (b) the words "including", "includes" and "include" and words of similar import shall be deemed to be followed in each instance by the words "without limitation" unless otherwise specified; (c) references to articles, sections (or subdivisions of sections), appendices, exhibits or schedules shall be to articles, sections (or subdivisions of sections), appendices, exhibits or schedules of or to this Agreement unless otherwise specified; (d) the headings contained in this Agreement shall be for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (e) the terms "hereof", "herein", "hereby", "hereto" and derivative or similar words refer to this entire Agreement as a whole, including the appendices, exhibits and schedules hereto, and not to any particular section or clause, unless expressly so limited; (f) references to "$" shall mean U.S. Dollars; (g) where provision is made for agreement or the giving of notice, approval or consent by any Party, such agreement, notice, approval or consent must be in writing unless otherwise specified; and (h) the Parties have each participated in the negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favouring or burdening any Party by virtue of the authorship of any of the provisions herein.

14. INDEMNITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 Contractor shall defend, indemnify, and hold harmless Owner, its affiliates, officers, directors, employees, and agents ("Owner Indemnitees") from and against any and all claims, demands, suits, losses, damages, liabilities, penalties, fines, costs, and expenses (including attorneys' fees and expert costs) arising out of or in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach of this Agreement by Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) personal injury, death, or property damage arising from Contractor's acts or omissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) failure to comply with Applicable Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the negligence, recklessness, or willful misconduct of Contractor,
its subcontractors, or suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 This indemnity obligation shall survive termination or expiration of this Agreement and shall not be limited by the insurance coverage maintained by Contractor.

Attachment 1, Page 13

15. <u>MISCELLANEOUS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 <u>**Documents**</u>. All documents including drawings and specifications prepared or furnished by Contractor, its employees, subcontractors or agents pursuant to this Agreement shall be the property of Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 <u>**Governing Law; Dispute Resolution**</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without giving effect to any conflict of law principles that would require the application of the laws of another jurisdiction. The Parties shall endeavor to resolve all disputes arising out of or in connection with this Agreement through good-faith negotiations. If any dispute is not resolved within thirty (30) days, either Party may submit the dispute to final and binding arbitration administered by the American Arbitration Association ("AAA") under its Construction Industry Arbitration Rules. The arbitration shall take place in Houston, Texas before a panel of three arbitrators experienced in

U.S. construction law. The arbitral award shall be final and binding, and judgment on the award may be entered in any court having jurisdiction. The Parties waive any right to trial by jury or to appeal on the merits of the arbitral decision except as permitted under the Federal Arbitration Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 <u>**Assignment**</u>. A Party shall not assign or transfer, in whole or in part, any of its rights or obligations under this Agreement without the prior written consent of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5 <u>**No Partnership**</u>. Contractor and Owner are each independent of the other and nothing in this Agreement is intended, or shall be deemed, to create a partnership, association, trust, franchise, employment relationship or joint venture of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6 <u>**Waiver**</u>. No Party shall be deemed to have waived any provision of this Agreement unless such waiver shall be in writing and signed by an authorized representative of such Party. Electronic mail shall not be considered a "writing" for purposes of this Section.

**<u>REMAINING PAGE INTENTIONALLY LEFT BLANK</u>**

Attachment 1, Page 14

**ATTACHMENT 2**

**WORK SCHEDULE**

**(attached separately)**

Attachment 2, Page 1

**ATTACHMENT 3**

**PAYMENT TERMS**

All payments shall be milestone-based, tied to measurable progress of the Work, and subject to verification and written certification by the Owner or Owner's authorized representative and paid within fifteen (15) days of such verification and written certification. As a condition precedent to advance or mobilization payment equivalent to twenty percent (20%) of Contract Price, Contractor shall furnish to Owner an unconditional, irrevocable construction payment bond from a surety company validly existing under the provisions of applicable laws and having rating by S&P or Fitch or equivalent as acceptable to Owner , equal to twenty percent (20%) of the Contract Price ("Surety Bond").

Contractor shall, prior to commencement of Work, furnish a separate performance security in the form of an unconditional & irrevocable construction payment bond issued by a surety company from a surety company validly existing under the provisions of applicable laws and having rating by S&P or Fitch or equivalent as acceptable to Owner, equivalent to ten percent (10%) of the Contract Price ("Performance Security"), valid until ninety (90) days after the expiry of the Defect Liability Period.

Owner shall have the right to deduct and retain ten percent (10%) of each invoice as retention money. Five percent (5%) of the retention money to be released upon successful commissioning of the Work and remaining five percent (5%) shall be released 90 days after successful SAT of the Work.

All payments are subject to Owner's right to set-off against any amounts due from Contractor under this Agreement or any other agreement between the Parties or their affiliates.

Surety company issuing Surety Bond process and pay the claim to the Owner as per applicable laws.

Attachment 3, Page 1

**Attachment 4 - Technical Scope Redacted**

Detailed technical scope, equipment lists, system descriptions, and execution-specific project content on this attachment page have been withheld.

