# EDGAR Filing Document

**Accession Number:** 0002049860
**File Stem:** 0001477932-25-009149
**Filing Date:** 2025-12
**Character Count:** 729392
**Document Hash:** 291d8c73e3f0a8fe62e53ece0b7e05e1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-25-009149.hdr.sgml**: 20251222

**ACCESSION NUMBER**: 0001477932-25-009149

**CONFORMED SUBMISSION TYPE**: 10-12B/A

**PUBLIC DOCUMENT COUNT**: 119

**FILED AS OF DATE**: 20251222

**DATE AS OF CHANGE**: 20251222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Electrified Materials Corp / IN
- **CENTRAL INDEX KEY:** 0002049860
- **STANDARD INDUSTRIAL CLASSIFICATION:** REFUSE SYSTEMS [4953]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 851848141
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-12B/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42455
- **FILM NUMBER:** 251592874

**BUSINESS ADDRESS:**
- **STREET 1:** 12115 VISIONARY WAY
- **CITY:** FISHERS
- **STATE:** IN
- **ZIP:** 46038
- **BUSINESS PHONE:** 3173185737

**MAIL ADDRESS:**
- **STREET 1:** 12115 VISIONARY WAY
- **CITY:** FISHERS
- **STATE:** IN
- **ZIP:** 46038

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10**

Amendment No. 5

**GENERAL FORM FOR REGISTRATION OF SECURITIES PURSUANT TO SECTION 12(b) OR 12(g)**

**OF THE SECURITIES EXCHANGE ACT OF 1934**

![](ems_1012baimg4.jpg)

---

| |
|:---|
| **Electrified Materials Corporation** |
| **(Exact name of registrant as specified in its charter)** |

---

---

| | |
|:---|:---|
| **Indiana** | **85-1848141** |
| **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(I.R.S. Employer**<br> **Identification Number)** |

---

---

| | |
|:---|:---|
| **12115 Visionary Way, Suite 174** <br> **Fishers Indiana** | <br> **46038** |
| **(Address of Principal Executive Offices)**  | **(Zip Code)** |

---

**Registrant's telephone number, including area code:**

**(317) 855-9926**

**Mark Jensen**

**Chief Executive Officer**

**12115 Visionary Way, Suite 174**

**Fishers, Indiana 46038**

**Telephone: (317) 855-9926**

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

**____________________________**

***Copies to:***

**_________________** 

**Clifford J. Hunt**

**Law Office of Clifford J. Hunt, P.A.**

**8200 Seminole Boulevard**

**Seminole, Florida 33772**

**(727) 471-0444 telephone**

**(727) 471-0447 facsimile**

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

---

| | |
|:---|:---|
| **Title of Each Class to be so Registered** | **Name of Each Exchange on Which Each Class is to be Registered** |
| Common Stock, no par value | The Nasdaq Stock Market LLC |

---

**Securities to be registered pursuant to Section 12(g) of the Act:**

None.

**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 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 ☐ <br> Non-accelerated filer ☐ Smaller reporting company ☒ <br> 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. ☐

**Electrified Materials Corporation**

**INFORMATION REQUIRED IN REGISTRATION STATEMENT**

**CROSS-REFERENCE SHEET BETWEEN INFORMATION STATEMENT**

**AND ITEMS OF FORM 10**

This Registration Statement on Form 10 incorporates by reference information contained in the information statement filed herewith as Exhibit 99.1 (the "Information Statement").

**Item 1. Business.**

The information required by this item is contained under the sections of the Information Statement entitled "Information Statement Summary," "The Spin-Off," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Our Industry," "Our Business," "Certain Relationships and Related Person Transactions," and "Where You Can Find More Information." Those sections are incorporated herein by reference.

**Item 1A. Risk Factors.**

The information required by this item is contained under the sections of the Information Statement entitled "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements." Those sections are incorporated herein by reference.

**Item 2. Financial Information.**

The information required by this item is contained under the sections of the Information Statement entitled "Capitalization," "Unaudited Pro Forma Condensed Combined Financial Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Index to the Financial Statements," and the financial statements referenced therein. Those sections are incorporated herein by reference.

**Item 3. Properties.**

The information required by this item is contained under the section of the Information Statement entitled "Our Business—Properties." That section is incorporated herein by reference.

**Item 4. Security Ownership of Certain Beneficial Owners and Management.**

The information required by this item is contained under the section of the Information Statement entitled "Security Ownership of Certain Beneficial Owners and Management." That section is incorporated herein by reference.

**Item 5. Directors and Executive Officers.**

The information required by this item is contained under the section of the Information Statement entitled "Management." That section is incorporated herein by reference.

**Item 6. Executive Compensation.**

The information required by this item is contained under the sections of the Information Statement entitled "Director Compensation" and "Executive Compensation." Those sections are incorporated herein by reference.

**Item 7. Certain Relationships and Related Transactions, and Director Independence.**

The information required by this item is contained under the sections of the Information Statement entitled "Management" and "Certain Relationships and Related Person Transactions." Those sections are incorporated herein by reference.

**Item 8. Legal Proceedings.**

The information required by this item is contained under the sections of the Information Statement entitled "Our Business—Legal Proceedings" and Note 3, "Commitments and Contingencies" to the audited financial statements. Those sections are incorporated herein by reference.

**Item 9. Market Price of, and Dividends on, the Registrant's Common Equity and Related Stockholder Matters.**

The information required by this item is contained under the sections of the Information Statement entitled "Questions and Answers About Reasons for the Spin-Off," "The Spin-Off," "Dividend Policy," "Capitalization," "Material U.S. Federal Income Tax Consequences of the Spin-Off," and "Description of Our Capital Stock." Those sections are incorporated herein by reference.

**Item 10. Recent Sales of Unregistered Securities.**

The information required by this item is contained under the section of the Information Statement entitled "Description of Our Capital Stock." That section is incorporated herein by reference.

**Item 11. Description of Registrant's Securities to Be Registered.**

The information required by this item is contained under the sections of the Information Statement entitled "Questions and Answers About Reasons for the Spin-Off," "The Spin-Off," "Dividend Policy," and "Description of Our Capital Stock." Those sections are incorporated herein by reference.

**Item 12. Indemnification of Directors and Officers.**

The information required by this item is contained under the section of the Information Statement entitled "Description of Our Capital Stock—Limitation on Liability of Directors and Indemnification of Directors and Officers." That section is incorporated herein by reference.

**Item 13. Financial Statements and Supplementary Data.**

The information required by this item is contained under the sections of the Information Statement entitled "Unaudited Pro Forma Condensed Combined Financial Statements," "Index to the Financial Statements," and the financial statements referenced therein. Those sections are incorporated herein by reference.

**Item 14. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.**

Not applicable.

**Item 15. Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(a) Financial Statements***

The information required by this item is contained under the sections of the Information Statement entitled "Unaudited Pro Forma Condensed Combined Financial Statements," "Index to the Financial Statements," and the financial statements referenced therein. Those sections are incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(b) Exhibits***

The following documents are filed as exhibits hereto:

![](ems_1012baimg5.jpg)

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number**  | <br>**Exhibit Description** |
| [2.1](ems_ex21.htm) | [Form of Separation and Distribution Agreement between American Resources Corp. and the registrant](ems_ex21.htm) |
| [2.2](ems_ex22.htm) | [Transition Services Agreement between American Resources Corp and the registrant](ems_ex22.htm) |
| [2.3](ems_ex23.htm) | [Supply Agreement](ems_ex23.htm) |
| [3.1](ems_ex31.htm) | [Articles Conversion of the registrant](ems_ex31.htm) |
| [3.2](ems_ex32.htm) | [Articles of Incorporation of the registrant](ems_ex32.htm) |
| [4.1](ems_ex41.htm) | [Bylaws of the registrant](ems_ex41.htm) |
| [10.01](ems_ex101.htm) | [Employment Agreement with Mark C. Jensen as Chief Executive Officer](ems_ex101.htm) |
| [10.02](ems_ex102.htm) | [Employment Agreement with Kirk P. Taylor as Chief Financial Officer](ems_ex102.htm) |
| [10.03](ems_ex103.htm) | [2024 Omnibus Incentive Plan](ems_ex103.htm) |
| [21.1](ems_ex211.htm) | [List of subsidiaries of the registrant](ems_ex211.htm) |
| [99.1](ems_ex991.htm) | [Preliminary Information Statement](ems_ex991.htm) |

---

![](ems_1012baimg6.jpg)

**SIGNATURE**

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused its Registration Statement on Form 10 to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Electrified Materials Corporation** | **Electrified Materials Corporation** |
| Dated: December 22, 2025 | By: | */s/ Christopher M. Dreska* |
|  | Name:  | Christopher M. Dreska |
|  | Title:  | Chief Executive Officer |

---

## Exhibit 2.1

**EXHIBIT 2.1**

**SEPARATION AND DISTRIBUTION AGREEMENT**

**THIS SEPARATION AND DISTRIBUTION AGREEMENT** (together with the Schedules and Annex hereto, as amended, amended and restated, supplemented, or modified from time to time, this "Agreement"), is entered into as of [●], 2025, by and between American Resources Corporation, a Florida corporation ("AREC"), and Electrified Materials Corporation, an Indiana corporation ("EMC").

**RECITALS**

Capitalized terms used in these recitals without definition have the meanings set forth in Section 1.1.

**WHEREAS**, EMC is a wholly owned Subsidiary of AREC and the Board of Directors of AREC has determined that it is in the best interests of AREC and its stockholders to separate EMC from the critical minerals businesses and other operations of AREC;

**WHEREAS**, in furtherance of the foregoing, the Board of Directors of AREC has determined that it is in the best interests of AREC and its stockholders to distribute to the holders of the issued and outstanding shares of common stock, par value $0.0001 per share, of AREC (the "AREC Common Stock") as of the Record Date, by means of a pro rata dividend, [●]% of the issued and outstanding shares of common stock, par value $0.0001 per share, of EMC (the "EMC Common Stock"), on the basis of [●] share of EMC Common Stock for every [●] then issued and outstanding shares of AREC Common Stock (the "Distribution");

**WHEREAS**, AREC and EMC have prepared, and EMC has filed with the Commission, the Form 10, which includes the Information Statement, and which sets forth appropriate disclosures concerning EMC and the Distribution, and the Form 10 has become effective under the Exchange Act; and

**WHEREAS**, the parties hereto have determined to set forth the principal actions required to effect the Distribution and to set forth certain agreements that will govern the relationship between those parties following the Distribution.

**NOW THEREFORE**, in consideration of the mutual covenants contained in this Agreement, the parties hereby agree as follows:

**ARTICLE 1** 

**DEFINITIONS**

Section 1.1 <u>Definitions</u>(a). As used in this Agreement, the following terms have the following meanings:

"Action" means any demand, claim, suit, action, arbitration, inquiry, investigation, or other proceeding by or before any Governmental Authority or any arbitration or mediation tribunal.

"Affiliate" means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such other Person. For the purposes of this definition, "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by Contract, or otherwise, and the terms "controlling" and "controlled" have meanings correlative to the foregoing. Notwithstanding any provision of this Agreement to the contrary (except where the relevant provision states explicitly to the contrary), no member of the AREC Group, on the one hand, and no member of the EMC Group, on the other hand, shall be deemed to be an Affiliate of the other.

"Agreement" has the meaning set forth in the preamble to this Agreement.

"EMC" has the meaning set forth in the preamble to this Agreement.

"EMC Assets" means, except as expressly otherwise contemplated in this Agreement or any Ancillary Agreement, all right, title, and interest of the assets of and held by EMC and/or its Subsidiaries as of the Distribution Date, or as determined by the good faith of management of EMC and AREC.

"EMC Common Stock" has the meaning set forth in the recitals to this Agreement.

"EMC Designee" means each member of the EMC Group, each Affiliate thereof, and each of their respective past, present, and future directors, officers, employees, and agents and the respective heirs, executors, administrators, successors, and permitted assigns of any of the foregoing.

"EMC Group" means EMC and its Subsidiaries, if any, including all predecessors and successors to such Persons.

"EMC Liabilities" means all of the liabilities of, or origination, from EMC and/or its Subsidiaries (as determined by AREC in its sole discretion) including all Environmental Liabilities.

"Ancillary Agreement" means the Transition Services Agreement and any other agreements, instruments, or certificates related thereto or to the transactions contemplated by this Agreement (in each case, together with the schedules, exhibits, annexes, and other attachments thereto).

"Applicable Law" means, with respect to any Person, any federal, state, local, or foreign law (statutory, common, or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling, directive, guidance, instruction, direction, permission, waiver, notice, condition, limitation, restriction or prohibition, or other similar requirement enacted, adopted, promulgated, imposed, issued, or applied by a Governmental Authority that is binding upon or applicable to such Person, its properties or assets, or its business or operations.

"AREC" has the meaning set forth in the preamble to this Agreement.

Page 2 of 21

"AREC Assets" means all assets, of whatever sort, nature, or description, of AREC and/or its Subsidiaries other than the EMC Assets.

"AREC Common Stock" has the meaning set forth in the recitals to this Agreement.

"AREC Designee" has the meaning set forth in Section 2.3(a).

"AREC Group" means AREC and its Subsidiaries (other than any member of the EMC Group), including all predecessors and successors to such Persons.

"Business Day" means any day, other than Saturday, Sunday, or other day on which commercial banks in New York, New York are authorized or required by Applicable Law to close.

"Claim" means an assertion of any demand or claim, or the commencement of any other Action against a party.

"Commission" means the United States Securities and Exchange Commission.

"Confidential Information" means, with respect to a Group, (a) any proprietary information that is competitively sensitive, material, or otherwise of value to the members of such Group and not generally known to the public, including product planning information, marketing strategies, financial information, information regarding operations, customer relationships, sales estimates, business plans, and internal performance results relating to the past, present, or future business activities of the members of such Group, (b) any proprietary scientific or technical information, design, invention, process, procedure, formula, or improvement that is commercially valuable and secret in the sense that its confidentiality affords any member of such Group a competitive advantage over its competitors, and (c) all confidential or proprietary concepts, documentation, reports, data, specifications, computer software, source code, object code, flow charts, databases, inventions, information, and trade secrets.

"Contract" means any written or oral commitment, contract, subcontract, agreement, arrangement, sublease, license, understanding, sales order, purchase order, instrument, indenture, note, or any other legally binding commitment or undertaking.

"Disposing Party" has the meaning set forth in Section 4.5.

"Distribution" has the meaning set forth in the recitals to this Agreement.

"Distribution Agent" means VStock Transfer.

"Distribution Date" means [●], 2025, the date on which the Distribution shall be effected.

"Distribution Documents" means this Agreement and any other agreements relevant to this Separation and Distribution Agreement.

"Distribution Time" means the time at which the Distribution is effective on the Distribution Date, which shall, to the fullest extent permitted by Applicable Law, be deemed to be 12:01 a.m. Eastern Time on the Distribution Date.

Page 3 of 21

"Environmental Law" means any Applicable Law relating to (a) human or occupational health and safety, (b) pollution or protection of the environment (including ambient air, indoor air, water vapor, surface water, groundwater, wetlands, drinking water supply, land surface or subsurface strata, biota, and other natural resources), or (c) Hazardous Materials, including any Applicable Law relating to exposure to, or use, generation, manufacture, processing, management, treatment, recycling, storage, disposal, emission, discharge, transport, distribution, labeling, presence, possession, handling, Release, or threatened Release of, any Hazardous Material and any Applicable Law relating to recordkeeping, notification, disclosure, registration, and reporting requirements respecting Hazardous Materials.

"Environmental Liabilities" means all Liabilities (including all removal, remediation, reclamation, cleanup or monitoring costs, investigatory costs, response costs, natural resources damages, property damages, personal injury damages, costs of compliance with any settlement, judgment, or other determination of liability and indemnity, contribution, or similar obligations and all costs and expenses, interest, fines, penalties, or other monetary sanctions in connection therewith) relating to, arising out of, or resulting from any (a) (i) Environmental Law, (ii) actual or alleged generation, use, storage, manufacture, processing, recycling, labeling, handling, possession, management, treatment, transportation, distribution, emission, discharge or disposal, or arrangement for the transportation or disposal, of any Hazardous Material, or (iii) actual or alleged presence, Release or threatened Release of, or exposure to, any Hazardous Material (including to the extent relating to the actual or alleged exposure to Hazardous Material, any claims that arise under, or are covered by, workers' compensation laws and/or workers' compensation, disability, or other insurance providing medical care and/or compensation to injured workers), or (b) Contract or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing, and all costs and expenses, interest, fines, penalties, or other monetary sanctions in connection therewith.

"Exchange Act" means the Securities Exchange Act of 1934, as amended.

"Form 10" means the Registration Statement on Form 10 filed by EMC with the Commission to effect the registration of EMC Common Stock pursuant to the Exchange Act in connection with the Distribution, as such Registration Statement may be amended, supplemented, or modified from time to time.

"Governmental Authority" means any multinational, foreign, federal, state, local, or other governmental, statutory, or administrative authority, regulatory body, or commission or any court, tribunal, or judicial or arbitral authority which has any jurisdiction or control over either party (or any of their Affiliates).

"Group" means, as the context requires, the EMC Group, the AREC Group, or either or both of them.

"Guarantee" has the meaning set forth in Section 2.9.

Page 4 of 21

"Hazardous Material" means (a) any petroleum or petroleum products, radioactive materials, toxic mold, radon, asbestos, or asbestos-containing materials in any form, lead-based paint, urea formaldehyde foam insulation, Per- and Polyfluoroalkyl Substances (PFAs), or polychlorinated biphenyls (PCBs); and (b) any chemicals, materials, substances, compounds, mixtures, products or byproducts, biological agents, living or genetically modified materials, pollutants, contaminants, or wastes that are now or hereafter become defined or characterized as or included in the definition of "hazardous substances," "hazardous wastes," "hazardous materials," "extremely hazardous wastes," "restricted hazardous wastes," "special waste," "toxic substances," "pollutants," "contaminants," "toxic," "dangerous," "corrosive," "flammable," "reactive," "radioactive," or words of similar import, under any Applicable Law pertaining to the environment.

"Information Statement" means the Information Statement to be sent to each holder of AREC Common Stock in connection with the Distribution, as amended, supplemented, or modified from time to time.

"Intellectual Property" means any and all intellectual property throughout the world, including any and all U.S. and foreign (a) patents, invention disclosures, and all related continuations, continuations-in-part, divisionals, provisionals, renewals, reissues, re-examinations, additions, extensions (including all supplementary protection certificates), and all applications and registrations therefor, (b) trademarks, service marks, names, corporate names, trade names, domain names, social media identifiers, logos, slogans, trade dress, design rights, and other similar business identifiers or designations of source or origin and all applications and registrations therefor, together with the goodwill symbolized by any of the foregoing (collectively, "Trademarks"), (c) copyrights, works of authorship, and copyrightable subject matter and all applications and registrations therefor, (d) trade secrets, know-how, confidential data and information, technical information, including practices, techniques, methods, processes, inventions, developments, specifications, formulations, manufacturing processes, structures, analytical and quality control information and procedures, studies and procedures, and regulatory information, (e) computer software (including source code, object code, firmware, operating systems, and specifications), (f) databases and data collections, and (g) all rights to sue or recover and retain damages and costs and attorneys' fees for the past, present, or future infringement, misappropriation, or other violation of any of the foregoing.

"Intercompany Accounts" has the meaning set forth in Section 2.6.

"Liabilities" means any and all Claims, debts, liabilities, damages, and/or obligations (including, but not limited to, any Escheat Payment) of any kind, character, or description, whether absolute or contingent, matured or not matured, liquidated or unliquidated, accrued or unaccrued, known or unknown, whenever arising, including all costs and expenses (including reasonable attorneys' fees and expenses and associated investigation costs) relating thereto, and including those Claims, debts, liabilities, damages, and/or obligations arising under this Agreement and/or the other Distribution Documents, any Applicable Law, any Action or threatened Action, any order or consent decree of any Governmental Authority or any award of any arbitrator of any kind, and those arising under any agreement, commitment, or undertaking, including in connection with the enforcement of rights hereunder or thereunder.

"Nasdaq" means the Nasdaq Stock Market.

Page 5 of 21

"Person" means an individual, corporation, partnership, limited liability company, association, trust, or other entity or organization, including a Governmental Authority.

"Receiving Party" has the meaning set forth in Section 4.5.

"Record Date" means the close of business on [●], 2025, the date determined by the Board of Directors of AREC as the record date for determining the stockholders of AREC entitled to the Distribution.

"Release" means any release, spill, emission, leaking, dumping, pumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching, or migration into, onto, within, or through the indoor or outdoor environment (including ambient air, surface water, groundwater, land surface or subsurface strata, soil, and sediments) or into, through, or within any property, building, structure, fixture, or equipment.

"Released Parties" and "Released Party" have the meanings set forth in Section 5.1(a).

"Representatives" has the meaning set forth in Section 4.6.

"Securities Act" means the Securities Act of 1933, as amended.

"Subsidiary" means, with respect to any Person, any other Person (other than an individual) of which capital stock or other equity securities or interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person.

"Third Party" means any Person that is not a member or an Affiliate of a member of the EMC Group or the AREC Group.

"Transfer" means the contribution of certain businesses, assets, and liabilities of the AREC Group and the EMC Group to be completed before the Distribution Time.

"Transfer Agreements" has the meaning set forth in Section 2.4.

"Transition Services Agreement" means the Transition Services Agreement between AREC and EMC, as such agreement may be amended, amended and restated, supplemented, or modified from time to time.

Section 1.2 <u>Interpretation</u>. In this Agreement, unless the context clearly indicates otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words used in the singular include the plural and words used in the plural include the singular;

&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) references to any Person include such Person's successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) except as otherwise clearly indicated, reference to any gender includes the other gender;

Page 6 of 21

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the words "include," "includes," and "including" shall be deemed to be followed by the words "without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) reference to any Article, Section, Exhibit, Schedule, or Annex means such Article or Section of, or such Exhibit, Schedule, or Annex to, this Agreement, as the case may be, and references in any Section or definition to any clause means such clause of such Section or definition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the words "herein," "hereunder," "hereof," "hereto," and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) reference to any agreement, instrument, or other document means such agreement, instrument, or other document as amended, amended and restated, supplemented, or modified from time to time to the extent permitted by the provisions thereof and by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified, or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;

&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) relative to the determination of any period of time, "from" means "from and including," "to" means "to and including," and "through" means "through and including";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the titles to Articles and headings of Sections contained in this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) unless otherwise specified in this Agreement, all references to dollar amounts herein shall be in respect of lawful currency of the United States; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any capitalized term used in an Exhibit, Schedule, or Annex but not otherwise defined therein shall have the meaning set forth in this Agreement.

**ARTICLE 2**

**PRE-DISTRIBUTION ACTIONS**

Section 2.1 <u>Information Statement; Listing</u>. If required by the Commission, AREC shall deliver (or shall cause to be delivered) the Information Statement to the holders of AREC Common Stock as of the Record Date. AREC and EMC shall take (or shall cause to be taken) all such lawful actions as may be necessary or appropriate under the securities or blue sky laws of states or other political subdivisions of the United States and shall use (or cause to be used) commercially reasonable efforts to comply with all applicable foreign securities laws in connection with the transactions contemplated by this Agreement and the Ancillary Agreements. EMC shall prepare, file, and pursue (or shall cause to be prepared, filed, and pursued) an application to permit listing of the EMC Common Stock on Nasdaq or any other exchange.

Section 2.2 <u>The Transfer and Other Related Actions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Transfer</u>. At or prior to the Distribution Time, to the extent not already consummated, each of AREC and EMC shall, and shall, to the fullest extent permitted by Applicable Law, cause the other members of its Group to, consummate the Transfer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Distribution Agent</u>. At or prior to the Distribution Time, to the extent not already entered into, AREC shall enter into a distribution agent agreement with the Distribution Agent or otherwise provide instructions to the Distribution Agent regarding the Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Satisfying Conditions to the Distribution</u>. AREC and EMC shall, and shall, to the fullest extent permitted by Applicable Law, cause the other members of their respective Group to, cooperate to cause the conditions to the Distribution set forth in Section 3.1 to be satisfied (or waived by AREC) and to effect the Distribution at the Distribution Time upon such satisfaction (or waiver by AREC).

Section 2.3 <u>Transfers of Certain Other Assets and Liabilities</u>. At or prior to the Distribution Time, to the extent not already consummated and unless otherwise provided in this Agreement or in any Ancillary 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;(a) AREC shall, and shall, to the fullest extent permitted by Applicable Law, cause the relevant member of the AREC Group to, assign, contribute, convey, transfer, and deliver to EMC or any member of the EMC Group designated by EMC (an "EMC Designee") all of the right, title, and interest of AREC or such member of the AREC Group in and to all of the EMC Assets, if any, of AREC or such member of the AREC Group, and EMC shall, or shall, to the fullest extent permitted by Applicable Law, cause the relevant EMC Designee to, as applicable, accept such EMC Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) EMC shall, and shall to the fullest extent permitted by Applicable Law, cause the relevant member of the EMC Group to, assign, contribute, convey, transfer, and deliver to AREC or any member of the AREC Group designated by AREC (a "AREC Designee") all of the right, title, and interest of EMC or such member of the EMC Group in and to all of the AREC Assets, if any, held by EMC or such member of the EMC Group and AREC shall, or shall to the fullest extent permitted by Applicable Law, cause the relevant AREC Designee to, as applicable, accept such AREC Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) AREC shall, and shall, to the fullest extent permitted by Applicable Law, cause the relevant member of the AREC Group to, assign, contribute, convey, transfer, and deliver to EMC or any EMC Designee all of the EMC Liabilities, if any, of AREC or such member of the AREC Group, and EMC shall, or shall, to the fullest extent permitted by Applicable Law, cause the relevant EMC Designee to, as applicable, accept, assume and agree, to perform, discharge, and fulfill, all of the EMC Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EMC shall, and shall, to the fullest extent permitted by Applicable Law, cause the relevant member of the EMC Group to, assign, contribute, convey, transfer, and deliver to AREC or any AREC Designee all of the AREC Liabilities, if any, of EMC or such member of the EMC Group, and AREC shall, or shall, to the fullest extent permitted by Applicable Law, cause the relevant AREC Designee to, as applicable, accept, assume and agree to perform, discharge, and fulfill, all of the AREC Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent any assignment, contribution, conveyance, transfer or delivery, or acceptance or assumption of any asset, liability, or Guarantee of either Group is not effected in accordance with this Section 2.3 at or prior to the Distribution Time for any reason (including as a result of the failure of the parties to identify it as being required to be transferred pursuant to this Section 2.3, but subject to Section 2.4), the relevant party shall and shall, to the fullest extent permitted by Applicable Law, cause the other members of its Group to, use all commercially reasonable efforts to effect such transfer as promptly thereafter as practicable.

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Section 2.4 <u>Transfer Agreements</u>. The transfers of the various entities and the contribution, assignment, transfer, conveyance, and delivery of the assets and the acceptance and assumption of the Liabilities contemplated by Section 2.3 will be effected, in certain cases, pursuant to one or more asset transfer agreements, share transfer agreements, business transfer agreements, certificates of demerger and merger, and other agreements and instruments (collectively, the "Transfer Agreements"); provided that, in each case, it is intended that the Transfer Agreements shall serve purely to effect (a) the legal transfer of the EMC Assets or AREC Assets to the relevant member of the EMC Group or the AREC Group, as applicable, as contemplated by Section 2.3, and (b) the acceptance and assumption of the EMC Liabilities or the AREC Liabilities by a member of the EMC Group or the AREC Group, as applicable, as contemplated by Section 2.3. In the event of any conflict between any Transfer Agreement and this Agreement, the terms of such Transfer Agreement shall control solely with respect to any applicable purchase price adjustment or cash adjustment set forth in any such Transfer Agreement and this Agreement shall control in all other respects; provided that, notwithstanding anything in any Transfer Agreement to the contrary, in the event any Transfer Agreement provides for a purchase price adjustment or cash adjustment, whether based upon a calculation of fair market value or otherwise, or any similar adjustment provision, any purchase price adjustment or cash adjustment determination under such Transfer Agreement, including as to the amount, if any, of any such adjustment, shall be determined by AREC in its sole discretion. Notwithstanding anything in any Transfer Agreement to the contrary, neither AREC nor any other member of the AREC Group, on the one hand, nor EMC nor any other member of the EMC Group, on the other hand, shall commence, bring, or otherwise initiate any Action under any Transfer Agreement.

Section 2.5 <u>Agreement Relating to Consents Necessary to Transfer Assets and Liabilities</u>. Notwithstanding any provision of this Agreement to the contrary, this Agreement shall not constitute an agreement to assign, contribute, convey, transfer, deliver, or accept any asset (including any Contract) or any claim or right or any benefit arising thereunder or resulting therefrom, or to assume any liability, if such assignment, contribution, conveyance, transfer, delivery, or acceptance, or such assumption without the consent of a Third Party or a Governmental Authority, would result in a breach, or constitute a default (or an event which, with the giving of notice or lapse of time, or both, would become a default), under any Contract or would otherwise adversely affect the rights of a member of the AREC Group or the EMC Group, as applicable, thereunder. AREC and EMC will use their respective commercially reasonable efforts to obtain the consent of any Third Party (including any Governmental Authority), if any, required in connection with the transfer, assignment, or assumption pursuant to Section 2.3 of any such asset or any such claim or right or benefit arising thereunder or to the assumption of any liability; provided that in no event shall any member of a Group have any liability whatsoever to any member of the other Group for any failure to obtain any such consent. If and when such consent is obtained, such transfer, assignment, and/or assumption shall be effected in accordance with the terms of this Agreement and/or the relevant Ancillary Agreement. During the period in which any transfer, assignment, or assumption is delayed pursuant to this Section 2.5 as a result of the absence of a required consent, the party (or relevant other member of its Group) retaining such asset, claim, or right shall thereafter hold (or shall cause, to the fullest extent permitted by Applicable Law, such member of its Group to hold) such asset, claim, or right for the use and benefit of the party (or relevant other member of its Group) entitled thereto (at the expense of the Person entitled thereto) and the party intended to assume such liability shall, or shall, to the fullest extent permitted by Applicable Law, cause the relevant other member of its Group to, pay, hold harmless, or reimburse the party (or the other relevant member of its Group) retaining such liability for all amounts paid, incurred in connection with, or arising out of the retention of such liability. In addition, the party retaining such asset, claim, or right, or such liability (or other relevant member of its Group) shall (or shall cause, to the fullest extent permitted by Applicable Law, such member of its Group to) treat, insofar as reasonably possible and to the fullest extent permitted by Applicable Law, such asset, claim, or right, or such liability, in the ordinary course of business in accordance with past practice and take such other actions as may be reasonably requested by the Person to which such asset, claim, or right, or such liability, is to be assigned, contributed, conveyed, transferred, delivered, accepted, or assumed in order to place such Person, insofar as reasonably possible, in the same position as if such asset, claim, or right, or such liability, had been assigned, contributed, conveyed, transferred, delivered, accepted, or assumed on or prior to the Distribution Time as contemplated by this Agreement and so that all the benefits and burdens relating to such asset, claim, or right, or such liability, including possession, use, risk of loss, potential for gain, and dominion, control, and command over such asset, claim, or right, or such liability, are to inure from and after the Distribution Time to the relevant member of the AREC Group or the EMC Group, as applicable, entitled to the receipt of such asset, claim, or right, or required to assume such liability.

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Section 2.6 <u>Intercompany Accounts</u>. AREC and EMC shall, and shall, to the fullest extent permitted by Applicable Law, cause the other members of their respective Group to, use commercially reasonable efforts to settle on or prior to the Distribution Date (to the extent practicable), all intercompany receivables, payables, and other balances, in each case, that arise prior to the Distribution Time between members of the AREC Group, on the one hand, and members of the EMC Group, on the other hand (such intercompany receivable, payables, and other balances, the "Intercompany Accounts"), by way of capitalization and/or one or more payments (whether or not on a net basis) in satisfaction of such amounts. From and after the Distribution Time, AREC and EMC shall, and shall, to the fullest extent permitted by Applicable Law, cause the other members of their respective Group to, use commercially reasonable efforts to settle any Intercompany Accounts that are not settled as of the Distribution Time within a reasonable period of time from the Distribution Date and in the manner set forth in the first sentence of this Section 2.6; provided that any claim by any member of either Group with respect to an Intercompany Account must be made in writing (which writing shall be provided in accordance with Section 6.1 and be reasonably specific as to the applicable Intercompany Account and the amount thereof) to the applicable member of the other Group within 150 days of the Distribution Date.

Section 2.7 <u>Intercompany Agreements</u>. All Intercompany Agreements between AREC Group and EMC Group will be managed in accordance with the Transitionary Services Agreement.

Section 2.8 <u>Bank Accounts; Cash Balances</u>. AREC and EMC shall, and shall, to the fullest extent permitted by Applicable Law, cause the other members of their respective Group to, use commercially reasonable efforts such that, at or prior to the Distribution Time, the AREC Group and the EMC Group maintain separate bank accounts and separate cash management processes. Without limiting the generality of the foregoing, AREC and EMC shall use commercially reasonable efforts to, and shall cause the other members of their respective Group to use commercially reasonable efforts to, effective prior to the Distribution Time, (i) remove and replace the signatories of any bank or brokerage account owned by EMC or any other member of the EMC Group as of the Distribution Time with individuals designated by EMC and (ii) if requested by AREC, remove and replace the signatories of any bank or brokerage account owned by AREC or any other member of the AREC Group as of the Distribution Time with individuals designated by AREC.

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Section 2.9 <u>Replacement of Guarantees; Indemnification</u>. EMC shall, and shall cause the other members of their respective Group to, effective within 60 days post the Distribution Time, terminate or cause a member of (a) the EMC Group to be substituted in all respects for a member of the AREC Group with respect to, and for the members of the AREC Group, to be otherwise removed or released from, all obligations of any member of the EMC Group under any guarantee, surety bond, loan, indenture, legal claims, letters of credit, letters of comfort or similar credit, or performance support arrangement (each, a "Guarantee"). If EMC has been unable to effect any such substitution, removal, release, and termination with respect to any such Guarantee as of 60 days post the Distribution Time, then, following the Distribution Time, subject to any applicable terms of Section 2.9, (i) EMC shall, and shall cause the members of their respective Group to, cooperate to effect such substitution, removal, release, and termination as soon as reasonably practicable after the Distribution Time and until then, shall fully, completely, and unconditionally indemnify AREC, the AREC Group, its management officers, and AREC Indemnitee against any such liabilities and Guarantees.

Section 2.10 <u>Further Assurances and Consents</u>. In addition to the actions specifically provided for elsewhere in this Agreement, each of AREC and EMC shall use its commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things, reasonably necessary, proper, or advisable under Applicable Law, agreements, or otherwise to consummate and make effective any transfers of assets, assignments and assumptions of Liabilities, and any other transactions contemplated by this Agreement, including using its commercially reasonable efforts to obtain any consents and approvals and to make any filings and applications necessary or desirable in order to consummate the transactions contemplated by this Agreement; provided that in no event shall any member of a Group have any liability whatsoever to any member of the other Group for any failure to obtain any such consent or approval.

**ARTICLE 3**

**DISTRIBUTION**

Section 3.1 <u>Conditions Precedent to the Distribution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In no event shall the Distribution occur unless each of the following conditions shall have been satisfied (or waived by AREC in its sole discretion):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Transfer shall have been consummated;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Board of Directors of AREC shall have approved the Distribution and shall not have abandoned the Distribution or terminated this Agreement at any time prior to the Distribution Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Form 10 shall have been filed with the Commission and declared effective by the Commission, no stop order suspending the effectiveness of the Form 10 shall be in effect, no proceedings for such purpose shall be pending before or threatened by the Commission, and the Information Statement shall have been mailed to holders of the AREC Common Stock as of the Record Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all actions and filings necessary or appropriate under applicable federal, state, or foreign securities or "blue sky" laws and the rules and regulations thereunder shall have been taken and, where applicable, become effective or been accepted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 EMC Common Stock to be delivered in the Distribution shall have been approved for listing on a public stock exchange, subject to official notice of issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Board of Directors of EMC, as named in the Information Statement, shall have been duly elected, and the Amended and Restated Certificate of Incorporation and the Amended and Restated Bylaws, each in substantially the form filed as an exhibit to the Form 10, shall be in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) each of the Ancillary Agreements shall have been duly executed and delivered by the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) no Applicable Law shall have been adopted, promulgated, or issued, and be in effect, that prohibits the consummation of the Distribution or any of the other transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) no event or development shall have occurred or exist that, in the judgment of the Board of Directors of AREC, in its sole discretion, makes it inadvisable to effect the Distribution or the other transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the conditions set forth in this Section 3.1(a) is for the sole benefit of AREC and shall not give rise to or create any duty on the part of AREC or its Board of Directors to waive or not to waive any such condition or to effect the Distribution, or in any way limit AREC's rights of termination as set forth in Section 6.11 or alter the consequences of any termination from those specified in Section 6.11. Any determination made by AREC on or prior to the Distribution Time concerning the satisfaction or waiver of any or all of the conditions set forth in this Section 3.1 shall be conclusive and binding on the parties and all other affected Persons.

Section 3.2 <u>The Distribution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) AREC shall, in its sole discretion, determine the Distribution Date and all terms of the Distribution, including the timing of the consummation of all or part of the Distribution. AREC may, at any time and from time to time until the Distribution Time, modify or change the terms of the Distribution, including by accelerating or delaying the timing of the consummation of all or part of the Distribution. For the avoidance of doubt, (i) nothing in this Agreement shall in any way limit AREC's right to terminate this Agreement or the Distribution as set forth in Section 6.11 or alter the consequences of any such termination from those specified in Section 6.11, and (ii) no other class of preferred or common stock, other than the EMC Common Stock, shall be distributed pursuant to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the terms and conditions set forth in this Agreement, (i) on or prior to the Distribution Date, AREC shall take such lawful actions as are reasonably necessary or appropriate to permit the Distribution by the Distribution Agent of validly issued, fully paid, and non-assessable shares of EMC Common Stock, registered in book-entry form through the registration system, (ii) the Distribution shall be effective at the Distribution Time, and (iii) subject to Section 3.3, AREC shall instruct the Distribution Agent to distribute, on or as soon as practicable after the Distribution Date, to each holder of record of AREC Common Stock as of the Record Date, by means of a pro rata dividend, one share of EMC Common Stock for every four shares of AREC Common Stock so held. Following the Distribution Date, EMC agrees to provide all book-entry transfer authorizations for shares of EMC Common Stock that AREC or the Distribution Agent shall require (after giving effect to Sections 3.3 and 3.4) in order to effect the Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Concurrent with the Distribution, the holders of AREC ISO at the Distribution Date will automatically receive a proportional amount of similar securities (proportional to the Distribution), with same terms and conditions in the EMC ISO.

Section 3.3 <u>Fractional Shares</u>. Notwithstanding any provisions of this Agreement to the contrary, no fractional shares of EMC Common Stock shall be distributed in the Distribution. Instead, AREC shall direct the Distribution Agent to determine (based on the aggregate number of shares held by each holder) the number of whole shares and the fractional share of EMC Common Stock allocable to each holder of AREC Common Stock as of the Record Date. Should there be any fractional shares of EMC Common Stock, the Distribution Agent shall round the fractional share to the nearest whole share.

Section 3.4 <u>NO REPRESENTATIONS OR WARRANTIES</u>. EXCEPT AS EXPRESSLY REPRESENTED AND WARRANTED HEREIN OR IN ANY OTHER DISTRIBUTION DOCUMENT, NO MEMBER OF EITHER GROUP MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, TO ANY MEMBER OF THE OTHER GROUP OR ANY OTHER PERSON WITH RESPECT TO ANY OF THE TRANSACTIONS OR MATTERS CONTEMPLATED BY THIS AGREEMENT OR THE OTHER DISTRIBUTION DOCUMENTS (INCLUDING WITH RESPECT TO THE BUSINESS, ASSETS, LIABILITIES, CONDITION, OR PROSPECTS (FINANCIAL OR OTHERWISE) OF, OR ANY OTHER MATTER INVOLVING, EITHER BUSINESS, OR THE SUFFICIENCY OF ANY ASSETS TRANSFERRED OR LICENSED TO THE APPLICABLE GROUP, OR THE TITLE TO ANY SUCH ASSETS, OR THAT ANY REQUIREMENTS OF APPLICABLE LAW ARE COMPLIED WITH IN RESPECT OF THE TRANSFER OR THE DISTRIBUTION), AND ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND WHATSOEVER, EXPRESSED OR IMPLIED, ARE HEREBY EXPRESSLY DISCLAIMED BY AREC, FOR ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE OTHER MEMBERS OF ITS GROUP, AND EMC, FOR ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE OTHER MEMBERS OF ITS GROUP. EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN ANY OTHER DISTRIBUTION DOCUMENT, EACH MEMBER OF EACH GROUP SHALL TAKE ALL OF THE BUSINESS AND ASSETS TRANSFERRED OR LICENSED TO OR LIABILITIES ASSUMED BY IT PURSUANT TO THIS AGREEMENT OR ANY OTHER DISTRIBUTION DOCUMENT ON AN "AS IS, WHERE IS" BASIS, AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A SPECIFIC PURPOSE, OR OTHERWISE ARE HEREBY EXPRESSLY DISCLAIMED BY AREC, FOR ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE OTHER MEMBERS OF ITS GROUP, AND EMC, FOR ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE OTHER MEMBERS OF ITS GROUP.

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**ARTICLE 4**

**COVENANTS**

Section 4.1 <u>Books and Records; Access to Information</u>. To the extent not previously assigned, contributed, conveyed, transferred, delivered, and accepted in accordance with Section 2.2(a) or Section 2.3, from and after the Distribution Time, (i) AREC shall, and shall cause the other members of the AREC Group to, assign, contribute, convey transfer, and deliver to EMC or any EMC Designee any books and records that are EMC Assets found to be in the possession of AREC or any other member of the AREC Group in accordance with the applicable terms of the Transition Services Agreement and the applicable schedules thereto; provided that, without limiting any express delivery requirements under this Section 4.1(a) and the terms of the Transition Services Agreement, neither AREC nor any other member of the AREC Group shall be required to conduct any general search or investigation of its files for such books and records, and (ii) EMC shall, and shall cause the other members of the EMC Group to, assign, contribute, convey, transfer, and deliver to AREC or any AREC Designee any books and records that are AREC Assets found to be in the possession of EMC or any other member of the EMC Group in accordance with the applicable terms of the Transition Services Agreement and the applicable schedules thereto; provided that, without limiting any express delivery requirements under this Section 4.1(a) and the terms of the Transition Services Agreement, neither EMC nor any other member of the EMC Group shall be required to conduct any general search or investigation of its files for such books and records. Such data that could be requested for government inquiries or public company PCAOB GAAP audits shall be maintained, to the best of the ability, for a period of a minimum of two years.

Section 4.2 <u>Litigation</u>. The parties agree to cooperate on any litigation and EMC agrees to indemnify AREC for any litigation liabilities or costs.

Section 4.3 <u>Reimbursement</u>. Each Group providing information or witnesses to the other Group or otherwise incurring any out-of-pocket expense in connection with transferring books and records or otherwise cooperating under Section 4.1 shall be entitled to receive from the recipient thereof, upon the presentation of invoices therefor, payment for all reasonable and documented out-of-pocket costs and expenses (including attorney's fees but excluding reimbursement for general overhead, salary, and employee benefits) actually and reasonably incurred in providing such access, information, witnesses, or cooperation.

Section 4.4 <u>Ownership of Information</u>. All information owned by one party (or another member of its Group) that is furnished to or accessed by the other party (or another member of its Group) under Section 4.1 shall, to the fullest extent permitted by Applicable Law, be deemed to remain the property of the providing party. Unless specifically set forth herein or in any Ancillary Agreement, nothing contained in this Agreement shall be construed to grant or confer rights of license or otherwise in any such information.

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Section 4.5 <u>Retention of Records</u>. Except as otherwise required by Applicable Law or agreed to by the parties in writing, for a period of seven years following the Distribution Date, each party shall, and shall, to the fullest extent permitted by Applicable Law, cause the other members of its Group to, retain any and all information in its possession or control relating to the other Group's Business in accordance with the document retention practices of AREC as in effect as of the date hereof. Each party shall not, and shall, to the fullest extent permitted by Applicable Law, cause the other members of its Group not to, destroy, or permit the destruction, or otherwise dispose, or permit the disposal, of any such information, subject to such retention practice, unless, prior to such destruction or disposal, the party proposing (or whose Group member is proposing) such destruction or disposal (the "Disposing Party") provides not less than 30 days' prior written notice to the other party (the "Receiving Party"), specifying the information proposed to be destroyed or disposed of and the scheduled date for such destruction or disposal. If the Receiving Party shall request in writing prior to the scheduled date for such destruction or disposal that any of the information proposed to be destroyed or disposed of be delivered to the Receiving Party, the Disposing Party shall promptly arrange for the delivery of such of the information as was requested at the expense of the Receiving Party; provided that, if the Disposing Party reasonably determines that any such provision of information would violate any Applicable Law or agreement to which such party or other member of its Group is a party, or waive or adversely affect the ability to successfully assert any privilege applicable to such party or any member of its Group, the parties shall use commercially reasonable efforts to permit the prompt compliance with such request in a manner that avoids any such harm or consequence. Any records or documents that were subject to a litigation hold prior to the Distribution Date must be retained by the applicable party (or other member of its Group) until such party or member of its Group is notified by the other party that the litigation hold is no longer in effect.

Section 4.6 <u>Confidentiality</u>. Each party acknowledges that it or another member of its Group may have in its possession, and, in connection with this Agreement and the Ancillary Agreements, may receive, Confidential Information of the other party or any other member of its Group (including information in the possession of such other party or any other member of its Group relating to its clients or customers). Each party shall hold and shall cause its directors, officers, employees, agents, consultants, and advisors ("Representatives") and the other members of its Group and their Representatives to hold in strict confidence and not to use, except as permitted by this Agreement or any Ancillary Agreement, all such Confidential Information concerning the other Group unless (a) such party or any of the other members of its Group or its or their Representatives is compelled to disclose such Confidential Information by judicial or administrative process or by other requirements of Applicable Law, or (b) such Confidential Information can be shown to have been (i) in the public domain through no fault of such party or any of the other members of its Group or its or their Representatives, (ii) lawfully acquired after the Distribution Date on a non-confidential basis from other sources not known by such party or other members of its Group to be under any legal obligation to keep such information confidential, or (iii) developed by such party or any of the other members of its Group or its or their Representatives without the use of any Confidential Information of the other Group. Notwithstanding the foregoing, such party or other member of its Group or its or their Representatives may disclose such Confidential Information to the other members of its Group and its or their Representatives so long as such Persons are informed by such Person of the confidential nature of such Confidential Information and are directed by such Person to treat such information confidentially. The obligation of each party and the other members of its Group and its and their Representatives to hold any such Confidential Information in confidence shall be satisfied if they exercise the same level of care with respect to such Confidential Information as they would with respect to their own proprietary information. If such party or other member of its Group or any of its or their Representatives becomes legally compelled to disclose any documents or information subject to this Section, such party or other member of its Group shall promptly notify the other party and, upon request, use commercially reasonable efforts to cooperate with the other party's or Group's efforts to seek a protective order or other remedy. If no such protective order or other remedy is obtained or if the other party waives in writing such party's compliance with this Section 4.6, such party or the other member of its Group or its or their Representatives may furnish only that portion of the information which it concludes, after consultation with counsel, is legally required to be disclosed and will exercise its commercially reasonable efforts to obtain reliable assurance that confidential treatment will be accorded such information. Each party agrees to be responsible for any breach of this Section 4.6 by it, the other members of its Group, and its and their Representatives.

Page 15 of 21

Section 4.7 <u>Privileged Information</u>. Notwithstanding the further provisions of this Section, each of the parties agrees, for itself and, to the fullest extent permitted by Applicable Law, for the other members of its Group, that legal services rendered prior to the Distribution Time with respect to the transactions contemplated by this Agreement and the other Distribution Documents were rendered to both the AREC Group and the EMC Group and both the AREC Group and the EMC Group shall be considered the client with respect to such legal services for the purposes of any privilege relating to such legal services.

Section 4.8 <u>Limitation of liability</u>. Except as otherwise provided in this Agreement, no party (or any other member of its Group) shall have any liability to any other party (or any other member of its Group) in the event that any information, books, or records exchanged or provided pursuant to this Agreement is found to be inaccurate or the requested information, books, or records is not provided, in the absence of willful misconduct by the party (or any other member of its Group) requested to provide such information, books, or records. No party (or any other member of its Group) shall have any liability to any other party (or any other member of its Group) if any information, books, or records is destroyed after commercially reasonable efforts by such party (or any other member of its Group) to comply with the provisions of Section 4.5.

Section 4.9 <u>Other Agreements Providing for Exchange of Information</u>. The rights and obligations granted under this Article 4 are subject to any specific limitations, qualifications, or additional provisions on the sharing, exchange, retention, rights to use, or confidential treatment of Confidential Information set forth in any Ancillary Agreement.

Section 4.10 <u>Insurance</u>. EMC, for itself and the other members of its Group, acknowledges and agrees that each individual business will maintain its own adequate insurance coverage in their sole discretion.

Page 16 of 21

**ARTICLE 5**

**RELEASE; INDEMNIFICATION**

Section 5.1 <u>Release of Pre-Distribution Claims</u>. Each party does hereby, on behalf of itself and, to the fullest extent permitted by Applicable Law, each other member of its Group, and each of their successors and permitted assigns, release and forever discharge the other party and the other members of such party's Group, and their respective successors and permitted assigns, and all Persons who at any time prior to the Distribution Time have been directors, officers, employees, or attorneys serving as independent contractors of such other party or any other member of its Group (in each case, in their respective capacities as such), and their respective heirs, executors, administrators, successors, and permitted assigns (collectively, the "Released Parties" and each, a "Released Party"), from any and all demands, Claims, Actions, and Liabilities whatsoever, whether at law or in equity (including any right of contribution or any right pursuant to any Environmental Law whether now or hereinafter in effect), whether arising under any Contract, by operation of law or otherwise (and including for the avoidance of doubt, those arising as a result of the negligence, strict liability, or any other liability under any theory of law or equity of, or any violation of Applicable Law by any Released Party), existing or arising from any acts, omissions, circumstances, occurrences, or incidents occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Distribution Time. The rights and obligations of indemnification shall survive this agreement.

**ARTICLE 6** 

**MISCELLANEOUS**

Section 6.1 <u>Notices</u>. Any notice, instruction, direction, or demand under the terms of this Agreement required to be in writing shall be duly given upon delivery, if delivered by hand, facsimile transmission, mail, or e-mail transmission to the following addresses:

If to AREC to:

American Resources Corporation

12115 Visionary Way, Suite 174

Fishers, IN 46038

Email: info@americanresourcescorp.com

Attn: General Counsel

If to EMC to:

Electrified Materials Corporation

12115 Visionary Way, Suite 174

Fishers, IN 46038

Email: mcj@ electrifiedmaterials.com

Attn: CEO

or such other address or facsimile number as such party may hereafter specify for the purpose by notice to the other party hereto. All such notices, requests, and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice, request, or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt.

Page 17 of 21

Section 6.2 <u>Amendments; No Waivers</u>(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by AREC and EMC, or in the case of a waiver, by the party against whom the waiver is to be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No failure or delay by any party in exercising any right, power, or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. The rights and remedies herein provided shall, to the fullest extent permitted by Applicable Law, be cumulative and not exclusive of any rights or remedies provided by Applicable Law.

Section 6.3 <u>Expenses</u>. AREC and EMC shall each bear the costs and expenses incurred or paid by it or the other members of its respective Group in connection with the Transfer, the Distribution, and any other related transaction. All other third-party fees, costs, and expenses paid or incurred in connection with the foregoing (except as specifically allocated pursuant to the terms of this Agreement) shall be paid by the party or Group incurring such fees or expenses, whether or not the Distribution occurs, or as otherwise agreed by the parties in writing.

Section 6.4 <u>Successors and Assigns</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; provided that neither party may assign, delegate, or otherwise transfer any of its rights or obligations (or those of any other member of its Group) under this Agreement without the consent of the other party hereto. If any party or any of its successors or permitted assigns (a) shall consolidate with or merge into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (b) shall transfer all or substantially all of its properties and assets to any Person, then, and in each such case, proper provisions shall be made so that the successors and permitted assigns of such party shall assume all of the obligations of such party under this Agreement and the other Distribution Documents.

Section 6.5 <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of Indiana, without regard to the conflicts of law rules of such state, all rights and remedies being governed by said laws.

Section 6.6 <u>Counterparts; Effectiveness; Third-Party Beneficiaries</u>. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other party hereto. Until and unless each party has received a counterpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). Except for Section 4.7 and the indemnification and release provisions of Article 5, neither this Agreement nor any provision hereof is intended to confer any rights, benefits, remedies, obligations, or liabilities hereunder upon any Person other than the parties hereto and their respective successors and permitted assigns.

Page 18 of 21

Section 6.7 <u>Entire Agreement</u>. This Agreement and the other Distribution Documents constitute the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements, understandings, and negotiations, both written and oral, between the parties with respect to the subject matter hereof and thereof. No representation, inducement, promise, understanding, condition, or warranty not set forth herein or in the other Distribution Documents has been made or relied upon by any party hereto or any other member of its Group with respect to the transactions contemplated hereby or by the other Distribution Documents, and such reliance is hereby expressly disclaimed by AREC, for itself and, to the fullest extent permitted by Applicable Law, the other members of its Group, and EMC for itself and, to the fullest extent permitted by Applicable Law, the other members of its Group. Except as provided in Section 2.4, in the event and to the extent that there shall be a conflict between the provisions of this Agreement and the provisions of any Ancillary Agreement, the Ancillary Agreement shall control with respect to the subject matter thereof, and this Agreement shall control with respect to all other matters; provided, that except as provided for in Section 2.4 to extent that there shall be a conflict between the provisions of this Agreement and the provisions of any Transfer Agreement, this Agreement shall control with respect to all matters.

Section 6.8 <u>Tax Matters</u>. Except as otherwise expressly provided herein, this Agreement shall not govern tax matters (including any administrative, procedural, and related matters thereto), which shall be exclusively governed by tax law and the Transitionary Services Agreement if applicable.

Section 6.9 <u>Jurisdiction</u>. To the fullest extent permitted by Applicable Law, each of the parties hereto, for themselves and, to the fullest extent permitted by Applicable Law, for the other members of their respective Group, (a) agrees that any suit, action, or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be exclusively resolved by the Court of the State of Indiana.

Section 6.10 <u>WAIVER OF JURY TRIAL</u>. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO, FOR THEMSELVES AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, FOR THE OTHER MEMBERS OF THEIR RESPECTIVE GROUP, WAIVES ANY RIGHT SUCH PERSON MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY ACTION, SUIT, OR PROCEEDING SEEKING TO ENFORCE ANY PROVISIONS OF, OR BASED ON ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY.

Section 6.11 <u>Termination</u>. Notwithstanding any provision of this Agreement to the contrary, the Board of Directors of AREC may, in its sole discretion and without the approval of EMC or any other Person, at any time prior to the Distribution Time terminate this Agreement and/or abandon the Distribution, whether or not any Person has theretofore approved this Agreement and/or the Distribution. In the event this Agreement is terminated pursuant to the preceding sentence, this Agreement shall, to the fullest extent permitted by Applicable Law, forthwith become void and neither AREC nor EMC, nor any other member of their respective Group, nor any of their respective directors, officers, employees, or agents shall have any liability or further obligation to any other Person by reason of this Agreement.

Page 19 of 21

Section 6.12 <u>Severability</u>. If any one or more of the provisions contained in this Agreement should be declared invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained in this Agreement shall not, to the fullest extent permitted by Applicable Law, in any way be affected or impaired thereby so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a declaration, the parties shall modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner so that the transactions contemplated hereby are consummated as originally contemplated to the fullest extent possible.

Section 6.13 <u>Survival</u>. All covenants and agreements of the parties contained in this Agreement shall survive the Distribution Date indefinitely, unless a specific survival or other applicable period is expressly set forth herein.

Section 6.14 <u>Captions</u>. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.

Section 6.15 <u>Interpretation</u>. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall, to the fullest extent permitted by Applicable Law, be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of its authorship of any of the provisions of this Agreement.

Section 6.16 <u>Specific Performance</u>. Each party to this Agreement, for itself, and, to the fullest extent permitted by Applicable Law, for the other members of its Group, acknowledges and agrees that monetary damages for a breach or threatened breach of any of the provisions of this Agreement would be inadequate and irreparable harm would occur. In recognition of this fact, each party agrees, for itself, and, to the fullest extent permitted by Applicable Law, for the other members of its Group, that, if there is a breach or threatened breach, in addition to any damages, the nonbreaching party, without posting any bond, shall, to the fullest extent permitted by Applicable Law, be entitled to seek and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction, attachment, or any other equitable remedy which may then be available to obligate the breaching party (a) to perform its obligations under this Agreement or (b) if the breaching party is unable, for whatever reason, to perform those obligations, to take any other lawful actions as are necessary, advisable, or appropriate to give the other party the economic effect which comes as close as possible to the performance of those obligations (including transferring, or granting liens on, the assets of the breaching party to secure the performance by the breaching party of those obligations).

Section 6.17 <u>Performance</u>. Each party shall cause to be performed all actions, agreements, and obligations set forth herein to be performed by any other member of such party's Group.

*[Signature Page Follows]*

Page 20 of 21

**IN WITNESS WHEREOF** the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date first above written.

---

| | |
|:---|:---|
| **AMERICAN RESOURCES CORPORATION** | **AMERICAN RESOURCES CORPORATION** |
| By: | */s/ Mark C. Jensen* |
| Name: | Mark C. Jensen |
| Title: | Chief Executive Officer |
| **ELECTRIFIED MATERIALS CORPORATION** | **ELECTRIFIED MATERIALS CORPORATION** |
| By: | */s/ Christopher M. Dreska* |
| Name: | Christopher M. Dreska |
| Title: | Chief Executive Officer |

---

<br> <u>Page 21 of 21</u>

## Exhibit 2.2

**EXHIBIT 2.2**

**<u>MUTUAL SERVICES AND TRANSITION AGREEMENT</u>**

THIS MUTUAL SERVICES AND TRANSITION AGREEMENT (this "Agreement") dated as of the 10 day of December, 2024, but Effective January 1, 2025 (the "Effective Date"), is by and between Electrified Materials Corporation, an Indiana corporation ("SpinCo") and American Resources Corporation, a Florida corporation ("AREC"). Each of SpinCo and AREC may be referred to in this Agreement individually as a "Party" and collectively as the "Parties".

**W I T N E S S E T H:**

WHEREAS the board of directors of AREC has determined that it is in the best interests of AREC and its shareholders to create a new publicly traded company that will operate the SpinCo Business;

WHEREAS in furtherance of the foregoing, the board of directors of AREC has determined that it is appropriate and desirable to effect the transactions constituting the Reorganization, to transfer certain assets and liabilities to SpinCo, a majority owned Subsidiary of AREC, on the terms and subject to the conditions of this Agreement and subsequently to distribute AREC's entire interest in SpinCo, by way of a dividend of stock to be made to holders of AREC Common Stock;

WHEREAS in furtherance of the foregoing, it is appropriate and desirable to effect the Spin-Off, as more fully described in this Agreement;

WHEREAS AREC and SpinCo have prepared, and SpinCo has filed with the Commission, the Form 10, which includes the Information Statement and sets forth appropriate disclosure concerning SpinCo and the Distribution;

WHEREAS it is appropriate and desirable to set forth the principal corporate transactions required to effect the Spin-Off and certain other agreements that will govern certain matters relating to the Spin-Off and the relationship of AREC, SpinCo and their respective Subsidiaries following the Distribution.

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, the Parties, intending to be legally bound, hereby agree as follows:

1. <u>Term and Termination.</u> This Agreement shall be for an initial term of one (1) year (the "Initial Term") and shall be automatically renewed from year to year thereafter (each, a "Renewal Term") unless either party hereto notifies the other party in writing, at least thirty (30) days prior to the end of the Initial Term or any Renewal Term, of its desire to terminate the Agreement. Notwithstanding anything herein to the contrary, if either party shall breach any of the terms of this Agreement and said breach shall remain uncured for a period greater than fifteen (15) days after the breaching party receives notice of such breach from the non-breaching party, then the non-breaching party shall have the right to immediately terminate this Agreement by written notice to the breaching party.

