# EDGAR Filing Document

**Accession Number:** 0001504678
**File Stem:** 0001437749-26-001273
**Filing Date:** 2026-1
**Character Count:** 407691
**Document Hash:** a24e194ba4a10e8fbe551bdea6ec3d55
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-001273.hdr.sgml**: 20260114

**ACCESSION NUMBER**: 0001437749-26-001273

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 82

**CONFORMED PERIOD OF REPORT**: 20251130

**FILED AS OF DATE**: 20260114

**DATE AS OF CHANGE**: 20260114

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Loop Industries, Inc.
- **CENTRAL INDEX KEY:** 0001504678
- **STANDARD INDUSTRIAL CLASSIFICATION:** CHEMICALS & ALLIED PRODUCTS [2800]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 272094706
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38301
- **FILM NUMBER:** 26533627

**BUSINESS ADDRESS:**
- **STREET 1:** 480 FERNAND POITRAS
- **CITY:** TERREBONNE
- **STATE:** A8
- **ZIP:** J6Y 1Y4
- **BUSINESS PHONE:** 450-951-8555

**MAIL ADDRESS:**
- **STREET 1:** 480 FERNAND POITRAS
- **CITY:** TERREBONNE
- **STATE:** A8
- **ZIP:** J6Y 1Y4

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FIRST AMERICAN GROUP INC.
- **DATE OF NAME CHANGE:** 20101101

?xml version='1.0' encoding='ASCII'? loop20251130_10q.htm

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

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**United States** 

**Securities and Exchange Commission**

**Washington, D.C. 20549**

**FORM 10-Q**

---

| | |
|:---|:---|
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|  | For the quarterly period ended November 30, 2025 |

---

or

---

| | |
|:---|:---|
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|  | For the transition period from ___________ to __________ |

---

Commission File No. **001-38301**

![loop20250531_10qimg001.jpg](loop20250531_10qimg001.jpg)

---

| |
|:---|
| **Loop Industries, Inc.** |
| (Exact name of Registrant as specified in its charter) |

---

---

| | |
|:---|:---|
| **Nevada** | **27-2094706** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

**480 Fernand-Poitras Terrebonne, Qu**é**bec, Canada J6Y 1Y4**

(Address of principal executive offices zip code)

Registrant's telephone number, including area code **(450) 951-8555**

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, par value $0.0001 per share | LOOP | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) Yes ☒ No ☐

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

---

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

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As at January 13, 2026, there were 48,337,555 shares of the Registrant's common stock, par value $0.0001 per share, outstanding.

------

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

**LOOP INDUSTRIES, INC.**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page No.** |
| [**<u>PART I. Financial Information</u>**](#part1) | [**<u>PART I. Financial Information</u>**](#part1) |  |
| [<u>Item 1.</u>](#finstmts) | [<u>Financial Statements</u>](#finstmts) | [F-1](#finstmts) |
| [<u>Item 2.</u>](#mda) | [<u>Management</u><u>'</u><u>s Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | [3](#mda) |
| [<u>Item 3.</u>](#quant) | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#quant) | [13](#quant) |
| [<u>Item 4.</u>](#controls) | [<u>Controls and Procedures</u>](#controls) | [13](#controls) |
| [**<u>PART II. Other Information</u>**](#part2) | [**<u>PART II. Other Information</u>**](#part2) | [**<u>PART II. Other Information</u>**](#part2) |
| [<u>Item 1.</u>](#legal) | [<u>Legal Proceedings</u>](#legal) | [14](#legal) |
| [<u>Item 1A.</u>](#risk) | [<u>Risk Factors</u>](#risk) | [14](#risk) |
| [<u>Item 2.</u>](#unregistered) | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#unregistered) | [15](#unregistered) |
| [<u>Item 3.</u>](#defaults) | [<u>Defaults Upon Senior Securities</u>](#defaults) | [15](#defaults) |
| [<u>Item 4.</u>](#mine) | [<u>Mine Safety Disclosures</u>](#mine) | [15](#mine) |
| [<u>Item 5.</u>](#otherinfo) | [<u>Other Information</u>](#otherinfo) | [15](#otherinfo) |
| [<u>Item 6.</u>](#exhibits) | [<u>Exhibits</u>](#exhibits) | [16](#exhibits) |
|  | [<u>Signatures</u>](#sigs) | [17](#sigs) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

------

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

**PART I. FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS** 

**Loop Industries, Inc.**

**Three and Nine Months Ended November 30, 2025**

**Index to the Unaudited Interim Condensed Consolidated Financial Statements**

---

| | |
|:---|:---|
| **Contents**  | **Page(s)** |
| [<u>Condensed consolidated balance sheets as at November 30, 2025 (Unaudited) and February 28, 2025</u>](#bs) | [F-2](#bs) |
| [<u>Condensed consolidated statements of operations and comprehensive loss for the three and nine months ended November 30, 2025 and 2024 (Unaudited)</u>](#operations) | [F-3](#operations) |
| [<u>Condensed consolidated statements of changes in stockholders</u><u>'</u> <u>equity (deficit) for the three and nine months ended November 30, 2025 and 2024 (Unaudited)</u>](#equity) | [F-4](#equity) |
| [<u>Condensed consolidated statements of cash flows for the nine months ended November 30, 2025 and 2024 (Unaudited)</u>](#cf) | [F-6](#cf) |
| [<u>Notes to the condensed consolidated financial statements (Unaudited)</u>](#notes) | [F-7](#notes) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-1

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

**Loop Industries, Inc.**

**Condensed Consolidated Balance Sheets**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| *(in thousands of U.S. dollars, except per share data)* | ***As at*** | ***As at*** |
|  | ***November 30,*** | ***February 28,*** |
|  | ***2025*** | ***2025*** |
| **Assets** |  |  |
| Current assets |  |  |
| Cash and cash equivalents | $**5204** | $12973 |
| &nbsp;&nbsp;&nbsp; Accounts receivable and other (Note 3) | **300** | 639 |
| Inventories | **85** | 82 |
| Prepaid expenses (Note 4) | **410** | 158 |
| Total current assets | **5999** | 13852 |
| Equity method investments (Note 9) | **1831** | 1281 |
| Property, plant and equipment, net (Note 5) | **1690** | 1737 |
| Intangible assets, net (Note 6) | **1770** | 1708 |
| Total assets | $**11290** | $18578 |
| **Liabilities and Stockholders' Equity (Deficit)** |  |  |
| Current liabilities |  |  |
| Accounts payable and accrued liabilities (Note 8) | $**2935** | $3545 |
| Unearned revenue | **102** | 102 |
| Current portion of long-term debt (Note 11) | **510** | 312 |
| Total current liabilities | **3547** | 3959 |
| Due to customer | **882** | 832 |
| &nbsp;&nbsp;&nbsp; Series B Convertible Preferred stock (Note 10) | **11688** | 10647 |
| Long-term debt (Note 11) | **2496** | 2773 |
| Total liabilities | **18613** | 18211 |
| **Stockholders' Equity (Deficit)** |  |  |
| Series A Preferred stock par value $0.0001; 25,000,000 shares authorized; one share issued and outstanding | **-** |  |
| Common stock par value $0.0001; 250,000,000 shares authorized; 48,337,555 shares issued and outstanding (February 28, 2025 – 47,620,263) (Note 12) | **5** | 5 |
| Additional paid-in capital | **195452** | 193529 |
| Accumulated deficit | **(201622)** | (192027) |
| Accumulated other comprehensive loss | **(1158)** | (1140) |
| Total stockholders' equity (deficit) | **(7323)** | 367 |
| Total liabilities and stockholders' equity (deficit) | $**11290** | $18578 |
| Going Concern (Note 1) |  |  |

---

*See accompanying notes to the condensed consolidated financial statements*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-2

------

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

**Loop Industries, Inc.**

**Condensed Consolidated Statements of Operations and Comprehensive Loss**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(in thousands of U.S. dollars, except per share data)* | ***Three Months Ended*** | ***Three Months Ended*** | ***Nine Months Ended*** | ***Nine Months Ended*** |
|  | ***November 30, 2025*** | *November 30, 2024* | ***November 30, 2025*** | *November 30, 2024* |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Products | $**-** | $52 | $**8** | $81 |
| &nbsp;&nbsp;&nbsp; Services | **86** |  | **330** |  |
| Total revenues | **86** | 52 | **338** | 81 |
| Expenses: |  |  |  |  |
| Research and development (Note 13) | **967** | 1377 | **3182** | 5559 |
| General and administrative (Note 14) | **1500** | 2148 | **5018** | 7654 |
| Depreciation and amortization (Notes 5 and 6) | **94** | 132 | **290** | 398 |
| &nbsp;&nbsp;&nbsp; Loss on equity accounted investments (Note 9) | **65** |  | **410** |  |
| Impairment of machinery & equipment (Note 5) | **-** | 8460 | **-** | 8460 |
| Total expenses | **2626** | 12117 | **8900** | 22071 |
| Other loss (income): |  |  |  |  |
| Interest and other financial expenses | **436** | 110 | **1273** | 289 |
| Interest income | **(43)** | (23) | **(212)** | (155) |
| Foreign exchange loss (gain) | **11** | (240) | **(28)** | (184) |
| Total other loss (income) | **404** | (153) | **1033** | (50) |
| Net loss | **(2944)** | (11912) | **(9595)** | (21940) |
| Other comprehensive income (loss): |  |  |  |  |
| Foreign currency translation adjustment | **7** | (135) | **(18**) | (147) |
| Comprehensive loss | $**(2937)** | $(12047) | $**(9613)** | $(22087) |
| Net loss per share |  |  |  |  |
| Basic and diluted | $**(0.06**) | $(0.25) | $**(0.20**) | $(0.46) |
| Weighted average common shares outstanding |  |  |  |  |
| Basic and diluted | **48081893** | 47620263 | **47837725** | 47576166 |
| Going Concern (Note 1) |  |  |  |  |

---

*See accompanying notes to the condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-3

------

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

**Loop Industries, Inc.**

**Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit)**

**(Unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in thousands of U.S. dollars, except for share data)* | ***Three months ended November 30, 2025*** | ***Three months ended November 30, 2025*** | ***Three months ended November 30, 2025*** | ***Three months ended November 30, 2025*** | ***Three months ended November 30, 2025*** | ***Three months ended November 30, 2025*** | ***Three months ended November 30, 2025*** | ***Three months ended November 30, 2025*** | ***Three months ended November 30, 2025*** |
|  | ***Common stock*** | ***Common stock*** | ***Preferred stock*** | ***Preferred stock*** |  | ***Additional*** |  | ***Accumulated*** |  |
|  | ***par value $0.0001*** | ***par value $0.0001*** | ***par value $0.0001*** | ***par value $0.0001*** | ***Additional*** | ***Paid-in*** |  | ***Other*** | ***Total*** |
|  | ***Number of*** |  | ***Number of*** |  | ***Paid-in*** | ***Capital–*** | ***Accumulated*** | ***Comprehensive*** | ***Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Warrants*** | ***Deficit*** | ***Income (Loss)*** | ***Equity (Deficit)*** |
| Balance, August 31, 2025 | 47863478 | $5 | 1 | $- | $194370 | $- | $(198678) | $(1165) | $(5468) |
| Issuance of shares upon the exercise of stock options (Note 15) | 80000 |  |  |  | 64 |  |  |  | 64 |
| Issuance of common stock under ATM Equity Offering (Note 12) | 394077 |  |  |  | 724 |  |  |  | 724 |
| Stock options issued for services (Note 15) | *-* |  | *-* |  | 185 |  |  |  | 185 |
| Restricted stock units issued for services (Note 15) | *-* |  | *-* |  | 132 |  |  |  | 132 |
| Share issuance costs | *-* |  | *-* |  | (23) |  |  |  | (23) |
| Foreign currency translation | *-* |  | *-* |  |  |  |  | 7 | 7 |
| Net loss | *-* |  | *-* |  |  |  | (2944) |  | (2944) |
| Balance, November 30, 2025 | 48337555 | $5 | 1 | $- | $195452 | $- | $(201622) | $(1158) | $(7323) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in thousands of U.S. dollars, except for share data)* | ***Three months ended November 30, 2024*** | ***Three months ended November 30, 2024*** | ***Three months ended November 30, 2024*** | ***Three months ended November 30, 2024*** | ***Three months ended November 30, 2024*** | ***Three months ended November 30, 2024*** | ***Three months ended November 30, 2024*** | ***Three months ended November 30, 2024*** | ***Three months ended November 30, 2024*** |
|  | ***Common stock*** | ***Common stock*** | ***Preferred stock*** | ***Preferred stock*** |  | ***Additional*** |  | ***Accumulated*** |  |
|  | ***par value $0.0001*** | ***par value $0.0001*** | ***par value $0.0001*** | ***par value $0.0001*** | ***Additional*** | ***Paid-in*** |  | ***Other*** | ***Total*** |
|  | ***Number of*** |  | ***Number of*** |  | ***Paid-in*** | ***Capital–*** | ***Accumulated*** | ***Comprehensive*** | ***Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Warrants*** | ***Deficit*** | ***Income (Loss)*** | ***Equity*** |
| Balance, August 31, 2024 | 47620263 | $5 | 1 | $- | $185868 | $7041 | $(186998) | $(1082) | $4834 |
| Stock options issued for services (Note 15) | *-* |  | *-* |  | 146 |  |  |  | 146 |
| Restricted stock units issued for services (Note 15) | *-* |  | *-* |  | 184 |  |  |  | 184 |
| Foreign currency translation | *-* |  | *-* |  |  |  |  | (135) | (135) |
| Net loss | *-* |  | *-* |  |  |  | (11912) |  | (11912) |
| Balance, November 30, 2024 | 47620263 | $5 | 1 | $- | $186198 | $7041 | $(198910) | $(1217) | $(6883) |

---

*See accompanying notes to the condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-4

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

**Loop Industries, Inc.**

**Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit)**

**(Unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in thousands of U.S. dollars, except for share data)* | ***Nine months ended November 30, 2025*** | ***Nine months ended November 30, 2025*** | ***Nine months ended November 30, 2025*** | ***Nine months ended November 30, 2025*** | ***Nine months ended November 30, 2025*** | ***Nine months ended November 30, 2025*** | ***Nine months ended November 30, 2025*** | ***Nine months ended November 30, 2025*** | ***Nine months ended November 30, 2025*** |
|  | ***Common stock*** | ***Common stock*** | ***Preferred stock*** | ***Preferred stock*** |  | ***Additional*** |  | ***Accumulated*** |  |
|  | ***par value $0.0001*** | ***par value $0.0001*** | ***par value $0.0001*** | ***par value $0.0001*** | ***Additional*** | ***Paid-in*** |  | ***Other*** | ***Total*** |
|  | ***Number of*** |  | ***Number of*** |  | ***Paid-in*** | ***Capital–*** | ***Accumulated*** | ***Comprehensive*** | ***Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Warrants*** | ***Deficit*** | ***Income (Loss)*** | ***Equity (Deficit)*** |
| Balance, February 28, 2025 | 47620263 | $5 | 1 | $- | $193529 | $- | $(192027) | $(1140) | $367 |
| Issuance of shares upon the vesting of restricted stock units (Note 15) | 126857 | *-* |  | *-* | *-* | *-* | *-* | *-* | *-* |
| Issuance of shares upon the exercise of stock options (Note 15) | 80000 |  |  |  | 64 |  |  |  | 64 |
| Issuance of common stock under ATM Equity Offering (Note 12) | 510435 |  |  |  | 917 |  |  |  | 917 |
| Stock options issued for services (Note 15) | *-* |  | *-* |  | 836 |  |  |  | 836 |
| Restricted stock units issued for services (Note 15) | *-* |  | *-* |  | 136 |  |  |  | 136 |
| Share issuance costs | *-* |  | *-* |  | (30) |  |  |  | (30) |
| Foreign currency translation | *-* |  | *-* |  |  |  |  | (18) | (18) |
| Net loss | *-* |  | *-* |  |  |  | (9595) |  | (9595) |
| Balance, November 30, 2025 | 48337555 | $5 | 1 | $- | $195452 | $- | $(201622) | $(1158) | $(7323) |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in thousands of U.S. dollars, except for share data)* | ***Nine months ended November 30, 2024*** | ***Nine months ended November 30, 2024*** | ***Nine months ended November 30, 2024*** | ***Nine months ended November 30, 2024*** | ***Nine months ended November 30, 2024*** | ***Nine months ended November 30, 2024*** | ***Nine months ended November 30, 2024*** | ***Nine months ended November 30, 2024*** | ***Nine months ended November 30, 2024*** |
|  | ***Common stock*** | ***Common stock*** | ***Series A Preferred stock*** | ***Series A Preferred stock*** |  | ***Additional*** |  | ***Accumulated*** |  |
|  | ***par value $0.0001*** | ***par value $0.0001*** | ***par value $0.0001*** | ***par value $0.0001*** | ***Additional*** | ***Paid-in*** |  | ***Other*** | ***Total*** |
|  | ***Number of*** |  | ***Number of*** |  | ***Paid-in*** | ***Capital–*** | ***Accumulated*** | ***Comprehensive*** | ***Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Warrants*** | ***Deficit*** | ***Income (Loss)*** | ***Equity*** |
| Balance, February 29, 2024 | 47528908 | $5 | 1 | $- | $171792 | $20385 | $(176970) | $(1070) | $14142 |
| Issuance of shares upon the vesting of restricted stock units (Note 15) | 91355 | *-* |  | *-* | *-* | *-* | *-* | *-* | *-* |
| Expiration of warrants | *-* |  | *-* |  | 13344 | (13344) |  |  |  |
| Stock options issued for services (Note 15) | *-* |  | *-* |  | 441 |  |  |  | 441 |
| Restricted stock units issued for services (Note 15) | *-* |  | *-* |  | 621 |  |  |  | 621 |
| Foreign currency translation | *-* |  | *-* |  |  |  |  | (147) | (147) |
| Net loss | *-* |  | *-* |  |  |  | (21940) |  | (21940) |
| Balance, November 30, 2024 | 47620263 | $5 | 1 | $- | $186198 | $7041 | $(198910) | $(1217) | $(6883) |

---

*See accompanying notes to the condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-5

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

**Loop Industries, Inc.**

**Condensed Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| *(in thousands of U.S. dollars)* | ***Nine Months Ended November 30,*** | ***Nine Months Ended November 30,*** |
|  | ***2025*** | *2024* |
| **Cash Flows from Operating Activities** |  |  |
| Net loss | $**(9595)** | $(21940) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Depreciation and amortization (Notes 5 and 6) | **290** | 398 |
| Stock-based compensation expense (Note 15) | **972** | 1062 |
| Impairment of machinery & equipment (Note 5) |  | 8460 |
| Accrued interest and other financing costs (Note 10 and 11) | **1125** | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on Equity method investments (Note 9) | **410** |  |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable and other (Note 3) | **363** | 144 |
| Inventories | **-** | 21 |
| Prepaid expenses (Note 4) | **(248**) | 180 |
| Accounts payable and accrued liabilities (Note 8) | **(689**) | 2851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue |  | 102 |
| Net cash used in operating activities | **(7372)** | (8635) |
| **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp; Distribution from equity investment | **-** | 368 |
| &nbsp;&nbsp;&nbsp; Investments in equity-method investees (Note 9) | **(960)** |  |
| Additions to intangible assets (Note 6) | **(199)** | (454) |
| Net cash used in investing activities | **(1159)** | (86) |
| **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from exercise of stock options (Note 12) | **64** |  |
| &nbsp;&nbsp;&nbsp; Proceeds from ATM equity offering, net of issuance costs (Note 12) | **889** |  |
| Borrowings under credit facility (Note 11) | **-** | 2372 |
| Repayment of long-term debt (Note 11) | **(215)** | (60) |
| Net cash provided by financing activities | **738** | 2312 |
| Effect of exchange rate changes | **24** | (226) |
| Net decrease in cash and cash equivalents | **(7769)** | (6635) |
| Cash and cash equivalents, beginning of period | **12973** | 6958 |
| Cash and cash equivalents, end of period | $**5204** | $323 |
| **Supplemental Disclosure of Cash Flow Information:** |  |  |
| Income tax paid | $**-** | $- |
| Interest paid | $**148** | $214 |
| Interest received | $**212** | $224 |
| Going Concern (Note 1) |  |  |

---

*See accompanying notes to the condensed consolidated financial statements.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-6

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

**Loop Industries, Inc.**

**Three and Nine Months Ended November 30, 2025 and 2024**

**Notes to the Condensed Consolidated Financial Statements**

**(Unaudited)**

***1.* The Company, Basis of Presentation and Going Concern**

**The Company**

Loop Industries, Inc. (the "Company," "Loop," "we," or "our") is a technology company that owns patented and proprietary technology that depolymerizes *no* and low-value waste polyethylene terephthalate ("PET") plastic and polyester fiber to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber. The Company is currently in the pre-commercialization stage with limited revenues.

**Basis of Presentation**

These unaudited interim condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America ("US GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures included in these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form *10*-K for the fiscal year ended *February 28, 2025*, filed with the SEC on *May 29, 2025,* as amended by the Amendment *No. 1* on Form *10*-K/A filed with the SEC on *May 30, 2025.* The unaudited interim condensed consolidated financial statements comprise the consolidated financial position and results of operations of Loop Industries, Inc. and its subsidiaries, Loop Innovations, LLC and Loop Canada Inc. All subsidiaries are, either directly or indirectly, wholly owned subsidiaries of Loop Industries, Inc. (collectively, the "Company"). The Company owns, through Loop Innovations, LLC, a 50% interest in a joint venture, Indorama Loop Technologies, LLC, which is accounted for under the equity method. The Company also owns a 50% interest in a joint venture, Ester Loop Infinite Technologies Private Limited ("India JV"), which is accounted for under the equity method. The Company owns a 10% equity interest in Infinite Loop Europe SAS ("Infinite Loop Europe"), accounted for under the equity method, over which it has significant influence but *not* joint control; the remaining 90% is owned by Reed Circular Economy ("RCE").

Intercompany balances and transactions are eliminated on consolidation. The condensed consolidated balance sheet as of *February 28, 2025*, included herein, was derived from the audited financial statements as of that date, but does *not* include all disclosures including certain notes required by US GAAP on an annual reporting basis. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods. The results for the *three*- and *nine*-month periods ended *November 30, 2025* are *not* necessarily indicative of the results to be expected for any subsequent quarter, for the fiscal year ending *February 28, 2026*, or for any other period.

All monetary amounts in these notes to the condensed consolidated financial statements are in thousands of U.S. dollars unless otherwise specified, except for per share data.

 **Going Concern**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; These unaudited interim condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and settlement of liabilities in the normal course of business as they come due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but *not* limited to, *twelve* months from the date of issuance of these consolidated financial statements.

Since its inception, the Company has been in the pre-commercialization stage with *no* recurring revenues, and its ongoing operations and commercialization plans have been financed primarily by raising equity and debt. The Company has recurring net losses, negative cash flow from operating activities since its inception, and a net capital deficiency. Management continuously monitors the Company's cash resources against its cash commitments to determine whether there is sufficient liquidity to fund its costs for at least *twelve* months from the financial statement issuance date. In preparing this going concern assessment in accordance with US GAAP, the Company included cash flows that meet the 'probable' threshold under ASC *205*-*40* in its going concern evaluation and has excluded forecasted cash flows that lack substantive support or binding commitments.

Management has determined that current cash and cash equivalents on hand of $5,204, together with the $2,504 available under its undrawn credit facility, will *not* be sufficient to fund the Company's ongoing operations, obligations and commitments for the next *twelve* months from the date of issuance of these unaudited interim condensed consolidated financial statements. These events and conditions are material uncertainties that raise substantial doubt upon the Company's ability to continue as a going concern and, accordingly, the appropriateness of the use of accounting principles applicable to a going concern.

The Company's ability to continue as a going concern and execute upon management's plans to move to the next stage of its strategic development is dependent on, among other factors, whether the Company can obtain the necessary financing through a combination of the issuance of debt and/or equity, technology licensing and engineering services arrangements, and/or financing from government incentive programs. While the Company is actively engaged in financing discussions, there is *no* assurance that the Company will be successful in attracting additional funding on terms acceptable to the Company.

These unaudited interim condensed consolidated financial statements do *not* reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *7*

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***2.* Summary of Significant Accounting Policies**

*<u>Use of estimates</u>*

The preparation of financial statements in conformity with US GAAP requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include the going concern assessment, estimates for depreciable lives of property, plant and equipment and intangible assets, recoverability of property, plant and equipment, recoverability of equity accounted investments, assumptions made in calculating the fair value of stock-based compensation and other equity instruments, and the assessment of performance conditions for stock-based compensation awards.

*<u>Net loss per share</u>*

The Company computes net loss per share in accordance with FASB ASC *260,* *Earnings Per Share*. Basic loss per share is computed by dividing the net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the year. The Company includes common stock issuable in its calculation. Diluted loss per share is computed by dividing the net loss applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation if their effect is antidilutive.

For the *three* and *nine* months ended *November 30, 2025* and *2024*, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an antidilutive effect. As at *November 30, 2025*, the potentially dilutive securities consisted of 5,243,138 outstanding stock options (*2024* – 2,771,216), 4,261,512 outstanding restricted stock units (*2024* – 4,448,179), and nil outstanding warrants (*2024* – 2,357,407)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *8*

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*<u>Recently adopted accounting pronouncements</u>*

In *August 2023,* the Financial Accounting Standards Board ("FASB") issued ASU *No. 2023*-*05,* Joint Venture Formations, which requires joint ventures to apply a new basis of accounting by measuring assets and liabilities at fair value upon formation. The amendments address diversity in practice by establishing requirements for recognition and measurement of net assets and liabilities on the formation date. The updated standard is effective for fiscal years beginning after *December 15, 2024,* including interim periods within those fiscal years. The adoption of this accounting guidance for the *nine*-month period ended *November 30, 2025* did *not* impact the disclosures in our interim condensed consolidated financial statements.

*<u>Recently issued accounting pronouncements *not* yet adopted</u>*

In *December 2023,* the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") *2023*-*09—Income* Taxes (Topic *740*): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The amendments in this Update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information and includes certain other amendments to improve the effectiveness of income tax disclosures. The ASU is effective for our annual period beginning after *December 15, 2024* and all joint ventures formed on or after *January 1, 2025,* which for the Company is the annual period ending *February 28, 2026.* Early adoption is permitted. Management is currently evaluating the impact that the updated standard will have on our consolidated financial statements and related disclosures.

In *November 2024,* the Financial Accounting Standards Board ("FASB") issued ASU *No. 2024*-*03,* Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic *220*-*40*): Disaggregation of Income Statement Expenses, which requires public business entities to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to financial statements. The updated standard is effective for annual reporting periods beginning after *December 15, 2026,* and interim reporting periods within annual reporting periods beginning after *December 15, 2027.* Early adoption is permitted. Management is currently evaluating the impact that the updated standard will have on our consolidated financial statements and related disclosures.

In *November 2024,* the Financial Accounting Standards Board ("FASB") issued ASU *No. 2024*-*04,* Debt—Debt with Conversion and Other Options (Subtopic *470*-*20*): Induced Conversions of Convertible Debt Instruments, which clarifies the accounting for settlements of convertible debt instruments that occur on terms different from the original contractual conversion terms. The amendments introduce a "preexisting contract approach," requiring that, to qualify for induced conversion accounting, the inducement offer must preserve the form of consideration and provide an amount of consideration that is *no* less than what was issuable under the original conversion privileges. This guidance applies to convertible debt instruments with cash conversion features and to instruments that are *not* currently convertible but had substantive conversion features at issuance and at the time the inducement offer is accepted. The updated standard is effective for annual reporting periods beginning after *December 15, 2025,* including interim periods within those fiscal years. Early adoption is permitted for entities that have adopted the amendments in ASU *2020*-*06.* Management is currently evaluating the impact that the updated standard will have on our consolidated financial statements and related disclosures.

In *January 2025,* the Financial Accounting Standards Board (FASB) issued ASU *2025*-*01,* Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic *220*-*40*): Clarifying the Effective Date. This update clarifies the effective date of ASU *2024*-*03,* which requires public business entities to provide disaggregated disclosures of certain income statement expenses. Specifically, ASU *2025*-*01* confirms that the guidance in ASU *2024*-*03* is effective for annual reporting periods beginning after *December 15, 2026,* and for interim periods within annual reporting periods beginning after *December 15, 2027.* Early adoption is permitted. Management is currently evaluating the impact that the updated standard will have on our consolidated financial statements and 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, which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic *606,* including those assets acquired in a business combination. The practical expedient permits an entity to assume that current conditions as of the balance sheet date do *not* change for the remaining life of the current accounts receivable and current contract assets. This guidance is effective for the Company for its fiscal year and all interim periods beginning *February 1, 2026* on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

***3.* Accounts Receivable and Other**

Accounts Receivable and Other as at *November 30, 2025* and *February 28, 2025* are comprised of the following:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | *February 28, 2025* |
| Accounts receivable from customers | $**3** | $52 |
| Accounts receivable from joint venture | **86** | 368 |
| Research and development tax credits | **64** | 121 |
| Sales tax | **57** | 89 |
| Other receivables | **90** | 9 |
|  | $**300** | $639 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *9*

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***4.* Prepaid Expenses**

Prepaid expenses as at *November 30, 2025* and *February 28, 2025* were as follows:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | *February 28, 2025* |
| Insurance | $**280** | $69 |
| Utilities | **32** | 29 |
| Software | **33** | 28 |
| Other | **65** | 32 |
|  | $**410** | $158 |

---

***5.* Property, Plant and Equipment, Net**

---

| | | | |
|:---|:---|:---|:---|
|  | ***As at November 30, 2025*** | ***As at November 30, 2025*** | ***As at November 30, 2025*** |
|  |  | ***Accumulated*** |  |
|  |  | ***depreciation,*** |  |
|  |  | ***write-down*** |  |
|  | ***Cost*** | ***and impairment*** | ***Net book value*** |
| Machinery and equipment | $8460 | $(8460) | $- |
| Building | 1773 | (464) | 1309 |
| Land | 219 |  | 219 |
| Building and Land Improvements | 1799 | (1722) | 77 |
| Office equipment and furniture | 267 | (182) | 85 |
|  | $12518 | $(10828) | $1690 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | ***As at February 28, 2025*** | ***As at February 28, 2025*** | ***As at February 28, 2025*** |
|  |  | ***Accumulated*** |  |
|  |  | ***depreciation,*** |  |
|  |  | ***write-down*** |  |
|  | ***Cost*** | ***and impairment*** | ***Net book value*** |
| Machinery and equipment | $8460 | $(8460) | $- |
| Building | 1717 | (406) | 1311 |
| Land | 212 |  | 212 |
| Building and Land Improvements | 1741 | (1616) | 125 |
| Office equipment and furniture | 259 | (170) | 89 |
|  | $12389 | $(10652) | $1737 |

---

Depreciation expense for the *three*- and *nine*-month periods ended *November 30, 2025* amounted to $34 and $104, respectively (*2024* – $79 and $249).

During the year ended *February 28, 2025* the Company recorded an impairment charge for equipment of $8,460. This impairment was due to the termination of the joint venture arrangement between the Company and SK Geo Centric Co. Ltd. under which they had intended to construct and operate an Infinite Loop™ manufacturing facility in Ulsan, South Korea. While the equipment *may* be utilized in a future commercial production facility, there are *no* active deployment plans for the use of this specific equipment, therefore the recoverability of the carrying value of the equipment is highly uncertain, and when tested for impairment, resulted in an impairment loss of $8,460 being recognized in the year ended *February 28, 2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *10*

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***6.* Intangible Assets, Net**

Intangible assets as at *November 30, 2025* and *February 28, 2025* were $1,770 and $1,708, respectively.

During the *nine*-month periods ended *November 30, 2025* and *2024*, we made additions relating to patent application costs to intangible assets of $199 and $454, respectively.

Amortization expense for the *three*- and *nine*-month periods ended *November 30, 2025* amounted to $60 and $186, respectively (*2024* – $53 and $149).

***7.* Fair Value of Financial Instruments**

The following tables disclose the estimated fair value of the Company's financial liabilities as at *November 30, 2025* and *February 28, 2025*:

---

| | | | |
|:---|:---|:---|:---|
|  | ***Fair Value at November 30, 2025*** | ***Fair Value at November 30, 2025*** | ***Fair Value at November 30, 2025*** |
|  | *Carrying* |  | *Level in the* |
|  | *Amount* | *Fair Value* | *hierarchy* |
| Financial liabilities accounted for at amortized cost: |  |  |  |
| &nbsp;&nbsp;&nbsp; Series B Convertible Preferred stock (Note 10) | $11688 | $11688 | *Level 2* |
| Long-term debt (Note 11) | $3006 | $3006 | *Level 2* |
| Due to customer | $882 | $882 | *Level 2* |

---

---

| | | | |
|:---|:---|:---|:---|
|  | ***Fair Value at February 28, 2025*** | ***Fair Value at February 28, 2025*** | ***Fair Value at February 28, 2025*** |
|  | *Carrying* |  | *Level in the* |
|  | *Amount* | *Fair Value* | *hierarchy* |
| Financial liabilities accounted for at amortized cost: |  |  |  |
| &nbsp;&nbsp;&nbsp; Series B Convertible Preferred stock (Note 10) | $10647 | $10647 | *Level 2* |
| Long-term debt (Note 11) | $3085 | $3085 | *Level 2* |
| Due to customer | $832 | $832 | *Level 2* |

---

The fair value of cash, restricted cash, accounts receivable and other, and accounts payable and accrued liabilities approximate their carrying values due to their short-term maturity.