This page has been replaced in the redacted version to prevent disclosure of non-public project technical details.

*Redacted version prepared for external regulatory sharing*

**Attachment 4 - Scope Modifications Redacted**

Detailed room-by-room scope changes, engineering/design support content, and technical coordination details on this attachment page have been withheld.

This page has been replaced in the redacted version to prevent disclosure of non-public project technical details.

*Redacted version prepared for external regulatory sharing*

**Attachment 4 - Drawing / Layout Redacted**

Project layout, drawing, plan, and other technical visual content on this attachment page have been withheld.

This page has been replaced in the redacted version to prevent disclosure of non-public project technical details.

*Redacted version prepared for external regulatory sharing*

## Exhibit 23.1

**Exhibit 23.1**

**<u>Independent Registered Public Accounting Firm's Consent</u>**

We consent to the use in this Amendment No. 2 to the Registration Statement on Form S-1of our report dated March 16, 2026 relating to the consolidated financial statements of BW Industrial Holdings Inc. appearing in this Amendment No. 2 to the Registration Statement. We also consent to the reference to us under the heading "Experts" in such Amendment No. 2 to the Registration Statement.

/s/ Marcum Asia CPAs LLP

New York

March 16, 2026

## Exhibit 99.5

**Exhibit 99.5**

**AUDIT COMMITTEE CHARTER**

**OF**

**BW INDUSTRIAL HOLDINGS INC.**

This Audit Committee Charter (the "<u>Charter</u>") was adopted by the Board of Directors (the "<u>Board</u>") of BW Industrial Holdings Inc, a Delaware corporation (the "<u>Company</u>"), on [ ], and shall become effective upon the effectiveness of the Company's registration statement on Form S-1 relating to the Company's initial public offering.

**I.** **Purpose** 

The purpose of the Audit Committee (the "<u>Committee</u>") is to oversee the accounting and financial reporting processes of the Company and the audits of the financial statements of the Company. The Committee assists the Board with its oversight responsibilities regarding: (i) the integrity of the Company's financial statements; (ii) the Company's compliance with legal and regulatory requirements; (iii) the independent auditor's qualifications and independence; and (iv) the performance of the Company's internal controls over financial reporting and independent auditor. The Committee shall prepare the report required by the rules of the Securities and Exchange Commission (the "<u>SEC</u>") to be included in the Company's annual report on Form 10-K.

In addition to the powers and responsibilities expressly delegated to the Committee in this Charter, the Committee may exercise any other powers and carry out any other responsibilities delegated to it by the Board from time to time consistent with the Company's Articles of Incorporation, as amended from time to time (the "<u>Articles</u>"). The powers and responsibilities delegated by the Board to the Committee in this Charter or otherwise shall be exercised and carried out by the Committee as it deems appropriate without requirement of Board approval, and any decision made by the Committee (including any decision to exercise or refrain from exercising any of the powers delegated to the Committee hereunder) shall be at the Committee's sole discretion. While acting within the scope of the powers and responsibilities delegated to it, the Committee shall have and may exercise all the powers and authority of the Board. To the fullest extent permitted by law, the Committee shall have the power to determine which matters are within the scope of the powers and responsibilities delegated to it.

Notwithstanding the foregoing, the Committee's responsibilities are limited to oversight. Although the Committee has the responsibilities set forth in this Charter, it is not the responsibility of the Committee to plan or conduct audits or to determine that the Company's financial statements and disclosure are complete and accurate and are in accordance with generally accepted accounting principles and applicable laws, rules and regulations. These are the responsibilities of the Company's management ("<u>Management</u>") and the independent auditor.

Furthermore, auditing literature, particularly Statement of Accounting Standards No. 71, defines the term "review" to include a particular set of required procedures to be undertaken by independent auditors. The members of the Committee are not independent auditors, and the term "review" as used in this Charter is not intended to have that meaning and should not be interpreted to suggest that the Committee members can or should follow the procedures required of auditors performing reviews of financial statements.

**II.** **Membership** 

The Committee shall consist of at least three members of the Board, as determined by the Board. Each Committee member shall be financially literate as determined by the Board in its business judgment or must become financially literate within a reasonable period of time after his or her appointment to the Committee. Members of the Committee must (i) not have participated in the preparation of the financial statements of the Company or any current subsidiary of the Company at any time during the past three years; and (ii) be able to read and understand fundamental financial statements, including a company's balance sheet, income statement, and cash flow statement. Members of the Committee are not required to be engaged in the accounting and auditing profession and, consequently, some members may not be expert in financial matters, or in matters involving auditing or accounting. However, at least one member of the Committee must have accounting or related financial management expertise as determined by the Board in its business judgment. In addition, at least one member of the Committee shall be an "audit committee financial expert" within the definition adopted by the SEC or shall possess financial sophistication within the meaning of the NYSE American Company Guide, or the Company shall disclose in its annual report on Form 10-K required pursuant to the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), the reasons why at least one member of the Committee is not an "audit committee financial expert."