2. <u>Services Defined.</u> Each party agrees to make its employees, subject to availability, perform, the services indicated below (the "Services"). It is expressly agreed and understood that for purposes of this Agreement, the Services undertaken by each party shall be in the capacity of an independent contractor and that any services performed pursuant to this Agreement may be accepted or rejected by either party at its sole discretion. A non-exclusive list of services which might be provided shall include:

(a) Technical and administrative support of the acquisition, leasing, maintenance, development, and divestiture of assets or properties;

(b) Professional engineering and geological services (including, surveying, mapping, estimates and royalty calculations) of real property;

(c) Financial or accounting services;

(d) Administrative, IT, legal, clerical, janitorial, security and warehouse management services; and

(e) Any other services that SpinCo may reasonably request from time to time which are (i) consistent with the provisions of this Agreement, (ii) generally performed by similar businesses, and (iii) consistent with good business practices.

3. <u>Materials and Supplies and Contracted Services.</u> AREC shall be responsible for the actual cost of any of materials and supplies used or consumed by it in the provision of the Services, without mark-up. AREC shall also be responsible for the actual cost of any contracted services that it utilizes in performance of the Services, without mark-up. If the allocation of the cost of any of these materials and supplies or contracted services is necessary because such costs are common to the Services and other operations of either Party, then the amount allocated to each Party shall be reasonably and equitably determined.

4. <u>Invoicing and Payment.</u> In addition to the costs described in Section 3 above for which a Party is responsible, each Party shall submit a statement to the other Party of the percentage of each of its employees' time utilized in performing Services for the other Party on a quarterly basis. Each Party shall pay the other Party a fee calculated as the annual base salary or compensation of each employee providing Services pursuant to this Agreement multiplied by the percentage of time for each such employee submitted in the quarterly statement. The Parties shall evaluate the costs associated with the provision of the Services on an annual basis or more frequently if warranted by a change in circumstances and if such evaluation results in a change in the cost of the Services, the requesting Party shall provide written notification of the change to the other Party, and the change in the cost of the Services shall go into effect the following calendar quarter after the provision of such notice. Each Party shall submit its written statement to the other Party quarterly for the cost of Services, as determined under this Section 4, as well as the costs described in Section 3 above for which the other Party is responsible. The invoiced Party shall pay the invoicing Party within thirty (30) days of receipt of such statement. Payment may be effected by netting each Party's invoice. If at any time during the Initial Term or Renewal Term, the Parties share the services of a common agent or contractor to manage their respective treasury and accounting functions, that agent or contractor shall be authorized to record the appropriate payable and receivable on the accounts maintained for the parties in lieu of the invoicing and payments required under this Agreement.

5. <u>Transition of Services.</u> To the extent reasonably possibly by the Parties, SpinCo agrees to promptly and diligently, but by no later than by the end of the Initial Term, transition all of the Services that are shared services under this Agreement to the contractual obligation or employment of SpinCo.

6. <u>Confidential Information.</u> The terms and conditions set forth in this Agreement are considered by both Parties to be confidential. Neither Party shall disclose any such information to any third party without the advance written consent of the other Party, except where such disclosure may be required by law or is necessary to assert a claim or defense in judicial or administrative proceedings, in which event the Party desiring to make the disclosure shall advise the other Party in advance in writing and shall cooperate to the extent practicable to minimize the disclosure of any such information.

7. <u>General</u>.

(a) <u>Notice</u>. Any notice, request or approval or other document required or permitted to be given under this Agreement shall be in writing unless otherwise provided herein; and shall be deemed to have been sufficiently given if delivered in person, transmitted by telegraph, or dispatched in the U.S. mails, postage prepaid, for mailing by first-class, certified or registered mail, return receipt requested, or by nationally recognized overnight courier service, addressed as follows:

If to <u>SpinCo</u>, addressed to:

Electrified Materials Corporation

12115 Visionary Way, Suite 174

Fishers IN 40638

Attention: Chief Executive Officer

If to <u>AREC</u>, addressed to:

American Resources Corp

PO Box 606

Fishers IN 40638

Attention: General Counsel

(b) <u>Assignment.</u> Neither Party may assign or transfer, by operation of law or otherwise, any of its rights or obligations under this Agreement to any third party without the prior written consent of the other party, except pursuant to an assignment of its interest hereunder to any affiliate. Any transfer of all or substantially all of a Party's business or assets, whether by merger, consolidation, sale of assets, sale of stock or otherwise, without seeking the prior written consent of the other Party, will be null and void.

(c) <u>Arbitration.</u> Any controversies or claims arising out of or relating to this Agreement or the breach hereof which are not resolved by negotiations between the Parties shall be resolved by arbitration in accordance with Commercial Arbitration Rules of the American Arbitration Association; provided, however, the arbitrator selected shall be a person knowledgeable of the subject matter of the arbitration. Judgment may be entered on the award in any court having jurisdiction. Either Party may determine, in its sole discretion that negotiations, or continued negotiations, would be unavailing and may then proceed to demand arbitration. Unless otherwise agreed in writing by the Parties, performance of their respective obligations under this Agreement shall be continued in full by the Parties during the arbitration process. The Parties stipulate that this Agreement constitutes a contract evidencing a transaction involving commerce and that this Section is enforceable under the Federal Arbitration Act (9 U.S.C. §§ 1 et seq).

(d) <u>Liability and Indemnification</u>. As between the Parties hereto, neither Party shall be liable to the other for the death of or injury to any employee of the other, or loss of or damage to the property of the other, unless caused solely by its own negligence or willful action. Each Party shall indemnify the other against any liability for any loss, damage, or injury suffered by any third party and arising out of its performance of this Agreement where such loss is caused solely by its own negligence or willful action, and the parties shall bear in proportion to its fault, as determined by final judgment or arbitration award, liability for such loss, damage or injury where caused by their joint negligence or willful actions; provided, however, neither Party shall be liable for punitive damages to the other Party, except to the extent awarded to a third party. The Parties acknowledge that they are Parties to various leases, subleases and other agreements, and that this provision shall not supersede or modify any of such separate agreements.

(e) <u>Governing Law.</u> All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Indiana, without giving effect to any choice of law provisions thereof.

(f) <u>No Third-Party Beneficiaries</u>. This Agreement is not intended to create any third-party beneficiary rights in any person not a party to this Agreement, regardless of whether any other person may be named herein.

(g) <u>Severability.</u> The provisions of this Agreement are severable and if any one or more of such provisions are determined to be void or unenforceable, in whole or in part, the remaining provisions of this Agreement shall nevertheless be binding and enforceable.

(h) <u>Amendments.</u> No amendment or modification of this Agreement shall be binding unless made by a written instrument of equal formality with this Agreement and signed by both parties.

(i) <u>Entire Agreement.</u> This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, supersedes all prior negotiations, understandings and writings between the Parties as to the matters covered herein.

**IN WITNESS WHEREOF**, the Parties hereto have executed this Agreement effective as of the Effective Date.

---

| | |
|:---|:---|
| **SPINCO:** | **SPINCO:** |
| **ELECTRIFIED MATERIALS CORPORATION** | **ELECTRIFIED MATERIALS CORPORATION** |
| */s/ Christopher M. Dreska* | */s/ Christopher M. Dreska* |
| By: | Christopher M. Dreska |
| Its: | Chief Executive Officer |
| **AREC:** | **AREC:** |
| **AMERICAN RESOURCES CORPORATION** | **AMERICAN RESOURCES CORPORATION** |
| */s/ Mark C. Jensen* | */s/ Mark C. Jensen* |
| By: | Mark C. Jensen |
| Its: | Chief Financial Officer |

---

## Exhibit 2.3

**EXHIBIT 2.3**

**<u>SUPPLY AGREEMENT</u>**

THIS SUPPLY AGREEMENT ("Agreement") is made and entered into this 1st day of January, 2024 (the "Effective Date"), by and between REELEMENT TECHNOLOGIES CORPORATION, an Indiana corporation ("Buyer"), and AMERICAN METALS LLC, an Indiana limited liability company ("Seller").

**<u>WITNESSETH:</u>**

WHEREAS, Buyer desires to have a source of supply of appropriate and useful feedstock processed by Seller for its operations (referred herein as "Product"); and

WHEREAS, Seller is willing and able to supply Buyer with the Product from its operations and/or facilities located in Noblesville, Indiana and Marion, Indiana, as well as other locations of the Seller as they are developed, pursuant to the terms and conditions herein set forth;

NOW, THEREFORE, in consideration of the terms, conditions, covenants and provisions contained in this Agreement, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. <u>Term and Termination</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **<u>Term</u>**. This Agreement shall become effective on the "Effective Date" and continue for Five (5) years (the "Initial Term"), unless earlier terminated pursuant to Section 1(b). The Initial Term will be automatically extended for additional Twelve (12) month periods thereafter (each, an "Extended Term", and combined with the Initial Term, the "Term") unless written notice is provided by one party to the other at least Ninety (90) days prior to the expiration of an Extended Term of the party's intent not to extend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **<u>Termination</u>**. In addition to the provisions in Section 1(a), either party shall have the right to terminate this Agreement under any of the following conditions:

i. upon the occurrence of a material breach by the other party of this Agreement which is not waived in writing by the non-defaulting party; provided that, the non-defaulting party shall give written notice to the defaulting party specifying the term or condition of such alleged breach and the defaulting party shall have a period of thirty (30) days to cure the same (fifteen (15) days in respect to payment defaults); or

ii. in the event the other party is declared insolvent or bankrupt or makes an assignment for the benefit of creditors, or in the event a receiver is appointed or any proceeding is demanded by, for or against the other under any provision of the Federal Bankruptcy Act or any amendment thereto.

If the defaulting party cures its performance within the applicable notice period, the non-defaulting party shall resume performance of its obligations and the termination notice shall be void and this Agreement shall continue; otherwise, this Agreement shall terminate in accordance with such notice. No termination of this Agreement shall relieve the parties of any liability or obligation arising under this Agreement that has accrued prior to the effective date of such termination. Upon termination of this Agreement for any reason, neither party shall have any further rights to use any of the Confidential Information, as defined in Section 8 of this Agreement, of the other party.

Page 1 of 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Purchase and Sale; Quantity; Scheduling.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **<u>Supply & Specifications</u>**. Buyer shall have the right of first refusal to purchase any and all Product produced by Seller for the price identified in Section 2(b). On the first day of each calendar month during the Term, Seller will provide Buyer the tonnage and specifications of Product set forth in Exhibit A that is available to sell to the Buyer. Buyer shall have up to ten (10) days to provide Seller with written notice of any quantity of Product the Buyer will buy for that calendar month, and Seller agrees to sell said Product to Buyer. For purposes of this Agreement, all references to "ton" shall mean a metric tonne equivalent to 2,205 pounds. Seller represents the specifications of Product as set forth in Exhibit A (the "Specifications").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **<u>Price</u>**. All quantities of the Products sold to Buyer under this Agreement shall be sold to Buyer at prices set forth on Exhibit B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **<u>Title, Risk of Loss and Delivery</u>**. All of the Products sold by Seller to Buyer shall be sold FOB Incoterms 2020 the Seller's facilities located in Noblesville, Indiana or Marion, Indiana, or at a facility of the Seller at mutual agreement between the Buyer and the Seller (each, a "Facility"). Seller will arrange freight transportation, and all appropriate risk insurance coverage for all shipments to the Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **<u>Terms of Payment</u>**. Payment for the Product by Buyer shall be net 30 days from the date of Seller's invoice delivered to Buyer for all product delivered to the Facility that conforms to this Agreement. All payment will be in United States Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. **<u>Additional Rights</u>**. Should Buyer agree to source or purchase from a third-party, feedstock that Seller determines, in its sole discretion, that it can process for the benefit of the Buyer utilizing the Seller's Facility (ies) (the "Third-Party Feedstock"), then Seller shall have the right of first refusal to process the Third Party Feedstock for, and on behalf of, the Seller for the prices set forth on Exhibit B. This right of first refusal shall expire 15 days after prompt notification from Buyer to Seller of the availability of Third-Party Feedstock in the possession or control of the Buyer. Furthermore, all Product of the Seller that Buyer determines, in its sole discretion, that is useful for Buyer's business, will be subject to the Supply rights under Section 2(a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Packaging.</u>** Seller agrees to package all Product to be delivered to Buyer pursuant to this Agreement in durable packaging that is compliance with all United States federal and state regulations for transportation of this commodity and which minimizes the likelihood of the packaging being damaged and resulting in spills or loss of Product during shipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. <u>Quality</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **<u>Specifications.</u>** All Product sold hereunder to Buyer shall be produced in accordance with and conform to the Specifications, which Specifications may not be altered without the mutual agreement in writing of Seller and Buyer. Seller shall notify Buyer promptly after Seller becomes aware of any failure of the Product to meet the Specifications in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **<u>Warranty</u>**. Seller warrants to Buyer that the Product (i) will conform to the Specifications; and (ii) shall be free and clear of any and all liens and encumbrances of any nature. THE ABOVE WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, ALL OF WHICH ARE HEREBY EXPRESSLY DISCLAIMED BY SELLER AND WAIVED BY BUYER. EXCEPT WITH RESPECT TO SELLER'S OBLIGATIONS UNDER THIS SECTION 4(b) AND SECTION 5(b) BELOW, BUYER ASSUMES ALL RISK WHATSOEVER AS TO THE RESULT OF THE USE OF THE PRODUCT PURCHASED, WHETHER USED SINGLY OR IN A COMBINATION WITH OTHER SUBSTANCES. If Buyer determines that any Products delivered hereunder fail to substantially conform to the Specifications, Buyer, as its sole remedy or claim hereunder (except with respect to Seller's indemnification obligations with respect to third-party claims under Section 5(a) below), shall provide written notice of such nonconformity to be received by Seller within Fifteen (15) days after invoice date, after which Seller shall, upon confirmation of such nonconformance, at its option, either replace such Products at no cost whatsoever to Buyer, or provide a credit or refund (as appropriate) to Buyer equal to the invoiced purchased price plus associated freight cost of such Products.

Page 2 of 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **<u>Compliance with Laws</u>**. All aspects of the Facility (and any other location used by Seller to produce Product as provided under this Agreement) shall at all times comply in all material respects with all applicable laws, rules and regulations, and Seller shall keep and maintain the Facilty, such other locations and the machinery and equipment necessary to manufacture, produce and package the Product clean and in good operating condition during the Term. Seller shall promptly advise Buyer if any agent or representative of any country, province, federal, state or municipal agent or authority makes any written report, recommendation or citation with respect to the processes, procedures, practices or equipment used to manufacture, produce and/or package the Product, and shall thereafter furnish to Buyer upon request a copy of any such written report, recommendation, citation or other written information provided to Seller by such agent or representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **<u>Sanctions</u>**. Seller represents that it is not a "Sanctioned Person," meaning any individual or entity: (i) named on a governmental denied party or restricted list, including but not limited to: the Office of Foreign Assets Control ("OFAC") list of Specially Designated Nationals and Blocked Persons ("SDN List"), the OFAC Sectoral Sanctions Identifications List("SSI List"), and the sanctions lists under any other Sanctions Laws; (ii) organized under the laws of, ordinarily resident in, or physically located in a jurisdiction subject to comprehensive sanctions administered by OFAC (currently Cuba, Iran, North Korea, Syria, and the Crimea, Donetsk People's Republic, or Luhansk People's Republic regions of Ukraine/Russia) ("Sanctioned Jurisdictions"); and/or (iii) owned or controlled, directly or indirectly, 50% or more in the aggregate by one or more of any of the foregoing.

Relating to this Agreement, each party is in compliance with and will continue to comply with all economic Sanctions Laws administered by OFAC, other U.S. regulatory agencies, the European Union and its Member States, the United Kingdom, and the United Nations ("Sanctions Laws"). Neither party will involve any Sanctioned Persons in any capacity, directly or indirectly, in any part of this transaction and performance under this transaction. Neither party will take any action that would cause the other Party to be in violation of Sanctions Laws.

Either Party's failure to comply with this provision will be deemed a material breach of the Agreement, and the breaching Party will notify the non-breaching Party immediately if it violates, or reasonably believes that it will violate, any terms of this provision. Each Party agrees that the other Party may take any and all actions required to ensure full compliance with all Sanctions Laws without such Party incurring any liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. **<u>Sampling and Inspection</u>**. Prior to a shipment of Product leaving the Facility, (i) Seller will cause it to be weighed and will cause a representative sample of the entire load to be taken in accordance with the sampling and inspection methods described in Exhibit A; and (ii) Seller shall provide to Buyer a Certificate of Analysis ("COA"), completed in accordance with the Specifications, with every shipment of Product hereunder, it being agreed and understood by the parties that COAs shall be prepared on the basis of unit load lot analyses. Seller shall require written confirmation from a representative of the Buyer (such written confirmation may be sufficient via email) of acceptance of the shipment of Product for which the COA has been prepared, prior to the shipment of Product leaving the Facility.

Page 3 of 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **<u>Audits</u>**. In order to confirm that Seller is complying with the terms of this Agreement in the production of Product, Seller agrees to permit Buyer or Buyer's representatives, upon reasonable notice to Seller, to inspect the Facility where Product is produced. If any such inspection reveals that the processes, procedures, or practices used by Seller to produce Product fail to conform to the Specifications or warranties made herein, Seller shall, upon demand by Buyer, immediately take all reasonable corrective measures and Buyer may return to the Facility as many times as is reasonably necessary to determine that the nonconforming activities have been corrected and are not recurring. Buyer shall be under no obligation to undertake any such inspections and, whether or not Buyer inspects the Product or the Facility, it shall not affect or release Seller from any obligations of Seller with respect to the Product nor shall Seller be affected or released either by Buyer's acceptance of delivery of Product or by any inspection thereof or by payment for it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. <u>Indemnification.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Seller agrees to defend, indemnify and hold harmless Buyer, its affiliates and subsidiaries and all of their officers, directors, employees and agents (collectively, "Buyer Indemnified Parties") from and against any and all liability, loss, damage, fine, penalty, cost or expense (including reasonable attorneys' fees) (collectively, "Damages") by reason of any allegation, claim, action or suit made or instituted by any third party against any Buyer Indemnified Party, whether for death, personal injury, property damage or otherwise, relating to or arising out of (i) the Product's failure to meet the Specifications; (ii) any infringement of any claims of any patent by reason of the production, manufacture, sale and purchase of the Product; (iii) any breach by Seller of any term or condition contained in this Agreement; or (iv) the negligent acts, omissions, or willful misconduct of Seller in performing its obligations under this Agreement; provided, however, that the foregoing indemnity shall not apply to any such Damages to the extent covered by Buyer's indemnification obligations under Section 5(b) or otherwise caused by acts or omissions of any Buyer Indemnified Party constituting negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Buyer agrees to defend, indemnify and hold harmless Seller, its affiliates and subsidiaries and all of their officers, directors, employees and agents (collectively, "Seller Indemnified Parties") from and against any and all Damages by reason of any allegation, claim, action or suit made or instituted by any third party against any Seller Indemnified Party, whether for death, personal injury, property damage or otherwise, relating to or arising out of (i) the failure of any products of Buyer that incorporate the Product (the "Buyer Products") to meet any required regulatory approvals under applicable federal, provincial, state or local laws, except to the extent Seller's failure to fulfill its obligations to Buyer under Section 4(b) of this Agreement was the proximate cause of such Damages; (ii) the failure of any Buyer Products to comply with all warning and other requirements under applicable product labelling, environmental, health or safety laws; (iii) any infringement of the claims of any patent by reason of the production, manufacture, sale and purchase of any Buyer Products; (iv) any breach by Buyer of any term or condition contained in this Agreement; or (v) the negligent acts, omissions, or willful misconduct of Buyer in performing its obligations under this Agreement; provided, however, that the foregoing indemnity shall not apply to any such Damages to the extent covered by Seller's indemnification obligations under Section 5(a) or otherwise caused by acts or omissions of any Seller Indemnified Party constituting negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The indemnification obligation under this Section in any and all claims against the indemnifying party by the indemnified party, or any employee, subcontractor, agent or affiliate of the indemnified party, shall not be limited by the amount or type of damages, compensation or benefits payable by or for the indemnifying party, any subcontractor, or anyone directly or indirectly employed by any of them under workers' compensation acts, disability benefit acts, or other employee benefit acts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. For purposes of this Section 5, Seller shall not be considered an affiliate or subsidiary of Buyer, and Buyer shall not be considered an affiliate of Seller.

Page 4 of 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Consequential Damages</u>**. No claim shall be made or allowed by or against either party for special, incidental, or consequential damages whether based upon negligence, breach of contract, breach of warranty or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Product Traceability</u>**. Seller represents and warrants to Buyer that it shall maintain all of its production and shipment records for a period of not less than two (2) years following the manufacture of Product hereunder, and shall permit Buyer to inspect and copy (at Buyer's expense) any of such records during normal business hours and upon reasonable prior notice to Seller. In addition, Seller shall retain Product samples taken from shipped Product for a period of not less than twelve (12) months following date of shipment. In the event that Buyer determines to recall the Product or any other product that incorporates the Product, Seller agrees to reasonably cooperate with Buyer at Buyer's expense (except to the extent otherwise covered under Seller's warranty and indemnification obligations under Section 4(b) and Section 5(a), respectively) in order to facilitate any such recall.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Confidentiality</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Seller and Buyer may have an opportunity to receive, directly or indirectly, Confidential Information, as defined below, of the other party. Seller and Buyer, each as a receiving party, agree to keep all Confidential Information supplied to and/or learned by it in the strictest confidence. For purposes of this Agreement, "Confidential Information" shall mean any commercially sensitive information in its broadest context, and may include, by way of example but without limitation, products, specifications, formulae, equipment, business strategies, customer lists, know-how, drawings, pricing information, inventions, ideas, and other information, or its potential use, that is owned by or in possession of the disclosing party. Confidential Information shall not include that which: (a) is in the public domain prior to disclosure to the receiving party; (b) becomes part of the public domain, by publication or otherwise, through no unauthorized act or omission on the part of the receiving party; or (c) is lawfully in the receiving party's possession prior to disclosure hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Proper and appropriate steps shall be taken and maintained by the receiving party to protect Confidential Information. Dissemination of Confidential Information shall be limited to employees or agents that are directly involved with performance under this Agreement, and even then, only to such extent as is necessary and essential. The receiving party shall inform its employees and agents of the confidential nature of the information disclosed hereunder and cause all such employees and agents to abide by the terms of these provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The receiving party shall not disclose Confidential Information to any unauthorized party without prior express written consent of the disclosing party or unless required by law or court order. If the receiving party is required bylaw or court order to disclose Confidential Information, the receiving party shall provide the disclosing party with prompt written notice of such requirement so that an appropriate protective order or other relief may be sought. The obligations imposed by this Agreement, including but not limited to non-disclosure and non-use, however, shall endure so long as the Confidential Information does not become part of the public domain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Confidential Information will be used only in connection with performance of this Agreement; no other use of Confidential Information will be made by receiving party, it being recognized that disclosing party has reserved all rights to Confidential Information not expressly granted herein. All documents containing Confidential Information and provided by disclosing party shall remain the property of the disclosing party, and all such documents, and copies thereof, shall be returned or destroyed upon the request of the disclosing party. Documents prepared by the receiving party using Confidential Information, or derived therefrom, shall be destroyed upon request of the disclosing party, confirmation of which shall be provided in writing. However, the receiving party may keep one copy of any document requested to be returned or destroyed in the files of its legal department or outside counsel for record purposes only.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. <u>Miscellaneous.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **<u>Assignment</u>**. Neither party may assign any of its rights hereunder, or effect an assumption of its obligations hereunder, without the prior written consent of the other party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **<u>Waiver</u>**. The failure of either party to insist in any one or more instances upon performance of any terms or conditions of this Agreement shall not be construed as a waiver of future performance of any such term, covenant or condition and the obligations of the other party with respect thereto shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **<u>Notice</u>**. All notices to be provided hereunder shall be in writing and shall be deemed given (i) if delivered personally, effective when delivered, (ii) if delivered by express delivery service, effective when delivered, (iii) if mailed by registered or certified mail, return receipt requested, effective five (5) days after mailing, or (iv) if delivered via facsimile, effective on the date of transmission (provided receipt is confirmed), which notice shall be delivered to the following address or to such other address as the party to receive notice has so designated by like notice:

**<u>If to Buyer:</u>**

ReElement Technologies Corporation

12115 Visionary Way, Suite 174

Fishers, IN 46038

Attn: Chief Executive Officer

Email: mcj@reelementtech.com

**<u>If to Seller:</u>**

American Metals LLC

3611 South Adams Street, Suite C

Marion, IN 46953

Attn: Manager

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **<u>Survival</u>**. The provisions of Section 4(b) (Warranty), Section 5 (Indemnification), Section 8 (Confidentiality) and Section 9 (Miscellaneous) of this Agreement shall survive termination or expiration of this Agreement, provided Buyer shall have no further obligation to make any payments not already accrued hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. **<u>Severability</u>**. All agreements and covenants contained herein are severable, and in the event any of them shall be held to be invalid by any competent court or arbitrator, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **<u>Force Majeure</u>**. Neither party shall be liable to the other party in any respect for the failure or delay in the fulfillment or performance of this contract, including but not limited to the obligation to make or accept deliveries, if performance is hindered or prevented, directly or indirectly, by war, riots, embargo, national emergency, inadequate transportation facilities, plant breakdowns, inability to secure fuel, power, material or labor, fire, flood or windstorm or other acts of God, strikes, lockouts or other labor disturbances (whether among employees of Buyer, Seller, or others); orders or acts of any government, governmental agency or governmental authority; or any other cause of like or different kind beyond either party's reasonable control. However, should either party be rendered unable, because of the occurrence of any of the foregoing events, to fulfill its obligations under this Agreement for a period exceeding sixty (60) days, the other party may terminate this Agreement upon written notice.

Page 6 of 10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. **<u>Governing Law</u>**. This Agreement shall be construed and enforced in accordance with the internal laws of the State of Indiana, excluding the principles of conflicts of law thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. **<u>Dispute Resolution</u>**

i. Any controversy or claim arising out of or relating to either party's performance under this Agreement, or the interpretation, validity or enforceability of this Agreement, will, upon the written request of either party, be referred to designated senior management representatives of Buyer and Seller for resolution. Such representatives will promptly meet and, in good faith, attempt to resolve the controversies, claims or issues referred to them.

ii. If such representatives do not resolve the controversy or claim referred to them within thirty (30) days after reference of that matter, then either party may seek any remedy available under law, including bringing an action for relief in any court having appropriate jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i. <u>Submission to Jurisdiction.</u>**

i. Each party hereto irrevocably agrees that the courts of the State of Indiana or the United States of America for the District of Indiana located in Marion County are to have jurisdiction to settle any claims, differences, disputes or enforcement of rights for which injunctive relief is permitted by this Agreement.

ii. Each party hereto irrevocably waives any objection it may now or hereafter have to the laying of the venue of any proceedings in any court referred to in Section 11(i)(i) and any claim that any proceedings brought in any such court have been brought in an inconvenient forum and further irrevocably agrees that a judgment in any proceedings brought in a court of the State of Indiana or of the United States of America for the District of Indiana shall be conclusive and binding upon the parties hereto and may be enforced in the courts of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**j. <u>Counterparts</u>**. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which shall be considered one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**k. <u>Section Headings</u>**. The Article and Section headings contained in this Agreement are for convenience of reference only and shall not in any way alter or affect or be deemed to alter or affect the meaning or in any way affect the interpretation of any provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**l. <u>Entire Agreement</u>**. This Agreement, together with the Exhibits hereto, sets forth the entire understanding between the parties and supersedes all other prior agreements, written or oral, between the parties with respect to the subject matter of this Agreement. There are no understandings, representations or warranties of any kind, express or implied, not expressly set forth in this Agreement. No modification of this Agreement will be effective unless in writing and signed by both parties.

Page 7 of 10

**IN WITNESS WHEREOF,** the parties hereto have caused this Agreement to be executed by their officers thereunto duly authorized as of the date first written above.

---

| | |
|:---|:---|
| **BUYER** | **BUYER** |
| **REELEMENT TECHNOLOGIES CORPORATION** | **REELEMENT TECHNOLOGIES CORPORATION** |
| By: | */s/ Mark Jensen* |
| Name:  | Mark Jensen |
| Title:  |  |
| **SELLER** | **SELLER** |
| **Electrified Materials Corporation** | **Electrified Materials Corporation** |
| By: | */s/ Christopher M. Dreska* |
| Name:  | Christopher M. Dreska |
| Title:  |  |

---

Page 8 of 10

**Exhibit A: Quantity and Specifications**

Sale Month ____________________, 202___

---

| | | |
|:---|:---|:---|
| **Material**  | **Quantity** | **Element(s)** |

---

Note: Quality and Specifications of any above-listed materials will be provided through use of third-party lab analysis.

*Initials*

Buyer: _________________

Seller: _________________

Page 9 of 10

**Exhibit B: Price**

All Product sold under this Agreement shall be at price of Seller's Operating Cost plus 20.0%.

"Operating Cost" shall be defined as the direct operating costs borne by the Seller to product the Product to the Quantity and Specifications in Exhibit A.

*Initials*

Buyer: _________________

Seller: _________________

<br> <u>Page 10 of 10</u>

## Exhibit 3.1

**EXHIBIT 3.1**

![](ems_ex31img1.jpg)

![](ems_ex31img2.jpg)

![](ems_ex31img3.jpg)

**APPROVED AND FILED** <br> **DIEGO MORALES**<br> **INDIANA SECRETARY OF STATE**<br> **12/09/2024 01:41 PM**<br>

**ARTICLES OF INCORPORATION OF ELECTRIFIED MATERIALS CORPORATION**

Electrified Materials Corporation (the "Corporation"), a corporation organized and existing under and by virtue of the provisions of the 2023 Indiana Code, Title 23, as amended (the "Corporation Law"), desiring to give notice of corporate action effectuating the Articles of Incorporation, sets forth the following:

**<u>ARTICLE I</u>**

**<u>NAME AND ADDRESS OF CORPORATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Name and Address</u>. The name of the Corporation is Electrified Materials Corporation. The initial office of the Corporation is 12115 Visionary Way, Suite 174, Fishers, Indiana 46038. The Registered Agent at that office is Edward Smid.

The Signatory represents that the Registered Agent named in Article I has consented to the appointment of Registered Agent.

**<u>ARTICLE II</u>**

**<u>PURPOSE AND POWERS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Purpose of the Corporation</u>. The purposes for which the Corporation is formed is for the purpose of conducting business as a corporation under the Corporation Law and to engage in any and all lawful business for which corporations may now or hereafter be incorporated under the Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Powers of the Corporation</u>. The Corporation shall have (a) all powers now or hereafter authorized by or vested in the corporations pursuant to the provisions of the Corporation Law, (b) all powers now or hereafter vested in corporation by common law or any other statue or act, and (c) all powers authorized by or vested in the Corporation by the provision of these Articles of Incorporation or by the provisions of its By-Laws as from time to time in effect.

**<u>ARTICLE III</u>**

**<u>TERM OF EXISTENCE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Term of Existence</u>. The period during which the Corporation shall continue is perpetual.

Page 1 of 4

**APPROVED AND FILED** <br> **DIEGO MORALES**<br> **INDIANA SECRETARY OF STATE**<br> **12/09/2024 01:41 PM**<br>

**<u>ARTICLE IV</u>**

**<u>SHARES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Authorized Classes and Number of Shares</u>. The total number of shares of all classes of capital stock that the Corporation shall have authority to issue is 1,010,000,000, of which 1,000,000,000 shares shall be Common Stock, $0.0001 par value per share (the "Common Stock"), and 10,000,000 shares shall be Preferred Stock, $0.0001 par value per share (the "Preferred Stock"). The number of authorized shares of Common Stock or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the then outstanding shares of Common Stock, without a vote of the holders of the Preferred Stock, or of any series thereof, unless a vote of any such holders of Preferred Stock is required pursuant to the provisions established by the Board of Directors in the resolution or resolutions providing for the issue of such Preferred Stock, and if such holders of such Preferred Stock are so entitled to vote thereon, then the only stockholder approval required shall be the affirmative vote of a majority of the voting power of the Common Stock and the Preferred Stock so entitled to vote, voting together as a single class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Preferred Stock</u>. The Preferred Stock may be issued from time to time in one or more series, as determined by the Board of Directors. The Board of Directors is expressly authorized to provide for the issue, in one or more series, of all or any of the remaining shares of the Preferred Stock and to establish for each such series the number of its shares, the voting powers, full or limited, of the shares of such series, or that such shares shall have no voting powers, and the designations, preferences and relative, participating, optional or other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof as shall be stated and expressed in the resolution or resolutions adopted by the Board of Directors providing for the issue of such series (a "Preferred Stock Designation"), all to the fullest extent now or hereafter permitted by Corporation Law. The Board of Directors is also expressly authorized (unless forbidden in the applicable Preferred Stock Designation) to increase or decrease (but not below the number of shares thereof then outstanding) the number of shares of any series subsequent to the issuance of shares of that series. Incase the number of shares of any such series shall be so decreased, the shares constituting such decrease shall resume the status they had prior to the adoption of the resolution originally fixing the number of shares of such series. Except as otherwise expressly provided in any Preferred Stock Designation, (a) any new series of Preferred Stock may be designated, fixed and determined as provided herein by the Board of Directors without approval of the holders of Common Stock or the holders of Preferred Stock, or any series thereof, and (b) any such new series may have powers, preferences and rights, including, without limitation, voting rights, dividend rights, liquidation rights, redemption rights and conversion rights, senior to, junior to or *pari passu* with the rights of the Common Stock, the Preferred Stock or any future class or series of Preferred Stock or Common Stock

**<u>ARTICLE V</u>**

**<u>DIRECTORS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Number.</u> The number of Directors shall be fixed in accordance with procedures established by the By-Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Vacancies</u>. Vacancies occurring in the Board of Directors shall be filled in the manner provided in the By-Laws, or, if the By-Laws do not provide for the filling of vacancies, in the manner provided by the Corporation Law. The By-Laws may also provide that in certain circumstances specified therein, vacancies occurring in the Board of Directors may be filled by vote of the shareholders at a special meeting called for that purpose or at the next annual meeting of shareholders.

Page 2 of 4

**APPROVED AND FILED** <br> **DIEGO MORALES**<br> **INDIANA SECRETARY OF STATE**<br> **12/09/2024 01:41 PM**<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Removal of Directors</u>. Any or all of the members of the Board of Director may be removed, with or without cause, only at a meeting of the shareholders called expressly for that purpose, by the affirmative vote of the holders of outstanding shares representing at least a majority of all the votes then entitled to be cast at an election of Directors.

**<u>ARTICLE VI</u>**

**<u>BY-LAWS OF THE CORPORATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>By-Laws.</u> Except as otherwise expressly provided in these Articles of Incorporation or by the Corporation Law, the By-Laws of the Corporation may be amended or repealed by either (a) the Board of Directors by the affirmative vote of a majority of the entire number of Directors at the time, or (b) the affirmative vote, at a meeting of the shareholders of the Corporation, of at least a majority of the votes entitled to be cast by the holders of the outstanding shares of all classes of stock of the Corporation entitled to vote generally in the election of directors, considered for the purposes of this Section 6.1 as a single voting group, provided, however, that no By-Law may be adopted that is inconsistent with the Corporation Law.

**<u>ARTICLE VII OTHER PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Amendment or Repeal</u>. Except as otherwise expressly provided for in these Articles of Incorporation, the Corporation shall be deemed, for all purposes, to have reserved the right to amend, alter, change, or repeal any provision contained in these Articles of Incorporation to the extent and in the manner now or hereafter permitted or prescribed by statute, and all rights herein conferred upon shareholders are granted subject to such reservation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Tax Classification</u>. It is the specific intent that the Corporation be classified as a C-Corporation for federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Captions.</u> The captions of the Articles and Sections of these Articles of Incorporation have been inserted for convenience of reference only and no not in any way define, limit, construe, or describe the scope or intent of any Article or Section hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Nonliability of Shareholders</u>. Shareholders of the Corporation are not personally liable for the acts or debts of the Corporation, nor is private property of shareholders subject to the payment of corporate debts.

Page 3 of 4

**APPROVED AND FILED** <br> **DIEGO MORALES**<br> **INDIANA SECRETARY OF STATE**<br> **12/09/2024 01:41 PM**<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Indemnification.</u> To the fullest extent permitted by the Corporation Law, the Corporation shall indemnify, or advance expenses to, any person made, or threatened to be made, a party to any action, suit or proceeding by reason of the fact that such person is or was a director or officer of the Corporation, provided that said officer or director's actions were not the result of willful negligence or criminal activity, and provided, further, that said officer or director's action(s) requiring indemnification under this Section 7.4 were conducted at the time the person was and officer or director of the Corporation. Unless otherwise expressly prohibited by the Corporation Law, and except as otherwise provided in the previous sentence, the Board of Directors of the Corporation shall have the sole and exclusive discretion, on such terms and conditions as it shall determine, to indemnify, or advance expenses to, any person made, or threatened to be made, a party to any action, suit, or proceeding by reason of the fact such person is or was an officer, employee or agent of the Corporation as an officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise. No person falling within the purview of this paragraph may apply for indemnification or advancement of expenses to any court of competent jurisdiction.

IN WITNESS WHEREOF, the undersigned, desiring to execute these Articles of Incorporation pursuant to the provisions of the Corporate Law executes these Articles of Incorporation and hereby verifies, subject to the penalties of perjury, that the statements contained herein are true.

---

| | |
|:---|:---|
| Executed this 9 day of December, 2024. <br>**ELECTRIFIED MATERIALS CORPORATION** | Executed this 9 day of December, 2024. <br>**ELECTRIFIED MATERIALS CORPORATION** |
| By: | */s/ Mark C. Jensen* |
|  | Name: Mark C. Jensen <br> Title: Chairman & CEO |

---

<br> <u>Page 4 of 4</u>

## Exhibit 3.2

**EXHIBIT 3.2**

**ARTICLES OF INCORPORATION OF**

 **ELECTRIFIED MATERIALS CORPORATION**

Electrified Materials Corporation(the "Corporation"), a corporation organized and existing under and by virtue of the provisions of the 2023 Indiana Code, Title 23, as amended (the "Corporation Law"), desiring to give notice of corporate action effectuating the Articles of Incorporation, sets forth the following:

**<u>ARTICLE I</u>**

**<u>NAME AND ADDRESS OF CORPORATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Name and Address</u>. The name of the Corporation is Electrified Materials Corporation. The initial office of the Corporation is 12115 Visionary Way, Suite 174, Fishers, Indiana 46038. The Registered Agent at that office is Edward Smid.

The Signatory represents that the Registered Agent named in Article I has consented to the appointment of Registered Agent.

**<u>ARTICLE II</u>**

 **<u>PURPOSE AND POWERS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Purpose of the Corporation</u>. The purposes for which the Corporation is formed is for the purpose of conducting business as a corporation under the Corporation Law and to engage in any and all lawful business for which corporations may now or hereafter be incorporated under the Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Powers of the Corporation</u>. The Corporation shall have (a) all powers now or hereafter authorized by or vested in the corporations pursuant to the provisions of the Corporation Law, (b) all powers now or hereafter vested in corporation by common law or any other statue or act, and (c) all powers authorized by or vested in the Corporation by the provision of these Articles of Incorporation or by the provisions of its By-Laws as from time to time in effect.

**<u>ARTICLE III</u>** 

**<u>TERM OF EXISTENCE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Term of Existence</u>. The period during which the Corporation shall continue is perpetual.

**<u>ARTICLE IV</u>** 

**<u>SHARES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Authorized Classes and Number of Shares.</u> The total number of shares of all classes of capital stock that the Corporation shall have authority to issue is 1,010,000,000, of which 1,000,000,000 shares shall be Common Stock, $0.0001 par value per share (the "Common Stock"), and 10,000,000 shares shall be Preferred Stock, $0.0001 par value per share (the "Preferred Stock"). The number of authorized shares of Common Stock or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the then outstanding shares of Common Stock, without a vote of the holders of the Preferred Stock, or of any series thereof, unless a vote of any such holders of Preferred Stock is required pursuant to the provisions established by the Board of Directors in the resolution or resolutions providing for the issue of such Preferred Stock, and if such holders of such Preferred Stock are so entitled to vote thereon, then the only stockholder approval required shall be the affirmative vote of a majority of the voting power of the Common Stock and the Preferred Stock so entitled to vote, voting together as a single class.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Preferred Stock</u>. The Preferred Stock may be issued from time to time in one or more series, as determined by the Board of Directors. The Board of Directors is expressly authorized to provide for the issue, in one or more series, of all or any of the remaining shares of the Preferred Stock and to establish for each such series the number of its shares, the voting powers, full or limited, of the shares of such series, or that such shares shall have no voting powers, and the designations, preferences and relative, participating, optional or other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof as shall be stated and expressed in the resolution or resolutions adopted by the Board of Directors providing for the issue of such series (a "Preferred Stock Designation"), all to the fullest extent now or hereafter permitted by Corporation Law. The Board of Directors is also expressly authorized (unless forbidden in the applicable Preferred Stock Designation) to increase or decrease (but not below the number of shares thereof then outstanding) the number of shares of any series subsequent to the issuance of shares of that series. In case the number of shares of any such series shall be so decreased, the shares constituting such decrease shall resume the status they had prior to the adoption of the resolution originally fixing the number of shares of such series. Except as otherwise expressly provided in any Preferred Stock Designation, (a) any new series of Preferred Stock may be designated, fixed and determined as provided herein by the Board of Directors without approval of the holders of Common Stock or the holders of Preferred Stock, or any series thereof, and (b) any such new series may have powers, preferences and rights, including, without limitation, voting rights, dividend rights, liquidation rights, redemption rights and conversion rights, senior to, junior to or *pari passu* with the rights of the Common Stock, the Preferred Stock or any future class or series of Preferred Stock or Common Stock

**<u>ARTICLE V</u>** 

**<u>DIRECTORS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Number.</u> The number of Directors shall be fixed in accordance with procedures established by the By-Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Vacancies.</u> Vacancies occurring in the Board of Directors shall be filled in the manner provided in the By-Laws, or, if the By-Laws do not provide for the filling of vacancies, in the manner provided by the Corporation Law. The By-Laws may also provide that in certain circumstances specified therein, vacancies occurring in the Board of Directors may be filled by vote of the shareholders at a special meeting called for that purpose or at the next annual meeting of shareholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Removal of Directors</u>. Any or all of the members of the Board of Director may be removed, with or without cause, only at a meeting of the shareholders called expressly for that purpose, by the affirmative vote of the holders of outstanding shares representing at least a majority of all the votes then entitled to be cast at an election of Directors.

**<u>ARTICLE VI</u>**

**<u>BY-LAWS OF THE CORPORATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>By-Laws.</u> Except as otherwise expressly provided in these Articles of Incorporation or by the Corporation Law, the By-Laws of the Corporation may be amended or repealed by either (a) the Board of Directors by the affirmative vote of a majority of the entire number of Directors at the time, or (b) the affirmative vote, at a meeting of the shareholders of the Corporation, of at least a majority of the votes entitled to be cast by the holders of the outstanding shares of all classes of stock of the Corporation entitled to vote generally in the election of directors, considered for the purposes of this Section 6.1 as a single voting group, provided, however, that no By-Law may be adopted that is inconsistent with the Corporation Law.

**<u>ARTICLE VII</u>** 

**<u>OTHER PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Amendment or Repeal</u>. Except as otherwise expressly provided for in these Articles of Incorporation, the Corporation shall be deemed, for all purposes, to have reserved the right to amend, alter, change, or repeal any provision contained in these Articles of Incorporation to the extent and in the manner now or hereafter permitted or prescribed by statute, and all rights herein conferred upon shareholders are granted subject to such reservation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Tax Classification</u>. It is the specific intent that the Corporation be classified as a C-Corporation for federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Captions.</u> The captions of the Articles and Sections of these Articles of Incorporation have been inserted for convenience of reference only and no not in any way define, limit, construe, or describe the scope or intent of any Article or Section hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Nonliability of Shareholders</u>. Shareholders of the Corporation are not personally liable for the acts or debts of the Corporation, nor is private property of shareholders subject to the payment of corporate debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Indemnification</u>. To the fullest extent permitted by the Corporation Law, the Corporation shall indemnify, or advance expenses to, any person made, or threatened to be made, a party to any action, suit or proceeding by reason of the fact that such person is or was a director or officer of the Corporation, provided that said officer or director's actions were not the result of willful negligence or criminal activity, and provided, further, that said officer or director's action(s) requiring indemnification under this Section 7.4 were conducted at the time the person was and officer or director of the Corporation. Unless otherwise expressly prohibited by the Corporation Law, and except as otherwise provided in the previous sentence, the Board of Directors of the Corporation shall have the sole and exclusive discretion, on such terms and conditions as it shall determine, to indemnify, or advance expenses to, any person made, or threatened to be made, a party to any action, suit, or proceeding by reason of the fact such person is or was an officer, employee or agent of the Corporation as an officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise. No person falling within the purview of this paragraph may apply for indemnification or advancement of expenses to any court of competent jurisdiction.

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IN WITNESS WHEREOF, the undersigned, desiring to execute these Articles of Incorporation pursuant to the provisions of the Corporate Law executes these Articles of Incorporation and hereby verifies, subject to the penalties of perjury, that the statements contained herein are true.

---

| |
|:---|
| Executed this 9 day of December, 2024. |
| ELECTRIFIED MATERIALS CORPORATION |
| */s/ Mark C. Jensen* |
| Name: Mark C. Jensen |
| Title: Chairman & CEO |

---

<br> <u>Page 4 of 4</u>

## Exhibit 4.1

**EXHIBIT 4.1**

**BYLAWS OF**

Electrified Materials Corporation

Organized under the Laws of the State of Indiana

Date of Adoption: December 9, 2024

**ARTICLE I**

**OFFICES AND RECORDS**

SECTION 1.1. <u>Registered Office</u>. The registered office of Electrified Materials Corporation (the "Company") in the State of Indiana shall be as set forth in the Articles of Incorporation of the Company, as it may be amended, restated, supplemented and otherwise modified from time to time (the "Articles of Incorporation"), and the name of the Company's registered agent at such address is as set forth in the Articles of Incorporation. The registered office and registered agent of the Company may be changed from time to time by the Chief Executive Officer or the Board of Directors (or the "Board") of the Company in the manner provided by applicable law.

SECTION 1.2. <u>Other Offices</u>. The Company may have such other offices, either within or without the State of Indiana, as the Board may designate or as the business of the Company may from time to time require.

SECTION 1.3. <u>Books and Records</u>. The books and records of the Company may be kept outside the State of Indiana at such place or places as may from time to time be designated by the Board.

**ARTICLE II** 

**STOCKHOLDERS**

SECTION 2.1. <u>Annual Meetings</u>. If required by applicable law, an annual meeting of the stockholders of the Company shall be held at such date, time and place, if any, either within or outside of the State of Indiana, as may be fixed by resolution of the Board. The Board may postpone, reschedule or cancel any annual meeting of stockholders previously scheduled by the Board.

SECTION 2.2. <u>Special Meetings</u>. Special meetings of stockholders of the Company may be called only by the Board pursuant to a resolution adopted by the affirmative vote of a majority of the Whole Board. The Board may postpone, reschedule or cancel any special meeting of the stockholders previously scheduled by the Board. For purposes of these Bylaws, the term "Whole Board" shall mean the total number of authorized directors whether or not there exist any vacancies in previously authorized directorships.

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SECTION 2.3. <u>Record Date</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) In order that the Company may determine the stockholders entitled to notice of any meeting of stockholders or any adjournment thereof, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board, and which record date shall, unless otherwise required by applicable law, not be more than 60 nor less than five days before the date of such meeting. If the Board so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination. If no record date is fixed by the Board, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board may fix a new record date for determination of stockholders entitled to vote at the adjourned meeting, and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same date as that fixed for determination of stockholders entitled to vote in accordance herewith at the adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In order that the Company may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall not be more than 60 days prior to such action. If no such record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Unless otherwise restricted by the Articles of Incorporation, in order that the Company may determine the stockholders entitled to express consent to corporate action in writing without a meeting, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board, and which record date shall not be more than ten days after the date upon which the resolution fixing the record date is adopted by the Board. If no record date for determining stockholders entitled to express consent to corporate action in writing without a meeting is fixed by the Board, (i) when no prior action of the Board is required by applicable law, the record date for such purpose shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Company in accordance with applicable law, and (ii) if prior action by the Board is required by applicable law, the record date for such purpose shall be at the close of business on the day on which the Board adopts the resolution taking such prior action.

SECTION 2.4. <u>Place of Meeting</u>. The Board, the Chairman of the Board, the Chief Executive Officer or the President, as the case may be, may designate the place of meeting for any annual meeting or for any special meeting of the stockholders. If no designation is so made, the place of meeting shall be the principal executive offices of the Company.

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SECTION 2.5. <u>Notice of Meeting</u>. Written notice, stating the place, if any, date and time of the meeting, shall be given, not less than five days nor more than 60 days before the date of the meeting, to each stockholder of record entitled to vote at such meeting. The notice shall specify:

&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 record date for determining the stockholders entitled to vote at the meeting (if such date is different from the record date for stockholders entitled to notice of the meeting),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the place, if any, date and time of such meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the means of remote communications, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at such meeting, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) in the case of a special meeting, the purpose or purposes for which such meeting is called. If the meeting of stockholders is to be held solely by means of electronic communications, the notice of meeting must provide the information required to access such stockholder list during the meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail with postage thereon prepaid, addressed to the stockholder at his address as it appears on the stock transfer books of the Company. The Company may provide stockholders with notice of a meeting by electronic transmission provided such stockholders have consented to receiving electronic notice should Indiana state laws allow. Such further notice shall be given as may be required by applicable law. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the notice of meeting.

SECTION 2.7. <u>Quorum and Adjournment of Meetings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Except as otherwise required by applicable law or by the Articles of Incorporation, the holders of a majority of the voting power of all of the outstanding shares of stock of the Company entitled to vote at the meeting, represented in person or by proxy, shall constitute a quorum at a meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Any meeting of stockholders, annual or special, may adjourn or recess from time to time to reconvene at the same or some other place, and notice need not be given of any such adjourned or recessed meeting if the date, time and place thereof are announced at the meeting at which the adjournment or recess is taken; provided, however, that if the adjournment or recess is for more than 30 days, a notice of the adjourned or recessed meeting shall be given to each stockholder of record entitled to vote at the meeting. At the adjourned or recessed meeting, the Company may transact any business that might have been transacted at the original meeting.

SECTION 2.8. <u>Proxies</u>. At all meetings of stockholders, a stockholder may vote by proxy executed in writing (or in such other manner prescribed by the Indiana state law) by the stockholder or by his duly authorized attorney-in-fact. Any copy, facsimile transmission or other reliable reproduction of the writing or transmission created pursuant to this section may be substituted or used in lieu of the original writing or transmission for any and all purposes for which the original writing or transmission could be used, provided that such copy, facsimile transmission or other reproduction shall be a complete reproduction of the entire original writing or transmission. No proxy may be voted or acted upon after the expiration of three years from the date of such proxy, unless such proxy provides for a longer period. Every proxy is revocable at the pleasure of the stockholder executing it unless the proxy states that it is irrevocable and applicable law makes it irrevocable. A stockholder may revoke any proxy that is not irrevocable by attending the meeting and voting in person or by filing an instrument in writing revoking the proxy or by filing another duly executed proxy bearing a later date with the Secretary of the Company.

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SECTION 2.9. <u>Notice of Stockholder Business and Nominations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Annual Meetings of Stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Nominations of persons for election to the Board and the proposal of other business to be considered by the stockholders at an annual meeting of stockholders may be made only (a) pursuant to the Company's notice of meeting (or any supplement thereto), (b) by or at the direction of the Board or any committee thereof or (c) by any stockholder of the Company who (i) was a stockholder of record at the time of giving of notice provided for in these Bylaws and at the time of the annual meeting, (ii) is entitled to vote at the meeting and (iii) complies with the notice procedures and other requirements set forth in these Bylaws and applicable law. **Section 2.9(A)(1)(c)** of these Bylaws shall be the exclusive means for a stockholder to make nominations or submit other business (other than matters properly brought under Rule 14a-8 under the Exchange Act and included in the Company's notice of meeting) before an annual meeting of the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For any nominations or any other business to be properly brought before an annual meeting by a stockholder pursuant to **Section 2.9(A)(1)(c)** of these Bylaws, (a) the stockholder must have given timely notice thereof in writing to the Secretary of the Company, (b) such other business must otherwise be a proper matter for stockholder action under Indiana state law. To be timely, a stockholder's notice must be received by the Secretary of the Company at the principal executive offices of the Company not earlier than the close of business on the 120th day and not later than the close of business on the 90th day prior to the first anniversary of the preceding year's annual meeting. In no event shall any adjournment, recess or postponement of an annual meeting or the announcement thereof commence a new time period for the giving of a stockholder's notice as described above. To be in proper form, a stockholder's notice (whether given pursuant to this **Section 2.9(A)(2)** or **Section 2.9(B)**) to the Secretary of the Company must:

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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;(a) set forth, as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made (i) the name and address of such stockholder, as they appear on the Company's books, and of such stockholder's Stockholder Associated Person (as defined in **Section 2.9(C)(2)**), if any, (ii) (A) the class or series and number of shares of the Company that are, directly or indirectly, owned beneficially and of record by such stockholder and such beneficial owner, (B) any option, warrant, convertible security, stock appreciation right, or similar right with an exercise or conversion privilege or a settlement payment or mechanism at a price related to any class or series of shares of the Company or with a value derived in whole or in part from the value of any class or series of shares of the Company, whether or not such instrument or right shall be subject to settlement in the underlying class or series of stock of the Company or otherwise (a "Derivative Instrument"), directly or indirectly owned beneficially by such stockholder or by any Stockholder Associated Person and any other direct or indirect opportunity to profit or share in any profit derived from any increase or decrease in the value of shares of the Company, (C) a complete and accurate description of any agreement, arrangement or understanding between or among such stockholder and such stockholder's Stockholder Associated Person and any other person or persons in connection with such stockholder's director nomination and the name and address of any other person(s) or entity or entities known to the stockholder to support such nomination, (D) a description of any proxy, contract, arrangement, understanding or relationship pursuant to which such stockholder or any Stockholder Associated Person has a right to vote, directly or indirectly, any shares of any security of the Company, (E) any short interest in any security of the Company held by such stockholder or any Stockholder Associated Person (for purposes of these Bylaws, a person shall be deemed to have a "short interest" in a security if such person directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has the opportunity to profit or share in any profit derived from any decrease in the value of the subject security), (F) any rights to dividends on the shares of the Company owned beneficially by such stockholder or by any Stockholder Associated Person that are separated or separable from the underlying shares of the Company, (G) any proportionate interest in shares of the Company or Derivative Instruments held, directly or indirectly, by a general or limited partnership in which such stockholder or any Stockholder Associated Person is a general partner or, directly or indirectly, beneficially owns an interest in a general partner and (H) any performance-related fees (other than an asset-based fee) that such stockholder or any Stockholder Associated Person is entitled to based on any increase or decrease in the value of shares of the Company or Derivative Instruments, if any, as of the date of such notice, including, without limitation, any such interests held by members of such stockholder's or any Stockholder Associated Person's immediate family sharing the same household (which information shall be supplemented by such stockholder and any Stockholder Associated Person, if any, not later than ten days after the record date for determining the stockholders entitled to vote at the meeting to disclose such ownership as of the record date; provided, that if such date is after the date of the meeting, not later than the day prior to the meeting),(iii)any other information relating to such stockholder and any Stockholder Associated Person, if any, that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies for, as applicable, the proposal or for the election of directors in a contested election pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder, (iv) a representation that the stockholder is a holder of record of stock of the Company entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to bring such nomination or other business before the meeting, and (v) a representation as to whether or not such stockholder or any Stockholder Associated Person will deliver a proxy statement or form of proxy to holders of at least the percentage of the voting power of the Company's outstanding stock required to approve or adopt the proposal or, in the case of a nomination or nominations, at least the percentage of the voting power of the Company's outstanding stock reasonably believed by the stockholder or Stockholder Associated Person, as the case may be, to be sufficient to elect such nominee or nominees (such representation, a "Solicitation Statement").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the notice relates to any business other than a nomination of a director or directors that the stockholder proposes to bring before the meeting, set forth (i) a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting and any material interest of such stockholder and Stockholder Associated Person, if any, in such business and (ii) the text of the proposal or business (including the text of any resolutions proposed for consideration) and (iii) a complete and accurate description of all agreements, arrangements and understandings between or among such stockholder and such stockholder's Stockholder Associated Person, if any, and the name and address of any other person(s) or entity or entities in connection with the proposal of such business by such stockholder;

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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) set forth, as to each person, if any, whom the stockholder proposes to nominate for election or reelection to the Board (i) all information relating to such person that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies for election of directors in a contested election pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder (including such person's written consent to being named in the proxy statement as a nominee and to serving as a director if elected), and (ii) a description of all direct and indirect compensation and other material monetary agreements, arrangements and understandings during the past three years, and any other material relationships, between or among such stockholder and Stockholder Associated Person, if any, and their respective affiliates and associates, or others acting in concert therewith, on the one hand, and each proposed nominee, and his respective affiliates and associates, or others acting in concert therewith, on the other hand, including, without limitation, all information that would be required to be disclosed pursuant to Rule 404 promulgated under Regulation S-K if the stockholder making the nomination and any beneficial owner on whose behalf the nomination is made, if any, or any affiliate or associate thereof or person acting in concert therewith, were the "registrant" for purposes of such rule and the nominee were a director or executive officer of such registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to each nominee for election or reelection to the Board, include (i) a completed and signed questionnaire, representation and agreement in a form provided by the Company, which form the stockholder must request from the Secretary of the Company in writing with no less than 7 days advance notice, and (ii) a written representation and agreement (in the form provided by the Secretary of the Company upon written request) that such person (A) is not and will not become a party to (1) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Company, will act or vote on any issue or question (a "Voting Commitment") that has not been disclosed to the Company or (2) any Voting Commitment that could limit or interfere with such person's ability to comply, if elected as a director of the Company, with such person's fiduciary duties under applicable law, (B) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Company with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director that has not been disclosed therein, (C) if elected as a director of the Company, intends to serve a full term, and (D) in such person's individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Company, and will comply with all applicable publicly disclosed corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and guidelines of the Company. The Company may require any proposed nominee to furnish such other information as may reasonably be required by the Company to determine the eligibility of such proposed nominee to serve as an independent director of the Company or that could be material to a reasonable stockholder's understanding of the independence, or lack thereof, of such nominee.

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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;(3) A stockholder providing notice of a nomination or proposal of other business to be brought before a meeting shall further update and supplement such notice so that the information provided or required to be provided in such notice shall be true and correct (i) as of the record date for the meeting and (ii) as of the date that is ten business days prior to the meeting or any adjournment, recess, cancellation, rescheduling or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the Secretary of the Company at the principal executive offices of the Company not later than five business days after the record date for the meeting (in the case of the update and supplement required to be made as of the record date) and not later than seven business days prior to the date for the meeting, if practicable (or, if not practicable, on the first practicable date prior to any adjournment, recess or postponement thereof (in the case of the update and supplement required to be made as of ten business days prior to the meeting or any adjournment, recess or postponement thereof)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Special Meetings of Stockholders</u>.

Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting by or at the direction of the Board. Nominations of persons for election to the Board may be made at a special meeting of stockholders at which directors are to be elected pursuant to a notice of meeting (1) by or at the direction of the Board or any committee thereof or (2) if the Board has determined that directors shall be elected at such meeting, by any stockholder of the Company who (a) is a stockholder of record at the time of giving of notice provided for in these Bylaws and at the time of the special meeting, (b) is entitled to vote at the meeting, and (c) complies with the notice procedures set forth in these Bylaws and applicable law. In the event a special meeting of stockholders is called for the purpose of electing one or more directors to the Board, any stockholder of record among such requesting stockholders may nominate a person or persons (as the case may be), for election to such position(s) as specified in the Company's notice of meeting, if such stockholder delivers notice with the information required by **Section 2.9(A)(1)(c)** of these Bylaws with respect to any nomination (including the completed and signed questionnaire, representation and agreement required by **Section 2.9(A)(1)(c)** of these Bylaws). Such notice shall be delivered to the Secretary of the Company at the principal executive offices of the Company not earlier than the close of business on the 120th day prior to such special meeting and not later than the close of business on the later of the 90th day prior to such special meeting or the 10th day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board to be elected at such meeting. In no event shall any adjournment, recess or postponement or the announcement thereof of a special meeting commence a new time period for the giving of a stockholder's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) <u>General.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Only such persons who are nominated in accordance with the procedures set forth in these Bylaws and applicable law shall be eligible to serve as directors, and only such business shall be conducted at a meeting of stockholders as has been brought before the meeting in accordance with the procedures set forth in these Bylaws and applicable law. Except as otherwise provided by applicable law, the Articles of Incorporation or these Bylaws, the Chairman of the Meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in these Bylaws and applicable law and, if any proposed nomination or business is not in compliance with these Bylaws and applicable law, to declare that such defective proposal or nomination shall be disregarded.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For purposes of these Bylaws, "public announcement" shall mean disclosure in a press release reported by any national news service or in a document publicly filed by the Company with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act and the rules and regulations promulgated thereunder, and "Stockholder Associated Person" shall mean, for any stockholder, (a) any person or entity controlling, directly or indirectly, or acting in concert with, such stockholder, (b) any beneficial owner of shares of stock of the Company owned of record or beneficially by such stockholder or (c) any person or entity controlling, controlled by or under common control with any person or entity referred to in the preceding clauses (a) or (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Notwithstanding the foregoing provisions of these Bylaws, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in these Bylaws; provided, however, that any references in these Bylaws to the Exchange Act or the rules promulgated thereunder are not intended to and shall not limit the requirements applicable to nominations or proposals as to any other business to be considered pursuant to <u>Section 2.9(A)</u> or <u>Section 2.9(B)</u> of these Bylaws. Nothing in these Bylaws shall be deemed to affect any rights(a) of stockholders to request inclusion of proposals in the Company's proxy statement pursuant to Rule 14a-8 under the Exchange Act or (b) of the holders of any series of Preferred Stock if and to the extent provided for under applicable law, the Articles of Incorporation, the Articles of Incorporation, or these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Unless otherwise required by law, if the stockholder (or a qualified representative of the stockholder) making a nomination or proposal under this <u>Section 2.9</u> does not appear at a meeting of stockholders to present such nomination or proposal, the nomination shall be disregarded and the proposed business shall not be transacted, as the case may be, notwithstanding that proxies in favor thereof may have been received by the Company. For purposes of this <u>Section 2.9</u>, to be considered a qualified representative of the stockholder, a person must be a duly authorized officer, manager or partner of such stockholder or must be authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of stockholders.

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SECTION 2.10. <u>Conduct of Business</u>. The date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote at a meeting shall be announced at the meeting by the chairman of the meeting. The Board may adopt by resolution such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate in its sole discretion. The Chairman of the Board, if one shall have been elected, or in the Chairman of the Board's absence or if one shall not have been elected, the director or officer designated by the majority of the Whole Board, shall preside at all meetings of the stockholders as "Chairman of the Meeting." Except to the extent inconsistent with such rules and regulations as adopted by the Board, the Chairman of the Meeting shall have the right and authority to convene and for any reason to recess and/or adjourn the meeting, to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of the Chairman of the Meeting, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board or prescribed by the Chairman of the Meeting, may include, without limitation, the following: (A) the establishment of an agenda or order of business for the meeting; (B) rules and procedures for maintaining order at the meeting and the safety of those present; (C) limitations on attendance at or participation in the meeting to stockholders entitled to vote at the meeting, their duly authorized and constituted proxies or such other persons as the presiding person of the meeting shall determine; (D) restrictions on entry to the meeting after the time fixed for the commencement thereof; (E) limitations on the time allotted to questions or comments by participants; and (F) restrictions of the use of audio and video recording devices. The Chairman of the Meeting, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall, if the facts warrant, determine and declare to the meeting that a matter or business was not properly brought before the meeting, and if such Chairman of the Meeting should so determine, such chairman of the meeting shall so declare to the meeting and any such matter or business not properly brought before the meeting shall not be transacted or considered. Unless and to the extent determined by the Board or the Chairman of the Meeting, meetings of stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

SECTION 2.11. <u>Required Vote</u>. Directors shall be elected by a plurality of the votes validly cast in such election. Unless otherwise provided in the Articles of Incorporation, cumulative voting for the election of directors shall be prohibited. Except as otherwise required by applicable law, the rules and regulations of any stock exchange applicable to the Company, the Articles of Incorporation or these Bylaws, in all matters other than the election of directors and certain non-binding advisory votes described below, the affirmative vote of a majority of the voting power of the outstanding shares present in person or represented by proxy at the meeting and entitled to vote on the matter shall be the act of the stockholders. In non-binding advisory matters with more than two possible vote choices, the affirmative vote of a plurality of the voting power of the outstanding shares present in person or represented by proxy at the meeting and entitled to vote on the matter shall be the recommendation of the stockholders.

SECTION 2.12. <u>Treasury Stock</u>. The Company shall not vote, directly or indirectly, shares of its own stock belonging to it or any other Company, if a majority of shares entitled to vote in the election of directors of such Company is held, directly or indirectly by the Company, and such shares will not be counted for quorum purposes; provided, however, that the foregoing shall not limit the right of the Company or such other Company, to vote stock of the Company held in a fiduciary capacity.

SECTION 2.13. <u>Inspectors of Elections; Opening and Closing the Polls</u>. The Company may, and when required by applicable law, shall, appoint one or more inspectors, which inspector or inspectors may include individuals who serve the Company in other capacities, including, without limitation, as officers, employees, agents or representatives, to act at the meetings of stockholders and make a written report thereof. One or more persons may be designated as alternate inspectors to replace any inspector who fails to act. If no inspector or alternate has been appointed to act or is able to act at a meeting of stockholders and the appointment of an inspector is required by applicable law, the Chairman of the Meeting shall appoint one or more inspectors to act at the meeting. Each inspector, before discharging his duties, shall take and sign an oath to faithfully execute the duties of inspector with strict impartiality and according to the best of his ability. The inspectors shall have the duties prescribed by applicable law.

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SECTION 2.14. <u>Stockholder Action by Written Consent</u>. Any action required or permitted to be taken at any annual meeting or special meeting of the stockholders of the Company may be taken without a meeting, without prior notice and without a vote of stockholders, if a consent or consents in writing, setting forth the action so taken, is or are signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.

**ARTICLE III** 

**BOARD OF DIRECTORS**

SECTION 3.1. <u>General Powers</u>. The business and affairs of the Company shall be managed by or under the direction of the Board elected in accordance with these Bylaws. In addition to the powers and authorities by these Bylaws expressly conferred upon them, the Board may exercise all such powers of the Company and do all such lawful acts and things as are not by statute or by the Articles of Incorporation or by these Bylaws required to be exercised or done by the stockholders. The directors shall act only as a Board, and the individual directors shall have no power as such.

SECTION 3.2. <u>Number, Tenure and Qualifications</u>. If any, the number of directors shall be fixed from time to time exclusively pursuant to a resolution adopted by the affirmative vote of a majority of the Whole Board. The election and term of directors shall be as set forth in the Articles of Incorporation.

SECTION 3.3. <u>Regular Meetings</u>. Subject to **Section 3.5**, regular meetings of the Board shall be held on such dates, and at such times and places, as are determined from time to time by resolution of the Board.

SECTION 3.4. <u>Special Meetings</u>. Special meetings of the Board shall be called at the request of the Chairman of the Board, the Executive Chairman the President and Chief Executive Officer or a majority of the Board then in office. The person or persons authorized to call special meetings of the Board may fix the place, if any, date and time of the meetings. Any business may be conducted at a special meeting of the Board.

SECTION 3.5. <u>Notice</u>. Notice of any special meeting of directors shall be given to each director at his business or residence in writing by hand delivery, first-class or overnight mail, courier service or facsimile or electronic transmission or orally by telephone. If mailed by first-class mail, such notice shall be deemed adequately delivered if deposited in the United States mails so addressed, with postage thereon prepaid, at least five days before such meeting. If by overnight mail or courier service, such notice shall be deemed adequately delivered if the notice is delivered to the overnight mail or courier service company at least 24 hours before such meeting. If by facsimile or electronic transmission, such notice shall be deemed adequately delivered if the notice is transmitted at least 12 hours before such meeting. If by telephone or by hand delivery, the notice shall be given at least 12 hours prior to the time set for the meeting and shall be confirmed by facsimile or electronic transmission that is sent promptly thereafter. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board need be specified in the notice of such meeting, except for amendments to these Bylaws, as provided under **Section 8.1**.

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SECTION 3.6. <u>Action by Consent of Board</u>. Any action required or permitted to be taken at any meeting of the Board or of any committee thereof may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing, including by electronic transmission, and the writing or writings or electronic transmissions are filed with the minutes of proceedings of the Board or committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form. Such consent shall have the same force and effect as a unanimous vote at a meeting, and may be stated as such in any document or instrument filed with the Secretary of State of the State of Indiana.

SECTION 3.7. <u>Conference Telephone Meetings</u>. Members of the Board or any committee thereof may participate in a meeting of the Board or such committee by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at such meeting.

SECTION 3.8. <u>Quorum</u>. A whole number of directors equal to at least a majority of the Whole Board shall constitute a quorum for the transaction of business, but if at any meeting of the Board there shall be less than a quorum present, a majority of the directors present may, to the fullest extent permitted by law, adjourn the meeting from time to time without further notice unless (A) the date, time and place, if any, of the adjourned meeting are not announced at the time of adjournment, in which case notice conforming to the requirements of **Section 3.5** of these Bylaws shall be given to each director, or (B) the meeting is adjourned for more than 24 hours, in which case the notice referred to in clause (A) shall be given to those directors not present at the announcement of the date, time and place of the adjourned meeting. Except as otherwise expressly required by law, the Articles of Incorporation or these Bylaws, all matters shall be determined by the affirmative vote of a majority of the directors present at a meeting at which a quorum is present. To the fullest extent permitted by law, the directors present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough directors to leave less than a quorum.

SECTION 3.9. <u>Vacancies</u>. Subject to applicable law, any newly created directorship that results from an increase in the number of directors or any vacancy on the Board that results from the death, resignation, disqualification or removal of any director or from any other cause shall, unless otherwise required by law or by resolution of the Board, be filled by the affirmative vote of a majority of the total number of directors then in office, even if less than a quorum, or by a sole remaining director, and shall not be filled by the stockholders. Any director elected to fill a vacancy not resulting from an increase in the number of directors shall hold office for the remaining term of his predecessor. No decrease in the number of authorized directors constituting the Board shall shorten the term of any incumbent director.

SECTION 3.10. <u>Removal</u>. Any director may be removed with or without cause, at any time, upon the affirmative vote of the holders of at least a 50% of the voting power of the outstanding shares of stock of the Company entitled to vote generally for the election of directors, voting together as a single class and acting at a meeting of the stockholders in accordance with the Indiana state law, the Articles of Incorporation and these Bylaws.

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SECTION 3.11. <u>Records</u>. The Board shall cause to be kept a record containing the minutes of the proceedings of the meetings of the Board and of the stockholders, appropriate stock books and registers and such books of records and accounts as may be necessary for the proper conduct of the business of the Company.

SECTION 3.12. <u>Compensation</u>. Unless otherwise restricted by the Articles of Incorporation or these Bylaws, the Board shall have authority to fix the compensation of directors, including fees and reimbursement of expenses.

SECTION 3.13. <u>Regulations</u>. To the extent consistent with applicable law, the Articles of Incorporation and these Bylaws, the Board may adopt such rules and regulations for the conduct of meetings of the Board and for the management of the affairs and business of the Company as the Board may deem appropriate.

**ARTICLE IV** 

**COMMITTEES**

SECTION 4.1. <u>Designation; Powers</u>. The Board may designate one or more committees, each committee to consist of one or more of the directors of the Company. Any such committee, to the extent permitted by applicable law and to the extent provided in the resolution of the Board, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Company, and may authorize the seal of the Company to be affixed to all papers which may require it.

SECTION 4.2. <u>Procedure; Meetings; Quorum</u>. Any committee designated pursuant to **Section 4.1** shall choose its own chairman by a majority vote of the members then in attendance in the event the chairman has not been selected by the Board, shall keep regular minutes of its proceedings, and shall meet at such times and at such place or places as may be provided by the charter of such committee or by resolution of such committee or resolution of the Board. At every meeting of any such committee, the presence of a majority of all the members thereof shall constitute a quorum and the affirmative vote of a majority of the members present shall be necessary for the adoption by it of any resolution. The Board shall adopt a charter for each committee for which a charter is required by applicable laws, regulations or stock exchange rules, may adopt a charter for any other committee, and may adopt other rules and regulations for the governance of any committee not inconsistent with the provisions of these Bylaws or any such charter, and each committee may adopt its own rules and regulations of governance, to the extent not inconsistent with these Bylaws or any charter or other rules and regulations adopted by the Board.

SECTION 4.3. <u>Substitution of Members</u>. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of such committee. In the absence or disqualification of a member of a committee, the member or members present at any meeting and not disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of the absent or disqualified member.

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**ARTICLE V** 

**OFFICERS**

SECTION 5.1. <u>Officers</u>. The officers of the Company shall be a Chairman of the Board, a Chief Executive Officer, a President, a Chief Financial Officer, a Chief Operating Officer and such other officers as the Board from time to time may deem proper. The Chairman of the Board shall be chosen from among the directors. All officers elected by the Board shall each have such powers and duties as generally pertain to their respective offices, subject to the specific provisions of this **Article V**. Such officers shall also have such powers and duties as from time to time may be conferred by the Board or by any committee thereof. The Board or any committee thereof may from time to time elect, or the Chairman of the Board, Chief Executive Officer, or President, if any, may appoint, such other officers (including a Secretary, Treasurer, one or more Senior Vice Presidents, Vice Presidents, Assistant Secretaries and Assistant Treasurers) and such agents, as may be necessary or desirable for the conduct of the business of the Company.

Such other officers and agents shall have such duties and shall hold their offices for such terms as shall be provided in these Bylaws or as may be prescribed by the Board or such committee thereof or by the Chairman of the Board, Chief Executive Officer, or President, as the case may be. Any number of offices may be held by the same person.

SECTION 5.2. <u>Election and Term of Office</u>. Each officer shall hold office until his successor shall have been duly elected or appointed and shall have qualified or until his death or until he shall resign, but any officer may be removed from office at any time by the affirmative vote of a majority of the Board or, except in the case of an officer or agent elected by the Board, by the Chairman of the Board, Chief Executive Officer, or President, if any. Such removal shall be without prejudice to the contractual rights, if any, of the person so removed. No elected officer shall have any contractual rights against the Company for compensation by virtue of such election beyond the date of the election of his successor, his death, his resignation or his removal, whichever event shall first occur, except as otherwise provided in an employment contract or under an employee deferred compensation plan.

SECTION 5.3. <u>Chairman of the Board</u>. The Chairman of the Board shall preside at all meetings of the Board. The Chairman of the Board shall be responsible for the general management of the affairs of the Company and shall perform all duties incidental to his office that may be required by law and all such other duties as are properly required of him by the Board. He shall make reports to the Board and shall see that all orders and resolutions of the Board and of any committee thereof are carried into effect. The Chairman of the Board may also serve as Chief Executive Officer, if so elected by the Board.

SECTION 5.4. <u>Chief Executive Officer</u>. The Chief Executive Officer, if any, shall act in a general executive capacity and shall assist the Chairman of the Board in the administration and operation of the Company's business and general supervision of its policies and affairs. The Chief Executive Officer (if any and if he or she shall be a director) shall, in the absence of or because of the inability to act of the Chairman of the Board, perform all duties of the Chairman of the Board and preside at all meetings of the Board.

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SECTION 5.5. <u>President</u>. The President, if any, shall act in a general executive capacity and shall assist the Chairman of the Board in the administration and operation of the Company's business and general supervision of its policies and affairs. The President (if any and if he or she shall be a director) shall, in the absence of or because of the inability to act of the Chairman of the Board or Chief Executive Officer, perform all duties of the Chairman of the Board and preside at all meetings of the Board.

SECTION 5.6. <u>Chief Financial Officer</u>. The Chief Financial Officer, if any, shall have such powers and shall perform such duties as shall be assigned to him by the Board. In the absence (or inability or refusal to act) of the Chairman of the Board, Chief Executive Officer and President, the Chief Financial Officer (if any and if he or she shall be a director) shall preside when present at all meetings of the Board.

SECTION 5.7. <u>Chief Accounting Officer</u>. The Chief Accounting Officer, if any, shall have such powers and shall perform such duties as shall be assigned to him by the Board or the Chairman of the Board, Chief Executive Officer, or Chief Financial Officer.

SECTION 5.8. <u>Chief Operating Officer</u>. The Chief Operating Officer, if any, shall have such powers and shall perform such duties as shall be assigned to him by the Board or the Chairman of the Board, Chief Executive Officer or the President.

SECTION 5.9. <u>Executive Vice Presidents and Senior Vice Presidents</u>. Each Executive Vice President and Senior Vice President, if any, shall have such powers and shall perform such duties as shall be assigned to him by the Board or the Chairman of the Board, Chief Executive Officer or the President.

SECTION 5.10. <u>Treasurer</u>. The Treasurer, if any, shall exercise general supervision over the receipt, custody and disbursement of corporate funds. He shall have such further powers and duties and shall be subject to such directions as may be granted or imposed upon him from time to time by the Board or the Chairman of the Board, Chief Executive Officer or the President.

SECTION 5.11. <u>Secretary</u>. The Secretary, if any, shall keep or cause to be kept in one or more books provided for that purpose, the minutes of all meetings of the Board, the committees of the Board and the stockholders; he shall see that all notices are duly given in accordance with the provisions of these Bylaws and as required by applicable law; he shall be custodian of the records and the seal of the Company and affix and attest the seal to all stock certificates of the Company (unless the seal of the Company on such certificates shall be a facsimile, as hereinafter provided) and affix and attest the seal to all other documents to be executed on behalf of the Company under its seal; and he shall see that the books, reports, statements, certificates and other documents and records required by law to be kept and filed are properly kept and filed; and in general, he shall perform all the duties incident to the office of Secretary and such other duties as from time to time may be assigned to him by the Board or the Chairman of the Board, Chief Executive Officer or the President.

SECTION 5.12. <u>Vacancies</u>. A newly created elected office and a vacancy in any elected office because of death, resignation or removal may be filled by the Board for the unexpired portion of the term at any meeting of the Board. Any vacancy in an office appointed by the Chairman of the Board, Chief Executive Officer or the President and, if any, because of death, resignation or removal may be filled by the Chairman of the Board, Chief Executive Officer or the President.

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SECTION 5.13. <u>Action with Respect to Securities of Other Companies</u>. Unless otherwise directed by the Board, Chairman of the Board, Chief Executive Officer or the President and or any officer authorized by the Chairman of the Board, Chief Executive Officer or the President, shall have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders of or with respect to any action of security holders of any other Company in which the Company may hold securities and otherwise to exercise any and all rights and powers that the Company may possess by reason of its ownership of securities in such other Company.

SECTION 5.14. <u>Delegation</u>. The Board may from time-to-time delegate the powers and duties of any officer to any other officer or agent, notwithstanding any provision hereof.

**ARTICLE VI**

**STOCK CERTIFICATES AND TRANSFERS**

SECTION 6.1. <u>Stock Certificates and Transfers</u>. The interest of each stockholder of the Company shall be evidenced by certificates for shares of stock in such form as the appropriate officers of the Company may from time to time prescribe, provided that the Board may provide by resolution or resolutions that some or all of any or all classes or series of its stock may be uncertificated shares. A physical certificate of shares of stock is not required if the Board chooses to evidence the ownership of shares in book entry form in the books and records of the Company. The shares of the stock of the Company shall be entered in the books of the Company as they are issued and shall exhibit the holder's name and number of shares. Subject to the provisions of the Articles of Incorporation, the shares of the stock of the Company shall be transferred on the books of the Company, which may be maintained by a third-party registrar or transfer agent, by the holder thereof in person or by his attorney, upon surrender for cancellation of certificates for at least the same number of shares, with an assignment and power of transfer endorsed thereon or attached thereto, duly executed, with such proof of the authenticity of the signature as the Company or its agents may reasonably require or upon receipt of proper transfer instructions from the registered holder of uncertificated shares and upon compliance with appropriate procedures for transferring shares in uncertificated form, at which time the Company shall issue a new certificate to the person entitled thereto (if the stock is then represented by certificates), cancel the old certificate and record the transaction upon its books.

Each certificated share of stock, if so issued, shall be signed, countersigned and registered in the manner required by law. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Company with the same effect as if he were such officer, transfer agent or registrar at the date of issue.

SECTION 6.2. <u>Lost, Stolen or Destroyed Certificates</u>. No certificate for shares or uncertificated shares of stock in the Company shall be issued in place of any certificate alleged to have been lost, destroyed or stolen, except on production of such evidence of such loss, destruction or theft and on delivery to the Company of a bond of indemnity in such amount, upon such terms and secured by such surety, as the Board or any financial officer may in its or his discretion require.

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SECTION 6.3. <u>Ownership of Shares</u>. The Company shall be entitled to treat the holder of record of any share or shares of stock of the Company as the holder in fact thereof and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise required by the laws of the State of Indiana.

SECTION 6.4. <u>Regulations Regarding Certificates</u>. The Board shall have the power and authority to make all such rules and regulations as they may deem expedient concerning the issue, transfer and registration or the replacement of certificates for shares of stock of the Company. The Company may enter into additional agreements with stockholders to restrict the transfer of stock of the Company in any manner not prohibited by the Indiana law.

**ARTICLE VII** 

**MISCELLANEOUS PROVISIONS**

SECTION 7.1. <u>Fiscal Year</u>. The fiscal year of the Company shall begin on the first day of January and end on the 31st day of December of each year.

SECTION 7.2. <u>Dividends</u>. Except as otherwise provided by law or the Articles of Incorporation, the Board may from time to time declare, and the Company may pay, dividends on its outstanding shares of stock, which dividends may be paid in either cash, property or shares of stock of the Company. A member of the Board, or a member of any committee designated by the Board, shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by any of its officers or employees, or committees of the Board, or by any other person as to matters the director reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, as to the value and amount of the assets, liabilities or net profits of the Company, or any other facts pertinent to the existence and amount of surplus or other funds from which dividends might properly be declared and paid.

SECTION 7.3. <u>Seal</u>. If the Board determines that the Company shall have a corporate seal, the corporate seal shall have inscribed thereon the words "Corporate Seal," the year of Incorporation and the words "Electrified Materials Corporation — Indiana."

SECTION 7.4. <u>Waiver of Notice</u>. Whenever any notice is required to be given to any stockholder or director of the Company under the provisions of the Indiana state law, the Articles of Incorporation or these Bylaws, a waiver thereof in writing, including by electronic transmission, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Neither the business to be transacted at, nor the purpose of, any annual or special meeting of the stockholders or the Board or committee thereof need be specified in any waiver of notice of such meeting. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened.

Page 16 of 20

SECTION 7.5. <u>Resignations</u>. Any director or any officer, whether elected or appointed, may resign at any time by giving written notice, including by electronic transmission, of such resignation to the Chairman of the Board, the Executive Chairman, the President and Chief Executive Officer or the Secretary, and such resignation shall be deemed to be effective as of the close of business on the date said notice is received by the Chairman of the Board, the Executive Chairman, the Chief Executive Officer, the President or the Secretary, or at such later time as is specified therein. No formal action shall be required of the Board or the stockholders to make any such resignation effective.

SECTION 7.6. <u>Indemnification and Advancement of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Company shall indemnify and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended, any person who was or is made a party or is threatened to be made a party to or is otherwise involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a "proceeding") by reason of the fact that he, or a person for whom he is the legal representative, is or was a director or officer of the Company or, while a director or officer of the Company, is or was serving at the request of the Company as a director, officer, trustee, employee or agent of another Company or of a partnership, joint venture, trust, other enterprise or nonprofit entity, including service with respect to an employee benefit plan (a "Covered Person"), whether the basis of such proceeding is alleged action in an official capacity as a director, officer, trustee, employee or agent, or in any other capacity while serving as a director, officer, trustee, employee or agent, against all expenses, liability and loss (including, without limitation, attorneys' fees, judgments, fines, ERISA excise taxes and penalties and amounts paid in settlement) reasonably incurred or suffered by such Covered Person in connection with such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Company shall, to the fullest extent not prohibited by applicable law as it presently exists or may hereafter be amended, pay the expenses (including attorneys' fees) incurred by a Covered Person in defending any proceeding in advance of its final disposition; provided, however, that to the extent required by applicable law, such payment of expenses in advance of the final disposition of the proceeding shall be made only upon receipt of an undertaking by the Covered Person to repay all amounts advanced if it should be ultimately determined by final judicial decision from which there is no further right to appeal (hereinafter, a "final adjudication") that the Covered Person is not entitled to be indemnified under this **Section 7.6** or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The rights to indemnification and advancement of expenses under this **Section 7.6** shall be contract rights and such rights shall continue as to a Covered Person who has ceased to be a director, officer, trustee, employee or agent and shall inure to the benefit of his heirs, executors and administrators. Notwithstanding the foregoing provisions of this **Section 7.6**, except for proceedings to enforce rights to indemnification and advancement of expenses, the Company shall indemnify and advance expenses to a Covered Person in connection with a proceeding (or part thereof) initiated by such Covered Person only if such proceeding (or part thereof) was authorized by the Board.

Page 17 of 20

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) If a claim for indemnification under this **Section 7.6** (following the final disposition of such proceeding) is not paid in full within 60 days after the Company has received a claim therefor by the Covered Person, or if a claim for any advancement of expenses under this **Section 7.6** is not paid in full within 30 days after the Company has received a statement or statements requesting such amounts to be advanced, the Covered Person shall thereupon (but not before) be entitled to file suit to recover the unpaid amount of such claim. If successful in whole or in part, the Covered Person shall be entitled to be paid the expense of prosecuting such claim, or a claim brought by the Company to recover an advancement of expenses prior to the terms of an undertaking, to the fullest extent permitted by applicable law. In any such action, the Company shall have the burden of proving that the Covered Person is not entitled to the requested indemnification or advancement of expenses under applicable law. In (1) any suit brought by a Covered Person to enforce a right to indemnification hereunder (but not in a suit brought by a Covered Person to enforce a right to an advancement of expenses) it shall be a defense that, and (2) in any suit brought by the Company to recover an advancement of expenses pursuant to the terms of an undertaking, the Company shall be entitled to recover such expenses upon a final adjudication that, the Covered Person has not met any applicable standard for indemnification set forth in the Indiana state law. Neither the failure of the Company (including its directors who are not parties to such action, a committee of such directors, independent legal counsel or its stockholders) to have made a determination prior to the commencement of such suit that indemnification of the Covered Person is proper in the circumstances because the Covered Person has met the applicable standard of conduct set forth in the Indiana state law, nor an actual determination by the Company (including its directors who are not parties to such action, a committee of such directors, independent legal counsel or its stockholders) that the Covered Person has not met such applicable standard of conduct, shall create a presumption that the Covered Person has not met the applicable standard of conduct or, in the case of such a suit brought by the Covered Person, be a defense to such suit. In any suit brought by the Covered Person to enforce a right to indemnification or to an advancement of expenses hereunder, or brought by the Company to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the Covered Person is not entitled to be indemnified, or to such advancement of expenses, under this **Section 7.6** or otherwise shall be on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) The rights conferred on any Covered Person by this **Section 7.6** shall not be exclusive of any other rights that such Covered Person may have or hereafter acquire under any statute, any provision of the Articles of Incorporation, these Bylaws, any agreement or vote of stockholders or disinterested directors or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) This **Section 7.6** shall not limit the right of the Company, to the extent and in the manner permitted by applicable law, to indemnify and to advance expenses to persons other than Covered Persons when and as authorized by appropriate corporate action.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) The Company shall maintain insurance, at its expense, to protect itself and any person who is or was serving as a director, officer, employee or agent of the Company or is or was serving at the request of the Company as a director, officer, employee or agent of another Company, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Company would have the power to indemnify such person against such expense, liability or loss under Indiana, Kentucky, or West Virginia state law, or any other jurisdiction that the Company does business and deems it advisable to maintain insurance.

SECTION 7.7. <u>Facsimile and Electronic Signatures</u>. In addition to the provisions for use of facsimile or electronic signatures elsewhere specifically authorized in these Bylaws, facsimile or electronic signatures of any officer or officers of the Company may be used whenever and as authorized by the Board or a committee thereof, the Chairman of the Board, Chief Executive Officer or the President.

SECTION 7.8. <u>Time Periods</u>. In applying any provision of these Bylaws that require that an act be done or not done a specified number of days prior to an event or that an act be done during a period of a specified number of days prior to an event, calendar days shall be used, the day of the doing of the act shall be excluded, and the day of the event shall be included.

SECTION 7.9. <u>Reliance Upon Books, Reports and Records</u>. Each director, each member of any committee designated by the Board and each officer of the Company shall, in the performance of his duties, be fully protected in relying in good faith upon the records of the Company and upon information, opinions, reports or statements presented to the Company by any of the Company's officers or employees, or committees designated by the Board, or by any other person as to the matters the member reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company.

Page 19 of 20

**ARTICLE VIII** 

**AMENDMENTS**

SECTION 8.1. <u>Amendments</u>. In furtherance of, and not in limitation of, the powers conferred by the laws of the State of Indiana, the Board shall be expressly authorized to adopt, amend or repeal by Bylaws of the Company only with the approval of a majority of the Whole Board. Stockholders shall also have the power to adopt, amend or repeal the Bylaws of the Company without any requirement to obtain separate Board approval; provided, however, that, in addition to any vote of the holders of any class or series of stock of the Company required by law or by the Articles of Incorporation, the Bylaws of the Company may be adopted, altered, amended or repealed by the stockholders of the Company only by the affirmative vote of holders of not less than 60% in voting power of the then-outstanding shares of stock entitled to vote thereon, voting together as a single class. No Bylaws hereafter made or adopted, nor any repeal of or amendment thereto, shall invalidate any prior act of the Board that was valid at the time it was taken. So long as the Stockholders' Agreement remains in effect, the Board shall not approve any amendment, alteration or repeal of any provision of these Bylaws, or the adoption of any new Bylaw, that would be contrary to or inconsistent with the then applicable terms of the Stockholders' Agreement.

Notwithstanding the foregoing, (1) no amendment to the Stockholders' Agreement (whether or not such amendment modifies any provision to the Stockholders' Agreement to which these Bylaws are subject) shall be deemed an amendment of these Bylaws for purposes of this **Section 8.1**, and (2) no amendment, alteration or repeal of **Section 7.6** shall adversely affect any right or protection existing under these Bylaws immediately prior to such amendment, alteration or repeal, including any right or protection of a present or former director, officer or employee thereunder in respect of any act or omission occurring prior to the time of such amendment.

These Bylaws adopted as of the date first written above:

---

| |
|:---|
| */s/ Mark C. Jensen* |
| Mark C. Jensen, <br> Chief Executive Officer<br> American Resources Corporation, <br> sole shareholder of Electrified Materials Corporation |

---

<br> <u>Page 20 of 20</u>

## Exhibit 10.1

**EXHIBIT 10.01**

**THIS EMPLOYMENT AGREEMENT** ("Agreement") is made and entered into as of the 31 day of December 2025, by and between Electrified Materials Corporation, an Indiana corporation with a mailing address of 12115 Visionary Way, Fishers Indiana 46038 (the "Company"), and Christopher M. Dreska (the "Executive").

**<u>-PRELIMINARY STATEMENTS-</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** The Company and Executive desire to enter into this Agreement to establish the terms and conditions of the employment for Executive by the Company as its Chief Executive Officer, and to provide that Executive will not engage in activities that are detrimental to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Executive acknowledges that the Company has acquired or developed certain proprietary information at considerable expense and that any unauthorized disclosure or use of this information would adversely affect the successful conduct of the Company's business.

**NOW, THEREFORE,** in consideration of the recitals and mutual promises contained herein, the parties hereto agree as follows:

**<u>AGREEMENT</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment</u>. The Company hereby employs Executive as its Chief Executive Officer and Executive accepts employment by the Company and agrees to serve the Company as its Chief Executive Officer, upon the terms and conditions hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Term</u>. The term of Executive's employment shall be for a period commencing on the date hereof and ending on December 31, 2026, and thereafter for additional periods of one year each unless and until Executive's employment terminates prior thereto as provided in Section 5 (the "Term"). At the end of the Term, the provisions of Sections 1, 2, 3, 4 (except Section 4(j) to the extent provided for in that Section) and 5 shall no longer be applicable; however, the other provisions of this Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Duties; Standard Of Services</u>. Executive shall be employed by the Company as its Chief Executive Officer, reporting only to the Board of Directors of the Company (the "Board"). Subject to review and directions by the Board, Executive shall have supervision and control over, and responsibility for, the oversight of the Company's executive operational function(s). Executive shall also have such other powers and duties as the Board may reasonably prescribe from time to time, provided such duties are consistent with his status as the Chief Executive Officer of the Company. For so long as he is employed hereunder, Executive shall (a) devote adequate time and energy to the business and affairs of the Company, as the Executive deems necessary in the Executive's sole judgement, (b) perform his duties hereunder effectively, diligently, and to the best of his skill and ability, (c) use his best efforts, skill and ability to promote the interests of the Company, and (d) perform all duties that may be required of him by virtue of his position as the Chief Executive Officer of the Company. Company acknowledges and agrees that Executive may have fiduciary responsibilities to other companies, including other companies directly competing with the Company's business, and Executive may, and be allowed to, pursue transactions and/or businesses outside of the Company, regardless of their nature.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation and Benefits</u>. For the services to be rendered by Executive hereunder, the Company shall, during the Term, pay compensation and provide benefits to Executive as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Base Salary</u>. The Company shall pay Executive a minimum annual base salary of $75,000.00 per year for the calendar year 2026. Thereafter, starting on January 1, 2027, and all subsequent years, the base salary shall be $150,000.00 per year (for any given year, the "Base Salary"). The Base Salary shall be paid to the executive on a monthly basis, at the beginning of each calendar month, by the Company, unless the Company has adopted a compensation plan that provides for more frequent payment of wages and salaries, in which case, Executive will be paid under similar frequency of payments. The Base Salary shall accrue until such time as the Company raises a minimum of Five Million Dollars ($5,000,000.00) of external capital, at which point the entire amount of accrued Base Salary due to Executive shall be paid immediately in cash and Executive will be paid the Base Salary in cash thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incentive Stock Option Plan</u>. Executive shall be allowed to participate in the Incentive Stock Option Plan, should such a plan be approved by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conversion of Compensation to Common Stock</u>. For any compensation of the Executive under this Agreement that is due and unpaid to Executive (the "Accrued Compensation"), Executive shall, at Executive's sole option, have the ability to elect to have any part of the Accrued Compensation be converted into Common Stock of the Company. The Common Stock share price used in the conversion of the Accrued Compensation will be either (1) if the Common Stock is traded publicly on an exchange, the closing share price on the day that such written election by Executive occurs, or (2) if the Common Stock is not traded publicly on an exchange, the same share price as the Company's most-recent non-public sale of Common Stock. Any conversions to Common Stock under this Section shall occur immediately upon written notice from the Executive to the Board of Directors of the Company. There shall be no limitation on the proportion of Accrued Compensation convertible to Common Stock by the Executive, or frequency of such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expenses</u>. The Company shall reimburse Executive for his reasonable direct, out-of-pocket, ordinary and necessary business expenses incurred in the performance of his duties hereunder and for which Executive properly accounts in accordance with the Company's policy as established by the Board from time to time for its employees generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Vacation; Sick Pay; Holidays</u>. Executive shall be entitled to paid vacation during the Term in accordance with the Company's vacation policy for officers, generally. Executive shall also be entitled to all paid holidays given by the Company to its employees, generally, and a reasonable number of paid sick days as determined by the Board from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Benefits</u>. Executive shall be eligible to participate in the employee benefit plans which the Company maintains from time to time for its executive employees generally. Participation in such plans shall be subject to the same eligibility requirements, in accordance with the same terms and conditions, as are applicable to other officers and employees of the Company. Nothing paid to the Executive under any employee benefit plan shall be deemed to be in lieu of the Annual Base Salary or Performance Bonus which is payable to Executive pursuant to the terms of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Tuition Reimbursement Policy</u>. Executive shall be eligible for tuition reimbursement for pre-approved higher education expenses. The goal of any course work is to increase the Executive's knowledge, skills and job effectiveness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Indemnification</u>**.** The Company will, to the maximum extent permitted by law, indemnify and hold the Executive harmless against expenses, including reasonable attorney fees, judgments, fines, settlements, and other amounts actually and reasonably incurred in connection with any proceeding arising by reason of the Executive's actions or omissions taken within the scope of his employment on behalf of the Company. However, the Executive shall not be entitled to indemnification where his actions or omissions are a result of his gross negligence or willful misconduct. The Company will advance to the Executive any expense incurred in defending any such proceeding to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Protection Against Personal Guarantees.</u> Should the Executive be required to personally guarantee any debt(s) held by the Company, at any time in the past or future, the Company will first exhaust all of its assets to satisfy any personal guarantee(s) prior to the Executive being required to personally satisfy such debts. Any personal guarantees made by the Executive for the benefit of the Company must first be pre-approved in writing by the President and shall carry an annual fee payable to the Executive in the amount of a percent of the guaranteed amount, payable monthly, with the percent to be agreed between the Executive and the Company at the time of the personal guarantee request. This Section 4(j) shall survive the Term of this Agreement to the extent that any personal guarantees made by the Executive for the benefit of the Company remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Termination of Executive's Employment</u>. The Term shall terminate, and Executive's employment with the Company shall terminate, upon the first to occur 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;(a) <u>Death</u>. The death of Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disability</u>. Executive is under a "disability," which for purposes of this Agreement shall mean a physical or mental condition which (x) renders Executive incapable of performing his duties as provided by Section 3 in a manner reasonably satisfactory to the Board, and which continues for a period of more than 90 days (whether or not consecutive) during any 180-day period, or (y) results in Executive being eligible for long-term disability benefits under any long-term disability program provided by the Company or any disability income insurance policy under which Executive is an insured or (z) results in Executive being eligible for long-term disability benefits under the Social Security Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>For Cause</u>. The Board reasonably determines that Executive shall be discharged for "Cause," which for purposes of this Agreement shall mean the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) significant dishonesty by Executive which materially and adversely affects the Company or any customer of or supplier to the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) conduct by Executive which has brought the Company into substantial public disgrace or substantial disrepute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material breach of any term, provision, representation or warranty of Executive under this Agreement which fails to be cured by Executive within a reasonable period of time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material misconduct by Executive in the performance of his duties hereunder which fails to be cured by Executive within a reasonable period of time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any material neglect by Executive of his duties hereunder; provided, that if any breach, misconduct or neglect described in (iii), (iv) or (v), above, is capable of remedy, a written notice and an opportunity to cure such breach, misconduct or neglect shall be afforded Executive, and, in such event, cause shall exist for Executive's discharge only if (x) Executive shall fail to cure such breach, misconduct or neglect within a reasonable period after notice, or (y) if such breach, misconduct or neglect is timely cured, Executive shall thereafter repeat such breach, misconduct or neglect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice</u>. Either the Executive or the Company, at any time prior to September 30 of any particular calendar year, gives written notice to the other party that the Term will end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Benefits Upon Termination of Employment or Expiration of the Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination During Term for Cause</u>. If, prior to the expiration of the Term, Executive's employment is terminated for Cause pursuant to Section 5(c)., Executive (or, in the event of Executive's death or disability, his estate or personal representative) shall be entitled to receive his Base Salary and benefits accrued (but unpaid) at the time of termination under Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination During Term for Other Than Cause</u>. If, prior to the expiration of the Term, Executive's employment is terminated pursuant to Section 5, other than for Cause pursuant to Section 5(c), Executive (or, in the event of Executive's death or disability, his estate or personal representative) shall be entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Payment of any portion of Executive's Base Salary then in effect, which is earned but unpaid as of the date of termination and benefits accrued (but unpaid) at the time of termination under Section 5; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Severance payments, which shall be equal to the Executive's then Base Salary under this Agreement, payable in monthly installments commencing on the first day of the month and continuing for twelve (12) months thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change in Control</u>. If during the term of the contract, there is a change in control event involving the Company, the contract shall stay in force with the surviving operating entity or have the Executive's option of being bought out for 100% of base salary plus any earned and accrued bonuses.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expiration of the Term</u>. Upon termination of Executive's employment solely by reason of the expiration of the Term, Executive shall be entitled to receive the Base Salary then in effect and benefits accrued (but unpaid) at the time of expiration of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Binding Agreement</u>. This is a contract for personal service by Executive and shall not be assigned by Executive. Except as above provided, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective personal representatives, heirs, successors and assigns. The term Company, as used in this Agreement, shall also include any successors or assigns of the Company, or any surviving corporation to any merger, consolidation or combination of the Company with any other corporation or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Waiver</u>. The waiver by the Company of a breach of any provision of this Agreement by Executive shall not operate or be construed as a waiver of any subsequent breach by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entire Agreement</u>. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof. This Agreement may not be changed orally, but only by an amendment in writing signed by Executive and the Company and approved by the Board. Except for accrued but unpaid compensation and benefits as of the date hereof, all prior agreements or understandings concerning Executive's employment by the Company or its predecessor are hereby canceled and superseded by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Severability</u>. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, in such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. If it shall be determined at any time by any court of competent jurisdiction that any provision of this Agreement or any portion thereof is unreasonably restrictive or unenforceable, then such portions as shall have been determined unreasonably restrictive or unenforceable shall thereupon be deemed to be so amended as to make such restrictions reasonable in the determination of such court, and the provisions, as so amended, shall be enforceable between the parties to the same extent as if such amendment had been made prior to the date of any alleged breach of such provision. Notwithstanding the foregoing, each party hereto agrees that it has reviewed the provisions of this Agreement, and that the same, taken as a whole, are fair and reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Headings</u>. The headings contained in this Agreement are for convenience only and shall not be deemed a part of this Agreement in construing or interpreting the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. This Agreement shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Indiana, without giving effect to any conflict of law, rule or principle that might require the application of the laws of another jurisdiction.

Page 5 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Dispute Resolution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>In General</u>. If any dispute shall arise between the Executive and the Company as to their rights or liabilities under this Agreement, the dispute shall be exclusively determined, and the dispute shall be settled in the manner set forth herein,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Mediation</u>. The parties agree to attempt to resolve any dispute, claim or controversy arising out of or relating to this Agreement by mediation, which shall be conducted under the then current mediation procedures of The CPR Institute for Conflict Prevention & Resolution or any other procedure upon which the parties may agree. The parties further agree that their respective good faith participation in mediation is a condition precedent to pursuing any other available legal or equitable remedy, including litigation, arbitration or other dispute resolution procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Litigation</u>. In the event mediation does not resolve the matters between the parties, any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement will be governed by and construed solely and exclusively in accordance with the laws of state of Indiana without regard to any statutory or common-law provision pertaining to conflicts of laws Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world.

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the day, month and year first above written.

---

| | |
|:---|:---|
| Electrified Materials Corporation |  |
| By: */s/ Mark C. Jensen* | */s/ Mark C. Jensen* |
| Mark C. Jensen, Chairman of the Board of Directors |  |
| EXECUTIVE: |  |
| */s/ Christopher M. Dreska* |  |
| Christopher M. Dreska |  |

---

<br> <u>Page 6 of 6</u>

## Exhibit 10.2

**EXHIBIT 10.02**

**THIS EMPLOYMENT AGREEMENT** ("Agreement") is made and entered into as of the 31 day of December 2025, by and between Electrified Materials Corporation, an Indiana corporation with a mailing address of 12115 Visionary Way, Fishers Indiana 46038 (the "Company"), and Kirk P. Taylor (the "Executive").

**<u>-PRELIMINARY STATEMENTS-</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** The Company and Executive desire to enter into this Agreement to establish the terms and conditions of the employment for Executive by the Company as its Chief Financial Officer, and to provide that Executive will not engage in activities that are detrimental to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Executive acknowledges that the Company has acquired or developed certain proprietary information at considerable expense and that any unauthorized disclosure or use of this information would adversely affect the successful conduct of the Company's business.

**NOW, THEREFORE,** in consideration of the recitals and mutual promises contained herein, the parties hereto agree as follows:

**<u>AGREEMENT</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment</u>. The Company hereby employs Executive as its Chief Financial Officer and Executive accepts employment by the Company and agrees to serve the Company as its Chief Financial Officer, upon the terms and conditions hereinafter set forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Term</u>. The term of Executive's employment shall be for a period commencing on the date hereof and ending on February 1, 2025, and thereafter for additional periods of one year each unless and until Executive's employment terminates prior thereto as provided in Section 5 (the "Term"). At the end of the Term, the provisions of Sections 1, 2, 3, 4 (except Section 4(j) to the extent provided for in that Section) and 5 shall no longer be applicable; however, the other provisions of this Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Duties; Standard Of Services</u>. Executive shall be employed by the Company as its Chief Financial Officer, reporting only to the Chief Executive Officer. Subject to review and directions by the Board, Executive shall have supervision and control over, and responsibility for, the oversight of the Company's executive operational function(s). Executive shall also have such other powers and duties as the Board may reasonably prescribe from time to time, provided such duties are consistent with his status as the Chief Financial Officer of the Company. For so long as he is employed hereunder, Executive shall (a) devote adequate time and energy to the business and affairs of the Company, as the Executive deems necessary in the Executive's sole judgement, (b) perform his duties hereunder effectively, diligently, and to the best of his skill and ability, (c) use his best efforts, skill and ability to promote the interests of the Company, and (d) perform all duties that may be required of him by virtue of his position as the Chief Executive Officer of the Company. Company acknowledges and agrees that Executive may have fiduciary responsibilities to other companies, including other companies directly competing with the Company's business, and Executive may, and be allowed to, pursue transactions and/or businesses outside of the Company, regardless of their nature.

Page 1 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation and Benefits</u>. For the services to be rendered by Executive hereunder, the Company shall, during the Term, pay compensation and provide benefits to Executive as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Annual Base Salary</u>. The Company shall pay Executive a minimum annual base salary of $75,000.00 per year for the calendar year 2026. Thereafter, starting on January 1, 2027, and all subsequent years, the base salary shall be $150,000.00 per year (for any given year, the "Base Salary"). The Base Salary shall be paid to the executive on a monthly basis, at the beginning of each calendar month, by the Company, unless the Company has adopted a compensation plan that provides for more frequent payment of wages and salaries, in which case, Executive will be paid under similar frequency of payments. The Base Salary shall accrue until such time as the Company raises a minimum of Five Million Dollars ($5,000,000.00) of external capital, at which point the entire amount of accrued Base Salary due to Executive shall be paid immediately in cash and Executive will be paid the Base Salary in cash thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incentive Stock Option Plan</u>. Executive shall be allowed to participate in the Incentive Stock Option Plan, should such a plan be approved by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conversion of Compensation to Common Stock</u>. For any compensation of the Executive under this Agreement that is due and unpaid to Executive (the "Accrued Compensation"), Executive shall, at Executive's sole option, have the ability to elect to have any part of the Accrued Compensation be converted into Common Stock of the Company. The Common Stock share price used in the conversion of the Accrued Compensation will be either (1) if the Common Stock is traded publicly on an exchange, the closing share price on the day that such written election by Executive occurs, or (2) if the Common Stock is not traded publicly on an exchange, the same share price as the Company's most-recent non-public sale of Common Stock. Any conversions to Common Stock under this Section shall occur immediately upon written notice from the Executive to the Board of Directors of the Company. There shall be no limitation on the proportion of Accrued Compensation convertible to Common Stock by the Executive, or frequency of such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expenses</u>. The Company shall reimburse Executive for his reasonable direct, out-of-pocket, ordinary and necessary business expenses incurred in the performance of his duties hereunder and for which Executive properly accounts in accordance with the Company's policy as established by the Board from time to time for its employees generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Vacation; Sick Pay; Holidays</u>. Executive shall be entitled to paid vacation during the Term in accordance with the Company's vacation policy for officers, generally. Executive shall also be entitled to all paid holidays given by the Company to its employees, generally, and a reasonable number of paid sick days as determined by the Board from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Benefits</u>. Executive shall be eligible to participate in the employee benefit plans which the Company maintains from time to time for its executive employees generally. Participation in such plans shall be subject to the same eligibility requirements, in accordance with the same terms and conditions, as are applicable to other officers and employees of the Company. Nothing paid to the Executive under any employee benefit plan shall be deemed to be in lieu of the Annual Base Salary or Performance Bonus which is payable to Executive pursuant to the terms of this Agreement.

Page 2 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Tuition Reimbursement Policy</u>. Executive shall be eligible for tuition reimbursement for pre-approved higher education expenses. The goal of any course work is to increase the Executive's knowledge, skills and job effectiveness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Indemnification</u>**.** The Company will, to the maximum extent permitted by law, indemnify and hold the Executive harmless against expenses, including reasonable attorney fees, judgments, fines, settlements, and other amounts actually and reasonably incurred in connection with any proceeding arising by reason of the Executive's actions or omissions taken within the scope of his employment on behalf of the Company. However, the Executive shall not be entitled to indemnification where his actions or omissions are a result of his gross negligence or willful misconduct. The Company will advance to the Executive any expense incurred in defending any such proceeding to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Protection Against Personal Guarantees.</u> Should the Executive be required to personally guarantee any debt(s) held by the Company, at any time in the past or future, the Company will first exhaust all of its assets to satisfy any personal guarantee(s) prior to the Executive being required to personally satisfy such debts. Any personal guarantees made by the Executive for the benefit of the Company must first be pre-approved in writing by the President and shall carry an annual fee payable to the Executive in the amount of a percent of the guaranteed amount, payable monthly, with the percent to be agreed between the Executive and the Company at the time of the personal guarantee request. This Section 4(j) shall survive the Term of this Agreement to the extent that any personal guarantees made by the Executive for the benefit of the Company remain outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Termination of Executive's Employment</u>. The Term shall terminate, and Executive's employment with the Company shall terminate, upon the first to occur 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;(a) <u>Death</u>. The death of Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disability</u>. Executive is under a "disability," which for purposes of this Agreement shall mean a physical or mental condition which (x) renders Executive incapable of performing his duties as provided by Section 3 in a manner reasonably satisfactory to the Board, and which continues for a period of more than 90 days (whether or not consecutive) during any 180-day period, or (y) results in Executive being eligible for long-term disability benefits under any long-term disability program provided by the Company or any disability income insurance policy under which Executive is an insured or (z) results in Executive being eligible for long-term disability benefits under the Social Security Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>For Cause</u>. The Board reasonably determines that Executive shall be discharged for "Cause," which for purposes of this Agreement shall mean the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) significant dishonesty by Executive which materially and adversely affects the Company or any customer of or supplier to the Company;

Page 3 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) conduct by Executive which has brought the Company into substantial public disgrace or substantial disrepute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material breach of any term, provision, representation or warranty of Executive under this Agreement which fails to be cured by Executive within a reasonable period of time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material misconduct by Executive in the performance of his duties hereunder which fails to be cured by Executive within a reasonable period of time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any material neglect by Executive of his duties hereunder; provided, that if any breach, misconduct or neglect described in (iii), (iv) or (v), above, is capable of remedy, a written notice and an opportunity to cure such breach, misconduct or neglect shall be afforded Executive, and, in such event, cause shall exist for Executive's discharge only if (x) Executive shall fail to cure such breach, misconduct or neglect within a reasonable period after notice, or (y) if such breach, misconduct or neglect is timely cured, Executive shall thereafter repeat such breach, misconduct or neglect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice</u>. Either the Executive or the Company, at any time prior to September 30 of any particular calendar year, gives written notice to the other party that the Term will end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Benefits Upon Termination of Employment or Expiration of the Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination During Term for Cause</u>. If, prior to the expiration of the Term, Executive's employment is terminated for Cause pursuant to Section 5(c)., Executive (or, in the event of Executive's death or disability, his estate or personal representative) shall be entitled to receive his Base Salary and benefits accrued (but unpaid) at the time of termination under Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination During Term for Other Than Cause</u>. If, prior to the expiration of the Term, Executive's employment is terminated pursuant to Section 5, other than for Cause pursuant to Section 5(c), Executive (or, in the event of Executive's death or disability, his estate or personal representative) shall be entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Payment of any portion of Executive's Base Salary then in effect, which is earned but unpaid as of the date of termination and benefits accrued (but unpaid) at the time of termination under Section 5; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Severance payments, which shall be equal to the Executive's then Base Salary under this Agreement, payable in monthly installments commencing on the first day of the month and continuing for twelve (12) months thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change in Control</u>. If during the term of the contract, there is a change in control event involving the Company, the contract shall stay in force with the surviving operating entity or have the Executive's option of being bought out for 100% of base salary plus any earned and accrued bonuses.

Page 4 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expiration of the Term</u>. Upon termination of Executive's employment solely by reason of the expiration of the Term, Executive shall be entitled to receive the Base Salary then in effect and benefits accrued (but unpaid) at the time of expiration of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Binding Agreement</u>. This is a contract for personal service by Executive and shall not be assigned by Executive. Except as above provided, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective personal representatives, heirs, successors and assigns. The term Company, as used in this Agreement, shall also include any successors or assigns of the Company, or any surviving corporation to any merger, consolidation or combination of the Company with any other corporation or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Waiver</u>. The waiver by the Company of a breach of any provision of this Agreement by Executive shall not operate or be construed as a waiver of any subsequent breach by Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entire Agreement</u>. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof. This Agreement may not be changed orally, but only by an amendment in writing signed by Executive and the Company and approved by the Board. Except for accrued but unpaid compensation and benefits as of the date hereof, all prior agreements or understandings concerning Executive's employment by the Company or its predecessor are hereby canceled and superseded by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Severability</u>. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, in such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. If it shall be determined at any time by any court of competent jurisdiction that any provision of this Agreement or any portion thereof is unreasonably restrictive or unenforceable, then such portions as shall have been determined unreasonably restrictive or unenforceable shall thereupon be deemed to be so amended as to make such restrictions reasonable in the determination of such court, and the provisions, as so amended, shall be enforceable between the parties to the same extent as if such amendment had been made prior to the date of any alleged breach of such provision. Notwithstanding the foregoing, each party hereto agrees that it has reviewed the provisions of this Agreement, and that the same, taken as a whole, are fair and reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Headings</u>. The headings contained in this Agreement are for convenience only and shall not be deemed a part of this Agreement in construing or interpreting the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. This Agreement shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Indiana, without giving effect to any conflict of law, rule or principle that might require the application of the laws of another jurisdiction.

Page 5 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Dispute Resolution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>In General</u>. If any dispute shall arise between the Executive and the Company as to their rights or liabilities under this Agreement, the dispute shall be exclusively determined, and the dispute shall be settled in the manner set forth herein,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Mediation</u>. The parties agree to attempt to resolve any dispute, claim or controversy arising out of or relating to this Agreement by mediation, which shall be conducted under the then current mediation procedures of The CPR Institute for Conflict Prevention & Resolution or any other procedure upon which the parties may agree. The parties further agree that their respective good faith participation in mediation is a condition precedent to pursuing any other available legal or equitable remedy, including litigation, arbitration or other dispute resolution procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Litigation</u>. In the event mediation does not resolve the matters between the parties, any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement will be governed by and construed solely and exclusively in accordance with the laws of state of Indiana without regard to any statutory or common-law provision pertaining to conflicts of laws Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world.

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the day, month and year first above written.

---

| | |
|:---|:---|
| Electrified Materials Corporation |  |
| By: */s/ Mark C. Jensen* | */s/ Mark C. Jensen* |
| Mark C. Jensen, Chairman of the Board of Directors |  |
| EXECUTIVE: |  |
| */s/ Kirk P. Taylor* |  |
| Kirk P. Taylor |  |

---

<br> <u>Page 6 of 6</u>

## Exhibit 10.3

**EXHIBIT 10.03**

**Electrified Material Corporation**

**2025 OMNIBUS INCENTIVE PLAN**

ELECTRIFIED MATERIALS CORPORATION

2025 OMNIBUS INCENTIVE PLAN

<u>**TABLE OF CONTENTS**</u>

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE I Establishment, Purpose, Duration | ARTICLE I Establishment, Purpose, Duration | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1 | Purposes of the Plan | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.2 | Effective Date and Duration | 1 |
| ARTICLE II Definitions | ARTICLE II Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.1 | Affiliate | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.2 | Alternative Award | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.3 | Award | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.4 | Award Agreement | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.5 | Board or Board of Directors | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.6 | Cash-Based Award | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.7 | Cause | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.8 | Change in Control | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.9 | Code | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.10 | Committee | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.11 | Company | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.12 | Disability or Disabled | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.13 | Employee | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.14 | ERISA | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.15 | Exchange Act | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.16 | Fair Market Value | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.17 | Good Reason | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.18 | Grant Price | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.19 | Incentive Stock Option or ISO | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.20 | Independent Contractor | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.21 | Nonemployee Director | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.22 | Nonqualified Stock Option or NQSO | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.23 | Option | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.24 | Option Exercise Price | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.25 | Participant | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.26 | Performance Goal | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.27 | Performance Measure | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.28 | Performance Period | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.29 | Performance Shares | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.30 | Performance Unit | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.31 | Period of Restriction | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.32 | Plan | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.33 | Restricted Stock | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.34 | Restricted Stock Unit or RSU | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.35 | Retirement | 7 |

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.36 | Service | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.37 | Shares | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.38 | Stock Appreciation Right or SAR | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.39 | Subsidiary | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.40 | Substitute Award | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.41 | Tandem SAR | 7 |
| ARTICLE III Administration | ARTICLE III Administration | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1 | Administration by the Committee | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.2 | Powers of the Committee | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.3 | Action by the Committee | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.4 | Indemnification | 9 |
| ARTICLE IV Stock Subject to the Plan | ARTICLE IV Stock Subject to the Plan | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.1 | Aggregate Shares | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.2 | Share Counting | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.3 | Adjustment to Number of Shares | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.4 | Corporate Transactions | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.5 | Minimum Vesting Requirements | 11 |
| ARTICLE V Eligibility and Participation | ARTICLE V Eligibility and Participation | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.1 | Eligibility to Receive Awards | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.2 | Participation in the Plan | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.3 | Nonemployee Director Limitations | 11 |
| ARTICLE VI Options | ARTICLE VI Options | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.1 | Grant of Options | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.2 | Option Exercise Price | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.3 | Exercise of Options | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.4 | Payment of Option Exercise Price | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.5 | Termination of Service | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.6 | Additional Rules for Incentive Stock Options | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.7 | Other Terms | 14 |
| ARTICLE VII Stock Appreciation Rights | ARTICLE VII Stock Appreciation Rights | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.1 | Grant of SARs | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.2 | Grant Price | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.3 | Term of SAR | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.4 | Special Rules for Exercise of Tandem SARs | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.5 | Termination of Service | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.6 | Payment | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.7 | Other Terms | 15 |

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE VIII Restricted Stock and Restricted Stock Units | ARTICLE VIII Restricted Stock and Restricted Stock Units | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.1 | Grants | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.2 | Period of Restriction | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.3 | Certificates | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.4 | Lapse of Restrictions | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.5 | Termination of Service | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.6 | Code Section 83(b) Election | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.7 | Other Terms | 17 |
| ARTICLE IX Performance Shares Awards | ARTICLE IX Performance Shares Awards | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.1 | Grants of Performance Shares | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.2 | Performance Period and Performance Goals | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.3 | Delivery of Shares | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.4 | Termination of Service | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.5 | Other Terms | 17 |
| ARTICLE X Performance Units | ARTICLE X Performance Units | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.1 | Grant of Performance Units | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.2 | Performance Period and Performance Goals | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.3 | Value of Performance Units | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.4 | Payment of Performance Units | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.5 | Termination of Service | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.6 | Other Terms | 18 |
| ARTICLE XI Cash-Based Awards | ARTICLE XI Cash-Based Awards | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.1 | Grant of Cash-Based Awards | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.2 | Performance Period and Performance Goals | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.3 | Value of Cash-Based Awards | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.4 | Payment of Cash-Based Awards | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.5 | Termination of Service | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.6 | Other Terms | 19 |
| ARTICLE XII Other Stock-Based Awards | ARTICLE XII Other Stock-Based Awards | 19 |
| ARTICLE XIII Dividends and Dividend Equivalents | ARTICLE XIII Dividends and Dividend Equivalents | 19 |
| ARTICLE XIV Beneficiary Designation | ARTICLE XIV Beneficiary Designation | 20 |
| ARTICLE XV Change in Control | ARTICLE XV Change in Control | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 15.1 | Effect of Change in Control | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 15.2 | Participant Elections to Minimize Code Section 4999 Excise Tax | 21 |
| ARTICLE XVI Deferrals | ARTICLE XVI Deferrals | 22 |
| ARTICLE XVII Withholding | ARTICLE XVII Withholding | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 17.1 | Tax Withholding | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 17.2 | Share Withholding | 22 |

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iii<br>

**TABLE OF CONTENTS**

(continued)

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE XVIII Compliance with Code Section 409A | ARTICLE XVIII Compliance with Code Section 409A | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 18.1 | Awards Subject to Code Section 409A | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 18.2 | No Acceleration of Distributions | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 18.3 | Separation from Service | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 18.4 | Timing of Payment to a Specified Employee | 23 |
| ARTICLE XIX Amendment and Termination | ARTICLE XIX Amendment and Termination | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 19.1 | Amendment, Modification, and Termination of the Plan | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 19.2 | Amendment of Awards | 24 |
| ARTICLE XX Miscellaneous | ARTICLE XX Miscellaneous | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.1 | Approval Restrictions | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.2 | Securities Law Compliance | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.3 | Gender and Number | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.4 | Rights as a Stockholder | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.5 | Forfeiture | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.6 | Rights as Employee, Independent Contractor, or Nonemployee Director | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.7 | Fractional Shares | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.8 | Effect on Other Plans | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.9 | No Constraint on Corporate Action | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.10 | Over/Under Payments | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.11 | Unfunded Obligation | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.12 | No Liability With Respect to Adverse Tax Treatment | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.13 | Severability | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.14 | Requirements of Law | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.15 | Governing Law | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.16 | Successors | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.17 | Provisions Regarding Transferability of Awards | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.18 | Non-ERISA Plan | 28 |

---

iv<br>

**Electrified Materials Corporation**

**2025 Omnibus Incentive Plan**

**ARTICLE I**

**<u>Establishment, Purpose, Duration</u>**

**Section 1.1 <u>Purposes of the Plan</u>**. The Plan is designed to promote the achievement of both short-term and long-term objectives of the Company by (a) aligning compensation of Participants with the interests of Company stockholders, (b) enhancing the interest of Participants in the growth and success of the Company, and (c) attracting and retaining Participants of outstanding competence.