***8.* Accounts Payable and Accrued Liabilities**

Accounts payable and accrued liabilities as at *November 30, 2025* and *February 28, 2025* were as follows:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | ***February 28, 2025*** |
| Trade accounts payable | $**1234** | $2010 |
| Accrued employee compensation | **645** | 554 |
| Accrued engineering fees | **452** | 431 |
| Accrued professional fees | **290** | 276 |
| Other accrued liabilities | **314** | 274 |
|  | $**2935** | $3545 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *11*

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***9.* Equity Method Investments**

*Joint Venture with Ester*

On *May 1, 2024,* the Company entered into an agreement with Ester Industries Ltd. ("Ester"), a manufacturer of polyester films and specialty polymers in India, to form a *50/50* joint venture based in India ("India JV"). The purpose of the India JV is to build and operate an Infinite Loop™ manufacturing facility in India which will produce lower carbon footprint rDMT, rMEG and specialty polymers, using the Infinite Loop™ Technology. During the year ended *February 28, 2025,* Ester Loop Infinite Technologies Private Limited ("ELITe") was incorporated as the India JV.

ELITe meets the accounting definition of a joint venture where neither party has control of the joint venture entity and both parties have joint control over the decision-making process. As such, the Company uses the equity method of accounting to account for its share of the investment in ELITe.

During the *nine*-month period ended *November 30, 2025*, Loop and Ester each contributed $960 (*2024* – nil) to ELITe. During the *three*- and *nine*-month periods ended *November 30, 2025*, ELITe incurred losses of $130 and $820, respectively (*2024* – nil), resulting in the Company recording its share of the loss on equity accounted investment of $65 and $410 (*2024* – nil) for the respective periods. As at *November 30, 2025*, and *February 28, 2025* the carrying value of the Company's investment in ELITe was $1,817 and $1,267, respectively.

*Equity-Method Investment with Reed Circular Economy*

On *September 23, 2025,* Loop entered into a formal agreement with Reed Circular Economy ("RCE"), an affiliate of Reed Management SAS, to establish the framework for the governance, ownership, and operations of Infinite Loop Europe SAS ("Infinite Loop Europe"). Under this agreement, and as previously announced, RCE and Loop hold their interests in Infinite Loop Europe on a *90/10* basis to pursue the non-exclusive development, financing, construction, ownership, operation, and commercialization of chemical upcycling plants using Loop's technology within Europe. The agreement provides Infinite Loop Europe with priority rights to evaluate European project opportunities, establishes financing arrangements between the shareholders, grants Loop options to participate in project equity, and confirms that Loop retains ownership of its intellectual property while granting Infinite Loop Europe limited use rights.

Infinite Loop Europe does *not* meet the accounting definition of a joint venture, as the Company does *not* have joint control over the entity. However, the Company has significant influence over Infinite Loop Europe and, accordingly, accounts for its investment using the equity method.

In *September 2025,* Loop purchased 250 shares of Infinite Loop Europe for €0.25 ($0.305) (*2024* – nil). Infinite Loop Europe has *not* yet commenced operations. As at *November 30, 2025*, the carrying value of the Company's investment in Infinite Loop Europe was nominal.

***10.* Series B Convertible Preferred Stock**

The balance of Series B Convertible Preferred Stock as at *November 30, 2025* and *February 28, 2025* was as follows:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | ***February 28, 2025*** |
| Stated value | $**11439** | $10395 |
| Accrued PIK dividends | **249** | 252 |
| Series B Convertible Preferred Stock | $**11688** | $10647 |

---

During the *three*- and *nine*-month periods ended *November 30, 2025*, the Company recorded PIK dividends of $360 and $1,041 respectively, (*2024* – nil), which were recorded in "Interest and other financial expenses" in our Consolidated Statements of Operations and Comprehensive Loss. On *September 30, 2025,* the annual dividend payment date, in accordance with the terms of the Series B Preferred Stock, the Company did *not* pay the accrued dividend in cash. The dividend of $1,044 was added to the Stated Value of the Series B Preferred Stock as a payment-in-kind dividend. The Stated Value as of *September 30, 2025* includes this PIK dividend and will serve as the base for calculating future dividend accruals at the applicable dividend rate.

***11.* Long**-**Term Debt**

Long-term debt as of *November 30, 2025* and *February 28, 2025*, was comprised of the following:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | *February 28, 2025* |
| Investissement Québec financing facility: |  |  |
| Principal amount | $**3004** | $3099 |
| Unamortized discount | **(109)** | (138) |
| Accrued interest | **111** | 124 |
| Total Investissement Québec financing facility | **3006** | 3085 |
| Less: current portion of long-term debt | **(510)** | (312) |
| Long-term debt, net of current portion | $**2496** | $2773 |

---

*Investissement Qu*é*bec financing facility*

The Company recorded interest expense on the Investissement Québec loan for the *three*- and *nine*-month periods ended *November 30, 2025* in the amount of $36 and $106, respectively (*2024* – $29 and $59) and an accretion expense of $11 and $34, respectively (*2024* – $14 and $27). During the *nine*-month period ended *November 30, 2025*, the Company made repayments of $215 (*2024* – $50) on the Investissement Québec loan.

Total repayments due on the Company's indebtedness over the next *five* years are as follows:

---

| | |
|:---|:---|
| **Years ending** | ***Amount*** |
| February 28, 2026 | 107 |
| February 28, 2027 | 537 |
| February 29, 2028 | 824 |
| February 28, 2029 | 824 |
| February 28, 2030 | 823 |
| Thereafter |  |
| **Total** | $**3115** |

---

*Credit facility from a Canadian bank*

On *July 26, 2022,* Loop Canada, Inc., a wholly-owned subsidiary of the Company (the "Borrower"), entered into an Operating Credit Facility (the "Credit Facility") with a Canadian bank. The Credit Facility allows for borrowings of up to $2,504 in aggregate principal amount. The Credit Facility is secured by the Company's Terrebonne, Québec property and was initially subject to a minimum equity covenant, tested quarterly.

On *July 4, 2025,* the Borrower, the Company and the Canadian bank executed an amendment to the Credit Facility, modifying the minimum equity covenant to include the balance of Series B Convertible Preferred Stock as at *February 28, 2025* of $10,647 in the calculation of stockholders' equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On *October 10, 2025,* the Borrower, the Company and the Canadian bank executed an amendment to the Credit Facility, which removed the minimum equity covenant tested quarterly for the duration of the term of the Credit Facility.

All borrowings under the Credit Facility bear interest at an annual rate equal to the bank's Canadian prime rate plus 1.0%. As at *November 30, 2025*, the $2,504 Credit Facility was available and undrawn. As at *February 28, 2025*, the credit facility was available and undrawn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *12*

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***12.* Stockholders' Equity (Deficit)**

**Common Stock**

---

| | | |
|:---|:---|:---|
| **For the period ended November 30, 2025** | ***Number of shares*** | ***Amount*** |
| Balance, February 28, 2025 | 47620263 | $5 |
| Issuance of shares upon settlement of restricted stock units | 126857 | *-* |
| Issuance of shares upon exercise of stock options | 80000 | *-* |
| Issuance of shares for cash | 510435 | *-* |
| Balance, November 30, 2025 | 48337555 | $5 |

---

---

| | | |
|:---|:---|:---|
| **For the period ended November 30, 2024** | ***Number of shares*** | ***Amount*** |
| Balance, February 29, 2024 | 47528908 | $5 |
| Issuance of shares upon settlement of restricted stock units | 91355 | *-* |
| Balance, November 30, 2024 | 47620263 | $5 |

---

During the *nine* months ended *November 30, 2025*, the Company recorded the following common stock transactions:

(i) The Company issued 126,857 shares of common stock to settle restricted stock units that vested in the period.

(ii) The Company issued 80,000 shares of common stock to settle stock options exercised in the period.

(iii) The Company issued 510,435 shares of common stock through its ATM Equity Offering program at an average offering price of $1.80 for gross proceed of $917.

During the *nine* months ended *November 30, 2024*, the Company recorded the following common stock transaction:

(i) The Company issued 91,355 shares of common stock to settle restricted stock units that vested in the period.

***13.* Research and Development Expenses**

Research and development expenses for the *three*-month periods ended *November 30, 2025* and *2024* were as follows:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | *November 30, 2024* |
| Employee compensation | $**735** | $876 |
| Machinery and equipment expenditures | **-** | 41 |
| External engineering | **18** | 86 |
| Plant and laboratory operating expenses | **183** | 210 |
| Other | **31** | 164 |
|  | $**967** | $1377 |

---

Research and development expenses for the *nine*-month periods ended *November 30, 2025* and *2024* were as follows:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | *November 30, 2024* |
| Employee compensation | $**2377** | $3014 |
| Machinery and equipment expenditures | **2** | 44 |
| External engineering | **82** | 1365 |
| Plant and laboratory operating expenses | **562** | 677 |
| Other | **159** | 459 |
|  | $**3182** | $5559 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *13*

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***14.* General and Administrative Expenses**

General and administrative expenses for the *three*-month periods ended *November 30, 2025* and *2024* were as follows:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | *November 30, 2024* |
| Employee compensation | $**653** | $799 |
| Insurance | **426** | 453 |
| Professional fees | **157** | 595 |
| Other | **264** | 301 |
|  | $**1500** | $2148 |

---

General and administrative expenses for the *nine*-month periods ended *November 30, 2025* and *2024* were as follows:

---

| | | |
|:---|:---|:---|
|  | ***November 30, 2025*** | *November 30, 2024* |
| Employee compensation | $**1956** | $2491 |
| Insurance | **1301** | 1421 |
| Professional fees | **1130** | 2858 |
| Other | **631** | 884 |
|  | $**5018** | $7654 |

---

***15.* Share-based Payments**

**Stock Options**

The following table summarizes the continuity of the Company's stock options during the *three*-month periods ended *November 30, 2025* and *2024*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***2025*** | ***2025*** | *2024* | *2024* |
|  | ***Number of*** | ***Weighted average*** | *Number of* | *Weighted average* |
|  | ***stock options*** | ***exercise price*** | *stock options* | *exercise price* |
| Outstanding, beginning of period | **5493138** | $**3.19** | 2771216 | $5.25 |
| Granted | **130000** | **1.72** |  |  |
| Exercised | **(80000**) | **0.80** |  |  |
| Forfeited | **(100000**) | **1.16** |  |  |
| Expired | **(200000**) | **0.80** |  |  |
| Outstanding, end of period | **5243138** | $**3.32** | 2771216 | $5.25 |
| Exercisable, end of period | **2581727** | $**5.30** | 2040000 | $6.12 |

---

The following table summarizes the continuity of the Company's stock options during the *nine*-month periods ended *November 30, 2025* and *2024*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***2025*** | ***2025*** | *2024* | *2024* |
|  | ***Number of*** | ***Weighted average*** | *Number of* | *Weighted average* |
|  | ***stock options*** | ***exercise price*** | *stock options* | *exercise price* |
| Outstanding, beginning of period | **2771216** | $**5.25** | 2772000 | $5.10 |
| Granted | **2931922** | **1.18** | 199216 | 2.89 |
| Exercised | **(80000**) | **0.80** |  |  |
| Forfeited | **(180000**) | **1.31** | (200000) | 0.80 |
| Expired | **(200000**) | **0.80** |  |  |
| Outstanding, end of period | **5243138** | $**3.32** | 2771216 | $5.25 |
| Exercisable, end of period | **2581727** | $**5.30** | 2040000 | $6.12 |

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The Company applies the fair value method of accounting for stock-based compensation awards granted. Fair value is calculated based on a Black-Scholes option pricing model. The principal components of the pricing model for the stock options granted in the *nine*-month period ended *November 30, 2025* and *2024* were as follows:

---

| | | |
|:---|:---|:---|
|  | ***2025*** | ***2024*** |
| Exercise price | $1.18 | $2.89 |
| Risk-free interest rate | 3.56% - 4.11% | 4.09% |
| Expected dividend yield | 0% | 0% |
| Expected volatility | 81%-82% | 73% |
| Expected life (years) | *3.5 - 5.0 years* | 7 years |

---

The weighted-average grant-date fair value of options granted during the *nine*-month periods ended *November 30, 2025* and *2024* was $0.64 and $2.03, respectively.

A summary of the Company's nonvested shares as of *November 30, 2025*, and changes during the *nine*-month period ended *November 30, 2025* were as follows:

---

| | | |
|:---|:---|:---|
|  | ***2025*** | ***2025*** |
|  | ***Number of*** | ***Weighted average*** |
|  | ***stock options*** | ***exercise price*** |
| Nonvested, beginning of period | **731216** | $**1.88** |
| Granted | **2400000** | **0.66** |
| Exercised | ***-*** | ***-*** |
| Forfeited | **(180000**) | **1.31** |
| Vested | **(289805)** | **1.88** |
| Nonvested, end of period | **2661411** | $**0.82** |

---

During the *three*-month periods ended *November 30, 2025* and *2024*, stock-based compensation expense attributable to stock options amounted to $185 and $146, respectively. During the *nine*-month periods ended *November 30, 2025* and *2024*, stock-based compensation expense attributable to stock options amounted to $836 and $441, respectively.

**Restricted Stock Units**

The following table summarizes the continuity of the restricted stock units during the *three*-month periods ended *November 30, 2025* and *2024*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***2025*** | ***2025*** | *2024* | *2024* |
|  |  | ***Weighted average*** |  | *Weighted average* |
|  | ***Number of units*** | ***fair value price*** | *Number of units* | *fair value price* |
| Outstanding, beginning of period | **4256532** | $**6.38** | 4461818 | $6.35 |
| Granted | **17311** | **1.65** |  |  |
| Settled | **-** | **-** |  |  |
| Forfeited | **(12331)** | **4.76** | (13639) | 4.43 |
| Outstanding, end of period | **4261512** | $**6.36** | 4448179 | $6.36 |
| Outstanding vested, end of period | **1833531** | $**5.71** | 1761421 | $5.86 |

---

The following table summarizes the continuity of the restricted stock units during the *nine*-month periods ended *November 30, 2025* and *2024*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***2025*** | ***2025*** | *2024* | *2024* |
|  |  | ***Weighted average*** |  | *Weighted average* |
|  | ***Number of units*** | ***fair value price*** | *Number of units* | *fair value price* |
| Outstanding, beginning of period | **4466958** | $**6.32** | 4368897 | $6.53 |
| Granted | **328081** | **1.33** | 184276 | 2.25 |
| Settled | **(126857**) | **2.90** | (91355) | 6.74 |
| Forfeited | **(406670**) | **2.97** | (13639) | 4.43 |
| Outstanding, end of period | **4261512** | $**6.36** | 4448179 | $6.36 |
| Outstanding vested, end of period | **1833531** | $**5.71** | 1761421 | $5.86 |

---

The Company applies the fair value method of accounting for awards granted through the issuance of restricted stock units. Fair value is calculated based on the intrinsic value at grant date multiplied by the number of restricted stock unit awards granted.

During the *three*-month periods ended *November 30, 2025* and *2024*, stock-based compensation attributable to RSUs amounted to $132 and $184, respectively. During the *nine*-month periods ended *November 30, 2025* and *2024*, stock-based compensation expense attributable to RSUs amounted to $136, which includes $(319) for forfeitures recorded in the period, and $621, respectively.

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**Stock-Based Compensation Expense**

During the *three*-month periods ended *November 30, 2025* and *2024*, stock-based compensation included in research and development expenses amounted to $82 and $106, respectively, and in general and administrative expenses amounted to $235 and $224, respectively. During the *nine*-month periods ended *November 30, 2025* and *2024*, stock-based compensation included in research and development expenses amounted to $426 and $367, respectively, and in general and administrative expenses amounted to $545 and $695, respectively.

***16.* Equity Incentive Plan**

On *July 6, 2017,* the Company adopted the *2017* Equity Incentive Plan (the "Plan"). The Plan permits the granting of warrants, stock options, stock appreciation rights and restricted stock units to employees, directors and consultants of the Company. A total of 3,000,000 shares of common stock were initially reserved for issuance under the Plan at *July 6, 2017,* with annual automatic share reserve increases, as defined in the Plan, amounting to the lessor of (i) 1,500,000 shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such number of shares determined by the Administrator of the Plan, effective *March 1, 2018.* On *March 1, 2025,* the share reserve was increased by 1,500,000 shares (*2024* – 1,500,000). The Plan is administered by the Board of Directors who designates eligible participants to be included under the Plan, the number of awards granted, the share price pursuant to the awards and the vesting conditions and period. The awards, when granted, will have an exercise price of *no* less than the estimated fair value of shares at the date of grant and a life *not* exceeding 10 years from the grant date. However, where a participant, at the time of the grant, owns stock representing more than *10%* of the voting power of the Company, the life of the options shall *not* exceed 5 years.

The following table summarizes the continuity of the units that were authorized for issuance under the Plan as at and during the *nine*-month periods ended *November 30, 2025* and *2024*:

---

| | | |
|:---|:---|:---|
|  | ***2025*** | *2024* |
|  | ***Number of units\**** | *Number of units\** |
| Authorized, beginning of period | **2159612** | 848244 |
| Automatic share reserve increase | **1500000** | 1500000 |
| Units granted | **(3260003)** | (383492) |
| Units forfeited | **586670** | 213639 |
| Units expired | **200000** |  |
| Authorized, end of period | **1186279** | 2178391 |

---

\*The use of the term "units" in the table above describes a combination of stock options and RSUs.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following information and any forward-looking statements should be read in conjunction with the unaudited financial information and the notes thereto included in this Quarterly Report on Form 10-Q, including those risks identified in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended February 28, 2025, filed with the SEC on May 29, 2025, as amended by the Amendment No. 1 on Form 10-K/A filed with the SEC on May 30, 2025 (the "2025 Annual Report").*

**CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q of Loop Industries, Inc., a Nevada corporation (the "Company," "Loop," "we," or "our"), contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, ability to improve and expand our capabilities, competition, expected activities and expenditures as we pursue our business plan, the adequacy of our available cash resources, regulatory compliance, plans for future growth and future operations, the size of our addressable market, and market and industry trends. 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. Actual results may differ materially from the projections discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. These risks and other factors include, but are not limited to, those listed under "Risk Factors." Additional factors that could materially affect these forward-looking statements and/or projections include, among other things: (i) our ability to commercialize our technology and products, (ii) the status of our relationships with our partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need for and ability to obtain additional funding relative to our current and future financial commitments, (vi) our ability to continue as a going concern, (vii) engineering, contracting, and building our manufacturing facilities, (viii) our ability to scale, manufacture, and sell our products and to license our technology in order to generate revenues, (ix) our proposed business model and our ability to execute it, (x) our ability to obtain the necessary approvals or satisfy any closing conditions in respect of any of our proposed partnerships, (xi) our joint venture projects and our ability to recover certain expenditures in connection them, (xii) adverse effects on the Company's business and operations as a result of increased regulatory, media, or financial reporting scrutiny, practices, rumors, or otherwise, (xiii) public health issues, such as disease epidemics, which may lead to reduced access to capital markets, supply chain disruptions, and government-imposed business closures, (xiv) war, regional tensions, and economic or other conflicts including trade disputes and increasing protectionist measures that could impact market stability and our business; (xv) the effect of the continuing worldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interest rates, (xvi) the outcome of any SEC investigations or class action litigation filed against us, (xvii) our ability to hire and/or retain qualified employees and consultants, (xviii) other events or circumstances over which we have little or no control, and (xix) other factors discussed in our subsequent filings with the Securities and Exchange Commission (the "SEC").

Management has included projections and estimates in this Form 10-Q, which are based primarily on management's experience in the industry, assessments of our results of operations, discussions and negotiations with third parties, and a review of information filed by our competitors with the SEC or otherwise publicly available.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as at the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.

We caution readers not to place undue reliance on any such forward-looking statements, which speak only as at the date made. Except as required by law, we disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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**General**

As used in this Quarterly Report on Form 10-Q, the following terms are being provided so investors can better understand our business:

**Depolymerization** refers to the chemical process of breaking down a polymer molecule into its constituent monomers or smaller subunits. Depolymerization is the opposite of polymerization.

**DMT** is an acronym for dimethyl terephthalate, which is a monomer used in the production of polyethylene terephthalate ("PET"), as well as other products.

**MEG** is an acronym for monoethylene glycol, which is a monomer used in the production of PET, as well as other products.

**Polymerization** refers to a process of reacting monomer molecules together in a chemical reaction to form polymer chains or three-dimensional networks.

**PET** is an acronym for polyethylene terephthalate, which is a resin and a type of polyester showing excellent tensile and impact strength, chemical resistance, clarity, and processability, and reasonable thermal stability. PET is the material which is most commonly used for the production of polyester fiber and plastic packaging, including plastic bottles for water and carbonated soft drinks, containers for food and other consumer products; it is commonly identified by the number "1", often inside an image of a triangle, on the packaging. PET is also used as a polyester fiber for a variety of applications including textiles, clothing and apparel.

**rPET, rDMT and rMEG** are acronyms for recycled PET, DMT and MEG.

**$** refers to U.S. dollars unless otherwise indicated.

**Introduction**

Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from our dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles, packaging, and textiles such as carpets and clothing, into its base building block monomers, DMT and MEG. The monomers are separated, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop™ PET plastic and polyester fiber can be recycled infinitely without degradation of quality, helping to close the plastic loop. Loop Industries is committed to contributing to the global movement towards a circular economy by reducing plastic waste and recovering waste plastic for a sustainable future.

Loop plans to commercialize the Infinite Loop™ technology through a combination of direct investments with strategic partners to own and operate commercial facilities and the licensing of its technology.

As the initial phase of our plan for the commercialization of future Infinite Loop™ manufacturing facilities, we constructed and have successfully operated our Terrebonne, Québec depolymerization production facility (the "Terrebonne Facility") for the past five years, demonstrating the effectiveness of our technology and supplying Loop PET resin and polyester fiber to customers. The facility is also used for research and development activities.

Loop is currently executing on its commercialization strategy through two key strategic partnerships. The Company is advancing towards the construction of an Infinite Loop™ manufacturing facility in India through its 50/50 joint venture in India with Ester Industries Ltd. ("Ester"). The facility's planned production capacity is 70,000 tons per year of Loop branded PET resin and polyester fiber. In addition, the Company sold its first technology license to Reed Management SAS, known as Reed Societe Generale Group, for one Infinite Loop™ manufacturing facility in Europe for an initial down payment of €10 million with additional milestone payments to be received by Loop as the project advances. Infinite Loop Europe, an entity owned 10% by Loop and 90% by Reed Societe Generale Group, was formed with the purpose of developing Infinite Loop™ manufacturing facilities in Europe. These initiatives represent key steps in implementing the Company's plan to deploy its proprietary depolymerization technology in global markets.

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**Background**

*<u>Industry Background and Competitive Landscape</u>*

PET resin is primarily derived from fossil fuel-based monomers and is referred to as "virgin PET" when used for packaging and "virgin polyester" when used for fibers. PET is widely used in packaging, especially for beverage bottles and food containers, due to its excellent barrier properties, durability, and food safety profile. Virgin polyester fiber is also the dominant synthetic fiber in the textile industry, valued for its strength, durability, wrinkle resistance, and versatility in apparel, home furnishings, and industrial applications.

Despite growing regulatory and consumer pressure for sustainable alternatives, most of the PET and polyester fiber used globally today is still comprised of fossil fuel-based monomers. In many applications, virgin material is still preferred or required, either alone or blended with recycled content, in order to meet quality specifications. As a result, the global markets for both PET packaging and polyester fiber remain heavily dependent on fossil fuels, underscoring the need for scalable, cost-effective recycling technologies that can produce high-quality PET and polyester fiber from waste plastic.

Mechanical recycling is the most common method for recycling PET waste. This multi-step physical process transforms waste PET into reusable materials. The process begins with the collection of waste PET bottles and packaging through various systems, such as curbside programs and deposit returns. The waste is sorted at materials recovery facilities to separate PET from other plastics or materials, then compressed into bales.

The bales are broken down and the waste PET shredded into flakes after removal of contaminants like stones, sand, metals, labels, and bottle caps. These flakes undergo rigorous washing and cleaning stages, often using hot water and detergents, to remove dirt, adhesives, and residues. Separation techniques like flotation and air classification are then used to eliminate remaining impurities, and the flakes are dried. Next, the flakes may go through optical color sorting to produce rPET for higher value uses such as clear beverage bottles. The cleaned flakes are then melted at high temperatures, extruded, and cut into uniform pellets. For applications like food-grade packaging, the rPET pellets typically undergo further processing to ensure compliance with safety and quality standards for direct food contact.

We believe mechanically recycled PET faces significant challenges in meeting the quality specifications and increasing volume requirements driven by brand commitments and regulatory pressures. Impurities like labels, adhesives, and other types of plastic contained in the waste feedstock compromise the purity of the rPET. While sorting and cleaning technologies help, they are not always effective enough to produce consistently high-quality recycled material. Feedstock limitations also exist because certain PET products, such as colored or multi-layered packaging, are challenging to process mechanically while maintaining quality and consistency, leading to them being sent to landfill or incineration.

A key challenge in mechanical recycling is the degradation of PET's physical properties with each recycling cycle. Processes like shredding, washing, and melting can break down polymer chains, reducing strength and clarity, often leading to "downcycling" where the rPET is limited to lower-value applications rather than being recycled back into bottles or food packaging. Due to the progressive degradation of material properties and the accumulation of impurities, PET can typically only be mechanically recycled a limited number of times before its quality is too poor for further processing or valuable applications. The quality of mechanically recycled PET can vary considerably and often requires blending with virgin PET to meet performance standards. This inconsistency poses difficulties for manufacturers aiming to incorporate rPET into products, particularly for demanding applications like food packaging.

Mechanical recycling does not effectively handle polyester fiber waste. A substantial portion of polyester fiber waste consists of polyester blended with other fibers like cotton or spandex, which mechanical processes are largely ineffective at separating. Additionally, waste polyester fiber often contains dyes, finishes, and other chemicals that cannot be removed through mechanical recycling. Today, most recycled polyester on the market is produced from recycled PET bottles and packaging. A significant portion of PET bottles collected for recycling is diverted into polyester fiber production for textile applications, rather than being recycled back into new bottles.

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We believe these inherent limitations of mechanical recycling further re-enforce the need for depolymerization technologies capable of processing a wider range of PET and polyester fiber waste while yielding high-quality material. Depolymerization is a process in which plastics are broken down into their base monomers through chemical reactions, rather than being physically melted down and reprocessed as in mechanical recycling.

Among existing depolymerization technologies, we believe that Loop's process offers advantages in handling more contaminated feedstock and in its scalability, which differentiates it from other available methods. This belief is supported by available technical information and due diligence on Loop's technology carried out by multiple industry sources. To our knowledge, other existing depolymerization technologies often require high temperatures and pressures, resulting in substantial energy consumption and potential unwanted chemical reactions which can reduce the yield and purity of the recovered monomers.

*<u>Infinite Loop</u>*<u>™</u>*<u>Technology</u>*

Our depolymerization technology breaks down waste PET and polyester fiber into its base monomers DMT and MEG. The monomers are purified and then recombined into virgin quality PET resin suitable for use in food-grade packaging and polyester fiber made from 100% recycled content. Our depolymerization operates at low temperature with no added pressure which enables a wider range of PET and polyester fiber to be recycled. Our technology can recycle a wide range of waste PET plastic bottles and packaging of any color, transparency or condition, as well as polyester textiles such as carpet and clothing that contain dyes, additives, or other textiles blended into the fabrics. We believe that our ability to use contaminated feedstocks that other recycling methods cannot process is an important advantage of our technology.

Loop's depolymerization technology has the potential to create a closed-loop system for PET plastic and polyester fiber waste, whereby they can be recycled an infinite number of times without degrading the quality of the material, unlike mechanical recycling. This is because the DMT and MEG monomers are purified back to their original state prior to being repolymerized.

The Infinite Loop™ Technology is also designed to provide a solution for recycling polyester textile waste, regardless of color or contamination, into 100% recycled virgin-quality polyester. Loop branded polyester fiber can be seamlessly integrated into existing supply chains and manufacturing processes. This closed-loop approach aims to offer a sustainable alternative for the textile industry, addressing the growing issue of textile waste while maintaining high quality and performance.

Loop has been operating its Terrebonne Facility for the past five years producing DMT and MEG. The facility has been achieving consistent monomer recovery, demonstrating the effectiveness of our technology and supplying customers with virgin quality PET resin for packaging and polyester fiber for textiles.

*<u>Agreements with Reed Societe Generale Group</u>*

On December 12, 2024, the Company entered into an Amended and Restated Share Purchase Agreement (the "Amended Agreement") with Reed Management SAS ("Reed"), a European investment firm focused on high impact and technology-enabled infrastructure majority-owned by the bank Societe Generale. The Amended Agreement amends the original Share Purchase Agreement dated May 30, 2024 previously reported by the Company in a current report on Form 8-K filed on June 4, 2024. To facilitate the closing of the transactions contemplated by the Amended Agreement and to develop Infinite Loop™ manufacturing facilities in Europe, a simplified joint-stock company has been incorporated under French law ("Infinite Loop Europe"), owned 90% by Reed Circular Economy ("RCE"), an affiliate of Reed and 10% by Loop.

On December 23, 2024, the Company closed the financing and licensing transactions contemplated by the Amended Agreement. The Company issued and sold 1,044,430 shares of Series B Convertible Preferred Stock at $10.00 per share to RCE. Additionally, the Company entered into a License Agreement with RCE, acting on behalf of Infinite Loop Europe, granting a non-transferable, royalty-bearing license to use Loop's proprietary depolymerization technology for one facility within Europe.

The Company received total cash proceeds of $20,790 (€20,000) on December 23, 2024.

Key terms of the Series B Convertible Preferred Stock include:

● 13% PIK dividend rate

● 5-year term

● Convertible to Loop common stock at $4.75 per share or redeemable in cash

We believe the licensing and financing transactions mark a pivotal step in Loop's commercialization strategy, enabling the deployment of its patented recycling technology across Europe and supporting capital investment in cost-effective manufacturing regions, including its joint venture in India with strategic partner Ester. Proceeds from these transactions are being used to fund the India JV project and Loop's operational cash flow needs.

We further believe the sale of our first license underscores the commercial readiness of Loop's technology, which has been validated by five years of operations at its Terrebonne facility.

On September 23, 2025, Loop entered into a formal agreement with Reed Circular Economy ("RCE") to establish the framework for the governance, ownership, and operations of Infinite Loop Europe SAS ("Infinite Loop Europe"), a European entity formed to pursue the non-exclusive development, financing, construction, ownership, operation, and commercialization of chemical upcycling plants and related products using Loop's technology within Europe. Under this agreement, RCE and Loop hold equity interests in Infinite Loop Europe on a 90/10 basis. In September 2025, Loop purchased 250 shares of Infinite Loop Europe for €0.25 ($0.305) in consideration for its 10% ownership stake. The agreement provides Infinite Loop Europe with priority rights to evaluate European project opportunities, establishes financing arrangements between the shareholders, grants Loop options to participate in up to 50% of project-level equity, and confirms that Loop retains ownership of its intellectual property while granting Infinite Loop Europe limited use rights.

Infinite Loop Europe is managed by a chief executive officer proposed by RCE, with governance provided by a four-member board of directors, of which Loop is entitled to nominate one director and RCE nominates the remaining directors. Certain transactions that could risk the disclosure of Loop's technology, as well as certain related-party transactions, require unanimous board approval. RCE has provided Infinite Loop Europe with a €10 million shareholder loan to fund the first royalty tranche under the license agreement, which accrues payment-in-kind interest at 11.9% per annum and matures on December 27, 2027.

Loop and RCE are actively assessing opportunities for the first Infinite Loop™ facility in Europe. Current activities include evaluating potential project locations, engaging with local and national governments to assess the availability of subsidies and incentives, and identifying potential strategic partners to support the execution of the project.

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*<u>Joint Venture with Ester</u>*

On May 1, 2024, Loop entered into an agreement with Ester, one of India's leading manufacturers of polyester films and specialty polymers, to form a 50/50 India joint venture ("India JV"). The purpose of the India JV is to build and operate an Infinite Loop™ manufacturing facility in India which will produce 100% recycled Loop™ PET resin, using the Infinite Loop™ Technology, in order to meet growing demand from leading global brands in different sectors, including strong demand for textile-to-textile polyester fiber to enable circular fashion for apparel brands, a trend we have observed and anticipate to continue.

Loop and Ester have a well-established working relationship, with Ester producing Loop™ PET using monomers produced at Loop's Terrebonne Facility for global brand companies over the last five years. The India JV intends to leverage the complementary skill sets of each partner by combining Loop's innovative technology and global customer relationships with Ester's nearly 40 years of specialized polymer production, operational proficiency, and local expertise, including sourcing of PET plastic and polyester fiber waste feedstocks. The India facility will leverage the Infinite Loop™ Technology and existing engineering package which should accelerate the lead-time towards groundbreaking.