At least one member of the Committee shall be independent within the meaning of Section 803(A)(2) of the NYSE American Company Guide and will satisfy the independence requirements of Rule 10A-3(b)(1) under the Exchange Act immediately prior to the effectiveness of the Company's registration statement on Form S-1 relating to the Company's initial public offering (the "<u>Effective Time</u>"). At least a majority of the members of the Committee shall be independent within the meaning of Section 803(A)(2) of the NYSE American Company Guide and will satisfy the independence requirements of Rule 10A-3(b)(1) under the Exchange Act within the 90-day period of the Effective Time. All Committee members must satisfy the independence requirements of Section 803(A)(2) of the NYSE American Company Guide and Rule 10A-3(b)(1) under the Exchange Act beginning from the first anniversary of the Effective Time. No Committee member may simultaneously serve on the audit committee of more than two other public companies, unless the Board determines that such simultaneous service would not impair the ability of such member to effectively serve on the Committee and such determination is disclosed in the Company's annual report on Form 10-K.

The members of the Committee, including the chairperson (the "<u>Chair</u>") of the Committee, shall be appointed by the Board. Committee members may be removed from the Committee, with or without cause, by the Board.

**III.** **Meetings and Procedures** 

The Chair (or in his or her absence, a member designated by the Chair) shall preside at each meeting of the Committee and set the agendas for Committee meetings. The Committee shall have the authority to establish its own rules and procedures for notice and conduct of its meetings so long as they are not inconsistent with any provisions of the Articles that are applicable to the Committee.

The Committee shall meet at least once during each fiscal quarter and more frequently as the Committee deems desirable. Except as required by law, all matters shall be approved by a simple majority of all the Committee members.

The Committee shall meet separately and periodically with Management, with the internal auditor, and with the independent auditor. Any meeting of the Committee may be conducted in person or via telephone conference or similar communications equipment where every meeting participant can hear each other.

All non-Management directors that are not members of the Committee may attend and observe meetings of the Committee, but shall not participate in any discussion or deliberation unless invited to do so by the Committee, and in any event shall not be entitled to vote. The Committee may, at its discretion, include in its meetings members of the Company's Management, representatives of the independent auditor, the internal auditor, and any other financial personnel employed or retained by the Company or any other persons whose presence the Committee believes to be necessary or appropriate. Notwithstanding the foregoing, the Committee may also exclude from its meetings any persons it deems appropriate, including, but not limited to, any non-Management director that is not a member of the Committee.

The Committee may retain any independent counsel, experts, or advisors (accounting, financial, or otherwise) that the Committee believes to be necessary or appropriate. The Committee may also utilize the services of the Company's regular legal counsel or other advisors to the Company. The Company shall provide for appropriate funding, as determined by the Committee, for payment of compensation to the independent auditor for the purpose of rendering or issuing an audit report or performing other audit, review, or attestation services, for payment of compensation to any counsel, experts, or advisors employed by the Committee and for ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties.

The Committee may conduct or authorize investigations into any matters within the scope of the powers and responsibilities delegated to the Committee.

**IV.** **Powers and Responsibilities** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *Appointment and Oversight*. The Committee shall be directly responsible for the appointment, compensation, retention, removal and oversight of the work of the independent auditor (including resolution of any disagreements between Management and the independent auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related work or performing other audit, review, or attestation services for the Company, and the independent auditor shall report directly to the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *Pre-Approval of Services*. Before the independent auditor is engaged by the Company or its subsidiaries to render audit or non-audit services, the Committee shall pre-approve the engagement. Committee pre-approval of audit and non-audit services will not be required if the engagement for the services is entered into pursuant to pre-approval policies and procedures established by the Committee regarding the Company's engagement of the independent auditor, provided that the policies and procedures are detailed as to the particular service, the Committee is informed of each service provided and such policies and procedures do not include delegation of the Committee's responsibilities under the Exchange Act to the Management. The Committee may delegate to one or more designated members of the Committee the authority to grant pre-approvals, provided that such pre-approvals are presented to the Committee at a subsequent meeting. If the Committee elects to establish pre-approval policies and procedures regarding non-audit services, the Committee must be informed of each non-audit service provided by the independent auditor. Committee pre-approval of non-audit services (other than review and attestation services) also will not be required if such services fall within available exceptions established by the SEC**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *Independence of Independent Auditor.* The Committee shall, at least annually, review the independence and quality control procedures of the independent auditor and the experience and qualifications of the independent auditor's senior personnel that are providing audit services to the Company*.* In conducting its review:

&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 Committee shall obtain and review a report prepared by the independent auditor describing (a) the auditing firm's internal quality-control procedures and (b) any material issues raised by the most recent internal quality-control review, or peer review, of the auditing firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the auditing firm, and any steps taken to deal with any such issues. The Committee shall review and discuss, as appropriate, any reports issued by the PCAOB with respect to the independent auditor, including inspection reports and any related findings;