**Section 1.2 <u>Effective Date and Duration</u>.** This Plan shall be effective as of January 1, 2025 and shall remain in effect, subject to the right of the Board or the Committee to amend and terminate the Plan at any time as provided in this Plan, until all Shares subject to it shall have been purchased or acquired according to the Plan's provisions. In no event, however, may an Award be granted under the Plan more than ten years after the date the Plan was approved by the stockholders.

**ARTICLE II**

**<u>Definitions</u>**

Whenever used in the Plan, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized:

**Section 2.1 <u>Affiliate</u>**. "Affiliate" means any entity that is a Subsidiary or a parent corporation, as defined in Code Section 424(e), of the Company, or any other entity designated by the Committee as covered by the Plan in which the Company has, directly or indirectly, at least a 20% voting interest.

**Section 2.2 <u>Alternative Award</u>**. "Alternative Award" has the meaning set forth in Section 15.1.

**Section 2.3 <u>Award</u>**. "Award" means any Option, SAR, Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, Cash-Based Award, or other Article XII stock-based award granted to a Participant under the Plan.

**Section 2.4 <u>Award Agreement</u>**. "Award Agreement" means a written or electronic statement or agreement prepared by the Company that sets forth the terms, conditions and restrictions applicable to Awards granted under the Plan.

**Section 2.5 <u>Board or Board of Directors</u>**. "Board" or "Board of Directors" means the Board of Directors of the Company.

**Section 2.6 <u>Cash-Based Award</u>**. "Cash-Based Award" means an Award granted to a Participant, as described in Article XI herein.

**Section 2.7 <u>Cause</u>**. "Cause," unless such term or an equivalent term is otherwise defined with respect to an Award by the Participant's Award Agreement, shall be as defined in any employment agreement between the Company and a Participant; provided however, that if there is no such employment agreement, "Cause" shall mean any of the following: (a) the Participant's conviction of any criminal violation involving dishonesty, fraud or breach of trust; (b) the Participant's willful engagement in any misconduct in the performance of his or her duty that materially injures the Company; (c) the Participant's performance of any act which would adversely impact the business of the Company; or (d) the Participant's willful and substantial nonperformance of assigned duties. Notwithstanding the foregoing, the Committee shall have sole discretion with respect to the application of the provisions of subsections (a)-(d) above, and such exercise of discretion shall be conclusive and binding upon the Participant and all other persons.

**Section 2.8 <u>Change in Control</u>**. "Change in Control" means, except as otherwise may be provided in an Award Agreement or employment or other applicable agreement, the occurrence of any of the following events described below:

(a) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if the Company's stockholders immediately prior to such merger, consolidation or reorganization cease to directly or indirectly own immediately after such merger, consolidation or reorganization at least a majority of the combined voting power of the continuing or surviving entity's securities outstanding immediately after such merger, consolidation or reorganization;

(b) The consummation of the sale, transfer or other disposition of all or substantially all of the Company's assets (other than (x) to a corporation or other entity of which at least a majority of its combined voting power is owned directly or indirectly by the Company, (y) to a corporation or other entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Shares of the Company or (z) to a continuing or surviving entity described in subsection (a) above in connection with a merger, consolidation or reorganization that does not result in a Change in Control under subsection (a);

(c) A change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by Nonemployee Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election; or

(d) The consummation of any transaction as a result of which any Person becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least fifty percent (50%) of the total voting power represented by the Company's then outstanding voting securities. For purposes of this Section 2(h), the term "Person" shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude:

1. a trustee or other fiduciary holding securities under an employee benefit plan of the Company or an affiliate of the Company;

2. a corporation or other entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Common Stock of the Company;

3. the Company; and

4. a corporation or other entity of which at least a majority of its combined voting power is owned directly or indirectly by the Company.

A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company's incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company's securities immediately before such transactions. In addition, if any Person (as defined above) is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered to cause a Change in Control. If required for compliance with Code Section 409A, in no event will a Change in Control be deemed to have occurred if such transaction is not also a "change in the ownership or effective control of" the Company or "a change in the ownership of a substantial portion of the assets of" the Company as determined under Treasury Regulation Section 1.409A-3(i)(5) (without regard to any alternative definition thereunder).

**Section 2.9 <u>Code</u>**. "Code" means the Internal Revenue Code of 1986, as amended from time to time. Reference to a specific sect ion of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing, or superseding such section or regulation.

**Section 2.10 <u>Committee</u>**. "Committee" means the Compensation Committee of the Board of Directors, or such other committee as the Board shall appoint from time to time, which shall consist of two or more directors all of whom are intended to satisfy the requirements for a "Nonemployee director" within the meaning of Rule 16b-3 of the Exchange Act, and an "independent director" under the rules of the New York Stock Exchange (or any other national securities exchange which is the principal exchange on which the Shares may then be traded); provided, however, that any action taken by the Committee shall be valid and effective whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership specified above.

**Section 2.11 <u>Company</u>**. "Company" means AMERICAN METALS LLC, an Indiana limited liability company, or any successor thereto.

**Section 2.12 <u>Disability or Disabled</u>**. "Disability" or "Disabled" means a condition that (a) causes the Participant to be unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, (b) causes the Participant, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, to receive income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company or its Affiliates or (c) causes the Participant to be eligible to receive Social Security disability payments. The Committee, in its sole discretion, shall determine the date of any Disability.

**Section 2.13 <u>Employee</u>.** "Employee" means any person who is an employee of the Company or any Affiliate; provided, however, that with respect to ISOs, "Employee" means any person who is considered an employee of the Company or any Affiliate for purposes of Treasury Regulation Section 1.421-1(h**).**

**Section 2.14 <u>ERISA</u>**. "ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

**Section 2.15 <u>Exchange Act</u>**. "Exchange Act" means the Securities Exchange Act of 1934, as amended.

**Section 2.16 <u>Fair Market Value</u>**. "Fair Market Value" means, on any given date and as may be specified in an Award Agreement, (a) the closing sales price per share (or, if otherwise specified by the Committee, a price that is based on the opening, actual, high, low, or average sales prices per Share) of the Company's common stock as reported on the New York Stock Exchange or such other established securities market on which the Shares are traded, or, if there were no reported sales of Shares on such date, then, unless otherwise required under the Code, the business day immediately preceding such date; or (b) if (a) does not apply, the price that the Committee in good faith determines through any reasonable valuation method that a Share might change hands between a willing buyer and a willing seller, neither being under compulsion to buy or to sell and both having reasonable knowledge of the relevant facts. Notwithstanding the above, for purposes of broker-facilitated cashless exercises of Awards involving Shares under the Plan, "Fair Market Value" shall mean the real-time selling price of such Shares as reported by the broker facilitating such exercises.

**Section 2.17 <u>Good Reason</u>**. "Good Reason" means, with respect to a Participant, (a) there is a significant diminution in the nature or the scope of the Participant's authorities or duties; (b) there is a significant reduction in the Participant's monthly rate of base salary or the Participant's target opportunity under the incentive bonus compensation plan maintained by Company in which the Participant participates; (c) the Company changes by 150 miles or more the principal location at which the Participant is required to perform services as of the date of a Change in Control; or (d) the Company or any successor materially breaches any Award Agreement or Alternative Award with the Participant granted in accordance with this Plan. Notwithstanding the foregoing, in order to terminate employment for Good Reason, (i) within 30 days of the occurrence of an event described in Clauses (a)-(d) above, Participant shall deliver written notice in accordance with the notice provisions set forth in the Participant's Award Agreement of his or her intention to terminate employment for Good Reason, which notice specifies in reasonable detail the circumstances claimed to give rise to the Participant's right to terminate employment for Good Reason, (ii) the Company shall not have cured such circumstances within 30 days following the Company's receipt of such notice, and (iii) the Participant terminates his or her employment within 60 days following the expiration of the cure period. If, however, the Company cures such conditions, any subsequent termination of employment by the Participant will not be considered to be made for Good Reason.

**Section 2.18 <u>Grant Price</u>**. "Grant Price" means the price established at the time of grant of an SAR pursuant to Article VII (Stock Appreciation Rights), used to determine whether there is any payment due upon exercise of the SAR.

**Section 2.19 <u>Incentive Stock Option or ISO</u>**. "Incentive Stock Option" or "ISO" means an Option that is an "incentive stock option" within the meaning of Code Section 422.

**Section 2.20 <u>Independent Contractor</u>**. "Independent Contractor" means any person, including an advisor, consultant, or agent, engaged by the Company or an Affiliate to render services to such entity or who renders, or has rendered, services to the Company or an Affiliate and is compensated for such services.

**Section 2.21 <u>Nonemployee Director</u>**. "Nonemployee Director" means a member of the Board who is not an Employee.

**Section 2.22 <u>Nonqualified Stock Option or NQSO</u>**. "Nonqualified Stock Option" or "NQSO" means an option to purchase Shares that does not constitute an Incentive Stock Option under Code Section 422 (or any successor Code Section).

**Section 2.23 <u>Option</u>**. "Option" means a right to purchase Shares in accordance with the terms and conditions of the Plan.

**Section 2.24 <u>Option Exercise Price</u>**. "Option Exercise Price" means the price at which a Share may be purchased by a Participant pursuant to an Option.

**Section 2.25 <u>Participant</u>**. "Participant" means an Employee, Independent Contractor, or Nonemployee Director who is selected to receive an Award or who has outstanding an outstanding Award granted under the Plan.

**Section 2.26 <u>Performance Goal</u>**. "Performance Goal" means a formula or standard determined by the Committee with respect to each Performance Period based on or more of the following Performance Measures and any adjustments thereto established by the Committee: (1) sales or non-sales; (2) return on revenues; (3) operating income; (4) income or earnings including operating income; (5) income or earnings before or after taxes, interest, depreciation and/or amortization; (6) income or earnings from continuing operations; (7) net income; (8) pre-tax income or after-tax income; (9) net income excluding amortization of intangible assets, depreciation and impairment of goodwill and intangible assets and/or excluding charges attributable to the adoption of new accounting pronouncements; (10) raising of financing or fundraising; (11) project financing; (12) revenue backlog; (13) gross margin; (14) operating margin or profit margin; (15) capital expenditures, cost targets, reductions and savings and expense management; (16) return on assets (gross or net), return on investment, return on capital, or return on stockholder equity; (17) cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (18) performance warranty and/or guarantee claims; (19) stock price or total stockholder return; (20) earnings or book value per share (basic or diluted); (21) economic value created; (22) pre-tax profit or after-tax profit; (23) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration or market share, completion of strategic agreements such as licenses, joint ventures, acquisitions, and the like, geographic business expansion, objective customer satisfaction or information technology goals, intellectual property asset metrics; (24) objective goals relating to divestitures, joint ventures, mergers, acquisitions and similar transactions; (25) objective goals relating to staff management, results from staff attitude and/or opinion surveys, staff satisfaction scores, staff safety, staff accident and/or injury rates, compliance, headcount, performance management, completion of critical staff training initiatives; (26) objective goals relating to projects, including project completion, timing and/or achievement of milestones, project budget, technical progress against work plans; and (27) enterprise resource planning. Awards issued to Participants may take into account other criteria (including subjective criteria). Performance Goals may differ from Participant to Participant, Performance Period to Performance Period and from Award to Award. Any criteria used may be measured, as applicable, (i) in absolute terms, (ii) in relative terms (including, but not limited to, any increase (or decrease) over the passage of time and/or any measurement against other companies or financial or business or stock index metrics particular to the Company), (iii) on a per share and/or share per capita basis, (iv) against the performance of the Company as a whole or against any affiliate(s), or a particular segment(s), a business unit(s) or a product(s) of the Company or individual project company, (v) on a pre-tax or after-tax basis, and/or (vi) using an actual foreign exchange rate or on a foreign exchange neutral basis.

**Section 2.27 <u>Performance Measure</u>**. "Performance Measure" means one or more business criteria to be used by the Committee in establishing Performance Goals.

**Section 2.28 <u>Performance Period</u>**. "Performance Period" means the time period during which Performance Goals or other vesting provisions must be satisfied for Performance Shares or Performance Units.

**Section 2.29 <u>Performance Shares</u>**. "Performance Shares" means an Award designated as Performance Shares and granted to a Participant in accordance with Article IX of the Plan.

**Section 2.30 <u>Performance Unit</u>**. "Performance Unit" means an Award designated as a Performance Unit and granted to a Participant in accordance with Article X of this Plan.

**Section 2.31 <u>Period of Restriction</u>**. "Period of Restriction" means the period during which the transfer of Shares or cash underlying an Award is limited in some way, or the Shares or cash are subject to a substantial risk of forfeiture.

**Section 2.32 <u>Plan</u>**. "Plan" means the AMERICAN METALS LLC 2020 Omnibus Incentive Plan, as may be amended from time to time.

**Section 2.33 <u>Restricted Stock</u>**. "Restricted Stock" means an Award that is a grant of Shares delivered to a Participant, subject to restrictions described in Article VIII of this Plan.

**Section 2.34 <u>Restricted Stock Unit or RSU</u>**. "Restricted Stock Unit" or "RSU" means an Award that is subject to the restrictions described in Article VIII of this Plan and is a promise of the Company to deliver at the end of a Period of Restrictions (a) one Share for each RSU, (b) cash in an amount equal to the Fair Market Value of one Share for each RSU, or (c) a combination of (a) and (b), as determined by the Committee.

**Section 2.35 <u>Retirement</u>**. "Retirement" means, with respect to Employees, retirement as defined in the Company's tax-qualified pension plan, unless defined otherwise in an Award Agreement.

**Section 2.36 <u>Service</u>**. "Service" means a Participant's work for the Company or an Affiliate, either as an Employee, Independent Contractor, or Nonemployee Director.

**Section 2.37 <u>Shares</u>**. "Shares" means the shares of common stock of the Company, $0.01 par value per share.

**Section 2.38 <u>Stock Appreciation Right or SAR</u>**. "Stock Appreciation Right" or "SAR" means an Award designated as an SAR in accordance with the terms of Article VII of the Plan.

**Section 2.39 <u>Subsidiary</u>**. "Subsidiary" means any corporation, partnership, joint venture, or other entity in which the Company has a majority voting interest; provided, however, that with respect to ISOs, the term "Subsidiary" shall include only an entity that qualifies under Code Section 424(f) as a "subsidiary corporation" with respect to the Company.

**Section 2.40 <u>Substitute Award</u>**. "Substitute Award means an Award granted under this Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, including a merger, combination, consolidation or acquisition of property or stock; provided, however, that in no event shall the term "Substitute Award be construed to refer to an award made in connection with the cancellation and repricing of an Option or SAR.

**Section 2.41 <u>Tandem SAR</u>**. "Tandem SAR" means a SAR that is granted in connection with a related Option, the exercise of which shall require forfeiture of the right to purchase a Share under the related Option (with a similar cancellation of the Tandem SAR when a Share is purchased under the Option). Except for the medium of payment, the terms of a Tandem SAR shall be identical in all material respects to the terms of the related Option.

**ARTICLE III**

**<u>Administration</u>**

**Section 3.1 <u>Administration by the Committee</u>**. The Plan shall be administered by the Committee. All questions of interpretation of the Plan, of any Award Agreement or of any other form of agreement or other document employed by the Company in the administration of the Plan or of any Award shall be determined by the Committee, and such determinations shall be final, binding and conclusive upon all persons having an interest in the Plan or such Award, unless fraudulent or made in bad faith. Any and all actions, decisions and determinations taken or made by the Committee in the exercise of its discretion pursuant to the Plan or Award Agreement or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence) shall be final, binding and conclusive upon all persons having an interest therein. Notwithstanding the foregoing and except as otherwise determined by the Board, the Board shall perform the functions of the Committee for purposes of granting Awards under the Plan to Nonemployee Directors.

**Section 3.2 <u>Powers of the Committee</u>**. In addition to any other powers set forth in the Plan and subject to the provisions of the Plan, the Committee shall have the full and final power and authority, in its discretion:

(a) to determine the persons to whom, and the time or times at which, Awards shall be granted and the number of Shares to be subject to each Award;

(b) to determine the type of Award granted;

(c) to determine the Fair Market Value of Shares or other property where applicable;

(d) to determine the terms, conditions and restrictions applicable to each Award (which need not be identical) and any Shares acquired pursuant thereto, including, without limitation, (i) the exercise or purchase price of Shares pursuant to any Award, (ii) the method of payment for Shares purchased pursuant to any Award, (iii) the method for satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of Shares, (iv) the timing, terms and conditions of the exercisability or vesting of any Award or any Shares acquired pursuant thereto, (v) the time of the expiration of any Award, (vi) the effect of the Participants termination of Service on any of the foregoing, and (vii) all other terms, conditions and restrictions applicable to any Award or Shares acquired pursuant thereto not inconsistent with the terms of the Plan;

(e) to determine how an Award will be settled, as provided under an Award Agreement;

(f) to approve one or more forms of Award Agreement;

(g) to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any Shares acquired upon the exercise thereof;

(h) to accelerate, continue, extend or defer the exercisability of any Award or the vesting of any Shares acquired upon the exercise thereof, including with respect to the period following a Participants termination of Service;

(I) to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt sub-plans or supplements to, or alternative versions of, the Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws or regulations of or to accommodate the tax policy, accounting principles or custom of, foreign jurisdictions whose citizens may be granted Awards; and

(j) to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations and take such other actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law.

**Section 3.3 <u>Action by the Committee</u>**. A majority of the members of the Committee shall constitute a quorum for any meeting of the Committee, and the act of a majority of the members present at any meeting at which a quorum is present or the act approved in writing by a majority of all the members of the Committee shall be the act of the Committee. In the performance of their duties under this Plan, the Committee members shall be entitled to rely upon information and advice furnished by the Company's officers, employees, accountants or counsel, or any executive compensation consultant or other professional retained by the Company or the Committee to assist in the administration of this Plan.

The Committee may delegate some or all of its power and authority hereunder to the Board (or any members thereof) or, subject to applicable law, to a subcommittee of the Board, a member of the Board, the CEO or other executive officer of the Company as the Committee deems appropriate; provided, however, that the Committee may not delegate its power and authority to a member of the Board, the CEO or other executive officer of the Company with regard to the selection for participation in this Plan of an officer, director or other person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an Award to such an officer, director or other person.

**Section 3.4 <u>Indemnification</u>**. No member of the Board or of the Committee, and neither the CEO nor any other executive officer to whom the Committee delegates any of its power and authority hereunder, shall be liable for any action taken, or determination made, hereunder in good faith and the members of the Board and the Committee and the CEO or other executive officer shall be entitled to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including attorneys' fees) arising therefrom to the full extent permitted by law (except as otherwise may be provided in the Company's Certificate of Incorporation and/or By-laws) and under any directors' and officers' liability insurance that may be in effect from time to time.

**ARTICLE IV**

**<u>Stock Subject to the Plan</u>**

**Section 4.1 <u>Aggregate Shares</u>**. Subject to adjustment as provided under the Plan, the total number of Shares that are available for Awards under the Plan shall not exceed in the aggregate 5,000,000 Shares, plus any Shares subject to outstanding awards granted under a Prior Plan and that expire or terminate for any reason shall be available under this Plan. Any of the authorized Shares may be used for any type of Award under the Plan, and any or all of 5,000,000 Shares may be allocated to Incentive Stock Options. Such Shares may be authorized and unissued Shares, treasury Shares, or Shares acquired on the open market.

**Section 4.2 <u>Share Counting</u>**. To the extent that Shares subject to an outstanding Award granted under the Plan or an outstanding award granted under a Prior Plan, other than Substitute Awards, are not issued or delivered by reason of (a) the expiration, termination, cancellation or forfeiture of such award (excluding shares subject to an Option cancelled upon settlement in shares of a related Tandem SAR or shares subject to a Tandem SAR cancelled upon exercise of a related Option) or (b) the settlement of such award in cash, then such Shares shall again be available under this Plan. Shares tendered or withheld in order to satisfy tax withholding obligations, including with respect awards granted under a Prior Plan, will be available for issuance again under the Plan. Notwithstanding anything herein to the contrary, (a) Shares equal in number to the Shares withheld, surrendered or tendered in payment of the exercise price of an Award, including awards granted under a Prior Plan, and (b) Shares reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Awards, including awards granted under a Prior Plan, shall not become available for issuance again under the Plan.

**Section 4.3 <u>Adjustment to Number of Shares</u>**. In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation or any successor or replacement accounting standard) that causes the per share value of the Shares to change, such as a stock dividend, stock split, spinoff, rights offering or recapitalization through an extraordinary cash dividend, the number and class of securities available under this Plan, the terms of each outstanding Option and SAR (including the number and class of securities subject to each outstanding Option or SAR and the Option Exercise Price or Grant Price) and the terms of each other outstanding Award (including the number and class of securities subject thereto), shall be appropriately adjusted by the Committee, such adjustments to be made in the case of outstanding Options and SARs in accordance with Code Section 409A. In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights of participants. In either case, the decision of the Committee regarding any such adjustment shall be final, binding and conclusive.

**Section 4.4 <u>Corporate Transactions</u>**. The number of Shares available for Awards under this Plan shall not be reduced by (a) the number of Shares subject to Substitute Awards or (b) available shares under a stockholder approved plan of a company or other entity which was a party to a corporate transaction with the Company (as appropriately adjusted to reflect such corporate transaction) which become subject to Awards granted under this Plan (subject to applicable stock exchange requirements).

**Section 4.5 <u>Minimum Vesting Requirements</u>**. No Award granted under the Plan shall become exercisable or vested prior to the one-year anniversary of the date of grant; provided, however, that such restriction shall not apply to Awards granted under this Plan with respect to the number of Shares which, in the aggregate, does not exceed five percent (5%) of the total number of Shares initially available for Awards under this Plan. This Section 4.5 shall not restrict the right of the Committee to accelerate or continue the vesting or exercisability of an award upon or after a termination of employment or otherwise pursuant to Section 3.2 of the Plan or Article XV of the Plan.

**ARTICLE V**

**<u>Eligibility and Participation</u>**

**Section 5.1 <u>Eligibility to Receive Awards</u>**. Persons eligible to receive Awards under the Plan are Employees, Independent Contractors, and Nonemployee Directors, and persons expected to become Employees, Independent Contractors, and Nonemployee Directors of the Company and its Affiliates as the Committee in its sole discretion may select from time to time. Except as otherwise provided for in an Award Agreement, for purposes of this Plan, references to employment by the Company shall also mean employment by an Affiliate, and references to employment shall include service as an Independent Contractor or Nonemployee Director. The Committee shall determine, in its sole discretion, the extent to which a Participant shall be considered employed during an approved leave of absence.

**Section 5.2 <u>Participation in the Plan</u>**. Subject to the other provisions of this Plan, the Committee has the full discretion to grant Awards to eligible persons described in Section 5.1. Eligible persons may be granted more than one Award. Eligibility in accordance with this Section, however, shall not entitle any person to be granted an Award, or, having been granted an Award, to be granted an additional Award.

**Section 5.3 <u>Nonemployee Director Limitations</u>**. The aggregate value of cash compensation and the grant date fair value of Shares that may be awarded or granted during any fiscal year of the Company to any Nonemployee Director shall not exceed $750,000, increased to $1,000,000 in the calendar year of his or her initial services as a Nonemployee Director. Grant date fair value for purposes of Awards to Nonemployee Directors under the Plan will be calculated as follows: (a) for Options and SARs, grant date fair value will be calculated using the Black-Scholes valuation methodology (or such other methodology approved by the Company's independent accounting firm) on the date of grant of such Options or SARs, and (b) for all other Awards other than Options and SARs, grant date fair value will be calculated either by (i) calculating the product of the Fair Market Value per Share on the date of grant and the aggregate number of Shares subject to the Award or (ii) calculating the product using an average of the Fair Market Value over a number of trading days and the aggregate number of Shares subject to the Award. Awards granted to an individual while he or she was service in the capacity as an Employee or while he or she was an Independent Contractor but not a Nonemployee Director will not count for purposes of the limitations set forth herein.

**ARTICLE VI**

**<u>Options</u>**

**Section 6.1 <u>Grant of Options</u>**. Options shall be evidenced by Award Agreements in such form and not inconsistent with the Plan as the Committee shall approve from time to time. Award Agreements shall specify the Option Exercise Price, the duration of the Option, the number of Shares to which the Option pertains, provisions for vesting and exercisability, whether the Option is an ISO or NSO, and such other provisions as the Committee shall determine. Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with the following terms and conditions.

**Section 6.2 <u>Option Exercise Price</u>**. The Option Exercise Price shall not be less than 100% of the Fair Market Value of a Share on the day the Option is granted. Notwithstanding the foregoing, in the case of an Option that is a Substitute Award, the Option Exercise Price of the Shares subject to such Option may be less than 100% of the Fair Market Value per share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate purchase price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate purchase price of such shares.

**Section 6.3 <u>Exercise of Options</u>**. Each Award Agreement shall state the period or periods of time within which the Option may be exercised by the optionee, in whole or in part, which shall be such period or periods of time as may be determined by the Committee, provided that the Option exercise period shall not end later than ten years after the date of the grant of the Option. The Committee shall have the power to permit in its discretion an acceleration of the previously determined exercise terms, within the terms of the Plan, under such circumstances and upon such terms and conditions as it deems appropriate.

**Section 6.4 <u>Payment of Option Exercise Price</u>**. Except as otherwise provided in the Plan, or in any Award Agreement, the optionee shall pay the Option Exercise Price upon the exercise of any Option (i) in cash, (ii) by authorizing a third party with which the optionee has a brokerage or similar account to sell the Shares (or a sufficient portion of such Shares) acquired upon the exercise of the Option and remit to the Company a portion of the sale proceeds sufficient to pay the entire Option Exercise Price to the Company, (iii) by delivering Shares that have an aggregate Fair Market Value on the date of exercise equal to the Option Exercise Price; (iv) by authorizing the Company to withhold from the total number of Shares as to which the Option is being exercised the number of Shares having a Fair Market Value on the date of exercise equal to the aggregate Option Exercise Price for the total number of Shares as to which the Option is being exercised, (v) by such other means by which the Committee determines to be consistent with the purpose of the Plan and applicable law, or (vi) by any combination of (i), (ii), (iii), (iv), and (v). In the case of an election pursuant to (i) above, cash shall mean cash or check issued by a federally insured bank or savings and loan association and made payable to AMERICAN METALS LLC. In the case of payment pursuant to (ii) or (iii) above, the optionee's authorization must be made on or prior to the date of exercise and shall be irrevocable. In lieu of a separate election governing each exercise of an Option, an optionee may file a blanket election with the Committee, which shall govern all future exercises of Options until revoked by the optionee. Upon exercise of an Option and payment of the applicable Option Exercise Price, the Participant shall be entitled to receive from the Company the number of Shares with respect to which the Option is exercised.

**Section 6.5 <u>Termination of Service</u>**. Each Option Award Agreement shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of the Option following termination of the Participant's Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

**Section 6.6 <u>Additional Rules for Incentive Stock Options</u>**.

(a) <u>Employees</u>. Incentive Stock Options may be granted only to Employees of the Company or a Subsidiary and not to Employees of any Affiliate unless such entity is classified as a "disregarded entity" of the Company or the applicable Subsidiary under the Code. Incentive Stock Options may not be granted to Independent Contractors or Nonemployee Directors.

(b) <u>Exercise Limitations</u>. The Committee, in its sole discretion, may provide in each Award Agreement the period or periods of time within which the Option may be exercised by the optionee, in whole or in part, provided that the Option period shall not end later than ten years after the date of the grant of the Option. The aggregate Fair Market Value (determined with respect to each Incentive Stock Option at the time of grant) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by an individual during any calendar year (under all incentive stock option plans of the Company and its Subsidiaries) shall not exceed $100,000. If the aggregate Fair Market Value (determined at the time of grant) of the Shares subject to an Option, which first becomes exercisable in any calendar year, exceeds this limitation, so much of the Option that does not exceed the applicable dollar limit shall be an Incentive Stock Option and the remainder shall be a Nonqualified Stock Option; but in all other respects, the original Award Agreement shall remain in full force and effect. Notwithstanding anything herein to the contrary, if an Incentive Stock Option is granted to an individual who owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its parent or subsidiary corporations, within the meaning of Code Section 422(b)(6), (i) the purchase price of each Share subject to the Incentive Stock Option shall be not less than one hundred ten percent (110%) of the Fair Market Value of the Share on the date the Incentive Stock Option is granted, and (ii) the Incentive Stock Option shall expire, and all rights to purchase Shares thereunder shall cease, no later than the fifth anniversary of the date the Incentive Stock Option was granted.

(c) <u>Rights Upon Termination of Service</u>. The rules under Section 6.6 of this Plan generally shall apply when an optionee holding an ISO terminates Service. Notwithstanding the foregoing, in accordance with Code Section 422, if an Incentive Stock Option is exercised more than ninety days after termination of Service, that portion of the Option exercised after such date shall automatically be a Nonqualified Stock Option, but, in all other respects, the original Award Agreement shall remain in full force and effect.

**Section 6.7 <u>Other Terms</u>**. The Award Agreements with respect to Options shall contain such other terms and provisions and conditions not inconsistent with the Plan as shall be determined by the Committee

**ARTICLE VII**

**<u>Stock Appreciation Rights</u>**

**Section 7.1 <u>Grant of SARs</u>**. Stock Appreciation Rights shall be evidenced by Award Agreements in such form and not inconsistent with the Plan as the Committee shall approve from time to time. Award Agreements shall specify the Grant Price of the SAR, the duration of the SAR, the number of Shares to which the SAR pertains, provisions for vesting and exercisability, and such other provisions as the Committee shall determine. Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with the following terms and conditions. An SAR may be a Tandem SAR or may not be granted in connection with an Option.

**Section 7.2 <u>Grant Price</u>**. The Grant Price of a Tandem SAR shall be the Option Exercise Price of the related Option. The Grant Price of an SAR other than a Tandem SAR shall be determined by the Committee; provided, however, that such Grant Price shall not be less than 100% of the Fair Market Value of a Share on the date of grant of such SAR (or, if earlier, the date of grant of the Option for which the SAR is exchanged or substituted). Notwithstanding the foregoing, in the case of an SAR that is a Substitute Award, the Grant Price per Share of the Shares subject to such SAR may be less than 100% of the Fair Market Value per share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate Grant Price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate base price of such shares.

**Section 7.3 <u>Term of SAR</u>**. SARs shall be granted for a period of not more than ten years, and shall be exercisable in whole or in part, at such time or times and subject to such other terms and conditions, as shall be prescribed by the Committee at the time of grant, subject to the provisions of this Plan.

**Section 7.4 <u>Special Rules for Exercise of Tandem SARs</u>**. Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to Shares for which its related Option is then exercisable. Notwithstanding any other provision of this Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR will expire no later than the expiration of the underlying ISO; (ii) the value of the payout with respect to the Tandem SAR may be for no more than one hundred percent (100%) of the difference between the Option Exercise Price of the underlying ISO and the Fair Market Value of the Shares subject to the underlying ISO at the time the Tandem SAR is exercised; and (iii) the Tandem SAR may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the Option Exercise Price of the ISO.

**Section 7.5 <u>Termination of Service</u>**. Each SAR Award Agreement shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of the SAR following termination of the Participant's Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

**Section 7.6 <u>Payment</u>**. Upon exercise of a Stock Appreciation Right, the Participant shall be entitled to receive payment from the Company in an amount equal to the product of (i) and (ii) where (i) is the excess of the Fair Market Value of a Share on the date of exercise over the Grant Price and (ii) is the number of Shares with respect to which the SAR is exercised. At the discretion of the Committee and as set forth in the Award Agreement, payment shall be made in cash, in Shares, or in a combination thereof.

**Section 7.7 <u>Other Terms</u>**. The Award Agreements with respect to SARs shall contain such other terms and provisions and conditions not inconsistent with the Plan as shall be determined by the Committee.

**ARTICLE VIII**

**<u>Restricted Stock and Restricted Stock Units</u>**

**Section 8.1 <u>Grants</u>**. The Committee, at any time and from time to time, may grant Shares of Restricted Stock or grant Restricted Stock Units to Participants in such amounts as the Committee shall determine. Each Restricted Stock or Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units issued to the Participant, and such other provisions as the Committee shall determine. Such Award Agreements shall be consistent with the provisions of this Article VIII.

**Section 8.2 <u>Period of Restriction</u>**. The end of any Period of Restriction for Restricted Stock or Restricted Stock Units may be conditioned upon the satisfaction of such conditions as are established by the Committee in its sole discretion and set forth in an applicable Award Agreement. Such conditions include, without limitation, restrictions based upon the continued Service of the Participant, the achievement of specific Performance Targets, time-based restrictions on vesting following the attainment of the Performance Targets, and/or restrictions under applicable federal or state securities laws, prohibitions against transfer, and repurchase by the Company or right of first refusal. The Committee shall have the power to permit in its discretion, an acceleration of the expiration of the applicable Period of Restriction with respect to any part or all of the Shares or number of Restricted Stock Units awarded to a Participant.

**Section 8.3 <u>Certificates</u>**. If a certificate is issued in respect of Shares awarded to a Participant, each certificate shall be deposited with the Company, or its designee, and shall bear the following legend:

"This certificate and the shares represented hereby are subject to the terms and conditions (including forfeiture and restrictions against transfer) contained in the AMERICAN METALS LLC Omnibus Incentive Plan and an Award Agreement entered into by the registered owner. Release from such terms and conditions shall be obtained only in accordance with the provisions of the Plan and Award Agreement, a copy of each of which is on file in the office of the Secretary of said Company."

**Section 8.4 <u>Lapse of Restrictions</u>**. A Restricted Stock Award Agreement or Restricted Stock Unit Award Agreement shall specify the terms and conditions upon which any restrictions upon Shares awarded or RSUs awarded under the Plan shall lapse, as determined by the Committee. With respect to a Restricted Stock Award, upon termination of any applicable Period of Restriction (and the satisfaction or attainment of applicable Performance Measures), the restrictions shall be removed from the requisite number of any Shares that are held in book entry form, and all certificates evidencing ownership of the requisite number of Shares shall be delivered to the holder of such Award. With respect to a Restricted Stock Unit Award, upon termination of any applicable Period of Restriction (and the satisfaction or attainment of applicable Performance Measures) the Shares or, if applicable, cash payment with respect to the Restricted Stock Unit Award shall be distributed to the Participant in accordance with the Restricted Stock Unit Award Agreement (but no later than the March 15 of the year after the year in which such Period of Restriction ends except as otherwise provided for in the Award Agreement).

**Section 8.5 <u>Termination of Service</u>.** Each Restricted Stock Award Agreement and Restricted Stock Unit Award Agreement shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of Shares of Restricted Stock or Restricted Stock Units following termination of the Participant's Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

**Section 8.6 <u>Code Section 83(b) Election</u>**. If a Participant makes an election pursuant to Code Section 83(b) with respect to a Restricted Stock Award, the Participant shall be required to promptly file a copy of such election with the Company.

**Section 8.7 <u>Other Terms</u>**. The Award Agreements with respect to Restricted Stock or Restricted Stock Units shall contain such other terms and provisions and conditions not inconsistent with the Plan as shall be determined by the Committee.

**ARTICLE IX**

**<u>Performance Shares Awards</u>**

**Section 9.1 <u>Grants of Performance Shares</u>**. The Committee, at any time and from time to time, may grant Awards of Performance Shares to Participants in such amounts as the Committee shall determine. Each Performance Shares grant shall be evidenced by an Award Agreement that shall specify the applicable performance period, the number of Shares subject to a Performance Shares Award that are to be delivered to the Participant upon satisfaction of the Performance Targets by the expiration of the performance period, and such other provisions as the Committee shall determine. Such Award Agreements shall be consistent with the provisions of this Article IX.

**Section 9.2 <u>Performance Period and Performance Goals</u>**. At the time of award, the Committee, in its sole discretion shall establish a Performance Period and the Performance Goals to be achieved during the applicable Performance Period with respect to an Award of Performance Shares.

**Section 9.3 <u>Delivery of Shares</u>**. Following the conclusion of each Performance Period, the Committee shall determine the extent to which performance goals have been attained for such period as well as the other terms and conditions established by the Committee. The Committee shall determine the amount of Shares, if any, to be delivered to the Participant in satisfaction of the Award.

**Section 9.4 <u>Termination of Service</u>**. Each Performance Shares Award Agreement shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of Performance Shares following termination of the Participant's Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Performance Shares Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

**Section 9.5 <u>Other Terms</u>**. The Award Agreements with respect to Performance Shares shall contain such other terms and provisions and conditions not inconsistent with the Plan as shall be determined by the Committee.

**ARTICLE X**

**<u>Performance Units</u>**

**Section 10.1 <u>Grant of Performance Units</u>**. Subject to the terms of the Plan, Performance Units may be granted to Participants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee. Performance Units shall be evidenced by Award Agreements that are subject to the terms of this Article X.

**Section 10.2 <u>Performance Period and Performance Goals</u>**. At the time of award, the Committee, in its sole discretion, shall establish a Performance Period and the Performance Goals to be achieved during the applicable Performance Period with respect to an Award of Performance Units.

**Section 10.3 <u>Value of Performance Units</u>**. At the time Performance Units are granted, the Committee shall establish with respect to each such Award a value for each Performance Unit, which may vary thereafter determinable from criteria specified by the Committee at the time of Award.

**Section 10.4 <u>Payment of Performance Units</u>**. Following the conclusion of each performance period, the Committee shall determine the extent to which performance targets have been attained for such period as well as the other terms and conditions established by the Committee. The Committee shall determine what, if any, payment is due on the Performance Units. Payment shall be made as soon as practicable after the end of the applicable performance period, but no later than the March 15th of the year after the year in which such performance period ends, in cash, in the form of Shares, or in a combination thereof, as the Committee may determine.

**Section 10.5 <u>Termination of Service</u>**. Each Performance Unit Award Agreement shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of Performance Units following termination of the Participant's Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Performance Units Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

**Section 10.6 <u>Other Terms</u>**. The Award Agreements with respect to Performance Units shall contain such other terms and provisions and conditions not inconsistent with the Plan as shall be determined by the Committee.

**ARTICLE XI**

**<u>Cash-Based Awards</u>**

**Section 11.1 <u>Grant of Cash-Based Awards</u>**. Subject to the terms of the Plan, Cash-Based Awards may be granted to Participants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee, subject to the terms of this Article XI.

**Section 11.2 <u>Performance Period and Performance Goals</u>**. At the time of award, the Committee, in its sole discretion, shall establish a Performance Period and the Performance Goals to be achieved during the applicable Performance Period with respect to Cash-Based Awards.

**Section 11.3 <u>Value of Cash-Based Awards</u>**. At the time Cash-Based Awards are granted, the Committee shall establish the value of such Awards, which may vary thereafter determinable from criteria specified by the Committee at the time of Award.

**Section 11.4 <u>Payment of Cash-Based Awards</u>**. If payable, the Participant's Cash-Based Award will be distributed to the Participant, or the Participant's estate in the event of the Participant's death before payment, in cash in a single sum as soon after the end of the applicable performance period as practicable, but no later than March 15th after the end of the performance period, in accordance with the Company's payroll practices.

**Section 11.5 <u>Termination of Service</u>**. With respect to Cash-Based Awards, the Committee shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of such Cash-Based Awards following termination of the Participant's Service. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Cash-Based Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

**Section 11.6 <u>Other Terms</u>**. The Award Agreements with respect to Cash-Based Awards shall contain such other terms and provisions and conditions not inconsistent with the Plan as shall be determined by the Committee.

**ARTICLE XII**

**<u>Other Stock-Based Awards</u>**

The Committee may from time to time grant Shares and other Awards under the Plan that are valued in whole or in part by reference to, or are otherwise based upon and/or payable in Shares. The Committee, in its sole discretion, shall determine the terms and conditions of such Awards, which shall be consistent with the terms and purposes of the Plan.

**ARTICLE XIII**

**<u>Dividends and Dividend Equivalents</u>**

No dividends or dividend equivalents may be awarded with respect to any Options or SARs. An Award (other than Options or SARs) may, if so determined by the Committee, provide the Participant with the right to receive dividend payments, or, in the case of Awards that do not involve the issuance of Shares concurrently with the grant of the Award, dividend equivalent payments with respect to Shares subject to the Award (both before and after the Shares are earned, vested or acquired), which payments shall be credited to an account for the Participant, or deemed to have been reinvested in additional Shares, which shall be subject to the same vesting and performance conditions as the underlying Award. Dividend or dividend equivalent amounts credited to an account for the Participant may be settled in cash or Shares or a combination of both, as determined by the Committee. Except as provided otherwise in an Award Agreement, any Participant entitled to receive a cash dividends or dividend equivalents pursuant to his applicable Award may, by written election filed with the Company, at least ten days before the date of payment of such dividend equivalent, elect to have such dividend equivalent credited to an account maintained for his benefit under a dividend reinvestment plan maintained by the Company.

**ARTICLE XIV**

**<u>Beneficiary Designation</u>**

Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant's lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant's death shall be paid to the Participant's estate.

**ARTICLE XV**

**<u>Change in Control</u>**

**Section 15.1 <u>Effect of Change in Control</u>**.

(a) Upon a Change in Control, no cancellation, termination, acceleration of exercisability or vesting, lapse of any Period of Restriction or settlement or other payment shall occur with respect to any outstanding Award, if the Committee (as constituted immediately prior to the consummation of the transaction constituting the Change in Control) reasonably determines, in good faith, prior to the Change in Control that such outstanding Awards shall be honored or assumed, or new rights substituted (such honored, assumed or substituted Award being hereinafter referred to as an "Alternative Award") by the successor, provided that any Alternative Award must:

i. be (A) based on shares of common stock that are traded on a registered U.S. securities exchange or (B) an award of cash having the same economic value;

ii. provide the Participant (or each Participant in a class of Participants) with rights and entitlements substantially equivalent to or better than the rights, terms and conditions applicable under such Award, including, but not limited to, an identical or better exercise or vesting schedule and identical or better timing and methods of payment;

iii. have substantially equivalent economic value to such Award (determined at the time of the Change in Control); and

iv. have terms and conditions which provide that in the event that the Participant suffers an involuntary termination of Service by the Company other than for Cause or a voluntary termination for Good Reason within two years following the Change in Control, any conditions on the Participant's rights under, or any restrictions on transfer or exercisability applicable to, each such Award held by such Participant shall be waived or shall lapse, as the case may be, and any performance-based restrictions shall be deemed to have been achieved at target level performance.

(b) All outstanding Awards for which Alternative Awards are not granted in accordance with this section shall become fully exercisable; all restrictions thereon shall terminate; any performance-based restrictions shall be deemed to have been achieved at target level performance; and such Awards shall be immediately payable, except to the extent that later payment is necessary to comply with Code Section 409A.

(c) Except as otherwise set forth in the Award Agreement, if the Company has terminated the Service of a Participant other than for Cause, or if the Participant has terminated Service for Good Reason, during the year before the consummation of a Change in Control but after a third party and/or the Company had taken steps reasonably calculated to effect such Change in Control, and the Participant reasonably demonstrates that such termination of Service was in connection with or in anticipation of the Change in Control, then: all of the Participant's outstanding Awards shall become fully exercisable; all restrictions thereon shall terminate; any performance-based restrictions shall be deemed to have been achieved at target level performance; and such Awards shall be payable within 60 days after the Change in Control, except to the extent that later payment is necessary to comply with Code Section 409A,

**Section 15.2 <u>Participant Elections to Minimize Code Section 4999 Excise Tax</u>**.

(a) <u>Excess Parachute Payment</u>. In the event that any acceleration of vesting pursuant to an Award and any other payment or benefit received or to be received by a Participant would subject the Participant to any excise tax pursuant to Code Section 4999 due to the characterization of such acceleration of vesting, payment or benefit as an excess parachute payment under Code Section 280G, the Participant may elect, in his or her sole discretion, to reduce the amount of any acceleration of vesting called for under the Award in order to avoid such characterization. Such an election, however, may not change the time and form of any payment in a manner that would cause the Participant to incur additional taxes or penalties under Code Section 409A.

(b) <u>Determination by Independent Accountants</u>. To aid the Participant in making any election called for under part (a) above, no later than the date of the occurrence of any event that might reasonably be anticipated to result in an excess parachute payment to the Participant as described in part (a) above, the Company shall request a determination in writing by independent public accountants selected by the Company (the "Accountants"). As soon as practicable thereafter, the Accountants shall determine and report to the Company and the Participant the amount of such acceleration of vesting, payments and benefits which would produce the greatest after-tax benefit to the Participant. For the purposes of such determination, the Accountants may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999. The Company and the Participant shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make their required determination. The Company shall bear all fees and expenses the Accountants may reasonably charge in connection with their services contemplated by this subpart (b).

**ARTICLE XVI**

**<u>Deferrals</u>**

The Committee may permit (upon timely election by the Participant) or require a Participant to defer such Participant's receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant by virtue of the exercise of an Option or SAR, the lapse or waiver of restrictions with respect to Restricted Stock or Performance Shares, or the satisfaction of any requirements or goals with respect to Performance Units or Cash-Based Awards. If any such deferral election is required or permitted, the Committee may, in its sole discretion, establish rules and procedures for such payment deferrals in a manner consistent with Code Section 409A and the regulations thereunder.

**ARTICLE XVII**

**<u>Withholding</u>**

**Section 17.1 <u>Tax Withholding</u>**. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan.

**Section 17.2 <u>Share Withholding</u>**. With respect to withholding required upon the exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock, or upon any other taxable event arising as a result of Awards granted hereunder, Participants may elect, subject to the approval of the Committee or as otherwise provided for in the Award Agreement, to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares. Shares of Common Stock to be delivered or withheld may not have an aggregate Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate (or, if permitted by the Company, such other rate as will not cause adverse accounting consequences under the accounting rules then in effect, and is permitted under applicable IRS withholding rules). All such elections shall be irrevocable, made in writing before the date in which income is realized by the recipient in connection with the particular transaction, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

**ARTICLE XVIII**

**<u>Compliance with Code Section 409A</u>**

**Section 18.1 <u>Awards Subject to Code Section 409A</u>.**The provisions of this Section 18.1 shall apply to any Award or portion thereof that is or becomes subject to Code Section 409A, notwithstanding any provision to the contrary contained in the Plan or the Award Agreement applicable to such Award. Awards subject to Code Section 409A include, without limitation:

(a) Any Nonqualified Stock Option having an exercise price per share less than the Fair Market Value determined as of the date of grant of such Option or that permits the deferral of compensation other than the deferral of recognition of income until the exercise or transfer of the Option or the time the shares acquired pursuant to the exercise of the option first become substantially vested.

(b) Any Award that either provides by its terms, or under which the Participant makes an election, for settlement of all or any portion of the Award either (i) on one or more dates following the end of the Short-Term Deferral Period (as defined below) or (ii) upon or after the occurrence of any event that will or may occur later than the end of the Short-Term Deferral Period.

Subject to U.S. Treasury Regulations promulgated pursuant to Code Section 409A ("Section 409A Regulations") or other applicable guidance, the term "Short-Term Deferral Period" means the period ending on the later of (i) the 15th day of the third month following the end of the Company's fiscal year in which the applicable portion of the Award is no longer subject to a substantial risk of forfeiture or (ii) the 15th day of the third month following the end of the Participant's taxable year in which the applicable portion of the Award is no longer subject to a substantial risk of forfeiture. For this purpose, the term "substantial risk of forfeiture" shall have the meaning set forth in Section 409A Regulations or other applicable guidance.

**Section 18.2 <u>No Acceleration of Distributions</u>**. Notwithstanding anything to the contrary herein, this Plan does not permit the acceleration of the time or schedule of any distribution under this Plan pursuant to any Award subject to Code Section 409A, except as provided by Code Section 409A and Section 409A Regulations.

**Section 18.3 <u>Separation from Service</u>**. If any amount shall be payable with respect to any Award hereunder as a result of a Participant's termination of employment or other Service and such amount is subject to the provisions of Code Section 409A, then notwithstanding any other provision of this Plan, a termination of employment or other Service will be deemed to have occurred only at such time as the Participant has experienced a "separation from service" as such term is defined for purposes of Code Section 409A.

**Section 18.4 <u>Timing of Payment to a Specified Employee</u>**. If any amount shall be payable with respect to any Award hereunder as a result of a Participant's separation from Service at such time as the Participant is a "specified employee" and such amount is subject to the provisions of Code Section 409A, then notwithstanding any other provision of this Plan, no payment shall be made, except as permitted under Code Section 409A, prior to the first day of the seventh (7th) calendar month beginning after the Participant's separation from Service (or the date of his or her earlier death). The Company may adopt a specified employee policy that will apply to identify the specified employees for all deferred compensation plans subject to Code Section 409A; otherwise, specified employees will be identified using the default standards contained in the regulations under Code Section 409A.

**ARTICLE XIX**

**<u>Amendment and Termination</u>**

**Section 19.1 <u>Amendment, Modification, and Termination of the Plan</u>**. The Board or the Committee may at any time terminate, suspend or amend the Plan without the authorization of stockholders to the extent allowed by law, including without limitation any rules issued by the Securities and Exchange Commission under Section 16 of the Exchange Act, insofar as stockholder approval thereof is required in order for the Plan to continue to satisfy the requirements of Rule 16b-3 under the Exchange Act, or the rules of any applicable stock exchange. No termination, suspension or amendment of the Plan shall adversely affect any right acquired by any Participant under an Award granted before the date of such termination, suspension or amendment, unless such Participant shall consent; but it shall be conclusively presumed that any adjustment for changes in capitalization as provided for herein does not adversely affect any such right.

**Section 19.2 <u>Amendment of Awards</u>**. The Committee may unilaterally amend the terms of any Award Agreement previously granted, except that (i) no such amendment may materially impair the rights of any Participant under the applicable Award without the Participant's consent, unless such amendment is necessary to comply with applicable law, stock exchange rules or accounting rules; and (ii) in no event may an Option or SAR be amended or modified, other than as provided in Section 4.4, to decrease the Option or SAR exercise or base price thereof, or be cancelled in exchange for cash, a new Option or SAR with a lower exercise price or base price, or other Awards, or otherwise be subject to any action that would be treated for accounting purposes as a "repricing" of such Option or SAR, unless such action is approved by the Company's stockholders.

**ARTICLE XX**

**<u>Miscellaneous</u>**

**Section 20.1 <u>Approval Restrictions</u>**. Each Award under the Plan shall be subject to the requirement that, if at any time the Committee shall determine that (i) the listing, registration or qualification of the Shares subject or related thereto upon any securities exchange or under any state or federal law, or (ii) the consent or approval of any government regulatory body, or (iii) an agreement by the recipient of an Award with respect to the disposition of Shares is necessary or desirable as a condition of, or in connection with, the granting of such award or the issue or purchase of Shares thereunder, such Award may not be consummated in whole or in part unless such listing, registration, qualification, consent, approval or agreement shall have been effected or obtained, free of any conditions not acceptable to the Committee.

**Section 20.2 <u>Securities Law Compliance</u>**. With respect to Participants subject to Section 16 of the Exchange Act, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act. If any provision of this Plan or of any Award Agreement would otherwise frustrate or conflict with the intent expressed in the preceding sentence, that provision to the extent possible shall be interpreted and deemed amended in the manner determined by the Committee so as to avoid the conflict. To the extent of any remaining irreconcilable conflict with this intent, the provision shall be deemed void as applicable to Participants who are then subject to Section 16 of the Exchange Act. In addition, no Shares will be issued or transferred pursuant to an Award unless and until all then applicable requirements imposed by federal and state securities and other laws, rules and regulations and by any regulatory agencies having jurisdiction, and by any stock exchanges upon which the Shares may be listed, have been fully met. As a condition precedent to the issuance of Shares pursuant to the grant, exercise, vesting or settlement of an Award, the Company may require the Participant to take any reasonable action to meet such requirements. The Committee may impose such conditions on any Shares issuable under the Plan as it may deem advisable, including, without limitation, restrictions under the Securities Act of 1933, as amended, under the requirements of any stock exchange upon which such Shares of the same class are then listed, and under any blue sky or other securities laws applicable to such Shares.

**Section 20.3 <u>Gender and Number</u>**. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular and the singular shall include the plural.

**Section 20.4 <u>Rights as a Stockholder</u>**. The recipient of any Award under the Plan, unless otherwise provided by the Plan, shall have no rights as a stockholder with respect thereto unless and until certificates for Shares are issued to the recipient.

**Section 20.5 <u>Forfeiture</u>**. The Committee may specify in an Award Agreement that the Participant's rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of Service for Cause or any act by a Participant, whether before or after termination of Service, that would constitute Cause for termination of Service.

**Section 20.6 <u>Rights as Employee, Independent Contractor, or Nonemployee Director</u>**. No person, even though eligible pursuant to Article V, shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. Nothing in the Plan or any Award granted under the Plan shall confer on any Participant a right to remain an Employee, Independent Contractor, or Nonemployee Director or interfere with or limit in any way any right of the Company or Affiliate to terminate the Participant's Service at any time. To the extent that an Employee of an Affiliate receives an Award under the Plan, that Award shall in no event be understood or interpreted to mean that the Company is the Employee's employer or that the Employee has an employment relationship with the Company.

**Section 20.7 <u>Fractional Shares</u>**. The Company shall not be required to issue fractional shares upon the exercise or settlement of any Award.

**Section 20.8 <u>Effect on Other Plans</u>**. Unless otherwise specifically provided, participation in the Plan shall not preclude a Participant's eligibility to participate in any other benefit or incentive plan. Any Awards made pursuant to the Plan shall not be considered as compensation in determining the benefits provided under any other plan.

**Section 20.9 <u>No Constraint on Corporate Action</u>**. Nothing in this Plan shall be construed to: (a) limit, impair, or otherwise affect the Company's or an Affiliate's right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit the right or power of the Company or an Affiliate to take any action which such entity deems to be necessary or appropriate.

**Section 20.10 <u>Over/Under Payments</u>**. If any Participant or beneficiary receives an underpayment of Shares or cash payable under the terms of any Award, payment of any such shortfall shall be made as soon as administratively practicable. If any Participant or beneficiary receives an overpayment of Shares or cash payable under the terms of any Award for any reason, the Committee or its delegate shall have the right, in its sole discretion, to take whatever action it deems appropriate, including but not limited to the right to require repayment of such amount or to reduce future payments under this Plan, to recover any such overpayment. Notwithstanding the foregoing, if the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, and if the Participant knowingly or through gross negligence engaged in the misconduct, or knowingly or through gross negligence failed to prevent the misconduct, or if the Participant is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the twelve- (12-) month period following the first public issuance or filing with the United States Securities and Exchange Commission of the financial document embodying such financial reporting requirement. In addition and notwithstanding the foregoing, the Awards granted under this Plan and any cash payment or Shares delivered pursuant to such an award are subject to forfeiture, recovery by the Company or other action pursuant to the applicable Award Agreement or any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

**Section 20.11 <u>Unfunded Obligation</u>**. Participants shall have the status of general unsecured creditors of the Company. Any amounts payable to Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of ERISA. No Affiliate shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Committee or any Affiliate and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant's creditors in any assets of any Affiliate. The Participants shall have no claim against any Affiliate for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan.

**Section 20.12 <u>No Liability With Respect to Adverse Tax Treatment</u>**. Notwithstanding any provision of this Plan to the contrary, in no event shall the Company or any Affiliate be liable to a Participant on account of an Award's failure to (i) qualify for favorable U.S., foreign, state, local, or other tax treatment or (ii) avoid adverse tax treatment under U.S., foreign, state, local, or other law, including, without limitation, Code Section 409A.

**Section 20.13 <u>Severability</u>**. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

**Section 20.14 <u>Requirements of Law</u>**. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

**Section 20.15 <u>Governing Law</u>**. To the extent not preempted by federal law, the Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the state of Indiana.

**Section 20.16 <u>Successors</u>**. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company.

**Section 20.17 <u>Provisions Regarding Transferability of Awards</u>**.

(a) <u>General</u>. Except as otherwise provided below, Awards may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in the Code or Title 1 of the ERISA or the rules thereunder. Except as otherwise provided in the Plan, all rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to such Participant.

(b) <u>Nonqualified Stock Options and Stock Appreciation Rights</u>. No NSO or SAR granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in the Code or Title 1 of ERISA or the rules thereunder. Notwithstanding the foregoing or anything in part (a) above, a Participant, at any time prior to his death, may assign all or any portion of the NSO or SAR to (i) his spouse or lineal descendant, (ii) the trustee of a trust for the primary benefit of his spouse or lineal descendant, or (iii) a tax-exempt organization as described in Code Section 501(c)(3). In such event the spouse, lineal descendant, trustee or tax-exempt organization shall be entitled to all of the rights of the Participant with respect to the assigned portion of such NSO or SAR, and such portion of the NSO or SAR shall continue to be subject to all of the terms, conditions and restrictions applicable to the NSO or SAR as set forth herein, and in the related Award Agreement, immediately prior to the effective date of the assignment. Any such assignment shall be permitted only if (i) the Participant does not receive any consideration therefore, and (ii) the assignment is expressly approved by the Committee or its delegate. Any such assignment shall be evidenced by an appropriate written document executed by the Participant, and a copy thereof shall be delivered to the Committee or its delegate on or prior to the effective date of the assignment.

(c) <u>Incentive Stock Options</u>. Notwithstanding anything in part (a) and (b) above, no ISO may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent or distribution.

**Section 20.18 <u>Non-ERISA Plan</u>.** The Company intends that this Plan shall not constitute an "employee benefit plan" for purposes of Section 3(3) of ERISA.

## Exhibit 21.1

**EXHIBIT 21.1**

---

| | |
|:---|:---|
| **Entity Name** | **Domestic Jurisdiction** |
| None | N/A |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![](ems_ex991img8.jpg)

[•] 2025

Dear American Resources Corporation Shareholders:

We previously announced plans to spin-off our wholly owned subsidiary Electrified Materials Corporation ("EMC") from American Resources Corporation ("AREC"). The separation will occur by means of a spinoff, intended to be tax-free, of Electrified Materials Corp, including its assets and liabilities.