The planned production capacity of the Infinite Loop™ India facility is 70,000 tons per year of Loop branded PET resin and polyester fiber.

We believe the India JV offers attractive projected economic returns without the need for substantial sustainability-linked premium pricing. Loop and Ester made the decision to incorporate a continuous polymerization line at the Infinite Loop™ India facility. By integrating polymerization assets within the Infinite Loop™ India facility, we expect improved efficiency and lower operating costs with a minimal impact on overall project cost.

Loop and Ester anticipate that the total funding required for the India JV for the purposes of construction, development and operationalization of the project, including the initial working capital requirements, will be financed by a combination of debt and equity capital. Ester and Loop are each contributing 50% of the equity capital of the India JV. As of November 30, 2025, Loop and Ester had each made total equity contributions of $2.91 million in cash to the India JV. The funds injected in the India JV are being used for preliminary project costs, which are mainly engineering fees.

Subject to the terms of the relevant governing documents, Ester will be the exclusive producer of specialty polymers for the India JV, and Loop will be the exclusive seller and marketing agent of the India JV's products. Ester and Loop are working in collaboration on all financing activities for the India JV pursuant to the terms of the agreement.

The India JV will also enter into (i) a technology license agreement with Loop (the "Loop Technology License Agreement"), (ii) a service agreement with Ester, and (iii) a sales and marketing agreement with Loop, each on terms mutually agreed upon by the parties. Pursuant to the Loop Technology License Agreement, the India JV will be granted an exclusive, subject to certain exceptions, license to exploit the Infinite Loop™ Technology in India at a royalty rate set forth in the Loop Technology License Agreement.

Loop has entered into an engineering services agreement with the India JV to provide engineering services and support the local engineering firm. This has resulted in Loop generating engineering services revenue of $0.33 million in the nine-month period ended November 30, 2025. On June 22, 2025, Loop executed a $1.5 million engineering services agreement with the India JV to support it through construction as it moves towards breaking ground on the Infinite Loop™ India facility. The Company commenced performance under this engineering services agreement in November 2025. This new engineering services agreement builds on the initial engineering services agreement with the India JV which was fulfilled over Q4 of fiscal 2025 and Q1 of fiscal 2026, underscoring the role of engineering services in Loop's commercialization strategy as an important and growing source of revenue.

The development of the Infinite Loop™ India facility continues to progress towards groundbreaking. Following the completion of a detailed land study by an external engineering firm, the India JV partners have identified the state of Gujarat, India's synthetic textile capital as the optimal location for the facility based on several key requirements such as infrastructure, proximity to a seaport for exports, renewable energy for a reduction in CO<sub>₂ </sub>emissions and proximity to waste PET and polyester feedstocks.

On August 13, 2025, the India JV executed an agreement with a group of sellers for the acquisition of approximately 93 acres in Gujarat, India, for total consideration of 9,072,000 Indian rupees (approximately US $103,720) per acre. The sellers are obligated to consolidate the parcels, deliver marketable title with requisite governmental approvals, and construct bituminous access road infrastructure, with completion required within five months of execution, subject to extension at India JV's sole discretion. The purchase price is payable through advance payments secured by equitable mortgages over designated parcels, with remaining consideration due upon title transfer. The agreement incorporates customary representations, warranties, and covenants, together with termination provisions permitting India JV to reject non-compliant parcels or terminate for material breach, including failure to deliver contiguous parcels, with full restitution of payments made.

Strategically located within the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), the site offers direct access to abundant polyester textile waste feedstock, a skilled petrochemical workforce, and a streamlined permitting process. Its proximity to a deep-water seaport will further support cost-efficient exports of the India JV's products.

Feedstock sourcing for the facility, of which there is abundant supply from textile waste in India, is well advanced. Loop has signed a multi-year offtake agreement with Nike, Inc., which will serve as an anchor customer for the facility. Loop has also signed an offtake agreement with Taro Plats S.p.A. to supply 100% recycled, virgin-quality Loop™ DMT. Furthermore, the India JV has engaged a leading global advisory firm to manage the debt syndication process for financing the construction of the Infinite Loop™ India facility. The debt financing process is progressing, and term sheets have been received from international lenders.

The front-end engineering design for the Infinite Loop™ India facility was completed by Tata Consulting Engineers. Subsequent to November 30, 2025, the India JV awarded the detailed engineering contract for the Infinite Loop™ India facility to Toyo Engineering India Private Limited, covering the full scope of detailed design, procurement engineering, and technical documentation. This represents the final engineering phase prior to construction. The net total investment cost for the facility, including continuous polymerization, financing costs during construction and initial working capital requirements, is budgeted to be $176 million. The project is anticipated for completion by the end of calendar 2027.

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**Commercialization Strategy** 

Our commercialization strategy to achieve global expansion of the Infinite Loop™ Technology is founded on a combination of direct investments with strategic partners to own and operate commercial facilities and the licensing of our technology.

The global expansion plan for our technology will allow our target customers, mostly comprised of apparel companies and CPG companies, to integrate Loop™ PET resin and polyester fiber into their products and packaging. As countries around the globe continue to impose sustainability targets and recycled content mandates, we observe that companies are increasingly seeking to incorporate sustainably produced materials into their products. Our market strategy is to assist global consumer goods and apparel companies in meeting these requirements as well as their own stated sustainability commitments by offering co-branded packaging or polyester fibers that are made with Loop 100% recycled, virgin-quality PET. We believe that Loop™ recycled PET resin and polyester fiber could command premium pricing over virgin, petroleum-based PET resin and provide attractive economic returns.

The Infinite Loop™ Technology is the key pillar of our commercialization strategy. We believe our technology is well positioned to respond to the global transition away from fossil fuels and petrochemicals and into the circular economy, where PET plastic and polyester fiber are produced by recycling waste polyester that would otherwise typically be destined for landfill or incineration, rather than relying on fossil-based resources.

We have completed our process design package for the Infinite Loop™ full-scale manufacturing facilities to be used as the base engineering platform for all future facilities. We believe this approach allows for quick execution, speed to market, and lends itself well to modular construction. The basic design package has a capacity of up to 70,000 tons of rDMT and 23,000 tons of rMEG, or 70,000 tons of Loop PET and polyester fiber output per year, subject to applicable site-specific permitting, site and regulatory considerations.

We are focused on direct investments in Infinite Loop™ commercial facilities located in low-cost manufacturing regions. By strategically selecting cost-efficient locations, we aim to optimize production costs and improve overall financial performance, while limiting our capital contributions.

This direct investment approach also includes leveraging partnerships to integrate Loop's proprietary technology and sales and marketing expertise with the operational and construction capabilities of experienced partners. We believe this combination of complementary skill sets allows for more efficient project execution, accelerated market adoption, and scalable growth.

We expect that revenue generation from direct investments in commercial facilities will be driven by two key streams: (i) profits from the operation of commercial facilities, and (ii) royalties paid to Loop for licensing its technology and exclusive responsibility of sales and marketing. We believe these income sources will support long-term financial sustainability and growth.

This approach is currently being deployed through the Company's 50/50 joint venture in India with Ester, which is advancing towards the construction of an Infinite Loop™ manufacturing facility. The facility's planned production capacity is 70,000 tons per year of Loop branded PET resin and polyester fiber. The India JV intends to leverage the complementary skill sets of each partner by combining Loop's innovative technology and global customer relationships with Ester's nearly 40 years of specialized polymer production, operational proficiency, and local expertise, including sourcing of PET plastic and polyester fiber waste feedstocks. Loop will grant a royalty-bearing license to the India JV and will be the exclusive seller and marketing agent of the India JV's products.

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We also aim to accelerate the roll-out of the Infinite Loop™ technology through the sale of technology licenses for commercial facilities in which Loop may take limited or no ownership. We expect licensee-owned facilities to allow us to scale our technology efficiently, without requiring significant capital investment from Loop. Revenue generation through technology licensing is expected to come from a combination of up-front and recurring royalties.

This approach focused on licensing is currently being deployed in our European partnership with Reed Societe Generale Group. The Company sold its first technology license to Reed Societe Generale Group for one Infinite Loop™ manufacturing facility in Europe for an initial down payment of €10.0 million with additional milestone payments to be received by Loop as the project advances. Infinite Loop Europe was formed with the purpose of developing Infinite Loop™ manufacturing facilities in Europe to be owned 10% by Loop and 90% by RCE. Loop has the right to increase its ownership in each project developed through Infinite Loop Europe up to 50% subject to a binding commitment.

Additionally, we aim to generate income by providing engineering services throughout all phases of project development, construction, and startup for all Infinite Loop™ commercial facilities, supporting efficient project execution and creating a steady revenue stream prior to the startup of the facility.

Loop has entered into an engineering services agreement with the India JV to provide engineering services and support the completion of the engineering for the planned Infinite Loop™ manufacturing facility in India. This has resulted in Loop generating engineering services revenue of $0.33 million in the nine-month period ended November 30, 2025.

We are also in the process of implementing a modular construction strategy, in order to reduce overall capital expenditures and operating expenses, while improving project timelines and ensuring standardized design and quality, and providing a scalable solution for global expansion. This strategy envisages that we would manufacture plant modules in a low-cost country to be transported and assembled on site at global locations, and would potentially provide an additional income stream alongside returns from owned facilities and royalties.

The Company's ability to move to the next stage of its strategic development, including the construction of manufacturing plants and the commercialization of its technology and products at scale, is dependent on, among other factors, its ability to obtain the necessary financing through a combination of the issuance of equity, project debt, and/or government incentive programs.

**Recent Developments**

*<u>Offtake Agreement with Nike</u>*

In September 2025, we entered into a multi-year offtake agreement NIKE, Inc. ("Nike"), a global leader in athletic footwear and apparel. Under the terms of this agreement, we will supply agreed minimum volumes of Twist™, our virgin-quality circular polyester resin made exclusively from textile waste.

*<u>Offtake Agreement with Taro Plast</u>*

In September 2025, we entered into an offtake agreement with Taro Plast S.p.A. ("Taro Plast"), an Italy-based manufacturer of engineering plastics and compounds. Under this agreement, we will supply Taro Plast with agreed volumes of our 100% recycled, virgin-quality Loop™ DMT produced using our proprietary depolymerization technology at our planned Infinite Loop™ facility in India, once the facility becomes operational. This agreement expands our product offering beyond bottle-grade and fiber-grade PET resin into the specialty polymers market, where Loop™ DMT can be used for automotive and specialty polymer applications. Taro Plast has conducted independent testing confirming the high purity and performance of Loop™ DMT, and is expected to be the first company to integrate Loop™ DMT into their product portfolio.

*<u>Strategic Alliance with Shinkong</u>*

In August 2025, we announced a strategic alliance with Shinkong Synthetic Fibers Corporation ("Shinkong"), a leader in Taiwan's polyester industry and global leader in sustainable polyester yarn solutions. This partnership combines our textile-to-textile manufacturing technology with Shinkong's polyester fiber spinning capabilities and distribution network. Under this alliance, Shinkong will convert our Twist™ polyester resin into high-performance yarns for their network of over 100 customers worldwide, while we can now offer high-quality circular polyester yarns to customers. This collaboration supports our planned Infinite Loop™ India project by providing additional distribution channels and supply chain options for apparel and textile brands across Asian, European, and North American markets.

*<u>Strategic Alliance with Hyosung TNC</u>*

In September 2025, we announced a strategic alliance with Hyosung TNC, a complete sustainable textile solutions provider and the world's largest manufacturer of spandex by market share. This alliance combines our Infinite Loop™ depolymerization technology with Hyosung TNC's expertise in advanced textile materials to expand access to circular polyester through textile-to-textile supply chains. Hyosung TNC will convert our Twist™ polyester resin into performance yarns under its regen™ brand portfolio, trusted by leading brands across fashion, activewear, and other textile markets. The relationship has been established for products from our Terrebonne facility and will be significantly expanded once our planned India Infinite Loop™ facility is operational.

*<u>Launch of Twist</u>*<u>™</u>

During the quarter ended August 31, 2025, the Company announced the launch of Twist™, a new branded circular polyester resin made entirely from textile waste. This product represents a strategic evolution of the Company's fiber-grade PET resin offering, now repositioned to serve the growing textile-to-textile recycling market. Twist™ utilizes the Company's patented depolymerization technology to break down polyester textile waste into base monomers, which are then purified and polymerized into virgin-quality resin that is chemically identical to traditional polyester while providing complete traceability from feedstock to final product. The Company is advancing discussions with apparel brands for offtake agreements from its planned India joint venture facility, where Twist™ will be produced alongside the Company's existing Loop™ branded products.

<u>*At-The-Market Offering*</u>

On July 3, 2025, the Company entered into an At the Market Offering Agreement (the "Sales Agreement") with Roth Capital Partners, LLC ("Sales Agent"), pursuant to which the Company may offer and sell, from time to time, shares of its common stock, par value $0.0001 per share having an aggregate offering price of up to $15 million through the Sales Agent, acting as its agent, or directly to the Sales Agent, acting as principal (the "ATM Equity Offering").

As of November 30, 2025, the Company had sold 510,435 shares of common stock under the Sales Agreement for aggregate gross proceeds of approximately $917,048 and net proceeds of approximately $888,923, after deducting sales agent commissions and other offering expenses. As of November 30, 2025, the Company had approximately $14.1 million of capacity remaining under the ATM Equity Offering.

**Human Capital**

As of November 30, 2025, we had 40 employees of which 16 work in research and development, 16 in engineering and operations, and 8 in administrative functions.

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**Results of Operations**

*All monetary amounts are in thousands of U.S. dollars unless otherwise specified.*

The following table summarizes our operating results for the three-month periods ended November 30, 2025 and 2024, in thousands of U.S. Dollars.

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| | | | |
|:---|:---|:---|:---|
|  | **Three months ended November 30,** | **Three months ended November 30,** | **Three months ended November 30,** |
|  |  |  | Change |
|  | **2025** | 2024 | favorable / (unfavorable) |
| **Revenues** |  |  |  |
| Products | $**-** | $52 | $(52) |
| Services | **86** |  | 86 |
| **Total revenues** | **86** | 52 | 34 |
| **Expenses** |  |  |  |
| Research and development |  |  |  |
| Employee compensation | **653** | 770 | 117 |
| Stock-based compensation | **82** | 106 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Machinery and equipment expenditures |  | 41 | 41 |
| Plant and laboratory operating expenses | **183** | 210 | 27 |
| External engineering | **18** | 86 | 68 |
| Other | **31** | 164 | 133 |
| Total research and development | **967** | 1377 | 410 |
| General and administrative |  |  |  |
| Employee compensation | **418** | 576 | 158 |
| Stock-based compensation | **235** | 224 | (11) |
| Professional fees | **157** | 595 | 438 |
| Insurance | **426** | 453 | 27 |
| Other | **264** | 300 | 36 |
| Total general and administrative | **1500** | 2148 | 648 |
| Impairment of assets | **-** | 8460 | 8460 |
| &nbsp;&nbsp;&nbsp; Loss on equity accounted investment | **65** |  | (65) |
| Depreciation and amortization | **94** | 132 | 38 |
| Interest and other financial expenses | **436** | 110 | (326) |
| Interest income | **(43)** | (23) | 20 |
| Foreign exchange loss (gain) | **11** | (240) | (251) |
| **Total expenses** | **3030** | 11964 | 8934 |
| **Net loss** | $**(2944)** | $(11912) | $8968 |

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**Third Quarter Ended November 30, 2025**

*Revenues*

Revenues for the three-month period ended November 30, 2025, increased $34 to $86, as compared to $52 for the same period in 2024. The revenues of $86 for the three-month period ended November 30, 2025 resulted from engineering services provided to the India JV. The revenues of $52 for the three-month period ended November 30, 2024 resulted from sales of Loop™ PET resin.

*Research and Development*

Research and development expense for the three-month period ended November 30, 2025, decreased $410 to $967, as compared to $1,377 for the same period in 2024. The decrease was primarily attributable to a $68 decrease in external engineering expenses for design work for our Infinite Loop™ manufacturing process, and a $117 decrease in employee compensation expenses.

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*General and administrative expenses*

General and administrative expenses for the three-month period ended November 30, 2025, decreased $648 to $1,500, as compared to $2,148 for the same period in 2024. The decrease was primarily attributable to a $438 decrease in professional fees, which was mainly attributable to legal costs related to our partnerships with Reed Societe Generale Group and Ester incurred in the three-month period ended November 30, 2024, and a $158 decrease in employee compensation.

*Interest and other financial expenses*

Interest and other financial expenses increased by $326 for the three-month period ended November 30, 2025. This increase is mainly attributable to the accrued PIK dividend on the Series B Convertible Preferred Stock issued to RCE recorded as an interest expense for $360 in the three-month period ended November 30, 2025 (2024 – nil).

*Net Loss*

The net loss for the three-month period ended November 30, 2025, decreased $8,968 to $2,944, as compared to $11,912 for the same period in 2024. This decrease was primarily due to the decrease of $410 in research and development expenses, a decrease of $648 in general and administrative expenses, and a decrease of $8,460 in the prior year quarter due to an impairment charge for machinery and equipment. These decreases were partially offset by the $326 increase in interest and other financial expenses.

**Nine Months Ended November 30, 2025**

The following table summarizes our operating results for the nine-month periods ended November 30, 2025 and 2024, in thousands of U.S. Dollars.

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| | | | |
|:---|:---|:---|:---|
|  | **Nine months ended November 30,** | **Nine months ended November 30,** | **Nine months ended November 30,** |
|  | **2025** | 2024 | Change |
| **Revenues** |  |  |  |
| Products | $**8** | $81 | $(73) |
| Services | **330** |  | 330 |
| **Total revenues** | **338** | 81 | 257 |
| **Expenses** |  |  |  |
| Research and development |  |  |  |
| Employee compensation | **1951** | 2647 | 696 |
| Machinery and equipment expenditures | **2** | 44 | 42 |
| Stock-based compensation | **426** | 367 | (59) |
| Plant and laboratory operating expenses | **562** | 677 | 115 |
| External engineering | **82** | 1365 | 1283 |
| Other | **159** | 459 | 300 |
| Total research and development | **3182** | 5559 | 2377 |
| General and administrative |  |  |  |
| Professional fees | **1130** | 2858 | 1728 |
| Employee compensation | **1411** | 1796 | 385 |
| Stock-based compensation | **545** | 695 | 150 |
| Insurance | **1301** | 1421 | 120 |
| Other | **631** | 884 | 253 |
| Total general and administrative | **5018** | 7654 | 2636 |
| Impairment of assets | **-** | 8460 | 8460 |
| Loss on equity accounted investment | **410** |  | (410) |
| Depreciation and amortization | **290** | 398 | 108 |
| Interest and other financial expenses | **1273** | 289 | (984) |
| Interest income | **(212**) | (155) | 57 |
| Foreign exchange loss (gain) | **(28**) | (184) | (156) |
| **Total expenses** | **9933** | 22021 | 12088 |
| **Net loss** | $**(9595**) | $(21940) | $12345 |

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*Revenues*

Revenues for the nine-month period ended November 30, 2025, increased $257 to $338, as compared to $81 for the same period in 2024. The revenues for the nine-month period ended November 30, 2025 resulted from $330 in engineering fees and $8 from sales of Loop™ PET resin produced using monomers manufactured at the Terrebonne Facility. The revenues of $81 for the nine-month period ended November 30, 2024 resulted from sales of Loop™ PET resin.

*Research and Development*

Research and development expense for the nine-month period ended November 30, 2025, decreased $2,377 to $3,182, as compared to $5,559 for the same period in 2024. The decrease was primarily attributable to a $1,283 decrease in external engineering expenses for design work for our Infinite Loop™ manufacturing process, and a $696 decrease in employee compensation expenses, partially offset by a $59 increase in stock-based compensation expenses.

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*General and administrative expenses*

General and administrative expenses for the nine-month period ended November 30, 2025, decreased $2,636 to $5,018, as compared to $7,654 for the same period in 2024. The decrease was primarily attributable to a $1,728 decrease in professional fees, which was mainly due to legal costs related to our partnerships with Reed Societe Generale Group and Ester incurred in the nine-month period ended November 30, 2024, a decrease of $385 in employee compensation expenses and a $150 decrease in stock-based compensation expense.

*Loss on equity accounted investment*

Loss on equity accounted investment increased by $410 for the nine-month period ended November 30, 2025. This loss relates to the Company's 50% portion of the loss incurred by the India JV for the nine-month period ended November 30, 2025, during which the India JV incurred preliminary project costs for the planned Infinite Loop™ facility in India, which are mainly engineering fees.

*Interest and other financial expenses*

Interest and other financial expenses increased by $984 for the nine-month period ended November 30, 2025. This increase is mainly attributable to the accrued PIK dividend on the Series B Convertible Preferred Stock issued to RCE recorded as an interest expense for $1,041 in the nine-month period ended November 30, 2025 (2024 – nil).

*Net Loss*

The net loss for the nine-month period ended November 30, 2025, decreased $12,345 to $9,595, as compared to $21,940 for the same period in 2024. This decrease was primarily due to the decrease of $2,636 in general and administrative expenses, a decrease of $2,377 in research and development expenses, and a decrease of $8,460 in the prior year due to an impairment charge for machinery and equipment. These decreases were partially offset by a $984 increase in interest and other financial expenses and the increase of $410 in loss on equity accounted investment.

**GOING CONCERN AND CAPITAL RESOURCES**

*All monetary amounts are in thousands of U.S. dollars unless otherwise specified.*

&nbsp;&nbsp;&nbsp;&nbsp; *Going concern*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; These unaudited interim condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and settlement of liabilities in the normal course of business as they come due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the date of issuance of these consolidated financial statements.

Since its inception, the Company has been in the pre-commercialization stage with no recurring revenues, and its ongoing operations and commercialization plans have been financed primarily by raising equity and debt. The Company has recurring net losses, negative cash flow from operating activities since its inception, and a net capital deficiency. Management continuously monitors the Company's cash resources against its cash commitments to determine whether there is sufficient liquidity to fund its costs for at least twelve months from the financial statement issuance date. In preparing this going concern assessment in accordance with US GAAP, the Company included cash flows that meet the 'probable' threshold under ASC 205-40 in its going concern evaluation and has excluded forecasted cash flows that lack substantive support or binding commitments.

Management has determined that current cash and cash equivalents on hand of $5,204, together with the $2,504 available under its undrawn credit facility, will not be sufficient to fund the Company's ongoing operations, obligations and commitments for the next twelve months from the date of issuance of these unaudited interim condensed consolidated financial statements. These events and conditions are material uncertainties that raise substantial doubt upon the Company's ability to continue as a going concern and, accordingly, the appropriateness of the use of accounting principles applicable to a going concern.

The Company's ability to continue as a going concern and execute upon management's plans to move to the next stage of its strategic development is dependent on, among other factors, whether the Company can obtain the necessary financing through a combination of the issuance of debt and/or equity, technology licensing and engineering services arrangements, and/or financing from government incentive programs. While the Company is actively engaged in financing discussions, there is no assurance that the Company will be successful in attracting additional funding on terms acceptable to the Company.

These unaudited interim condensed consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material.

*Sale and issuance of Series B CPS*

On December 23, 2024 (the "Issuance Date"), the Company issued and sold 1,044,430 shares of Series B CPS at $10.00 per share to Reed Circular Economy (the "Holder"), an affiliate of Reed Societe Generale Group, for cash proceeds of $10,395 (€10,000). The main features of the Series B CPS are as follows:

● Automatic conversion of the stated value ($10,395 on the Issuance Date) on the fifth anniversary of the Issuance Date into shares of the Company's common stock at a conversion price of $4.75 per share;

● Accrues a cumulative fixed annual PIK dividend at a rate of 13% of the stated value, which is added to the stated value of the Series B CPS on September 30 of each year;

● Redeemable in cash at any time, starting after the third anniversary of the Issuance Date by the Company (issuer call option);

● Redeemable in cash on the fifth anniversary of the Issuance Date at the option of the Holder (put feature); and

● Voting rights equal to the number of whole shares of the Company's common stock (rounded to the nearest whole share) into which the stated value of Series B CPS would be convertible on a given date; and separate class voting rights on certain matters such as amendments to the Certificate of Designation or Articles of Incorporation that adversely affect the rights of the Series B CPS, as long as at least 50,000 shares of Series B CPS are outstanding.

The foregoing summary does not purport to be complete and is qualified in its entirety by reference to the full text of the Certificate of Designation, which was filed as Exhibit 3.1 to our Current Report on Form 8-K filed with the SEC on December 26, 2025.

*Investissement Qu*é*bec financing facility*

We have a long-term debt obligation to Investissement Québec in connection with a financing facility (the "Financing Facility") for the expansion of the Terrebonne Facility up to a maximum of $3,291. We received the first disbursement in the amount of $1,580 on February 21, 2020 and the second disbursement in the amount of $1,710 on August 26, 2021. The loan can be repaid at any time by us without penalty. The loan's interest rate was initially set at 2.36% and there was a 36-month moratorium on both capital and interest repayments as of the first disbursement date. Under the original terms of the Financing Facility, at the end of the 36-month moratorium, capital and interest was repayable in 84 monthly installments. There is no remaining amount available under the Financing Facility after the second disbursement.

On November 21, 2022, the Company and Investissement Québec entered into an agreement to amend the existing Financing Facility which modifies the repayments of the principal amount (the "Financing Facility Amendment"). As per the Financing Facility Amendment, a total of $36 of the principal amount was repayable in monthly installments in the fiscal year ended February 29, 2024, with the remainder of the principal amount being repayable in 72 monthly installments.

On February 28, 2024, the Company and Investissement Québec entered into an agreement to amend the existing Financing Facility which modifies the repayments of the principal amount (the "Second Financing Facility Amendment"). As per the Second Financing Facility Amendment, a total of $72 of the principal amount was repayable in monthly installments in the fiscal year ended February 28, 2025, with the remainder of the principal amount being repayable in 60 monthly installments. Pursuant to the Second Financing Facility Amendment the interest rate of the Financing Facility was increased from 2.36% to 3.36%.

On February 5, 2025, the Company and Investissement Québec entered into an agreement to amend the existing Financing Facility which modifies the repayments of the principal amount (the "Third Financing Facility Amendment"). As per the Third Financing Facility Amendment, total annual principal repayments in monthly installments are of $301 for the fiscal year ending February 28, 2026 and $519 for the fiscal year ending February 28, 2027, with the remainder of the principal amount being repayable in 36 monthly installments. Pursuant to the Third Financing Facility Amendment the interest rate of the Financing Facility was increased from 3.36% to 4.36%.

Under the original terms of the Financing Facility, the principal amount was repayable in 84 monthly installments beginning in March of 2023. The amendments do not modify the repayment terms of accrued interest or any of the other terms of the Financing Facility that are not mentioned above. The amendments did not meet the criteria of ASC 470, *Debt* for an extinguishment of debt as the amendments did not substantially modify the terms of the Financing Facility. The Company therefore applied modification accounting and no immediate gain or loss was recognized related to the amendments.

*Credit facility from a Canadian bank*

On July 26, 2022, Loop Canada, Inc., a wholly-owned subsidiary of the Company, entered into an Operating Credit Facility (the "Credit Facility") with a Canadian bank. The Credit Facility allows for borrowings of up to $2,504 in aggregate principal amount. The Credit Facility is secured by the Company's Terrebonne, Québec property and was initially subject to a minimum equity covenant, tested quarterly. All borrowings under the Credit Facility will bear interest at an annual rate equal to the bank's Canadian prime rate plus 1.0%. As at November 30, 2025, the $2,504 Credit Facility was available and undrawn.

On July 4, 2025, the Borrower, the Company and the Canadian bank executed an amendment to the Credit Facility, modifying the minimum equity covenant to include the balance of Series B Convertible Preferred Stock as at February 28, 2025 of $10,647 in the calculation of stockholders' equity.

On October 10, 2025, the Borrower, the Company and the Canadian bank executed an amendment to the Credit Facility, which removed the minimum equity covenant tested quarterly for the duration of the term of the Credit Facility.

*At-the-Market Offering*

During the three months ended November 30, 2025, the Company issued and sold an aggregate of 394,077 shares of its common stock pursuant to its ATM Equity Offering program for aggregate gross proceeds of approximately $724. After deducting sales agent commissions and other offering expenses totaling approximately $22, the Company received net proceeds of approximately $702 from such sales. The shares were sold at prevailing market prices at the time of sale, with an average selling price of $1.84 per share. The net proceeds from these equity transactions were used for general corporate purposes. The Company may, from time to time, continue to utilize its ATM Equity Offering program to raise additional capital, subject to market conditions and the Company's capital needs, though there can be no assurance as to if or when any additional sales may occur under the program.

**Flow of Funds**

*Summary of Cash Flows*

A summary of cash flows for the nine months ended November 30, 2025 and 2024 was as follows, in thousands of U.S. Dollars:

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended November 30,** | **Nine Months Ended November 30,** |
|  | **2025** | 2024 |
| Net cash used in operating activities | $**(7372)** | $(8635) |
| Net cash used in investing activities | **(1159)** | (86) |
| Net cash provided by (used in) financing activities | **738** | 2312 |
| Effect of exchange rate changes on cash | **24** | (226) |
| Net decrease in cash | $**(7769)** | $(6635) |

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*Net Cash Used in Operating Activities*

During the nine-month period ended November 30, 2025, we used $7,372 in operations compared to $8,635 during the nine-month period ended November 30, 2024. As discussed above in the Results of Operations, the year-over-year decrease is mainly due to decreased operating expenses as we have completed the upgrade of the Terrebonne Facility and our basic design package for the Infinite Loop™ full-scale manufacturing facilities, and lower legal costs related to forming our partnerships with Reed Societe Generale Group and Ester.

*Net Cash Used in Investing Activities*

During the nine months ended November 30, 2025, we used $1,159 in investing activities compared to $86 during the nine-month period ended November 30, 2024. During the nine-month period ended November 30, 2025, we made investments in intangible assets of $199, as compared to $454 for the same period in 2024, particularly to file patents for the Infinite Loop™ technology in the United States and around the world. Additionally, we made investments of $960 in our joint venture with Ester during the nine-month period ended November 30, 2025, as compared to $nil for the same period in 2024.

*Net Cash Provided by (Used in) Financing Activities*

During the nine months ended November 30, 2025, we repaid $215 of long-term debt and received net proceeds from our ATM Equity Offering of $889. During the nine months ended November 30, 2024, we borrowed $2,372 under the Credit Facility and we repaid $60 of long-term debt.

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**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a "smaller reporting company," as defined by Rule 229.10(f)(1).

**ITEM 4. CONTROLS AND PROCEDURES**

**Management's Evaluation of our Disclosure Controls and Procedures** 

**A. Evaluation of Disclosure Controls and Procedures**

Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in our reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

As of the end of the period covered by this Quarterly Report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Interim Chief Financial Officer, of the effectiveness of the design and operation of the Company's "disclosure controls and procedures" (as defined in Rule 13a-15(e) of the Exchange Act), pursuant to Rule 13a-15(b) of the Exchange Act. Based upon that evaluation, the Chief Executive Officer and Interim Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of November 30, 2025.

**B. Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting during the quarter ended November 30, 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13

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**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

**SEC Investigation**

As previously disclosed, we received a subpoena from the SEC in October 2020 requesting certain information from us, including information regarding testing, testing results and details of results from our GEN I and GEN II technologies, and certain of our partnerships and agreements. In March 2022, we received a second subpoena requesting additional information, including information concerning our reverse-merger in 2015, and communications with certain individuals and entities. There have been no additional information requests from the SEC relating to the Company's business or technology.

The SEC informed us that its investigation does not mean that the SEC has concluded that anyone has violated the law and that the investigation does not mean that the SEC has a negative opinion of us. We cannot predict when this matter will be resolved or what, if any, action the SEC may take following the conclusion of the investigation.

On September 30, 2022, the SEC filed a complaint (the "SEC complaint") against several named defendants ("Defendants"), and also identified as a relief defendant Daniel Solomita, our Chief Executive Officer. The SEC complaint does not allege wrongdoing by the Company or Mr. Solomita. The SEC complaint identifies Mr. Solomita and an entity he owns as relief defendants because they purportedly received monies from the Defendants in 2015 that the SEC alleges were derived from the Defendants' fraud. The SEC complaint does not allege that Mr. Solomita was aware of the alleged wrongdoing by the Defendants and does not allege that he was aware that any alleged monies received were derived from fraud.

**Litigation**

From time to time, we may become involved in various lawsuits and legal proceedings or investigations which arise in the ordinary course of business. Except as noted above, we are not presently a party to any legal proceedings, government actions, administrative actions, investigations or claims that are pending against us or involve us that, in the opinion of our management, could reasonably be expected to have a material adverse effect on our business, financial condition or operating results. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

It is possible that we may expend financial and managerial resources in the defense of our intellectual property rights in the future if we believe that our rights have been violated. It is also possible that we may expend financial and managerial resources to defend against claims that our products and services infringe upon the intellectual property rights of third parties.