&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 Committee shall ensure that the independent auditor prepare and deliver, at least annually, a written statement delineating all relationships between the independent auditor and the Company. The Committee shall actively engage in a dialogue with the independent auditor with respect to any disclosed relationships or services that, in the view of the Committee, may impact the objectivity and independence of the independent auditor. If the Committee determines that further inquiry is advisable, the Committee shall take appropriate action in response to the independent auditor's report to satisfy itself of the auditor's independence;

&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 Committee shall confirm with the independent auditor that the independent auditor is in compliance with the partner rotation requirements established by the SEC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Committee shall, if applicable, consider whether the independent auditor's provision of any permitted information technology service or other non-audit service to the Company is compatible with maintaining the independence of the independent auditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *Meetings with Management, the Independent Auditor and the Internal Auditor.*

&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 Committee shall meet with Management, the independent auditor, and the internal auditor in connection with each annual audit to discuss the scope of the audit, the procedures to be followed, and the staffing of the audit.

&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 Committee shall review and discuss with Management and the independent auditor any material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the Company with unconsolidated entities of which the Committee is made aware that do not appear on the financial statements of the Company and that may have a material current or future effect on the Company's financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenues or expenses.

&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 Committee shall review and discuss the annual audited financial statements with Management and the independent auditor, including the Company's disclosures under "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Company's annual report on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *Separate Meetings with the Independent Auditor.*

&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 Committee shall review with the independent auditor any problems or difficulties the independent auditor may have encountered during the course of the audit work, including any restrictions on the scope of activities or access to required information or any significant disagreements with Management and Management's responses to such matters.

&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 Committee shall discuss with the independent auditor the report that such auditor is required to make to the Committee regarding: (a) all critical accounting policies and practices used; (b) all alternative treatments within U.S. GAAP for policies and practices related to material items that have been discussed among Management and the independent auditor, including the ramifications of the use of such alternative disclosures and treatments, and the treatment preferred by the independent auditor; and (c) all other material written communications between the independent auditor and Management, such as any Management letter, Management representation letter, reports on observations and recommendations on internal controls, independent auditor's engagement letter, independent auditor's independence letter, schedule of unadjusted audit differences and a listing of adjustments and reclassifications not recorded, 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;(iii) The Committee shall discuss with the independent auditor the matters required to be discussed by applicable PCAOB auditing standards, including AS 1301, "Communication with Audit Committees," as then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. *Recommendation to Include Financial Statements in Annual Report*. The Committee shall, based on the review and discussions in paragraphs 4(iii) and 5(iii) above, and based on the disclosures received from the independent auditor regarding its independence and discussions with the auditor regarding such independence pursuant to subparagraph 3(ii) above, determine whether to recommend to the Board that the audited financial statements be included in the Company's annual report on Form 10-K for the fiscal year subject to the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Committee shall discuss with Management and the independent auditor the Company's earnings press releases (with particular focus on any "pro forma" or "adjusted" non-GAAP information), as well as financial information and earnings guidance provided to analysts and rating agencies. The Committee's discussion in this regard may be general in nature (i.e., discussion of the types of information to be disclosed and the type of presentation to be made) and need not take place in advance of each earnings release or each instance in which the Company may provide earnings guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Committee shall review all related party transactions by the Company (including any of its subsidiaries and consolidated affiliates) on an ongoing basis and all such transactions must be approved by the Committee in advance. All related party transactions should be disclosed in accordance with applicable legal and regulatory requirements. The Committee recognizes that there are situations where the Company may have to obtain products or services of a nature, quantity or quality, or on other terms, that are not readily available from alternative sources or when the Company provides products or services to related persons on an arm's length basis on terms comparable to those provided to unrelated third 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;a. The Committee shall consider all of the relevant facts and circumstances available to the Committee, including (if applicable), but not limited to:

● The benefits to the Company;

● The impact on a director's independence in the event the related person is a director, an immediate family member of a director or an entity in which a director is a principal, member, partner, stockholder or executive officer;

● The availability of other sources for comparable products or services;