American Resources Corporation, our existing company in which you currently own common stock, will continue to own a a portion of Electrified Materials Corporation a next-generation, environmentally and socially responsible aggregator and processor of used metals to be recycled into new steel products as well as diversified battery and magnet metal mining business. Our operations are centrally located in the heart of coal country where an abundance of used metal reserves reside from shut down thermal coal mines. The Company is leveraging its regional low-cost logistics infrastructure and environmental efforts to expand its aggregation network to feed the rapidly expanding used steel market.

The separation will create two publicly traded companies, AREC and EMC, both with proven long-term strategies, sufficient scale and financial strength that will benefit both businesses. These potential benefits include enhancing the strategic and operational flexibility of each company, enhancing the focus of each management team on its business strategy and operations, allowing each company to adopt a capital structure, acquisition strategy, and return of capital policy best suited to its financial profile and business needs, and providing each company with its own equity currency to facilitate acquisition and to better incentivize management. In addition, once EMC is a stand-alone public company, potential investors will be able to invest directly in EMC's common stock.

I encourage you to read the attached information statement about EMC, as well as the supplemental information on AREC's investor relations website. The information statement describes the spinout in detail and contains important business and financial information. Once the spinout is effective, each AREC shareowner will receive shares of EMC based on the number of shares of AREC common stock held by the shareowner as of the record date.

Today's announcement reflects our continued commitment to generate shareowner value as AREC becomes the premier producer of raw materials to the infrastructure and electrification market. I am confident that Electrified Materials Corp will be successful following its separation from American Resources Corporation and look forward to the bright futures of both companies.

Sincerely,

Mark C. Jensen

Chairman and Chief Executive Officer

American Resources Corporation

[•] 2025

To Our Future Electrified Materials Corp Shareholders:

Thank you for your interest in Electrified Materials Corporation, American Resources Corporation's planned spin-off company that is an aggregator and processor of used metals for recycling into new steel-based products for the recovery and sale of recovered metal and steel. It is pursuing becoming a recycler of metals for the electrified economy in that it can specifically target product and components to accumulate with high concentrations of critical minerals needed for energy transition and national defense applications and other advanced technologies.

Importantly for you as a stockholder, we'll be able to intensify our focus on our strategic priorities. Electrified Materials Corporation will have a simplified business structure, a capital structure tailored to our opportunities and a clearly outlined investment profile. Our standalone stock listing will create an independent equity currency we can use to recruit talent and structure employee incentive compensation arrangements that are more directly tied to our performance, and pursue strategic objectives, including acquisitions. We intend to continue to drive profitable growth in our business, capitalizing on substantial market opportunities in the global infrastructure marketplace, and to be an innovation leader. We expect to list Electrified Materials Corp on a national exchange including New York Stock Exchange, OTC Markets or the NASDAQ Capital Market under the ticker symbol "[•]".

We are excited about how Electrified Materials Corporation is positioned on day one and the ways we intend to advance the company and industry in the years to come. We are passionate about improving lives around the globe by enabling the clean energy economy to have access to the raw materials needed to achieve their projected effectiveness and growth rate. We have assembled a world-class team of talent to lead Electrified Materials Corp and through the spin-off, will be able to continue to expand the team for its future success. The attached information statement details our strategy and plans for near and long-term growth to generate value for our shareowners.

Sincerely,

Christopher M. Dreska

Chief Executive Officer

Electrified Materials Corporation

**Information contained herein is subject to completion or amendment. A Registration Statement on Form 10 relating to these securities has been filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended.**

**Preliminary and Subject to Completion, Dated _____________ _____, 2025**

**INFORMATION STATEMENT**

**Electrified Materials Corporation**

**Common Stock**

($0.0001 par value)

We are sending you this Information Statement in connection with the spin-off by American Resources Corporation ("American Resources" or "AREC") of its wholly owned subsidiary, Electrified Materials Corporation (the "Company", "EMC", or "SpinCo"). To effect the spin-off, AREC will distribute all of the shares of SpinCo common stock on a pro rata basis to the holders of American Resources common stock. We expect that the distribution of SpinCo common stock will be tax-free to holders of American Resources common stock for U.S. federal income tax purposes.

If you are a record holder of American Resources Corporation common stock as of the close of business on [•], 2025, which is the record date for the distribution, you will be entitled to receive one share of SpinCo common stock for every [•] shares of American Resources Class A common stock that you hold on that date. American Resources will distribute the shares of SpinCo common stock in book-entry form, which means that we will not issue physical stock certificates. The distribution agent will not distribute any fractional shares of SpinCo common stock.

The distribution will be effective as of 11:59 p.m., New York City time, on [•] 2025. Immediately after the distribution becomes effective, SpinCo will be an independent, publicly traded company.

American Resource's stockholders are not required to vote on or take any other action to approve the spin-off. We are not asking you for a proxy, and request that you do not send us a proxy. American Resources stockholders will not be required to pay any consideration for the shares of SpinCo common stock they receive in the spin-off, and they will not be required to surrender or exchange their shares of American Resources common stock or take any other action in connection with the spin-off.

No trading market for SpinCo common stock currently exists. We expect, however, that a limited trading market for SpinCo common stock, commonly known as a "when-issued" trading market, will develop on or shortly before the record date for the distribution, and we expect "regular-way" trading of SpinCo common stock will begin on the first trading day after the distribution date. We intend to list SpinCo common stock on a national exchange including New York Stock Exchange, OTC Markets or the NASDAQ Capital Market under the ticker symbol "[•]".

**In reviewing this Information Statement, you should carefully consider the matters described in the section entitled "Risk Factors" beginning on page 16 of this Information Statement.**

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

This Information Statement is not an offer to sell, or a solicitation of an offer to buy, any securities.

The date of this Information Statement is December 22, 2025.

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| Industry and Market Data  | 5 |
| Risk Factors | 22 |
| Cautionary Statement Concerning Forward-Looking Statements | 34 |
| The Spin-Off | 36 |
| Dividend Policy | 44 |
| Capitalization | 44 |
| Selected Historical and Unaudited Pro Forma Condensed Financial Data | 45 |
| Unaudited Pro Forma Condensed Financial Statements | 46 |
| Business | 52 |
| Management's Discussion and Analysis of Financial Condition and Results of Operations | 53 |
| Management and Board of Directors | 64 |
| Compensation Discussion and Analysis | 70 |
| Security Ownership of Certain Beneficial Owners and Management | 73 |
| Certain Relationships and Related Party Transactions | 74 |
| Description of Our Capital Stock | 77 |
| Where You Can Find More Information | 79 |
| Index to financial Statements | F-1 |

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**INDUSTRY AND MARKET DATA**

This information statement includes estimates regarding market and industry data and forecasts, which are based on publicly available information, industry publications and surveys, reports from government agencies, reports by market research firms, and our own estimates based on our management's knowledge of, and experience in, the markets in which we compete. This information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process, and other limitations and uncertainties inherent in surveys of market size. Furthermore, all of this information involves a variety of assumptions, limitations, and methodologies and is inherently subject to uncertainties, and therefore you are cautioned not to give undue weight to these estimates.

**INFORMATION STATEMENT SUMMARY**

In this Information Statement, unless the context otherwise requires:

· The "Company", "EMC", "SpinCo", "Electrified Materials", "we", "our", "ourselves" and "us" refer to Electrified Materials Corp after giving effect to the Spin-Off; and

· "American Resources" or "Parent" refers to American Resources Corporation and its consolidated subsidiaries.

The transaction in which American Resources will distribute to its stockholders a majority of the shares of our common stock is referred to in this Information Statement as the "Share Distribution" or the "Spin-Off." Prior to American Resources' Share Distribution of the shares of our common stock to its stockholders, American Resources will undertake a series of internal reorganization transactions, following which SpinCo will hold, directly or through its subsidiaries, the Electrified Materials Corp division which we refer to as the "Business." We refer to this series of internal reorganization transactions as the "Reorganization Transactions."

Unless the context otherwise requires, or when otherwise specified, references in this information statement to our historical assets, liabilities, products, businesses or activities of our businesses are generally intended to refer to the historical assets, liabilities, products, businesses or activities of Electrified Materials businesses as they were conducted as part of American Resources prior to completion of the Spin-Off.

**The Spin-Off**

On December 11, 2024, Electrified Materials announced plans for the complete legal and structural separation of our Business from American Resources. In reaching the decision to pursue the Spin-Off, American Resources considered a range of potential structural alternatives for the Business and concluded that the Spin-Off is the most attractive alternative for enhancing stockholder value.

To affect the separation, first, Electrified Materials will undertake the series of Reorganization Transactions including instituting a shared resource arrangement and establishing an independent board of directors and executive officers. American Resources will subsequently distribute a majority of SpinCo's common stock to American Resources' stockholders, and following the Share Distribution, SpinCo, holding the Business, will become an independent, public company.

We have entered into a Mutual Services and Transition Agreement related to the Spin-Off. The Mutual Services and Transition Agreement governs the relationship between American Resources and SpinCo up to and after completion of the Spin-Off provides a non-exclusive list of services that might be provided including administrative support, accounting services, IT, legal, clerical, warehouse management services, and any other services that the Company may reasonably request from time to time, which allows either party to accept or reject services at each AREC's and the Company's sole discretion. See "Certain Relationships and Related Party Transactions" and "Selected Historical and Unaudited Pro Forma Condensed Financial Data," for more information.

Completion of the Spin-Off may be subject to the satisfaction or waiver of a number of conditions. In addition, American Resources has the right not to complete the Spin-Off if, at any time, American Resources' board of directors (the "American Resources Board") determines, in its sole and absolute discretion, that the Spin-Off is not in the best interests of American Resources or its stockholders or is otherwise not advisable. See "The Spin-Off-Conditions to the Spin-Off" for more information.

Following the Spin-Off, SpinCo and American Resources will each have a more focused business and be better positioned to invest in growth opportunities through tailored capital allocation and will be better able to execute on each company's specific strategic plans. SpinCo is a supplier of raw materials to the rapidly growing infrastructure marketplace, with a primary focus on the extraction, processing, transportation and distribution of rare earth and critical minerals from end of life products. SpinCo focuses on running efficient streamlined operations to be a supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable way by operating with low or no legacy costs, the SpinCo will work to maximize value for its investors, while being able to scale its operations to meet the growth of the markets it serves. Further, the Spin-Off will allow our management team to devote its time and attention to corporate strategies and policies that are based specifically on the needs of our Business and its dynamic end markets. We plan to create incentives for our management and employees that are more closely tied to business performance and our stockholders' expectations, which we believe will help us attract and retain highly qualified personnel. Additionally, we believe the Spin-Off will help align our stockholder base with the characteristics and risk profile of our business. See "The Spin-Off-Reasons for the Spin-Off" for more information.

Aspects of the Spin-Off may increase the risks associated with ownership of shares of SpinCo. In connection with the Spin-Off, we may incur substantial indebtedness in the future to execute the growth plan of the business. We may also enter into a revolving credit facility to be available for our working capital and other cash needs in the future as needed. See "Capitalization" and "Management's Discussion and Analysis of Financial Condition and Results of Operations- Liquidity and Capital Resources" for more information. Furthermore, as an independent entity we may lose some of the benefits of purchasing power, borrowing leverage and available capital for investments associated with being a larger entity. See "Risk Factors" in this Information Statement. As a consequence of the foregoing, there is no guarantee that any dividends will be declared on our common stock by our board of directors (our "Board"), or if so declared, will be continued in the future. For more information, see "Dividend Policy".

Following the Spin-Off, we expect our common stock to trade on a national exchange including New York Stock Exchange, OTC Markets or the NASDAQ Capital Market under the ticker symbol "[•]".

**Company Overview and History**

Electrified Materials Corporation is an Indiana corporation, formed on June 29, 2020 as American Metals LLC prior to being renamed to Electrified Materials Corporation and converted from a limited liability company to a corporation on December 9, 2024 ("EMC" or the "Company") by its current parent company, American Resources Corporation (Nasdaq: AREC). The Company is an aggregator and processor of used metals for recycling into new steel-based products for the recovery and sale of recovered metal and steel (the "Business activities").

Although a legal entity was formed in 2020, the historical business activities of the Company have been transacted in part within the American Metals / Electrified Materials Corporation legal entities as well as a number of other parent company subsidiaries, primarily the parent company's mining business. The historical business activities of the Company as well as the business activities of the parent company's other subsidiaries have been presented in the accompanying historical carved-out financial statements of Electrified Materials Corporation to reflect the historical operations of the parent company's collective subsidiaries that will be included in SpinCo on a post transaction basis. In addition to the historical Business activities, the carved-out financial statements include allocations of administrative expenses from the parent company that reflect those administrative costs expected to be incurred by SpinCo. The accompanying historical carved-out balance sheets of the Company reflect receivables from parent company subsidiaries for revenues of those business activities earned by those other subsidiaries that will be contributed to SpinCo and cash settled post transaction. Accrued expenses included in the carved-out balance sheets reflect the payable by the Company to the parent company for those direct expenses incurred by the Company and allocated expenses that SpinCo will assume in the transaction and will also cash settle post transaction.

From inception to date the majority of company activities and revenue have been focused on the aggregation and sale of scrap steel materials. The company has yet to commence meaningful operations in battery, magnet and advanced materials recycling.

Our main commercial operations have not yet commenced and plan to focus on the aggregation and physical separation of end of life lithium-ion battery material, rare earth magnet material and other advanced metal materials. Large scale commercial operations of these recycling facilities are in the initial planning phases and are not yet formulized to a point of capital commitments or anticipated to incur to commence these meaningful commercial operations.

The Company is pursuing the preprocessing of both end-of-life magnets, end of life batteries and ferrous metals, which enables the Company to ensure a domestic supply chain for copper, aluminum, steel, plastic as well as rare earth and battery elements through potential sales channels including its current affiliation and refining partnership with ReElement Technologies Corp, another subsidiary of American Resources Corporation. Through this affiliation and partnership, it has acquired the knowledge and knowhow of optimal and efficient processing methods to produce products that can be efficiently refined back to ultra-pure, manufacturing-grade qualities at ReElement. Furthermore, given its affiliation and partnership with ReElement, who has the ability to refine a wider range of lithium-ion battery chemistries, it has the ability to target a wider range of lithium-ion battery chemistries to be processed. While the company intends to pursue and grow the partnership with ReElement, these relationships have yet to yield material revenue results given both company's limited operating history.

The Company currently operates on a limited basis within the United States' coal country, primarily in eastern Kentucky as well as central Indiana, where there is often an abundance of used metal reserves from former thermal coal mines that have since been shut down. By leveraging its regional logistics and infrastructure, it can expand its presence in the high-growth market of used steel while also cleaning up old infrastructure left behind from the mining industry. Additionally, the Company's locations in Indiana are conveniently located close near top tier US auto manufacturing plants and close to large US based steel manufacturers with the hope of the ability to provide a steady source of recyclable materials.

The Company's refining partner, ReElement, uses an electrolysis process to help extract and concentrate rare earths and critical metals from carbon-based waste feedstocks, acid mine drainage, and magnets. Low pH water combined with high levels of iron and carbon found in acid mine drainage and carbon slurries that leach rare earth and battery metals also enables faster hydrogen production compared to traditional water-based electrolysis. Through this process, American Resources, and its affiliates, are focused on monetizing carbon production, hydrogen production, graphene slurry, and rare earth and battery metal concentrates. Once the extraction and concentration process has been completed, the next step is purification where these concentrated feedstocks will then be refined into high purity, commercial-grade products by ReElement to be sold into the electrified and defense tech economies. ReElement only has a limited history of commercially undertaking these steps and our company will continue to develop other commercial relationships.

ReElement is a provider of critical mineral refining solutions. These solutions can be more efficiently deployed than conventional methods or offered as a service within collaborative partners' flow sheets. EMC' aggregation, preprocessing, and concentration of diverse feedstocks complement this business, creating mutual synergies.

Lithium-ion battery technology continues to evolve rapidly. Advances in battery chemistry focus on improving energy density, safety, and reducing input and manufacturing costs. Energy storage requirements vary across different applications, including e-mobility, electrical grid efficiency, and consumer goods. Often, rapid technological advancements in battery chemistry complicate the recycling process, making it challenging to close the loop in the supply chain. ReElement's unique ability to economically refine material from various and evolving battery chemistries allows EMC to aggregate a wider variety of battery chemistries, beyond the industry's current capabilities.

Rare earth (RE) permanent magnets have become an important component in high-efficiency motors and an integral part of an electric vehicle's powertrain. These magnets deliver the power, torque, and precision required in finely-tuned EV motors, helping to reduce the EV's weight and increase the range of its battery. RE magnets are also widely used in wind turbine generators, cordless power tools, speakers, and hard disk drives. The recycling of RE magnets has often been deterred due to the difficulties of separating and refining the rare earth elements inherent in the magnets. However, ReElement's separation and purification technologies allow for the economical recycling and refining of rare earth elements. This enables EMC to leverage its synergies with ReElement to aggregate and process RE magnets into a concentrated solution that can be refined back into magnet-grade input products.

Services and competencies across the battery and magnet recycling value chain include aggregation, storage, logistics, sorting, assessment, dismantling, traceability, shredding, processing, refining, and sometimes metallization. EMC is strategically positioned as a preferred collection and preprocessing partner to ReElement for a select set of end-of-life and scrap material with valuable inherent elements.

***EMC's Business Model in alignment to UN's Sustainable Development Goals***

Moreover, the Company's and ReElement's business strategy are aligned with the United Nations ("UN") Sustainable Development Goals ("SDGs"), tracking, and improving on metrics within target UN SDGs, as seen in the diagram above. The Company believes that to make a true impact, they must materially advance progress towards meaningful environmental, social, and governance goals, and even further advance the fulfillment of the UN SDGs — giving due consideration to the potential impact pathways for a given investment<sup>1</sup>. The UN SDGs can only be realized with strong global partnerships and cooperation, which underpin the vision of EMC since its inception. The SDGs identified by the United Nations provide a common pathway for a better and more sustainable future.

EMC believes that the SDGs in business is good business as they work in the spirit of partnership and pragmatism to make proper choices now to improve life, in a sustainable way, for future generations by providing clear guidelines and targets for all countries to adopt in accordance with their own priorities and the environmental challenges of the world at large.

**Industry Overview**

Lithium-ion batteries have become the rechargeable battery of choice in cell phones, computers, electric vehicles, and large scale electric stationary storage systems. Global production capacity of lithium-ion batteries was approximately 1.96 terawatt hours per year ("TWh/yr.") at the end of 2023 and is forecasted to grow to approximately 7.3 TWh/yr. by 2030<sup>1</sup>, primarily driven by demand for electric vehicles. There are significant regulatory and social tailwinds driving demand growth for electric vehicles and large-format energy storage systems. This, in turn, is driving significant demand for battery materials such as lithium, cobalt, nickel, and manganese.

Lithium-ion batteries are designed in a variety of form-factors and chemistries. Current cell-level form-factors utilized are primarily cylindrical, prismatic, and pouch geometries. The most common battery cathode chemistries that have emerged are lithiated nickel cobalt aluminum oxide ("NCA"), lithiated nickel manganese cobalt oxide ("NMC"), lithiated cobalt oxide ("LCO"), and lithiated iron phosphate ("LFP"). The most common battery anode chemistries consist of graphite, silicon, and lithium metal. These chemistries are expected to evolve based on the development of new technologies and the availability, cost, and life-cycle environmental footprint of required minerals.

The current manufacturing supply chain for lithium-ion batteries is segmented and is organized into sub-industries that operate in a closed-loop fashion:

· battery material providers,

· chemical refiners,

· cell manufacturers, and

· end-use product (electric vehicles, stationary storage, consumer electronics, etc.) manufacturers.

Battery material providers can be classified into two categories: primary producers who explore for and extract virgin resources, and secondary producers who extract minerals from scrap and end-of-life products for re-sale into the lithium-ion battery supply chain. Chemical refiners source battery-grade materials from suppliers to manufacture into cell components, including cathodes, anodes, electrolytes, and separators. Currently the vast majority of global refining capacity is located outside the USA, primarily in Asia.

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<sup>1</sup> *<u>THE 17 GOALS \| Sustainable Development (un.org)</u>*

<sup>1</sup> Published by Statista Research Department January 21, 2025

Cell manufacturers source cell components and assemble those components into modules and packs, which are then sold to Original Equipment Manufacturers ("OEM" or "OEMs"). The OEM segment is the final step to manufacturing any end-use product containing lithium-ion batteries. OEM manufacturing capacity for electric vehicles, stationary storage, and consumer electronics is distributed globally and is expected to increase more than an order of magnitude over the next several years.

Each segment of the lithium-ion battery supply chain has seen disparate quantities of investment, with those variations further pronounced with specific geographies. Investment in battery material suppliers, both primary and secondary, and chemical refining capacity, has been far outpaced by investments in cell manufacturing and end-use OEMs, with anticipated battery production capacity forecasted to be roughly ten times the forecasted capacity for precursor metal refining. This disconnect in available feedstock and refining capacity has caused significant imbalances in the global supply chain, with those imbalances even more pronounced within the US and apparent by the volatility in price of these underlying materials. Further, while there is significant cell manufacturing and OEM manufacturing capacity in the USA, less than 1% of global battery materials needed to supply these facilities are sourced in the US, resulting in a severe domestic capacity imbalance and risk to the domestic economy. This risk in the security and cost of supply has resulted in numerous issues for industries reliant on lithium-ion batteries and has the potential to dramatically slow the adoption of electric vehicles, renewable energy storage and other uses for lithium-ion battery metals.

**Overview of Battery Materials Supply**

Supply of battery materials is currently dominated by primary production. Development of new sources of primary supply are typically subject to long development times and high capital costs, putting further constraints on the supply of these materials. In addition, the majority of primary production is concentrated in high geopolitical risk locations. Each of the primary minerals discussed are traded on a number of global commodity exchanges and market pricing for each is readily available. Additional details on the primary development of the main critical materials are discussed below:

· *Lithium:* Primary lithium is traditionally extracted from lithium brines or from hard rock deposits, and with recent innovations to also manufacture primary lithium from lithium-bearing claystone resources. Lithium brine deposits are accumulations of saline groundwater that are enriched in dissolved lithium. These deposits can be found in salt flats (such as those in South America), geothermal deposits (such as the Salton Sea in California), and oil fields. Extraction of lithium from brines typically involves large-scale evaporation techniques, thus consuming large amounts of water and energy. Hard rock sources of lithium are typically found in spodumene pegmatite deposits (such as those in Western Australia) and are mined using conventional mining and processing techniques. Extraction of lithium from claystone resources is a relatively new technique with various extraction technologies currently under development.

· *Nickel:* Primary nickel is mined from both surface and underground operations. Traditional processing techniques for nickel involve crushing, leaching, and floatation techniques. The primary competing source of demand for nickel is the steel industry, for both a steel alloy and in plating of stainless steel. Supply is currently dominated by production from Indonesia, Philippines, and Russia.

· *Cobalt:* Cobalt is typically mined from open pit and underground operations using traditional mining and processing techniques. The majority of cobalt production is a by-product of copper or nickel production. The competing source of demand for cobalt is steel production where cobalt is utilized as a high-strength steel alloy. Concentration of supply from the Democratic Republic of Congo has given rise to significant environmental, social, and governance ("ESG") concerns over the supply of primary cobalt resources.

· *Manganese:* Manganese is typically mined from open pit surface mines using traditional mining and processing techniques. As with the previously mentioned minerals, the primary competing source of demand is steel production, where manganese is used as an alloy and to deoxidize steel. South Africa is the world's largest producer of manganese, followed by Australia and China.

Secondary supply of feedstock, or recycling, is a relatively new market segment that has seen limited investment compared to the other segments of the battery supply chain. Current recycling techniques can be classified into two categories: High temperature thermal processes (pyrometallurgy) and mechanical crushing/simple hydrometallurgy processes. Both techniques process the feedstock batteries into an intermediate compound, a metal matte or black mass, which is then further processed through a refining process to extract the constituent metals. Both processes mainly focus on the recovery of nickel and cobalt. The majority of these operations are located in China and South Korea.

High temperature thermal processes account for the majority of current recycling operations. Batteries are placed into high-temperature furnaces and melted. A number of the key battery materials are lost in the high temperature processing and smelting phase, including lithium, graphite, and aluminum. The remaining metal matte is then processed through a hydrometallurgical refining process. The high temperature processing can present challenges to refining the metal matte from this process into products that meet the high purity specifications required for battery cathode manufacturing. Further, the process is energy intensive and causes substantial air and water pollution.

The mechanical crushing/simple hydrometallurgy approach involves placing batteries into large shredding/grinding machines. The resulting shredded material is then processed to produce a black mass. This resulting back mass is then processed through a bulk hydrometallurgical process designed to remove impurities and extract the high-value minerals. The high level of impurities in the black mass resulting from the shredding/grinding process makes the recovery of battery grade materials challenging. Additionally, the solvents used in the extraction process have adverse environmental impacts and significantly increase the costs associated with the recycling process.

The black mass resulting from the recycling process has become a readily tradable commodity. However, the quality and value of the black mass is highly variable based on the chemistry of the battery that is being processed and the amount of remaining impurities in the material. Metal refiners are developing processes to extract battery-grade materials from the various forms of black mass. The market, and thus pricing, for black mass is still developing.

The overall market and pricing for battery feedstock materials will be driven by the supply/demand balance of each commodity. Chemical refiners require specific purity and quality standards for the inputs for their manufacturing processes. Competition will be based on the ability of producers, both primary and secondary, to deliver reliable quantities of materials that meet the specifications required in the battery manufacturing process, while maintaining cash costs that are below the marginal cost of supply.

**Metals Markets**

Most of the minerals and metals that can be recovered in the recycling of batteries of various chemistries are also globally traded commodities. Lead, copper, cobalt, nickel, and other metals can be recovered and sold in pure metal form into these markets at the prevailing price or sold directly to a customer at a price set relative to the current market price. For example, battery metals are globally traded metal commodities. Metals such as lead for lead acid batteries ("LABs") and nickel, cobalt, copper and lithium for LIBs are the essential components for the world's rechargeable batteries. These metals are globally traded primarily on the London Metals Exchange (LME) and the Shanghai Metals Exchange (SHME) in China also trades these elements. Unlike lead markets where recycled mineral content achieves up to 90% of new LAB batteries in a mature industry, lithium and related metals recycling currently achieves only 1-3% recycled mineral content of new lithium-ion batteries, relying almost entirely on newly mined ore and refining to meet global demand.

Although metals are traded as a commodity on the various global exchanges, the major sales are directly between producers/traders and users (whom are typically battery manufacturers). The LME daily price is used as the benchmark in forming the basis of physical trades, forward contracts, and hedge strategies for both primary and secondary metals, in metal form. Based on market and product knowledge with buyers of metals in the U.S. and global metals markets, different grades (termed alloys) of metal are traded at a premium to the base LME price. Metal alloys, which are typically designed specifically for the customer, are also sold at a premium above the base LME, whereas byproducts (generally lower purity, compounds, or scrap) are traded at a discount to the LME as they are based on the underlying metals content and its form.

***The Business Opportunity***

Imagine a world without smartphones, laptops, cars, wind turbines, and even military weapon systems. It may sound like a dystopian future, but the reality is, all of these modern-day necessities rely on a group of minerals known as rare earth metals. These critical minerals are essential not only for high-tech products but also to power a significant portion of the economy. They play a crucial role in the production of electronics and are key to the growth of the electric vehicle market. However, despite their crucial role, our supply of rare earth metals is in short supply and the vast majority of the market is controlled by China<sup>2</sup>. Experts believe that this domination poses a significant risk to the global technology-driven economy and highlights the urgent need for alternative sources of these essential minerals.

The Company along with American Resources Corporation's (Nasdaq: AREC) subsidiary, ReElement Technologies Corp ("ReElement"), are on a mission to diversify global reliance on rare earth reliance away from China. By leveraging its innovative technology, the Company, together with ReElement, can capture, process and purify rare earth metals from end-of-life products such as magnets and lithium batteries.

Rare earth metals are a group of 17 elements that are critical components in high-tech products such as smartphones, wind turbines, electric vehicles, and military equipment. China dominates the global supply of rare earth metals, producing more than 80% of the world's supply<sup>3</sup>. There are a few reasons for China's dominance in rare earth metals:

· <u>Abundant resources</u>: China has abundant reserves of rare earth elements, which has enabled it to dominate the market for these materials.

· <u>Refining</u>: China's low environmental standards has allowed them to dominate the separation and purification of rare earth metals without much innovation while polluting the planet.

· <u>Cost advantage</u>: China's labor costs and production costs are lower than in other countries, which has made it easier for China to produce rare earth metals at a lower cost.

· <u>Government support</u>: The Chinese government has invested heavily in the rare earth metals industry, providing subsidies and other support to Chinese companies.<sup>4</sup>

This dominance of the rare earth metals market by China creates a single point of failure in the supply chain; if China were to cut off the supply of rare earth metals to the rest of the world, it could disrupt the production of high-tech products, cause widespread economic disruption, and present a major threat to U.S. national security. Additionally, China's control of the market gives it significant leverage over other countries, allowing it to manipulate prices and restrict supply as it sees fit. This can lead to increased costs for consumers and can harm industries that rely on these materials. Overall, reducing reliance on China for rare earth metals will require a concerted effort from the United States government, the private sector, and academia to develop domestic production, alternative sources, advanced refining methods and new materials. Reusing & recycling are key factors that could drive alternative sourcing and provide an opportunity to obtain rare earth metals outside of a mining environment.

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<sup>2</sup> <u>The global fight for critical minerals is costly and damaging (nature.com) July 19, 2023</u> 

<sup>3</sup> <u>China Dominates the Rare Earths Market. This U.S. Mine Is Trying to Change That. – POLITICO December 14, 2022</u>

<sup>4</sup> *Id*

*Vital Role of Recycling Battery Products*

Currently, only a small fraction of lithium-ion batteries are recycled and that must get close to 100% both to avoid environmental issues and to recapture the critical minerals in those spent batteries to feed the massive demand growth curve. Battery recycling helps address this problem, but current pyro-based battery recycling technology (smelting) also creates harmful emissions, potentially creating new climate problems faster than they are being solved. There are alternative hydro-based technologies available and rely on older methodologies that are known to create significant waste streams, potentially with more waste than product recovered, which have their own negative environmental and economic impacts.

"Reduce, reuse, and recycle" are important concepts that are consistently promoted by the government to help conserve resources and prevent excess landfill use. While we may initially think of aluminum and paper products when "recycling" comes to mind, it could be critical in maintaining a more efficient ecosystem for rare earths. Recycling and reusing rare earth metals is important for several reasons:

· <u>Conservation of resources</u>: Rare earth metals are finite resources, and recycling and reusing these materials can help to conserve these resources for future generations.

· <u>Environmental protection</u>: The mining, refining, and production of rare earth metals can have significant environmental impacts, including deforestation, soil degradation, and water pollution. Recycling and reusing these materials can help to reduce these impacts and promote sustainability.

· <u>Cost savings</u>: Recycling rare earth metals can be less expensive than mining and refining new materials, which can help to reduce the cost of production for high-tech products.

· <u>Reduced dependence on imports</u>: A significant portion of the world's rare earth metals are supplied by China, and recycling and reusing these materials can help to reduce dependence on foreign sources, promoting energy security.

· <u>Waste reduction</u>: Recycling rare earth metals can help to reduce the amount of waste generated by the production and disposal of high-tech products, promoting a circular economy.

Recycling and reusing rare earth metals are becoming increasingly important as demand for these materials continues to grow, and as concerns about the environmental impact of mining and the potential for supply disruptions grow. By recycling and reusing these materials, we can help to conserve resources, protect the environment, reduce costs, reduce dependence on imports, and promote a sustainable and circular economy.

![](ems_ex991img22.jpg)

Creating reuse programs for rare earths in end-of-life products is imperative according to experts. Recycling can increase the amount of rare earths available for manufacturing permanent magnets and create a new source of supply of these scarce commodities. Currently, besides the Company, there are few at-scale recycling programs that separate out rare-earth metals, although some IT equipment, large appliances, and electric vehicle components with permanent magnets are repurposed<sup>5</sup>.

To make sure that the rare earths are isolated and recycled, governments need to establish standards to ensure that manufacturers design their products to facilitate reuse. Governments also need to create incentives to trigger investments in recycling facilities. Rare-earth recycling is in its early stages, and financial support or tax deductions will be needed to encourage companies to get into an energy-intensive and, therefore, costly endeavor with only limited amounts of minerals available for recycling. The incentives would ideally catalyze collaboration among midstream and downstream rare-earth players to develop the recycling market in a way that builds efficiency into the process; reduces costs for both the recycler purchasing the end-of-life products and the manufacturer buying the recycled minerals; and allows for a pricing structure that generates consistent profits.

**Global Market Demand**

The global demand for rare earths is expected to reach 466 kilotons by 2035, up from 170 kilotons in 2022, an 8% compound annual growth rate<sup>6</sup>. The increasing demand for metals coupled with rising focus on conservation of natural resources and reduction in greenhouse gas emissions is the crucial factor driving the market growth. As the world shifts towards decarbonization, careful management of critical minerals has become more and more important. Critical minerals, which include copper, lithium, nickel, cobalt, and rare earth elements, are essential for clean energy technologies like solar panels, wind turbines, and batteries. To fulfill ambitious renewable energy targets recently set by countries and companies, demand for critical minerals in the energy sector could increase six-fold by 2040<sup>7</sup>.

The critical minerals market is complex because both the production and processing of major critical minerals tend to be highly concentrated in a few countries. An example of concentrated production is seen in the Democratic Republic of Congo, which produces 70 percent of cobalt. Meanwhile, concentrated processing is particularly noticeable in China, which is responsible for more than 60 percent of lithium and cobalt and nearly 90 percent of rare earth elements.

____________

5 <u>Five Steps for Solving the Rare-Earth Metals Shortage \| BCG July 6, 2023</u> 

<sup>6</sup> *Id*

7 <u>Clean energy demand for critical minerals set to soar as the world pursues net zero goals - News – IEA May 5, 2021</u> 

The methods of lithium extraction and processing vary depending on the source material. Lithium brine recovery is typically a simple but time-consuming process. In addition, the recycling of lithium-ion batteries is the major secondary source of Lithium. The pretreatment process in lithium-ion battery recycling can both improve the recovery rate of the valuable components and significantly lessen the subsequent energy consumption. Notably, pretreatment, metal extraction, and product preparation stages play vital roles in all lithium-ion battery recovery processes, based on pyrometallurgy, hydrometallurgy, bio-metallurgy, direct recycling, and mechanical treatment and water leaching. Lithium-ion battery recycling helps to conserve resources and reduces environmental pollution. The mining process for metals used in electric vehicle batteries is very energy intensive and can cause environmental harm. These metals can contaminate water, soil and air harming the ecology.

The world is struggling to work out how to equitably meet demand for these rare earth minerals. In July 2023, in its inaugural Critical Minerals Market Review, the International Energy Agency counted nearly 200 national policies and strategies surrounding the critical minerals needed to keep the lights on and the wheels turning in a low-carbon world<sup>8</sup>. National strategies are necessary, but they should not exclude international cooperation and coordination according to these experts, which need to happen fast.

Demand outlooks and supply vulnerabilities vary widely by mineral, but the energy sector's overall needs for critical minerals could increase by as much as six times by 2040, depending on how rapidly governments act to reduce emissions. Not only is this a massive increase in absolute terms, but as the costs of technologies fall, mineral inputs will account for an increasingly important part of the value of key components, making their overall costs more vulnerable to potential mineral price swings. The commercial importance of these minerals also grow rapidly: today's revenue from coal production is ten times larger than from energy transition minerals. However, in climate-driven scenarios, these positions are reversed well before 2040.

Techniques that minimize damage to the environment include using a renewable source for onsite energy, implementing water recycling and reclamation, and strictly containing and disposing of toxic waste, such as the tailings from rare-earth extraction. An abundance of critical minerals is so far being mined in only a small number of countries.<sup>9</sup> Most cobalt comes from the Democratic Republic of the Congo (DRC) and most nickel from Indonesia. China dominates in graphite and rare-earth elements. In this sense, the situation is not dissimilar to that of fossil fuels, for which a few countries have tended to dominate supply.

**EMC's Products Market Size and Opportunity**

The global metal recycling market size was estimated at US$957.8 billion in 2019 and is predicted to register a compound annual growth rate (CAGR) of 4.9% from 2020 to 2027 according to the August 10, 2020 study, "*Ferrous Scrap Recycling Market Size Worth $111.9 Million By 2027*" by Grand View Research, Inc. The increasing demand for metals coupled with a rising focus on conservation of natural resources and reduction in greenhouse gas emissions is the crucial factor driving the market growth. Metal recycling allows manufacturers to procure raw materials for the production of finished goods without degrading their properties. The global recycled metal market size is projected to be worth around US$102 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 4.2% during the forecast period 2021 to 2030, according to a study by Precedence Research published in Global Recycling Magazine in January 2022. The study also found that North America is estimated to be the most opportunistic market during the forecast period due to the rising popularity of electric vehicles and demand for advanced electronic goods which are the major factors of growth. Furthermore, metal recycling is less costly than the primary production of metal. In addition, the environmental imperative also plays a significant role in driving industry growth.

____________

<sup>8</sup> <u>Critical Minerals Market Review 2023 – Analysis – IEA July 11, 2023</u> 

<sup>9</sup> Five Steps for Solving the Rare-Earth Metals Shortage \| BCG July 6, 2023

Steel is the dominant product segment as it is largely utilized in several end-use industries such as construction, automotive, consumer goods, and others. Demand for copper recycling is anticipated to increase owing to high primary manufacturing cost.<sup>10</sup> There is considerable demand for steel and aluminum from the global construction industry. Rising urbanization owing to increasing global disposable income especially in emerging economies is likely to contribute to growth of construction industry and thereby drive the demand for construction metal products. This in turn is expected to drive the growth of recycling industry according to *Grand View Research, Inc.'s* study. In North America, roughly 42% of the crude steel is produced using recycled materials. This illustrates the massive significance of recycling in the region. The country is a major producer of secondary aluminum. Further, the U.S. produces steel mainly using the EAF process which consumes significant quantity of scraped material.

**EMC's Process of Aggregating, Processing and Selling Recovered Steel and Metals**

The Company utilizes a multi-stepped approach for its aggregation, sorting and processing. The Company designs and implements different processing equipment and technology for the unique feedstocks allowing for more efficient and higher recovery operations.

**Equipment and Production Lines**

The Company will initially have production lines with equipment dedicated to the shredding and preprocessing of power tool motors and batteries, electric vehicle rotors and batteries and energy storage battery systems.

The selected equipment will come from multiple venders based in North America, the European Union and Asia.

The Company monetizes multiple streams of material:

· Battery materials – primary products include 'Black Mass', graphite, phosphate, iron, copper, aluminum and plastics.

· Magnet materials – primary products include iron, steel, plastics and mixed rare earths.

**Research and Development**

The Company is in discussions with its equipment providers to provide research and development feedback regarding the Company's feedstock streams.

**Supply Feedstock**

The Company has multiple streams of feedstock which include North American auto OEMs, wind farm owners, international power tool companies and energy storage companies.

**Sales and Marketing and Customer Contracts**

The Company has several sales channels for its various product streams. These sales channels range from large steel manufacturers to the refiners of the critical and rare earth elements.

**Intellectual Property**

EMC does not currently hold any patents or any registered trademarks.

**Competition**

EMC competes with several processors in North America, including without limitation, Redwood Materials, Ascend Elements and Cirba Solutions.

____________

<sup>10</sup> Metal Recycling Market Analysis 2020, Grand View Research, Inc., USA. January 2020

The Company expects to recover several types of byproducts as well as battery cathode grade lithium, nickel, cobalt, and manganese products through its recycling process and will compete with two categories of producers of these commodities: competing recycling processers and facilities and primary producers of the battery materials.

Competing recycling processes and facilities are primarily located in the US, Europe, and China and employ various techniques for extraction of the contained battery metals. In general, processers that employ high-temperature thermal processes or shredding/solvent extraction techniques focus on the recovery of nickel and cobalt, with limited ability to recover lithium, manganese, or other metals. The Company's process to extract each of the battery components enables the Company to extract additional value from the same amount of feedstock to enable low-cost and low-environmental operations.

Primary producers of lithium, nickel, cobalt, and manganese are distributed globally. Lithium production is largely located in the Americas, Australia, and Asia. Approximately two-thirds of cobalt production is sourced from the Democratic Republic of Congo. Nickel production is dominated by Indonesia, China, and Australia. Manganese production is concentrated in South Africa, Australia, and China.

The commodities and specialty chemicals that are ultimately used by cathode manufacturers are required to meet stringent specifications, whether that mineral is sourced from a primary or a secondary resource. Thus, the competition in these markets will be based on product quality and reliability of supply.

**Employees**

EMC currently utilizes shared services from our parent organization as well as outside consultants.

**Facilities** 

The Company currently leases an operating location at 1801 S. 8<sup>th</sup> Street Noblesville, Indiana 46060, 3611 South Adams Street, Suite C, Marion, Indiana 46953 and 1845 Highway 15 South, Hazard, KY 41701. All of these locations are used, or will be used, for material storage as well as pre-processing work. The Company has offices located at 12115 Visionary Way, Suite 174 in Fishers, Indiana 46038.

**Regulatory Environment**

The Company in the future may handle end-of-life material including Lithium-Ion batteries. The storage, handling and processing of these materials may fall under several regulatory frameworks including the potential requirement to obtain permits from the US Environmental Protection Agency including the permit RCRA Part A or Part B. The company currently does not have these permits. Given the potential complexity of these frameworks, the Company relies upon third-party subject matter experts.

**Legal Proceedings**

From time to time, we may become a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. While the outcomes of these matters are uncertain, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on our financial position, results of operations or cash flows.

**Corporate Information**

Electrified Materials Corporation is an Indiana Corporation with a corporate mailing address of 12115 Visionary Way Suite 174, Fishers, Indiana, 46038.

Our telephone number is (317) 855-9926. Public information related to our parent company, American Resources Group and information contained on American Resources Group's website is not a part of this proxy statement/ prospectus.

**Risk Factors**

You should carefully consider all of the information in this Information Statement and each of the risks described in this Information Statement, which we believe are the principal risks that we face, including but not limited to:

· Risks relating to our business, as described in "Risk Factors-Risks Relating to Our Business,"

· Risks relating to the Spin-Off, as described in "Risk Factors-Risks Relating to the Spin-Off,"

· Risks relating to ownership of our common stock and the securities markets, as described in "Risk Factors-Risks Relating to Our Common Stock and the Securities Market."

**Questions and Answers about the Spin-Off**

The following provides only a summary of certain information regarding the Spin-Off. You should read this Information Statement in its entirety for a more detailed description of the matters described below.

Q: What is the Spin-Off?

A: The Spin-Off is the method by which we will separate from American Resources. In the Spin-Off, American Resources will distribute to its stockholders a majority the outstanding shares of our common stock. Following the Spin-Off, we will be an independent, public company, and it is anticipated that American Resources will retain an ownership interest less than 10% in our Company. You do not have to pay any consideration or give up any portion of your American Resources common stock to receive our common stock in the Spin-Off.

Q: What are the reasons for the Spin-Off?

A: The American Resources Board believes that the separation of the Electrified Materials division from American Resources is in the best interests of American Resources stockholders and for the success of the Business for a number of reasons. Primarily, American Resources and SpinCo will each have a more focused business, able to attract team members and be better able to dedicate financial, management and other resources to leverage their respective areas of strength and differentiation once the Spin-Off occurs. Mark C. Jensen the Chief Executive Officer ("CEO") and Chairman for American Resources and will serve as Executive Chairman of the Board of Directors for the Company following the separation. Mr. Jensen will allocate his time and responsibilities using best business judgement and in dialogue with the separate board of directors for each company, in addition to the other companies he is involved with. Although Mr. Jensen will have roles at both companies following the spin-off, the Company will provide equity grants to its directors and will seek to provide future incentives to its management, including equity compensation, to further align their interest with the Company. The boards of directors of American Resources and the Company will owe fiduciary duties to their respective stockholder bases, with matters governed by American Resources board of directors will be specific to American Resources, and matters governed by the company's board of directors will be specific to the Company. See "The Spin-Off-Reasons for the Spin-Off" for more information.

Q: Will Current Officers of American Resources also be Officers of Electrified Materials?

A: Yes, both the current American Resources CEO, Mark Jensen and the current American Resources CFO, Kirk Taylor will carry these respective officer positions with Electrified Materials after the Spin-Off. Each officer will devote no less then a minimum of 40 working hours a week to Electrified Materials.

Q: Is the completion of the Spin-Off subject to the satisfaction or waiver of any conditions?

A: Yes, the completion of the Spin-Off is subject to the satisfaction, or the American Resources Board's waiver, of certain conditions. Any of these conditions may be waived by the American Resources Board to the extent such waiver is permitted by law. In addition, American Resources may at any time until the Share Distribution decide to abandon the Share Distribution or modify or change the terms of the Share Distribution. See "The Spin-Off-Conditions to the Spin-Off" for more information.

Q: Will the number of American Resources shares I own change as a result of the Spin-Off?

A: No, the number of shares of American Resources common stock you own will not change as a result of the Spin-Off.

Q: Will the Spin-Off affect the trading price of my American Resources common stock?

A: We expect the trading price of shares of American Resources common stock immediately following the Share Distribution to be lower than the trading price immediately prior to the Share Distribution because the trading price will no longer reflect the value of SpinCo. There can be no assurance that, following the Share Distribution, the Combined trading prices of the American Resources common stock and our common stock will equal or exceed what the trading price of American Resources common stock would have been in the absence of the Spin-Off.

It is possible that after the Spin-Off, the combined equity value of American Resources and SpinCo will be less than American Resources' equity value before the Spin-Off.

Q: What will I receive in the Spin-Off in respect of my American Resources common stock?

A: As a holder of American Resources common stock, you will receive a dividend of [•] share of our common stock for every share of American Resources common stock you hold on the Record Date (as defined below). The distribution agent will distribute only whole shares of our common stock in the Spin-Off. See "The Spin-Off-Treatment of Fractional Shares" for more information on the treatment of the fractional share you may be entitled to receive in the Share Distribution. Your proportionate interest in American Resources will not change as a result of the Spin-Off. For a more detailed description, see "The Spin-Off."

Q: What is being distributed in the Spin-Off?

A: American Resources will distribute approximately [•]% of the shares of our common stock in the Spin-Off, based on the approximately [•] shares of American Resources common stock outstanding as of [•], 2024. The actual number of shares of our common stock that American Resources will distribute will depend on the total number of shares of American Resources common stock outstanding on the Record Date. The shares of our common stock that American Resources distributes will constitute all of the issued and outstanding shares of our common stock immediately prior to the Share Distribution. For more information on the shares being distributed in the Spin-Off, see "Description of Our Capital Stock-Common Stock."

Q: What is the record date for the Share Distribution?

A: American Resources will determine record ownership as of the close of business on [•], 2025, which we refer to as the "Record Date."

Q: When and how will the Share Distribution occur?

A: The Share Distribution will be effective as of 11:59 p.m., New York City time, on [•], 2025, which we refer to as the "Share Distribution Date." On the Share Distribution Date, American Resources will release the shares of our common stock to the distribution agent to distribute to American Resources stockholders. The whole shares of our common stock will be credited in book-entry accounts for American Resources stockholders entitled to receive the shares in the Share Distribution.

Q: What do I have to do to participate in the Share Distribution?

A: You are not required to take any action in order to participate, but we urge you to read this Information Statement carefully. All holders of American Resources' common stock as of the Record Date will participate in the Share Distribution. Holders of American Resources common stock on the Record Date will not need to pay any cash or deliver any other consideration, including any shares of American Resources common stock, in order to receive shares of our common stock in the Share Distribution. In addition, no stockholder approval of the Share Distribution is required. We are not asking you for a vote and request that you do not send us a proxy card.

Q: If I sell my shares of American Resources common stock on or before the Share Distribution Date, will I still be entitled to receive shares of SpinCo common stock in the Share Distribution?

A: If you sell your shares of American Resources common stock before the Record Date, you will not be entitled to receive shares of SpinCo common stock in the Share Distribution. If you hold shares of American Resources common stock on the Record Date and you decide to sell them on or before the Share Distribution Date, you may have the ability to choose to sell your American Resources common stock with or without your entitlement to receive our common stock in the Share Distribution. You should discuss the available options in this regard with your bank, broker or other nominee. See "The Spin-Off-Trading Prior to the Share Distribution Date" for more information.

Q: How will fractional shares be treated in the Share Distribution?

A: The distribution agent will not distribute any fractional shares of our common stock in connection with the Spin-Off. Instead, the distribution agent will round any fractional shares to the nearest whole number of shares at the time of the distribution of shares of the Spin-Off. See "How will our common stock trade?" for additional information regarding "when-issued" trading and "The Spin-Off-Treatment of Fractional Shares" for a more detailed explanation of the treatment of fractional shares.

Q: What are the U.S. federal income tax consequences to me of the Share Distribution?

A: For U.S. federal income tax purposes, no gain or loss will be recognized by, or be includible in the income of, a Holder (as defined in "The Spin-Off-Material U.S. Federal Income Tax Consequences of the Spin-Off") as a result of the Share Distribution. After the Share Distribution, American Resources stockholders will allocate their basis in their American Resources common stock held immediately before the Share Distribution between their American Resources common stock and our common stock in proportion to their relative fair market values on the date of Share Distribution.

Q: Does SpinCo intend to pay cash dividends?

A: Subject to the sole discretion of our Board and the considerations discussed below, once the Spin-Off is effective, we do not anticipate paying cash dividends on our common stock for the foreseeable future. Among the items we will consider when establishing a dividend policy will be the capital needs of our business and opportunities to retain future earnings for use in the operation of our business and to fund future growth. There is no guarantee that any dividends will be declared by our Board, or if so declared, will be continued in the future. See "Dividend Policy" for more information.

Q: Will SpinCo incur any debt prior to or at the time of the Share Distribution?

A: SpinCo will not incur any additional debt as a result of the Share Distribution. Post the Spin-Off, we may incur substantial indebtedness in an aggregate principal amount to be determined. We may also enter into a revolving credit facility to be available for our working capital and other cash needs. The terms of such indebtedness are subject to change and will be finalized prior to the closing of the Spin-Off. See "Capitalization" and "Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources" for more information.

Q: How will our common stock trade?

A: We intend to apply to list our common stock on the NASDAQ Capital Market under the symbol "[•]". Currently, there is no public market for our common stock. We cannot predict the trading prices for our common stock before, on or after the Share Distribution Date. We anticipate that trading in our common stock will begin on a "when-issued" basis as early as one trading day prior to the Record Date for the Share Distribution and will continue up to and including the Share Distribution Date. "When-issued" trading in the context of a spin-off refers to a sale or purchase made conditionally on or before the Share Distribution Date because the securities of the spun-off entity have not yet been distributed. "When-issued" trades generally settle within two trading days after the Share Distribution Date. On the first trading day following the Share Distribution Date, any "when-issued" trading of our common stock will end and "regular-way" trading will begin. Regular-way trading refers to trading after the security has been distributed and typically involves a trade that settles on the second full trading day following the date of the trade. See "The Spin-Off-Trading Prior to the Share Distribution Date" for more information.

Q: Do I have appraisal rights in connection with the Spin-Off?

A: No. Holders of American Resources common stock are not entitled to appraisal rights in connection with the Spin-Off.

Q: Who is the transfer agent and registrar for SpinCo common stock?

A: VStock Transfer LLC is the transfer agent and registrar for SpinCo common stock.

Q: Are there risks associated with owning shares of SpinCo common stock?

A: Yes, there are substantial risks associated with owning shares of SpinCo common stock. Accordingly, you should read carefully the information set forth under "Risk Factors" in this Information Statement.

Q: Where can I get more information?

A: If you have any questions relating to the mechanics of the Share Distribution, you should contact the distribution agent at: Before the Spin-Off, if you have any questions relating to the Spin-Off, you should contact American Resources at:

Investor Relations

American Resources Corporation

12115 Visionary Way, Suite 174

Fishers, IN 46038

www.americanresourcescorp.com

After the Spin-Off, if you have any questions relating to SpinCo, you should contact us at: Investor Relations

Electrified Materials Corporation

PO Box 606

Fishers, IN 46038

(317) 855-9926

www.ematerialscorp.com

**RISK FACTORS**

You should carefully consider all of the information in this Information Statement and each of the risks described below, which we believe are the principal risks that we face. Some of the risks relate to our business, others to the Spin-Off. Some risks relate principally to the securities markets and ownership of our common stock.

Any of the following risks, as well as other risks not currently known to us or that we currently consider immaterial, could materially and adversely affect our business, financial condition, results of operations and cash flows and the actual outcome of matters as to which forward-looking statements are made in this Information Statement.

The following risk factors are not necessarily presented in order of relative importance and should not be considered to represent a complete set of all potential risks that could affect us.

**Risks Relating to Our Business**

*References in the following passage to "we," "us," "our," "EMC," and the "Company", under this heading "Risks Related to EMC's Business," refer to Electrified Materials Corporation, an Indiana Corporation only.*

*We have no operating history as an independent, publicly traded company, and our historical financial information is not necessarily representative of the results we would have achieved as an independent, publicly traded company and may not be a reliable indicator of our future results.*

We derived the historical financial information included in this Information Statement from American Resources' consolidated financial statements, and this information does not necessarily reflect the results of operations and financial position we would have achieved as an independent, publicly traded company during the periods presented, or those that we will achieve in the future. This is primarily because of the following factors:

· Prior to the Spin-Off, we operated as part of American Resources' broader corporate organization, and American Resources performed various corporate functions for us. Our historical financial information reflects allocations of corporate expenses from American Resources for these and similar functions. These allocations may not reflect the costs we will incur for similar services in the future as an independent publicly traded company.

· We entered into transactions with American Resources that did not exist prior to the Spin-Off, such as the Mutual Services and Transition Agreement which may cause us to incur new costs. See "Certain Relationships and Related Party Transactions-Agreements with American Resources."

· Our historical financial information does not reflect changes that we expect to experience in the future as a result of our separation from American Resources, including changes in the financing, cash management, operations, cost structure and personnel needs of our business. As part of American Resources, we enjoyed certain benefits from American Resources' operating diversity, size, purchasing power, borrowing leverage and available capital for investments, and we may lose such benefits after the Spin-Off. As an independent entity, we may be unable to purchase goods, services and technologies, such as insurance and health care benefits and computer software licenses, or access capital markets on terms as favorable to us as those we obtained as part of American Resources prior to the Spin-Off, and our business, financial condition, results of operations and cash flows may be adversely affected. In addition, our historical financial data do not include an allocation of interest expense comparable to the interest expense we will incur as a result of the Reorganization Transactions and the Spin-Off.

We have no operating history as an independent, publicly traded company. Furthermore, while the individualized business has a history of operations, we may not be successful in continuing to operate and grow our business with a narrower focus and outside the broader American Resources operating environment.

We may face operational inefficiencies as we continue to integrate our business after the Spin-Off. Following the Spin-Off, we will also face additional costs and demands on management's time associated with being an independent, publicly traded company, including costs and demands related to corporate governance, investor and public relations and public reporting. We cannot assure you that we will generate profits as an independent, publicly traded company. For additional information about our past financial performance and the basis of presentation of our financial Statements, see "Selected Historical and Unaudited Pro Forma Condensed financial Data," "Unaudited Pro Forma Condensed financial Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical financial Statements, and the Notes thereto, included elsewhere in this Information Statement.

***We have a limited operating history and limited revenue producing operations and are currently undertaking a reset of our business strategy. Therefore, it is difficult for potential investors to evaluate our business.***

EMC was formed in 2020 and launched in 2021. From inception through December 31, 2024, we generated a total of $356,000 of revenue, all of which was derived primarily from the sale of scrap metal. Since inception, the business has been focused on the sale of both ferrous and non-ferrous metal scrap. Beginning in 2023, EMC has additionally begun focusing on the aggregation and recycling of material containing rare earth permanent magnets. Based upon our success to date in aggregating material and recovering high value material containing rare earth permanent magnets, we anticipate substantial growth from the implementation of our business strategy and course of operations. EMC will also begin fostering supply chain partners for end of life lithium-ion batteries. However, our limited operating history makes it difficult for potential investors to evaluate our technology or prospective operations and we are, for all practical purposes, an early-stage company subject to all the risks inherent in the initial organization, financing, expenditures, complications, and delays in a new business, including, without limitation:

· our ability to successfully apply, and realize the expected benefits of applying, our technology to extract high value metals found in lithium-ion batteries, including cobalt, nickel, and copper;

· the timing and success of our plan of growth of commercialization; and

· our ability to successfully manage growth and develop our technology to recycle lithium-ion batteries on a commercial scale.

Investors should evaluate an investment in us in light of the uncertainties encountered by developing companies in a competitive environment. There can be no assurance that our efforts will be successful or that we will ultimately be able to attain profitability*.*

The independent auditor's report expresses substantial doubt about our ability to continue as a going concern.

***We are significantly dependent on the availability of materials for recycling.***

EMC is reliant on obtaining lithium-ion batteries and battery manufacturing scrap for recycling through its contracts with third-party suppliers. The Company maintains commercial contracts with leaders in the electric vehicle ("EV") and lithium-ion battery ("LIB") ecosystem, including battery manufacturers and automotive original equipment manufacturers, as well as energy storage, consumer electronics and transportation companies. EMC's cash flows are premised on the expectation that it will attract new suppliers by differentiating itself based on the sustainability of its process and the robustness of its technology, which in turn will enable EMC to offer competitive terms to suppliers. EMC believes it has a distinct advantage in effectively and efficiently "closing the loop" with the recycling of end-of-life material containing critical minerals, such as lithium-ion batteries and permanent magnets, through its preferred relationship with ReElement Technologies Corporation. Through this existing synergistic relationship with ReElement, EMC believes it will be able to attract new suppliers by offering a complete life-cycle solution to bring the inherent critical minerals back to their highest value forms, versus exporting and selling a lower quality and lower value products for further refining, which is the current state of the industry.

There can be no assurance that EMC will attract new suppliers or expand its supply pipeline from existing suppliers, or that its relationship, including payment terms, with current suppliers will not continue to be adversely affected as a result of the current status of its business, the Company's ability to make timely payments to suppliers and any decline in supply volume from existing suppliers or an inability to source new supplier relationships could have a negative impact on EMC's results of operations and financial condition.

***Our performance is tied to customer demand for recycled materials, the decrease of which could adversely affect our EMC's performance.***

EMC currently recognizes revenue from sale of scrap metal and in the future will recognize , sales of two intermediate products to be produced at EMC's Noblesville Indiana and Marion Indiana locations. EMC expects to recognize revenue from the sale of critical battery materials such as black mass and separated magnet material. The demand for EMC's recycling services and products is driven in part by the demand for EVs (including automobiles, e-bikes, scooters, buses and trucks) and battery energy storage systems. A decline in the adoption rate of EVs, or a decline in the support by governments for "green" energy technologies could reduce the demand for EMC's recycling services and products.

EMC relies on a limited number of customers from whom it generates most of its revenue. EMC has yet to enter into long term supply agreements for end of life or recycled material. If the Company or its off-take partners are unwilling or unable to fulfil their respective contractual obligations, if either party fails to perform under the relevant contract, or if these off-take partners otherwise terminate these agreements prior to their expiration, the Company's business could suffer and EMC may not be able to find other off-take partners on similar or more favorable terms, which could have a material adverse effect on its business, results of operations and financial condition.

***Our business is subject to risks associated with fluctuations in commodity prices.***

The prices that EMC pays for battery feedstock and the revenue that EMC recognizes from the sale of products produced at EMC'slocations will be impacted by the commodity prices for the metals contained in those battery feedstocks or products, notably nickel, cobalt, lithium and copper. As a result, fluctuations in the prices of these commodities affect EMC's costs and revenues. The amount of revenue that EMC will recognize from the sale of these products will also be impacted by the commodity prices for the metals contained in these products, notably lithium, nickel, cobalt, and copper. While EMC's costs and revenues may vary with commodity prices and specialty product prices, the Company believes the range of end products that EMC expects to produce will result in a diversification effect that will provide it with a natural hedge against significant variations in commodity pricing related to a single product. EMC's product diversification from both critical battery materials and rare earth elements is unique in that most processors of end-of-life material containing critical minerals is largely focused on processing lithium-ion batteries. EMC has the ability to process both lithium-ion batteries of any chemistry to produce a monetizable product to be further refined and will also produce a mixed rare earth element product from waste permanent magnets which remains in high demand due to growth in advanced technologies such as electric mobility and artificial intelligence. Furthermore, EMC's feedstock acquisition costs are proportionately tied to their inherent mineral commodity prices. EMC's business model aggregates, processes and monetizes its products quickly rather than sit on inventory, which further reduces any commodity risk.