**ITEM 1A. RISK FACTORS**

We are subject to various risks and uncertainties in the course of our business. Risk factors relating to us are set forth under "Risk Factors" in our 2025 Annual Report. No material changes to such risk factors have occurred during the three months ended November 30, 2025. An additional risk factor is included below in connection with the prior launch of our ATM Equity Offering.

***The sale or issuance of our common stock in an at-the-market offering, pursuant to an At the Market Offering Agreement ("Sales Agreement") with Roth Capital Partners, LLC, may cause dilution and the sale of the shares of common stock sold pursuant to the Sales Agreement, or the perception that such sales may occur, could cause the price of our common stock to fall.***

On July 3, 2025, the Company entered into an At the Market Offering Agreement with Roth Capital Partners, LLC ("Sales Agent"), under which we may offer and sell shares of our common stock having an aggregate offering price of up to $15 million from time to time through or to the Sales Agent, acting as our sales agent or principal

Under the Sales Agreement, we will set the parameters for the sale of shares, including the number of shares to be issued, the time period during which sales are requested to be made, limitation on the number of shares that may be sold in any one trading day and any minimum price below which sales may not be made. Subject to the terms and conditions of the Sales Agreement, the Sales Agent may sell the shares by methods deemed to be an "at-the-market" offering as defined in Rule 415 promulgated under the Securities Act, including sales made directly on or through The Nasdaq Global Market, the existing trading market for the Company's common stock, sales made to or through a market maker other than on an exchange or otherwise, directly to the Sales Agent as principal, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices, and/or in any other method permitted by law. The Sales Agreement provides that the Sales Agent will be entitled to compensation for its services in an amount equal to 3.0% of the gross proceeds from the sale of shares sold under the Sales Agreement.

Depending on market liquidity at the time, sales of shares under the Sales Agreement may cause the trading price of our common stock to fall. Additionally, further sales of our common stock, if any, under the Sales Agreement will depend upon market conditions and other factors to be determined by us. We ultimately may sell all, some or none of the shares of our common stock that may be sold pursuant to the Sales Agreement and, after such shares have been sold, the purchasers may sell all, some or none of those shares. Therefore, sales under the Sales Agreement could result in substantial dilution to the interests of other holders of our common stock. Additionally, the sale of a substantial number of shares of our common stock under the Sales Agreement, or the anticipation of such sales, could make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish to effect such sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14

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**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM *5.* OTHER INFORMATION**

During the *three* months ended *November 30, 2025*, no director or officer of the Company adopted or terminated a "Rule *10b5*-*1* trading arrangement" or "non-Rule *10b5*-*1* trading arrangement," as each term is defined in Item *408* of Regulation S-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15

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**ITEM 6. EXHIBITS**

The following Exhibits, as required by Item 601 of Regulation SK, are attached or incorporated by reference, as stated below.

**Exhibit Index**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |  |
| **Number** | **Description** | **Form** | **File No.** | **Filing Date** | **Exhibit No.** |
| [<u>3.1</u>](http://www.sec.gov/Archives/edgar/data/1504678/000165495424007029/loop_ex31.htm) | [<u>Articles of Incorporation, as amended to date</u>](http://www.sec.gov/Archives/edgar/data/1504678/000165495424007029/loop_ex31.htm) | 10-K | 001-38301 | May 29, 2024 | 3.1 |
| [3.2](http://www.sec.gov/Archives/edgar/data/1504678/000165495424015913/loop_ex31.htm) | [Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock.](http://www.sec.gov/Archives/edgar/data/1504678/000165495424015913/loop_ex31.htm) | 8-K | 001-38301 | &nbsp;&nbsp;&nbsp;December 26, 2024 | 3.1 |
| [3.3](http://www.sec.gov/Archives/edgar/data/1504678/000147793218001717/llpp_ex31.htm) | [By-laws, as amended to date](http://www.sec.gov/Archives/edgar/data/1504678/000147793218001717/llpp_ex31.htm) | 8-K | 001-38301 | April 10, 2018 | 3.1 |
| [10.1\*](ex_907373.htm) | [Securityholders Agreement, dated September 23, 2025, by and among the Company, Reed Circular Economy and each other person who from time to time becomes a Securityholder, with Infinite Loop Europe SAS and Mr. Daniel Solomita.](ex_907373.htm) |  | Filed herewith |  |  |
| [<u>31.1</u>](ex_887393.htm) | [<u>Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](ex_887393.htm) |  | Filed herewith |  |  |
| [<u>31.2</u>](ex_887394.htm) | [<u>Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](ex_887394.htm) |  | Filed herewith |  |  |
| [<u>32.1</u>](ex_887395.htm) | [<u>Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](ex_887395.htm) |  | Furnished herewith |  |  |
| [<u>32.2</u>](ex_887396.htm) | [<u>Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](ex_887396.htm) |  | Furnished herewith |  |  |
| 101.INS | Inline XBRL Instance Document |  | Filed herewith |  |  |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |  | Filed herewith |  |  |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  | Filed herewith |  |  |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |  | Filed herewith |  |  |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |  | Filed herewith |  |  |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  | Filed herewith |  |  |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |  | Filed herewith |  |  |

---

\* Portions of this document (indicated by "[\*\*\*]") have been omitted because such information is not material and is the type of information that the registrant treats as private or confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: January 14, 2026 | By: | */s/ Daniel Solomita* |
|  | Name: | Daniel Solomita |
|  | Title: | President and Chief Executive Officer, and Director (Principal Executive Officer) |
| Date: January 14, 2026 | By: | */s/ Mike De Notaris* |
|  | Name: | Mike De Notaris |
|  | Title: | Interim Chief Financial Officer (Principal financial officer and principal accounting officer) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17

## Exhibit 10.1

**Exhibit 10.1**

**Pursuant to Item 601(b)(10)(iv) of Regulation S-K, certain confidential information has been excluded from this document because Loop Industries, Inc. (**"**Company**"**) has determined that the information (i) it is both not material and (ii) is the type that the Company treats as private or confidential. Such information is marked in the document by exhibit with an asterisk [\*\*\*].**

**Confidential**

**Dated September, 23, 2025**

------

**LOOP INDUSTRIES, INC.**

**and**

**REED CIRCULAR ECONOMY** 

**and**

**EACH OTHER PERSON WHO FROM TIME TO TIME BECOMES A SECURITYHOLDER**

**In the presence of**

**INFINITIE LOOP EUROPE SAS**

**and**

**MR. DANIEL SOLOMITA**

**SECURITYHOLDERS AGREEMENT**

------

**Contents**

---

| | | | |
|:---|:---|:---|:---|
| **Section** |  |  | **Page** |
| Article 1 Interpretation | Article 1 Interpretation | Article 1 Interpretation | 2 |
|  | 1.1 | Definitions | 2 |
|  | 1.2 | Reclassification of Securities | 11 |
|  | 1.3 | Gender and Number | 11 |
|  | 1.4 | Certain Phrases and Calculation of Time | 11 |
|  | 1.5 | Headings etc. | 12 |
|  | 1.6 | Currency | 12 |
|  | 1.7 | Accounting Terms | 12 |
|  | 1.8 | Statutory References | 12 |
|  | 1.9 | Recitals and Exhibits | 12 |
|  | 1.10 | No Presumption | 12 |
|  | 1.11 | Governing Law | 12 |
| Article 2 Business of the Group | Article 2 Business of the Group | Article 2 Business of the Group | 13 |
| Article 3 Scope of Agreement and Share Ownership | Article 3 Scope of Agreement and Share Ownership | Article 3 Scope of Agreement and Share Ownership | 13 |
|  | 3.1 | Representations and Warranties of Reed Investco | 13 |
|  | 3.2 | Representations and Warranties of Loop Industries | 14 |
|  | 3.3 | Representations and Warranties of DS | 15 |
|  | 3.4 | Covenants of the Parties | 16 |
|  | 3.5 | Consent and Covenants of the Corporation | 18 |
|  | 3.6 | Survival | 18 |
| Article 4 Management of the Corporation | Article 4 Management of the Corporation | Article 4 Management of the Corporation | 18 |
|  | 4.1 | General Principles | 18 |
|  | 4.2 | Board | 18 |
|  | 4.3 | Vacancies on the Board | 18 |
|  | 4.4 | Meeting of Directors | 19 |
|  | 4.5 | Chairperson of the Board | 20 |
|  | 4.6 | Decisions of the Board | 20 |
|  | 4.7 | Directors' Compensation | 20 |
|  | 4.8 | Board Reserved Matters | 21 |
|  | 4.9 | Meetings of Shareholders | 21 |
|  | 4.10 | Securityholders' Decisions | 22 |
|  | 4.11 | Officers | 22 |
|  | 4.12 | Financial Statements | 23 |
|  | 4.13 | Right to an Audit | 23 |
|  | 4.14 | Books and Records | 24 |
| Article 5 Corporate Finance and Capital Requirements | Article 5 Corporate Finance and Capital Requirements | Article 5 Corporate Finance and Capital Requirements | 24 |
|  | 5.1 | Shareholder Loan | 24 |
| Article 6 Restrictions on Transfer | Article 6 Restrictions on Transfer | Article 6 Restrictions on Transfer | 26 |
|  | 6.1 | Lock-Up Period | 26 |
|  | 6.2 | Free Transfers | 27 |
|  | 6.3 | Pledge of Securities | 27 |
|  | 6.4 | Deemed Consent | 28 |
|  | 6.5 | Prohibited Third Party Buyers | 28 |
|  | 6.6 | Stapling – Transfer of Securities and Shareholder Loan | 28 |
| Article 7 Securities Sales and Right of First Refusal - Drag Along Right | Article 7 Securities Sales and Right of First Refusal - Drag Along Right | Article 7 Securities Sales and Right of First Refusal - Drag Along Right | 28 |
|  | 7.1 | Right of First Refusal | 28 |
|  | 7.2 | Acceptance of Offer | 29 |

---

------

---

| | | |
|:---|:---|:---|
| 7.3 | Right to Sell Offered Securities to Third Party | 31 |
| 7.4 | Mandatory Purchase by Third Party: Tag-Along Right | 31 |
| 7.5 | Drag-Along Right | 33 |
| Article 8 Call and Put Option Right | Article 8 Call and Put Option Right | 34 |
| 8.1 | Call and Put Option Right in case of Change of Control | 34 |
| 8.2 | Calculation of Purchase Price | 35 |
| 8.3 | Closing | 35 |
| Article 9 Procedure For Sale Of Securities | Article 9 Procedure For Sale Of Securities | 35 |
| 9.1 | Application of Sale Provisions | 35 |
| 9.2 | Obligations of Seller | 35 |
| 9.3 | Seller Representations and Warranties | 36 |
| 9.4 | Deliveries to Seller | 37 |
| 9.5 | Payment of Purchase Price | 37 |
| 9.6 | Non-Compliance With Certain Conditions | 37 |
| 9.7 | Non-Completion by Seller | 38 |
| 9.8 | No solidarity | 38 |
| Article 10 Fair Market Value | Article 10 Fair Market Value | 38 |
| 10.1 | Purchase Price for Securities | 38 |
| 10.2 | Meaning of Fair Market Value | 38 |
| 10.3 | Determination of Fair Market Value | 39 |
| 10.4 | Cost and Expenses | 39 |
| 10.5 | Extended Meaning | 39 |
| Article 11 Anti-dilution | Article 11 Anti-dilution | 40 |
| Article 12 Restrictive Covenants | Article 12 Restrictive Covenants | 40 |
| 12.1 | Non-Interference | 40 |
| 12.2 | Confidentiality | 40 |
| 12.3 | Remedies | 41 |
| Article 13 Priority Rights and Opportunities | Article 13 Priority Rights and Opportunities | 42 |
| 13.1 | Priority Rights | 42 |
| Article 14 Strategic Transactions | Article 14 Strategic Transactions | 42 |
| 14.1 | Rendez-Vous Clause Regarding Strategic Transactions | 42 |
| Article 15 Dispute Resolution | Article 15 Dispute Resolution | 42 |
| 15.1 | Best Endeavours to Settle Disputes | 42 |
| 15.2 | Efforts to Settle Disputes | 43 |
| 15.3 | Litigation | 43 |
| Article 16 Miscellaneous | Article 16 Miscellaneous | 43 |
| 16.1 | Term of Agreement | 43 |
| 16.2 | Notice | 44 |
| 16.3 | Liability | 45 |
| 16.4 | No Third Party Beneficiaries | 46 |
| 16.5 | No Agency or Partnership | 46 |
| 16.6 | Expenses | 46 |
| 16.7 | Tax | 46 |
| 16.8 | Waiver | 46 |
| 16.9 | Entire Agreement | 46 |
| 16.10 | Successors and Assigns | 47 |
| 16.11 | Independent advice | 47 |
| 16.12 | Variation – Termination | 47 |
| 16.13 | Severability | 48 |
| 16.14 | Further Assurances | 48 |
| 16.15 | Cooperation | 48 |
| 16.16 | Electronic signature | 49 |

---

------

**EXHIBITS**

---

| | | |
|:---|:---|:---|
| Exhibit | (D) | Securityholders' interests in the Corporation (including Shares and Shareholder Loan) and the Corporation's interests in Loop Industries |
| Exhibit | 1.1(jjj) | Terms and Conditions of the Loop Industries Convertible Preferred Stocks |
| Exhibit | 1.1(kkk) | Loop Technology |
| Exhibit | 1.1(qqqq) | Restricted Person |
| Exhibit | 3.4(d)(i) | Indemnification Matters |
| Exhibit | 5.1(a) | Form of Shareholder Loan Agreement |
| Exhibit | 6.2 | Forms of Agreement to be bound |
| Exhibit | 7.1(a) | Loop Industries Marks |
| Exhibit | 13.1(a) | Priority Rights Protocol |
| Exhibit | 16.9 | Loop Europe: Key Commercial Terms |

---

------

**THIS SECURITYHOLDERS AGREEMENT** is dated September, 23, 2025 and made between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **LOOP INDUSTRIES, INC.**, a corporation formed under the Laws of Nevada having its principal offices at 480 Fernand-Poitras Terrebonne, Québec, Canada J6Y 1Y4, registered with the Nevada Secretary of State under number E0108512010-6 ()"**Loop Industries** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **REED CIRCULAR ECONOMY**, a simplified joint-stock company (*soci* é *t* é *par actions simplifi* é *e*) formed under the Laws of France, having its registered office at 15 rue Soufflot 75005 Paris, France, with a share capital of 3,500 euros, registered with the *Registre du commerce et des soci* é *t* é *s* of Paris under number 938 289 048 R.C.S Paris ()"**Reed Investco** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Each other Person who from time to time becomes a Securityholder and executes an Agreement To Be Bound;

**IN THE PRESENCE OF:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) **INFINITE LOOP EUROPE SAS**, a simplified joint-stock company (*soci* é *t* é *par actions simplifi* é *e*) formed under the Laws of France, having its registered office at 15 rue Soufflot 75005 Paris, France, with a share capital of 2,500 euros, registered with the *Registre du commerce et des soci* é *t* é *s* of Paris under number 938 849 593 R.C.S PARIS (the "**Corporation** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) **MR. DANIEL SOLOMITA**, a businessman having its professional address at 480 Fernand-Poitras Terrebonne, Québec, Canada J6Y 1Y4 ()"**DS** ").

**RECITALS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Loop Industries and Reed Management have entered into a memorandum of understanding dated January 15, 2024 contemplating a partnership through the establishment of the Corporation as a joint venture to be held on a 50/50 basis by Reed Investco and Loop Industries. However, Loop Industries and Reed Management have finally decided that the Corporation shall be held on a 90/10 basis by Reed Investco and Loop Industries and to amend some terms of their partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In that context, Loop Industries and Reed Investco entered into an amended and restated share purchase agreement dated December, 12, 2024 (the "**Purchase Agreement**") whereby Reed Investco has undertaken to sell to Loop Industries 250 Ordinary Shares of the Corporation representing 10% of the share capital and voting rights of the Corporation (on a fully diluted basis).

Pursuant to the Purchase Agreement, Loop Industries has purchased from Reed Investco, 250 Ordinary Shares representing 10% of the share capital and voting rights of the Corporation, on the date hereof (that is September, 23 2025) (on a fully diluted basis).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) On the date hereof, the share capital of the Corporation consists of 2,500 Ordinary Shares, which are issued and are outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The Securityholders' interests in the Corporation (including Shares and Shareholder Loan) are allocated as at the date hereof as set out in <u>Exhibit (D)</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) The Parties have entered into this Agreement for the purpose of setting out, *inter alia*, the respective rights and obligations of the Parties arising out of, or in connection with, the ownership and transfer of Securities.

**NOW THEREFORE** in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration (the receipt and sufficiency of which are acknowledged), the Parties agree as follows:

**Article 1**<br> **Interpretation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** **Definitions** 

In this Agreement, including the Recitals and the Exhibits, unless the context otherwise requires, the following words and expressions have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Additional Notice**" has the meaning specified in Section 7.2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Affected Loop Securityholder**" has the meaning specified in Section 8.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Affected Reed Securityholder**" has the meaning specified in Section 8.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Affected Securityholder**" has the meaning specified in Section 8.1(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Affiliate**" of any Person means any other Person who, directly or indirectly, Controls, or is Controlled by, or is under common Control with, such Person, it being specified that (i) Reed Investco's Affiliates shall include any Entity managed or advised by Reed Management and/or its Affiliates, and (ii) Loop Industries' Affiliates shall be limited to the Entities Controlled, directly or indirectly, by Loop Industries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Agreement**" means this securityholders agreement and all schedules and exhibits attached to it as the same may be amended, restated, replaced, supplemented or novated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Agreement To Be Bound**" means a written agreement (or a counterpart of this Agreement), substantially in the form set out in <u>Exhibit</u> <u> </u> <u>6.2</u>, pursuant to which a Person agrees, *inter alia*, to be bound by the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Appointing Director**" has the meaning specified in Section 4.4(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Articles**" means the articles of association of the Corporation (*statuts*) dated September, 23, 2025 as such articles of association may from time to time be amended, replaced or superseded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Auditor**" means the auditor (*commissaire aux comptes titulaire*) of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Authorized Third Party**" means any third party duly authorized by Loop Industries, to license or sub-license the Loop Technology within the Territory.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Board**" means, at any time, the board of directors (*conseil d* ' *administration*) of the Corporation constituted in accordance with the Articles and this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Board Reserved Matters**" means those decisions to be resolved upon by the Board listed in Section 4.8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Business**" has the meaning specified in Article 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Business Day**" means a calendar day on which commercial banks are open for business in Paris, France but excludes (a) a Saturday, Sunday or any other statutory or civic holiday in Paris, France, and (b) any day on which commercial banks are authorized or required to be closed in Montreal, Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Buyer**" has the meaning specified in (a) Section 7.2(e)(i) for the purposes of Article 7 and the related Sale Transaction pursuant to Article 9, or (b) Section 8.1(a) or Section 8.1(b) for the purposes of Article 8 and the related Sale Transaction pursuant to Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Call Notice**" has the meaning specified in Section 8.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Call Option Right**" means the call option right exercisable against the Affected Securityholder by the other Securityholders under the terms and conditions set in in Article 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**CEO**" means the Chief Executive Officer *(pr* é *sident* within the meaning of article L. 227-6 of the French Commercial Code) of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Change of Control**" means (i) in relation to Loop Industries, any event following which Loop Industries (or any successor Entity thereof) ceases to be directly or indirectly Controlled by DS, (ii) in relation to Reed Investco, any event following which Reed Management (or any successor Entity thereof) ceases to directly or indirectly Control, advise or manage Reed Investco; (iii) in relation to the Corporation, any event following which Reed Management (or any successor Entity thereof) ceases to directly or indirectly Control the Corporation; and (iv) in relation to any other Person (including for the avoidance of doubt any Affiliate of Loop Industries or Reed Investco, as applicable), any event following which any Person or group of Persons, acting jointly or in concert acquires, directly or indirectly, Control over such Person. For the avoidance of doubt any event following which any Person or group of Persons, acting jointly or in concert acquires, directly or indirectly, Control over Reed Management shall not be considered to be a "Change of Control" under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**COC Notice**" has the meaning specified in Section 7.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**COC Offer**" has the meaning specified in Section 7.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Commercially Reasonable Efforts**" means the efforts that a reasonable and prudent Person who desires to achieve a business result would use in similar circumstances to ensure that such result is achieved as expeditiously as possible in the context of a commercial transaction provided, however that this shall not require a Person to take extraordinary measures, including making any payments in excess of normal filing or processing fees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Confidential Information**" has the meaning specified in Section 12.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Control**" has the meaning ascribed to it in paragraphs I and II of article L. 233-3 of the French Commercial Code; and "**Controlling**" and "**Controlled by**" have corresponding meanings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Corporation**" has the meaning specified in the Recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Date of Closing**" has the meaning specified in (a) Section 7.2(e)(ii) for the purposes of Article 7 and the related Sale Transaction pursuant to Article 9, or (b) Section 8.3 for the purposes of Article 8 and the related Sale Transaction pursuant to Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Debt**" of any Person means (i) Funded Debt, (ii) indebtedness for the deferred purchase price of property or services represented by a promissory note or other evidence of indebtedness, (iii) indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person, and (iv) all obligations under leases which have been or should be, in accordance with GAAP, recorded as capital leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Deputy CEO**" means the deputy chief executive officer (*Directeur g* é *n* é *ral* within the meaning of article L. 227-6 of the French Commercial Code) of the Corporation, who shall work jointly with the CEO to develop, implement the Corporation's business plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Dilutive Issuance**" has the meaning specified in Article 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Director**" means any natural person who has been elected or appointed to the Board in accordance with this Agreement and is a member of the Board at the relevant time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**Director Representative**" has the meaning specified in Section 4.4(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Disagreement Notice**" has the meaning specified in Section 8.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Dispute**" has the meaning specified in Section 15.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Disputing Parties**" has the meaning specified in Section 15.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**Drag-Along**" has the meaning specified in Section 7.5(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**Drag-Along Notice**" has the meaning specified in Section 7.5(a)(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**Drag-Along Offer**" has the meaning specified in Section 7.5(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**Drag Buyer**" has the meaning specified in Section 7.5(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**DS**" has the meaning specified in the Recitals.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**Employee**" means a part-time or full-time employee, or a member of the management of the Group from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "**Entity**" means any partnership, limited partnership, limited liability partnership, syndicate, sole proprietorship, corporation or company (with or without share capacity), limited liability company, stock company, trust, unincorporated association, joint venture or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "**Escrow**" means the *S* é *questre Juridique du Barreau de Paris*, the *Caisse des d* é *p* ô *ts et consignations* in Paris (France) or any bank of national or international standing who would accept to receive the relevant funds in escrow in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "**Exhibit**" means an exhibit to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "**Extended Offer Period**" has the meaning specified in Section 7.2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "**Fair Market Value**" has the meaning specified in Section 10.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "**Financial Year**" means, in relation to the Corporation, its financial year commencing on January 1<sup>st</sup> of each calendar year and ending December 31<sup>st</sup> of such year, as such financial year may be changed in accordance with applicable Laws; provided that the first financial year commenced on December, 24, 2024 and will end on December 31<sup>st</sup>, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "**French Tax Law**" means the Laws applicable to Tax levied by a French Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "**Funded Debt**" of any Person means indebtedness for borrowed money, including obligations with respect to bankers' acceptances and letters of credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "**GAAP**" means generally accepted accounting principles in France at the relevant time as established by the French Accounting Standards Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) "**Governmental Authority**" means the government of France or of any other nation, or of any political subdivision thereof, whether provincial, territorial, state, regional, municipal or local, and any department, agency, authority, instrumentality, regulatory body, central bank, court, commission, board, tribunal, arbitration tribunal, bureau or other Entity exercising executive, legislative, regulatory, judicial or administrative powers or functions under, or for the account of, any of the foregoing (including any applicable stock exchange and any administrative independent authority (*autorit* é *administrative ind* é *pendante*)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) "**Group**" means the Corporation and its Subsidiaries. "**Group Company**" shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) "**Initial Notice**" has the meaning specified in Section 15.2(a).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) "**Intellectual Property Rights**" means statutory and other rights in respect of patents, designs, integrated circuit topographies and circuit layouts, copyrights, neighboring and moral rights, trademarks, corporate names, trade names, trade or industrial secrets, confidential information, know-how, privacy, publicity and personality rights and all other intellectual and industrial property rights (registered or not), granted or recognized under any applicable legislation or as defined in article 2 of the *Convention Establishing the World Intellectual Property Organization of July 1967.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) "**Laws**" means any and all (a) laws, constitutions, treaties, statutes, codes, ordinances, orders, decrees, rules, regulations and by-laws, (b) judicial, arbitral, administrative, ministerial, departmental or regulatory judgments, orders, decisions, rulings, instruments or awards of any Governmental Authority, and (c) policies, practices, standards, guidelines and protocols to the extent they have force of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) "**License Agreement**" means the license agreement dated December, 23, 2024 and entered into between Loop Industries, as licensor, and the Corporation, as licensee, granting a non-transferable, non-exclusive, royalty-bearing license under the Loop Technology, which may only be implemented once and for one facility, with the right to grant one sublicense, as may be amended or modified from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) "**Licensed Products**" means dimethyl terephthalate (rDMT), mono ethylene glycol (rMEG), and any product that is formed or derived from rDMT and/or rMEG that are produced using rDMT and/or rMEG where (a) the DMT and/or MEG is produced through the depolymerization of polyethylene terephthalate (PET) and/or polyester, and (b) such depolymerization is covered by or otherwise involves the use of the Loop Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) "**Lien**" means (a) any mortgage, charge, pledge, claim, interest of any kind, third party right, option, restriction on transfer, hypothec, security interest, or lien, and (b) any other encumbrance of any nature or any arrangement or condition which, in substance, secures payment or performance of an obligation, whether contractual, statutory or otherwise, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) "**Lock-Up Period**" has the meaning specified in Section 6.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) "**Loop** ' **s Knowledge**" means the actual knowledge of DS, Mr. Fady Mansour, and/or Mr. Mike de Notaris (after due inquiry), as of the date hereof, in respect of the representations and warranties made by Loop Industries under Sections 3.2(e) and 3.2(h);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Loop Industries**" has the meaning specified in the Recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjj) "**Loop Industries Convertible Preferred Stocks**" are the series B convertible preferred stocks issued by Loop Industries and sold to Reed Investco, the terms and conditions of which are set in <u>Exhibit</u> <u> </u> <u>1.1(jjj)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkk) "**Loop Technology**" means proprietary Technology owned or controlled by Loop Industries and/or its Affiliates with respect to PET and other polyester depolymerization technology by methanolysis that produces rDMT and/or rMEG and all Intellectual Property Rights related thereto, of which certain patented (or pending) embodiements, without limitation, are listed in <u>Exhibit 1.1(kkk)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lll) "**Loss**" means any damage, loss, or liability, reasonable attorneys' and other advisors' fees and expenses, fine awards, judgments or penalties, directly suffered or incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmm) "**Maturity Date**" has the meaning specified in Section 5.1(b)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnn) "**Offer**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ooo) "**Offer Notice**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ppp) "**Offer Period**" has the meaning specified in Section 7.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qqq) "**Offer Price**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rrr) "**Offered Securities**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(sss) "**Offerees**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ttt) "**Offeror**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uuu) "**Officer**" means the CEO, the Deputy CEO and any other officer of the Corporation that may be appointed by the Board from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vvv) "**Option**" has the meaning specified in Section 7.5(a)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(www) "**Ordinary Shares**" means the ordinary shares (*actions ordinaires*) in the capital of the Corporation as described in the Articles from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxx) "**Parties**" means, collectively, the Corporation, the Securityholders and any other Person who may, at any time or from time to time, be a party to this Agreement, as well as, but only for the purposes of Sections 3.3 and 3.4, DS, it being however specified that, notwithstanding anything contrary in this Agreement, DS shall never be held as jointly liable (*solidairement*) with any other Parties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yyy) "**Permitted Liens**" means Liens approved in an annual business plan from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zzz) "**Person**" means a natural person or an Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaaa) "**Place of Closing**" means the offices of Norton Rose Fulbright Canada LLP, Suite 2500, 1, Place Ville Marie, Montreal, Québec or such other place as the Seller and the Buyer under the relevant Sale Transaction mutually agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbbb) "**Priority Rights**" has the meaning specified in Section 13.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cccc) "**Promisor**" has the meaning specified in Section 7.5(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dddd) "**Promotional Materials**" means those advertising and promotional materials with respect to the Loop Technology that may be provided by Loop Industries to the Group from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eeee) "**Proportionate Interest**" means at any time with respect to any Shareholder, the proportion that the number of Shares held by such Shareholder bears to the total number of issued and outstanding Shares of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ffff) "**Purchase Agreement**" has the meaning specified in the Recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gggg) "**Purchase Price**" has the meaning specified in (i) Section 7.2(e) for the purposes of Article 7 and the related Sale Transaction pursuant to Article 9, or (ii) Section 8.2(a) for the purposes of Article 8 and the related Sale Transaction pursuant to Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhhh) "**Purchased Securities**" has the meaning specified in (i) Section 7.2(e) for the purposes of Article 7 and the related Sale Transaction pursuant to Article 9, or (ii) Section 8.1(b) for the purposes of Article 8 and the related Sale Transaction pursuant to Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iiii) "**Put Notice**" has the meaning specified in Section 8.1(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjjj) "**Put Option Right**" means the put option right exercisable against the Affected Securityholder by the other Securityholders under the terms and conditions set in Article 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkkk) "**Recitals**" means the recitals of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(llll) "**Recycling Facilities**" has the meaning specified in Section 13.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmmm) "**Reed Investco**" has the meaning specified in the Recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnnn) "**Reed Management**" means Reed Management SAS, a simplified joint-stock company (*soci* é *t* é *par actions simplifi* é *e*) incorporated under the Laws of France, having its registered office at 15 rue Soufflot 75005 Paris, France, registered with the *Registre du commerce et des soci* é *t* é *s* of Paris under number 949 366 363.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oooo) "**Rejected Securities**" has the meaning specified in Section 7.2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pppp) "**Remaining Offerees**" has the meaning specified in Section 7.2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qqqq) "**Restricted Person**" has the meaning set forth in Exhibit 1.1(qqqq).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rrrr) "**Restricted Transaction**" has the meaning specified in Section 7.1(d)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ssss) "**Right of First Refusal**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tttt) "**Sale Transaction**" means a transaction of purchase and sale of Securities between or among some or all of the Parties completed in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uuuu) "**Sanctioned Person**" means any Person who is a designated target of Sanctions or is otherwise a subject of Sanctions, including as a result of being: (a) owned or Controlled directly or indirectly by any Person which is a designated target of Sanctions, or (b) organized under the Laws of any country that is subject to general or country-wide Sanctions, or any Person that is a "*designated person* ", "*politically exposed foreign person*" or "*terrorist group*" as described in any Laws relating to Sanctions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vvvv) "**Sanctions**" means any economic or trade sanctions or embargoes or restrictive measures enacted, administered, imposed or enforced, from time to time; by the Parliament of Canada, the U.S. Department of the Treasury's Office of Foreign Assets Control, the U.S. Department of State, the United Nations Security Council, the European Union or any present or future member state thereof, the United Kingdom's His Majesty's Treasury or any other relevant sanctions Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(wwww) "**SEC**" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxx) "**Securities**" means, with respect to any Entity, (i) any ordinary shares, preferred shares or bonds issued by such Entity, and other security or right issued or granted, or to be issued or granted by such Entity, and granting or likely to grant access, either directly or indirectly, immediately or in the future, through conversion, exchange, repayment, presentation or exercise of warrant or through any other means, to the allocation of shares or other securities representing or granting access to a portion of the share capital, of the profits, of the liquidation surplus or the voting rights of such Entity or any Entity Controlled by such Entity, (ii) the preference subscription right (*droit pr* é *f* é *rentiel de souscription*) to a share capital increase in cash of such Entity or the allocation right resulting from a share capital increase through capitalization of reserves of such Entity, (iii) any split in the ownership (*d* é *membrement*) of the securities referred to above, and (iv) any other security of nature similar to securities referred to above issued or granted by any Person further to conversion, merger, demerger (*scission*), partial contribution (*apport partiel d* ' *actifs*) or similar operation of such Entity; <u>provided that</u>, unless expressly specified otherwise, the term "*Securities* ", when used in this Agreement, shall refer to the Securities of the Corporation which shall comprise, without limitation, the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yyyy) "**Securityholders**" means the Persons who, from time to time, hold Securities and are bound by this Agreement and refers, at the date hereof, to Loop Industries and Reed Investco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zzzz) "**Seller**" has the meaning specified in (i) Section 7.2(e)(ii) for the purposes of Article 7 and the related Sale Transaction pursuant to Article 9, or (ii) Section 8.1(a) or Section 8.1(b) for the purposes of Article 8 and the related Sale Transaction pursuant to Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaaaa) "**Shareholder Loan**" has the meaning specified in Section 5.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbbbb) "**Shareholder Loan Agreement**" has the meaning specified in Section 5.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccccc) "**Shareholders**" means the Persons who, from time to time, hold Shares and are bound by this Agreement and refers, at the date hereof, to Loop Industries and Reed Investco."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddddd) "**Shares**" means any shares (*actions*) issued by the Corporation at any time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eeeee) "**Sold Securities**" has the meaning specified Section 8.1(a) for the purposes of Article 8 and the related Sale Transaction pursuant to Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fffff) "**Subsidiary**" means, with respect to any Entity, any other Entity Controlled, directly or indirectly, by such Entity. The term "**Subsidiary**" shall include all direct or indirect subsidiaries of each Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggggg) "**Tag-Along Notice**" has the meaning specified in Section 7.4(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhhhh) "**Tag Offered Securities**" has the meaning specified in Section 7.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iiiii) "**Tag Offeror**" has the meaning specified in Section 7.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjjjj) "**Tag Third Party Buyer**" has the meaning specified in Section 7.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkkkk) "**Tax**" means any tax, levy, duty, or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying the same).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lllll) "**Technology**" means ideas, concepts, discoveries, inventions, developments, processes, systems, devices, apparatuses, compositions, computer software, methods, procedures, techniques, designs, specifications, plans, documents, schematics, formulae, trade secrets, know-how, algorithms, drawings, diagrams, photos, pictures, prints, models, prototypes, patterns, analysis, evaluations, research, works, physical embodiments, computer files, data, technical information, materials and similar expressions, and all Intellectual Property Rights arising in any and all of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmmmm) "**Territory**" means the countries within the European Economic Area, United Kingdom, Switzerland, and Turkey, including for the avoidance of doubt any overseas territories of such countries outside continental Europe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnnnn) "**Third Party Buyer**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ooooo) "**Third Party Offer**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ppppp) "**Time of Closing**" means 10:00 am Montreal time or such other time on the Date of Closing as the Seller and the Buyer under the relevant Sale Transaction mutually agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qqqqq) "**Transfer**" means, in respect of the Securities of an Entity, (a) any transfer of such Securities, directly or indirectly, by operation of Law, by court order, by judicial process, public auction, or by foreclosure, levy or attachment, (b) any sale, assignment, contribution, *apport partiel d* ' *actif*, merger, demerger, spin-off or similar transaction, gift, donation, redemption, conversion or other disposition of such Securities, directly or indirectly, (c) all transfers, sales or assignments of partial (*e.g.*, *jouissance*, *usufruit*, or *nue-propri* é *t* é) or full title over any Security by any legal means, and (d) any transfer of preferential subscription rights, whether or not pursuant to an agreement, arrangement, instrument or understanding, by which legal title to, or beneficial ownership of, such Securities passes from one Person to another Person or to the same Person in a different legal capacity, whether or not for value, but does not include the granting, directly or indirectly, of any Lien over such Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rrrrr) "**Transferor**" has the meaning specified in Section 6.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(sssss) "**Valuation Date**" means in the case of a Put Notice delivered pursuant to Article 8, the last day of the month immediately preceding the month of the delivery of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ttttt) "**Valuator**" has the meaning specified in Section 10.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uuuuu) "**Valuator** ' **s Report**" has the meaning specified in Section 10.3(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** **Reclassification of Securities** 