● The terms of the transaction; and

● The terms available to unrelated third parties and employees 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. No member of the Committee shall participate in any review, consideration or approval of any related party transactions with respect to which such member or any of his or her immediate family members is the related person. The Board shall approve only those related party transactions that are in, or are not inconsistent with, the best interests of the Company and its stockholders, as the Committee determines in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Committee shall discuss with Management and the independent auditor any correspondence from or with regulators or governmental agencies, any employee complaints or any published reports that raise material issues regarding the Company's financial statements, financial reporting process, accounting policies, or internal controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Committee shall discuss with the Company's internal or outside counsel any legal matters brought to the Committee's attention that could reasonably be expected to have a material impact on the Company's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The Committee shall review with management and, as appropriate, the Company's counsel, the operation of the Company and its subsidiaries and affiliated entities, including the Company's policies and procedures for ensuring compliance and for the review and disclosure of related party transactions..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The Committee shall discuss with Management the Company's policies with respect to risk assessment and risk management. The Committee shall discuss with Management the Company's significant financial risk exposures and the actions Management has taken to limit, monitor or control such exposures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. The Committee shall monitor the compliance with the Company's code of business conduct and ethics, including reviewing the adequacy and effectiveness of the Company's procedures to ensure proper compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Committee shall review the adequacy and effectiveness of the Company's accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. The Committee shall review and concur with Management on the need for an internal audit department and on the appointment, replacement, reassignment, or dismissal of an internal audit department senior manager or director. The Committee shall also review any internal reports to Management (or summaries thereof) prepared by the internal audit department, as well as Management's response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. The Committee shall set clear hiring policies for employees or former employees of the Company's independent auditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. The Committee shall establish procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters. The Committee shall also establish procedures for the confidential and anonymous submission by employees regarding questionable accounting or auditing matters. The Committee shall receive periodic reports on such complaints and their resolution and shall review and discuss with management, as appropriate, significant complaints and the actions taken in response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. The Committee shall provide the Company with the report of the Committee with respect to the audited financial statements required by Item 306 of Reg. S-K, for inclusion in each of the Company's annual reports filed on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. The Committee, through its Chair, shall report regularly to, and review with, the Board any issues that arise with respect to the quality or integrity of the Company's financial statements, the Company's compliance with legal or regulatory requirements, the performance and independence of the Company's independent auditor, the performance of the Company's internal controls or any other matter the Committee determines is necessary or advisable to report to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. The Committee shall at least annually perform an evaluation of the performance of the Committee and its members, including a review of the Committee's compliance with this Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. The Committee shall at least annually review and reassess this Charter and submit any recommended changes to the Board for its consideration.

**V.** **Delegation of Duties** 

In fulfilling its responsibilities, the Committee shall be entitled to delegate any or all of its responsibilities to a subcommittee of the Committee to the extent permitted by, or consistent with provisions of, the Articles and applicable laws and regulations and rules of the markets in which the Company's securities then trade.

## Exhibit 99.6

**Exhibit 99.6**

**COMPENSATION COMMITTEE CHARTER** 

**OF**

**BW INDUSTRIAL HOLDINGS INC.**

This Compensation Committee Charter (the "<u>Charter</u>") was adopted by the Board of Directors (the "<u>Board</u>") of BW Industrial Holdings Inc., a Delaware company (the "<u>Company</u>"), on [ ], and shall become effective upon the effectiveness of the Company's registration statement on Form S-1 relating to the Company's initial public offering.

I. Purpose

The purpose of the Compensation Committee (the "<u>Committee</u>") is (i) to assist the Board in discharging the Board's responsibilities relating to compensation of the Company's executives, including reviewing and evaluating and, if necessary, revising the compensation plans, policies, and programs of the Company adopted by management, and (ii) to review and approve the disclosure of executive compensation for inclusion in the Company's annual report on Form 10-K filed with the U.S. Securities and Exchange Commission's (the "<u>SEC</u>") in accordance with applicable rules and regulations. The Committee shall ensure that compensation programs are designed to encourage high performance, promote accountability, and assure that employee interests are aligned with the interests of the Company's stockholders.

In addition to the powers and responsibilities expressly delegated to the Committee in this Charter, the Committee may exercise any other powers and carry out any other responsibilities delegated to it by the Board from time to time consistent with the Company's Articles of Incorporation, as amended from time to time (the "<u>Articles</u>"). The powers and responsibilities delegated by the Board to the Committee in this Charter or otherwise shall be exercised and carried out by the Committee as it deems appropriate without the requirement of Board approval, and any decision made by the Committee (including any decision to exercise or refrain from exercising any of the powers and responsibilities delegated to the Committee hereunder) shall be at the Committee's sole discretion. While acting within the scope of the powers and responsibilities delegated to it, the Committee shall have and may exercise all the powers and authority of the Board. To the fullest extent permitted by law, the Committee shall have the power to determine which matters are within the scope of the powers and responsibilities delegated to it.

II. Membership

The Committee shall be composed of three or more directors, as determined by the Board, none of whom shall be an employee of the Company and each of whom (i) shall satisfy the "independence" requirements of Section 803(A)(2) of the NYSE American Company Guide and Rule 10C-1 under the Securities Exchange Act, (ii) shall be a "non-employee director" within the meaning of Rule 16b3 of the Securities Exchange Act of 1934, as amended, (iii) shall be an "outside director" under the regulations promulgated under Section 162(m) of the Internal Revenue Code of 1986, as amended, and (iv) shall have experience, in the business judgment of the Board, that would be helpful in addressing the matters delegated to the Committee, and shall not accept directly or indirectly any consulting, advisory, or other compensatory fees (the "<u>Compensatory Fees</u>") from the Company or any subsidiary thereof. For the purpose of this paragraph, the Compensatory Fees do not include: (i) fees received as a member of the Committee, the Board, or any other Board committee; or (ii) the receipt of fixed amounts of compensation under a retirement plan (including deferred compensation) for prior service with the Company (provided that such compensation is not contingent in any way on continued service).