***Our profitability is sensitive to general economic conditions and global supply chain conditions.***

Our business could be adversely affected by conditions in the U.S. and global economies, the United States and global financial markets and adverse geopolitical and macroeconomic developments, including rising inflation rates, the continuing adverse impact of the COVID-19 outbreak, the Ukrainian/Russian and Israeli/Palestinian conflicts and related sanctions, bank failures, and economic uncertainties related to these conditions. While the COVID-19 outbreak has abated, many of the consequences of the COVID-19 outbreak continue to cause disruption and increased costs for businesses. We believe there continue to be, among other things, supply chain disruptions that are causing delays in the delivery of equipment and inventory and staffing shortages.

Additionally, inflation rates, particularly in the United States, have increased to levels not seen in years, and increased inflation may result in increases in our operating costs (including our labor costs), reduced liquidity and limits on our ability to access credit or otherwise raise capital on acceptable terms, if at all. In response to rising inflation, the U.S. Federal Reserve has raised, and may again raise, interest rates, which, coupled with reduced government spending and volatility in financial markets, may have the effect of further increasing economic uncertainty and heightening these risks. Further, financial markets around the world experienced volatility following the invasion of Ukraine by Russia in February 2022 and the eruption of the Israeli/Palestinian conflict in October 2023, including as a result of economic sanctions and export controls against Russia and countermeasures taken by Russia.

The full economic and social impact of these sanctions and countermeasures, in addition to the ongoing military conflicts in Ukraine and Gaza, which could conceivably expand, remains uncertain; however, both the conflicts and related sanctions have resulted and could continue to result in disruptions to trade, commerce, pricing stability, credit availability, and/or supply chain continuity, in both Europe and globally, and has introduced significant uncertainty into global markets. While we do not currently operate in Russia, Ukraine or the Middle East, as the adverse effects of these conflicts continue to develop, our business and results of operations may be adversely affected. Any of the foregoing could harm our business. Any resulting financial impact cannot be reasonably estimated at this time but may materially affect our business and financial condition. The extent to which the foregoing impacts our results will depend on future developments, which are highly uncertain and cannot be predicted.

***Our business may be negatively affected by labor issues and higher labor costs.***

Our ability to maintain our workforce depends on our ability to attract and retain new and existing employees. As of the date of this proxy statement/prospectus, none of our employees are covered by collective bargaining agreements and we consider our labor relations to be acceptable. However, we could experience workforce dissatisfaction which could trigger bargaining issues, employment discrimination liability issues as well as wage and benefit consequences, especially during critical operation periods. We could also experience a work stoppage or other disputes which could disrupt our operations and could harm our operating results. In addition, legislation or changes in regulations could result in labor shortages and higher labor costs. There can be no assurance that we may not experience labor issues that negatively impact our operations or results of operations.

***Global economic conditions could negatively affect our prospects for growth and operating results.***

Our prospects for growth and operating results will be directly affected by the general global economic conditions of the industries in which our suppliers, partners and customer groups operate. We believe that the market price of battery metal is relatively volatile and reacts to general global economic conditions. Our business will be highly dependent on the economic and market conditions in each of the geographic areas in which we operate. These conditions affect our business by reducing the demand for recyclable batteries and decreasing the price of battery metals in times of economic downturn and increasing the price of used batteries in times of increasing demand of recyclable batteries. There can be no assurance that global economic conditions will not negatively impact our liquidity, growth prospects and results of operations.

***Our processes may infringe on the intellectual property rights of others, which could lead to costly disputes or disruptions.***

The applied science industry is characterized by frequent allegations of intellectual property infringement. Though we do not expect to be subject to any of these allegations, any allegation of infringement could be time consuming and expensive to defend or resolve, result in substantial diversion of management resources, cause suspension of operations or force us to enter into royalty, license, or other agreements rather than dispute the merits of such allegation. If patent holders or other holders of intellectual property initiate legal proceedings, we may be forced into protracted and costly litigation. We may not be successful in defending such litigation and may not be able to procure any required royalty or license agreements on acceptable terms or at all.

***Fluctuations in prices for recycled commodities that we sell to customers may adversely affect our financial condition, results of operations and cash flows.***

EMC is an aggregator and processor of used metals for recycling into new steel-based products for the recovery and sale of recovered metal and steel. EMC is pursuing the preprocessing of both end-of-life magnets, end of life batteries and ferrous metals, which enables it to ensure a domestic supply chain for copper, aluminum, steel, plastic as well as rare earth and battery elements through its current affiliation and refining partnership with ReElement Technologies Corp, another subsidiary of American Resources Corporation. EMC also operates within the United States' coal country where there is often an abundance of used metal reserves from former thermal coal mines that have since been shut down.

By leveraging its regional logistics and infrastructure, it can expand its presence in the high-growth market of used steel while also cleaning up old infrastructure left behind from the mining industry. Additionally, the Company's locations in Indiana are conveniently located close near top tier US auto manufacturing plants and close to large US based steel manufacturers to provide a steady source of recyclable materials. Our results of operations may be affected by changing prices or market requirements for recyclable materials. The resale and purchase prices of, and market demand for, recyclable materials can be volatile due to changes in economic conditions and numerous other factors beyond our control. These fluctuations may affect our financial condition, results of operations and cash flows.

***Adverse weather conditions may limit our operations and increase the costs of collection and disposal.***

EMC collection and operations could be adversely impacted by extended periods of inclement weather, or by increased severity of weather and climate extremes resulting in the future from climate change, any of which could increase the volume of waste collected under our existing contracts (without corresponding compensation), interfere with collection and operations, delay the development of capacity or reduce the volume of waste generated by our customers. In addition, adverse weather conditions may result in the temporary suspension of our operations, which can significantly affect our operating results in the affected regions during those periods*.*

***We may be unable to execute our financial strategy.***

We operate in a capital-intensive industry and the amount we spend on capital expenditures may exceed current expectations, which could require us to obtain additional funding for our operations or impair our ability to grow our business. Our financial strategy is dependent on our ability to generate sufficient cash flow to reinvest in our existing business, fund internal growth, acquire other businesses, pay dividends, reduce indebtedness and minimize borrowings, and take other actions to enhance shareholder value. We cannot assure you that we will be successful in executing our pricing programs, that we will generate sufficient cash flow to execute our financial strategy, that we will be able to pay cash dividends at our present rate, that we will be able to increase the amount of such dividends.

Our ability to remain competitive and to grow and expand our operations largely depends on our cash flow from operations and access to capital. If our operations are unable to offset the impact of inflation and business growth, it may be necessary to increase the amount we spend. Additionally, if we make acquisitions or further expand our operations, the amount we expend on capital, capping, closure, post-closure and environmental remediation expenditures will increase. Our cash needs also will increase if the expenditures for capping, closure, post-closure and remediation activities increase above our current estimates, which may occur over a long period due to changes in federal, state or local government requirements and other factors beyond our control. Increases in expenditures would negatively impact our cash flows.

***Risks Relating to Government Law and Environmental Regulations***

***U.S. government regulation and environmental, health and safety concerns may adversely affect our business.***

Our operations in the United States will be subject to the federal, state and local environmental, health and safety laws applicable to the reclamation of batteries including the Occupational Safety and Health Act ("OSHA") of 1970 and comparable state statutes. Our facilities will have to obtain environmental permits or approvals to expand, including those associated with air emissions, water discharges, and waste management and storage. We may face opposition from local residents or public interest groups to the installation and operation of our respective facilities. In addition to permitting requirements, our operations are subject to environmental health, safety and transportation laws and regulations that govern the management of and exposure to hazardous materials such as the acids involved in battery reclamation. These include hazard communication and other occupational safety requirements for employees, which may mandate industrial hygiene monitoring of employees for potential exposure.

We are also subject to inspection from time to time by various federal, state and local environmental, health and safety regulatory agencies and, as a result of these inspections, we and our licensees may be cited for certain items of non-compliance. Failure to comply with the requirements of federal, state and local environmental, health and safety laws could subject our business to significant penalties (civil or criminal) and other sanctions that could adversely affect our business. In addition, in the event we are unable to operate as safe and environmentally responsible, we may face opposition from local governments, residents or public interest groups to the installation and operation of our facilities.

***We are subject to costly environmental regulations and flow-control regulations that may affect our operating margins, restrict our operations and subject us to additional liability.***

Complying with laws and regulations governing the use, treatment, storage, transfer and disposal of solid and hazardous wastes and materials, air quality, water quality and the remediation of contamination associated with the release of hazardous substances is costly. Laws and regulations often require us to enhance or replace our equipment and to modify operations. We cannot assure you that we will be able to implement price increases sufficient to offset the costs of complying with these laws and regulations. In addition, environmental regulatory changes could accelerate or increase expenditures for capping, closure and post-closure, and environmental and remediation activities at solid waste facilities and obligate us to spend sums in addition to those presently accrued for such purposes.

At this point of planning for future operations, the company is unable to estimate the anticipated regulatory costs.

In addition to the costs of complying with environmental regulations, we may incur costs to defend against litigation brought by government agencies and private parties who may allege we are in violation of our permits and applicable environmental laws and regulations, or who assert claims alleging environmental damage, personal injury or property damage. As a result, we may be required to pay fines or implement corrective measures, or we may have our permits and licenses modified or revoked. A significant judgment against us, the loss of a significant permit or license, or the imposition of a significant fine could have a material adverse impact on our financial condition, results of operations and cash flows. We may establish accruals for our estimates of the costs associated with our environmental obligations. We could underestimate such accruals and remediation costs could exceed amounts accrued. Such shortfalls could result in significant unanticipated charges to income. Regulation of greenhouse gas emissions could impose costs on our operations, the magnitude of which we cannot yet estimate.

The company depends on third-party consultants to work with it across all of its projects to ensure correct permitting, regulatory compliance and keep the company apprised on legal and regulatory changes. The company may face non-compliance challenges if the third-party consultants do not inform the company of the proper compliance measures or if the company fails to maintain its engagement with third-party consultants. If the company is not in compliance with the current regulations, it could face litigation, sanctions and fees.

***Problems with the handling of lithium-ion battery cells that result in less usage of lithium-ion batteries or affect the company's operations could materially affect the company's revenues and business.***

On rare occasions, lithium-ion battery cells can rapidly release the energy they contain by venting smoke and flames in a manner that can ignite nearby materials as well as other lithium-ion battery cells. Negative public perceptions regarding the suitability of lithium-ion battery cells for automotive applications, the social and environmental impacts of cobalt mining or any future incident involving lithium-ion battery cells, such as a vehicle or other fire, even if such incident does not involve the company directly, could have a negative impact on the market for lithium-ion batteries, reducing the number of batteries in the market and the company's revenue.

In addition, recycling of lithium-ion batteries requires it to store a significant number of lithium-ion battery cells at its facilities. Any mishandling of lithium-ion battery cells could cause disruption to the operation of the company's future facilities and may require additional environmental regulatory oversight.

***Currently pending or future litigation or governmental proceedings could result in material adverse consequences, including judgments or settlements.***

From time to time, we may become, involved in lawsuits, regulatory inquiries, and governmental and other legal proceedings arising out of the ordinary course of our business. Many of these matters raise difficult and complicated factual and legal issues and are subject to uncertainties and complexities. The timing of the final resolutions to lawsuits, regulatory inquiries, and governmental and other legal proceedings is uncertain. Additionally, the possible outcomes or resolutions to these matters could include adverse judgments or settlements, either of which could require substantial payments, adversely affecting our financial condition, results of operations and cash flows.

***We may be subject to foreign government regulation and environmental, health and safety concerns that may adversely affect our business.***

If our business expands outside of the United States, our operations will be subject to the environmental, health and safety laws of the countries where we do business, including permitting and compliance requirements that address the similar risks as do the laws in the United States, as well as international legal requirements such as those applicable to the transportation of hazardous materials. Depending on the country or region, these laws could be as stringent as those in the U.S., or they could be less stringent or not as strictly enforced. In some countries in which we are interested in expanding our business, such as Mexico, the relevant environmental regulatory and enforcement frameworks are in flux and subject to change. Compliance with these requirements will cause our business to incur costs, and failure to comply with these requirements could adversely affect our business. In the event we are unable to present and operate our Aqua Refining process and operations as safe and environmentally responsible, we may face opposition from local governments, residents or public interest groups to the installation and operation of our facilities.

***We may be unable to manage our growth effectively.***

Our growth strategy places significant demands on our financial, operational and management resources. To continue our growth, we may need to add administrative and other personnel and will need to make additional investments in operations and systems. We cannot assure you that we will be able to find and train qualified personnel, or do so on a timely basis, or expand our operations and systems to the extent, and in the time, required.

***We may be unable to execute our acquisition growth strategy.***

Our ability to execute our growth strategy depends in part on our ability to identify and acquire desirable acquisition candidates as well as our ability to successfully consolidate acquired operations into our business. The consolidation of our operations with those of acquired companies may present significant challenges to our management. In addition, competition among our competitors for acquisition candidates may prevent us from acquiring certain acquisition candidates. As such, we cannot assure you that:

· desirable acquisition candidates exist or will be identified;

· we will be able to acquire any of the candidates identified;

· we will effectively consolidate companies we acquire; or

· any acquisitions will be profitable or accretive to our earnings.

If any of the aforementioned factors force us to alter our growth strategy, our growth prospects could be adversely affected.

***Businesses we acquire may have undisclosed liabilities.***

In pursuing any future acquisition strategy, our due diligence investigations of the acquisition candidates may fail to discover certain undisclosed liabilities of the acquisition candidates. If we acquire a company having undisclosed liabilities such as environmental, remediation or contractual, as a successor owner we may be responsible for such undisclosed liabilities. We expect to try to minimize our exposure to such liabilities by conducting due diligence, by obtaining indemnification from each of the sellers of the acquired companies, by deferring payment of a portion of the purchase price as security for the indemnification and by acquiring only specified assets. However, we cannot assure you that we will be able to obtain indemnification or that any indemnification obtained will be enforceable, collectible or sufficient in amount, scope or duration to fully offset any undisclosed liabilities arising from our acquisitions.

***The loss of key personnel could have a material adverse effect on our financial condition, results of operations, cash flows and growth prospects.***

Our future success depends on the continued contributions of several key employees and officers. The loss of the services of key employees and officers, whether such loss is through resignation or other causes, or the inability to attract additional qualified personnel, could have a material adverse effect on our financial condition, results of operations, cash flows and growth prospects.

***Certain of our Directors and Officers may have actual and potential conflicts of interest because of their equity ownership in American Resources, and certain of our Directors and/or Officers may have actual or potential conflicts of interest because they also serve as officers and/or Board of Directors of American Resources.***

Certain of our directors and executive officers own shares of American Resources common stock, and the individual holdings may be significant for some of these individuals compared to their total assets, including our Chief Executive Officer and Chairman nominee Mark C. Jensen and our Chief Financial Officer and director nominee Kirk P. Taylor. This ownership and/or service to both companies may create, or may create the appearance of, conflicts of interest when these directors and officers are faced with decisions that could have different implications for American Resources and us.

The perceived and actual conflicts of interest involve commercial decisions made amongst American Resources, ReElement Technologies and Electrified Materials. As officers of both American Resources and Electrified Materials and shareholders of each entity including ReElement Technologies, both Mark Jensen and Kirk Taylor would have conflicts of interest.

These material conflicts of interest to investors and the company may include the following bulleted points which also may have potential adverse material effects to both investors and the company as found in each sub-bullet:

o delaying timing of deliveries to benefit one party over the other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · The effects may include introducing commodity pricing risk, cost of unnecessary material storage and costs associated with under optimized workforce.

o accelerating timing of deliveries to benefit one party over the other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · The effects may include introducing commodity pricing risk, cost of expedited shipments and costs associated with under optimized workforce.

o denying delivery due to qualities to benefit one party over the other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · The effects may include introducing unnecessary material processing costs and costs associated with storage and re-shipment.

o accepting delivery due to qualities to benefit one party over the other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · The effects may include changing market quality parameters and preferential treatment versus other customers.

o entering into collaboration agreements with other market participants benefiting one party over the other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · The effects may include changing market quality parameters and preferential treatment versus other customers.

o not entering into collaboration agreements with other market participants benefiting one party over the other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · The effects may include changing market quality parameters and preferential treatment versus other customers.

o 'picking and choosing' material in a way that benefits one party over the other

o Prepaying or delayed payment benefiting one party over the other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · The effects may include constraints on operating cash flows.

o Quality additions or deductions benefiting one party over the other &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · The effects may include changing market quality parameters and preferential treatment versus other customers.

To address perceived and actual conflicts of interest the company will implement a conflict of policy upon spin out. Therefore, when conflicts arise in practice, the independent board members will be responsible for resolving the conflict, without involvement of the conflicted party(ies).

***The Company has identified material weaknesses in its internal control over financial reporting. If its remediation of such material weaknesses is not effective, or if it fails to develop and maintain a proper and effective internal control over financial reporting, its ability to produce timely and accurate financial statements or comply with applicable laws and regulations could be impaired.***

Due to the Company's insufficient number of staff performing accounting and reporting functions, there is a lack of segregation of duties within the financial reporting function resulting in limited level of multiple reviews among those tasked with preparing the financial statements, resulting in the need for adjustments.

A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Notwithstanding the determination that our internal control over financial reporting was not effective, as of December 31, 2024

The management, including its Principal Executive Officer and Principal Financial Officer, does not expect that its disclosure controls and procedures, or its internal controls over financial reporting will prevent all error and all fraud. A control system no matter how well conceived and operated, can provide only reasonable not absolute assurance that the objectives of the control system are met. Further, the design of control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any within the Company have been detected.

While The Company is designing and implementing measures to remediate its existing material weaknesses, it cannot predict the success of such measures at this time. The Company can give no assurance that such measures will remediate any of the deficiencies in its internal control over financial reporting or that additional material weaknesses or significant deficiencies in its internal control over financial reporting will not be identified in the future. The company's current controls and any new controls that it develops may become inadequate because of changes in conditions in its business. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement could harm the Company's operating results or cause the Combined Company to fail to meet its reporting obligations.

**Risks Relating to the Spin-Off**

***If the Spin-Off does not qualify for its intended U.S. tax treatment, American Resources and its stockholders could incur significant costs.***

Completion of the Spin-Off is conditioned on American Resources' receipt of separate written opinion from GBQ Partners LLC to the effect that the Share Distribution will qualify for non-recognition of gain and loss under Section 355 and related provisions of the Code. American Resources can waive receipt of either or both tax opinions as a condition to the completion of the Spin-Off.

The opinions do not address any U.S. state or local or foreign tax consequences of the Spin-Off. The opinions assume that the Spin-Off will be completed according to the terms of the Mutual Services and Transition Agreement and rely on the facts as stated in the Mutual Services and Transition Agreement, any other ancillary agreements, this Information Statement and a number of other documents. In addition, the opinions are based on certain representations as to factual matters from, and certain covenants by, American Resources and us. The opinions cannot be relied on if any of the assumptions, representations or covenants are incorrect, incomplete or inaccurate or are violated in any material respect.

The opinions are not binding on the Internal Revenue Service (the "IRS") or the courts, and there can be no assurance that the IRS or a court will not take a contrary position. If the conclusions expressed in the opinions are challenged by the IRS, and if the IRS prevails in such challenge, the tax consequences of the Spin-Off could be materially less favorable. American Resources has not requested, and does not intend to request, a ruling from the IRS regarding the U.S. federal income tax consequences of the Spin-Off.

If the Spin-Off were determined not to qualify for non-recognition of gain or loss under Section 355 and related provisions of the Code, then a U.S. Holder who receives our common stock in the Share Distribution generally would be treated as receiving a distribution in an amount equal to the fair market value of our common stock received. The distribution would be treated as: (1) a taxable dividend to the extent of the holder's pro rata share of American Resources' current or accumulated earnings and profits; (2) a reduction in the holder's basis (but not below zero) in American Resources common stock to the extent the amount received exceeds the holder's share of American Resources' earnings and profits; and (3) taxable gain from the exchange of American Resources common stock to the extent the amount received exceeds the sum of the holder's share of American Resources' earnings and profits and its basis in its American Resources common stock. See below and "The Spin-Off-Material U.S. Federal Income Tax Consequences of the Spin-Off."

***Until the separation occurs, American Resources has sole discretion to change the terms of the separation in ways that may be unfavorable to us.***

Until the Spin-Off occurs, the Company will be a majority owned subsidiary of American Resources. accordingly, American Resources will effectively have the absolute discretion to determine and change the terms of the separation, including the establishment of the record date for the Share Distribution and the Share Distribution Date. These changes could be unfavorable to us. In addition, the separation and Share Distribution and related transactions are subject to the satisfaction or waiver by American Resources in its sole discretion of a number of conditions. We cannot assure you that any or all of these conditions will be met. American Resources may also decide at any time not to proceed with the separation and Share Distribution.

***We may be unable to achieve some or all of the benefits that we expect to achieve from the Spin-Off.***

We believe that, as an independent, publicly traded company, we will be able to, among other things, design and implement corporate strategies and policies that are better targeted to our business's areas of strength and differentiation, better focus our financial and operational resources on those specific strategies, create effective incentives for our management and employees that are more closely tied to our business performance, provide investors more flexibility and enable us to achieve alignment with a more natural stockholder base and implement and maintain a capital structure designed to meet our specific needs. We may be unable to achieve some or all of the benefits that we expect to achieve as an independent company in the time we expect, if at all, for a variety of reasons, including: (i) the completion of the Spin-Off will require significant amounts of our management's time and effort, which may divert management's attention from operating and growing our business; (ii) following the Spin-Off, we may be more susceptible to market fluctuations and other adverse events than if it were still a part of American Resources; and (iii) following the Spin-Off, our businesses will be less diversified than American Resources' businesses prior to the separation. If we fail to achieve some or all of the benefits that we expect to achieve as an independent company, or do not achieve them in the time we expect, our business, financial condition, results of operations and cash flows could be adversely affected.

***We may be unable to make, on a timely or cost-effective basis, the changes necessary to operate as an independent, publicly traded company, and we may experience increased costs after the Spin-Off.***

We have historically operated as part of American Resources' corporate organization, and American Resources has provided us with various corporate functions. Following the Spin-Off, American Resources will have no obligation to provide us with assistance other than the transition and other services described under "Certain Relationships and Related Party Transactions-Agreements with American Resources." These services do not include every service that we have received from American Resources in the past. The agreements relating to such shared services and to the Spin-Off more generally will be negotiated prior to the Spin-Off, at a time when our business will still be operated by American Resources. In entering into these agreements, the Company will not have an independent board of directors or a management team independent of American Resources representing its interests while the agreements are being negotiated. It is possible that we might have been able to achieve more favorable terms if the circumstances differed. We will rely on American Resources to satisfy its performance and payment obligations under any shared services agreements and other agreements related to the Spin-Off, and if American Resources does not satisfy such obligations, we could incur operational difficulties or losses.

Following the Spin-Off and the cessation of any shared services agreements, we will need to provide internally or obtain from unaffiliated third parties the services we will no longer receive from American Resources. These services may include legal, accounting, information technology, software development, human resources, investor relations and other infrastructure support, the effective and appropriate performance of which are critical to our operations.

We may be unable to replace these services in a timely manner or on terms and conditions as favorable as those we receive from American Resources. Because our business has historically operated as part of the wider American Resources organization, we may be unable to successfully establish the infrastructure or implement the changes necessary to operate independently or may incur additional costs that could adversely affect our business. If we fail to obtain the quality of services necessary to operate effectively or incur greater costs in obtaining these services, our business, financial condition, results of operations and cash flows may be adversely affected.

***We may incur new indebtedness post the Share Distribution, and the degree to which we will be leveraged following completion of the Share Distribution could adversely affect our business, financial condition and results of operations.***

Post the Spin-Off, we may incur substantial indebtedness to fund the growth of the business. We also may enter into a revolving credit facility to be available for our working capital and other cash needs.

We have historically relied upon American Resources to fund our working capital requirements and other cash requirements. After the Share Distribution, we will not be able to rely on the earnings, assets or cash flow of American Resources, and American Resources will not provide funds to finance our working capital or other cash requirements. As a result, after the Share Distribution, we will be responsible for servicing our own debt and obtaining and maintaining sufficient working capital and other funds to satisfy our cash requirements. After the Spin-Off, our access to and cost of debt financing will be different than it would have been as a part of American Resources. Differences in access to and cost of debt financing may result in differences in the interest rate charged to us on financings, as well as the amount of indebtedness, types of financing structures and debt markets that may be available to us.

Our ability to make payments on and to refinance our future indebtedness will depend on our ability to generate cash in the future from operations, financings or asset sales. Our ability to generate cash is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control, as well as the risk factors set forth herein.

***The commercial and credit environment may adversely affect our access to capital.***

Our ability to issue debt or enter into other financing arrangements on acceptable terms could be adversely affected if there is a material decline in the demand for our products or in the solvency of our customers or suppliers or if there are other significantly unfavorable changes in economic conditions. Volatility in the world financial markets could increase borrowing costs or affect our ability to access the capital markets.

***Our customers, prospective customers, suppliers or other companies with whom we conduct business may need assurances that our financial stability on a stand-alone basis is sufficient to satisfy their requirements for doing or continuing to do business with them.***

Some of our customers, prospective customers, suppliers or other companies with whom we conduct business may need assurances that the Company's financial stability on a stand-alone basis is sufficient to satisfy their requirements for doing or continuing to do business with them. Any failure of parties to be satisfied with our financial stability could have an adverse effect on our business, financial condition, results of operations and cash flows.

***We may have potential business conflicts of interest with American Resources with respect to our past and ongoing relationships. Furthermore, our Executive Chairman of the Board of Directors, Chief Executive Officer, and Chief Financial Officer also currently serve as executive officers and or board members of other companies and such other positions may create conflicts of interest for such Chairman and Executive in the future***

Conflicts of interest may arise with American Resources in a number of areas relating to our past and ongoing relationships, including, but not limited to, and use or co-use of licensed technology, the existence of leases and agreements between the two companies, employee recruiting and retention, and business combinations involving our Company. Our Executive Chairman of the Board of Directors, Chief Executive Officer, and Chief Financial Officer currently serve as officers or directors of other companies that require time and effort from the EMC executive, which may mean the executive may not devote their full time to the business of EMC. Our employment agreements with Company executives do not require that executive to devote all their time to the business of the Company.

***We may not be able to resolve any potential conflicts, and, even if we do so, the resolution may be less favorable to us than if we were dealing with an unaffiliated party***

Following the Spin-Off, certain of our directors and employees may have actual or potential conflicts of interest because of their financial interests in American Resources and other companies for which our executive officers and directors may be affiliates of. Because of their current or former positions with American Resources, certain of our expected executive officers and directors, including the chairman of the Board, own equity interests in American Resources. Continuing ownership of American Resources shares and equity awards could create, or appear to create, potential conflicts of interest if the Company and American Resources face decisions that could have implications for both the Company and American Resources.

**Risks Relating to Our Common Stock and the Securities Market**

***No market for our common stock currently exists and an active trading market may not develop or be sustained after the Spin-Off. Following the Spin-Off our stock price may fluctuate significantly.***

There is currently no public market for our common stock. Following the Spin-Off, we intend to list our common stock on NASDAQ Capital Market We anticipate that before the Share Distribution Date, trading of shares of our common stock will begin on a "when-issued" basis and this trading will continue up to and including the Share Distribution Date. However, an active trading market for our common stock may not develop as a result of the Spin-Off or may not be sustained in the future. The lack of an active market may make it more difficult for stockholders to sell our shares and could lead to our share price being depressed or volatile.

We cannot predict the prices at which our common stock may trade after the Spin-Off or whether the Combined market value of a share of our common stock and a share of American Resources' common stock will be less than, equal to or greater than the market value of a share of American Resources common stock prior to the Spin-Off. The market price of our common stock may fluctuate widely, depending on many factors, some of which may be beyond our control, including:

· actual or anticipated fluctuations in our results of operations due to factors related to our business;

· success or failure of our business strategies;

· competition and industry capacity;

· changes in interest rates and other factors that affect earnings and cash flow;

· our ability to retain and recruit qualified personnel;

· our quarterly or annual earnings, or those of other companies in our industry;

· announcements by us or our competitors of significant acquisitions or dispositions;

· changes in accounting standards, policies, guidance, interpretations or principles;

· the failure of securities analysts to cover, or positively cover, our common stock after the Spin-Off;

· changes in earnings estimates by securities analysts or our ability to meet those estimates;

· the operating and stock price performance of other comparable companies;

· investor perception of our Company and our industry;

· overall market fluctuations unrelated to our operating performance;

· results from any material litigation or government investigation;

· changes in laws and regulations (including tax laws and regulations) affecting our business;

· changes in capital gains taxes and taxes on dividends affecting stockholders; and

· general economic conditions and other external factors.

Furthermore, our business profile and market capitalization may not fit the investment objectives of some American Resources stockholders and, as a result, these American Resources stockholders may sell their shares of our common stock after the Share Distribution. See "-Substantial sales of our common stock may occur in connection with the Spin-Off, which could cause our stock price to decline." Low trading volume for our stock, which may occur if an active trading market does not develop, among other reasons, would amplify the effect of the above factors on our stock price volatility.

Should the market price of our shares drop significantly, stockholders may institute securities class action lawsuits against the Company. A lawsuit against us could cause us to incur substantial costs and could divert the time and attention of our management and other resources.

***Substantial sales of our common stock may occur in connection with the Spin-Off, which could cause our stock price to decline.***

American Resources stockholders receiving shares of our common stock in the Share Distribution generally may sell those shares immediately in the public market. It is likely that some American Resources stockholders, including some of its larger stockholders, will sell their shares of our common stock received in the Share Distribution if, for reasons such as our business profile or market capitalization as an independent company, we do not fit their investment objectives, or, in the case of index funds, we are not a participant in the index in which they are investing. The sales of significant amounts of our common stock or the perception in the market that such sales might occur may decrease the market price of our common stock.

***Your percentage ownership in the Company may be diluted in the future.***

Your percentage ownership in the Company may be diluted in the future because of equity issuances for acquisitions, capital market transactions or otherwise, including equity awards that we will be granting to our directors, officers and other employees. We expect to have one or more equity compensation plans that will provide for the grant of common stock-based equity awards to our directors, officers and other employees. Such awards will have a dilutive effect on our earnings per share, which could adversely affect the market price of our common stock. In particular, the 2024 Omnibus Incentive Plan of SpinCo and its Affiliates (the "Equity Plan") for the benefit of certain of our current and future employees and other service providers, as well as an equity plan for our non-employee directors.

From time-to-time, SpinCo may opportunistically evaluate and pursue acquisition opportunities, including acquisitions for which the consideration thereof may consist partially or entirely of newly-issued shares of SpinCo common stock and, therefore, such transactions, if consummated, would dilute the voting power and/or reduce the value of our common stock.

***The rights associated with the Company's common stock may differ from the rights associated with American Resources common stock.***

Upon completion of the Share Distribution, the rights of American Resources stockholders who become Company stockholders will be governed by the Articles of Incorporation of the Company and by Indiana law. The rights associated with American Resources shares are different from the rights associated with Company shares. Material differences between the rights of stockholders of American Resources and the rights of stockholders of the Company include differences with respect to, among other things, the removal of directors, the convening of annual meetings of stockholders and special stockholder meetings, stockholder approval of certain transactions, anti-takeover measures and provisions relating to the ability to amend the articles of incorporation. See "Description of Our Capital Stock-Certain Provisions of Indiana Law, Our Articles of Incorporation and By-Laws" for more information.

***If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired and investors' views of us could be harmed.***

The Sarbanes-Oxley Act requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on its effectiveness, as required by Section 404 of the Sarbanes-Oxley Act, although, as an emerging growth company, we are exempt from the requirement under Section 404(b) that our independent registered public accounting firm attests to the effectiveness of our internal control over financial reporting.

If we are not able to comply with the requirements of Section 404 (specifically Section 404(a)), or if we identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, the market price of shares of common stock could decline and we could be subject to sanctions or investigations by the U.S. Securities and Exchange Commission (the "SEC") or other regulatory authorities, which would require additional financial and management resources.

Our ability to successfully implement our business plan and comply with Section 404 (as applicable to us as an emerging growth company) requires us to be able to prepare timely and accurate financial statements. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems, procedures or controls, may cause our operations to suffer, and we may be unable to conclude that our internal control over financial reporting is effective. Moreover, we cannot be certain that these measures would ensure that we implement and maintain adequate controls over our financial processes and reporting in the future. Even if we were to conclude, that our internal control over financial reporting provided reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, because of its inherent limitations, internal control over financial reporting might not prevent or detect fraud or misstatements. This, in turn, could have an adverse impact on trading prices for our shares of common stock, and could adversely affect our ability to access the capital markets. See "-Risks Relating to the Spin-Off-As we build our information technology infrastructure and transition our data to our own systems, we could incur substantial additional costs and experience temporary business interruptions, and our accounting and other management systems and resources may not be adequately prepared to meet the financial reporting and other requirements to which we will be subject following the Spin-Off."

***For as long as we are an emerging growth company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards and disclosure about our executive compensation, that apply to other public companies.***

In April 2012, President Obama signed into law the JOBS Act. We are classified as an "emerging growth company" under the JOBS Act. For as long as we are an emerging growth company, which may be up to five full fiscal years subsequent to our first sale of an equity security pursuant to registration in 2014, unlike other public companies, we will not be required to, among other things: (i) provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; (ii) comply with any new requirements adopted by the PCAOB requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer; (iii) provide certain disclosure regarding executive compensation required of larger public companies; or (iv) hold nonbinding advisory votes on executive compensation. We will remain an emerging growth company for up to five years subsequent to our first sale of an equity security pursuant to registration in 2014, although we will lose that status sooner if we have more than $1.235 billion of revenues in a fiscal year, have more than $700.0 million in market value of our common stock held by non-affiliates, or issue more than $1.0 billion of non-convertible debt over a three-year period.

To the extent that we rely on any of the exemptions available to emerging growth companies, you will receive less information about our executive compensation and internal control over financial reporting than issuers that are not emerging growth companies. If some investors find our common stock to be less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

Once we no longer are able to rely upon the exemptions provided for emerging growth companies, our required disclosures may still be reduced due to the fact that we may be a smaller reporting company.

**CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS**

This Information Statement contains "forward-looking statements" that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and our business and financial results. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "projects," "forecasts," "intends," "plans," "continues," "believes," "may," "will," "goals" and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our actual results may vary materially from those expressed or implied in our forward-looking statements. accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Although we believe that the forward-looking statements contained in this Information Statement are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to:

· lack of operating history as an independent, publicly traded company and unreliability of historical financial information as an indicator of our future results.

· the level of competition from other companies.

· inflationary pressures and availability and price of mining and other industrial supplies.

· our ability to generate sufficient cash or obtain financing to fund our business operations.

· changes in prevailing global and regional economic conditions.

· natural disasters or inclement or hazardous weather conditions, including, but not limited to cold weather, flooding, tornadoes and the physical impacts of climate change.

· ability to operate as an independent publicly traded company without certain benefits available to us as a part of American Resources.

· attracting and retaining key personnel and other employee workforce factors, such as labor relations.

· technical difficulties or failures.

· work stoppages, other disruptions, or the need to relocate any of our facilities.

· economic, political, regulatory, foreign exchange and other risks of international operations.

· changes in legislation or government regulations or policies.

· our production capabilities and costs.

· difficulty collecting receivables.

· the failure to protect our intellectual property or allegations that we have infringed the intellectual property of others.

· the failure to increase productivity through sustainable operational improvements.

· inability to grow successfully through future acquisitions.

· inability to recruit and retain qualified personnel.

· the operational constraints and financial distress of third parties.

· labor disputes.

· our ability to borrow funds and access capital markets.

· potential material environmental liabilities.

· potential material litigation matters.

· unforeseen U.S. federal income tax and foreign tax liabilities.

· U.S. federal income tax reform.

· the potential suspension in the future of our dividend program.

· certain factors discussed elsewhere in this Information Statement.

These and other factors are more fully discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and elsewhere in this Information Statement. These risks could cause actual results to differ materially from those implied by forward-looking statements in this Information Statement. Even if our results of operations, financial condition and liquidity and the development of the industry in which we operate are consistent with the forward-looking statements contained in this Information Statement, those results or developments may not be indicative of results or developments in subsequent periods.

Any forward-looking statements made by us in this Information Statement speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.

**THE SPIN-OFF**

**Background**

On December 11, 2024, American Resources announced plans for the complete legal and structural separation of the Business from American Resources. To affect the separation, American Resources is undertaking the Reorganization Transactions described under "Certain Relationships and Related Party Transactions-Agreements with American Resources-Mutual Services and Transition Agreement."

Although a legal entity was formed in 2020, the historical business activities of the Company have been transacted in part within the American Metals / Electrified Materials Corporation legal entities as well as a number of other parent company subsidiaries, primarily the parent company's mining business. The historical business activities of the Company as well as the business activities of the parent company's other subsidiaries have been presented in the accompanying historical carved-out financial statements of Electrified Materials Corporation to reflect the historical operations of the parent company's collective subsidiaries that will be included in SpinCo on a post transaction basis. In addition to the historical business activities the carved-out financial statements include allocations of administrative expenses from the parent company that reflect those administrative costs expected to be incurred by SpinCo. The accompanying historical carved-out balance sheets of the Company reflect receivables from parent company subsidiaries for revenues of those business activities earned by those other subsidiaries that will be contributed to SpinCo and cash settled post transaction. Accrued expenses included in the carved-out balance sheets reflect the payable by the Company to the parent company for allocated expenses that SpinCo will assume in the transaction and will also cash settle post transaction.

Following the Reorganization Transactions, American Resources will distribute approximately 90% of its equity interest in us, consisting of all of the outstanding shares of our common stock, to holders of American Resources' common stock on a pro rata basis. Following the Spin-Off, it is anticipated that American Resources will not retain an ownership interest greater than 10% in our Company, and we will operate independently from American Resources. No approval of American Resources' stockholders is required in connection with the Spin-Off, and American Resources' stockholders will not have any appraisal rights in connection with the Spin-Off.

Completion of the Spin-Off is subject to the satisfaction, or the American Resources Board's waiver, to the extent permitted by law, of a number of conditions. In addition, American Resources may at any time until the Share Distribution decide to abandon the Share Distribution or modify or change the terms of the Share Distribution. For a more detailed discussion, see "The Spin-Off-Conditions to the Spin-Off."

Aspects of the Spin-Off may increase the risks associated with ownership of shares of SpinCo. In connection with the Spin-Off, we may incur substantial indebtedness in the future. We may also enter into a revolving credit facility to be available for our working capital and other cash needs. Furthermore, as an independent entity we may lose some of the benefits of purchasing power, borrowing leverage and available capital for investments associated with being part of a larger entity. See "Risk Factors" in this Information Statement.

**Reasons for the Spin-Off**

In August 2022, the American Resources Board authorized a review of American Resources' business portfolio and capital allocation options, with the goal of enhancing stockholder value. As part of its review process, American Resources evaluated a range of potential structural alternatives in addition to the Spin-Off, including opportunities for dispositions, acquisitions, business combinations and separations. American Resources considered a number of factors, including the strategic clarity and flexibility for American Resources and SpinCo after the Spin-Off, the ability of SpinCo to compete and operate efficiently and effectively (including SpinCo's ability to retain and attract management talent) after the Spin-Off, the financial profile of SpinCo and the potential reaction of investors. As a result of this review, American Resources identified differences in operations, strategic focus and growth drivers of American Resources' business and the Business, including that the Business would not fully utilize synergies across the American Resources portfolio. In addition, a number of the characteristics of the SpinCo businesses differ significantly from those of the remaining American Resources operations. In reaching the decision to separate the Business, the American Resources Board concluded that the separation of the Business from the remainder of American Resources as a stand-alone, public company is the most attractive alternative for enhancing stockholder value.

As a result of this evaluation, American Resources determined that proceeding with the Spin-Off would be in the best interests of American Resources and its stockholders. American Resources considered the following potential benefits of this approach:

· **Enhanced Strategic and Operational Focus**. Following the Spin-Off, American Resources and SpinCo will each have a more focused business and be better able to dedicate financial, management and other resources to leverage their respective areas of strength and differentiation. Each company will pursue appropriate growth opportunities and execute strategic plans best suited to address the distinct market trends and opportunities for its business. SpinCo plans to focus on leadership in attractive products invest selectively in growth areas, ensure continued operational discipline and capture transformative productivity. Mark C. Jensen the Chief Executive Officer ("CEO") and Chairman for American Resources and will serve as Executive Chairman of the Board of Directors for the Company following the separation. Mr. Jensen will allocate his time and responsibilities using best business judgement and in dialogue with the separate board of directors for each company, in addition to the other companies he is involved with. Although Mr. Jensen will have roles at both companies following the spin-off, the Company will provide equity grants to its directors and will seek to provide future incentives to its management, including equity compensation, to further align their interest with the Company. The boards of directors of American Resources and the Company will owe fiduciary duties to their respective stockholder bases, with matters governed by American Resources board of directors will be specific to American Resources, and matters governed by the company's board of directors will be specific to the Company

· **Simplified Organizational Structure and Resources.** The Spin-Off will allow the management of each of American Resources and SpinCo to devote their time and attention to the development and implementation of corporate strategies and policies that are based primarily on the specific business characteristics of their respective companies. Each company will be able to adapt faster to clients' changing needs, address specific market dynamics, target innovation and investments in select growth areas and accelerate decision-making processes.

· **Distinct and Clear Financial Profiles and Compelling Investment Cases.** Investment in one company or the other may appeal to investors with different goals, interests and concerns. The Spin-Off will allow investors to make independent investment decisions with respect to American Resources and SpinCo and may result in greater alignment between the interests of SpinCo's stockholder base and the characteristics of SpinCo's business, capital structure and financial results.

· **Performance Incentives.** We believe that the Spin-Off will enable SpinCo to create incentives for its management and employees that are more closely tied to its business performance and stockholder expectations. SpinCo's equity-based compensation arrangements will more closely align the interests of SpinCo's management and employees with the interests of its stockholders and should increase SpinCo's ability to attract and retain personnel.

· **Capital Structure.** The Spin-Off will enable each of American Resources and SpinCo to leverage its distinct growth profile and cash flow characteristics to optimize its capital structure and capital allocation strategy.

In determining whether to effect the Spin-Off, American Resources considered the costs and risks associated with the transaction, including the costs associated with preparing SpinCo to become an independent, publicly traded company, the risk of volatility in our stock price immediately following the Spin-Off due to sales by American Resources' stockholders whose investment objectives may not be met by our common stock, the time it may take for us to attract our optimal stockholder base, the possibility of disruptions in our business as a result of the Spin-Off, the risk that the Combined trading prices of our common stock and American Resources' common stock after the Spin-Off may drop below the trading price of American Resources' common stock before the Spin-Off and the loss of synergies and scale from operating as one company. Notwithstanding these costs and risks, taking into account the factors discussed above, American Resources determined that the Spin-Off provided the best opportunity to achieve the above benefits and enhance stockholder value. American Resources will pay substantially all of the third-party fees, costs and expenses associated with the Spin-Off incurred before and in connection with the consummation of the Spin-Off, and each of American Resources and the Company generally will bear its own third-party fees, costs and expenses associated with the Spin-Off incurred after the consummation of the Spin-Off.

**When and How You Will Receive SpinCo Shares**

American Resources will distribute to its stockholders, as a pro rata dividend, [•] shares of its Class A common Stock for every one share of EMC common stock outstanding as of [•], 2025, the Record Date of the Share Distribution.

Prior to the Share Distribution, American Resources will deliver all of the issued and outstanding shares of our common stock to the distribution agent. VStock Transfer LLC will serve both as distribution agent in connection with the Share Distribution transfer agent and registrar for our common stock.

If you own American Resources common stock as of the close of business on [•], 2024, the shares of our common stock that you are entitled to receive in the Share Distribution will be issued to your account as follows:

· **Registered stockholders.** If you own your shares of American Resources common stock directly through American Resources' transfer agent, you are a registered stockholder. In this case, the distribution agent will credit the shares, rounded to the nearest whole share, of our common stock you receive in the Share Distribution by way of direct registration in book-entry form to a new account with our transfer agent. Registration in book-entry form refers to a method of recording share ownership where no physical stock certificates are issued to stockholders, as is the case in the Share Distribution. You will be able to access information regarding your book-entry account for SpinCo shares through VStock Transfer LLC at info@vstocktransfer.com or by calling (212) 828-8436.

Commencing on or shortly after the Share Distribution Date, the distribution agent will mail to you an account statement that indicates the number of whole shares of our common stock that have been registered in book-entry form in your name. We expect it will take the distribution agent up to two weeks after the Share Distribution Date to complete the distribution of the shares of our common stock and mail statements of holding to all registered stockholders.

· **"Street name" or beneficial stockholders**. If you own your shares of American Resources common stock beneficially through a bank, broker or other nominee, the bank, broker or other nominee holds the shares in "street name" and records your ownership on its books. In this case, your bank, broker or other nominee will credit your account with the whole shares of our common stock that you receive in the Share Distribution on or shortly after the Share Distribution Date. We encourage you to contact your bank, broker or other nominee if you have any questions concerning the mechanics of having shares held in "street name."

If you sell any of your shares of American Resources common stock on or before the Share Distribution Date, the buyer of those shares may in some circumstances be entitled to receive the shares of our common stock to be distributed in respect of the American Resources shares you sold. See "The Spin-Off- Trading Prior to the Share Distribution Date" for more information.

We are not asking American Resources stockholders to take any action in connection with the Spin-Off. We are not asking you for a proxy and request that you not send us a proxy. We are also not asking you to make any payment or surrender or exchange any of your shares of American Resources common stock for shares of our common stock. The number of outstanding shares of American Resources common stock will not change as a result of the Spin-Off.

**Treatment of Fractional Shares**

The distribution agent will not distribute any fractional shares of our common stock in connection with the Spin-Off. Instead, the distribution agent will round any fractional shares to the nearest whole number of shares at the time of the distribution of shares of the Spin-Off. See "How will our common stock trade?" for additional information regarding "when-issued" trading.

**Material U.S. Federal Income Tax Consequences of the Spin-Off**

***Consequences to Holders of American Resources common stock***

The following is a summary of the material U.S. federal income tax consequences to holders of American Resources common stock in connection with the Distribution. This summary is based on the Code, the Treasury Regulations promulgated under the Code and judicial and administrative interpretations of those laws, in each case as in effect and available as of the date of this Information Statement and all of which are subject to change at any time, possibly with retroactive effect. Any such change could affect the tax consequences described below.

This summary does not discuss all tax considerations that may be relevant to stockholders in light of their particular circumstances, nor does it address the consequences to stockholders subject to special treatment under the U.S. federal income tax laws, such as:

· dealers or traders in securities or currencies.

· tax-exempt entities.

· banks, financial institutions or insurance companies.

· real estate investment trusts, regulated investment companies or grantor trusts.

· persons who acquired American Resources common stock pursuant to the exercise of employee stock options or otherwise as compensation.

· stockholders who own, or are deemed to own, 10% or more, by voting power or value, of American Resources equity.

· stockholders owning American Resources common stock as part of a position in a straddle or as part of a hedging, conversion or other risk reduction transaction for U.S. federal income tax purposes.

· certain former citizens or long-term residents of the United States.

· stockholders who are subject to the alternative minimum tax.

· persons who are subject to special accounting rules under Section 451(b) of the Code.

· persons who own American Resources common stock through partnerships or other pass-through entities.

· persons who hold American Resources common stock through a tax-qualified retirement plan.

This summary does not address any U.S. state or local or foreign tax consequences or any estate, gift or other non-income tax consequences.

If a partnership, or any other entity treated as a partnership for U.S. federal income tax purposes, holds American Resources common stock, the tax treatment of a partner in that partnership will generally depend on the status of the partner and the activities of the partnership. Such a partner or partnership is urged to consult its own tax advisor as to its tax consequences.

YOU ARE URGED TO CONSULT YOUR OWN TAX ADVISOR WITH RESPECT TO THE U.S. FEDERAL, STATE AND LOCAL AND FOREIGN TAX CONSEQUENCES OF THE SHARE DISTRIBUTION.

**General**

Completion of the Spin-Off is conditioned upon American Resources' receipt of written opinion from GBQ Partners LLC to the effect that the Distribution will qualify for non-recognition of gain or loss under Section 355 and related provisions of the Code. The opinions will be based on the assumption that, among other things, the representations made, and information submitted, in connection with it are accurate. If the Distribution qualifies for this treatment and subject to the qualifications and limitations set forth herein, for U.S. federal income tax purposes:

· no gain or loss will be recognized by, or be includible in the income of, a holder as a result of the Distribution.

· the aggregate tax basis of the American Resources common stock and our common stock held by each holder immediately after the Distribution will be the same as the aggregate tax basis of the American Resources common stock held by that holder immediately before the Distribution, allocated between the American Resources common stock and our common stock in proportion to their relative fair market values on the date of the Distribution; and

· the holding period of our common stock received by each Holder will include the holding period of its American Resources common stock.

The opinions will not address any U.S. state or local or foreign tax consequences of the Spin-Off. The opinions will assume that the Spin-Off will be completed according to the terms of the Mutual Services and Transition Agreement and will rely on the facts as stated in the Mutual Services and Transition Agreement, this Information Statement and a number of other documents. In addition, the opinions will be based on certain representations as to factual matters from, and certain covenants by, American Resources and us. The opinions cannot be relied on if any of the assumptions, representations or covenants is incorrect, incomplete or inaccurate or are violated in any material respect.

The opinions will not be binding on the IRS or the courts, and there can be no assurance that the IRS or a court will not take a contrary position. If the conclusions expressed in the opinions are challenged by the IRS, and if the IRS prevails in that challenge, the tax consequences of the Spin-Off could be materially less favorable. American Resources has not requested, and does not intend to request, a ruling from the IRS regarding the U.S. federal income tax consequences of the Spin-Off.

If the Distribution were determined not to qualify for non-recognition of gain or loss, the above consequences would not apply and each holder who receives our common stock in the Distribution would generally be treated as receiving a distribution in an amount equal to the fair market value of our common stock received, which would generally result in:

· a taxable dividend to the extent of the holder's pro rata share of American Resources' current or accumulated earnings and profits.

· a reduction in the holder's basis (but not below zero) in American Resources common stock to the extent the amount received exceeds the holder's share of American Resources' earnings and profits; and

· a taxable gain from the exchange of American Resources common stock to the extent the amount received exceeds the sum of the holder's share of American Resources' earnings and profits and its basis in its American Resources common stock.

***Consequences to American Resources***

The following is a summary of the material U.S. federal income tax consequences to American Resources in connection with the Spin-Off that may be relevant to holders of American Resources common stock.

As discussed above, completion of the Spin-Off is conditioned upon American Resources' receipt of written opinion from GBQ Partners LLC to the effect that the Distribution will qualify for nonrecognition of gain or loss under Section 355 and related provisions of the Code. If the Distribution qualifies for nonrecognition of gain or loss under Section 355 and related provisions of the Code, then American Resources generally will not recognize gain or loss as a result of the Distribution. The opinions are subject to the qualifications and limitations as are set forth above under "-Consequences to U.S. Holders of American Resources common stock."

If the Distribution were determined not to qualify for non-recognition of gain or loss under Section 355 and related provisions of the Code, then American Resources would recognize gain equal to the excess of the fair market value of our common stock distributed to American Resources stockholders over American Resources' tax basis in our common stock.

***Results of the Spin-Off***

After the Spin-Off, we will be an independent, publicly traded company. Immediately following the Spin-Off, we expect to have approximately [•] shares of our common stock outstanding, based on the number of American Resources stockholders and shares of American Resources common stock outstanding on [•], 2024. The actual number of shares of our common stock American Resources will distribute in the Spin-Off will depend on the actual number of shares of American Resources common stock outstanding on the Record Date, which will reflect any issuance of new shares or exercises of outstanding options pursuant to American Resources' equity plans, and any repurchase of American Resources shares on or prior to the Record Date. Shares of American Resources common stock held by American Resources as treasury shares will not be considered outstanding for purposes of and will not be entitled to participate in the Share Distribution. The Spin-Off will not affect the number of outstanding shares of American Resources common stock or any rights of American Resources stockholders. However, following the Share Distribution, the equity value of American Resources will no longer reflect the value of the Business. There can be no assurance that the Combined trading prices of the American Resources common stock and our common stock will equal or exceed what the trading price of American Resources common stock would have been in absence of the Spin-Off.

We entered into a Mutual Services and Transition Agreement with American Resources related to the Spin-Off. This Agreement, along with any others, will govern the relationship between us and American Resources up to and after completion of the Spin-Off provides a non-exclusive list of services that might be provided including administrative support, accounting services, IT, legal, clerical, warehouse management services, and any other services that the Company may reasonably request from time to time, which allows either party to accept or reject services at each AREC's and the Company's sole discretion. We describe these arrangements in greater detail under "Certain Relationships And Related Party Transactions-Agreements with American Resources."

***Listing and Trading of Our Common Stock***

As of the date of this Information Statement, we are a majority owned subsidiary of American Resources. accordingly, no public market for our common stock currently exists, although a "when-issued" market in our common stock may develop prior to the Share Distribution. See "The Spin-Off-Trading Prior to the Share Distribution Date" below for an explanation of a "when-issued" market. We intend to apply to list our shares of common stock on the NASDAQ Capital Market under the symbol "[•]". Following the Spin-Off, American Resources common stock will continue to trade on the NASDAQ Stock Exchange under the symbol "AREC".

Neither we nor American Resources can assure you as to the trading price of American Resources common stock or our common stock after the Spin-Off, or as to whether the Combined trading prices of our common stock and the American Resources common stock after the Spin-Off will equal or exceed the trading prices of American Resources common stock prior to the Spin-Off. The trading price of our common stock may fluctuate significantly following the Spin-Off.

The shares of our common stock distributed to American Resources stockholders will be freely transferable, except for shares received by individuals who are our affiliates. Individuals who may be considered our affiliates after the Spin-Off include individuals who control, are controlled by or are under common control with us, as those terms generally are interpreted for federal securities law purposes. These individuals may include some or all of our directors and executive officers. Individuals who are our affiliates will be permitted to sell their shares of our common stock only pursuant to an effective registration statement under the Securities Act of 1933, as amended (the "Securities Act"), or an exemption from the registration requirements of the Securities Act, such as those afforded by Section 4(a)(1) of the Securities Act or Rule 144 thereunder.

***Trading Prior to the Share Distribution Date***

We expect a "when-issued" market in our common stock to develop as early as one trading day prior to the Record Date for the Share Distribution and continue up to and including the Share Distribution Date. "When-issued" trading refers to a sale or purchase made conditionally on or before the Share Distribution Date because the securities of the spun-off entity have not yet been distributed. If you own shares of American Resources common stock at the close of business on the Record Date, you will be entitled to receive shares of our common stock in the Share Distribution. You may trade this entitlement to receive shares of our common stock, without the shares of American Resources common stock you own, on the "when-issued" market. We expect "when-issued" trades of our common stock to settle within two trading days after the Share Distribution Date. On the first trading day following the Share Distribution Date, we expect that "when-issued" trading of our common stock will end and "regular-way" trading will begin.

We also anticipate that, as early as one trading day prior to the Record Date and continuing up to and including the Share Distribution Date, there will be two markets in American Resources common stock: a "regular-way" market and an "ex-distribution" market. Shares of American Resources common stock that trade on the regular-way market will trade with an entitlement to receive shares of our common stock in the Share Distribution. Shares that trade on the ex-distribution market will trade without an entitlement to receive shares of our common stock in the Share Distribution. Therefore, if you sell shares of American Resources common stock in the regular-way market up to and including the Share Distribution Date, you will be selling your right to receive shares of our common stock in the Share Distribution. However, if you own shares of American Resources common stock at the close of business on the Record Date and sell those shares on the ex-distribution market up to and including the Share Distribution Date, you will still receive the shares of our common stock that you would otherwise be entitled to receive in the Share Distribution.

If "when-issued" trading occurs, the listing for our common stock is expected to be under a trading symbol different from our regular-way trading symbol. We will announce our "when-issued" trading symbol when and if it becomes available. If the Spin-Off does not occur, all "when-issued" trading will be null and void.

***Conditions to the Spin-Off***

We expect that the Spin-Off will be effective on the Share Distribution Date, provided that the following conditions shall have been satisfied or waived by American Resources:

· the American Resources Board shall have approved the Reorganization Transactions and Share Distribution and not withdrawn such approval, and shall have declared the dividend of our common stock to American Resources stockholders;

· the ancillary agreements contemplated by the Mutual Services and Transition Agreement shall have been executed by each party to those agreements;

· the SEC shall have declared effective our Registration Statement on Form 10, of which this Information Statement is a part, under the Exchange Act, and no stop order suspending the effectiveness of the Registration Statement shall be in effect and no proceedings for that purpose shall be pending before or threatened by the SEC;

· our common stock shall have been accepted for listing on a national securities exchange approved by American Resources, subject to official notice of issuance;

· Unless waived by American Resources, American Resources shall have received the written opinion of GBQ Partners LLC, which shall remain in full force and effect, regarding the intended treatment of the Share Distribution under the Code;

· the Reorganization Transactions shall have been completed (other than those steps that are expressly contemplated to occur at or after the Share Distribution);

· no order, injunction or decree issued by any governmental authority of competent jurisdiction or other legal restraint or prohibition preventing consummation of the Share Distribution shall be in effect, and no other event outside the control of American Resources shall have occurred or failed to occur that prevents the consummation of the Share Distribution;

· no other events or developments shall have occurred prior to the Share Distribution that, in the judgment of the American Resources Board, would result in the Share Distribution having a material adverse effect on American Resources or its stockholders;

· prior to the Share Distribution Date, notice of Internet availability of this Information Statement or this Information Statement shall have been mailed to the holders of American Resources common stock as of the Record Date; and

· certain other conditions set forth in the Mutual Services and Transition Agreement.

Any of the above conditions may be waived by the American Resources Board to the extent such waiver is permitted by law. If the American Resources Board waives any condition prior to the effectiveness of the Registration Statement on Form 10, of which this Information Statement Forms a part, and the result of such waiver is material to American Resources stockholders, we will file an amendment to the Registration Statement on Form 10, of which this Information Statement forms a part, to revise the disclosure in the Information Statement accordingly. In the event that American Resources waives a condition after this Registration Statement becomes effective and such waiver is material, we would communicate such change to American Resources' stockholders by filing a Form 8-K describing the change.

The fulfillment of the above conditions will not create any obligation on American Resources' part to complete the Spin-Off. We are not aware of any material federal, foreign or state regulatory requirements with which we must comply, other than SEC rules and regulations, or any material approvals that we must obtain, other than the approval for listing of our common stock and the SEC's declaration of the effectiveness of the Registration Statement, in connection with the Share Distribution. American Resources may at any time until the Share Distribution decide to abandon the Share Distribution or modify or change the terms of the Share Distribution.

***Reasons for Furnishing this Information Statement***

We are furnishing this Information Statement solely to provide information to American Resources' stockholders who will receive shares of our common stock in the Share Distribution. You should not construe this Information Statement as an inducement or encouragement to buy, hold or sell any of our securities or any securities of American Resources. We believe that the information contained in this Information Statement is accurate as of the date set forth on the cover. Changes to the information contained in this Information Statement may occur after that date, and neither we nor American Resources undertakes any obligation to update the information except in the normal course of our and American Resources' public disclosure obligations and practices.

**DIVIDEND POLICY**

Subject to the sole discretion of our Board and the considerations discussed below, once the Spin-Off is effective, we do not anticipate paying cash dividends on our common stock for the foreseeable future.

The Board's decisions regarding the payment of dividends will depend on consideration of many factors, such as our financial condition, earnings, sufficiency of distributable reserves, opportunities to retain future earnings for use in the operation of our business and to fund future growth, capital requirements, debt service obligations, legal requirements, regulatory constraints and other factors that the Board deems relevant. See "Risk Factors-Our ability to pay cash dividends to our stockholders is subject to the discretion of our Board and there is no guarantee we will initiate dividends, or that once initiated, that we will continue paying dividends."