The provisions of this Agreement apply, *mutatis mutandis*, to (i) any Securities into which the Securities issued by the Corporation may be converted, changed, reclassified, redesignated, divided or consolidated, (ii) any Securities that are received by a Securityholder as a stock dividend or distribution payable in Securities of the Corporation, and (iii) any Securities that may be received by any Securityholder on a reorganization, amalgamation, consolidation, arrangement, or merger, statutory or otherwise of the Corporation; all of which Securities shall be deemed to be Securities for all purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** **Gender and Number** 

In this Agreement, unless there is something in the subject matter or context inconsistent therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words in the singular number include the plural and are to be construed as if the plural had been used and *vice versa*, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words importing the use of any gender include all genders where the context or party referred to so requires, and the rest of the sentence is to be construed as if the necessary grammatical changes had been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4** **Certain Phrases and Calculation of Time** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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;(i) the words "*including*" and "*includes*" mean "*including (or includes) without limitation*" 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 the computation of periods of time from a specified date to a later specified date, unless otherwise expressly stated, the word "*from*" means "*from and including*" and the words "*to*" and "*until*" each mean "*to but excluding* ". If the last day of any such period is not a Business Day, such period will end on the next Business Day.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) When calculating the period of time "*within*" which or "*following*" which any act or event is required or permitted to be done, notice given or steps taken, the date which is the reference date in calculating such period is to be excluded from the calculation. If the last day of any such period is not a Business Day, such period will end on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limiting the generality of the foregoing, whenever payments are to be made or an action taken on a day which is not a Business Day, such payment will be made or such action taken on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5** **Headings etc.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The inclusion of a table of contents, the division of this Agreement into articles and sections and the insertion of headings are for convenient reference only and do not affect and should not be used in the construction or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The words "*Article*" and "*Section*" followed by a letter or number refer to the specified Article or Section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6** **Currency** 

All monetary amounts in this Agreement, unless otherwise specified, are stated in euro (symbol: €).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7** **Accounting Terms** 

All accounting terms not specifically defined in this Agreement are to be construed in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8** **Statutory References** 

Unless otherwise specifically indicated, any reference to a statute in this Agreement refers to that statute and the regulations and ministerial orders made under that statute, as the same may, from time to time, be amended, re-enacted or replaced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9** **Recitals and Exhibits** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Recitals and the Exhibits form an integral part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation may, by notice to the Securityholders, amend <u>Exhibit (D)</u> to the extent required to reflect, *inter alia*, changes in the ownership of the Securities issued by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10** **No Presumption** 

If an ambiguity or a question of intent or interpretation arises, this Agreement is to be construed as if drafted jointly by the Parties. No presumption or burden of proof should arise in favour of any Party by virtue of the authorship of any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11** **Governing Law** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement is governed by and is to be interpreted and enforced in accordance with the Laws of France.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without prejudice to Article 15, each of the Parties irrevocably attorns and submits to the exclusive jurisdiction of the Commercial Court of Paris, France (*Tribunal de commerce de Paris*) in any action or proceeding arising out of, or relating to, this Agreement. Each of the Parties waives objection to the venue of any action or proceeding in such court or any argument that such court provides an inconvenient forum.

**Article 2**<br> **Business of the Group**

Reed Investco and Loop Industries have established the Corporation held on a 90/10 basis, for the purpose of carrying, directly or indirectly through its Subsidiaries, on a non-exclusive basis, within the Territory, the business of development, design, financing, construction, ownership, operation, solicitation, commercialization, marketing and promotion of chemical upcycling plants and related products using Loop Technology owned and controlled by Loop Industries and/or its Affiliates, the whole in accordance with the terms of Article 13 and Article 14 (the "**Business**").

**Article 3**<br> **Scope of Agreement and Share Ownership**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **Representations and Warranties of Reed Investco** 

Reed Investco represents and warrants to the other Parties in respect of itself only as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is the legal owner of the Securities set out opposite its name in <u>Exhibit (D)</u> (as such Exhibit may be updated from time to time in accordance with the provisions of this Agreement), and it has good title to those Securities and no Person has any agreement or any option or right capable of becoming an agreement for the purchase or other acquisition of such Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is a simplified joint-stock company (*soci* é *t* é *par actions simplifi* é *e*) duly formed and existing under the Laws of France and has the corporate power and capacity to own its Securities and to enter into and perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Its authorized capital consists of 3,500 euros of which at this date, 3,500 shares (and no more) have been duly issued and are outstanding as fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the date hereof, all of the issued and outstanding shares of Reed Investco are registered in the name of, and beneficially owned by, Reed Management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Person (other than Reed Management) has any agreement, option or warrant or any right or privilege (whether by Law, pre-emptive or contractual) capable of becoming such for the purchase, subscription, allotment or issuance of any of the unissued shares or other Securities in the capital of Reed Investco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate governance bodies and any relevant third parties on the part of Reed Investco.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The execution, delivery and performance by it of this Agreement will not result in:

&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 breach or a violation of, or conflict with, or allow any other Person to exercise any rights under, any of its constating documents (to the extent applicable) or any contracts, agreements or instruments to which it is a party or pursuant to which any of its assets or property may be bound;

&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 breach of, or cause the termination or revocation of, any authorization, licence or permit held by it or necessary to its ownership of Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the violation of any applicable Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the creation or imposition of any Lien upon any of its property or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This Agreement has been duly executed and delivered by it and constitutes a legal, valid and binding obligation enforceable against it in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) There is no requirement to make any filing with, give any notice to, or obtain any authorization of, any Governmental Authority in connection with the execution and delivery of, or the performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Agreement constitutes the only agreement which it has entered into with any other Person (including any other Securityholder) with respect to the manner in which it will vote or deal with its Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) It is a French resident for purposes of Tax within the meaning of French Tax Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2** **Representations and Warranties of Loop Industries** 

Loop Industries represents and warrants to the other Parties in respect of itself only as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is the legal owner of the Securities set out opposite its name in <u>Exhibit (D)</u> (as such Exhibit may be updated from time to time in accordance with the provisions of this Agreement), it has good title to those Securities, free and clear of all Liens, and no Person has any agreement or any option or right capable of becoming an agreement for the purchase or other acquisition of such Securities except as set out in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is a corporation duly incorporated and existing under the Laws of the State of Nevada (United States of America) and has the corporate power and capacity to own its Securities and to enter into and perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate governance bodies;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) It has valid ownership or license rights, to use (and sub-licence, if applicable) the Loop Technology as well as all material Intellectual Property Rights necessary or reasonably deemed necessary to (x) enable the Corporation to carry out the Business in accordance with this Agreement as contemplated as of the date hereof, and (y) execute its obligations under this Agreement, including with respect to any Intellectual Property Rights in connection with the Loop Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To Loop's Knowledge, the conduct of the Business as presently conducted and the use of the Loop Technology as intended to be used pursuant to this Agreement does not infringe any third parties' Intellectual Property Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) It holds, directly or indirectly, the entire share capital and voting rights of 9449710 Canada Inc., Loop Canada Inc., and of any Entity holding and/or controlling any Intellectual Property Rights in connection with the Loop Technology and/or necessary or deemed necessary for the Corporation to perform the Business in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) It has relevant experience in the implementation of Loop Technology on a pilot scale basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To Loop's Knowledge, the Loop Technology is appropriate for the implementation of the Business under the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The execution, delivery and performance by it of this Agreement will not result in:

&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 breach or a violation of, or conflict with, or allow any other Person to exercise any rights under, any of its constating documents (to the extent applicable) or any contracts, agreements or instruments to which it is a party or pursuant to which any of its assets or property may be bound;

&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 breach of, or cause the termination or revocation of, any authorization, licence or permit held by it or necessary to its ownership of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the violation of any applicable Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the creation or imposition of any Lien upon any of its property or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Agreement has been duly executed and delivered by it and constitutes a legal, valid and binding obligation enforceable against it in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) There is no requirement to make any filing with, give any notice to, or obtain any authorization of, any Governmental Authority in connection with the execution and delivery of, or the performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) This Agreement constitutes the only agreement which it has entered into with any other Person (including any other Securityholder) with respect to the manner in which it will vote or deal with its Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3** **Representations and Warranties of DS** 

DS represents and warrants to the other Parties in respect of himself only as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) DS has the capacity to enter into and perform its obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance of this Agreement fully complies with the Investors Right Agreement and any other agreement relating to Loop Industries that DS has entered into with any holder of Securities in Loop Industries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution, delivery and performance by DS of this Agreement will not result in:

&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 breach or a violation of, or conflict with, or allow any other Person to exercise any rights under, any contracts, agreements or instruments to which DS is a party or pursuant to which any of his assets or property may be bound;

&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 breach of, or cause the termination or revocation of, any authorization, licence or permit held by Loop Industries; 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) the violation of any Law applicable to DS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement has been duly executed and delivered by DS and constitutes a legal, valid and binding obligation enforceable against DS in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Agreement constitutes the only agreement which DS has entered into with any other Person with respect to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4** **Covenants of the Parties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Parties covenants and agrees with the other Parties that it shall vote and take all other necessary actions within its control to fulfill the provisions of this Agreement, including to cause the Corporation to comply with this Agreement. Each Securityholder shall also, to the fullest extent permitted by Law, cause its respective nominees to the Board to act in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) DS covenants and agrees with the other Parties that he shall vote and take all other necessary actions within its control, notably as a holder of Securities in Loop Industries and as a member of its corporate governance bodies, to fulfill the provisions of this Agreement including using all reasonable efforts to cause Loop Industries to comply with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) DS undertakes to keep Reed Investco duly and timely informed about the on-going proceedings with the SEC and United States Department of Justice relating to an alleged breach of United States securities Laws, in which DS was named as a relief defendant and/or involving several former shareholders and/or managers of Loop Industries. For more certainty, the obligations of DS under this Section 3.4(c) shall not be interpreted in such way as to constrain DS to breach any applicable securities Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Loop Industries hereby undertakes to, and undertakes that its Subsidiaries shall (*porte fort*):

&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) hold Reed Investco and its Affiliates harmless of any risk, and agrees to indemnify Reed Investco and its Affiliates for any Loss, on a euro for euro basis, resulting from (i) the on-going proceedings, in which DS was named as a relief defendant and/or involving several former shareholders and/or managers of Loop Industries with the SEC and United States Department of Justice and/or (ii) the matters set forth in <u>Exhibit</u> <u> </u> <u>3.4(d)(i)</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (y) keep Reed Investco duly and timely informed about any discussions Loop Industries may have with any Person in respect of project(s) contemplated by Loop Industries at or prior to the date hereof, and (z) make the Corporation participate in the negotiations relating to the project(s) mentioned above and execute any binding documents in respect thereof *in lieu* of Loop Industries, subject to necessary adaptations, so that, amongst other things, the Corporation comes to hold any interest or receive any revenues Loop Industries was initially supposed to hold in or receive from the project(s) mentioned above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) ensure that Loop Industries has at all times appropriate rights to license to applicable third parties (including for the avoidance of doubt any Group Company) the Loop Technology and/or any relevant Intellectual Property Right in connection with the performance of the Business in accordance with this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) use their best efforts to maintain, enforce, and protect their Intellectual Property Rights in the Territory (including by prosecuting and renewing applications and registrations before intellectual property offices, taking action against third parties in case of infringement, defending claims brought by third parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Parties agree and acknowledge that the foregoing disclosure obligations are subject to any limitations that may be required under the SEC Regulation FD (Fair Disclosure) selective disclosure rules as they relate to the specific facts and circumstances at such time of disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Parties agree and acknowledge that to the extent material non-public information within the meaning of applicable securities Laws is disclosed, the Parties shall abide by all prohibitions and restrictions applicable to the use and disclosure of material non-public information prescribed by Law, including, but not limited it, the prohibition under the United States securities Laws on any person who has material non-public information about a company from purchasing or selling securities of such company or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If there is a conflict between the provisions of this Agreement and the provisions of the Articles, the provisions of this Agreement shall prevail to the fullest extent permitted by Law and each of the Parties shall take or cause to be taken all such steps and proceedings as may be required to amend the Articles to resolve such conflict in favour of the terms of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5** **Consent and Covenants of the Corporation** 

The Corporation consents to the provisions of this Agreement and covenants that it will, at all times during the term of this Agreement, (a) be governed by its provisions in conducting its business and affairs, and (b) do or cause to be done all such acts, matters and things as may, from time to time, be necessary or desirable for the carrying out of the terms and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6** **Survival** 

The representations and warranties of the Parties contained in Sections 3.1, 3.2 and 3.3 are true in all respect as of the date hereof and the Parties agree that none of the representations and warranties of any of the Parties set forth in Sections 3.1, 3.2 and 3.3, shall survive the execution and delivery of this Agreement, and all such provisions shall terminate as of the execution and delivery of this Agreement. For the avoidance of doubt, the obligations and rights of the Parties set in Sections 3.4 and 3.5 shall continue with respect to each Party until it ceases to be bound by this Agreement.

**Article 4**<br> **Management of the Corporation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **General Principles** 

The Corporation is a French incorporated simplified joint-stock company (*soci*é*t*é *par actions simplifi*é*e*) managed by the CEO and, if appointed pursuant to Section 4.11, the Deputy CEO both acting under the supervision of the Board that will also resolve upon all material, strategic or business decisions relating to the Group, subject only to such restrictions as are imposed by applicable Laws, by the Articles and/or by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **Board** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board shall consist of four (4) Directors, appointed for a renewable one (1)-year term. For as long as Loop Industries or any Affiliate thereof holds Shares, Loop Industries shall have the right to nominate and have elected one (1) Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Shareholder shall vote its Shares so as to ensure that the individual nominated by Loop industries in accordance with the provisions of this Section 4.2, is appointed to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a nominee Director of a Shareholder resigns, is removed or otherwise ceases to be a Director (whether as a result of death, disability or otherwise) other than as a result of a Transfer of the Shares of such Shareholder pursuant to a Sale Transaction in accordance with Section 9.2, the Shareholder shall provide notice to the Corporation and the other Shareholder and deliver or cause to be delivered to the Corporation a resignation and release of its nominee Director or Directors, as the case may be, in form and substance satisfactory to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Vacancies on the Board** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A vacancy on the Board shall be filled by the election or appointment of a replacement Director nominated by the Shareholder whose former nominee has ceased to be a Director for a period ending on the term of the Director that is replaced, unless the Board decides otherwise, provided such Shareholder continues to be entitled to appoint such Director. Each Shareholder shall vote its Shares so as to ensure that the individual nominated as a replacement Director is appointed to the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without prejudice to Section 4.4(c), until the vacancy is filled, the Board shall not transact any business relating to a Board Reserved Matter. Notwithstanding the foregoing, if the vacancy has not been filled by the applicable Shareholder within a period of fifteen (15) days following the day on which its former nominee has ceased to be a Director, the Parties agree that the Board shall be authorized to transact on any business, including Board Reserved Matters set forth in Section 4.8, after the expiration of such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Meeting of Directors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board shall meet as often as necessary and at least once every quarter based on a schedule approved in advance by the Board and in respect of which notice (together with details of the matters to be considered) is given no less than five (5) Business Days prior to the proposed meeting, unless all of the Directors waive such notice of meeting or in case of a Board meeting called to address urgent matters. In addition, the CEO or the Deputy CEO or any Director may convene an emergency meeting of the Board upon not less than forty-eight (48) hours prior written notice (together with details of the matters to be considered), unless all of the Directors waive such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The CEO and the Deputy CEO shall be authorized to attend any Board meetings except for such meetings resolving on matters relating to the CEO or the Deputy CEO, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A quorum for a meeting of the Board shall be at least two (2) Directors then in office and, for any meeting of the Board relating to a Board Reserved Matter, one (1) of whom must be a Director nominee of Loop Industries, so long as Loop Industries is entitled to nominate a Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a quorum is not in attendance at any Board meeting, the meeting will be adjourned for a period of two (2) Business Days. If a quorum is not in attendance at such adjourned Board meeting, the meeting will be further adjourned for a period of two (2) Business Days. If a quorum of Directors is not present at such third attempt, a meeting of the Board may be held to transact the business described in the agenda (including Board Reserved Matters set forth in Section 4.8) and the Directors present at that meeting shall constitute a quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Directors may participate in a meeting by means of such telephone, electronic or other communication facilities as permit all Directors participating in the meeting to hear and communicate with each other simultaneously and a Director participating in the meeting by such means is deemed to be present at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a Director is unable to attend a Board meeting (an "**Appointing Director** "), such Director may, with the prior written consent of the other Directors (which consent shall not be unreasonably withheld), appoint another Director from amongst the organisation of the Shareholder for which him or her acts as nominee, such Shareholder's Affiliates, and their respective officers or directors (a "**Director Representative**") to attend, observe and take part in such meeting. A Director Representative may vote on any matter and the presence of such individual will be taken into account in determining a quorum at the meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any Director Representative designated pursuant to Section 4.4(f) shall be entitled to attend and vote at any Board meeting (or part thereof) at which the Appointing Director is not present and (in the absence of the Appointing Director) generally to do all the things which the Appointing Director is authorised or empowered to do including the power to approve decisions by way of electronic mail or written resolution. A Director Representative may represent one or more Appointing Directors. A Director Representative may only act with the instructions of the Appointing Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5** **Chairperson of the Board** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The chairperson of the Board is appointed among Reed Investco's nominee Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The chairperson of the Board shall not have a second or casting vote on any matter before the Board. He shall ensure that full effect is given to the decisions adopted by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6** **Decisions of the Board** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Director will have one vote and decisions of the Board, subject to the provisions of Section 4.8, shall be taken by Directors representing a simple majority of votes of the Directors present or represented at a Board meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Decisions may be validly adopted by electronic mail or by way of written consultation provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the electronic mail is sent, or the written consultation is signed, by all the Directors (whether acting as principal or by their Director Representatives); 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) the resolutions concerned are adopted by all of the Directors (whether acting as principal or by their Director Representatives).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All decisions of the Board shall be duly recorded in minutes jointly signed by the chairperson of the Board and a Director having participated to the Board meeting. Minutes and unanimous written resolutions shall be registered in the Corporation's corporate books.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7** **Directors** ' **Compensation** 

Except as may otherwise be approved in writing by the Shareholders, no amount may be paid by way of salary, bonus, honorarium or otherwise to any Director for acting as a director of the Corporation. However, each Director shall be reimbursed by the Corporation for reasonable and documented out-of-pocket expenses incurred while attending meetings or otherwise being engaged in the business of the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8** **Board Reserved Matters** 

The making of any of the following decisions or the taking of any of the following actions within any Group Company shall require the prior approval of the Board by unanimous decision of the Directors, subject to the provisions of Section 4.3(b) and Section 4.4(d):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the approval, renewal, modification, or termination of 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;(i) Sublicense Agreement (as such term is defined in the License Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) joint-venture or partnership agreement (including any shareholders' agreement or any similar agreement binding on any Group 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;(iii) sale agreement, purchase agreement, merger agreement or any other transfer agreement related to the Securities or assets held or owned by any Group Company;

with any Restricted Person or any other agreement which could reasonably lead to the disclosure of all or parts of the Loop Technology to a Restricted Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) entering into any contract, transaction or amendments thereto, containing terms that are unusual and that could reasonably be disproportionately detrimental to any Group Company and/or any minority Shareholder, with any Party or with any Person who does not deal at arm's length with any such Party or any shareholder, owner, partner, director or officer of any such Person or Party, being understood however that this Section 4.8(b) shall not apply to contract, transaction or amendments entered into in application of the provisions of the Priority Rights Protocol set out in <u>Exhibit 13.1(a)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any agreement, decision or commitment to do any of the above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9** **Meetings of Shareholders** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Shareholders shall have the powers granted to them pursuant to article L. 227-9 of the French Commercial Code and subject, if applicable, to the prior approval of the Board with respect to those matters that qualify as Board Reserved Matters, shall be competent to adopt the following decisions:

&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 approval of the annual and, if applicable, consolidated financial statements;

&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 appointment and removal of the 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;(iii) any dividends, reserve and other 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;(iv) the increase or reduction of the Corporation's share capital as well as any other Dilutive Issuances or any share buy-back 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;(v) any matter in relation to the listing or trading of any equity or Debt Securities issued or to be issued by the Corporation on any stock exchange;

&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) the merger, demerger, voluntary winding-up, dissolution or liquidation as well as the disposal of a going concern (*cession de fonds de commerce et cession de branche d* ' *activit* é) involving any Group Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) change of corporate form, duration or nationality of the Corporation; 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;(viii) any other amendments to the Articles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The CEO, the Deputy CEO or any Shareholder may convene a meeting of the Shareholders. At least five (5) Business Days' prior written notice of any such meeting, which notice shall set out the matters to be raised at the meeting, must be given (or not less than forty-eight (48) hour notice in the case of an emergency) unless all of the Shareholders waive such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless otherwise provided by applicable Law, any decisions of the Shareholders shall be approved by Shareholders present or represented holding Securities carrying more than fifty percent (50%) of the votes attached to the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A quorum for a meeting of Shareholders is such number of Shareholders present or represented by proxy holding Securities carrying more than fifty percent (50%) of the votes attaching to the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Shareholders may participate in a meeting by means of such telephone, electronic or other communication facilities as permit all Shareholders participating in the meeting to hear and communicate with each other simultaneously and a Shareholder participating in the meeting by such means is deemed to be present at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Shareholders may, *in lieu* of a meeting, approve any matter over which they have jurisdiction by instrument in writing signed by all of the Shareholders entitled to give such approval. An instrument so signed shall constitute the approval of all Shareholders to the action or matter specified in the instrument and no Shareholder shall have or exercise any dissent or similar rights in connection with either a resolution passed at a meeting or an instrument in writing signed by the specified number of Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) With respect to Board Reserved Matters, the Shareholders undertake to vote at the Corporation's Shareholders' general meetings in accordance with the decisions taken by the Board pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10** **Securityholders** ' **Decisions** 

Securityholders' decisions may be adopted by means of written resolutions signed by each of the Securityholders, or by teleconference (telephone or audiovisual). Minutes and unanimous written resolutions shall be registered in the Corporation's corporate books.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.11** **Officers** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The CEO shall be appointed by the Board. The CEO candidate(s) submitted to the Board for appointment shall be proposed by Reed Investco. The CEO will be vested with the broadest powers to act (i) as the Corporation's legal representative and (ii) on behalf of the Corporation, subject to the specific powers granted by applicable Law, by the Articles or by this Agreement, to the Board and the Securityholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the request of Reed Investco, a Deputy CEO (or equivalent) shall be appointed by the Board. The Deputy CEO candidate(s) submitted to the Board for appointment shall be proposed by Reed Investco and appointed by the Board. The provisions of this Agreement applicable to the CEO shall apply *mutatis mutandis* to the Deputy CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The CEO and the Deputy CEO may be removed at any time by the Board with or without cause (*ad nutum*) upon proposal of Reed Investco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The compensation of the CEO and the Deputy CEO shall be determined by the Board. They shall be entitled to the reimbursement of all reasonable expenses incurred in connection with their functions within the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.12** **Financial Statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall prepare and deliver to the Board and the Securityholders, within twenty (20) Business Days following the completion of each financial month and financial quarter, a report prepared in accordance with GAAP consisting of an unaudited balance sheet, income statement and statement of changes in financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation shall deliver, as soon as practicable and in any event within sixty (60) Business Days after the end of each Financial Year, for review and approval by the Board, the audited financial statements of the Corporation prepared in accordance with GAAP for such Financial Year consisting of a balance sheet, a statement of income and a statement of changes in financial position and such other statements and reports prepared in accordance with GAAP as are required by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The audited financial statements, as approved by the Board, shall be delivered forthwith to the Shareholders for their approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Should a Securityholder wish that the financial statements of the Corporation referred to in this Section 4.12 be prepared in accordance with the International Financial Reporting Standards at the relevant time as established by the International Accounting Standards Board, such Securityholder shall bear alone all the costs and expenses related thereto at no costs for the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.13** **Right to an Audit** 

A Securityholder may once per financial quarter, at its own expense, cause an audit to be completed of the Corporation's books and records by an accounting firm appointed by such Securityholder and submitted to a reasonable confidentiality undertaking. Such appointee shall, for the purpose of performing the audit, have access to all books, accounts, records, vouchers, cheques, papers and documents which relate to the Business and may require from the Securityholders, Directors, Officers and Employees, such information and explanations as, in its opinion, are necessary to enable it to complete such audit. The results of the audit shall be disclosed to the Corporation and the other Securityholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.14** **Books and Records** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Securityholder and its authorized representatives may, on reasonable notice during normal business hours without causing undue disruption to the Corporation, review, examine and copy, at its own expense, any books and records of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Securityholder has ceased to own Securities, such former Securityholder and its authorized representatives may have access for a period equal to the last Tax limitation period applicable to the Corporation after it ceases to be a Securityholder, on reasonable notice during regular business hours without causing undue disruption to the Corporation, to the books and records of the Corporation to the extent reasonably required by the former Securityholder either (i) in connection with audits or other dealings with taxing authorities or other Governmental Authorities, (ii) to ensure compliance with the requirements of applicable Laws by the former Securityholder, or (iii) in connection with legal proceedings involving it or any of its directors, officers, employees, consultants or advisors.

**Article 5**<br> **Corporate Finance and Capital Requirements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **Shareholder Loan** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reed Investco made available, to the Corporation on December, 23 2024 (the "**Date of Payment**") a loan in an aggregate principal amount of ten million euros (€10,000,000) (the "**Shareholder Loan**") in the form of a loan agreement set out in <u>Exhibit 5.1(a)</u> (such executed agreement, the "**Shareholder Loan Agreement** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties hereby agree to the following key terms with respect to the Shareholder Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The funds made available by Reed Investco to the Corporation under the Shareholder Loan have been used exclusively to finance the payment of the First Royalty Tranche (as such term is defined in the License Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The scheduled maturity date with respect to the Shareholder Loan shall be December, 27, 2027 at the latest, except if the Parties agree to extend such maturity date (the "**Maturity Date** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The occurrence of any of the following events shall trigger the early repayment of the Shareholder Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Corporation, as borrower, does not pay to Reed Investco, as lender, any amount due and payable by the Corporation under the Shareholder Loan Agreement in the manner required by the same;

&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 Corporation, as borrower, has defaulted in payment of any of its other financial indebtedness when due, or the relevant creditor has declared such financial indebtedness to be accelerated and immediately due and payable prior to its specified maturity as a result of an event of default (however described);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any of the following events occurs with respect to the Corporation, as borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - any step is taken with a view to a moratorium or a composition, assignment or similar arrangement with any of its creditors (including without limitation a *proc*é*dure de conciliation* or a *mandat ad hoc* under *Livre Sixi*è*me* of the French Code de commerce);

- a meeting of its shareholders, directors or other officers is convened for the purpose of considering any resolution for, to petition for or to file documents with a court or any registrar for, its winding-up, administration or dissolution (including without limitation *redressement judiciaire*, *cession totale de l*'*entreprise*, *liquidation judiciaire*, a *proc*é*dure de sauvegarde*, or a *proc*é*dure de sauvegarde acc*é*l*é*r*é*e* under *Livre Sixi*è*me* of the French Code de commerce) or any such resolution is passed;

- any person presents a petition, or files documents with a court or any registrar, for its winding-up, administration, dissolution or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise);

- any liquidator, administrator, *mandataire ad hoc*, *administrateur provisoire*, *administrateur judiciaire, conciliateur* or *mandataire liquidateur* or any other person is appointed as a result of any proceedings described above;

- it declares itself to be insolvent or admits in writing its inability to pay its debts generally as they become due; or

- it is, or is deemed for the purposes of any applicable law to be, unable to pay its debts as they fall due (including without limitation *cessation des paiements*) or insolvent; or

&nbsp;&nbsp;&nbsp;&nbsp;(D) The Corporation, as borrower, ceases to carry on all or a substantial part of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Subject to the provisions of this paragraph, the Shareholder Loan Agreement shall provide an eleven and nine tenths percent (11.9%) per annum payment in kind interest, commencing on the drawdown date of the Shareholder Loan and accruing quarterly thereafter until the applicable Maturity Date or repayment in full.