In determining whether a director is eligible to serve on the Committee, the Board shall consider all factors specifically relevant to determining whether a director has a relationship to the Company which is material to such director's ability to be independent from management in connection with the duties of a Committee member, including but not limited to, whether the director is affiliated with the Company, any subsidiary of the Company, or any affiliate of a subsidiary of the Company.

At least a majority of the members of the Committee shall satisfy the independence requirements of the NYSE American Company Guide within the 90-day period after the effectiveness of the Company's registration statement on Form S-1 relating to the Company's initial public offering (the "<u>Effective Time</u>"), and all of the members of the Committee shall satisfy the independence requirements of the NYSE American Company Guide beginning from the first anniversary of the Effective Time.

The members of the Committee, including the chairperson of the Committee (the "<u>Chair</u>"), shall be appointed by the Board on the recommendation of the Nomination and Corporate Governance Committee. Committee members may be removed from the Committee, with or without cause, by the Board. If one Committee member ceases to be independent in accordance with the requirements of Rule 10C-1 due to circumstances beyond the member's reasonable control, that person, with notice by the Company to the NYSE American or the applicable national security association, may remain a compensation committee member of the Company until the earlier of its next annual stockholders meeting or one year from the occurrence of the event that caused the member to be no longer independent.

III. Meetings and Procedures

The Chair (or in his or her absence, a member designated by the Chair) shall preside at each meeting of the Committee and set the agendas for Committee meetings. The Committee shall have the authority to establish its own rules and procedures for notice and conduct of its meetings so long as they are not inconsistent with any provisions of the Articles that are applicable to the Committee.

The Committee shall meet on a regularly scheduled basis at least once per year and more frequently as and when the Committee deems necessary or desirable. A meeting of the Committee may be conducted in person or via telephone conference where every meeting participant can hear each other. Except as required by law, all matters shall be approved by a simple majority of all the Committee members.

All non-management directors who are not members of the Committee may attend and observe meetings of the Committee, but shall not participate in any discussion or deliberation unless invited to do so by the Committee, and in any event shall not be entitled to vote. The Committee may, at its discretion, include in its meetings members of the Company's management or any other person whose presence the Committee believes to be necessary or appropriate. Notwithstanding the foregoing, the chief executive officer may not be present during voting or deliberations concerning his or her compensation, and the Committee may exclude from its meetings any persons it deems appropriate, including but not limited to any non-management director who is not a member of the Committee.

The Chair shall report to the Board regarding the activities of the Committee at appropriate times and as otherwise requested by the Chairman of the Board.

IV. Duties and Responsibilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Committee shall, at least annually, review and approve the compensation of the chief executive officer. In determining the long-term incentive component of the chief executive officer's compensation, the Committee shall consider the Company's performance, the value of similar incentive awards to chief executive officers at comparable companies, and the awards given to the chief executive officer in past years. The Committee shall have sole authority to determine the chief executive officer's compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Committee shall, with respect to executive officers other than the chief executive officer, make recommendations to the Board concerning compensation, incentive compensation plans, and equity-based plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Committee shall annually review all annual bonuses, long-term incentive compensation, stock options, employee pension, and welfare benefit plans (including *employee stock purchase plans, long-term incentive plans, management incentive plans and others*), and with respect to each plan shall have responsibility 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;(i) setting performance targets under all annual bonuses and long-term incentive compensation plans as appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) certifying that any and all performance targets used for any performance-based equity compensation plans have been met before payment of any executive bonus or compensation or exercise of any executive award granted under any such plan(s);

&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) approving all amendments to, and terminations of, all compensation plans and any awards under such plans;

&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) granting any awards under any performance-based annual bonus, long-term incentive compensation and equity compensation plans to executive officers or current employees with the potential to become the chief executive officer or an executive officer, including stock options and other equity rights (*e.g.,* restricted stock, stock purchase 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;(v) approving which executive officers are entitled to awards under the Company's stock option plan(s);

&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) repurchasing securities from terminated employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) conducting an annual review of all compensation plans, including reviewing each plan's administrative costs, reviewing current plan features relative to any proposed new features, and assessing the performance of the plan's internal and external administrators if any duties have been delegated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Committee may, in its sole discretion, retain or receive the advice from the Company's regular legal counsel, other independent counsel, compensation and benefits consultants, and other experts or advisors (the "<u>Compensation Advisors</u>") that the Committee believes to be desirable or appropriate. The Committee is not bound by the advice or recommendations of the Compensation Advisors and shall exercise its own judgment in fulfilling its responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Committee shall be directly responsible for the appointment, compensation, and oversight of the work of the Compensation Advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Company shall provide for appropriate funding, as determined by the Committee, for payment of compensation to the Compensation Advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Committee shall select, or receive advice from the Compensation Advisors, other than in-house legal counsel, after taking into consideration the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the provision of other services to the Company by the person that employs the Compensation Advisors;