**CAPITALIZATION**

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

· on a historical basis; and

· on a pro forma basis to reflect the adjustments included in our unaudited pro forma financial information.

The information below is not necessarily indicative of what our capitalization would have been had the separation, distribution and related transactions been completed as of September 30, 2025. In addition, it is not indicative of our future capitalization.

This table should be read in conjunction with the "Unaudited Pro Forma Financial Information", "Management's Discussion and Analysis of Financial Condition and Results of Operations", sections of this Information Statement and our unaudited condensed Financial Statements and notes thereto included in the "Index to Financial Statements" of this Information Statement.

---

| | | |
|:---|:---|:---|
|  | **As of September 30, 2025**<br> **(Unaudited)** | **As of September 30, 2025**<br> **(Unaudited)** |
|  | **Historical** | **As Adjusted** |
| Cash: | $- | $- |
| Capitalization: |  |  |
| Shareholder's equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Parent's net investment | $(767870) | $- |
| Total stockholders' deficit | $(767870) | $- |
| **Total capitalization** | $(767870) | $- |

---

We have not yet finalized our post-Spin-Off capitalization. Adjusted financial data reflecting our post-Spin-Off capitalization will be included in an amendment to this Information Statement.

**SELECTED HISTORICAL FINANCIAL INFORMATION OF ELECTRIFIED MATERIALS CORPORATION**

The following tables present EMC'S selected historical financial information derived from EMC'S audited financial statements as of and for the years ended December 31, 2024 and December 31, 2023.

Although a legal entity was formed in 2020, the historical Business activities of the Company have been transacted in part within the American Metals / Electrified Materials Corporation legal entities as well as a number of other parent company subsidiaries, primarily the parent company's mining business. The historical Business activities of the Company as well as the Business activities of the parent company's other subsidiaries have been presented in the accompanying historical carved-out financial statements of Electrified Materials Corporation to reflect the historical operations of the parent company's collective subsidiaries that will be included in SpinCo on a post transaction basis. In addition to the historical Business activities the carved-out financial statements include allocations of administrative expenses from the parent company that reflect those administrative costs expected to be incurred by SpinCo. The accompanying historical carved-out balance sheets of the Company reflect receivables from parent company subsidiaries for revenues of those Business activities earned by those other subsidiaries that will be contributed to SpinCo and cash settled post transaction. Accrued expenses included in the carved-out balance sheets reflect the payable by the Company to the parent company for allocated expenses that SpinCo will assume in the transaction and will also cash settle post transaction.

The financial data set forth below should be read in conjunction with, and is qualified by reference to, "EMC'S Management's Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and notes thereto. EMC'S financial statements are prepared and presented in accordance with GAAP.

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** <br> **December 31,**  | **For the Years Ended** <br> **December 31,**  |
|  | **2024** | **2023** |
| **Revenue** |  |  |
| Metal recovery and sales | $31827 | $62828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 31827 | 62828 |
| **Cost of Sales** |  |  |
| Cost of sales | 31705 | 35380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cost of sales | 31705 | 35380 |
| Gross profit | $122 | $27448 |
| **Operating expenses** |  |  |
| General and administrative expenses | 499647 | 8440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses  | 499647 | 8440 |
| Net (loss) income | $(499525) | $19008 |

---

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** <br> **December 31,** | **For the Years Ended** <br> **December 31,** |
|  | **2024** | **2023** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash  | $1699 | $- |
| &nbsp;&nbsp;&nbsp; Due from parent  | 314130 | 284002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets  | 315829 | 284002 |
| &nbsp;&nbsp;&nbsp; Operating - right-of-use assets, net - related party | 1657026 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | 1972855 | 284002 |
| **Liabilities And Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Accrued expenses | $273429 | $115496 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, current - related party | 714456 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities  | 987885 | 115496 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, non-current - related party | 1315989 | - |
| Total liabilities | 2303874 | 115496 |
| Commitments and contingencies (Note 3) |  |  |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp; Parent company investment | (331019) | 168506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total equity | (331019) | 168506 |
| Total liabilities and equity | $1972855 | $284002 |

---

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** <br> **December 31,** | **For the Years Ended** <br> **December 31,** |
|  | **2024** | **2023** |
| **Cash Flows from Operating activities:** |  |  |
| Net (loss) income | $(499525) | $19008 |
| **Change in current assets and liabilities:** |  |  |
| Due from parent | (30128) | (62828) |
| Accrued expenses  | 157933 |  |
| Operating lease assets and liabilities, net – related party | 373419 | 43820 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash provided by operating activities | 1699 | - |
| Increase in cash | 1699 |  |
| Cash and cash equivalents, beginning of period | - | - |
| Cash and cash equivalents, end of period | $1699 | $- |
| SUPPLEMENTAL CASH FLOW INFORMATION |  |  |
| Acquisition of assets through operating leases - related party | $1912438 | $- |

---

**UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS**

The Unaudited Pro Forma Condensed Financial Statements of SpinCo consist of the Unaudited Pro Forma Condensed Financial Statements of operations for the nine months ended September 30, 2025 and the year ended December 31, 2024, and an Unaudited Pro Forma Condensed Consolidated Financial Balance Sheet as of September 30, 2025. The Unaudited Pro Forma Condensed Financial Statements are derived from our historical Financial Statements included elsewhere in this Information Statement and are not intended to be a complete presentation of our financial position or results of operations had the transactions contemplated by the Mutual Services and Transition Agreement and related agreements occurred as of the dates indicated. The Unaudited Pro Forma Condensed Financial Statements should be read in conjunction with our "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical Financial Statements and the accompanying Notes included elsewhere in this Information Statement.

The Unaudited Pro Forma Condensed Statements of Operations for the nine months ended September 30, 2025, and the year ended December 31, 2024 reflect our results as if the Spin-Off and related transactions described below had occurred as of January 1, 2023. The Unaudited Pro Forma Condensed Balance Sheet as of September 30, 2025 reflects our results as if the Spin-Off and related transactions described below had occurred as of such date.

The Unaudited Pro Forma Condensed Financial Statements give effect to the following:

· the contribution by American Resources to us of all the assets and liabilities that comprise our business pursuant to the Mutual Services and Transition Agreement;

· the anticipated post-Distribution capital structure, including the issuance of our common stock to holders of American Resources common stock;

· the impact of, and transactions contemplated by, the Mutual Services and Transition Agreement and other agreements related to the Distribution between us and American Resources and the provisions contained therein;

· the incremental costs we expect to incur as an autonomous entity.

The Unaudited Pro Forma Condensed Financial Statements are subject to the assumptions and adjustments described in the accompanying notes that reflect the expected impacts of events directly attributable to the Spin-Off and that are factually supportable and, for purposes of statements of operations, are expected to have a continuing impact on us. However, these adjustments are subject to change as we and American Resources finalize the terms of the Mutual Services and Transition Agreement and the other agreements related to the Share Distribution. The Unaudited Pro Forma Condensed Financial Statements are provided for illustrative and informational purposes only and are not necessarily indicative of our future results of operations or financial condition as an independent, publicly traded company.

The operating expenses reported in our historical Statements of Operations include allocations of certain American Resources costs. These costs include the allocation of all American Resources corporate costs, shared services and other related costs that benefit us.

As a stand-alone public company, we expect to incur additional recurring costs of being a stand-alone public company. The significant assumptions involved in determining our estimates of recurring costs of being a stand-alone public company include:

· costs to perform financial reporting, tax, regulatory compliance, corporate governance, treasury, legal, internal audit and investor relations activities;

· insurance premiums;

· changes in our overall facility costs;

· depreciation and amortization related to information technology infrastructure investments; and

· the type and level of other costs expected to be incurred.

We currently estimate that we will incur substantial non-recurring costs associated with becoming a stand-alone public company within 24 months of the Distribution. The accompanying Unaudited Pro Forma Condensed Financial Statements of Operations are not adjusted for these estimated expenses as they are projected amounts based on estimates and would not be factually supportable. These expenses primarily relate to the following:

· recruiting costs associated with hiring key senior management personnel new to our company;

· costs related to establishing our new brand in the marketplace;

· costs to separate information systems; and

· costs of retention bonuses.

Due to the scope and complexity of these activities, the amount of these costs could increase or decrease materially, and the timing of incurrence could change.

**UNAUDITED PRO FORMA FINANCIAL STATEMENT OF OPERATIONS**

**FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025**

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Historical** | **Autonomous**<br>**Entity**<br>**Adjustments** |<br>**Pro Forma** |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Metal recovery and sales | $2996 | $- | $2996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 2996 |  | 2996 |
| **Cost of Sales** |  |  |  |
| Cost of sales | 14439 | - | 14439 |
|  | 14439 | - | 14439 |
| Gross loss | (11443) |  | (11443) |
| **Operating Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 425408 | 150000 (a) | 575408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 425408 | 150000 | 575408 |
| Loss before provision for income taxes | (436851) | (150000) | (586851) |
| Provision for income taxes | - | -<br> (e) | - |
| Net loss | $(436851) | $(150000) | $(586851) |
| Net loss per share - basic | $- | $(0.03)(b) | $(0.03) |
| Net loss per share - diluted | $- | $(0.03)(b) | $(0.03) |
| Weighted average shares outstanding – basic and diluted | \* | 20000000 (c) | 20000000 |

---

**UNAUDITED PRO FORMA FINANCIAL STATEMENT OF OPERATIONS**

**FOR THE YEAR ENDED DECEMBER 31, 2024**

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Historical** | **Autonomous**<br>**Entity**<br>**Adjustments** |<br>**Pro Forma** |
| Revenue |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Metal recovery and sales | $31827 | $- | $31827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 31827 |  | 31827 |
| **Cost of Sales** |  |  |  |
| Cost of sales | 31705 |  | 31705 |
| Gross Profit | 122 |  | 122 |
| Operating Expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 499647 | 200000 (a) | 699647 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 499647 | 200000 | 699647 |
| Loss before provision for income taxes | (499525) | (200000) | (699525) |
| Provision for income taxes |  | -<br> (e) |  |
| Net loss | $(499525) | $(200000) | $(699525) |
| Net income per share – basic | $(\*) | $(0.01)(b) | $(0.01) |
| Net income per share – diluted | (\*) | (0.01)(b) | (0.01) |
| Weighted average shares outstanding - basic | \* | 20000000 (c) | 20000000 |

---

**UNAUDITED PRO FORMA FINANCIAL STATEMENT BALANCE SHEET** 

**SEPTEMBER 30, 2025**

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Historical** | **Transaction**<br>**Accounting**<br>**Adjustments** |<br>**Pro Forma** |
| **Assets** |  |  |  |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Due from parent | $318825 | $- | $318825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 318825 |  | 318825 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating right-of-use assets – related party | 1392124 | - | 1392124 |
| Total Assets | $1710949 | $- | $1740949 |
| **Liabilities And Equity** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | $340647 | $- | $340647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities – related party | 1114440 | - | 1114440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 1455087 |  | 1455087 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities – related party, non-current | 1023732 | - | 1023732 |
| Total liabilities | 2478819 | - | 2478819 |
| Stockholders' deficit: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock, $0.0001 par value; 1,000,000,000 shares authorized, 20,000,000 shares outstanding on a pro forma basis |  | 2000 (d) | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit |  | (769870)(d) | (769870) |
| &nbsp;&nbsp;&nbsp;&nbsp; Parent company investment | (767870) | 767870 (d) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' deficit | (767870) | - | (767870) |
| Total liabilities and stockholders' deficit | $1710949 | $- | $1710949 |

---

**NOTES TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS**

For further information regarding the historical Financial Statements, please refer to the audited Financial Statements included in this Information Statement. The Unaudited Pro Forma Balance Sheet as of September 30, 2025 and the Unaudited Pro Forma Statement of Operations for the nine months ended September 30, 2025 and for the year ended December 31, 2024 include adjustments related to the following:

(a) As an independent, separate public company following the separation from American Resources, we expect to incur certain costs including financial reporting and regulatory compliance, board of directors' fees and expenses, accounting, auditing, tax, legal, insurance, information technology, human resources, investor relations and other general and administrative-related function. We have estimated those additional costs at $150,000 and $200,000 of general administrative expenses for the nine months ended September 30, 2025 and for the year ended December 31, 2024, respectively.

(b) The number of EMC shares used to compute basic loss per share for the nine months ended September 30, 2025 and year ended December 31, 2024 is based on the number of shares of EMC common stock which are expected to be outstanding upon completion of the distribution. We have assumed the number of outstanding shares of common stock based on the number of American Resources common shares outstanding as of [•], 2025 and an assumed pro-rata distribution ratio of [•] share of Class A common stock of American Resources for one share of common stock of EMC common stock for each share of American Resources common stock. The actual number of shares of EMC common stock outstanding upon completion of the Distribution may be different from this estimated amount.

(c) The number of shares used to compute diluted loss per share is the same as the basic shares of EMC common stock as described in Note (b) above, due to a net loss reported in the unaudited pro forma statement of earnings for the nine months ended September 30, 2025 and for the year ended December 31, 2024.

(d) Reflects the Parent investment impact as a result of the anticipated post-separation and post-distribution capital structure. As of the distribution date, the Parent investment will be adjusted to reflect the distribution of approximately 20 million shares of EMC common stock as of September 30, 2025, to American Resources stockholders. EMC's common stock account reflects an adjustment for the par value of the anticipated approximately 20 million outstanding shares of EMC common stock, par value of $0.0001 per share, expected to be issued upon distribution. EMC's accumulated deficit reflect and adjustment related to the reclassification of the Parent's net investment. Parent's net investment in EMC will be allocated between common stock and accumulated deficit based on the number of shares of EMC common stock outstanding at the distribution date.

(e) Reflects the tax effects of the pro forma adjustments at the applicable statutory income tax rate of 25.9% and that substantially all of the spinoff related costs are assumed to be non-deductible for tax purposes. The effective tax rate could be different (either higher or lower) depending on activities subsequent to the spinoff. However, given the Company's current operations, it would be in a full valuation allowance position. As a result, no income tax expense or benefit would be recorded in the pro forma financial statements. This treatment reflects the assumption that EMCO would not be able to realize its deferred tax assets due to insufficient future taxable income, consistent with the application of a full valuation allowance.

**BUSINESS**

Electrified Materials Corporation is an Indiana corporation, formed on June 29, 2020 as American Metals LLC prior to being renamed to Electrified Materials Corporation and converted from a limited liability company to a corporation on December 9, 2024 ("EMC" or the "Company") by its current parent company, American Resources Corporation (Nasdaq: AREC). The Company is an aggregator and processor of used metals for recycling into new steel-based products for the recovery and sale of recovered metal and steel. It is targeting the product and components to accumulate high concentrations of critical minerals needed for energy transition and national defense applications and other advanced technologies. The Company is targeting the preprocessing of end-of-life magnets, end of life batteries and ferrous metals, which will enable the Company to ensure a domestic supply chain for copper, aluminum, steel, plastic as well as rare earth and battery elements. The Company intends to accomplish this through executing on its business plan, starting with its current affiliation and Supply Agreement with ReElement Technologies Corporation, which provides an agreement to sell the Company's products to a domestic refiner of the metals and elements.

The Company has historically and currently operated within the United States' coal country where there is often an abundance of used and scrap metal sources from former thermal coal mines that have since been shut down and are currently being reclaimed. Additionally, the Company has expanded its presence in Central Indiana, including Marion and Noblesville, where the Company can more efficiently supply ReElement Technologies Corporation under the Supply Agreement.

ReElement is a provider of critical mineral refining solutions that can further process and refine EMC's products to increase the business and marketability of the Company's operations.

Through this planned expansion, EMC is a provider to ReElement for a select set of end-of-life and scrap material with valuable inherent elements.

**EMC'S MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis of Electrified Materials Corporation's financial condition and results of operations in conjunction with the section entitled "Selected Financial Data" and Electrified Materials Corporation's financial statements and the related notes included elsewhere in this proxy statement/prospectus. This discussion contains forward-looking statements that involve risks and uncertainties. Electrified Materials Corporation's actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" and elsewhere in this proxy statement/prospectus.*

**Company Overview and History**

Electrified Materials Corporation is an Indiana corporation, formed on June 29, 2020 as American Metals LLC prior to being renamed to Electrified Materials Corporation and converted from a limited liability company to a corporation on December 9, 2024 ("EMC" or the "Company"), that is focused on the aggregation, recovery and sale of recovered metal and steel, which is pursuing becoming a recycler of metals for the electrified economy. The Company is working to increase the domestic US preprocessing of both end-of-life magnets, batteries and ferrous metals, which enables the Company to ensure a domestic supply chain for copper, aluminum, steel, plastic as well as rare earth and battery elements through its Supply Agreement with ReElement Technologies Corp., also a subsidiary of American Resources Corporation.

Although a legal entity was formed in 2020, the historical business activities of the Company have been transacted in part within the American Metals / Electrified Materials Corporation legal entities as well as a number of other parent company subsidiaries, primarily the parent company's mining business. The historical business activities of the Company as well as the business activities of the parent company's other subsidiaries have been presented in the accompanying historical carved-out financial statements of Electrified Materials Corporation to reflect the historical operations of the parent company's collective subsidiaries that will be included in SpinCo on a post transaction basis. In addition to the historical business activities the carved-out financial statements include allocations of administrative expenses from the parent company that reflect those administrative costs expected to be incurred by SpinCo. The accompanying historical carved-out balance sheets of the Company reflect receivables from parent company subsidiaries for revenues of those business activities earned by those other subsidiaries that will be contributed to SpinCo and cash settled post transaction. Accrued expenses included in the carved-out balance sheets reflect the payable by the Company to the parent company and third parties for allocated expenses that SpinCo will assume in the transaction and will also cash settle post transaction.

On a historical basis through September 30, 2025, the business activities of the Company have not included material revenue or expense transactions with ReElement Technologies Corp.

During the period of operations from inception through December 31, 2024, the company had no long-lived physical assets. During the period, the company's customers supplied the receptacles and bins for the aggregated material. Additionally during this period, the company's customers supplied the logistics and material handling for the receptacles and bins. During this period the company utilized employees to build the relationships for material aggregation and the sale of scrap metals. The employees would monitor the receptacles and bins and coordinate pick up of filled bins and delivery of empty ones. The corporate office would receive payment from the customers.

Beginning in January 2024, the company entered into leases for office space in Hazard Kentucky, storage location in Noblesville Indiana and operating space in Marion Indiana.

The Company has historically and currently operated within the United States' coal country where there is often an abundance of used and scrap metal sources from former thermal coal mines that have since been shut down and are currently being reclaimed. Additionally, the Company is seeking to expand its presence in Indiana, where the Company can more efficiently supply ReElement Technologies Corporation under the Supply agreement. ReElement is a provider of critical mineral refining solutions that can further process and refine EMC's products to increase the business and marketability of the Company's operations.

The Company's mission is not only to increase the domestic production of these battery materials, but to also ensure spent batteries have their elemental battery metals returned to the domestic manufacturing supply chain in an economical, environmentally-conscious, closed–loop fashion.

**Key Factors Affecting Our Performance**

We believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges, including competition from other metal and battery recyclers, changes to existing federal and state level incentive framework, changes in regulations, and other factors discussed under the section titled "*Risk Factors*." We believe the factors described below are key to our success.

***Commencing Commercial Operations***

While initial commercial operations have been in effect since 2021, large scale commercial recycling operations have yet to commence. We will be purchasing, installing and utilizing a combination of industry standard processes as well as uniquely designed processes to maximize both operational efficiency and product output. Our operational team will rely both on internal talent as well as outsourced technical consultants.

Electrified Materials Corporation, has been aggregating and validating recycled feedstock from various sources including lithium-ion batteries, electric vehicle motor and rotors, wind turbines and consumer power tools. This has provided Electrified Materials Corporation the opportunity to process such feedstock to better understand the optimal operational efficiency and product output to create an efficient circular life-cycle solution for its partners. Electrified Materials Corporation expects to modularly add processing capacity throughout calendar year 2025 and has identified and developed such processing equipment with its suppliers.

***Partnership Ecosystem***

Our success will depend on whether we can execute and expand our ecosystem of commercial arrangements with additional suppliers of battery and magnet feedstock and executing agreements with them at favorable terms. The availability of end-of-life battery material for the purpose of extracting lithium is still in a nascent stage in North America and we will require access to multiple sources, as we start commercial production and grow our business. Our management team frequently evaluates current and future sources of supplies, for reliability of supply, geographic locations for logistics and cost efficiency. We would also be required to maintain technology arrangements with existing strategic affiliations on whose patented and proprietary process we depend on, as well as forge new technology affiliations to continue to reach higher efficiencies and scale. These affiliations will enable us to recycle the materials needed for the electrification economy at competitive prices, which in turn helps secure the growth and profitability of our business operations in the long term.

***Adequate Capital Raise***

The success of our activities relating to metal and critical element recycling, and the success of our ability to obtain relevant permits timely, require significant capital investments and financings to fund the initial investment in all aspects of setting up the operations, and subsequently our operating losses, competition from substitute products and services from larger companies, protection of proprietary technology of our strategic partners, and dependence on key individuals.

As a development stage company, we need to raise additional capital to realize our business objectives. Our long-term success is dependent upon our ability to successfully raise additional capital or financing or successfully enter into strategic partnerships. Until commercial production is achieved from our planned operations, we will continue to incur operating and investing net cash outflows associated with, among other things, leasing property, acquiring inventory and equipment as warranted.

Our financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has earned limited revenue since inception. The ability of the Company to continue as a going concern is dependent upon management's plan to raise additional capital from issuance of equity or debt securities. Management intends to finance operations over the next twelve months through additional issuance of equity or borrowings.

***Post-Closing Share Price Risks***

The market price of the stock of a publicly traded company is affected by a number of variables, many of which are outside the Company's control. Such factors include: the general condition of markets for resource stocks, and particularly for stocks of lithium exploration and development companies and other battery-metals stocks; the general strength of the economy; the availability and attractiveness of alternative investments; analysts' recommendations and their estimates of financial performance; investor perception and reactions to disclosures made by the Company, and by the Company's competitors; future securities sales; reputational risks of the Company; and the breadth of the public markets for the stock. Investors could suffer significant losses if the Company's Common Stock is depressed or illiquid when an investor seeks liquidity.

***Limited Operating History***

We have a limited operating history and there is limited historical financial information upon which to base an evaluation of our performance. Our prospects must be considered in light of the uncertainties, risks, expenses, and difficulties frequently encountered by companies in their early stages of operations. As we were recently incorporated on June 29, 2020, our operating history is limited.

**Key Business Metrics; Non-GAAP Measure**

Since we have only recently begun commercial production, we do not have extensive financial information on key business metrics. However, based on our experience and industry knowledge, we expect the following would be key business metrics:

· ***Raw material Cost/ton*** : This includes the input cost of lithium chloride for the plant. As this may be obtained from various sources, the weighted average cost will be calculated to arrive at the raw material cost per ton and reflects the Company's ability to procure high-quality raw materials at an appropriate price. The weighted average method also helps in calculating the gross margin on a per-ton basis. The technology implemented and the efficiency of the operations are also reflected on the gross margin per ton.

· ***Selling Price/ton*** : This multiple is driven by the demand and supply of the lithium price as well as the efficient operations of the plant. The computation of the selling price may be based on the output sold per long-term contract, which is expected to have a floor and a cap, as well as the spot price on the date of placing a purchase order by the customer, with the Company and the customer sharing the difference between the floor and spot price.

· ***Capex/ton*** : This reflects the Capex incurred on a per-ton basis. It includes both direct and indirect costs. It also has contingency costs built in for any impact on Capex, to account for unforeseen events. The key is to optimize plant efficiency in long-term operations with the appropriate technology and set-up.

· ***Opex/ton*** : This includes the ongoing expenses incurred from the day-to-day running of the operations. It helps in measuring how much profit a company makes on a dollar of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax. The lower multiple reflects the efficient functioning of the management.

· ***Capacity Utilization*** : This measures how much output a plant is producing, compared to its maximum potential output, which is dependent on two key factors: (a) design capacity, which impacts the operational efficiency of the plant, and (b) the plant's downtime for its maintenance. Timely maintenance is also the key to running any efficient operations.

**Business and Macroeconomic Conditions**

Our business and financial condition have been, and we believe will continue to be, impacted by adverse and uncertain macroeconomic conditions and events, including higher inflation, higher interest rates, supply chain and logistics challenges, banking crises, and fluctuations or volatility in capital markets.

**Components of Results of Operations**

**Results of Operations for the years ended December 31, 2024 and 2023**

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| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **Revenue** |  |  |
| Metal recovery and sales | $31827 | $62828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 31827 | 62828 |
| **Cost of Sales** |  |  |
| Cost of sales | 31705 | 35380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cost of sales | 31705 | 35380 |
| Gross profit | $122 | $27448 |
| **Operating Expenses** |  |  |
| General and administrative expenses | 499647 | 8440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 499647 | 8440 |
| Net (loss) income | $(499525) | $19008 |

---

*Sales*

Our sales for the years ended December 31, 2024 and 2023 amounted to $31,827 and $62,828, respectively, primarily from the sale of scrap steel.

*Cost of Sales*

Our cost of sales for the years ended December 31, 2024, and 2023, totaled $31,705 and $35,380, respectively. These costs primarily reflect labor expenses for four employees of a subsidiary of the parent who allocated a portion of their time to the carve-out entity's business. The decrease in 2024 was primarily due to the termination of three employees during the fourth quarter.

*Gross Profit*

Our gross profit decreased to $122 from $27,448 for the years ended December 31, 2024 and 2023, respectively.

*General and Administrative expenses*

Our general and administrative expenses for the years ended December 31, 2024 and 2023 amounted to $499,647 and $8,440, respectively. The 2023 expenses include $8,440 of allocated lease expense. The 2024 expenses include an allocation of accounting and auditing expenses attributable to the separate financial statements of EMC that commenced in 2024 of $51,277, $75,000 of legal fees incurred in connection with the spinoff transaction and $373,420 related to the new leases that commenced in 2024.

**Components of Results of Operations**

**Results of Operations for the nine months ended September 30, 2025 and 2024**

---

| | | |
|:---|:---|:---|
|  | **FOR THE NINE MONTHS ENDED** <br> **SEPTEMBER 30,**  | **FOR THE NINE MONTHS ENDED** <br> **SEPTEMBER 30,**  |
|  | **2025** | **2024** |
|  | **(unaudited)** | **(unaudited)** |
| **Revenue** |  |  |
| Metal recovery and sales | $2996 | $13078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 2996 | 13078 |
| **Cost of Sales** |  |  |
| Cost of sales | 14439 | 23560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cost of sales | 14439 | 23560 |
| Gross loss | $(11443) | $(10482) |
| **Operating expenses** |  |  |
| General and administrative expenses | 425408 | 336209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses  | $425408 | $336209 |
| Net loss | $(436851) | $(346691) |

---

*Sales*

Our sales for the nine months ended September 30, 2025 and 2024 amounted to $2,996 and $13,078, respectively, primarily from the sale of scrap steel.

*Cost of Sales*

Our cost of sales for the nine months ended September 30, 2025, and 2024, totaled $14,439 and $23,560. These costs primarily reflect labor expenses for employees of a subsidiary of Parent who allocate a portion of their time to the carve-out entity business. The decrease in 2025 was primarily due to the termination of three employees during the fourth quarter of 2024.

*Gross Loss*

Our gross loss increased to $11,443 from $10,482 for the nine months ended September 30, 2025 and 2024, respectively. The decrease is due to a decrease in revenues due to low volumes.

*General and Administrative expenses*

Our general and administrative expenses increased to $425,408 from $336,209 for the nine months ended September 30, 2025 and 2024, respectively. The increase was primarily attributable to an increase in accounting fees and the lease expenses related to three new buildings. In the current period, we incurred nine months of lease expense for all three buildings, whereas in the prior-year period, we incurred only six months of lease expense for two of the three leases.

**Liquidity and Capital Resources**

We currently finance our operations through sales as well as advances from our Parent.

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** <br> **December 31,** | **For the Years Ended** <br> **December 31,** |
|  | **2024** | **2023** |
| **Cash Flows from Operating activities:** |  |  |
| Net (loss) income | $(499525) | $19008 |
| **Change in current assets and liabilities:** |  |  |
| Due from parent | (30128) | (62828) |
| Accrued expenses  | 157933 |  |
| Operating lease assets and liabilities, net – related party | 373419 | 43820 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash used in operating activities | 1699 | - |
| Increase in cash | 1699 |  |
| Cash and cash equivalents, beginning of period | - | - |
| Cash and cash equivalents, end of period | $1699 | $- |
| SUPPLEMENTAL CASH FLOW INFORMATION |  |  |
| Acquisition of assets through operating leases - related party | $1912438 | $- |

---

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended** <br> **September 30,** | **For the Nine Months Ended** <br> **September 30,** |
|  | **2025** | **2024** |
|  | (unaudited) | (unaudited) |
| **Cash Flows from Operating activities:** |  |  |
| Net loss | $(436851) | $(346691) |
| **Change in current assets and liabilities:** |  |  |
| Due from parent | (4695) | (13079) |
| Accrued expenses  | 67218 | 110561 |
| Operating lease assets and liabilities, net – related party | 372629 | 249209 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash used in operating activities | (1699) | - |
| Decrease in cash | (1699) |  |
| Cash and cash equivalents, beginning of period | 1699 | - |
| Cash and cash equivalents, end of period | $- | $- |
| SUPPLEMENTAL CASH FLOW INFORMATION |  |  |
| Acquisition of assets through operating leases - related party | $- | $1912438 |

---

**Off-Balance Sheet Arrangements**

During the periods presented we did not have, nor do we currently have, any off-balance sheet arrangements as defined in the rules and regulations of the SEC.

**Internal Control Over Financial Reporting Matters**

Due to the Company's insufficient number of staff performing accounting and reporting functions, there is a lack of segregation of duties within the financial reporting function resulting in limited level of multiple reviews among those tasked with preparing the financial statements, resulting in the need for adjustments. Management identified a material weakness.

A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material mistake of our annual or interim financial statements will not be prevented or detected on a timely basis. Notwithstanding the determination that our internal control over financial reporting was not effective, as of December 31, 2024. While The Company is designing and implementing measures to remediate its existing material weaknesses, it cannot predict the success of such measures at this time. The Company can give no assurance that such measures will remediate any of the deficiencies in its internal control over financial reporting or that additional material weaknesses or significant deficiencies in its internal control over financial reporting will not be identified in the future. The company's current controls and any new controls that it develops may become inadequate because of changes in conditions in its business. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement could harm the Company's operating results or cause the Combined Company to fail to meet its reporting obligations. For more information, please refer to "*Risk Factors – We identified material weaknesses in our internal control over financial reporting. If we are unable to remediate these material weaknesses, or if we experience additional material weaknesses or other deficiencies in the future, or otherwise fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately or timely report our financial results, which could result in loss of investor confidence and adversely impact our stock price.*"

**Risk Management Framework**

***Commodity Price Risk***

Global commodity prices, for our core products of critical and rare earth elements, ferrous and non-ferrous metals and plastics changes may impact the margins and produce less revenue or losses for the Company. In order to address this risk, the Company is negotiating fixed price off take agreement with suppliers of raw material required. Also, we seek to enter into long-term partnerships to limit potential volatility in pricing. Additionally, in the future, we intend to enter into strategic partnerships that would create long term alignment with buyers.

***Product Price and Quality Risks***

The ability to reach and sustain profitable operations on the recycling and extraction projects, if and to the extent the projects are developed and enter commercial operation, will be significantly affected by changes in the market price of lithium-based end products. The market price of these products fluctuates widely and is affected by numerous factors beyond the Company's control, including world supply and demand, pricing characteristics for alternate energy sources such as oil and gas, government policy and laws, interest rates, the rate of inflation and the stability of currency exchange rates, and other geopolitical and global economic factors. Such external economic factors are influenced by changes in international investment patterns, various political developments and macro-economic circumstances. Furthermore, the price of lithium products is significantly affected by their purity and performance, and by the specifications of end-user battery manufacturers. If the products produced from the Company's projects do not meet battery-grade quality and/or do not meet customer specifications, pricing will be reduced from that expected for battery-grade product. In turn, the Company may lose or fail to attract customers. The Company may not be able to effectively mitigate pricing risks for its products. Depressed pricing for the Company's products will affect the level of revenues expected to be generated by the Company, which in turn could affect the value of the Company, its share price and the potential value of its properties.

***Project and Process Risks***

The processes contemplated by the Company for refining of extracted materials and refining of recycled materials have not previously been demonstrated at commercial scale. There are risks that efficiencies of recovery and throughput capacity will not be met, and risks that scaled production will not be cost effective or operate as expected. In addition, there is potential for unforeseen costs, additional changes to the process chemistry and engineering, and other unforeseen circumstances that could result in delays to the projects or increased capital or operating costs.

***Insurance Risk***

The nature of these risks is such that liabilities could exceed any applicable insurance policy limits or could be excluded from coverage. There are also risks against which we cannot insure or against which we may elect not to insure. The potential costs, which could be associated with any liabilities not covered by insurance or in excess of insurance coverage, or compliance with applicable laws and regulations may cause substantial delays and require significant capital outlays, adversely affecting our future earnings and competitive position and potentially our financial viability. We may limit insurance risk by being proactive in our policies for environmental impact and climate change impact. Through strict adherence to company protocols, we may limit certain types of risk. Also, we intend to work only with best-in-class providers, who are adept at assessing various risks in our line of business adequately.

***Strategic Risk***

Strategic risk represents the risk associated with executive management failing to develop and execute on the appropriate strategic vision which demonstrates a commitment to our culture, leverages our core competencies, appropriately responds to external factors in the marketplace, and is in the best interests of our clients, employees, and members. By working with best-in-class partners and consultants who are industry experts, as well as by leveraging the knowledge of our senior executive team, we expect to be able to limit or address strategic risk and execution risk.

**Quantitative and Qualitative Disclosures about Market Risk**

We are exposed to certain market risks in the ordinary course of our business. Changes in these factors may cause fluctuations in our earnings and cash flows. We evaluate and manage exposure to the following risks. Failure to mitigate these risks could have a negative impact on revenue growth, gross margin and profitability.

***Market Risk Framework***

Market risk represents the risk of losses, or financial volatility, that may result from the change in value of our products due to fluctuations in its market price. The scope of our market risk management policies and procedures includes all market-sensitive data related to input and selling prices. We expect to be able to limit this risk by using third parties to finance acquisition of feedstock and logistics, as required. We may enter into long term arrangements for supply to limit impacts of market risk. The Company's different types of market risk include:

*Interest Rate Risk —* Interest rate risk represents the potential volatility from changes in market interest rates. We are exposed to interest rate risk arising from changes in the level and volatility of interest rates, changes in the slope of the yield curve, changes in credit spreads, and the rate of prepayments on our interest-earning assets (e.g., inventories) and our funding sources (e.g., short-term financing) which finance these assets. Project finance and loan facilities are a key component of our financing strategy. Volatility in the interest rate market could impede our plans for growth.

*Liquidity Risk —* Liquidity risk is the risk that we are unable to timely access necessary funding sources in order to operate our business. The Company does not have substantial credit lines for financing the Company.

*Credit Risk —* Credit risk refers to the potential for loss due to the default or deterioration in credit quality of a counterparty, customer, borrower, or issuer. The nature and amount of credit risk depends on the type of transaction, the structure and duration of that transaction and the parties involved. Credit risk also results from an obligor's failure to meet the terms of any contract with us or otherwise fail to perform as agreed. This may be reflected through issues such as settlement obligations or payment collections.

*Operational Risk —* The success of our plan requires us to be able to operationally deliver on the project plan and timelines as projected by management. In order to mitigate and control operational risk, we will develop policies and procedures that are designed to identify and manage operational risk at appropriate levels throughout the organization. We will also have business continuity plans in place that we believe will cover critical processes on a company-wide basis, and redundancies are built into our systems as we deem appropriate. These control mechanisms will be designed to ensure that operational policies and procedures are being followed and that our various businesses are operating within established corporate policies and limits. We are leveraging and intend to continue implementing established best practices for our industry to reduce operational risk.

*Human Capital Risk —* The success of our business will be dependent upon the skills, expertise, industry knowledge and performance of the employees we hire. Human capital risks represent the risks posed if we fail to attract and retain qualified individuals, particularly those having specialized technical knowledge in the exploration, extraction, and purification of brine from varying sources to produce battery grade lithium, and employees who are motivated to serve the best interests of our customers, thereby serving the best interests of our Company. Attracting and retaining employees depends, among other things, on our Company's culture, management, work environment, geographic locations and compensation. There are risks associated with the proper recruitment, development and rewards of our employees to ensure quality performance and retention. We offer competitive compensation and benefits to retain human capital, intend to offer educational opportunities to allow advancement, and promote balance in work life conditions by offering hybrid work from home options.

*Legal and Regulatory Risk —* Legal and regulatory risk includes the risk of non-compliance with applicable legal and regulatory requirements and loss to our reputation we may suffer as a result of failure to comply with laws, regulations, rules, related self-regulatory organization standards and codes of conduct applicable to our business activities. We are generally subject to extensive regulation in the various jurisdictions in which we conduct our business. We are in the process of setting up procedures that are designed to ensure compliance with applicable statutory and regulatory requirements, such as public company reporting obligations, sales practices, potential conflicts of interest, anti-money laundering, privacy and recordkeeping. We will also establish procedures that are designed to require that our policies relating to ethics and business conduct are followed.

***Market Risk Exposure***

The Company is subject to risk of new market participants, fluctuations in commodity sales prices and availability and pricing of feedstocks and availability of necessary equipment and technology and is exposed to commodity price movements for the inventory it holds and the products it plans to produce. Commodity price risk management activities are currently limited to monitoring market prices. The Company's future revenues, if any, are sensitive to the market prices of the metals contained in its planned products.

The Company's products are highly dependent on the demand for and uses of lithium-based end products. This includes lithium-ion batteries for electric vehicles and other large format batteries that currently have limited market share and whose projected adoption rates are not assured. To the extent that such markets do not develop in the manner contemplated by the Company, then the long-term growth in the market for lithium products will be adversely affected. This would inhibit the potential for development of the projects, their potential commercial viability and would otherwise have a negative effect on the business and financial condition of the Company. In addition, as a commodity, lithium market demand is subject to the substitution effect in which end-users adopt an alternate commodity as a response to supply constraints or increases in market pricing. These circumstances could limit the quantity of customers and prices paid for our products. To the extent that these factors arise in the market for lithium, it could have a negative impact on overall prospects for growth of the lithium market and pricing, which in turn could have a negative effect on the Company and its projects.

***Interest Rate Risk***

As of December 31, 2024, the Company did not have any significant risk to changes in interest rates.

***Credit Risk***

We are subject to credit risk with respect to our cash balances for those amounts in excess of the FDIC insured amount of $250,000. The Company has only one financial banking institution.

***Inflation Risk***

We do not believe that inflation has had a material effect on our business, financial condition, or results of operations, other than its impact on the general economy. However, we are currently operating in a more volatile inflationary environment due to macroeconomic conditions and have limited data and experience doing so in our history, particularly as we continue to invest in growth in our business. The principal inflationary factor affecting our business is higher costs. Our inability or failure to address challenges relating to inflation could harm our business, financial condition, and results of operations.

**Emerging Growth Company Status**

The Company qualifies as an "emerging growth company" under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as the Company is an emerging growth company, we will not be required to:

· comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (*i.e.,* an auditor discussion and analysis);

· have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

· submit certain executive compensation matters to shareholder advisory votes, such as "say-on-pay," "say-on-frequency" and pay ratio; and

· disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the CEO's compensation to median employee compensation.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As a result, The company may adopt new or revised accounting standard by the date private companies are required to comply. The company will continue to be an emerging growth company for five fiscal years unless total annual gross revenues exceed $1.235 billion, The company issues more than $1 billion in debt in a three-year period or it becomes a large accelerated filer, as defined in the Exchange Act Rule 12b-2. Large, accelerated filers have a number of criteria to meet, with a significant criterion of having aggregate worldwide common equity held by non-affiliates equal to or greater than $700 million.

**Critical Accounting Policies and Estimates** 

The preparation of financial statements requires management to utilize estimates and make judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. These estimates are based on historical experience and on various other assumptions that management believes to be reasonable under the circumstances. The estimates are evaluated by management on an ongoing basis, and the results of these evaluations form a basis for making decisions about the carrying value of assets and liabilities that are not readily apparent from other sources. Although actual results may differ from these estimates under different assumptions or conditions, management believes that the estimates used in the preparation of our financial statements are reasonable.

<u>Revenue Recognition</u>

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. The primary source of revenue is from the sale of scrap metal generated by the parent company's mining operations. Scrap metal is collected by the Company and sold on a regular basis.

Revenue is recognized when control of the scrap metal transfers to the buyer, typically at the point of sale. Since sales occur regularly and payment is received promptly, no formal contracts or extended payment terms are in place. Revenue is measured based on the agreed sale price at the time of each transaction.

<u>Income taxes</u>

We recognize deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction in which they arise, we consider all available positive and negative evidence, including the expected reversals of deferred tax liabilities, projected future taxable income, taxable income available via carryback to prior years, tax planning strategies, and results of recent operations. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled We believe the deferred tax liabilities relied upon as future taxable income in our assessment will reverse in the same period and jurisdiction and are of the same character as the temporary differences giving rise to the deferred tax assets that will be realized. The potential tax benefits of the net loss carry-forwards are fully offset by a full valuation allowance.

**Recent Accounting Pronouncements**

None.

***Quantitative and Qualitative Disclosures about Market Risk***

*Commodity Price Risk:* We plan to manage our commodity price risk for metal sales through the use of scrap metal sales agreements in combination with selling through intermediaries. We have exposure to commodity price risk for supplies that are used directly or indirectly in the normal course of metal and scrap recovery, such as diesel fuel, and other items. We manage our risk for these items through strategic sourcing contracts in normal quantities with our suppliers.

*Interest Rate Risk:* Our ability to issue debt or enter into other financing arrangements on acceptable terms could be adversely affected if there is a material decline in the demand for our products or in the solvency of our customers or suppliers or if there are other significantly unfavorable changes in economic conditions. Volatility in the world financial markets could increase borrowing costs or affect our ability to access the capital markets.

**MANAGEMENT AND BOARD OF DIRECTORS** 

The following table presents information concerning our executive officers and board of director nominees following the effective Spin-Off, including a five-year employment history. We are in the process of identifying other individuals who will also be our directors and executive officers following the Spin-Off, and we expect to provide additional details regarding these individuals in an amendment to this Information Statement.

**Management of The company Following the Business Combination.**

The following table sets forth certain information, as of the date of this proxy statement/prospectus, concerning the persons who are expected to serve as directors and executive officers of The company following the consummation of the Business Combination.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| ***Executive Officers*** |  |  |
| Christopher M. Dreska | 53 | Chief Executive Officer and Director |
| Kirk Taylor | 46 | Chief Financial Officer |
| ***Directors*** |  |  |
| Mark J. LaVerghetta | 45 | Chairman of the Board of Directors |
| Jack Perkowski (1) (2) | 76 | Independent Director, Chair of Audit Committee |
| Bob Galyen<sup>(2)(3)</sup> | 41 | Independent Director, Chair of Compensation Committee |
| Neal Olson<sup>(1)(3)</sup> | 37 | Independent Director, Chair of Nominating & Corp Governance Committee |

---

____________

(1) Member of the Audit Committee.

(2) Member of the Compensation Committee.

(3) Member of the Nominating & Corporate Governance Committee.

***Executive Officers & Employee Director Biographies***

**Christopher M. Dreska**, ***Chief Executive Officer and Director.*** Mr. Dreska has 30+ years working in business development, sales, marketing, accounting and finance positions through a wide variety of companies from start-ups to fortune 500. From 2015 through present, Mr. Dreska has worked as a commercial appraiser for Collateral Evaluation Services. Mr. Dreska is the co-founder of Clay Resources, LLC and has served as the firm's president since 2021. Mr. Dreska graduated from The Ohio State University with degrees in Accounting and Finance. Mr. Dreska has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K

**Kirk Taylor, *Chief Financial Officer*** Mr. Taylor, CPA, has over 20 years of financial, accounting and tax structuring experience. After working in national public accounting firms, he has been the Chief Financial Officer of American Resources Corporation (Nasdaq: AREC) since 2015, leading the public process as well as integrations of 8 different acquisitions within the infrastructure and resource space. Mr. Taylor is also a founder and President of Land Betterment Corp, a benefit corporation, focused on positive environmental and social communities facing a changing industrial landscape, since 2020. Mr. Taylor also was the President and Chief Financial Officer of American Acquisition Opportunity Inc., (Nasdaq: RMCO) a blank check company focused on sustainable resources. There are no arrangements or understandings between Mr. Taylor and any other persons pursuant to which he was selected as an officer. He has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

***Non-Employee Director Biographies***

***Mark LaVerghetta, age 50, member of the Board of Directors, Chairman.,*** Mr. LaVerghetta has served as the Chairman on the Board of Director of our Company since August 2022. After spending 20 years in capital markets, Mark has been dedicated to delivering shareholder and stakeholder value. In addition to his services with Novusterra Inc., Mr. LaVerghetta serves as Vice President of Corporate Finance and Communications of American Resources Corporation (Nasdaq: AREC) where he is a management team member focused on organic and acquisition growth opportunities and capital markets activity. Mr. LaVerghetta and is also a Co-Founder and Director of ReElement Technologies Corporation, a leading provider of high-performance refining capacity of rare earth and critical battery elements to support energy transition and national security needs. Mr. LaVerghetta also serves as Co-Founder and Chief Governance Officer of Land Betterment Corporation, an environmental solutions company fostering positive impact through upcycling former coal mining and industrial sites to create sustainable community development and job creation. Prior to these endeavors, Mr. LaVerghetta has over 15 years of financial market experience, holding various roles with several Wall Street firms. Mark is a graduate of the University of Virginia with a B.A. in economics while playing varsity lacrosse. Mr. LaVherghetta has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K

**Neal Olson**, ***Independent Director,.*** Mr. Olson is a highly accomplished CPA with years of experience in public company accounting and financial reporting. Current, Mr. Olson is the VP Corporate Controller for Impossible Foods and has been in this capacity since August 2024. Previously, Mr Olson worked for Elanco from May 2021 to August 2024 in the rolls of US Assistant Controller and Senior Director of Finance – US Controller. Previously Mr. Olson was the Manager of Financial Reporting for Steel Dynamics from November 2020 through April 2021. From August 2015 through November 2020 Mr. Olson for the accounting firm EY in progressive roles culminating as an Assurance Senior Manager. Mr. Olson has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K

**Bob Galyen, Independent Director,** Mr. Galyen is currently CEO and founder of Galyen Energy. Bob is an energy storage technology executive with experience in large corporations (ATL, CATL, Magna, Delphi, GM) and small entrepreneurial businesses (Tawas, Indy Power Systems, World Energy Labs). He previously served as CTO of CATL (Contemporary Amperex Technology Limited) the world's largest battery manufacturer. Specializing in clean technology, lithium-ion battery systems used in electric vehicles, and high-efficiency storage systems, he has held the Chairmanship of SAE International Battery Standards Steering Committee for 5 years, and is President Elect for NAATBatt International. He also serves on Senator Lugar's Advisory Board for Renewable Energy at IUPUI the Dean's Executive Advisory Council at Ball State University and the National Fire Protection Agencies Board of Advisers. Bob holds a master's degree in Chemistry and has 38-years of experience in battery technology. He was the first ever front cover individual feature story for Batteries International and has feature articles on a regular basis. Mr. Galyen has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

**John F. Perkowski, Independent Director,** *Chair of the Audit Committee*. Mr. Perkowski is an experienced, international executive. Mr. Perkowski is the is the Chairman of JFP Holdings, Ltd., a merchant banking firm that he founded in 1994 to assist Western companies to engage with China and Chinese companies to expand abroad. Mr. Perkowski also serves as the Chief Executive Officer of Energy Supply Developers. LLC, a company which he co-founded in 2021 with a group of battery professionals to develop a battery supply chain in the United States. From 1994 through 2008, Mr. Perkowski served as the Chairman and Chief Executive Officer of ASIMCO Technologies, a supplier and manufacturer of automotive components headquartered in Beijing, China. Under his leadership, ASIMCO became one of the most important players in China's automotive components industry and gained a reputation for developing local management and integrating a broad-based China operation into the global economy. From 1973 to 1993, Mr. Perkowski held various positions, including Head of Real Estate and Head of Investment Banking at PaineWebber. Mr. Perkowski is the non-executive Chairman of the Board of Directors, and Chairman of the Audit Committee, of Graphene Manufacturing Group Ltd., an Australian company that produces high purity graphene and end use applications such as graphene coatings, lubricants and an aluminum-ion battery. Mr. Perkowski serves on the Board of Advisers, Center for Emerging Markets, Northeastern University. Mr. Perkowski received a BA degree from Yale University, and an MBA from Harvard Business School.

**Corporate Governance Guidelines and Code of Business Conduct and Ethics**

Upon spin-out, the company Board will adopt Corporate Governance Guidelines that address items such as the qualifications and responsibilities of its directors and director candidates and corporate governance policies and applicable standards. In addition, the company Board will adopt a Code of Business Conduct and Ethics that applies to all of its employees, officers and directors, including its Chief Executive Officer, Chief Financial Officer and other executive and senior financial officers. The full text of company Board's Corporate Governance Guidelines and its Code of Business Conduct and Ethics will be posted on company's website, following consummation of the Business Combination. The company intends to make any legally required disclosures regarding amendments to, or waivers of, provisions of its code of ethics on its website rather than by filing a Current Report on Form 8-K.

**Websites**

The company maintains a website at www.ematerialscorp.com, which serves as its corporate website and contains information about its business. The information included on the company's website is not incorporated by reference into this proxy statement/prospectus or in any other report or document filed with the SEC, and any reference to such website is intended to be an inactive textual reference only.

**Director Independence**

It is anticipated that three directors of EMC's Board, will qualify as "independent directors", as defined under the applicable rules and regulations of the SEC listing requirements and rules of Nasdaq Stock Market. In addition, the company will be subject to the rules of the SEC and Nasdaq, relating to the membership, qualifications, and operations of the audit committee, as discussed below.

**Role of Board in Risk Oversight**

The company Board will oversee our risk management processes, which are designed to support the achievement of organizational objectives, improve long-term organizational performance, and enhance stockholder value while mitigating and managing identified risks. A fundamental part of our approach to risk management is not only understanding the most significant risks we face as a company and the necessary steps to manage those risks, but also deciding what level of risk is appropriate for The company. The company Board will play an integral role in guiding management's risk tolerance and determining an appropriate level of risk.

While the full The company Board will have overall responsibility for evaluating key business risks, its committees will monitor and report to The company Board on certain risks. Our audit committee will monitor our major financial, accounting, legal, compliance, investment, tax, cybersecurity and data privacy risks, and the steps our management has taken to identify and control these exposures, including by reviewing and setting guidelines, internal controls, and policies that govern the process by which risk assessment and management is undertaken. Our audit committee will also monitor compliance with legal, regulatory, and ethical compliance programs, and directly supervise our internal audit function. Our Compensation Committee will assess and monitor whether our compensation philosophy and practices have the potential to encourage excessive risk-taking, and plan for leadership succession. Our nominating and corporate governance committee will oversee risks associated with director independence and the composition and organization of The company Board, periodically review our Code of Conduct and Corporate Governance Guidelines and provide general oversight of our other corporate governance policies and practices.

In connection with its reviews of the operations of our business, the full The company Board will address holistically the primary risks associated with our business, as well as the key risk areas monitored by its committees, including cybersecurity and privacy risks. The company Board will appreciate the evolving nature of our business and industry and oversee Stardust Power's monitoring and mitigation of new threats and risks as they emerge.

At periodic meetings of The company Board and its committees, management will report to and seek guidance from The company Board and its committees with respect to the most significant risks that could affect our business, such as legal and compliance risks, cybersecurity and privacy risks, and financial, tax, and audit-related risks. In addition, among other matters, management will provide our audit committee periodic reports on our compliance programs and investment policy and practices.

**Committees of EMC Board**

It is anticipated that EMC's Board will maintain audit, compensation, and nominating committees. The responsibilities of these committees of the EMC's Board and their anticipated composition upon Closing is as follows.

**Audit Committee**

Upon the Closing, The company's audit committee is expected to consist of three members. It is anticipated that each of these individuals will satisfy the independence requirements of the Sarbanes-Oxley Act, Rule 10A-3 under the Exchange Act and the applicable listing standards of Nasdaq. It is anticipated that each member of The company's audit committee will satisfy the requirements for financial literacy under the applicable Nasdaq Stock Market rules. In arriving at this determination, The company Board will examine each audit committee member's scope of experience and the nature of their prior and/or current employment.

It is anticipated that at least one member of The company's audit committee will qualify as an audit committee financial expert within the meaning of SEC regulations and meets the financial sophistication requirements of Nasdaq rules. In making this determination, The company Board will consider such member's formal education and previous and current experience in financial and accounting roles. Both The company's independent registered public accounting firm and management periodically will meet privately with The company's audit committee.

The audit committee's responsibilities will include, among other things:

· appointing, compensating, retaining, evaluating, terminating and overseeing The company's independent registered public accounting firm;

· discussing with The company's independent registered public accounting firm their independence from management;

· reviewing with management and The company's independent registered public accounting firm the scope and results of their audit;

· pre-approving all audit and permissible non-audit services to be performed by The company's independent registered public accounting firm;

· overseeing the financial reporting process and discussing with management and The company's independent registered public accounting firm the interim and annual financial statements that The company files with the SEC;

· reviewing and monitoring The company's accounting principles, accounting policies, financial and accounting controls and compliance with legal and regulatory requirements; and

· establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters.

**Nominating and Corporate Governance Committee**

The company will have a nominating and corporate governance committee of the board of directors, which will consist of 3 directors, each of whom is an independent director under Nasdaq's listing standards. Mr. Dreska is the Chairperson of the nominating and corporate governance committee. The nominating and corporate governance committee is responsible for overseeing the selection of persons to be nominated to serve on our board of directors. The nominating and corporate governance committee will consider persons identified by its members, management, stockholders, investment bankers and others.

In addition to the qualifications, qualities, and skills that are necessary to meet U.S. state and federal legal, regulatory and listing requirements and the provisions of our Articles of Incorporation, Bylaws and charters of the committees of The company Board, The company Board expects to consider the following factors in considering director candidates: (i) high personal and professional ethics and integrity; (ii) proven achievement and competence in the nominee's field and the ability to exercise sound business judgment; (iii) skills that are complementary to those of The company directors; (iv) the ability to assist and support management and make significant contributions to The company's success; and (v) an understanding of the fiduciary responsibilities that are required of a member of The company Board and the commitment of time and energy necessary to diligently carry out those responsibilities.

When considering nominees, The company Board and the nominating and corporate governance committee may also take into consideration many other factors including, among other things, the current composition of The company Board, The company's current operating requirements, the candidates' character, integrity, judgment, diversity, independence, areas of expertise, professional experience, industry knowledge, experience with high-growth technology companies, public company experience, length of service, potential conflicts of interest, the candidates' other commitments, and the long-term interests of our stockholders. The company Board and nominating and corporate governance committee expect to evaluate the foregoing factors, among others, and will not assign any particular weighting or priority to any of the factors.

**Compensation Committee**

The company will have a compensation committee of the board of directors, consists of 3 directors, each of whom is an independent director under Nasdaq's listing standards. Mr. Rodriguez is the Chairperson of the compensation committee. The compensation committee's duties, which are specified in our Compensation Committee Charter, include, but are not limited to:

· reviewing and approving on an annual basis the corporate goals and objectives relevant to our Chief Executive Officer's compensation, evaluating our Chief Executive Officer's performance in light of such goals and objectives and determining and approving the remuneration (if any) of our Chief Executive Officer's based on such evaluation;

· reviewing and approving the compensation of all of our other executive officers;

· reviewing our executive compensation policies and plans;

· implementing and administering our incentive compensation equity-based remuneration plans;

· assisting management in complying with our proxy statement and annual report disclosure requirements;

· approving all special perquisites, special cash payments and other special compensation and benefit arrangements for our executive officers and employees;

· if required, producing a report on executive compensation to be included in our annual proxy statement; and

· reviewing, evaluating and recommending changes, if appropriate, to the remuneration for directors.

***Compensation Philosophy and Objectives Following the Business Combination***

Following the Closing, The company intends to develop an executive compensation program that is consistent with compensation policies and philosophies, which are designed to align compensation with The company's business objectives and the creation of stockholder value, while enabling The company to attract, motivate and retain individuals who contribute to the long-term success of The company.

**Code of Business Conduct and Ethics**

The company will adopt a new code of business conduct that applies to all of its directors, officers and employees, including its principal executive officer, principal financial officer and principal accounting officer, which will be available on The company's website upon Closing. The company's code of business conduct is a "code of ethics," as defined in Item 406(b) of Regulation S-K. The company will make any legally required disclosures regarding amendments to, or waivers of, provisions of its code of ethics on its Internet website.

**Limitation on Liability and Indemnification Matters**

IBCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their shareholders for monetary damages for breaches of directors' fiduciary duties, subject to certain exceptions. The company's Articles of Incorporation includes a provision that eliminates the personal liability of directors for monetary damages for any breach of fiduciary duty as a director to the fullest extent permitted by IBCL as the same exists or as may hereafter be amended from time to time. The effect of these provisions is to eliminate the rights of The company and its stockholders, through stockholders' derivative suits on The company's behalf, to recover monetary damages from a director for breach of fiduciary duty as a director, including breaches resulting from grossly negligent behavior. However, exculpation does not apply to any director if the director has acted in bad faith, knowingly or intentionally violated the law, authorized illegal dividends or redemptions or derived an improper benefit from his or her actions as a director.

The company's Articles of Incorporation permits, and the Bylaws obligate, The company to indemnify, to the fullest extent permitted by IBCL, any director or officer of The company who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative legislative or any other type whatsoever (a "Proceeding"), by reason of the fact that such person (or a person of whom such person is the legal representative) is or was a director or officer of The company or, while serving as a director or officer of The company, is or was serving at the request of The company as a director, officer, employee, agent or trustee of another corporation, or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against all expenses, liability and loss (including attorneys' fees, judgments, fines, ERISA excise taxes and penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in connection therewith, provided such person acted in good faith and in a manner that the person reasonably believed to be in or not opposed to the best interests of The company, and, with respect to any criminal action or Proceeding, had no reasonable cause to believe the person's conduct was unlawful. The company is not obligated to indemnify a person in connection with a Proceeding (or part thereof) initiated by such person unless the Proceeding (or part thereof) was authorized by The company Board or such indemnification is authorized by an agreement approved by The company Board. In addition, the Bylaws require The company, to the fullest extent permitted by law, to pay, in advance of the final disposition of a Proceeding, all expenses (including attorneys' fees) incurred by an officer or director of The company in defending any Proceeding; provided, however, that if the IBCL then so requires, the advancement of such expenses shall be made only upon delivery to The company of an undertaking, by or on behalf of such person, to repay such amounts if it shall ultimately be determined that the person is not entitled to be indemnified under the Bylaws or IBCL.

The company expects to enter into an indemnification agreement with each of its directors and executive officers that provides for indemnification to the maximum extent permitted by Indiana law. The company believes that these indemnification and advancement provisions and insurance are useful to attract and retain qualified directors and executive officers. The limitation of liability and indemnification provisions in The company's Articles of Incorporation and Bylaws may discourage shareholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit The company and its shareholders. In addition, your investment may be adversely affected to the extent The company pays the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors or executive officers, we have been informed that in the opinion of the SEC such indemnification is against public policy and is therefore unenforceable.

**DIRECTOR AND OFFICER COMPENSATION**

**Electrified Materials Corporation Executive Officer and Director Compensation**

None of our managers or officers has received any compensation for services rendered to date. Our two executives, namely our Chief Executive Officer and Chief Financial Officer, have employment agreements that provide for compensation to these individuals starting in 2025. Since its formation, Electrified Materials Corporation has not granted share options, other equity or equity-based awards under any long-term incentive plans to any of its directors or officers.

Our Compensation Committee periodically reviews and make recommendations to our Board regarding the form and amount of compensation for our directors. American Resources has approved an initial director compensation program for the Company that is designed to enable continued attraction and retention of highly qualified directors and to address the time, effort, expertise and accountability required of active Board membership. This program is described in further detail below.