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**Article 6**<br> **Restrictions on Transfer**

No Securityholder has the right to Transfer any of its Securities except to Persons and in the manner expressly permitted in this Agreement including, without limitation, this Article 6 and Article 7. Any purported Transfer of Securities made in contravention of this Agreement will be null and void to the fullest extent permitted by applicable Law. The Securityholders shall not approve or ratify any Transfer of Securities made in contravention of this Agreement and the Corporation shall not permit any such Transfer to be recorded on the Securities Transfer register (*registres de mouvements de titres*) and Securityholders' individual accounts (*comptes individuels de d*é*tenteurs de titres*) of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1** **Lock-Up Period** 

Except for Transfers permitted or required in accordance with the terms of this Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Reed Investco shall not have the right to Transfer any of its Securities before December, 27, 2027, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Loop Industries shall not have the right to Transfer any of its Securities before the <u>later of</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) December, 27, 2027, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the date on which the Corporation, on its sole decision, completes any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) enters into a sublicence agreement as sublicensor in accordance with the Priority Rights Protocol set out in <u>Exhibit 13.1(a)</u> and the License Agreement, and the applicable Loop Europe Opportunity (as such term is defined in the Priority Rights Protocol set out in <u>Exhibit 13.1(a)</u>) has received the approval from the Board at FID (as such term is defined in the Priority Rights Protocol set out in <u>Exhibit 13.1(a)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) elects to implement the licensed rights directly without the grant of any sub-licensed rights to a sublicensee in accordance with provisions of the License Agreement, and the applicable Loop Europe Opportunity (as such term is defined in the Priority Rights Protocol set out in <u>Exhibit 13.1(a)</u>) has received the approval from the Board at FID (as such term is defined in the Priority Rights Protocol set out in <u>Exhibit 13.1(a)</u>); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) receives, upon written agreement of the Corporation, an irrevocable payment instruction (*delegation de paiement*) given by Loop Industries pursuant to which it is entitled to receive royalties payments relating to the first Pure Licensing Project in accordance with the provisions of Section 4.3(b) of the Priority Rights Protocol set out in <u>Exhibit 13.1(a),</u> 

(collectively, and as applicable, the "**Lock-Up Period**") without the prior written consent of all Securityholders, which consent may be withheld by any Securityholder in its absolute discretion. The Parties agree, that the Lock-Up Period applicable to Loop Industries under this Section 6.1 has been granted to allow the Corporation to (a) fully implement its rights under the License Agreement; or (b) receive royalties payments relating to the first Pure Licensing Project in accordance with the provisions of Section 4.3(b) of the Priority Rights Protocol set out in <u>Exhibit 13.1(a)</u>, in lieu thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **Free Transfers** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following Transfers of Securities shall not be subject to the Lock-Up Period set in Section 6.1, the Right of First Refusal set in Section 7.1, the Tag Along Right set in Section 7.4, or the Drag Along Right set in Section 7.5 (as applicable):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Transfer of Securities by a Securityholder to any of its Affiliates, and *vice versa*, provided that, (y) if the transferee ceases to be an Affiliate of such Securityholder, such transferee shall immediately transfer its Securities back to the initial Securityholder or to an Affiliate thereof, and (z) the Transferor shall, except as otherwise agreed to in writing by the Securityholders, be jointly and severally liable with such transferee for its observance and performance of this Agreement and shall indemnify the other Parties against any Loss incurred as a result of the failure by the transferee to comply with the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Transfer of Securities which is agreed in writing between the Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Transfer of Securities made pursuant to and in accordance with the Put Option Right or Call Option Right set in Article 8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Transfer of Securities made to enforce any Permitted Lien;

provided that all Transfers of Securities pursuant to this Section 6.2 to any transferee who is not a Party may only be completed if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the relevant transferring Securityholder (the "**Transferor**") sends, not less than ten (10) Business Days prior to the date of the envisaged Transfer, a written notice to the Corporation and the other Securityholders setting out (y) the name and address of the relevant transferee or if it is an Entity, its corporate name, registered address and identification number, and (z) the number of Securities to be Transferred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the relevant transferee executes and delivers to the Corporation an Agreement To Be Bound; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the relevant transferee purchases from the Transferor the applicable proportion of the Shareholder Loan owed by the Corporation to the Transferor in accordance with Section 6.6 applied *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Pledge of Securities** 

No Securityholder may grant a Lien on any of its Securities without the prior written consent of all of the other Securityholders, which consent may be withheld by any Securityholder in its absolute discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4** **Deemed Consent** 

Each of the Parties (a) consents to a Transfer of Securities permitted by this Agreement and completed in accordance with its terms, (b) agrees that (i) such consent shall satisfy any restriction on the Transfer of such Securities contained in the Articles, and (ii) no further consent will be required pursuant to the Articles or otherwise for any such Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5** **Prohibited Third Party Buyers** 

Notwithstanding any other provision of this Agreement, no Securityholder shall Transfer any Securities to a given transferee (whether a Third Party Buyer or any other transferee) which is a Restricted Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6** **Stapling** – **Transfer of Securities and Shareholder Loan** 

A Securityholder may not Transfer to a given transferee (whether a Third Party Buyer or any other transferee) any of its Securities or Shareholder Loan without simultaneously Transferring to the same transferee the same proportion of its Securities or Shareholder Loan, as applicable, so that such transferee holds the same mix of Securities and Shareholder Loan before and after completion of the proposed Transfer, it being understood for more certainty that any such Transfer of Securities or Shareholder Loan may not amend the terms or increase the liabilities of the Corporation set forth in any Shareholder Loan Agreement, or in the terms and conditions of any Security, as applicable.

The provisions of this Section 6.6 shall not apply to any free Transfer referred to in Section 6.2(a)(i).

**Article 7**<br> **Securities Sales and Right of First Refusal - Drag Along Right**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1** **Right of First Refusal** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, at any time after the Lock-Up Period, a Shareholder holding less than fifty percent (50%) of the issued and outstanding Ordinary Shares (the "**Offeror**") receives a *bona fide* written offer capable of acceptance by the Offeror (a "**Third Party Offer**") from a Person dealing at arm's length with the Offeror (the "**Third Party Buyer**") to purchase all or part of the Shares owned by the Offeror (the "**Offered Securities** "), which the Offeror is prepared to accept, the Offeror shall, by notice in writing (the "**Offer Notice**") to the other Shareholders (the "**Offerees**") and the Corporation, make an offer (the "**Offer**") to sell the Offered Securities to the Offerees at the same price (the "**Offer Price**") and upon the same terms and conditions as are contained in the Third Party Offer (the "**Right of First Refusal** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Offer Notice shall (i) identify in reasonable detail the Third Party Buyer and, if the Third Party Buyer is not a natural person, those Persons who Control the Third Party Buyer, (ii) be accompanied by a true and complete copy of the Third Party Offer setting out all of its terms (which shall include an offer to purchase the Shareholder Loan, as provided in Section 6.6), and (iii) provide such information concerning the business experience and financial condition of the Third Party Buyer as is reasonably available to the Offeror. The Offer shall not be revocable during the Offer Period except with the prior written consent of all of the Offerees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, subject to the provisions of Section 7.1(d), a Shareholder holding fifty percent (50%) or more of the issued and outstanding Ordinary Shares, at the time such Shareholder receives a Third Party Offer, shall not be required to comply with the provisions of Sections 7.1, 7.2 and 7.3, it being understood, however, that such Shareholder remains bound by the applicable Lock-Up Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Securityholder or any Group Company intends to enter into an agreement, transaction or similar arrangement falling under Section 4.8(a)(iii) with a Restricted Person identified in subparagraphs (b)(i), (b)(ii), (b)(iii), and (b)(iv) of Exhibit 1.1(qqqq) (*Restricted Person*) (a "**Restricted Transaction** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Restricted Transaction is approved by the Board by simple majority by way of an exception to the provisions of Section 4.8(a) described in subparagraph (b) of Exhibit 1.1(qqqq) (*Restricted Person*); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Loop's nominee Director to the Board voted against the approval of such Restricted Transaction,

then, Loop Insdustries shall benefit from a right of first refusal over the applicable Restricted Transaction and the provisions of Sections 7.1(a), 7.1(b), 7.2 and 7.3 shall apply *mutatis mutandis,* being understood, however, that (A) Loop Insdustries, its Affiliates, and/or any third party working jointly with Loop Industries for such purpose shall be the only "Offerees"; (b) the "Offered Securities" may refer to any Securities or assets being transferred as part of the Restricted Transaction; (C) and the "Offer Period" shall be of seventy-five (75) days starting on the date of the approval by the Board by simple majority of the applicable Restricted Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2** **Acceptance of Offer** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Offerees may purchase the Offered Securities rateably based upon the number of Shares owned by them (on a fully diluted basis) on the date the Offer Notice was given or in such other proportion as the Offerees may agree. Each Offeree who wishes to acquire Offered Securities has a period of sixty (60) Business Days from the date the Offer Notice was given (the "**Offer Period**") to accept the Offer and submit a binding (subject to the satisfaction of the required regulatory conditions, as applicable) offer, to acquire its *pro rata* share of the Offered Securities, for a cash consideration equal to the Offer Price. Such acceptance shall be evidenced by a notice in writing given by the Offeree to the Offeror, the Corporation and the other Offerees within the Offer Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the consideration to be received by the Offeror from the Third Party Buyer pursuant to the Third Party Offer is not in cash (i.e., shares, services, goods, rights, etc.), the Offered Securities subject to the Right of First Refusal may, at the option of the Offerees, be paid for in immediately available funds and for a price per Offered Security equivalent to the price per Offered Security to be paid by the Third Party Buyer as part of the Third Party Offer. If an Offeree requests by notice in writing that the Fair Market Value of the Offered Security shall be established, the Parties agree that the Offer Period shall be suspended for the period of time between the notice provided by the Offeree and the final determination of the Fair Market Value in accordance with the Provisions of Article 10.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the first Business Day following the last calendar day of the Offer Period, the Corporation shall send a notice to each Shareholder indicating which Offerees have agreed to purchase the Offered Securities. If (i) an Offeree does not give notice as provided in Section 7.2(a) or otherwise indicates that it does not wish to purchase Offered Securities and the Offerees have not agreed among themselves to acquire those Offered Securities, the Offered Securities that such Offeree had been entitled to purchase (the "**Rejected Securities**") may instead be purchased by the Offerees who did give such notice. Within five (5) Business Days after the end of the Offer Period (the "**Extended Offer Period** "), each Offeree who wishes to purchase Rejected Securities (the "**Remaining Offerees**") will give an additional notice (an "**Additional Notice**") to the Offeror, the Corporation and the other Offerees setting out the number of Rejected Securities it is prepared to acquire. If the Remaining Offerees have offered to acquire a total number of Rejected Securities in excess of the number of Rejected Securities available, unless the Remaining Offerees agree otherwise, the Rejected Securities shall be allocated to the Remaining Offerees based on the lesser of the amount set out in its Additional Notice and its rateable share based on the number of Shares held (on a fully diluted basis) by the Remaining Offerees as of the date of the Offer Notice. If, after allocating the Rejected Securities as provided above, there remain any unallocated Rejected Securities, unless the Remaining Offerees agree otherwise, those Rejected Securities shall be allocated among the Remaining Offerees who did not receive the number of Rejected Securities specified in their Additional Notices based on the number of Securities held (on a fully diluted basis) by those Securityholders as of the date of the Offer Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Offerees do not agree to acquire all of the Offered Securities (including all of the Rejected Securities), the Corporation will so notify each of the Shareholders and the right of the Offerees to acquire any of the Offered Securities will be extinguished, the Offer will be of no further force or effect, and the Offeror may sell all Offered Securities to the Third Party Buyer in accordance with Section 7.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If all the Offered Securities (the "**Purchased Securities**") are being acquired by the Offerees at the Offer Price (the "**Purchase Price** "), the closing of the Sale Transaction shall take place at the Place of Closing at the Time of Closing on the date which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) twenty (20) Business Days after the later of: (A) the expiry of the Offer Period; (B) the obtaining of all the required regulatory clearances or the obtaining of all works council or labor Laws authorisations by the Offerees, as applicable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such other date as the Offerees (the "**Buyer**") and the Offeror (the "**Seller**") may agree (the "**Date of Closing** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Sale Transaction shall be completed in accordance with the general sale provisions of Article 9.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3** **Right to Sell Offered Securities to Third Party** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Offerees have not agreed to acquire all of the Offered Securities by the end of the Offer Period or the Extended Offer Period, as applicable, then, subject to the provisions of this Section 7.3, the Offeror may, within a period of sixty (60) Business Days after the expiry of the Offer Period or the Extended Offer Period, as applicable, sell the Offered Securities to the Third Party Buyer in accordance with the Third Party Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board (excluding for more certainty the Directors nominees of the Offeror) may require proof that the sale to the Third Party Buyer took place in accordance with the Third Party Offer and the Board may refuse to permit the recording of the transfer of the Offered Securities if it has reason to believe that the purchase and sale transaction was completed otherwise than in accordance with the provisions of the Third Party Offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No sale to any Third Party Buyer pursuant to a Third Party Offer shall be valid or effective until the Third Party Buyer (i) complies with Section 6.6, and (ii) executes and delivers to the Corporation an Agreement To Be Bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4** **Mandatory Purchase by Third Party: Tag-Along Right** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, at any time after the Lock-Up Period, a Shareholder holding fifty percent (50%) or more of the issued and outstanding Ordinary Shares (the "**Tag Offeror** "), receives a *bona fide* written offer capable of acceptance by the Tag Offeror, which may cause a Change of Control of the Corporation if the transactions contemplated in such offer are completed and which complies with the requirements set forth in Section 7.4(c) (a "**COC Offer**") from a Person dealing at arm's length with the Tag Offeror (the "**Tag Third Party Buyer**") to purchase for cash all or part of the Shares owned by the Tag Offeror (the "**Tag Offered Securities** "), which the Tag Offeror is prepared to accept without triggering the provisions of Section 7.5, the Tag Offeror and the Tag Third Party Buyer must give notice of the proposed sale (a "**COC Notice**") to the Corporation and the other Securityholders at least fifteen (15) Business Days prior to the proposed completion date of the transactions set forth in the COC Offer. Following the issuance of the COC Notice, the COC Offer shall not be revocable except with the prior written consent of all Securityholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The COC Notice shall (i) identify in reasonable detail the Tag Third Party Buyer and, if the Tag Third Party Buyer is not a natural person, those Persons who Control the Tag Third Party Buyer, (ii) be accompanied by a true and complete copy of the COC Offer setting out all of its terms (which shall include an offer to purchase the Shareholder Loan, as provided in Section 6.6), (iii) include the tag-along offer set forth in Section 7.4(c), and (iv) provide such information concerning the business experience and financial condition of the Tag Third Party Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any COC Offer must include a conditional offer by the Tag Third Party Buyer to purchase from each Securityholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a number of Securities equal to the product of (A) the Proportionate Interest of such Securityholder; and (B) the number of Tag Offered Securities, on the same terms and conditions as the Tag Offeror proposes to sell the Tag Offered Securities to the Tag Third Party Buyer, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the same proportion of the Shareholder Loan of such Securityholder as provided in Section 7.4(f).

*For illustration purposes only, if Loop Industries and Reed Investco each hold respectively one hundred (100) and nine hundred (900) Ordinary Shares, which represent all issued and outstanding Shares, and Reed Investco proposes to sell six hundred (600) Tag Offered Securities to the Tag Third Party Buyer, the Tag Third Party Offer must include a conditional offer to purchase sixty (60) Ordinary Shares from Loop Industries and five hundred forty (540) Ordinary Shares from Reed Investco as well as sixty percent (60%) of the Shareholder Loan held by Loop Industries and sixty percent (60%) of the Shareholder Loan held by Reed Investco, as applicable.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The offer set forth in Section 7.4(c) may be accepted by a Securityholder if it delivers an irrevocable and unconditional notice of acceptance in writing to the Corporation, the Tag Offeror and the Tag Third Party Buyer (the "**Tag-Along Notice**") no later than ten (10) Business Days after receipt by it of the COC Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If a Securityholder gives a Tag-Along Notice within the specified time period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Tag Offeror shall not sell any of the Tag Offered Securities to the Tag Third Party Buyer unless the Tag Third Party Buyer also purchases the Securities of such Securityholder on the same terms as are applicable to the sale of Tag Offered Securities **  by the Tag Offeror; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Securityholder shall give (y) customary representations and warranties relating to its authority, capacity to contract and ownership of the Securities to be Transferred free and clear of Liens, and (z) the same representations and warranties given by the Tag Offeror to the Tag Third Party Buyer with liability thereunder to be allocated between each of them in proportion to the consideration proceeds they each receive over the aggregate consideration they receive for the Transfer of their Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Contemporaneously with the completion of a transaction of purchase and sale under a Tag Third Party Offer, the Tag Third Party Buyer shall purchase from the Tag Offeror and each Securityholder who has given a Tag-Along Notice the applicable proportion of Shareholder Loan owed by the Corporation in accordance with Section 6.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) For the avoidance of doubt, Loop Industries' participation in any transaction of purchase and sale under a Tag Third Party Offer shall not preclude Loop Industries from using its Put Option Right with respect to its remaining Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5** **Drag-Along Right** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Option

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Should Reed Investco decide to accept a *bona fide* offer from a Person dealing at arm's length with Reed Investco (a "**Drag Buyer** "), acting alone or in concert within the meaning of article L. 233-10 of the French commercial code, to purchase all of the issued and outstanding Securities of the Corporation owned by all of the Securityholders (the "**Drag-Along Offer** "), then Loop Industries (the "**Promisor**") irrevocably promises to Transfer, on the same terms and conditions as the Drag-Along Offer, but subject to the provisions of Section 7.5(b)(ii), and at the same time as Reed Investco, all of its Securities to the Drag Buyer (the "**Drag-Along** "), being understood however, that Loop Industries shall (i) only be giving to the Drag Buyer representations and warranties strictly related to its ownership of the Securities and (ii) only indemnify the Drag Buyer for breaches of such limited representations and warranties and default to Transfer such Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For the purpose of the Drag-Along, the Promisor hereby grants to Reed Investco, which accepts, this irrevocable promise to Transfer all of its Securities to the Drag Buyer (the "**Option** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event Reed Investco wishes to exercise the Option, Reed Investco shall notify in writing the Promisor of such intention to exercise the Option (the "**Drag-Along Notice** "). Such Drag-Along Notice shall (i) identify in reasonable detail the Drag Buyer and, if the Drag Buyer is not a natural person, those Persons who Control the Drag Buyer, and (ii) be accompanied by a true and complete copy of the Drag-Along Offer setting out all of its terms (which shall include an offer to purchase the Shareholder Loan, as provided in Section 6.6).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Determination of the exercise price of the Option

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Option is exercised in accordance with the terms provided in Section 7.5(a)(iii), the Promisor undertakes to, subject to the provisions of Section 7.5(b)(ii), Transfer its Securities to the Drag Buyer in accordance with the terms and conditions (including the purchase price) of the Drag-Along Offer as notified to the Promisor pursuant to the Drag-Along Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the other provisions of this Section 7.5 and notwithstanding the type of consideration to be received by Reed Investco from the Drag Buyer pursuant to the Drag-Along Offer (i.e., cash, shares, services, goods, rights, etc.), the Securities of the Promisor subject to the Option may only be paid for in immediately available funds and for a price per Security equivalent to the price per Security to be paid by the Drag Buyer as part of the Drag-Along Offer.Any Party may request by written notice that the Fair Market Value of the applicable Securities be established in accordance with the provisions of Article 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Transfer and the payment of the purchase price will take place at the latest between (i) three (3) months after the date on which the Promisor received the Drag-Along Notice, (ii) the final determination of the Fair Market Value of the applicable Securities, if required by a Party, or (iii) as set out in the Drag-Along Offer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Transfer shall be conditional upon the delivery:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) to the Promisor of any document evidencing the completion of a wire transfer of immediately available funds in an amount at least equal to the purchase price of its Securities, as set forth in Section 7.5(b)(ii), to the account(s) designated by the Promisor in writing to Reed Investco and the Drag Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to Reed Investco of a stock transfer form (*ordre de mouvement)* duly completed and signed, requesting the Corporation to effect the Transfer of the relevant Securities from the Promisor to the Drag Buyer.

**Article 8**<br> **Call and Put Option Right**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Call and Put Option Right in case of Change of Control** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time, including during the Lock-Up Period, Loop Industries undergoes a Change of Control (the "**Affected Loop Securityholder** "), Reed Investco may, upon notice in writing (a "**Call Notice**") to the Corporation and all Shareholders, require the Affected Loop Securityholder to sell all, but not less than all, of the Securities owned by it (collectively, the "**Sold Securities**") to Reed Investco or any of its Affiliates. Thereafter, Reed Investco or its designated Affiliate (a "**Buyer**") shall purchase from the Affected Loop Securityholder (the "**Seller** "), and the Seller shall sell to the Buyer, the Sold Securities at the price per Security and upon the terms set forth in this Article 8 and in Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time, including during the Lock-Up Period, any of Reed Investco (the "**Affected Reed Securityholder**" and collectively with the Affected Loop Securityholder, as applicable, the "**Affected Securityholder**") or the Corporation undergoes a Change of Control, Loop Industries may upon notice in writing (a "**Put Notice**") to the Corporation and all Shareholders, require the Affected Reed Securityholder to purchase all, but not less than all, of the Securities owned by it (collectively, the "**Purchased Securities** "). Thereafter, Loop Industries (the "**Seller**") shall sell to the Affected Reed Securityholder (the "**Buyer** "), and the Buyer shall purchase from the Seller, the Purchased Securities at the price per Security and upon the terms set forth in this Article 8 and in Article 9; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Contemporaneously with the completion of a Sale Transaction contemplated by this Article 8, the Buyer shall purchase from each Seller all Shareholder Loan owed by or due to, as applicable, the Corporation to such Seller in accordance with Section 6.6 applying *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Shareholder accepts its Call Option Right or Put Option Right, as applicable, as an option only, which the applicable Shareholder other than the applicable Affected Securityholder have the right, but not the obligation, to exercise freely, in accordance with this Article 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Parties hereby agree that the Call Option Right or Put Option Right, as applicable, is a unilateral undertaking (*promesse unilat* é *rale d* ' *achat*) within the meaning of article 1124 of the French Civil Code. For the avoidance of doubt, such Call Option Right or Put Option Right, as applicable, may not be revoked under any circumstances. Consequently, the purchase or sale (as applicable) shall be binding, final and unconditional upon delivery to the Affected Securityholder by the other Shareholders of a Call Notice or Put Notice in accordance with the terms hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2** **Calculation of Purchase Price** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The purchase price for the Purchased Securities or Sold Securities, as applicable, under Section 8.1 (the "**Purchase Price**") shall be the Fair Market Value of the Securities as set out in the Call Notice or Put Notice, as at the date the Call Notice or Put Notice is delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If an Affected Securityholder who receives a Call Notice or Put Notice disagrees with the Fair Market Value set out in the Call Notice or Put Notice, and notifies the Corporation and the other Shareholders that it disagrees with such value within five (5) Business Days of receipt of the notice (the "**Disagreement Notice** "), the Fair Market Value shall be determined in accordance with the provisions of Article 10 and the Purchase Price shall be the Fair Market Value of the Securities as so determined. If no Disagreement Notice is received within such prescribed period, the Parties shall be deemed to have accepted the Fair Market Value as set out in the applicable notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3** **Closing** 

The closing of a Sale Transaction contemplated by this Article 8 shall take place at the Place of Closing at the Time of Closing on the date (the "**Date of Closing**") which is the later of (a) ten (10) Business Days after obtaining of all the required regulatory clearances or the obtaining of all works council or labor Laws authorisations by the Affected Securityholder, or (b) ten (10) Business Days after the Purchase Price for the Purchased Securities is finally determined in accordance with the provisions of Article 10.

**Article 9**<br> **Procedure For Sale Of Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Application of Sale Provisions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as may otherwise be expressly provided in this Agreement, the provisions of this Article 9 shall apply to any sale of Securities between Securityholders or between Securityholders and the Corporation pursuant to the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the purpose of this Article 9, the terms "**Seller** ", "**Buyer** ", "**Date of Closing** ", "**Purchase Price**" and "**Purchased Securities**" with respect to any Sale Transaction shall have the meanings specified in Article 7 and Article 8, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **Obligations of Seller** 

At or prior to the Time of Closing, the Seller shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) assign and transfer to the Buyer the Purchased Securities;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) deliver to the Buyer the duly completed, signed and dated transfer orders (*ordres des mouvements*) with respect to the transfer of the Purchased Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) cause the Corporation to deliver to the Buyer the share transfer registry (*registres des mouvements de titres*) and the shareholders' individual accounts (*comptes individuels d* ' *actionnaires*) of the Corporation reflecting completion of the transfer of the Purchased Securities from the Seller to the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) do all other things required in order to deliver good and marketable title to the Purchased Securities to the Buyer free and clear of all Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) deliver to the Corporation resignations of the Seller its nominee Directors and Officers of the Corporation, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) deliver to the Corporation releases signed by the Seller and its nominee Directors and Officers, if any, of all claims they (or any of them) may now or in the future have against the Corporation with respect to any matter or thing whatsoever arising up to and including the Time of Closing, except for any claims (i) which might arise out of the Sale Transaction; (ii) based on theft, fraud, wilful or illegal misconduct or gross negligence of the Corporation, its Directors or Officers; or (iii) any claims arising out of *bona fide* disputes arising prior to the Date of Closing, the cost or value of which has not been included in any determination of Fair Market Value of the Purchased Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) deliver to each of the remaining Securityholders releases signed by the Seller, and its nominee Directors and Officers, if any, of all claims they (or any of them) may now or in the future have against each remaining Securityholder and its nominee Directors and Officers with respect to any matter or thing whatsoever arising up to and including the Time of Closing, except for any claims (i) which might arise out of the Sale Transaction; (ii) based on theft, fraud, wilful or illegal misconduct or gross negligence of the Shareholder, its nominee Directors and Officers, if any; or (iii) any claims arising out of *bona fide* disputes arising prior to the Date of Closing, the cost or value of which has not been included in any determination of Fair Market Value of the Purchased Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3** **Seller Representations and Warranties** 

Each Seller shall represent and warrant to the Buyer of the Purchased Securities effective as at the Time of Closing, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Purchased Securities are beneficially owned by the Seller and are free and clear of all Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Person has any agreement or any option or right capable of becoming an agreement for the purchase or other acquisition of the Purchased Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Sale Transaction will not result in a breach or a violation of, or conflict with, or allow any other Person to exercise any rights under, any contracts, agreements or instruments to which the Seller is a party or pursuant to which any of its assets or property may be bound.

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The representations and warranties shall survive closing of the Sale Transaction and any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4** **Deliveries to Seller** 

At or prior to the Time of Closing, each of the remaining Securityholders shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) deliver to the Seller releases signed by it and its nominee Directors and Officers, if any, of all claims they (or any of them) may now or in the future have against the Seller and its nominee Directors and Officers, if any, with respect to any matter or thing whatsoever arising up to and including the Time of Closing, except for any claims (i) which might arise out of the Sale Transaction; (ii) based on theft, fraud, wilful or illegal misconduct or gross negligence of the Seller, its nominee Directors and Officers, if any; or (iii) any claims arising out of *bona fide* disputes arising prior to the Date of Closing, the cost or value of which has not been included in any determination of Fair Market Value of the Purchased Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) cause the Corporation to deliver to the Seller releases signed by the Corporation of all claims it may now or in the future have against the Seller, and its nominee Directors and Officers, if any, with respect to any matter or thing whatsoever arising up to and including the Time of Closing, except for any claims (i) which might arise out of the Sale Transaction; (ii) based on theft, fraud, wilful or illegal misconduct or gross negligence of the Seller, its nominee Directors and Officers, if any; or (iii) any claims arising out of bona fide disputes arising prior to the Date of Closing, the cost or value of which has not been included in any determination of Fair Market Value of the Purchased Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5** **Payment of Purchase Price** 

Unless otherwise agreed in the Sale Transaction and permitted by this Agreement, the Purchase Price shall be paid by the Buyer in full by wire transfer at the Time of Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6** **Non-Compliance With Certain Conditions** 

If at the Time of Closing the Purchased Securities are not free and clear of all Liens, the Buyer may, without prejudice to any other rights which it may have, purchase the Purchased Securities subject to such Liens or in the absence of such evidence or certificate, and, in that event, the Buyer shall, at the Time of Closing, (i) assume all obligations and liabilities with respect to such Liens, and (ii) make the payment of all transfer, documentary, notarial, registration, stamp and other similar Taxes that may be levied or imposed by reason of the transfer to the Buyer of the Purchased Securities; and in each such case, the Purchase Price payable by the Buyer for the Purchased Securities shall be satisfied, in whole or in part, as the case may be, by such assumption or payment and the amount so assumed or paid shall be deducted from the Purchase Price payable at the Time of Closing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7** **Non-Completion by Seller** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, at the Time of Closing, the Seller fails to complete the Sale Transaction, the Buyer may deposit the price of the Purchased Securities with the Escrow of its choice. In such case, the mere remittance to the Corporation of a copy of the Put Notice and a receipt from the Escrow shall be deemed a duly executed transfer order and shall cause the Corporation, which the Corporation hereby accepts, to register the corresponding transfer of Purchased Securities in the Securities Transfer registry (*registres des mouvements de titres*) and the relevant individual shareholders' accounts (*comptes individuels d* ' *actionnaires*). As per article R. 228-10 of the French Commercial Code, the date of transfer of ownership of the Purchased Securities would be deemed set by the Parties on the date of receipt by the Corporation of a copy of the Put Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller shall be entitled to receive the amount deposited pursuant to Section 9.7(a) (less reasonable and documented expenses (including legal fees) incurred in holding such funds) together with the releases to which it may be entitled pursuant to Section 9.4 on delivery to the Buyer of the documents referred to in Section 9.2 and in compliance with all other provisions of this Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.8** **No solidarity** 

For greater certainty, the Parties acknowledge and agree that where a Sale Transaction involves more than one Buyer, the Buyers in such Sale Transaction are not solidarily liable for the payment of the Purchase Price for the Purchased Securities or the repayment or assumption of any Debt, but are only liable for their agreed share.

**Article 10**<br> **Fair Market Value**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1** **Purchase Price for Securities** 

The provisions of this Article 10 shall apply with respect to any determination of Fair Market Value required to be made pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2** **Meaning of Fair Market Value** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For purposes of this Agreement, "**Fair Market Value**" means the price per Security, determined by a Valuator pursuant to this Article 10 as of the relevant Valuation Date, that would be received upon a sale of all of the issued and outstanding Shares in a single transaction determined in an open and unrestricted market between prudent parties, acting at arm's length and under no compulsion to act, and having reasonable knowledge of all relevant facts concerning the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The determination of Fair Market Value shall be made as if the Corporation were a "*going concern*" (except to the extent that market, financial, economic, business or other conditions dictate different criteria in the reasonable judgment of the Valuator) without any discount for a minority interest or any premium for control. Fair Market Value shall not be reduced because (i) the Securities are not publicly traded, (ii) the Seller owns a minority interest in the Corporation, or (iii) the Corporation may lose the services of the Seller as a result of the Sale Transaction. The proceeds of life insurance, if any, which are payable to the Corporation because of the death of a Seller shall not be taken into account in making such valuation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3** **Determination of Fair Market Value** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon reception of a Disagreement Notice, in accordance with Section 8.2(b), or when the Fair Market Value must otherwise be established in accordance with the terms of this Agreement, the Seller and the Buyer (or the applicable Parties) shall negotiate expeditiously and in good faith to arrive at a mutually agreeable Fair Market Value within ten (10) Business Days after the reception of the Disagreement Notice (or such longer period of time as the Buyer and the Seller agree). If an agreement is reached, the amount so determined and agreed shall become the Fair Market Value of the Securities for purposes of the Sale Transaction to which it relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Seller and Buyer are unable to agree on the Fair Market Value in accordance with Section 10.3(a), the matter will be submitted for determination to an independent qualified business valuator mutually agreed to by the Seller and Buyer and, failing such agreement within a further period of five (5) Business Days, such independent qualified business valuator will be appointed by the President of the commercial court of Paris (*Tribunal de commerce de Paris*) according to the accelerated procedure (*proc* é *dure acc* é *l* é *r* é *e au fond*) on the demand of the most diligent Party (the "**Valuator** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Valuator so selected shall determine Fair Market Value as quickly as practicable and, in any event, no later than twenty (20) Business Days after the date of its selection having regard to the factors identified in Section 10.2. The Valuator shall deliver its report (the "**Valuator** ' **s Report**") to the Corporation, the Seller and the Buyer and the Valuator's Report shall be conclusive and binding on all parties. The Fair Market Value so determined shall become the Fair Market Value of the Securities for purposes of the Sale Transaction to which it relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In determining the Fair Market Value of the Shares, the Valuator shall be considered an expert, acting pursuant to article 1592 of the French Civil Code, and shall not be construed as acting as an arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4** **Cost and Expenses** 

The costs and expenses of the Valuator incurred in connection with preparation of the Valuator's Report shall be shared equally by the Seller and the Buyer. If there is more than one Buyer, the Seller shall pay 50% of the cost and expenses and the Buyers shall pay the remaining amount rateably based on the number of Securities being acquired. If there is more than one Seller, the Buyer shall pay 50% of the cost and expenses and the Sellers shall pay the remaining amount rateably based on the number of Securities being sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5** **Extended Meaning** 

For purposes of Sections 10.2 and 10.3, a reference to the Buyer where there is more than one Buyer means the Buyers acting jointly as if they were one Buyer and a reference to a Seller where there is more than one Seller means the Sellers acting jointly as if they were one Seller.

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**Article 11**<br> **Anti-dilution**

Any issuance of new Securities (a "**Dilutive Issuance**"), including any share capital increase or other forms of equity injections in the Corporation, shall be approved in accordance with this Agreement and made in accordance with the following rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Securities shall be issued at Fair Market Value, as determined by the Board based upon the report of a recognized valuation firm with first rank reputation, unless otherwise agreed by the Securityholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Securityholders will have the right to participate in the Dilutive Issuance in proportion of their Proportionate Interest in order for such Securityholders to maintain their shareholding percentage which they held immediately prior to the Dilutive Issuance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Securityholder wishing to subscribe to the Dilutive Issuance may designated any of its Affiliates to subscribe all or part of its entitlement.