&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 amount of fees received from the Company by the person that employs the Compensation Advisors, as a percentage of the total revenue of the person that employs such Compensation Advisors;

&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 policies and procedures of the person that employs the Compensation Advisors that are designed to prevent conflicts of interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any business or personal relationship of the Compensation Advisors with a member of the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any stock of the Company owned by the Compensation Advisors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any business or personal relationship of the Compensation Advisor or the person employing the Compensation Advisors with an executive officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Committee shall conduct the independence assessment outlined in this Charter with respect to any Compensation Advisors, other than in-house legal counsel. Nevertheless, the Committee may select, or receive advice from, any Compensation Advisors, including ones that are not independent, after considering factors 7(i) through 7(vi) outlined above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. For purposes of this Charter, the Committee is not required to conduct an independence assessment for any Compensation Advisors that act in a role limited to the following activities for which no public disclosure is required: (a) consulting on any broad-based plan that does not discriminate in scope, terms, or operation, in favor of any executive officers or directors of the Company, and that is available generally to all salaried employees; or (b) providing information that either is not customized for a particular issuer or that is customized based on parameters that are not developed by such Compensation Advisors, and about which such Compensation Advisors does not provide advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Committee shall establish and periodically review policies concerning prerequisite benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The Committee shall periodically review the Company's policies with respect to change of control or "parachute" payments, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The Committee shall manage and review executive officer and director indemnification and insurance matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. The Committee shall manage and review any employee loans in an amount equal to or greater than US$60,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Committee shall prepare and approve the disclosure of executive compensation for inclusion in the Company's annual report on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. The Committee shall on an annual basis evaluate its own performance, including its compliance with this Charter, and provide any written material with respect to such evaluation to the Board, including any recommendations for changes in procedures or policies governing the Committee. The Committee shall conduct such evaluation and review in such manner as it deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. The Committee shall periodically report to the Board its findings and actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. The Committee shall review and reassess this Charter at least annually and submit any recommended changes to the Board for its consideration.

V. Delegation of Duties

In fulfilling its responsibilities, the Committee shall be entitled to delegate any or all of its responsibilities to a subcommittee of the Committee, to the extent consistent with the Articles and applicable law and rules of the markets in which the Company's securities then trade.

## Exhibit 99.7

**Exhibit 99.7**

**NOMINATING AND CORPORATE GOVERNANCE COMMITTEE CHARTER** 

 **OF**

**BW INDUSTRIAL HOLDINGS INC.**

This Nominating and Corporate Governance Committee Charter (the "<u>Charter</u>") was adopted by the Board of Directors (the "<u>Board</u>") of BW Industrial Holdings Inc., a Delaware company (the "<u>Company"</u>), on [ ], and shall become effective upon the effectiveness of the Company's registration statement on Form S-1 relating to the Company's initial public offering.

I. Purpose

The purpose of the Nominating and Corporate Governance Committee (the "<u>Committee</u>") is to assist the Board in discharging the Board's responsibilities regarding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. identification and recommendation of qualified director nominees to be elected at the next annual meeting of stockholders (or special meeting of stockholders at which directors are to be elected);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. identification and recommendation of qualified candidates to fill any vacancies on the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. annual review of the composition of the Board in light of the characteristics of independence, qualification, experience and availability of the Board members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. oversight of the evaluation of the Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. monitoring of compliance with the Company's code of business conduct and ethics, including reviewing the adequacy and effectiveness of the Company's internal rules and procedures to ensure compliance with applicable laws and regulations.

In addition to the powers and responsibilities expressly delegated to the Committee in this Charter, the Committee may exercise any other powers and carry out any other responsibilities delegated to it by the Board from time to time consistent with the Company's Articles of Incorporation, as amended from time to time (the "<u>Articles</u>"). The powers and responsibilities delegated by the Board to the Committee in this Charter or otherwise may be exercised and carried out by the Committee as it deems appropriate without Board approval, and any decision made by the Committee (including any decision to exercise or refrain from exercising any of the powers delegated to the Committee hereunder) shall be at the Committee's sole discretion. While acting within the scope of the powers and responsibilities delegated to it, the Committee has and may exercise all the powers and authority of the Board. To the fullest extent permitted by law, the Committee shall have the power to determine which matters are within the scope of the powers and responsibilities delegated to it.

II. Membership

The Committee shall be comprised of three or more members of the Board, as determined by the Board, each of whom has experience, in the business judgment of the Board, that would be helpful in addressing the matters delegated to the Committee. In addition, at least a majority of the members of the Committee shall satisfy the independence requirements of Section 803(A)(2) of the NYSE American Company Guide within the 90-day period after the effectiveness of the Company's registration statement on Form S-1 relating to the Company's initial public offering (the "<u>Effective Time</u>"), and all of the members of the Committee shall satisfy the independence requirements of Section 803(A)(2) of the NYSE American Company Guide beginning from the first anniversary of the Effective Time.