**Annual Compensation**

In general, we believe that annual compensation for our directors should consist of both a cash component, designed to compensate members for their service on the Board and its committees, and an equity component, designed to align the interests of directors and stockholders and, by vesting over time, to create an incentive for continued service on the Board. However, until we are profitable, the annual director compensation may be limited to equity compensation, at the determination of our Board.

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| | |
|:---|:---|
| **Board of Directors' Annual Compensation** | **Board of Directors' Annual Compensation** |
| **Cash Retainer** | None for 2025. |
| **Annual Equity Grants** | Each director will receive an annual restricted stock unit or option grant with a target value of $50,000 commencing in 2026 and until the date of the Annual Meeting of Stockholders. New directors will receive a prorated award for the partial year commencing after the Annual Meeting of Stockholders. |

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Cash elements, if any, are paid in quarterly installments and prorated for partial years of service.

**Other Benefits**

Non-employee directors will also be provided with reimbursement of business travel expenses incurred as part of their work for the Board.

**COMPENSATION DISCUSSION AND ANALYSIS**

For purposes of this Compensation Discussion and Analysis and the disclosure that follows, we do not have any "Named Executive Officers" for 2023. All of our executive officers will have joined the Business after year end 2023 and, therefore, they will not have been executive officers of the Business in 2024. Our two executives, namely our Chief Executive Officer and Chief Financial Officer, have employment agreements that provide for compensation to these individuals starting in 2026. None of the tabular compensation disclosure requirements of the SEC's compensation disclosure rules are applicable in our situation. Detailed information on the compensation arrangements of our Named Executive Officers for 2025 will be provided in our first proxy statement following the Spin-Off.

Christopher M. Dreska, Chairman and Chief Executive Officer

Kirk P. Taylor, Chief Financial Officer

Messrs. Jensen, and Taylor are both employed by American Resources, starting in 2014 and 2015, respectively. Mr. Jensen will continue to serve in his role as Chief Executive Officer and Chairman of the Board of Directors of American Resources Corporation and will divide his time and responsibilities between American Resources and SpinCo using best business judgement and in dialogue with the board of directors.

The terms of Messrs. Jensen agreements are summarized in the section entitled "Employment Agreements of our Executive Officers".

**SpinCo's Executive Compensation Programs**

***Overview***

Our Compensation Committee regularly reviews each of the elements of our compensation programs. We believe that the Spin-Off will enable us to offer our key employees' compensation directly linked to the performance of our business, which we expect will enhance our ability to attract, retain and motivate qualified personnel and serve the interests of our stockholders.

***Employment Agreements of Our Executive Officers***

*Chairman and Chief Executive Officer Offer Letter*

The Company entered into an employment agreement with Christopher M. Dreska appointing Mr. Dreska as Chief Executive Officer of the Company. The agreement provides Mr. Dreska with an annual base salary of $75,000 starting on effective separation. Additionally, the base salary accrues until the company closes on $5 million of external capital at which point the entire amount will be due in cash, and that accrued compensation can be converted to common stock.

Mr. Dreska is also eligible to participate in the Company's 2025 Omnibus Incentive Plan. EMC, in its best judgement, set compensation commensurate with comparable companies in the recycling industries based within the geographic location of the Company's operations.

*Chief Financial Officer Offer Letter*

The Company entered into an employment agreement with Kirk P. Taylor appointing Mr. Taylor as Chief Financial Officer of the Company. The agreement provides Mr. Taylor with an annual base salary of $75,000 starting on effective separation. Additionally, the base salary accrues until the company closes on $5 million of external capital at which point the entire amount will be due in cash, and that accrued compensation can be converted to common stock.

Mr. Taylor is also eligible to participate in the Company's 2025 Omnibus Incentive Plan. EMC, in its best judgement, set compensation commensurate with comparable companies in the recycling industries based within the geographic location of the Company's operations.

***2025 Omnibus Incentive Plan***

Our Board has adopted, and American Resources, as our majority shareholder, has approved, a 2025 Omnibus Incentive Plan of SpinCo (or the "Equity Plan") for the benefit of certain of our current and future employees and other service providers. The following summary describes what we anticipate being the material terms of the Equity Plan.

*Purpose of the Equity Plan*. The purpose of the Equity Plan is to aid SpinCo in recruiting and retaining highly qualified employees and other service providers who are capable of assuring the future success of SpinCo. We expect that awards of stock-based compensation and opportunities for stock ownership in SpinCo will provide incentives to our employees and other service providers to exert their best efforts for the success of our business and thereby align their interests with those of our stockholders.

*Shares Available for Awards.* The Equity Plan provides for a maximum aggregate number of shares of our common stock that may be issued under all stock-based awards granted under the Equity Plan at 5,000,000. In addition, the Equity Plan limits the number of shares of common stock available for grant in the form of incentive stock options to 5,000,000.

Under the Equity Plan, SpinCo has the flexibility to grant different types of equity compensation awards, including stock options, stock appreciation rights, restricted stock, DSU's and other awards based, in whole or in part, on the value of SpinCo equity, as well as cash-based awards. The grant, vesting, exercise and settlement of awards granted under the Equity Plan may be subject to the satisfaction of time- or performance-based conditions, as determined at or after the date of grant of an award under the Equity Plan.

In the event of any change in corporate structure that affects our outstanding common stock (e.g., a cash or stock dividend, stock split, reverse stock split, spin-off, recapitalization, merger, reorganization, etc.), our Compensation Committee shall make adjustments that it deems equitable or appropriate, in its sole discretion, including adjustments to the share limits described above, the number and type of shares subject to outstanding awards, or the purchase or exercise price of outstanding awards. In the case of any unusual or nonrecurring event (including events described in the preceding sentence) affecting the Company or changes in applicable laws, regulations, or accounting principles, our Compensation Committee may make adjustments to outstanding awards in order to prevent dilution or enlargement of the benefits intended to be provided under the Equity Plan.

Shares that are subject to awards that are paid in cash, terminate, lapse or are canceled or forfeited would be available again for grant under the Equity Plan and would not be counted for purposes of the limits above. Shares that are reacquired by SpinCo with cash tendered in payment of the exercise price of an award and shares that are tendered or withheld in payment of all or part of the exercise price or tax withholding amount relating to an award will not be added back to the number of shares authorized under the Equity Plan. In addition, if stock appreciation rights are settled in shares upon exercise, the total number of shares actually issued upon exercise rather than the number of shares subject to the award would be counted against the number of shares authorized under the Equity Plan.

*Eligibility*. Employees and other service providers of SpinCo, or its affiliates, are eligible to receive awards under the Equity Plan. Our directors will be eligible to participate in the 2025 Omnibus Incentive Plan for SpinCo.

*Administration*. It is expected that our Compensation Committee would have the authority to administer the Equity Plan, including the authority to select the persons who receive awards, determine the number of shares subject to the awards and establish the terms and conditions of the awards, consistent with the terms of the Equity Plan. Subject to the expected provisions of the Equity Plan, our Compensation Committee may specify the circumstances under which the exercisability or vesting of awards may be accelerated or whether awards or amounts payable under awards may be deferred. Our Compensation Committee may waive or amend the terms of an award, consistent with the terms of the Equity Plan, but may not reprice a stock option or stock appreciation right, whether through amendment, cancelation and replacement, or exchange for cash or any other awards. Our Compensation Committee would have the authority to interpret the Equity Plan and establish rules for the administration of the Equity Plan. It is expected that the Equity Plan will provide that our Compensation Committee may delegate its powers and duties under the Equity Plan to one or more directors or other individuals as the committee deems to be advisable, except that only our Compensation Committee or our Board would have authority to grant and administer awards to executive officers.

The Board may also exercise the powers of our Compensation Committee with respect to the Equity Plan and awards granted thereunder at any time.

*Tax Consequences of Awards*. The following is a brief summary of the principal United States federal income tax consequences of awards and transactions under the Equity Plan for the employees and other service providers selected to participate in the Equity Plan (the "Participants") and the Company. This summary is not intended to be exhaustive and, among other things, does not describe local, state or foreign tax consequences.

*Options and Stock Appreciation Rights*. A Participant will not recognize any income at the time a stock option or stock appreciation right is granted, nor will the Company be entitled to a deduction at that time. When a stock option is exercised, the Participant will recognize ordinary income in an amount equal to the excess of the fair market value of the shares received as of the date of exercise over the exercise price of the option. When a stock appreciation right is exercised, the Participant will recognize ordinary income in an amount equal to the cash received or, if the stock appreciation right is settled in shares, the shares received as of the date of exercise. The Company generally will be entitled to a corresponding tax deduction in the same time period and amount as the Participant recognizes income.

*Restricted Stock and DSUs*. A Participant will not recognize any income at the time of grant of a restricted stock unit or share of restricted stock (whether subject to time-based vesting or performance-based vesting), and the Company will not be entitled to a deduction at that time. The Participant will recognize ordinary income in an amount equal to the fair market value of the shares received or, if the restricted stock unit is paid in cash, the amount payable, upon settlement of a restricted stock unit. In the year in which shares of restricted stock are no longer subject to a substantial risk of forfeiture (i.e., in the year that the shares vest), the Participant will recognize ordinary income in an amount equal to the excess of the fair market value of the shares on the date of vesting over the amount, if any, the Participant paid for the shares. Under certain circumstances and if permitted by an individual award, a Participant may elect (within 30 days after being granted restricted stock) to recognize ordinary income in the year of receipt instead of the year of vesting. If such an election is made, the amount of income recognized by the Participant will be equal to the excess of the fair market value of the shares on the date of receipt over the amount, if any, the Participant paid for the shares. The Company generally will be entitled to a corresponding tax deduction in the same time period and amount as the Participant recognizes income.

*Other Types of Awards*. If other awards are granted under the Equity Plan, the tax consequences may differ from those described above for stock options, stock appreciation rights, restricted stock and DSUs. As a general matter, the Company typically would be entitled to a tax deduction in respect of any such compensatory awards in the same time period and amount as the Participant recognizes income in respect of such awards.

*Withholding of Taxes*. The Company has the right to require, prior to the issuance or delivery of shares in settlement of any award, the Participant to pay any taxes required by law.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

As of the date of this Information Statement, American Resources beneficially owns a majority of the outstanding shares of our common stock. After the Spin-Off, its anticipated American Resources will own less than [•]% of our common stock. The following table provides information regarding the anticipated beneficial ownership of our common stock at the time of the Share Distribution by:

· each of our stockholders whom we believe (based on the assumptions described below) will beneficially own more than 5% of our outstanding common stock;

· each of our directors;

· each of our named executive officers; and

· all of our directors and executive officers as a group.

Except as otherwise noted below, we based the share amounts on each person's beneficial ownership of American Resources common stock on [•], 2025, giving effect to a Share Distribution ratio of [•] shares of American Resources Class A common stock for each share of Company common stock.

Except as otherwise noted in the footnotes below, each person or entity identified in the table has sole voting and investment power with respect to the securities beneficially owned.

Immediately following the Spin-Off, we estimate that [•] shares of our common stock will be issued and outstanding, based on the approximately [•] shares of American Resources common stock outstanding on [•], 2025. The actual number of shares of our common stock that will be outstanding following the completion of the Spin-Off will be determined on [•], 2025. The number of shares of common stock beneficially owned by each stockholder, director or executive officer is determined according to the rules of the SEC and the information is not necessarily indicative of beneficial ownership for any other purpose. Except as otherwise noted in the footnotes below, each holder identified below has sole voting and investment power with respect to the shares of our common stock beneficially owned. The mailing address for each of the directors and executive officers is c/o: Electrified Materials Corporation, 12115 Visionary Way, Fishers, IN 46038.

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| | | |
|:---|:---|:---|
| **Directors and Named Executive Officers** | **Amount and Nature of Beneficial Ownership of Common Shares** | **Percentage of**<br> **Class** |
| Christopher M. Dreska, Chief Executive Officer | [•] | \*% |
| Kirk P. Taylor, Chief Financial Officer, Director | [•] | \*% |
| Neal Olson, Independent Director | -0- | \*% |
| Bob Galyan, Independent Director | -0- | \*% |
| Mark L. LaVerghetta, Chairman of the Board | -0- | \*% |
| Directors and Executive Officers as a Group | [•] | [•]% |

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| | | |
|:---|:---|:---|
| **Principal Stockholders** | **Amount and Nature of**<br> **Beneficial Ownership** | **Percentage of**<br> **Class** |
| American Resources Corporation<sup>(1)</sup> | [•] | [•]% |
| Golden Properties Ltd.<sup>(2)</sup> | [•] | [•]% |
| White River Ventures LLC<sup>(3)</sup> | [•] | [•]% |
| Midwest General Investment Company LLC<sup>(4)</sup> | [•] | [•]% |
| Principal Stockholders as a Group | [•] | [•]% |

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\* Represents beneficial ownership of less than one percent of the outstanding common stock.

(1) Shareholder address is 12115 Visionary Way, Suite 174, Fishers, Indiana 46038

(2) Shareholder address is #500, 1177 West Hastings Street, Vancouver, BC, V6E 2K3, Canada. Alexander Lau, who is a principal of Golden Properties and a beneficial owner through Golden Properties and a beneficial owner through TAU Holdings LTD.

(3) Shareholder address is 8500 East 116 Street, #264, Fishers, Indiana 46038.

Represents shares gifted in an exempt transaction under Rule 16b-5 by Mark Jensen for no consideration to White River Ventures LLC, which is wholly owned by a family trust of which certain members of the Jensen family are beneficiaries. Thomas Sauve serves as sole manager of this entity.

(4) Shareholder address is 12115 Visionary Way, Suite 174, Fishers, Indiana 46038.

Represents shares gifted in an exempt transaction under Rule 16b-5 by Thomas Sauve for no consideration to Midwest General Investment Company LLC, which is wholly owned by a family trust of which certain members of the Sauve family. Mark Jensen serves as sole manager of this entity.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

***American Resources Corporation***

<u>Mutual Services and Transition Agreement</u>

On December 10, 2024, but with an effective date of January 1, 2025, the Company and AREC entered into a mutual services and transition agreement. The Mutual Services and Transition Agreement between AREC and the Company up to and after completion of the Spin-Off provides a non-exclusive list of services that might be provided including administrative support, accounting services, IT, legal, clerical, warehouse management services, and any other services that the Company may reasonably request from time to time, which allows either party to accept or reject services at each AREC's and the Company's sole discretion.

Material Terms:

· The term of the agreement shall be for an initial term of one year with automatic yearly renewal unless terminated in writing 30 days before the renewal date.

· Payment and invoicing under the agreement should be performed on a quarterly basis with payment due within 30 days of delivered invoice. Services under this agreement will be billed at cost with no markup.

· To the extent reasonably possibly by the Parties, SpinCo agrees to promptly and diligently, but by no later than by the end of the Initial Term, transition all of the Services that are shared services under this Agreement to the contractual obligation or employment of SpinCo.

· Neither Party may assign or transfer, by operation of law or otherwise, any of its rights or obligations under this Agreement to any third party without the prior written consent of the other party, except pursuant to an assignment of its interest hereunder to any affiliate. Any transfer of all or substantially all of a Party's business or assets, whether by merger, consolidation, sale of assets, sale of stock or otherwise, without seeking the prior written consent of the other Party, will be null and void.

· All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Indiana, without giving effect to any choice of law provisions thereof.

· No amendment or modification of this Agreement shall be binding unless made by a written instrument of equal formality with this Agreement and signed by both parties.

*ReElement Technologies Corporation*

<u>Supply Agreement</u>

On January 1, 2024, the Company and ReElement entered into a supply agreement. The Supply Agreement governs the relationship between ReElement and the Company up to and after completion of the Spin-Off.

Material Terms:

· The initial term is five years with automatic twelve month extensions unless notice of cancelation has been provided 90 days prior to renewal.

· The agreement calls for all product sold under the agreement to be at the Company's operating cost plus 20%.

· Payments under the agreement shall be net 30 days from the date of the invoice.

· Buyer shall have the right of first refusal to purchase any and all Product produced by Seller for the price identified in Section 2(b). On the first day of each calendar month during the Term, Seller will provide Buyer the tonnage and specifications of Product set forth in Exhibit A that is available to sell to the Buyer. Buyer shall have up to ten (10) days to provide Seller with written notice of any quantity of Product the Buyer will buy for that calendar month, and Seller agrees to sell said Product to Buyer. For purposes of this Agreement, all references to "ton" shall mean a metric tonne equivalent to 2,205 pounds.

· All of the Products sold by Seller to Buyer shall be sold FOB Incoterms 2020 the Seller's facilities located in Noblesville, Indiana or Marion, Indiana, or at a facility of the Seller at mutual agreement between the Buyer and the Seller (each, a "Facility"). Seller will arrange freight transportation, and all appropriate risk insurance coverage for all shipments to the Facility.

· All Product sold hereunder to Buyer shall be produced in accordance with and conform to the Specifications, which Specifications may not be altered without the mutual agreement in writing of Seller and Buyer. Seller shall notify Buyer promptly after Seller becomes aware of any failure of the Product to meet the Specifications in any material respect.

· Neither party may assign any of its rights hereunder, or effect an assumption of its obligations hereunder, without the prior written consent of the other party hereto.

o This Agreement shall be construed and enforced in accordance with the internal laws of the State of Indiana, excluding the principles of conflicts of law thereof.

*Land Resources & Royalties LLC*

<u>Lease Agreements</u>

On January 1, 2024, the Company and Land Resources & Royalties LLC, a professional leasing firm that is an entity wholly owned by Wabash Enterprises LLC, an entity owned partially by management of the Company, Mark C Jensen and Kirk P. Taylor, entered into a series of leases that provided the Company with office space in Hazard, Kentucky, facility space in Marion, Indiana, and outdoor storage and operating space in Noblesville, Indiana. The leases provide for regular monthly rent payments to Land Resources & Royalties LLC by the Company.

***Reorganization***

The Mutual Services and Transition Agreement describes certain actions related to our separation from American Resources that will occur prior to the Distribution such as the formation of our subsidiaries and certain other internal restructuring actions to be taken by us and American Resources Corporation, including the contribution by American Resources Corporation to us of the assets and liabilities that comprise our business.

***Related party Arrangements***

All agreements, arrangements, commitments and understandings, including most related accounts payable or accounts receivable, between us, on the one hand, and American Resources Corporation, on the other hand, will terminate effective as of the Share Distribution Date, except specified agreements and arrangements that are intended to survive the Share Distribution.

***Credit Support***

We will agree to use reasonable best efforts to arrange, prior to the Share Distribution, for the replacement of all guarantees, covenants, indemnities, surety bonds, letters of credit or similar assurances of credit support, other than certain specified credit support instruments, currently provided by or through American Resources or any of its affiliates for the benefit of us or any of our affiliates.

***Representations and Warranties***

In general, neither we nor American Resources Corporation will make any representations or warranties regarding any assets or liabilities transferred or assumed, any consents or approvals that may be required in connection with these transfers or assumptions, the value or freedom from any lien or other security interest of any assets transferred, the absence of any defenses relating to any claim of either party or the legal sufficiency of any conveyance documents. Except as expressly set forth in the Mutual Services and Transition Agreement, all assets will be transferred on an "as-is", "where-is" basis.

***Further Assurances***

The parties will use reasonable best efforts to effect any transfers contemplated by the Mutual Services and Transition Agreement that have not been consummated prior to the Share Distribution as promptly as practicable following the Share Distribution Date. In addition, the parties will use reasonable best efforts to effect any transfer or re-transfer of any asset or liability that was improperly transferred or retained as promptly as practicable following the Share Distribution.

***The Distribution***

The Mutual Services and Transition Agreement governs American Resources' and our respective rights and obligations regarding the proposed Share Distribution. Prior to the Share Distribution, American Resources Corporation will deliver all the issued and outstanding shares of our common stock to the distribution agent. Following the Share Distribution Date, the distribution agent will electronically deliver the shares of our common stock to American Resources Corporation stockholders based on the distribution ratio. The American Resources Corporation Board may, in its sole and absolute discretion, determine the Record Date, the Share Distribution Date and the terms of the Spin-Off. In addition, American Resources may, at any time until the Share Distribution, decide to abandon the Share Distribution or modify or change the terms of the Share Distribution.

***Conditions***

The Mutual Services and Transition Agreement also provides that several conditions must be satisfied or, to the extent permitted by law, waived by American Resources Corporation, in its sole and absolute discretion, before the Share Distribution can occur. For further information about these conditions, see "The Spin-Off-Conditions to the Spin-Off".

***Exchange of Information***

We and American Resources Corporation will agree to provide each other with information reasonably necessary to comply with reporting, disclosure, filing or other requirements of any national securities exchange or governmental authority having appropriate jurisdiction, for use in judicial, regulatory, administrative and other proceedings and to satisfy audit, accounting, litigation and other similar requirements. We and American Resources Corporation will also agree to use reasonable best efforts to retain such information in accordance with our respective record retention policies as in effect on the date of the Mutual Services and Transition Agreement or for such longer period as required by law. Each party will also agree to use its reasonable best efforts to assist the other with its financial reporting and audit obligations.

***Release of Claims***

We and American Resources Corporation will each agree to release the other and its affiliates, successors and assigns, and all persons that prior to the Share Distribution have been the other's stockholders, directors, officers, members, agents and employees, and their respective heirs, executors, administrators, successors and assigns, from any claims against any such other party that arise out of or relate to events, circumstances or actions occurring or failing to occur or any conditions existing at or prior to the time of the Share Distribution. These releases will be subject to exceptions set forth in the Mutual Services and Transition Agreement.

***Indemnification***

We and American Resources Corporation will each agree to indemnify the other and each of the other's current, former and future directors, officers and employees, and each of the heirs, administrators, executors, successors and assigns of any of them, against certain liabilities incurred in connection with the Spin-Off and our and American Resources Corporation's respective businesses. The amount of either American Resources Corporation's or our indemnification obligations will be reduced by any insurance proceeds or amounts recovered from third parties that the party being indemnified receives in respect of the related liability. The Mutual Services and Transition Agreement also specifies procedures regarding claims subject to indemnification.

***Other Arrangements***

Prior to the Spin-Off, we have had various other arrangements with American Resources, including arrangements whereby American Resources has provided us with finance, human resources, legal, information technology, general insurance, risk management and other corporate functions as described in "Management's Discussion and Analysis of Financial Condition and Results of Operations-Basis of Presentation". As described in more detail in "-Mutual Services and Transition Agreement" above, these arrangements, other than those contemplated pursuant to the Mutual Services and Transition Agreement, will generally be terminated in connection with the Spin-Off.

In addition, we intend to enter into certain other arm's-length arrangements regarding certain real estate matters, leases, and, in some cases, associated services. We also have agreements in place, or may have agreements in place in the future, with affiliated companies and/or companies owned and controlled by certain members of our management, and conflicts of interest may arise in the future as a result. See "Risk Factors - Risks Relating to Our Business".

We sublease corporate office space in Hazard, Kentucky and post Spin-Off, we will pay $263 per month in rent for the office space. The Company currently leases an operating location at 1801 S. 8<sup>th</sup> Street Noblesville Indiana 46060 for $20,000 per month and 3611 South Adams Street, Suite C, Marion, Indiana 46953 for $20,058 per month. Both of these locations are used, or will be used, for material storage as well as pre-processing work.

**Policy and Procedures Governing Related Party Transactions**

Prior to the completion of the Spin-Off, our Board will adopt a written policy regarding the review, approval and ratification of transactions with related persons. We anticipate that this policy will provide that our Nominating and Governance Committee review each of SpinCo's transactions involving an amount exceeding $120,000 and in which any "related person" had, has or will have a direct or indirect material interest. In general, "related persons" are our directors, director nominees, executive officers and stockholders beneficially owning more than 5% of our outstanding common stock and immediate family members or certain affiliated entities of any of the foregoing persons. We expect that our Nominating and Governance Committee will approve or ratify only those transactions that are fair and reasonable to SpinCo and in our and our stockholders' best interests.

**DESCRIPTION OF OUR CAPITAL STOCK**

**General**

American Resources Corporation, as our majority stockholder, has previously approved and adopted our Articles of Incorporation, and our Board has approved and adopted our By-Laws. The following summarizes information concerning our capital stock, including material provisions of our Articles of Incorporation, our By-Laws and certain provisions of Indiana law. You are encouraged to read the forms of our Articles of Incorporation and our By-Laws, which are filed as exhibits to our Registration Statement on Form 10, of which this Information Statement is a part, for greater detail with respect to these provisions.

**Distribution of Securities**

During the past three years, we have not sold any securities, including sales of reacquired securities, new issues, securities issued in exchange for property, services or other securities, and new securities resulting from the modification of outstanding securities that were not registered under the Securities Act.

**Authorized Capital Stock**

Our authorized capital stock consists of 1,000,000,000 shares of common stock, $0.0001 par value, and 10,000,000 shares of "blank check" preferred stock, none of which have been issued.

**Common Stock**

***Shares Outstanding***

Immediately following the Spin-Off, we estimate that approximately [•] shares of our common stock will be issued and outstanding, based on approximately [•] shares of American Resources common stock outstanding as of [•], 2025. The actual number of shares of our common stock outstanding immediately following the Spin-Off will depend on the actual number of shares of American Resources common stock outstanding on the Record Date and will reflect any issuance of new shares or exercise of outstanding options, or any equity rights pursuant to any warrants.

***Dividends***

Holders of shares of our common stock will be entitled to receive dividends when, and if declared by our Board at its discretion out of funds legally available for that purpose, subject to the preferential rights of any preferred stock that may be outstanding. The timing, declaration, amount and payment of future dividends will depend on our financial condition, earnings, capital requirements and debt service obligations, as well as legal requirements, regulatory constraints, industry practice and other factors that our Board deems relevant. Our Board will make all decisions regarding our payment of dividends from time to time in accordance with applicable law. See "Dividend Policy".

***Voting Rights***

The holders of our common stock will be entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders.

***Other Rights***

The holders of our common stock will be entitled to share ratably in our assets legally available for distribution to our stockholders.

***Fully Paid***

The issued and outstanding shares of our common stock are fully paid and non-assessable. Any additional shares of common stock that we may issue in the future will also be fully paid and non-assessable.

The holders of our common stock will not have preemptive rights or preferential rights to subscribe for shares of our capital stock or rights to redeem or convert their shares of common stock.

**Preferred Stock**

***Shares Outstanding***

10,000,000 shares of our "blank check" preferred stock will be authorized and no preferred shares are issued or outstanding.

***Dividends, Voting and Other Rights***

The preferred stock may be issued from time to time in one or more series, as determined by the Board of Directors. The Board of Directors is expressly authorized to provide for the issue, in one or more series, of all or any of the remaining shares of the Preferred Stock and to establish for each such series the number of its shares, the voting powers, full or limited, of the shares of such series, or that such shares shall have no voting powers, and the designations, preferences and relative, participating, optional or other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof as shall be stated and expressed in the resolution or resolutions adopted by the Board of Directors providing for the issue of such series.

***Limitation on Liability of Directors and Indemnification of Directors and Officers***

Indiana Business Corporation Law (or "IBCL") authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for certain breaches of directors' fiduciary duties as directors, and our Articles of Incorporation will include such an exculpation provision. Our By-Laws and Articles of Incorporation include provisions that require us to indemnify, to the fullest extent allowable under IBCL, the personal liability of directors and officers for monetary damages for actions taken as a director, officer or agent of SpinCo, or for serving at SpinCo's request as a director, officer or agent at another corporation or enterprise, as the case may be. Our By-Laws and Articles of Incorporation also provide that we must indemnify and advance reasonable expenses to our directors and officers subject to our receipt of an undertaking from the indemnified party as may be required under IBCL. Our By-Laws will expressly authorize us to carry directors' and officers' insurance to protect SpinCo, its directors, officers and agents for certain liabilities.

The limitation of liability and indemnification provisions that are included in our By-Laws and Articles of Incorporation may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against our directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. However, these provisions will not limit or eliminate our rights, or those of any stockholder, to seek non-monetary relief such as injunction or rescission in the event of a breach of a director's duty of care. The provisions will not alter the liability of directors under the federal securities laws. In addition, your investment may be adversely affected to the extent that in a class action, derivative, or direct suit, we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. There is currently no pending material litigation or proceeding against any of our directors, officers or employees for which indemnification is sought.

***Transfer Agent and Registrar***

The transfer agent and registrar for our common stock will be Vstock Transfer, LLC located at 18 Lafayette Pl, Woodmere, NY 11598, phone (212) 828-8436 and website https://www.vstocktransfer.com/.

**Listing**

We intend to apply to list our common stock on a national exchange including New York Stock Exchange, OTC Markets or the NASDAQ Capital Market, under the ticker symbol "[•]".

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed a Registration Statement on Form 10 with the SEC with respect to the shares of our common stock that American Resources' stockholders will receive in the Share Distribution as contemplated by this Information Statement. This Information Statement is a part of, and does not contain all the information set forth in, the Registration Statement and the other exhibits and schedules to the Registration Statement. For further information with respect to us and our common stock, please refer to the Registration Statement, including its other exhibits and schedules. Statements we make in this Information Statement relating to any contract or other document are not necessarily complete, and you should refer to the exhibits attached to the Registration Statement for copies of the actual contract or document. You may review a copy of the Registration Statement, including its exhibits and schedules, at the SEC's public reference room, located at 100 F Street, N.E., Washington, D.C. 20549, as well as on the Internet website maintained by the SEC at www.sec.gov. Please call the SEC at 1-800-SEC-0330 for more information on the public reference room. Information contained on any website we refer to in this Information Statement does not and will not constitute a part of this Information Statement or the Registration Statement on Form 10 of which this Information Statement is a part, and such references are intended to be inactive textual references only.

As a result of the Spin-Off, we will become subject to the information and reporting requirements of the Exchange Act and, in accordance with the Exchange Act, we will file periodic reports, proxy statements and other information with the SEC.

You may request a copy of any of our filings with the SEC at no cost by writing us at the following address:

Investor Relations

Electrified Materials Corporation

PO Box 606, Fishers, Indiana 46038

Phone: (317) 855-9926

We also maintain a website at https://www.ematerialscorp.com, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Our investor relations website provides notifications of news or announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs.

We intend to furnish holders of our common stock with annual reports containing financial statements prepared in accordance with U.S. GAAP and audited and reported on by an independent registered public accounting firm.

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| Report of Independent Registered Public Accounting Firm | F-2 |
| Carved-Out Balance Sheets | F-3 |
| Carved-Out Statement of Operations | F-4 |
| Parent's Net Equity (Deficit)  | F-5 |
| Carved-Out Statements of Cash Flows  | F-6 |
| Notes to the Financial Statements | F-7 |

---

**<u>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

To the Shareholders of

American Resources Corporation

**Opinion on the Financial Statements**

We have audited the accompanying carved-out balance sheets of Electrified Materials Corporation, a wholly-owned subsidiary of American Resources Corporation (the "Company") as of December 31, 2024 and 2023 and the related carved-out statements of operations, parent's net equity (deficit) and cash flows for the years then ended (collectively referred to as the "financial statements"). In our opinion, the carved-out financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

**Substantial Doubt about the Company's Ability to Continue as a Going Concern** 

The accompanying carved-out financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has limited revenues and has incurred losses from operations that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in the notes to the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Emphasis of Matter**

As discussed in Note 2, the financial statements have been prepared on a "carve-out" basis from the consolidated financial statements of American Resources Corporation to reflect the assets, liabilities, revenues and expenses of Electrified Materials Corporation as well as allocations deemed reasonable by management to present the results of operations, financial position and cash flows of Electrified Materials Corporation on a standalone basis and may not reflect Electrified Materials Corporation results of operations, financial position and cash flows had the Company operated as a standalone company during the periods presented. Our opinion is not modified with respect to this matter.

We have served as the Company's auditor since 2024.

/s/ GBQ Partners, LLC

Columbus, Ohio

October 10, 2025

**Electrified Materials Corporation** 

**Carved-Out Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash  | $1699 | $- |
| &nbsp;&nbsp;&nbsp; Due from parent  | 314130 | 284002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets  | 315829 | 284002 |
| &nbsp;&nbsp;&nbsp; Operating - right-of-use assets, net - related party | 1657026 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | 1972855 | 284002 |
| **Liabilities and (Deficit) Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Accrued expenses | $273429 | $115496 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, current - related party | 714456 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities  | 987885 | 115496 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, non-current - related party | 1315989 | - |
| Total liabilities | 2303874 | 115496 |
| (Deficit) Equity: |  |  |
| &nbsp;&nbsp;&nbsp; Parent company investment | (331019) | 168506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total (deficit) equity | (331019) | 168506 |
| Total liabilities and (deficit) equity | $1972855 | $284002 |

---

The accompanying footnotes are an integral part of the carved-out financial statements.

**Electrified Materials Corporation** 

**Carved-Out Statements of Operations**

---

| | | |
|:---|:---|:---|
|  | **For the years ended** <br> **December 31,** | **For the years ended** <br> **December 31,** |
|  | **2024** | **2023** |
| **Revenue** |  |  |
| Metal recovery and sales | $31827 | $62828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 31827 | 62828 |
| **Cost of Sales** |  |  |
| Cost of sales | 31705 | 35380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cost of sales | 31705 | 35380 |
| Gross profit | $122 | $27448 |
| **Operating expenses** |  |  |
| General and administrative expenses | 499647 | 8440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses  | 499647 | 8440 |
| Net (loss) income | $(449525) | $19008 |

---

The accompanying footnotes are an integral part of the carved-out financial statements.

**Electrified Materials Corporation** 

**Carved-Out Statements of Parent's Net Equity (Deficit)**

---

| | |
|:---|:---|
|  | **Total**<br>**Equity (Deficit)** |
| Parent's net investment as of December 31, 2022 | $149498 |
| Net income | 19008 |
| Parent's net investment as of December 31, 2023 | 168506 |
| Net loss | (449525) |
| Parent's net investment as of December 31, 2024 | $(331019) |

---

The accompanying footnotes are an integral part of the carved-out financial statements.

**Electrified Materials Corporation** 

**Carved-Out Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** <br> **December 31,** | **For the Years Ended** <br> **December 31,** |
|  | **2024** | **2023** |
| **Cash Flows from Operating activities:** |  |  |
| Net (loss) income | $(499525) | $19008 |
| **Change in operating assets and liabilities:** |  |  |
| Due from parent | (30128) | (62828) |
| Accrued expenses  | 157933 |  |
| Operating lease assets and liabilities, net – related party | 373419 | 43820 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash provided by operating activities | 1699 | - |
| Increase in cash | 1699 |  |
| Cash and cash equivalents, beginning of period | - | - |
| Cash and cash equivalents, end of period | $1699 | $- |
| SUPPLEMENTAL CASH FLOW INFORMATION |  |  |
| Acquisition of assets through operating leases - related party | $1912438 | $- |

---

The accompanying footnotes are an integral part of the carved-out financial statements.

**NOTE 1: DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION**

<u>Description of Business</u>

Electrified Materials Corporation (the "Company," "EMC," "we," "us," or "our") is an Indiana Corporation that was formed on June 29, 2020. The Company is a wholly-owned subsidiary of American Resources Corporation ("American Resources", or "AREC", or "Parent").

We are a recycling company focused on recycling metals and alloys from prior coal mining and industrial sites so that it can be upcycled for a new purpose. We also focus on aggregation and disassembly of end of life magnet material.

EMC will aggregate end-of-life products utilizing a nationwide footprint and sourcing locations. Processing of the selected materials will be concentrated for ReElement Technologies Corporation, a subsidiary of AREC operating in Indiana, for further refinement.

<u>Basis of Presentation</u> 

The accompanying carved-out financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

**NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*<u>Revenue Recognition</u>*

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. The primary source of revenue is from the sale of scrap metal generated by the parent company's mining operations. Scrap metal is collected by the Company and sold on a regular basis.

Revenue is recognized when control of the scrap metal transfers to the buyer, typically at the point of sale. Since sales occur regularly and payment is received promptly, no formal contracts or extended payment terms are in place. Revenue is measured based on the agreed sale price at the time of each transaction.

*<u>Allowance for Credit Losses</u>*

The Company accounts for expected credit losses on financial assets measured at amortized cost in accordance with Accounting Standards Codification (ASC) 326, *Financial Instruments – Credit Losses*. As of December 31, 2024 and December 31, 2023, the Company's only receivable was the Due from Parent balance.

Management has evaluated the collectability of this receivable and concluded that no allowance for credit losses is required at either balance sheet date. The application of ASC 326 was effective for the balance sheet dated December 31, 2024 and 2023, and its impact is immaterial to the carved-out financial statements.

*<u>Leases</u>*

The Company reviews all arrangements for potential leases, and at inception, determines whether a lease is an operating or finance lease. Lease assets and liabilities, which generally represent the present value of future minimum lease payments over the term of the lease, are recognized as of the commencement date. Leases with an initial lease term of twelve months or less are classified as short-term leases and are not recognized in the balance sheets unless the lease contains a purchase option that is reasonably certain to be exercised.

Lease terms, discount rate, variable lease costs and future minimum lease payment determinations require the use of judgment and are based on the facts and circumstances related to the specific lease. Lease terms are generally based on their initial non-cancelable terms, unless there is a renewal option that is reasonably certain to be exercised. Various factors, including economic incentives, intent, past history and business needs are considered to determine if a renewal option is reasonably certain to be exercised. The implicit rate in a lease agreement is used when it can be determined to value the lease obligation. Otherwise, the Company's incremental borrowing rate, which is based on information available as of the lease commencement date, including applicable lease terms and the current economic environment, is used to determine the value of the lease obligation.

*<u>Going Concern</u>*

As of December 31, 2024 and 2023, the Company has no cash for both periods, and a related party receivables balance of $314,130 and $284,002, respectively. The Company has limited revenue and has incurred operating losses. These conditions raise substantial doubt about the Company's ability to continue as a going concern for at least one year from the date of the issuance of these financial statements. We plan to generate profits by selling preprocessed materials to ReElement Technologies Corporation for further refinement as well as selling other aggregated and collected materials to unrelated customers.

However, we will need to raise the funds required to do so through loans from our sole member, sale of our securities or through loans from third parties. We do not have any commitments or arrangements from any person to provide us with any additional capital. If additional financing is not available when needed, we may need to cease operations. We may not be successful in raising the capital needed to expand or develop operations. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. The accompanying financial statements have been prepared assuming the Company will continue as a going concern; no adjustments to the financial statements have been made to account for this uncertainty.

<u>Carve-Out Assumptions and Allocations</u>

The historical business activities of the Company have been transacted in other parent company subsidiaries, primarily the parent company's mining business. The Company's business activities, transacted and accounted for in the parent company's other subsidiaries have been presented in the accompanying historical carved-out financial statements of Electrified Materials Corporation to reflect the historical operations of the parent company's collective subsidiaries that will be included in SpinCo on a post transaction basis. In addition, the carved-out financial statements include allocations of administrative expenses from the parent company that reflect those administrative costs expected to be incurred by SpinCo. The allocations are based on amounts applicable to the Company's operations relative to amounts applicable to the parent's company or its other subsidiaries. The accompanying historical carved-out balance sheets of the Company reflect receivables from parent company subsidiaries for revenues of those business activities earned by those other subsidiaries that will be contributed to SpinCo and cash settled post transaction. Accrued expenses included in the carved-out balance sheets reflect the payable by the Company to the parent company for direct Company expenses paid by other parent company's subsidiaries and allocated expenses that SpinCo will assume in the transaction and will also cash settle post transaction.

The Company's financial position, results of operations, and cash flows may not be indicative of our results had we been a separate standalone entity during the periods presented, nor are the results stated herein indicative of what our financial position, results of operations, and cash flows may be in the future. Actual costs that would have been incurred if the Company had operated as a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas.

<u>Use of Estimates</u>

Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Actual results could vary from those estimates.

<u>Related Party Policies</u>

In accordance with FASB ASC 850, related parties are defined as either an executive, director or nominee, greater than 10% beneficial owner, or an immediate family member of any of the proceedings. Transactions with related parties are reviewed and approved by the directors of the Company, as per internal policies.

<u>Organizational Costs</u>

In accordance with FASB ASC 720 – *Other Expense*, organizational costs, including accounting fees, legal fees, and costs of incorporation, are expensed as incurred.

<u>Collaboration Arrangements</u>

The Company analyzes its collaboration arrangements to assess whether they are within the scope of FASB ASC 808, Collaborative Arrangements, ("ASC 808"), to determine whether such arrangements involve joint operating activities performed by the parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in responsibilities of all parties in the arrangement. ASC 808 does not provide guidance on the recognition of consideration exchanged or accounting for the obligations that may arise between parties. The Company concluded that ASC Topic 730, Research and Development, should be applied by analogy to payments between parties during the development activities of its collaboration arrangements such as with ReElement Technologies Corp.

<u>Income Taxes</u>

Historically, the Company's operations have been included in the AREC federal consolidated tax return and certain state returns. For the purposes of these financial statements, our income tax provisions were computed as if we filed separate tax returns (i.e., as if we had not consolidated our tax return with AREC).

The Company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will not be realized. A 100 % valuation allowance has been established on deferred tax assets at December 31, 2024 and 2023, due to the uncertainty of our ability to realize future taxable income.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company's policy is to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the financial statements.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.

The Company accounts for income taxes with the recognition of estimated income taxes payable or refundable on income tax returns for the current period and for the estimated future tax effect attributable to temporary differences and carryforwards. Measurement of deferred income items is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized in the immediate future.

The Company expects to file U.S. federal and various state income tax returns. The Company was formed in 2020 and files as part of its parent's corporate tax returns. All tax periods since inception remain open to examination by the taxing jurisdictions to which the Company is subject.

**Recent Accounting Pronouncements**

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses. The guidance in ASU 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory; employee compensation; and depreciation, amortization and depletion expenses for each caption on the statement of operations where such expenses are included. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements. The Company is currently evaluating the provisions of this guidance and assessing the potential impact on the Company's financial statement disclosures.

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. This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the U.S. and in foreign jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The company is currently evaluating this guidance to determine the impact it may have on its carved-out financial statements disclosures.

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07 - Segment Reporting (ASC 280): Improvements to Reportable Segment Disclosures, which enables investors to better understand an entity's overall performance and assess potential future cash flows through improved reportable segment disclosure requirements. The amendments enhance disclosures about significant segment expenses, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023. The Company adopted ASU No. 2023-07 on December 31, 2024. The adoption of the standard did not result in any significant disclosure changes in the Notes to the carved-out Financial Statements.

The FASB and other entities issued new or modifications to, or interpretations of, existing accounting guidance during 2024. Management has carefully considered the new pronouncements that altered generally accepted accounting principles and does not believe that any other new or modified principles will have a material impact on the Company's reported financial position or operations in the near term.

**NOTE 3: DUE FROM PARENT**

As of December 31, 2024 and 2023, the Company had a balance of $314,130 and $284,002, respectively, due from its Parent Company. This balance primarily represents revenues earned by the Company for which cash was collected by the Parent Company. These intercompany amounts are not subject to interest and have no stated repayment terms.

**NOTE 4: RIGHT OF USE ASSETS AND LEASES**

The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets ("ROU"), operating lease liabilities, and operating lease liabilities, non-current. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As substantially all of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. Incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any prepaid lease payments made and initial direct costs incurred and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease, which is recognized when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

During the year, the Company entered into related party operating leases with Land Resources & Royalties (LRR) for real estate and facilities. The Company has three related party operating leases between the Company and LRR that were entered into in January and April 2024, each with a term of 5 years and the option to automatically extend the related party operating leases for an additional year. These related party operating leases are located in Hazard, KY, Marion, IN and Tract LRR-102.101 lying on the waters of the West Fork of the White River and have a monthly rent of $263, $20,058 and $20,000, respectively. The related party operating lease located in Marion, IN is subject to escalating rent payments of 2.5% per year. The first nine months of rent for the three related party operating leases was deferred per the lease agreements and is due on the thirteenth month or January 1, 2025. As of the filing date of the Form 10, the deferred rent remains payable.

The operating lease expense included on the Company's 2024 statement of operations, in general administrative was $373,420.

Other information related to leases is as follows:

---

| | |
|:---|:---|
|  | **As of** <br> **December 31,** |
| **Operating leases:** | **2024** |
| Weighted-average remaining lease term: |  |
| Operating leases (in years) | 4.01 |
| Weighted-average discount rate: |  |
| Operating leases | 9.00% |

---

The future minimum lease payments required under leases for the year ended December 31, 2024 are as follows:

---

| | |
|:---|:---|
| <br>**Fiscal Year** | **Operating**<br>**Leases** |
| 2025 | $853547 |
| 2026 | 496037 |
| 2027 | 502359 |
| 2028 | 508839 |
| Total | 2360783 |
| Less imputed interest | (330338) |
| Present value of lease liabilities | $2030445 |

---

**NOTE 5: ACCRUED EXPENSES**

As of December 31, 2024, the accrued expense balance consists of accrued labor of $129,049, professional fees of $126,227 and accrued rent of $18,151.

As of December 31, 2023, the accrued expense balance consists of accrued labor of $97,345 and accrued rent of $18,151.

**NOTE 6: EQUITY**

<u>Member Equity</u>

As of December 31, 2024 and 2023, the Company had one member who owned 100% of outstanding membership interests.

**NOTE 7: RELATED PARTY TRANSACTIONS**

In January 2024, the Company entered into three separate commercial lease agreements with Land Resources & Royalties, LLC ("LRR"), which is owned by members of the Company's management, to rent office space and property located in Hazard, KY, Marion, IN and Fisher, IN. Refer to Note 4 for further information related to the related party operating leases.

**NOTE 8: SUBSEQUENT EVENTS**

None.

**Electrified Materials Corporation** 

**Condensed Carved-Out Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **September 30,**  | **December 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $- | $1699 |
| &nbsp;&nbsp;&nbsp; Due from parent  | 318825 | 314130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets  | 318825 | 315829 |
| &nbsp;&nbsp;&nbsp; Operating - right-of-use assets, net - related party | 1392124 | 1657026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | 1710949 | 1972855 |
| **Liabilities And Deficit** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Accrued expenses | $340647 | $273429 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, current - related party | 1114440 | 714456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities  | 1455087 | 987885 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, non-current - related party | 1023732 | 1315989 |
| Total liabilities | 2478819 | 2303874 |
| Deficit: |  |  |
| &nbsp;&nbsp;&nbsp; Parent company investment | (767870) | (331019) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deficit | (767870) | (331019) |
| Total liabilities and deficit | $1710949 | $1972855 |

---

The accompanying footnotes are an integral part of the unaudited carved-out financial statements.

**Electrified Materials Corporation** 

**Unaudited Condensed Carved-Out Statement of Operations**

---

| | | |
|:---|:---|:---|
|  | **For the nine months ended September 30,**  | **For the nine months ended September 30,**  |
|  | **2025** | **2024** |
|  |  | **Restated** |
| **Revenue** |  |  |
| Metal recovery and sales | $2996 | $13078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 2996 | 13078 |
| **Cost of Sales** |  |  |
| Cost of sales | 14439 | 23560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cost of sales | 14439 | 23560 |
| Gross (loss) profit | $(11443) | $(10482) |
| **Operating expenses** |  |  |
| General and administrative expenses | 425408 | 336209 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses  | $425408 | $336209 |
| Net loss | $(436851) | $(346691) |

---

The accompanying footnotes are an integral part of the unaudited carved-out financial statements.

**Electrified Materials Corporation** 

**Unaudited Condensed Carved-Out Statements of Parent's Equity (Deficit)**

---

| | |
|:---|:---|
|  | **Total**<br>**Equity** |
| Parent's net investment as of December 31, 2023 | $168506 |
| Net loss | (346691) |
| Parent's net investment as of September 30, 2024 **(Restated)**  | $(178185) |

---

---

| | |
|:---|:---|
|  | **Total**<br>**Equity** |
| Parent's net investment as of December 31, 2024 | $(331019) |
| Net loss | (436851) |
| Parent's net investment as of September 30, 2025 | $(767870) |

---

The accompanying footnotes are an integral part of the unaudited carved-out financial statements.

**Electrified Materials Corporation** 

**Unaudited Condensed Carved-Out Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended** <br> **September 30,** | **For the Nine Months Ended** <br> **September 30,** |
|  | **2025** | **2024** |
|  | | **Restated** |
|  | **(unaudited)** | **(unaudited)** |
| **Cash Flows from Operating activities:** |  |  |
| Net loss | $(436851) | $(346691) |
| **Change in operating assets and liabilities:** |  |  |
| Due from parent | (4695) | (13079) |
| Accrued expenses  | 67218 | 110561 |
| Operating lease assets and liabilities, net – related party | 372629 | 249209 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash used in operating activities | (1699) | - |
| Decrease in cash | (1699) |  |
| Cash and cash equivalents, beginning of period | 1699 | - |
| Cash and cash equivalents, end of period | $- | $- |
| SUPPLEMENTAL CASH FLOW INFORMATION |  |  |
| Acquisition of assets through operating leases - related party | $- | $1912438 |

---

The accompanying footnotes are an integral part of the unaudited carved-out financial statements.

**NOTE 1: DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION**

<u>Description of Business</u>

Electrified Materials Corporation (the "Company," "EMC," "we," "us," or "our") is an Indiana Corporation that was formed on June 29, 2020. The Company is a wholly-owned subsidiary of American Resources Corporation ("American Resources", or "AREC", or "Parent").

We are a recycling company focused on recycling metals and alloys from prior coal mining and industrial sites so that it can be upcycled for a new purpose. We also focus on aggregation and disassembly of end of life magnet material.

EMC will aggregate end-of-life products utilizing a nationwide footprint and sourcing locations. Processing of the selected materials will be concentrated for ReElement Technologies Corporation, a subsidiary of AREC operating in Indiana, for further refinement.

<u>Basis of Presentation</u>

The accompanying carved-out financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

**NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*<u>Revenue Recognition</u>*

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. The primary source of revenue is from the sale of scrap metal generated by the parent company's mining operations. Scrap metal is collected by the Company and sold on a regular basis.

Revenue is recognized when control of the scrap metal transfers to the buyer, typically at the point of sale. Since sales occur regularly and payment is received promptly, no formal contracts or extended payment terms are in place. Revenue is measured based on the agreed sale price at the time of each transaction.

*<u>Allowance for Credit Losses</u>*

The Company accounts for expected credit losses on financial assets measured at amortized cost in accordance with Accounting Standards Codification (ASC) 326, *Financial Instruments – Credit Losses*. As of September 30, 2025 and December 31, 2024, the Company's only receivable was the Due from Parent balance.

Management has evaluated the collectability of this receivable and concluded that no allowance for credit losses is required at either balance sheet date. The application of ASC 326 was effective for the balance sheets dated September 30, 2025 and December 31, 2024, and its impact is immaterial to the carved-out financial statements.

*<u>Going Concern</u>*

As of September 30, 2025 and December 31, 2024, the Company had minimal cash on hand and a due from parent balance of $318,825 and $314,130, respectively. The Company had a net loss from operations for the nine months ended September 30, 2025 of $436,851. These conditions raise substantial doubt about the Company's ability to continue as a going concern for at least one year from the date of the issuance of these financial statements. We plan to generate profits by selling preprocessed materials to ReElement Technologies Corporation for further refinement.

However, we will need to raise the funds required through loans from our sole member, sale of our securities or through loans from third parties. We do not have any commitments or arrangements from any person to provide us with any additional capital. If additional financing is not available when needed, we may need to cease operations. We may not be successful in raising the capital needed to expand or develop operations. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. The accompanying financial statements have been prepared assuming the Company will continue as a going concern; no adjustments to the financial statements have been made to account for this uncertainty.

<u>Carve-Out Assumptions and Allocations</u>

The historical business activities of the Company have been transacted in other parent company subsidiaries, primarily the parent company's mining business. The Company's business activities, transacted and accounted for in the parent company's other subsidiaries have been presented in the accompanying historical carved-out financial statements of Electrified Materials Corporation to reflect the historical operations of the parent company's collective subsidiaries that will be included in SpinCo on a post transaction basis. In addition, the carved-out financial statements include allocations of administrative expenses from the parent company that reflect those administrative costs expected to be incurred by SpinCo. The allocations are based on amounts applicable to the Company's operations relative to amounts applicable to the parent's company or its other subsidiaries. The accompanying historical carved-out balance sheets of the Company reflect receivables from parent company subsidiaries for revenues of those business activities earned by those other subsidiaries that will be contributed to SpinCo and cash settled post transaction. Accrued expenses included in the carved-out balance sheets reflect the payable by the Company to the parent company for direct Company expenses paid by other parent company's subsidiaries and allocated expenses that SpinCo will assume in the transaction and will also cash settle post transaction.

The Company's financial position, results of operations, and cash flows may not be indicative of our results had we been a separate standalone entity during the periods presented, nor are the results stated herein indicative of what our financial position, results of operations, and cash flows may be in the future. Actual costs that would have been incurred if the Company had operated as a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas.

<u>Use of Estimates</u>

Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities. Actual results could vary from those estimates.

*<u>Related Party Policies</u>*

In accordance with FASB ASC 850, related parties are defined as either an executive, director or nominee, greater than 10% beneficial owner, or an immediate family member of any of the proceedings. Transactions with related parties are reviewed and approved by the directors of the Company, as per internal policies.

<u>Organizational Costs</u>

In accordance with FASB ASC 720 – *Other Expense*, organizational costs, including accounting fees, legal fees, and costs of incorporation, are expensed as incurred.

<u>Collaboration Arrangements</u>

The Company analyzes its collaboration arrangements to assess whether they are within the scope of FASB ASC 808, Collaborative Arrangements, ("ASC 808"), to determine whether such arrangements involve joint operating activities performed by the parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in responsibilities of all parties in the arrangement. ASC 808 does not provide guidance on the recognition of consideration exchanged or accounting for the obligations that may arise between parties. The Company concluded that ASC Topic 730, Research and Development, should be applied by analogy to payments between parties during the development activities of its collaboration arrangements such as with ReElement Technologies Corp.

<u>Leases</u>

The Company reviews all arrangements for potential leases, and at inception, determines whether a lease is an operating or finance lease. Lease assets and liabilities, which generally represent the present value of future minimum lease payments over the term of the lease, are recognized as of the commencement date. Leases with an initial lease term of twelve months or less are classified as short-term leases and are not recognized in the balance sheets unless the lease contains a purchase option that is reasonably certain to be exercised.

Lease term, discount rate, variable lease costs and future minimum lease payment determinations require the use of judgment and are based on the facts and circumstances related to the specific lease. Lease terms are generally based on their initial non-cancelable terms, unless there is a renewal option that is reasonably certain to be exercised. Various factors, including economic incentives, intent, past history and business needs are considered to determine if a renewal option is reasonably certain to be exercised. The implicit rate in a lease agreement is used when it can be determined to value the lease obligation. Otherwise, the Company's incremental borrowing rate, which is based on information available as of the lease commencement date, including applicable lease terms and the current economic environment, is used to determine the value of the lease obligation.

<u>Income Taxes</u>

Historically, the Company's operations have been included in the AREC federal consolidated tax return and certain state returns. For the purposes of these financial statements, our income tax provisions were computed as if we filed separate tax returns (i.e., as if we had not consolidated our tax return with AREC).

The Company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will not be realized. A 100 % valuation allowance has been established on deferred tax assets at both September 30, 2025 and December 31, 2024 due to the uncertainty of our ability to realize future taxable income.

The Company assesses its income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company's policy is to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the financial statements.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.

The Company accounts for income taxes with the recognition of estimated income taxes payable or refundable on income tax returns for the current period and for the estimated future tax effect attributable to temporary differences and carryforwards. Measurement of deferred income items is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized in the immediate future.

The Company expects to file U.S. federal and various state income tax returns. The Company was formed in 2020 and files as part of its parent's corporate tax returns. All tax periods since inception remain open to examination by the taxing jurisdictions to which the Company is subject.

**Recent Accounting Pronouncements**

The FASB and other entities issued new or modifications to, or interpretations of, existing accounting guidance during 2025. Management has carefully considered the new pronouncements that altered generally accepted accounting principles and does not believe that any other new or modified principles will have a material impact on the Company's reported financial position or operations in the near term.

**NOTE 3: RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS**

The Company identified certain errors in the previously issued unaudited financial statements for the nine months ended September 30, 2024, which resulted in the following adjustments which have been recognized in the accompanying restated unaudited interim financial statements as of and for the nine months ended September 30, 2025:

· Revenue in the statement of operations for the nine months ended September 30, 2024 was overstated by $31,195 due to amounts that did not meet the criteria for revenue recognition.

· General and administrative expenses in the statement of operations for the nine months ended September 30, 2024 were overstated by $125,001 due to the reversal of expenses that had not been incurred during the period.

· Due from parent on the balance sheet as of September 30, 2024 was overstated by $6,194, primarily as a result of the revenue adjustment, partially offset by changes in general and administrative expenses.

· Accrued expenses on the balance sheet as of September 30, 2024 were overstated by $100,000 due to the reversal of expenses that had not been incurred during the period.

**NOTE 4: DUE TO/FROM PARENT**

As of September 30, 2025 and December 31, 2024, the Company had a balance of $318,825 and $314,130 due from its Parent Company, respectively. This balance primarily represents revenues earned by the Company for which cash was collected by the Parent Company. These intercompany amounts are not subject to interest and have no stated repayment terms.

**NOTE 5: RIGHT OF USE ASSETS AND LEASES**

The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets ("ROU"), operating lease liabilities, and operating lease liabilities, non-current.. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As substantially all of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. Incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any prepaid lease payments made and initial direct costs incurred and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease, which is recognized when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

During the year, the Company entered into related party operating leases with Land Resources & Royalties (LRR) for real estate and facilities. The Company has three related party operating leases between the Company and LRR that were entered into in January 2024, each with a term of 5 years and the option to automatically extend the related party operating leases for an additional year. These related party operating leases are located in Hazard, KY, Marion, IN and Tract LRR-102.101 lying on the waters of the West Fork of the White River and have a monthly rent of $263, $20,559 and $20,000, respectively. The related party operating lease located in Marion, IN is subject to escalating rent payments of 2.5% per year. The first nine months of rent for the three related party operating leases is deferred per the lease agreements and was due on the thirteenth month or January 1, 2025. As of the filing date of this Form 10, the deferred rent remains payable.

The operating lease expense included on the Company's statements of operations for the nine months ended September 30, 2025 and 2024, in general administrative was $372,630 and $249,209 respectively.

Other information related to leases is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** <br> **September 30,** | **As of** <br> **December 31,** |
| **Operating leases:** | **2025** | **2024** |
| Weighted-average remaining lease term: |  |  |
| Operating leases (in years) | 3.26 | 4.01 |
| Weighted-average discount rate: |  |  |
| Operating leases | 9.00% | 9.00% |

---

The future minimum lease payments required under leases as of September 30, 2025 are as follows:

---

| | |
|:---|:---|
| <br>**Fiscal Year** | **Operating**<br>**Leases** |
| Remainder of 2025 | $853547 |
| 2026 | 496037 |
| 2027 | 502359 |
| 2028 | 508839 |
| Total | 2360783 |
| Less imputed interest | (222611) |
| Present value of lease liabilities | $2138172 |

---

**NOTE 6: ACCRUED EXPENSES**

As of September 30, 2025, the accrued expense balance consists of accrued labor of $143,488, professional fees of $179,008 and accrued rent of $18,151.

As of December 31, 2024, the accrued expense balance consists of accrued labor of $129,049, professional fees of $126,227 and accrued rent of $18,151.

**NOTE 7: EQUITY**

<u>Member Equity</u>

As of September 30, 2025 and December 31, 2024, the Company had one member who owned 100% of outstanding membership interests.

**NOTE 8: RELATED PARTY TRANSACTIONS**

In January 2024, the Company entered into three separate commercial lease agreements with Land Resources & Royalties, LLC ("LRR"), which is owned by members of the Company's management, to rent office space and property located in Hazard, KY, Marion, IN and Fisher, IN. Refer to Note 4 for further information related to the related party operating leases.

**NOTE 9: COMMITMENT AND CONTINGENGIES**

On May 9, 2025, the company executed a grant agreement with the Indiana Department of Environmental Management through the Recycling Promotion and Assistance Fund. The grant totaled $911,519 and is subject to various provisions including a matching investment provision. Funds disbursed under the grant are only to be made on a reimbursement basis (after funds expended) with an effective date beginning on June 1, 2025.

As of the report date, no funds have been advanced under the grant.

**NOTE 10: SUBSEQUENT EVENTS**

None.