**Article 12**<br> **Restrictive Covenants**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1** **Non-Interference** 

At all times during which a Party is a Securityholder and for a period of two (2) years thereafter, a Securityholder shall not on its own behalf or on behalf of, or together with, any other Person, directly or indirectly, in any capacity whatsoever make statements which are reasonably likely to adversely affect the public standing of the Corporation or of any other Securityholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2** **Confidentiality** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Securityholder acknowledges that all records, material and information obtained by it and relating to the Corporation (other than information and material which the Corporation is required to deliver to the Securityholders under applicable Laws) and to each individual Securityholder are and shall remain the exclusive property of the Corporation or the applicable Securityholder, as the case may be. Each Securityholder shall, and shall cause its representatives (including any Director Representatives) to, keep in the strictest confidence, not disclose and not use, without the prior written consent of all of the Securityholders (or of the applicable Securityholder in connection with its information), any non-public information pertaining to or concerning the Corporation or any Securityholder ()"**Confidential Information**") including all budgets, forecasts, analyses, financial results, costs, margins, wages and salaries, bids and other business activities, all supplier and customer lists, all non-public intellectual property including trade secrets, unfiled patents, technical expertise and know-how and all other information not generally known outside the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Securityholder has, in compliance with its regulatory obligations, to issue any press release, regulatory filing or other public communication, including any SEC filing relating to the Group and/or its Business, such Securityholder (the "**Reporting Securityholder**") shall submit to the other Securityholders a draft of any such public communication (or relevant part thereof) for their comments, at least two (2) Business Day prior to the issuance thereof if practicable. The Reporting Securityholder shall consider in good faith comments provided by the other Securityholders on such communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section 12.2(a) shall not preclude a Securityholder from disclosing or using Confidential Information which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is known to the receiving party and with respect to which the receiving party does not have any obligation of confidentiality;

&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) is disclosed, without obligation of confidentiality, to the receiving party by a Person not party to this Agreement and who is entitled to disclose such information without breaching an obligation of confidentiality; 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) is required to be disclosed by Law, whether under an order of a court or other Governmental Authority or through other legal process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition, disclosure may be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to any Valuator in connection with a calculation of Fair Market Value being undertaken pursuant to Article 10;

&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 the context of a Transfer of Securities permitted by this Agreement (provided that any third party executes a confidentiality agreement in a form reasonably acceptable to 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;(iii) to professional advisors or investors of the Securityholder (provided that any third party executes a confidentiality agreement in a form reasonably acceptable to the Corporation); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to a court of competent jurisdiction in the context of any action brought up for the purpose of enforcing a Securityholder's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Securityholder acknowledges and agrees that the obligations under this Section 12.2 are to remain in effect for the entire duration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.3** **Remedies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Securityholder (i) has carefully considered the nature and extent of the restrictive covenants and other obligations set forth in this Article 12, (ii) expressly acknowledges that this Article 12 is reasonable in all respects, and (iii) irrevocably waives (and agrees not to raise) as a defence any issue of reasonableness in any proceeding to enforce the provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Securityholder acknowledges that a breach or threatened breach by it of any provision of this Article 12 will result in the Corporation and the other Securityholders suffering irreparable harm which cannot be calculated or fully or adequately compensated by recovery of damages alone. Accordingly, each Securityholder acknowledges that the Corporation and any other Securityholder shall be entitled to interim and permanent injunctive relief, specific performance and other equitable remedies, in addition to any other relief to which it may become entitled.

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**Article 13**<br> **Priority Rights and Opportunities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.1** **Priority Rights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Loop Industries hereby grants to the Corporation a right of first refusal to, directly or indirectly through its Subsidiaries, participate in the development, design, financing, construction, ownership and operation, including by concluding all arrangements it deems necessary (including with third parties), of waste conversion and recycling facilities throughout the Territory which integrate the Loop Technology (the "**Recycling Facilities**") in accordance with the terms and conditions of the Priority Rights Protocol set out in <u>Exhibit 13.1(a)</u> (the "**Priority Rights** "). The Corporation hereby accepts such grant of Priority Rights.

**Article 14**<br> **Strategic Transactions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.1** **Rendez-Vous Clause Regarding Strategic Transactions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to applicable Laws (including securities laws and stock exchange regulations) and any confidentiality undertaking binding on Loop Industries, in the event Loop Industries would be seriously considering a strategic transaction on its share capital (including any delisting of Loop Industries), then before implementing or actively pursuing it, Loop Industries shall promptly inform Reed Investco and convene a meeting to discuss in good faith the opportunity for Reed Investco to participate in such transaction.

**Article 15**<br> **Dispute Resolution**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.1** **Best Endeavours to Settle Disputes** 

Any dispute, claim, question or difference (including a dispute as to the applicability of this Article 15 or any of its provisions) (a "**Dispute**") between any of the Parties arising out of, relating to, or in connection with, this Agreement (other than Disputes with respect to Fair Market Value which will be resolved in the manner set out in Article 10) is to be resolved in accordance with the procedures set out in the following Sections 15.2 and 15.3, which are, subject to Section 12.3 of this Agreement, the exclusive procedures for the resolution of Disputes between Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.2** **Efforts to Settle Disputes** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties involved in a Dispute (the "**Disputing Parties**") shall attempt in good faith to resolve the Dispute promptly by consultation and negotiation among senior management of the Disputing Parties who have decision-making authority with a view to reaching a just and equitable solution satisfactory to all Disputing Parties. However, at any time, a Disputing Party may give the other Disputing Parties written notice (the "**Initial Notice**") of any Dispute not so resolved. Within ten (10) Business Days after delivery of an Initial Notice, each recipient Disputing Party shall deliver to the others a written response. Both the Initial Notice and the response must include a statement of that Disputing Party's position and a summary of arguments supporting that position. Within twenty (20) Business Days after delivery of the Initial Notice, the Disputing Parties and their representatives, if any, shall meet at mutually acceptable times and places, as often as they reasonably deem necessary, to attempt to resolve the Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All negotiations pursuant to this Section 15.2 are confidential and are to be treated as compromise and settlement negotiations for purposes of applicable rules of evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.3** **Litigation** 

If the Dispute is not resolved by non-binding means as provided in Section 15.2, either Party may initiate litigation upon seven (7) Business Days prior written notice to the other Party; provided, however, that if one Party has requested the other to participate in a non-binding procedure and the other Party has failed to participate, the requesting Party may initiate litigation before expiration of the above period.

**Article 16**<br> **Miscellaneous**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.1** **Term of Agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement comes into effect on this date and will terminate on the earlier 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) with respect to any Securityholder, on the date on which such Securityholder no longer owns any Securities, provided that the disposition of such Securities has taken place, in compliance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the date on which one Person acquires all of the issued and outstanding Securities in compliance with 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;(iii) the date on which this Agreement is terminated by written agreement of all the Securityholders; 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) twenty (20) years following the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The termination of this Agreement shall be without prejudice to any liability or any obligation in respect of any matters, undertakings or conditions which shall not have been complied with the relevant Party prior to such termination, including any obligation of a Party to make a payment for any Securities purchased pursuant to the provisions of this Agreement or to pay any other amounts owing by it under this Agreement prior to the date of such termination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.2** **Notice** 

Any notice, direction, consent or other communications given under this Agreement must be in writing and delivered by courier, by personal delivery or by electronic transmission (including by email) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to Loop Industries at:

**Loop Industries, Inc.**

480 Fernand-Poitras

Terrebonne, Québec, J6Y 1Y4

Canada

Attention: Daniel Solomita (Founder & CEO) and Fady Mansour (CFO)

Email: [\*\*\*]

with a copy (which does not constitute notice to Loop Industries) to:

**Norton Rose Fulbright Canada LLP**<br> 1 Place Ville Marie, Suite 2500<br> Montréal (Québec) H3B 1R1<br> Canada

Attention: Vincent Filiatrault and Marc-Simon Duquette<br> Email: <u>vincent.filiatrault@nortonrosefulbright.com</u>*;*

<u>marc-simon.duquette@nortonrosefulbright.com</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to Reed Investco at:

**Reed Cirdular Economy**

15 rue Soufflot

75005 Paris,

France

Attention: Mr. Julien Touati and Mr. Joni Fontoura

Emails: [\*\*\*]

with a copy (which does not constitute notice to Reed Investco) to:

**Testu, Hill, Henry-Gaboriau & Associ**é**s** – **STH2** 

13, rue Royale

75008 Paris,

France

**Attention:** Sidonie Hill<br> **Email:** <u>hill@sth2.law</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the Corporation at:

**Infinite Loop Europe SAS**

15 rue Soufflot

75005 Paris,

France

Attention: Mr. Julien Touati and Mr. Joni Fontoura

Emails: [\*\*\*]

With a copy (which does not constitute notice to the Corporation) to:

**Norton Rose Fulbright Canada LLP**<br> 1 Place Ville Marie, Suite 2500<br> Montréal (Québec) H3B 1R1<br> Canada

Attention: Vincent Filiatrault and Marc-Simon Duquette<br> Email: <u>vincent.filiatrault@nortonrosefulbright.com</u>;

<u>marc-simon.duquette@nortonrosefulbright.com</u><u> </u>

and to:

**Testu, Hill, Henry-Gaboriau & Associ**é**s** – **STH2** 

13, rue Royale

75008 Paris,

France

**Attention:** Sidonie Hill<br> **Email:** hill@sth2.law

Any such communication shall be deemed to have been given and received on the day on which it was so delivered or transmitted (if a Business Day, and if not, then the next succeeding Business Day) unless received after 5:00 pm (local time in the place of receipt) in which case it shall be deemed to have been given and received on the next Business Day.

In the case of a communication by email or other electronic means, if an autoreply is received indicating that the email is no longer monitored or in use, delivery must be followed by the dispatch of a copy of such communication pursuant to one of the other methods described above; provided, however, that any communication originally delivered by electronic means shall be deemed to have been given on the date stipulated above for electronic delivery.

A Person may change its address for service by notice given in accordance with the foregoing and any subsequent communication must be sent to such Person at its changed address.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.3** **Liability** 

Save as expressly specified therein, the liability of each Party under this Agreement shall be several (*non solidaire*) and not joint nor joint and several, irrespective of the fact that the Parties are referred to as a same category of Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.4** **No Third Party Beneficiaries** 

Except as otherwise expressly provided in this Agreement, the Parties do not intend that this Agreement benefit or create any legal or equitable right, remedy or cause of action in, or on behalf of, any Person other than a Party and no Person, other than a Party, is entitled to rely on the provisions of this Agreement in any action, suit, proceeding or other forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.5** **No Agency or Partnership** 

Nothing contained in this Agreement shall make or constitute any Party the agent or partner of any other Party and it is understood that no Party has the capacity to make commitments of any kind whatsoever or incur obligations or liabilities binding upon any other Party except to the extent expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.6** **Expenses** 

Except as otherwise expressly provided in this Agreement, all costs and expenses (including the fees and disbursements of legal counsel, investment advisers and accountants) incurred in connection with this Agreement and the transactions contemplated in this Agreement shall be paid by the Party incurring such expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.7** **Tax** 

All sums payable by any Party under this Agreement shall be paid free and clear of all deductions or withholdings (including in respect of Tax) unless the deduction or withholding is required by Laws, in which event such Party shall at the same time pay such additional amounts as shall be required to ensure that the net amount received and retained by the other Parties (on an after Tax basis) will equal the full amount which would have been received and retained by it had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.8** **Waiver** 

The failure or delay by a Party in enforcing, or insisting upon strict performance of, any provision of this Agreement does not constitute a waiver of such provision or in any way affect the enforceability of this Agreement (or any of its provisions) or deprive a Party of the right, at any time or from time to time, to enforce or insist upon strict performance of that provision or any other provision of this Agreement. Any waiver by a Party of any provision of this Agreement is effective only if in writing and signed by a duly authorized representative of such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.9** **Entire Agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and all Agreements To Be Bound constitute the entire agreement between the Parties and supersede all prior agreements, understandings, negotiations and discussions relating to the subject matter thereof, whether oral or written. There are no representations, warranties, covenants, conditions or other agreements, express or implied, between the Parties relating to the subject matter hereof except as specifically set forth in this Agreement and in any Agreement To Be Bound. None of the Parties has relied or is relying on any other information, discussions or understandings in entering into this Agreement or any Agreement To Be Bound.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For illustration purposes only and without contradicting the foregoing, the Parties have decided to append as <u>Exhibit</u> <u> </u> <u>16.9</u> a general summary of the key commercial terms agreed upon verbally by representatives of Reed Management and Loop Industries on or about October 13, 2024. These general commercial terms have been negotiated freely between the Parties and have been included in the body of this Agreement and other Transaction Documents (as such term is defined in the Purchase Agreement). If there is a conflict between the provisions of this Agreement or any other Transaction Document (as such term is defined in the Purchase Agreement), on the one hand, and the provisions of <u>Exhibit</u> <u> </u> <u>16.9</u>, on the other hand, then the provisions of this Agreement or any other Transaction Document (as such term is defined in the Purchase Agreement) shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.10** **Successors and Assigns** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement is effective on the date hereof and shall be binding upon and ensure to the benefit of the Parties and their respective successors, heirs, personal representatives and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither this Agreement nor any of the rights or obligations under this Agreement shall be assignable or transferable by any Party unless:

&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) (y) the assignor Transfers all Securities owned by it to the assignee and such Transfer is permitted under and completed in accordance with this Agreement, and (z) the assignee executes an Agreement To Be Bound; 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) prior agreed in writing by the other Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.11** **Independent advice** 

Each Party acknowledges that (i) it has obtained independent financial, legal and Tax advice for the purpose of entering into this Agreement, (ii) it is not relying on any advice or any duty to advise from any other Party, (iii) it is fully aware of the scope and consequences of its rights and obligations under this Agreement, and (iv) it has had full ability to negotiate the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.12** **Variation** – **Termination** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Exhibit 1.1(qqqq), no variation of this Agreement shall be effective unless in writing and signed by or on behalf of each of the Parties; and no termination, lapse or variation of this Agreement may be effective unless such termination, lapse or variation is expressly provided for in this Agreement as signed between the Parties hereto or is subsequently agreed in writing and signed by each of the relevant Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Parties hereto expressly and irrevocably waives the following provisions of the French Civil Code which shall not be applicable to this Agreement (nor to any agreement or document entered into by all or some of the Parties hereto in connection with this Agreement): (i) articles 1186 and 1187 of the French Civil Code (regarding the right to claim that a contract has lapsed as a result of any other contract contributing to the completion of the transactions contemplated hereunder having terminated, lapsed or being ineffective for any reason whatsoever), (ii) article 1195 of the French Civil Code (regarding the occurrence of unforeseen circumstances referred to in such article and each Party hereto agrees to assume any risk which may arise from any of such unforeseeable circumstances), (iii) article 1223 of the French Civil Code (regarding the right for a creditor to accept a partial performance of a contract and claim a corresponding reduction of the price), (iv) article 1226 of the French Civil Code (regarding the right for a creditor to terminate a contract at its own risks), and (v) article 1218 of the French Civil Code (regarding the debtor's right to suspend the performance of or to terminate a contract in case of a *force majeure* event), and accordingly no termination, lapse or variation of this Agreement (or of any agreement or document entered into in connection with this Agreement) shall be permitted on the grounds of such provisions of the French Civil Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parties acknowledge and agree that specific performance may be sought under or in connection with this Agreement, that such specific performance, if requested by one Party, would not be regarded as "*manifestly disproportionate*" under the meaning of article 1221 of the French Civil Code and each Party expressly waives any such defense to contest or dispute the request for specific performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.13** **Severability** 

If any provision of this Agreement is determined by a court of competent jurisdiction to be illegal, invalid or unenforceable, that provision will be severed from this Agreement and the remaining provisions will continue in full force and effect, without amendment. The Parties shall amend any invalid or unenforceable term or provision to the extent reasonably required to make such provision valid or enforceable and corresponding to the purpose thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.14** **Further Assurances** 

Each of the Parties shall promptly do such further acts and execute such documents as any other Party may reasonably require from time to time for the purpose of giving effect to this Agreement and shall use all reasonable efforts and take all such steps as may be reasonably within its power to implement to their full extent, in good faith, the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.15** **Cooperation** 

Each Party shall cooperate with the others and execute and deliver to the others such other instruments and documents and take such other actions as may be reasonably requested from time to time in connection with the execution and performance of this Agreement.

In addition, in case of any Transfer of Securities to any Third Party Buyer in accordance with this Agreement, the other Parties shall cooperate and shall cause the Corporation and the Group Companies and their respective management teams to cooperate with the relevant Securityholder in order to facilitate such Transfer organizing management presentations and Q&A, provided, however, that such cooperation shall not impede the normal course activities of the Parties and the Group Companies.

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In particular, the Corporation, the CEO and, if any, the Deputy CEO shall prepare a business plan of the Group, shall organize and procure access to a data room, shall fully cooperate in the preparation of vendor's due diligence reports by the advisers appointed by the relevant Securityholder, shall prepare and participate in management presentations and Q&A sessions, and more generally shall do whatever is reasonably required by the relevant Securityholder to carry out the contemplated Transfer in the best conditions and cooperate in this respect with the relevant Securityholder, with a view to facilitating the proposed Transfer of Securities and maximizing its price conditions, provided, however, that such cooperation shall not impede the normal course activities of the Parties and the Group Companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.16** **Electronic signature** 

In accordance with articles 1366 and 1367 of the French Civil Code, this Agreement shall be signed electronically. The parties to this Agreement acknowledge and agree that electronic signatures via DocuSign, which is compliant with EU eIDAS Regulation (EU) 910/2014, were used for the execution of this Agreement by its signatories. Furthermore, in accordance with the provisions of article 1375 of the French Civil Code, the obligation to deliver an original copy to each of the parties to this Agreement is not necessary as proof of the commitments and obligations of each party to this Agreement. The delivery of an electronic copy of this Agreement directly by DocuSign to each party to this Agreement shall constitute sufficient and irrefutable proof of the commitments and obligations of each party to this Agreement.

(The remainder of this page is intentionally left blank; signature page follows.)

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**IN WITNESS WHEREOF** the Parties have executed this Securityholders Agreement.

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| | |
|:---|:---|
| **LOOP INDUSTRIES, INC.** | **LOOP INDUSTRIES, INC.** |
| By: | /s/ Daniel Solomita |
|  | Name: Daniel Solomita |
|  | Title: Chief Executive Officer and<br> President<br> Duly authorized for the purposes hereof |
| **REED CIRCULAR ECONOMY** | **REED CIRCULAR ECONOMY** |
| By: | /s/ Julien Touati |
|  | Name: Julien Touati |
|  | Title: President<br> Duly authorized for the purposes hereof |
| **INFINITE LOOP EUROPE SAS** | **INFINITE LOOP EUROPE SAS** |
| By: | /s/ Julien Touati |
|  | Name: Julien Touati |
|  | Title: President<br> Duly authorized for the purposes hereof |
| **MR. DANIEL SOLOMITA** | **MR. DANIEL SOLOMITA** |
|  | /s/ Daniel Solomita |

---

*[Signature Page* – *Infinite Loop Europe SAS - Securityholders Agreement]*

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**EXHIBIT (D)**

**<u>Securityholders</u>**<u>'</u> **<u>interests in the Corporation on the date hereof</u>**

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| | |
|:---|:---|
| **Security Holder** | **Interest in the Corporation** |
| Loop Industries, Inc. | 250 Ordinary Shares |
| Reed Circular Economy | 2250 Ordinary Shares |
| Reed Circular Economy | €10,000,000 Shareholder Loan |

---

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**EXHIBIT 1.1(jjj)**<br> **TERMS AND CONDITIONS OF THE LOOP INDUSTRIES CONVERTIBLE PREFERRED STOCKS**

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**<u>EXHIBIT 1.1(kkk)</u>**

**LOOP TECHNOLOGY**

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**<u>EXHIBIT</u>**<u> </u>**<u>1.1(qqqq)</u>**

**RESTRICTED PERSON**

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**EXHIBIT 3.4(d)(i)**<br> **INDEMNIFICATION MATTERS**

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**EXHIBIT 5.1(a)**<br> **FORM OF SHAREHOLDER LOAN AGREEMENT**

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**EXHIBIT 6.2**<br> **FORMS OF AGREEMENT TO BE BOUND**

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**<u>EXHIBIT 7.1(a)</u>**

**LOOP INDUSTRIES MARKS**

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**<u>EXHIBIT 13.1(a)</u>**

**PRIORITY RIGHTS PROTOCOL**

**Article 1** <br> **Interpretation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** **Definitions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Alternative Partner**" has the meaning specified in Section 2.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Alternative Proposal**" has the meaning specified in Section 2.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Authorized Licensee**" has the meaning specified in Section 4.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Carved-Out Project**" has the meaning specified in Section 2.4(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Capital Call Notice**" has the meaning specified in Section 3.1(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Capital Contribution**" has the meaning specified in Section 3.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Capital Contribution Default**" has the meaning specified in Section 3.1(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Capital Contribution Default Cure Period**" has the meaning specified in Section 3.1(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Conditional License Agreement**" means the conditional license agreement dated as of the date of the Securityholders Agreement and entered into between Loop Industries, as licensor, and the Corporation, as licensee, granting a [\*\*\*] license under the Loop Technology, [\*\*\*], as may be amended or modified from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Contribution Shortfall Amount**" has the meaning specified in Section 3.1(f)(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Defaulting Party**" has the meaning specified in Section 3.1(f)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Escrowed Assets**" has the meaning specified in Section 5.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Evergreen License**" means, subject to the terms of a formal technology license agreement to be negotiated in good faith, a non-transferable, perpetual *(or for the legal term of protection of the Intellectual Property Rights in the Technology, if perpetual undertakings are not valid under the applicable law)*, non-exclusive, royalty-bearing license under the Loop Technology, with limited sublicensing rights and subject to certain restrictions and conditions, to (i) build or retrofit Recycling Facilities in the Territory for the purpose of manufacturing applicable licensed products, (ii) manufacture applicable licensed products at such Recycling Facilities, (iii) sell and distribute applicable licensed products manufactured in accordance with any ancillary marketing agreement (to the extent it remains in effect); and (iv) otherwise use and modify applicable licensed products.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Expert**" has the meaning specified in Section 9.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**FID**" means the final investment decision date, which shall be the date of the formal approval from the relevant Entity to proceed with the conversion of a Loop Europe Opportunity into an investment in a Loop Europe Facility, marking the commitment to allocate capital resources and move from the project planning stages to execution of the definitive agreements, it being understood that FID shall not occur until all material terms and conditions relating to feedstock sourcing, initial customer contracts, engineering package, land acquisition, financing and partnership structure have been agreed upon by the applicable stakeholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Foreign Sale**" has the meaning specified in Section 10.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Initial Offer**" has the meaning specified in Section 2.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**License Agreement**" has the meaning specified in Section 1.1(ddd) of the Securityholders' Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Licensing Offer**" has the meaning specified in Section 4.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Loop Europe Facilities**" means the Recycling Facilities in the Territory arising from the Loop Europe Opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Loop Europe Opportunities**" has the meaning specified in Section 2.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Loop Europe Opportunity Offer**" has the meaning specified in Section 2.4(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Loop Europe Project**" has the meaning specified in Section 2.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Loop Industries Marks**" has the meaning specified in Section 7.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Negotiation Period**" has the meaning specified in Section 2.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Non-Defaulting Party**" has the meaning specified in Section 3.1(f)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Ongoing Projects**" means an Initial Offer accepted by the Board or a Loop Europe Opportunity being pursued by the Corporation as approved by the Board, and in both cases: (i) one (1) year has passed since the date of the Board's first acceptation of such contemplated project and the Corporation is actively involved in the development of such project; or (ii) a minimum of [\*\*\*] have been actually invested, in aggregate, by the Parties (together or alone) in the development of the applicable Loop Europe Facility since the date of the Board's acceptation of such contemplated project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Potential Arrangement**" has the meaning specified in Section 2.3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Priority Rights Protocol**" means this Priority Rights protocol attached has <u>Exhibit</u> <u> </u> <u>13.1(a)</u> to the Securityholders' Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Product Trade Secrets**" has the meaning specified in Section 7.1(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**ProjectCo**" has the meaning specified in Section 2.4(e).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**ProjectCo Notice**" has the meaning specified in Section 2.4(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Pure Licensing Project**" has the meaning specified in 4.2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Release Conditions**" has the meaning specified in Section 5.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Shortfall Loan**" has the meaning specified in Section 3.1(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**Threshold**" has the meaning specified in Section 10.1(a)(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** **Interpretation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All capitalized terms not defined herein shall have the meanings ascribed to such term in the Securityholders' Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sections 1.3 to 1.11 of the Securityholders' Agreement shall apply *mutatis mutandis* to this Priority Rights Protocol.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** **Overview of the Priority Rights Protocol** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Priority Rights Protocol governs the terms and conditions, along with the Parties' rights and obligations, relating to Business opportunities within the Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation and Loop Industries shall inform the Board, on a regular basis, of the existence of development of any Loop Europe Opportunity, in accordance with Section 2.2. They shall present such Loop Europe Opportunity, once the underlying project has been substantiated and further developed, to the Board in the form of a Loop Europe Opportunity Offer, in accordance with Section 2.4. In the case of Loop Industries, before presenting a Loop Europe Opportunity Offer, it shall first present the Potential Arrangement to the Corporation in an Initial Offer, in accordance with Section 2.3, thus allowing the Board to review a project twice at different stages of development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The financing of an investment in a Loop Europe Facility is governed by Article 3 .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a Loop Europe Opportunity relates solely to licensing, or authorizing third parties to license or sublicense the Loop Technology, or part thereof, then Article 4 shall apply. Section 4.2 governs the Pure Licensing Projects and Section 4.3 governs the first Pure Licensing Project.

**Article 2** <br> **Priority Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1** **Priority Rights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In accordance with this Priority Rights Protocol, the Corporation shall be authorized to directly or indirectly through any Group Company, (i) seek Business opportunities in the Territory and (ii) act as Loop Industries' sales, marketing and promotional representative in the Territory, for the purpose of providing market research and intelligence, business development, promotion, solicitation of potential customers and end-users, advertisement, awareness and sales services related to the development, design, financing, construction, ownership and operation of Recycling Facilities throughout the Territory.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** **Loop Europe Opportunities** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to appropriate safeguards in respect of competitively sensitive information, the Corporation and Loop Industries shall (i) report on any design, development, financing, construction, sale, licensing or exploitation opportunities it manages to develop in the Territory; (ii) maintain records setting out the details of all potential projects, customers and interested Persons in the furtherance of information and licensing requests with respect to the Loop Technology in the Territory, including their name, address, phone number and email addresses, as well as records regarding the business operations of such potential customers and interested parties, and (iii) provide promptly a copy of such records to the Board, on a regular basis (the "**Loop Europe Opportunities** "). The Corporation and Loop Industries, as applicable, shall obtain all necessary consents from the above mentioned Persons and shall abide by all applicable privacy laws in connection with the collection of any information for purposes of maintaining such records with respect to the Loop Europe Opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of Loop Industries and the management of the Corporation shall be authorized to initiate discussions and negotiate in good faith with applicable third parties identified in a Loop Europe Opportunity with the objective to prepare and finalize a Loop Europe Opportunity Offer to be submitted to the Board in accordance with the Provisions of Section 2.4, being understood, for more certainty, that the Corporation may not be bound by any Loop Europe Opportunity Offer before duly approved by the Board in writing. Upon reasonable request of Loop Industries or the management of the Corporation, the other Entity shall assist the requesting Entity in its discussions and negotiations with applicable third parties. The Parties agree that all reasonable costs and out of pocket expenses associated with such collaboration shall be borne by the Corporation or by the Shareholders in accordance with their Proportionate Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3** **The Corporation** ' **s Initial Right of First Refusal** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, pursuant to a Loop Europe Opportunity, Loop Industries intends to develop, design, finance, construct, own or operate a Loop Europe Facility within the Territory (each, a "**Loop Europe Project** "), prior to (i) having a complete Loop Europe Opportunity Offer to present to the Board, in accordance with Section 2.4, and (ii) entering into, settling or agreeing to the material terms and conditions of, any potential joint venture, equity partnership or similar arrangement involving, in whole or in part, the establishment of a Loop Europe Project (each, a "**Potential Arrangement**") with any Person other than the Corporation, Loop industries shall provide written notice to the Corporation specifying such intent along with the material terms and conditions upon which Loop Industries proposes to proceed with the Potential Arrangement (the "**Initial Offer** ").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Until the earlier of (i) the Corporation's delivery of written notification to Loop Industries that it does not, at such time, intend to pursue the Initial Offer or (ii) the expiration of the forty (40) day period following the date on which the Corporation receives the Initial Offer (the "**Negotiation Period** "), the Corporation and Loop Industries shall in good faith discuss and negotiate the Initial Offer in an effort to mutually agree upon the terms and conditions of a Potential Arrangement. Until the conclusion of the Negotiation Period, Loop Industries shall not enter into any agreement with, any Person other than the Corporation with respect to a Potential Arrangement. If the Corporation and Loop Industries do not agree on the terms and conditions of a Potential Arrangement during the Negotiation Period, at any time following the expiration of the Negotiation Period, upon written notice to the Corporation, Loop Industries may engage in negotiations with a view to finalize the design of a Potential Arrangement and complete the project development stage of such Potential Arrangement, enter into any non-binding term sheet with any other Person (an "**Alternative Partner**") with respect to a Potential Arrangement (an "**Alternative Proposal** "), and subject to the Corporation's right of first refusal as set forth in Section 2.4 below, enter into the definitive agreements with respect to such Alternative Proposal. The Alternative Proposal shall be *bona fide*, shall be the result of arms-length negotiations, and shall set forth the proposed material terms and conditions of the Potential Arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary set forth in this Section 2.3, before Loop Industries agrees to enter into an Alternative Proposal with an Alternative Partner, Loop Industries must first deliver to the Board the proposed material terms and conditions of such Alternative Proposal at FID, in the form of a Loop Europe Opportunity Offer, and otherwise comply with the provisions of Section 2.4. For the avoidance of doubt, if the Corporation declines an Initial Offer or fails to agree to the terms and conditions of an Initial Offer during the Negotiation Period, the right of first refusal at FID set forth Section 2.4 shall not be invalidated or otherwise deemed to be waived by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4** **The Corporation** ' **s Right of First Refusal at FID** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At FID, Loop Industries or the management of the Corporation, as applicable (and subject to first complying with the provisions of Section 2.3 in the case of Loop industries), shall present to the Board a complete written offer relating to a Loop Europe Opportunity, providing at least the following details over the related Loop Europe Opportunity:

&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) Information to be provided at FID as set forth in Section 1.1(n), expected internal rate of return, equity and debt funding requirements, capital and development expenditures, shareholding structure and identity of target(s) and partner(s), and relevant jurisdictions; 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) any relevant element that a reasonable investor would expect so as to reach a fully informed decision on the Loop Europe Opportunity, being understood, for the avoidance of doubt, that (i) the below mentioned forty (40) Business Days delay shall commence upon receipt of all the requirements set out in Section 2.4(a)(i), (ii) Loop Industries and/or the management of the Corporation, as applicable, shall use good faith Commercially Reasonable Efforts to answer the Board's reasonable requests made pursuant to this Section 2.4(a)(ii), and (iii) this Section 2.4(a)(ii) shall not require Loop Industries and/or the management of the Corporation, as applicable, to commission studies, reports or analyses in addition to such work that has been already undertaken by Loop Industries and/or the management of the Corporation, as applicable,

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(a "**Loop Europe Opportunity Offer**").

Upon receipt by the Board of a Loop Europe opportunity Offer, the Board will have forty (40) Business Days to accept it, subject to any reasonable amendment of such Loop Europe Opportunity Offer that the Board may request to Loop Industries and/or the management of the Corporation, as applicable, the consent of which shall not be unreasonably withheld. In that respect, the Shareholders undertake to cause their nominee Directors to meet and discuss in good faith such Loop Europe Opportunity Offer, as the case may be within the Board, during the above-mentioned forty (40) Business Days period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Board expressly declines in writing the Loop Europe Opportunity Offer or fails to answer positively within the above-mentioned forty (40) Business Days period (a "**Carved-Out Project** "), the Board shall notify in writing Loop Industries of such decision and Loop Industries shall then be entitled, in its sole discretion, to take all such actions as it deem necessary to conclude arrangements for licensing and access to the Loop Technology with the relevant interested third parties, including the Alternative Partner, as applicable, identified in such Carved-Out Project, but only in respect of the same project and on terms substantially similar to the ones of the Carved-Out Project at stake, without any duties to account or compensate the Corporation or sharing of any consideration received in respect thereto. For the avoidance of doubt, (i) the possibility for Loop Industries to take direct actions in respect of such Carved-Out Project will not prevent the Corporation to consider other Loop Europe Opportunities with the same third parties for other projects, and (ii) Loop Industries may elect to realize a Carved-Out Project with any partners of its choosing. For further avoidance of doubt, a Carved-Out Project shall also include any declined or unanswered Alternative Proposal in accordance with this Section 2.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Board expressly accepts in writing the entire Loop Europe Opportunity Offer, as reasonably amended at the Board's request, if applicable, then the Loop Europe Opportunity Offer at stake shall be carried out through the Corporation and financed in accordance with the provisions of Article 3 . The Board shall promptly provide notice of its acceptance of a Loop Europe Opportunity Offer to the Shareholders. Subject to the provisions of Section 2.4(d), Loop Industries and the Corporation (and/or any Subsidiaries, if relevant) shall then (and before entering into any other relevant arrangement, including with third parties, in relation to such Recycling Facility) negotiate and enter into a licensing and services agreement with all relevant parties involved in the development, design, financing, construction, ownership and/or operation of the applicable Loop Europe Facility for access and use of the Loop Technology to be negotiated in good faith on a case-by-case basis between the relevant parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the case of the first (1<sup>st</sup>) Loop Europe Opportunity Offer accepted by the Board in accordance with the provisions of Section 2.4(c), if the Corporation still has the right to grant one (1) sublicense under the Loop Technology in accordance with the provisions of the License Agreement, then the access and use of the Loop Technology shall be obtained by the relevant third party through a sublicence agreement to be entered into by the Corporation and the applicable third party, the whole in accordance with the terms and provisions of the License Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon receipt by Loop Industries of the Board's written acceptance of a Loop Europe Opportunity Offer in accordance with Section 2.4(c), Loop Industries will have forty (40) Business Days to notify the Board of its intention to acquire up to a maximum of fifty percent (50%) of the equity stake in the Entity that will own and/or operate the applicable Loop Europe Facility (a "**ProjectCo** "), which equity stake would otherwise be held by the Corporation. Any notice provided by Loop Industries in accordance with the provisions of this Section 2.4(e) (a "**ProjectCo Notice**") shall be accompanied by a firm commitment by Loop Industries to provide the funding required to acquire the applicable equity stake in a ProjectCo at the time set forth in the applicable Loop Europe Opportunity Offer. Upon receipt by the Board of a ProjectCo Notice, the Corporation and Loop Industries shall negotiate in good faith, together and with applicable third parties, to agree on the terms and conditions governing the acquisition of the applicable equity stake of a ProjectCo by Loop Industries, including, for the avoidance of doubt, any remedies in favour of the other Parties thereto in case of default by Loop Industries to abide by the applicable terms and conditions. If Loop Industries fails to provide a ProjectCo Notice within the forty (40) Business Days period set forth above, then Loop Industries shall be deemed to have forfeited its right to acquire an equity stake in the applicable ProjectCo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Upon request and reasonable prior written notice, the Corporation shall be granted access to Loop Industries' facilities at no cost for the Corporation and provided with the assistance of Loop Industries' employees, directors, officers and advisors, notably in Canada, for any reasonably required purposes in connection, directly or indirectly, with the pursuit of Loop Europe Opportunities. The Corporation shall reimburse reasonable costs and out of pocket expenses incurred by Loop Industries in compliance with this Section 2.4(f), being understood that such costs may include hourly rates of employees, directors, officers and advisors, as well as the costs associated with the use of Loop Industries' equipment or inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each Loop Europe Facility developed, designed, financed, constructed, owned and/or operated by a Group Company within the Territory shall be granted by Loop Industries an Evergreen License. In addition, each such Evergreen License shall contain specific provisions to the effect that Loop Industries shall provide reasonable training services to the personnel of each ProjectCo with respect to the Loop Technology for a reasonable cost and subject to reasonable conditions, to be agreed upon on a case-by-case basis in good faith.