The members of the Committee, including the chairperson of the Committee (the "<u>Chair</u>"), shall be appointed by the Board. Committee members may be removed from the Committee, with or without cause, by the Board. Any action duly taken by the Committee shall be valid and effective, whether or not the members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership provided herein.

III. Meetings and Procedures

The Chair (or in his or her absence, a member designated by the Chair) shall preside at each meeting of the Committee and set the agendas for Committee meetings. The Committee shall have the authority to establish its own rules and procedures for notice and conduct of its meetings so long as they are not inconsistent with any provisions of the Articles that are applicable to the Committee.

The Committee shall meet on a regularly scheduled basis, at least once per year and more frequently as and when the Committee deems necessary or desirable. A meeting of the Committee may be conducted in person or via telephone conference where every meeting participant can hear each other. Except as required by law, all matters shall be approved by a simple majority of all the Committee members.

All non-management directors who are not members of the Committee may attend and observe meetings of the Committee, but shall not participate in any discussion or deliberation unless invited to do so by the Committee, and in any event shall not be entitled to vote. The Committee may, at its discretion, include in its meetings members of the Company's management, or any other person whose presence the Committee believes to be desirable and appropriate. Notwithstanding the foregoing, the Committee may exclude from its meetings any persons, including any non-management director, who is not a member of the Committee.

The Committee may retain any independent counsel, experts or advisors that the Committee believes to be desirable and appropriate. The Committee may also use the services of the Company's regular legal counsel or other advisors to the Company. The Company shall provide for appropriate funding, as determined by the Committee, for payment of compensation to any such persons employed by the Committee and for ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties. The Committee shall have sole authority to retain and terminate any search firm to be used to identify director candidates, including sole authority to approve such search firm's fees and other retention terms.

The Chair shall report to the Board regarding the activities of the Committee at appropriate times and as otherwise requested by the Chairman of the Board.

**IV.** **Duties and Responsibilities** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (a) At an appropriate time prior to each annual meeting of stockholders at which directors are to be elected or reelected, the Committee shall recommend to the Board for nomination by the Board such candidates as the Committee, in the exercise of its judgment, has found to be well qualified and willing and available to serve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At an appropriate time after a vacancy arises on the Board or a director advises the Board of his or her intention to resign, the Committee shall recommend to the Board for appointment by the Board to fill such vacancy, such candidate as the Committee, in the exercise of its judgment, has found to be well qualified and willing and available to serve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Committee shall annually review the performance of each incumbent director and shall consider the results of such evaluation when determining whether or not to recommend the nomination of such director for an additional term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Committee shall oversee the Board in the Board's annual review of its own performance and the performance of management, and will make appropriate recommendations to improve performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Committee shall consider, prepare and recommend to the Board such policies and procedures with respect to corporate governance matters as may be required or required to be disclosed pursuant to any rules promulgated by the Securities and Exchange Commission or otherwise considered to be desirable and appropriate in the discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Committee shall evaluate its own performance on an annual basis, including its compliance with this Charter, and provide the Board with any recommendations for changes in procedures or policies governing the Committee. The Committee shall conduct such evaluation and review in such manner as it deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Committee shall periodically report to the Board on its findings and actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Committee shall review and reassess this Charter at least annually and submit any recommended changes to the Board for its consideration.

V. Delegation of Duties

In fulfilling its responsibilities, the Committee shall be entitled to delegate any or all of its responsibilities to a subcommittee of the Committee, to the extent consistent with the Articles and applicable law and rules of the markets in which the Company's securities then trade.

## Ex-Filing

?xml version='1.0' encoding='ASCII'? Filing Fee Exhibit

**Ex-Filing Fees**

**CALCULATION OF FILING FEE TABLES**

**S-1**

**BW Industrial Holdings Inc.**

**Table 1: Newly Registered and Carry Forward Securities**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Line Item Type** | **Security Type** | **Security Class Title** | **Notes** | **Fee Calculation<br> Rule** | **Amount Registered** | **Proposed Maximum Offering<br> Price Per Unit** | **Maximum Aggregate Offering Price** | **Fee Rate** | **Amount of Registration Fee** |
| *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* |
| Fees Previously Paid | Equity | Common stock, par value $0.0001 per share | (1) | 457(o) |  | $| $21131250.00 |  | $2918.23 |
| Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | $21131250.00 |  | 2918.23 |
| Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: |  |  | 2918.23 |
| Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: |  |  | 0.00 |
| Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: |  |  | $0.00 |

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**__________________________________________ Offering Note(s)**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended (the "Securities Act"). Pursuant to Rule 416(a) under the Securities Act, there are also being registered an indeterminable number of additional securities as may be issued to prevent dilution resulting from stock splits, stock dividends or similar transactions. Calculated pursuant to Rule 457(o) under the Securities Act based on an estimate of the proposed maximum aggregate offering price of the securities. Includes common stock that may be issued upon exercise of a 45-day option granted to the underwriters in this offering to cover over-allotments, if any.