**Article 3** <br> **Capital Calls**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **Capital Calls** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As a condition precedent to the Board approving the conversion of a Loop Europe Opportunity into an investment in a Loop Europe Facility, the Securityholders, acting reasonably, shall reach an agreement as to the financing of such investment, which should, except as agreed otherwise in writing by the Securityholders, include a commitment by each Securityholder to provide its Proportionate Interest of the agreed upon funding required in the context of such investment (a "**Capital Contribution** ").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that Loop Industries and Reed Investco cannot reach an agreement as to the financing of such investment in a Loop Europe Facility within the forty (40) Business Days period set forth in Section 2.4(b), the applicable Loop Europe Opportunity shall be deemed to become a Carved-Out Project that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) may be undertaken by Reed Investco, outside of the Corporation, in accordance with the provisions of Section 2.4(b) applied *mutatis mutandis,* if Reed Investco undertakes to finance the entirety of the contemplated investment in the contemplated Loop Europe Facility; 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) may be undertaken by Loop Industries in accordance with the provisions of Section 2.4(b) in any other case.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of a Carved-Out Project undertaken by Reed Investco in accordance with the provisions of Section 3.1(b)(i), Loop Industries agrees to negotiate in good faith with Reed Investco the terms and conditions for licensing and access to the Loop Technology as required for the relevant Loop Europe Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All capital call notices requesting the Securityholders to provide their respective Capital Contributions approved in accordance with the provisions of Section 3.1(a) (each a "**Capital Call Notice**") shall be issued at least thirty (30) Business Days (unless otherwise agreed in writing by the Securityholders) prior to the date on which the applicable Capital Contributions are expected or required to be utilized by the Corporation, which date shall be stated in the Capital Call Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On each applicable payment date set forth in the Capital Call Notice, the first of which, for the avoidance of doubt, may not be earlier than fifteen (15) Business Days from the receipt of the Capital Call Notice unless otherwise agreed in writing by the Securityholders, each applicable Securityholder shall remit by wire transfer to the designated bank account of the Corporation (details of which shall be set out in the Capital Call Notice) an amount equal to its respective portion of the Capital Contribution as set forth in the Capital Call Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If either Securityholder fails to comply with its obligation to invest its respective portion of the Capital Contribution, approved in accordance with the provisions of Section 3.1(a), in the manner contemplated in this Agreement ()"**Capital Contribution Default** "), then:

&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) such Securityholder shall be deemed the "**Defaulting Party** ";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the other Securityholder shall be deemed the "**Non-Defaulting Party** "; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the portion of the Defaulting Party's Capital Contribution amount not funded shall be referred to as the "**Contribution Shortfall Amount** ".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that the Defaulting Party fails to invest the Contribution Shortfall Amount, the Non-Defaulting Party shall have the right (but not an obligation) to procure funding of the Contribution Shortfall Amount to the Corporation in stead and place of the Defaulting Party, either by itself or through an Affiliate, by way of a loan to the Defaulting Party bearing interests of [\*\*\*] per annum (the "**Shortfall Loan**") up to an amount that does not exceed the Contribution Shortfall Amount, by giving notice of its intention to do so within fifteen (15) Business Days after of the occurrence of the applicable Capital Contribution Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) At any time during a period of one (1) year commencing on the date of the disbursement the Shortfall Loan (the "**Capital Contribution Default Cure Period** "), the Defaulting Party shall repay the Shortfall Loan in full, including any accrued and unpaid interest thereon, at which time it will cease to be a Defaulting Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon expiration of the Capital Contribution Default Cure Period, if the Defaulting Party failed to repay the Shortfall Loan in full, including any accrued and unpaid interest thereon, in accordance with Section 3.1(g), the Parties agree that as between the Defaulting Party and the Non-Defaulting Party, the income, revenue, or profit generated by the applicable converted Loop Europe Opportunity shall accrue in favour of them based on the actual proportion of the Capital Contribution funded by each of them, taking into account any unpaid portion of the Shortfall Loan and accrued and unpaid interest thereon.

*For illustration purposes only, if (i) the aggregate amount of the agreed upon Capital Contribution in respect of a given investment in a Loop Europe Opportunity is equal to* €*100,000,000 to be paid at 90% by Reed Investco and 10% Loop Industries (i.e.,* €*90,000,000 and* €*10,000,000 respectively), (ii) such aggregate amount is to be paid in two equal tranches by each of Reed Investco and Loop Industries, (iii) each of Reed Investco and Loop Industries have paid the full amount of their respective first tranche, (iv) Loop Industries breaches its commitment to provide the full amount of its second tranche (i.e.,* €*5,000,000), (v) the Non-Defaulting Party (i.e., Reed Investco) advances the Contribution Shortfall Amount to the Corporation in stead and place of the Defaulting Party (i.e., Loop Industries), and (vi) the Defaulting Party does not reimburse the Shortfall Loan (along with any and all accrued interest thereon) to the Non-Defaulting Party within the Capital Contribution Default Cure Period;* ***<u>then</u>****, the Non-Defaulting Party shall be entitled to a proportion of the income, revenue or profit generated by the applicable converted Loop Europe Opportunity calculated with the following formula:*

![graphic1.jpg](graphic1.jpg)

*Where* 

*A = Proportion of the income, revenue or profit generated by the applicable converted Loop Europe Opportunity, which the Non-Defaulting Party shall be entitled to pursuant to Section 13.2.* 

*B = The Non-Defaulting Party*'*s respective portion of the Capital Contribution.*

*C = The aggregate amount of the agreed upon Capital Contribution in respect of a given investment in a Loop Europe Opportunity.* 

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*i = The unpaid portion of accrued interest on the Shortfall Loan.*

*L = The unpaid portion of the principal amount of the Shortfall Loan.*

*For the purposes of the illustration above, the aforementioned formula would equal to the following:*

[\*\*\*] *.* 

**Article 4** <br> **Licensing Offer**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Loop Industries** ' **Collaboration Covenant** 

In accordance with the spirit of this Priority Rights Protocol, in the event that a third party enters in contact with Loop industries, or vice-versa, with the intention of discussing or negotiating a Loop Europe Opportunity relating solely to licensing, or authorizing third parties to license or sublicense the Loop Technology, or part thereof, within the Territory, then Loop Industries must introduce such third party, with prior consent of the third party, to the Corporation with the objective of giving the Corporation the opportunity to participate, in any way the Corporation deems appropriate, acting reasonably, in the discussions relating to such Loop Europe Opportunity with the third party or in the project that could potentially result therefrom. Upon request and reasonable prior written notice from the Corporation, Loop Industries must assist the Corporation in its discussions with any reasonably required purposes in connection, directly or indirectly, with the pursuit of such opportunity. The Parties agree that all reasonable costs and out of pocket expenses associated with such collaboration shall be borne by the Corporation or by the Shareholders in accordance with their Proportionate Interest. For the avoidance of doubt, Loop Industries will not be in breach of its obligations under this Section 4.1 if the applicable third party (a) does not consent to be introduced to the Corporation; (b) does not consent to pursue any discussions relating to such opportunity; or (c) ceases any discussions with the Corporation after having initiated same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **Pure Licensing Projects and Royalty Sharing Opportunities** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Article 2 , and despite the efforts deployed by Loop Industries in accordance with the provisions of Section 4.1 above, if at any time prior to FID with respect to a Loop Europe Opportunity, the applicable stakeholders, including any Alternative Partner, in their sole discretion, indicate in writing to the Corporation or to Loop Industries, that;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Loop Industries' contribution to the project relating to such Loop Europe Opportunity would be limited solely to licensing, or authorizing third parties to license or sublicense the Loop Technology, or part thereof, to the operator or owner of the contemplated Recycling Facility (an "**Authorized Licensee** "); 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) they do not wish, or do not require, any of the Corporation or Loop Industries to hold directly or indirectly an interest (as securityholder, lender or otherwise) in the Authorized Licensee, in any Entity having Control of the Authorized Licensee, or in any other Entity having an interest in such project,

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then the Parties agree that Loop Industries may negotiate and enter into, or cause Authorized Third Parties to enter into, definitive license or sublicense agreement with the applicable Authorized Licensee, subject to the provisions of Section 4.2(b) (a "**Pure Licensing Project**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Loop Industries wishes to enter into, or cause any Authorized Third Party to enter into, a definitive license agreement with an Authorized Licensee with respect to a Pure Licensing Project, other than the first Pure Licensing Project which shall be subject to the provisions set forth in Section 4.3, then the Parties will enter into binding arrangements to ensure that the Corporation receives [\*\*\*] of all royalties payments relating to such Pure Licensing Project, where such royalties would otherwise have been received by Loop Industries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Licensing Offer Relating to the First Pure Licensing Project** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding the provisions of Article 2 or Section 4.1, if prior to the receipt by Loop Industries of the Board's first written acceptance of a Loop Europe Opportunity Offer in accordance with Section 2.4(c), Loop Industries wishes to enter into a definitive license agreement with an Authorized Licensee with respect to the first Pure Licensing Project developed by Loop Industries in the Territory, then Loop Industries shall (i) inform the Authorized Licensee of the provisions of this Section 4.3; (ii) fully negotiate and settle the main terms of the license agreement with the Authorized Licensee; and (iii) provide a written notice to the Board presenting the agreed upon terms of the applicable Pure Licensing Project (the "**Licensing Offer** "). The provisions of Section 2.4(a) shall apply *mutatis mutandis* to such first Pure Licensing Project *.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Authorized Licensee refuses to enter into a sublicence agreement with the Corporation, despite the efforts deployed by Loop Industries in accordance with the provisions of Section 4.3(a), then (i) Loop Industries shall instruct the Authorized Licensee, pursuant to a payment instruction (*delegation de paiement*), to pay to the Corporation the royalties payments relating to such Pure Licensing Project up to the amount that the Corporation would otherwise be entitled as sublicensor under the License Agreement and (ii) Loop Industries and the Corporation shall enter into binding arrangements as required to fully give effect to the foregoing. The Parties agree that the License Agreement would automatically terminate upon compliance with the provisions of this Section 4.3(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Board expressly accepts in writing the entire Licensing Offer and the terms of the Pure Licensing Project as negotiated by Loop Industries in its sole discretion, then Loop Industries shall use Commercially Reasonable Efforts to cause the Authorized Licensee to enter into a sublicence agreement with the Corporation, containing terms substantially similar to the agreed upon terms of such Pure Licensing Project, the whole in accordance with the provisions of the License Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Board expressly declines in writing the Licensing Offer or fails to answer positively within the forty (40) Business Days period following the delivery of the Licensing Offer, then Loop Industries shall be entitled to, directly or indirectly, take all such actions as it deem necessary to conclude the license agreement, or a sublicense agreement through an Authorized Third Party, with the relevant Authorized Licensee identified in the Licensing Offer, but only on terms substantially similar to the ones set forth in the Licensing Offer, and the provisions of Section 4.2(b) shall apply to such Pure Licensing Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the first Pure Licensing Project is abandoned, terminated or otherwise not completed by the applicable parties before a definitive license or sublicense agreement in entered into with the Authorized Licensee, then Loop Industries shall comply with the provisions of this Section 4.3 for the next Pure Licensing Project. Subject to the foregoing sentence, the Parties agree that the right of first refusal granted by Loop Industries to the Corporation with respect to the first Pure Licensing Project developed by Loop Industries in the Territory under this Section 4.3, shall cease and be of no further force and effect upon the earlier 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) the receipt by Loop Industries of the Board's first written acceptance of a Loop Europe Opportunity Offer in accordance with Section 2.4(c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the execution of a definitive sublicence agreement between the Corporation and an Authorized Licensee, as set forth above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the receipt by Loop Industries of the Board's written refusal of the Licensing Offer; 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) the expiration of a forty (40) Business Days period following the Licensing Offer if the Board fails to answer positively to the Licensing Offer within such period; 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) the execution of a payment instruction (*delegation de paiement*) and, if applicable, of related binding arrangements between the Corporation and Loop Industries, in accordance with the provisions of Section 4.3(b).

**Article 5** <br> **Loop Technology Escrow Agreement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **Escrowed Assets and Release Conditions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Within ninety (90) days of the execution of this Agreement, Loop Industries shall deposit a copy of information, data and materials related to its technical process and documentation, including patent details and lists of solvents, which are specifically required and necessary for the enablement of the license grant to the Loop Technology provided in the License Agreement or the Conditional License Agreement (which for greater certainty, shall be limited to information that would be otherwise provided to the Corporation or any authorized licensee or sublicensee of the Loop Technology (the "**Escrowed Assets**") with its third-party escrow holder of its choosing, which may include its legal advisor. Loop Industries shall update the Escrowed Assets with any new updates or requirements over time, as would be generally provided to any licensee of the Loop Technology. The annual escrow fees shall be borne entirely by Loop Industries. The escrow agreement for the Escrowed Assets shall name the Corporation as beneficiary and at a minimum shall provide for the release of the Escrowed Assets to the Corporation upon the occurrence of any of the following release conditions ()"**Release 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;(i) Any dissolution or liquidation proceeding is commenced by or against Loop Industries, and if such case or proceeding is not commenced by Loop Industries, it is not dismissed within sixty (60) days from the filing thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any proceedings are commenced or taken for the dissolution, liquidation or winding up of Loop Industries; or if a trustee, custodian or other person with similar powers is appointed in respect of Loop Industries or in respect of all or a substantial portion of its property or assets; or if Loop Industries ceases to carry on all or substantially all of its business; or if any proceedings involving Loop Industries involving its bankruptcy or insolvency are taken under any legislation dealing with insolvency are taken under any legislation dealing with creditor's rights; or Loop Industries makes any assignment or proposal in bankruptcy or any other assignment or proposal for the benefit of creditors; 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) any major breach (*faute lourde ou dolosive*) of the License Agreement or the Conditional License Agreement by Loop which remains uncured after reasonable prior notice from the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Loop Industries shall have a thirty (30) days cure period to rectify any of the foregoing Release Conditions after the receipt of a written notice from the Corporation.

**Article 6** <br> **Term and Termination of the Priority Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1** **Term and Termination of the Priority Rights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to termination as provided in this Section 6.1, this Priority Rights Protocol will commence upon the date hereof and will remain in effect until the earlier 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) the termination of the Securityholders' 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;(ii) the date on which Loop Industries ceases to be a Shareholder of the Corporation for any reason whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Loop Industries may, at its sole option, immediately terminate the Priority Rights Protocol at any time upon 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) The Corporation materially breaches or violates any of the provisions, warranties, representations, agreements, covenants or conditions set forth in this Agreement, which breach or violation is not remedied within sixty (60) Business Days after receipt of written notice from Loop Industries;

&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 Corporation makes an assignment for the benefit of its creditors, commits any act of bankruptcy, has a receiver appointed, or otherwise admits to its inability to pay its material debts as they mature; 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) The Corporation initiates any sale or disposition of any of its property for the purpose of, or leading to, its liquidation, dissolution or winding-up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The termination of this Priority Rights Protocol will not relieve the Parties of any obligation or liability accrued prior to termination or rescind or give rise to any right to rescind anything done by either Party prior to such termination. The termination of this Priority Rights Protocol will not in any way affect obligations that are expressly stated herein to be continuing or are by their nature continuing post-termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt and notwithstanding anything to the contrary in this Agreement or in any licensing, sublicensing and services agreement that may have been entered into with respect to a Loop Europe Facility, the termination of this Priority Rights Protocol (for any reason whatsoever) shall have no effect on the continuation of any licensing, sublicensing and services agreement that may have been entered into with respect to a Loop Europe Facility and the Corporation and/or any of its Subsidiaries, as applicable, shall retain the rights to develop, design, finance, construct, own and operate all Loop Europe Facilities that have been the subject matter of licensing, sublicensing and services agreements already executed as of the date of such termination of the Priority Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon the effective date of termination of this Priority Rights Protocol, the Corporation will immediately cease and desist the use of the Loop Industries Marks, the marketing, promotion or solicitation of orders for the Loop Technology (except as specifically permitted herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Upon expiration or termination of this Priority Rights Protocol as provided in this Section 6.1, should the Corporation fail to immediately cease and desist the use of the Loop Industries Marks as provided herein, the Corporation agrees and hereby specifically consents to Loop Industries obtaining a decree of a court having suitable jurisdiction ordering the Corporation to stop the use of the Loop Industries Marks. Said consent is based on the recognition by the Corporation that a monetary payment would be an inadequate remedy for Loop Industries. The Parties understand and agree that, in addition to the injunctive relief mentioned above, Loop Industries shall be entitled to any other relief, which may be deemed proper and customary, whether at Law or equity, as of the time such relief is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **Termination of the Conditional License Agreement** 

Upon expiration or termination of this Priority Rights Protocol as provided in Section 6.1, if the suspensive condition set out in Section 2.1 of the Conditional License Agreement has not yet been satisfied, then the Conditional License Agreement shall automatically be deemed to be null and void.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Effect of the Termination of the Priority Rights Protocol on ongoing Projects** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon expiration or termination of this Priority Rights Protocol as provided in Section 6.1(a), in connection with any Ongoing Project as of the date of termination:

&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 material terms and conditions of a definitive license agreement relating to such Ongoing Project have been agreed upon by the applicable parties thereto as of the date of termination, the applicable Parties hereby undertake to take all necessary steps, actions and corporate proceedings to permit the execution, delivery and performance of such definitive license agreement, subject to any material changes of the terms and conditions of such Ongoing Project; 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) if the material terms and conditions of a definitive license agreement relating to such Ongoing Project have not been agreed upon by the applicable parties thereto as of the date of termination, the applicable Parties hereby undertake to negotiate in good faith in an effort to mutually agree upon the terms and conditions of the applicable license agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the avoidance of doubt, the foregoing undertakings shall only apply to Ongoing Projects as of the termination date of the Priority Rights Protocol in the event of a termination in accordance with Section 6.1(a). Any other expiration or termination event of the Priority Rights Protocol, including in accordance with Section 6.1(b), shall not trigger the foregoing undertakings. For further avoidance of doubt, the foregoing undertakings shall not apply to any contemplated project that does not meet the requirements of an Ongoing Project as of the date of termination of the Priority Rights Protocol.

**Article 7** <br> **Intellectual Property Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1** **Intellectual Property Rights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As between Loop Industries, the Corporation and Reed Investco, the Corporation and Reed Investco hereby acknowledge Loop Industries' exclusive right, title and interest in and to all present and future names, service marks, trademarks, copyrights, labels, insignias, slogans, symbols, designs and other characteristics used by Loop Industries on and in connection with the Loop Technology or any embodiment thereof further described in <u>Exhibit 7.1(a)</u> of the Securityholders Agreement (the "**Loop Industries Marks** "). As between the Parties, Loop Industries Marks will remain the sole property of Loop Industries at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation shall have a limited license to (i) use, copy, display and distribute available Promotional Materials to prospective users and interested parties solely for the purposes of promoting or marketing the Loop Technology and to (ii) use Loop Industries' Marks solely with respect to the operation of the Business, including its promotion of the Loop Technology. The Corporation further agrees that it shall adhere to the then current Loop Industries design standards manual in its use of the Loop Industries Marks. In all print and electronic materials making use of Loop Industries' Marks, the Corporation shall designate and acknowledge Loop Industries' ownership of the Loop Industries Marks and the Loop Technology. In no event shall the Corporation (i) incorporate any of Loop Industries' Marks into its trade or business name, subject to previous written consent from Loop Industries; (ii) register any mark, logo or graphic confusingly similar to any of Loop Industries' Marks; or (iii) contest Loop Industries' right, title or interest in or to Loop Industries' Marks, or any of them.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Corporation and Reed Investco hereby acknowledge Loop Industries' exclusive right, title and interest in and to all aspects of the Loop Technology data, information, materials, know-how and other product-related trade secrets (the "**Product Trade Secrets** "). As between the Parties, Product Trade Secrets will remain the sole property of Loop Industries at all times. The Corporation will not use the Product Trade Secrets other than for the benefit of Loop Industries as contemplated by this Exhibit 13.1(a). The Corporation will not disclose the Product Trade Secrets to any third party without Loop Industries' prior written consent.

**Article 8** <br> **Corporate Opportunities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Corporate Opportunities** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any priority rights set forth in this Priority Rights Protocol, provided that Reed Investco (i) has fulfilled its funding obligations pursuant to Section 5.1 of the Securityholders' Agreement; and (ii) for as long as Reed Investco (or any Affiliate thereof) remains a Securityholder, it shall be granted a priority right on any future investment opportunities contemplated by Loop Industries in the Territory and pertaining to the recycling of PET business (a "**Corporate Opportunity** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon receipt from Loop Industries of a written Corporate Opportunity offer providing at least the following details over the related Corporate Opportunity:

&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) expected internal rate of return, equity and debt fundings, capital and development expenditure, shareholding structure and identity of target(s) and partner(s), and relevant jurisdictions; 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) any relevant element that a reasonable investor would expect so as to reach a fully informed decision on the Corporate Opportunity, being understood, for the avoidance of doubt, that (i) the below mentioned forty (40) Business Days delay shall commence upon receipt of all the requirements set out in Section 8.1(b)(i), (ii) Loop Industries shall use good faith Commercially Reasonable Efforts to answer Reed Investco's reasonable requests under this Section 8.1(b)(ii), and (iii) this Section 8.1(b)(ii) shall not require Loop Industries to commission studies, reports or analyses in addition to such work that has been already undertaken by Loop Industries,

(a "**Corporate Opportunity Offer**"),

Reed Investco will have forty (40) Business Days to accept the Corporate Opportunity Offer, subject to any reasonable amendment of such Corporate Opportunity Offer that Reed Investco may request to Loop Industries the consent of which shall not be unreasonably withheld. In that respect, Reed Investco and Loop Industries undertake to meet and discuss in good faith such Corporate Opportunity Offer, as the case may be within the Board, during the above-mentioned forty (40) Business Days period.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Reed Investco expressly declines in writing the Corporate Opportunity Offer or fails to answer positively within the foregoing period, Loop Industries shall be authorized to carry the Corporate Opportunity alone or with any other third party on terms substantially similar to those offered to Reed Investco in the Corporate Opportunity Offer (a "**Carved-Out Investment** "). Reed Investco specifically acknowledges that the carrying of any Carved-Out Investment in the Territory by Loop Industries, any Affiliate thereof or through the assistance of third-parties in accordance with the terms of this Section 8.1(b) shall not constitute a breach of any Loop Industries covenants set forth in this Priority Rights Protocol.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Reed Investco accepts the entire Corporate Opportunity Offer, as reasonably amended at the request of Reed Investco if applicable, then the Corporate Opportunity at stake shall be carried out through the Corporation or as otherwise agreed to by Loop Industries and Reed Investco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All Parties hereby agree that if Reed Investco does not comply with all conditions set forth in Section 8.1(a), Reed Investco shall not have any priority right on Corporate Opportunities and Loop Industries shall be authorized to carry any Corporate Opportunity alone or with any other third party and the carrying of each such Corporate Opportunity shall not constitute a breach of any Loop Industries covenants set forth in this Exhibit 13.1(a).

**Article 9** <br> **Breach of Priority Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Breach of Priority Rights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event the Corporation considers that Loop Industries breached its obligation set out in Article 2 or Article 4 of this Priority Rights Protocol, the Corporation shall send to Loop Industries a written notice giving reasonable details of such breach (along with supportive evidence and documentation). Loop Industries shall then have a period of thirty (30) days, or such longer period as approved by the Corporation, to cure any alleged breach after the receipt of a written notice from the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the alleged breach as not been cured by Loop Industries within the foregoing period, the Corporation shall send to Loop Industries a written notice giving reasonable details of such fact. Upon receipt of this written notice by Loop Industries, the Parties shall have ten (10) Business Days to mutually agree on a qualified business expert (the "**Expert**") who shall be appointed to determine whether or not Loop Industries breached its obligation set out in Article 2 or Article 4 of this Priority Rights Protocol. Failing such agreement within such period of ten (10) Business Days, each Party shall have the right to (i) refer the alleged breach to a court of competent jurisdiction pursuant to Section 1.11 of the Securityholders' Agreement or (ii) request the appointment of such Expert by the President of the commercial court of Paris (*Tribunal de commerce de Paris*) according to the accelerated procedure (*proc* é *dure acc* é *l* é *r* é *e au fond*).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Expert shall base his decision exclusively on the materials and arguments presented by the Parties and their respective advisors and shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) give the Parties a reasonable opportunity to make written and oral representations to him and comply with the adversarial principle (*principe du contradictoire*);

&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) require that the Parties supply each other with a copy of any written representations at the same time as they are made to the Expert;

&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) permit each Party to be present while oral submissions are being made by any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The final determination of the Expert shall be final and binding on the Parties hereto and may not be disputed by any of them in any forum absent manifest error (*erreur manifeste*). The Expert shall act as an expert and not as an arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event the Expert or a court of competent jurisdiction, appointed in accordance with the provisions of Section 9.1(a) issues a final and, in case of a competent court only, non-appealable decision that determines that Loop Industries breached its obligations set out in Article 2 or Article 4 of this Priority Rights Protocol, and such breach caused direct damages to the Corporation, irrespective of any determination of the amount of such damages, then the Corporation shall have the following options, at the Corporation's sole discretion, and shall communicate its choice to Loop Industries in writing within forty (40) Business Days of reception of the abovementioned decision or judgement:

&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) Activate the license grant under the Conditional License Agreement, being understood, for the avoidance of doubt, that the suspensive condition set out in Section 2.1 of the Conditional License Agreement would be fulfilled and all of the provisions of the Conditional License Agreement would then become effective; 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) Request the transfer to the Corporation, by way of a direction of payment (*delegation de paiement*), of any and all royalty fees that would otherwise have been received by Loop Industries from the project developed in such breach of the Priority Rights Protocol as determined in accordance with Section 9.1(a). For the avoidance of doubt, if the Corporation Industries elects the option set out in this Section 9.1(e)(ii), the Conditional License Agreement shall automatically be deemed to be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Corporation fails to communicate its choice to Loop Industries in accordance with Section 9.1(a), then the Corporation shall be deemed to have elected the option set out in Section 9.1(e)(i) as of the date of expiration of the delay provided in Section 9.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **Exclusive Remedies** 

The rights and remedies that Reed Investco or the Corporation may have against Loop Industries for a breach of any of its covenant or obligation set out in Article 2 or Article 4 of this Priority Rights Protocol are exclusively governed by this Article 9 . To the extent permitted by applicable Law, any further claims and remedies (other than claims for specific performance, injunctive relief or other equitable remedy which do not include claims for monetary damages), irrespective of the nature, amount or legal basis, are hereby expressly waived and excluded. The Parties hereby agree that the remedies set out in this Section 9.1(a) shall be sufficient repair of any such breach.

------

**Article 10** <br> **Foreign Sales**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1** **Limitations on Foreign Sales** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Loop Industries shall not be, directly or indirectly, in breach of its obligations under this Priority Rights Protocol in the event that it, directly or indirectly, offers for sale, sells, imports or distributes Licensed Products in the Territory, or licenses any third party to do so, (in each case, a "**Foreign Sale**") 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;(i) [\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*\*\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the aggregated sales capacity of the Recycling Facilities within the Territory falls under [\*\*\*], the Corporation shall provide a [\*\*\*] written notice informing Loop Industries of such event. After the expiration of the foregoing [\*\*\*]' notice period, Loop Industries will no longer be authorized to accept or execute new contracts providing for Foreign Sales until [\*\*\*], unless otherwise agreed upon between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, the Parties agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) existing Foreign Sales as of the expiration of the foregoing [\*\*\*]' notice period shall be grandfathered and, as such, the provisions of Section 10.1(b) shall not (A) affect any existing contractual relationship providing directly or indirectly for Foreign Sales to which Loop Industries, or any Affiliate thereof, is a party; (B) require Loop Industries or any Affiliate thereof to terminate, reduce or modify any existing contract providing directly or indirectly for Foreign Sales; or (C) preclude Loop Industries, or any Affiliate thereof to renew or amend any existing contract providing directly or indirectly for Foreign Sales; 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) the limitations on Foreign Sales set forth in this Section 10.1 shall only apply to Loop Industries and its Affiliate.

**Article 11** <br> **Minimum Business Opportunities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1** **Minimum Business Opportunities** 

Loop Industries must present at least [\*\*\*] Loop Europe Opportunities to the Board within a period of [\*\*\*] years starting as of the date hereof, being understood that all reasonable costs and out of pocket expenses associated with such covenant shall be borne by the Corporation or by the Shareholders in accordance with their Proportionate Interest in accordance with the provisions of Section 2.2(b) of this Priority Rights Protocol.

\*\*\*\*\*

------

**<u>EXHIBIT 16.9</u>**

**LOOP EUROPE: KEY COMMERCIAL TERMS**

## Exhibit 31.1

**EXHIBIT 31.1**

**SECTION 302 CERTIFICATION** 

I, Daniel Solomita, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Loop Industries, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant ' s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: January 14, 2026 | */s/ Daniel Solomita* |
|  | Daniel Solomita |
|  | President and Chief Executive Officer<br> (principal executive officer) |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**SECTION 302 CERTIFICATION** 

I, Mike De Notaris, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Loop Industries, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: January 14, 2026 | */s/ Mike De Notaris* |
|  | Mike De Notaris |
|  | Interim Chief Financial Officer<br> (principal financial officer and principal accounting officer) |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**SECTION 906 CERTIFICATION**

In connection with the accompanying Quarterly Report on Form 10-Q of Loop Industries, Inc. for the quarter ended November 30, 2025, the undersigned, Daniel Solomita, President and Chief Executive Officer of Loop Industries, Inc., does hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such Quarterly Report on Form 10-Q for the quarter ended November 30, 2025 , fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in such Quarterly Report on Form 10-Q for the quarter ended November 30, 2025 , fairly presents, in all material respects, the financial condition and results of operations of Loop Industries, Inc.

---

| | |
|:---|:---|
| Date: January 14, 2026 | */s/ Daniel Solomita* |
|  | Daniel Solomita |
|  | President and Chief Executive Officer<br> (principal executive officer) |

---

## Exhibit 32.2

**EXHIBIT 32.2**

**SECTION 906 CERTIFICATION** 

In connection with the accompanying Quarterly Report on Form 10-Q of Loop Industries, Inc. for the quarter ended November 30, 2025, the undersigned, Mike De Notaris, Interim Chief Financial Officer of Loop Industries, Inc., does hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such Quarterly Report on Form 10-Q for the quarter ended November 30, 2025 , fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information contained in such Quarterly Report on Form 10-Q for the quarter ended November 30, 2025 , fairly presents, in all material respects, the financial condition and results of operations of Loop Industries, Inc.

---

| | |
|:---|:---|
| Date: January 14, 2026 | */s/ Mike De Notaris* |
|  | Mike De Notaris |
|  | Interim Chief Financial Officer |
|  | (principal financial officer and principal accounting officer) |

---